Basic Policy on Corporate Governance
CHAPTER I.

GENERAL PROVISIONS(Purpose)
Article 1.

We have established this basic policy for the purpose of providing a basic approach to and framework forcorporate governance under transparent and fair management system.
(Approach to Corporate Governance)
Article 2.

We shall, based on the corporate philosophy of the Group, vision, values, code of conduct, our commitment

and this basic policy established by the Board of Directors, develop trust with all stakeholders related to the Company
and its subsidiaries (hereinafter, the "Group"), such as shareholders and investors as well as employees, customers,client or supplier companies, creditors and local communities, and also develop our corporate governance.
2.

Among the governance systems under the Companies Act, we have chosen to be a Company with a Nominating
Committee, etc., and by separating supervision and execution, will strengthen the Board of Directors’ management
supervisory functions, improve the transparency and fairness of management and accelerate business execution anddecision making.

3.

We acknowledge the enhancement of corporate governance to be one of the most important management issues,and continuously make efforts to improve our corporate governance.

CHAPTER II.

BASIC APPROACH TO MANAGEMENT OF THE GROUP(Addressing Sustainability Issues)
Article 3.

We recognize that addressing sustainability issues is essential in order to improve the corporate value of

the Group from a medium- to long-term viewpoint. We aim to simultaneously ensure our contribution to the creationof a sustainable society and the improvement of corporate value from a medium- to long-term viewpoint by actively
working to resolve social issues through means such as promoting the recycling of waste and resources and energy
conservation in our global business activities.
2.

The Group shall address sustainability issues in an appropriate manner based on Sustainability Policy determined
separately.

(Management Policy)
Article 4.

We shall establish and disclose the Group's medium- to long-term management policy, which includes

management goals and the strategy to achieve such goals.
(Group Governance)
Article 5.

As the core company of the Group, we will establish systems to appropriately manage and control theGroup (hereinafter, "Group Governance"), promote business activities based on the medium- to long-term
management policy and improve the corporate value of the entire Group.

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2.

As an integrated business entity that supplies basic materials and components essential to the world and is involved
in recycling and renewable energy businesses, the Group will pursue an appropriate business portfolio andmanagement structure that is commensurate with its Group Governance capabilities.

(Capital Policy)
Article 6.
(1)

The Company's basic policy on capital policy shall be as follows:
Maintain and improve capital efficiency over the medium- to long-term by building a business portfolio thatgenerates returns exceeding capital costs;(2)

Maintain financial soundness by securing appropriate funds for growth investments such as research anddevelopment activities, capital investment, and mergers and acquisitions and structuring a sound balance
sheet; and(3)

Provide appropriate and sustainable returns to shareholders from a medium- to long-term perspective.
Returns to shareholders will be provided through a combination of stable dividends, timely share buybacks,
and increased dividends(Strategic Share Holdings)
Article 7.

The Company's basic policy on shares acquired for other than pure investment (hereinafter, "Shares in theForm of Strategic Share Holdings") shall be as follows:(1)

The Company shall not acquire or hold Shares in the Form of Strategic Share Holdings unless doing so isnecessary for the purpose of its business strategy.

(2)

With regard to the Shares in the Form of Strategic Share Holdings, the appropriateness of such holdings shallbe specifically reviewed and examined at a meeting of the Board of Directors on an annual basis. As a resultof such reviews and examinations, the Company will reduce any Shares in the Form of Strategic Share
Holdings if it is not deemed to be necessary to hold such shares.

(3)

In exercising the voting rights attached to any Shares in the Form of Strategic Share Holdings, the Company
will examine relevant proposals and decide whether to vote for or against it from the perspective of improving
the corporate value of the Company and issuing company over the medium- to long-term viewpoint.

(Collaboration with Stakeholders)
Article 8.

The Company recognizes that not only discussions with shareholders and investors, but also appropriate

collaboration with stakeholders, such as employees, customers, client or supplier companies, creditors, and local
communities, is essential in order to improve the corporate value of the Group from a medium- to long-term
viewpoint, and shall appropriately collaborate with stakeholders through timely and appropriate disclosure ofcorporate information and continuous communication.
(Corporate Information)
Article 9.

The Company shall disclose its corporate information in a timely and appropriate manner in accordancewith the Companies Act, the Financial Instruments and Exchange Act and other applicable laws and regulations aswell as the rules established by the relevant financial instruments exchange, etc. In addition, the Company shall givedue consideration to other voluntary disclosures so that such disclosures will be conducted appropriately.

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2.

The Company shall establish regulations for the management of insider information, and appropriately manage
insider information. In addition, the Company shall prevent insider trading in advance by calling the attention of theGroup's employees to insider trading on a periodic basis and also, for example, by providing in-house education asnecessary.

(Promoting Diversity, Equity & Inclusion)
Article 10. Based on the belief that employees are the source of new values and the Group's sustainable growth, we
aim to maximize organizational performance by creating workplace environments in which team members withdiversity in every respect, including race, religion, gender, sexual orientation and gender identity, age, disability,
nationality, national origin, social origin, and professional background, can coexist, and recognize one another in an
equitable manner, and actively demonstrate their individual abilities at their very best.
(Internal Reporting System)
Article 11. The Company shall establish reporting rules (including matters on the protection of confidentiality andprohibition of the disadvantageous treatment of informants) to be followed by employees, etc. of the Group in theevent of an inappropriate case such as violation of laws, regulations, or internal rules, as well as endeavor to develop
appropriate systems for internal reporting by, for example, establishing an internal reporting desk.

