Information Disclosure in accordance to the Corporate Governance CodeIndependence Standards for Outside Executives[Principle 4.9 Independence Standards and Qualification for Independent Directors]
Boards should establish and disclose independence standards aimed at securing effective
independence of independent directors, taking into consideration the independence criteria set bysecurities exchanges. The board should endeavor to select independent director candidates who areexpected to contribute to frank, active and constructive discussions at board meetings.
――――――――――――――――――――――――――――――――――――――――The Company appoints outside Directors who meet not only the requirements prescribed by theCompanies Act but also the “Independence Standards for Outside Executives” prescribed by theNomination Advisory Committee in principle.
<Independence Standards for Outside Executives>
The Company judges outside Directors, outside Audit & Supervisory Board Members (hereinaftercollectively referred to as “outside Executives”), or candidates for outside Executives as independent
if they do not fall under any of the following items as a result of the investigation conducted by theCompany as far as reasonably possible:
i. Executors of operations1 of the Company and its affiliates (hereinafter collectively referred to as
the “Company Group”);
ii. Those for whom the Company Group is a major business partner2 or their executors ofoperations;iii. Major business partners of the Company Group3 or their executors of operations;iv. Major shareholders of the Company (Those who own directly or indirectly 10% or more of thetotal voting rights) or their executors of operations;v. Those 10% or more of whose total voting rights are owned directly or indirectly by theCompany Group or their executors of operations;vi. Those who belong to the auditing firm that is the financial auditor of the Company Group;vii. Attorneys, certified public accountants, licensed tax accountants, consultants and the like who
receive a large amount4 of monetary or other property benefits other than executive
remunerations from the Company Group;viii. Those who belong to corporations, cooperatives, and the like including law firms, auditing firms,
tax accountant corporations, and consulting firms, which receive a large amount4 of monetary orother property benefits from the Company Group;

Information Disclosure in accordance to the Corporate Governance Codeix. Council members or other executors of operations of bodies including corporations andcooperatives which, or persons who receive a large amount4 of donations or assistance from theCompany Group;
x. In cases where Directors for operational execution, or full-time Audit & Supervisory Board
Members concurrently serve as outside Directors or outside Audit & Supervisory Board
Members of other companies, Directors for operational execution, executive officers, executiveDirectors, or managers and other employees of said companies;
xi. Those who have fallen under the definition of the above ii to x in the last three years; orxii. In cases where those who fall under the definition of the above i to x are important persons5,
their spouses or relatives within the second degree of kinship.
(Note)
1.

“Executors of operations” refer to Directors, Executive Officers, Executive Directors, employees who
execute operations, council members, or those equivalent thereto and employees of corporations and otherbodies, as well as those who have belonged to the Company Group in the past even once.

2.

“Those for whom the Company Group is a major business partner” refer to persons who have received
from the Company the payment of 2% or more of their consolidated annual sales in the most recent fiscalyear.

3.

“Major business partners of the Company Group” refer to persons who pay the Company 2% or more ofits consolidated annual sales in the most recent fiscal year, or who loaned the Company 2% or more of its
consolidated total assets at the end of the most recent fiscal year.

4.

“A large amount” refers to, in terms of the average for the past three fiscal years, ¥10 million or more forindividuals, more than 2% of the consolidated sales or total revenues of said bodies for bodies includingcorporations and cooperatives.

5.

“Important persons” refer to Directors (excluding outside Directors), Audit & Supervisory BoardMembers (excluding outside Audit & Supervisory Board Members), Executive Directors and employees
who are senior managers in the position of general managers or higher.