May 10, 2024
Toru Noda
President and Representative Director, CEO
Solasto Corporation(Securities Code: 6197 TSE PRIME)

Summary of Evaluation of Effectiveness of Board of Directors
Solasto Corporation (TSE: 6197, “Solasto”) has evaluated the effectiveness of its Board ofDirectors. The following is a summary of this evaluation.
1. Methods used to evaluate the effectiveness of the Board of Directors
A questionnaire on the effectiveness of the Board of Directors was distributed to andcompleted by all of the Directors and Corporate Auditors. Based on the results of thisquestionnaire, the Corporate Governance Committee (“CG Committee”) and the Board ofDirectors analyzed and verified the effectiveness of the Board of Directors and constructively
discussed issues to be addressed in the future.
(1)

Evaluator:

All of the Directors and Corporate Auditors(10 members)
Web-based questionnaire survey(Anonymous form)
January 20245-point scale and open-ended comment fields(2)

Evaluation method:

(3)
(4)
(5)

Survey period:
Answer method:
Outline of evaluation items:(i) Composition of the Board of Directors(ii) Operation of the Board of Directors(iii) Culture the Board of Directors(iv) Supervision and governance by the Board of Directors(v) Discussion of management strategy/other topics

2. Summary of the evaluation of the effectiveness of the Board of Directors
The Board of Directors confirmed that, in terms of its composition and operations, anadequate system has been established for making important management decisions andsupervising the execution of business operations. In addition, the Board confirmed that active
discussions take place, including discussions with Outside Directors with diverse experienceand expertise.
On the other hand, the following issues to be addressed to further improve the effectivenessof the Board of Directors were commented upon.
Further enhance the effectiveness of the Board of Directors' monitoring of risks related
to the company's business activities
Continuous training of the next generation of management candidates
This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document, the Japanese original shall prevail

13. Improvements based on the evaluation of the effectiveness of the Board of Directors
Based on the results of the evaluation, the CG Committee and the Board of Directorsdiscussed the ideal corporate governance of the Group and confirmed that the following
initiatives should be promoted.
-

Further strengthen reporting to the Board of Directors regarding the execution ofbusiness (standardize and increase the depth of the content of reports)
Strengthen the process for developing the next generation of management candidates,
such as general managers, and oversite over the development process.
Further improve the process for selecting corporate officers (sharing of detailed
information about the candidates)

By promoting these initiatives along with other measures, Solasto will continue to improvethe effectiveness of the Board of Directors and strengthen corporate governance.

4. References: Improvement measures implemented based on the results of the previousevaluation
Due to the results of the previous evaluation (January 2023) and subsequent discussions,the need to strengthen the risk management system, deepen discussions of long-term issues
and cultivate the next generation of management personnel were identified.
Based on the results of this assessment, Solasto has taken the following actions.
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The Risk & Compliance Committee meets quarterly to increase the number ofopportunities to report incidents and confirm the implementation status of corrective
measures and to report them to the Board of Directors. In addition, in view of theimportance of each incident, the Risk & Compliance Committee leads the crossfunctional working teams that it establishes for each incident, and it has established asystem to enable various team members to discuss issues ranging from the investigation
into the cause of the incident to measures to prevent its recurrence.
Through the discussion of on medium- to long-term business strategies during Board ofDirectors meetings, we have restructured our business promotion system to enhance
corporate value.
Outside Directors interview corporate officers on an ongoing basis to develop the next
generation of management personnel and properly evaluate them as successors to thecurrent generation of management personnel.

Investor Relations Office
ir@solasto.co.jp

This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document, the Japanese original shall prevail2