Inabata & Co., Ltd.
January 28, 2016

Implementation of Evaluation (self-evaluation) for the Board of Directorsand Future Measures
With the aim of increasing corporate value through enhancing the effectiveness and transparency of
the Board of Directors, Inabata & Co., Ltd. (“the Company”) has implemented evaluation measures(self-evaluation) for the Board of Directors.

1. Evaluation methodology
 An outside consultant was appointed and the direction of the self-evaluation measures wasconfirmed in interviews with the President and one outside director.
 The content of questions was determined based on the above. A questionnaire (Note 1) wasdistributed to all directors and corporate auditors and responses were obtained.
 The outside consultant collected and analyzed the responses and made a report to the Boardof Directors of the Company.
 After sufficient verification by the Board of Directors of the content of the outside
consultant’s report, the direction of future measures was decided, as described in 3. below.

2. Regarding the analysis and evaluation
It was confirmed that the size and composition of the Board of Directors (6 internal directors and3 outside directors), which is the key to corporate governance, are generally appropriate. It was
further established that, due to a culture of respecting open discussion and appropriate
management by the chairperson, lively discussions are conducted at meetings of the Board ofDirectors. It was confirmed that the contribution of the outside directors and corporate auditors todiscussions was also significant.
However, with regard to the content of the discussions it was recognized that, because the total
number of topics is large, discussion of medium and long-term themes has been insufficient.
With regard to dialog with the capital markets, the President and the responsible director havebeen actively communicating with investors, but it was recognized that feedback to the Boardof Directors has been insufficient regarding medium and long-term investors’ assessment ofthe Company.

3. Future measures
The following initiatives will be taken to deal with the themes recognized from the results of theabove-mentioned analysis and evaluation.
1(1) Fuller discussion of medium and long-term topics by the Board of Directors
The function and role of the Board of Directors will be reviewed, a system that allows theBoard of Directors to focus on important matters will be put in place, and there will be deeper
discussion of medium and long-term management issues. As a first step, in order to allocate
sufficient time for more strategic discussions such as medium to long-term themes, a revisionof standards for submissions to the Board of Directors has been implemented.
(2) Feedback of dialog with capital markets to the Board of Directors
By providing regular feedback to the Board of Directors regarding the information obtained
from ongoing conversations with medium and long-term investors and shareholders, thecapital markets’ evaluation of the Company will be shared among the Board of Directors.
End(Note 1)
Major topics from the Board of Directors evaluation questionnaire
1.

Operational status of the Board of Directors

2.

Composition of the Board of Directors

3.

Composition and role of committees (Nominating and Remuneration Committee)

4.

Support system for outside directors

5.

Role of and expectations toward corporate auditors

6.

Relationship with investors and shareholders

2