CHAPTER III. RELATIONSHIP WITH SHAREHOLDERS AND INVESTORS(Communication with Shareholders and Investors)
Article 12. The Company shall engage in constructive communication with shareholders and investors as follows:(1)

The Chief Executive Officer and the Chief Financial Officer shall supervise communication withshareholders and investors in general and endeavor to realize constructive communication;(2)

The members of management, as well as the Corporate Communications Dept. and other internal relevant
departments, shall cooperate to deal with matters concerning communication with shareholders and investors,
based on appointment by the Chief Executive Officer and the Chief Financial Officer.

(3)

With the aim of enhancing communication with shareholders and investors, the Company shall hold a variety
of briefings on its management strategy, business content, products, regional strategies, and performance,
etc., in addition to the General Meeting of Shareholders and individual discussions. Also, the Company shallcollect and analyze opinions, etc. of shareholders and investors obtained through communication, andprovide feedback to the Board of Directors and the members of management.

(Ensuring Shareholders' Rights and Equality)
Article 13.

We shall endeavor to ensure equality among shareholders and create an environment in which allshareholders, including minority and foreign shareholders, can exercise their rights appropriately.
(General Meeting of Shareholders)
Article 14.

We recognize that the General Meeting of Shareholders is a forum for communication between the3Company and shareholders, and shall endeavor to create an appropriate environment for the exercise of rights at
General Meetings of Shareholders.

CHAPTER IV.

BOARD OF DIRECTORS(Functions and Duties of the Board of Directors)
Article 15.
(1)Functions and duties of the Board of Directors shall be as follows:

Upon delegation by shareholders, the Board of Directors shall offer the direction of its management and makean effort to enhance the Group's medium- to long-term corporate value by, for example, engaging infreewheeling and constructive discussion on management policies and management reforms;(2)

The Board of Directors shall determine matters that may have a serious impact on the management, such as
management policies and management reforms in accordance with the provisions of laws, the Articles ofIncorporation and the Board of Directors Rules;(3)

The Board of Directors shall accelerate decision-making in business execution by delegating the authority
over business execution to an appropriate extent to Executive Officers in accordance with the provisions of
the Board of Directors Rules, etc. so that Executive Officers may assume the responsibility and authority tomake decisions and execute business in response to changes in the business environment; and(4)

The state of Group Governance and the progress of the execution of duties including the progress of the
management strategy shall be reported by Executive Officers to and supervised by the Board of Directors on
a periodic basis.

(Composition of the Board of Directors)
Article 16. The Board of Directors shall consist of an appropriate number of Directors (but not more than twelve (12)Directors, as provided for in the Articles of Incorporation) to enable the Board of Directors to fulfill its functions
most effectively and efficiently. In addition, a majority of the Directors on the Board of Directors shall be
Independent Outside Directors.
2.

The Board of Directors shall consist of diverse Directors with a high degree of expertise and insight into
management, finance and accounting, sales and marketing, production engineering, research and development, legal
affairs, internationality and other aspects to ensure a well-balanced combination of knowledge, experience and ability
necessary to fulfill their functions and duties effectively as a whole.

(Analysis and Evaluation of the Effectiveness of the Board of Directors)
Article 17. The Board of Directors shall analyze and evaluate the effectiveness of the Board of Directors based on
the evaluation by each Director on an annual basis, and disclose a summary of the results, and implement measures
to improve the effectiveness.
(Chairperson of Board of Directors Meetings)
Article 18. The Company shall appoint the Chairperson of Board of Directors Meetings by resolution of the Boardof Directors. The Chairperson of Board of Directors Meetings shall not concurrently serve as an Executive Officer.

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The Chairperson of Board of Directors Meetings shall select the agenda items of the Board of Directors Meetings,
and endeavor to ensure high-quality deliberations, effective and efficient operation through fostering a spirit ofrespect for freewheeling and constructive discussion and opinion exchange, including the raising of questions by
Outside Directors. In addition, the Chairperson takes the initiative in analyzing, evaluating and improving theeffectiveness of the Board of Directors in order to enhance the effectiveness of the Board of Directors.
(Chairman)
Article 19. The Company may appoint one (1) Chairman by resolution of the Board of Directors.

CHAPTER V.

DIRECTORS AND EXECUTIVE OFFICERS(Functions and Duties of Directors)
Article 20. Directors shall be aware of their fiduciary duties to shareholders and endeavor to improve the Group’s
corporate value from a medium- to long-term viewpoint while ensuring constructive communication withshareholders and investors and other appropriate collaboration with stakeholders.
(Policy for Nomination of Candidates for Director and Dismissal of Directors)
Article 21. The policy for the nomination of candidates for Director and Dismissal of Directors shall be as specified
in Exhibit 1.
(Concurrent Post of Directors)
Article 22.

In order to secure the time necessary to properly fulfill their functions and duties, Directors shall notconcurrently serve as directors, corporate auditors, executive officers or representatives of more than three (3) listedcompanies or legal entities, etc. other than the Company.
(Functions of Outside Directors)
Article 23. Outside Directors mean the Outside Directors defined in Article 2, item (xv) of the Companies Act.
2.

Outside Directors shall play a role in supervising the appropriateness of the execution of duties by Directors andExecutive Officers from an objective standpoint, and enhancing the management supervisory functions of the Boardof Directors through providing a diverse range of values regarding the management of the Company based on expert
knowledge as well as through experience that differs from that of officers who advanced internally.

(Standards for Independence of Independent Outside Directors)
Article 24. The standards for the independence of Independent Outside Directors shall be as specified in Exhibit 2.
Such standards for independence shall not preclude a person who does not satisfy them from being appointed as an
Outside Director.
2.

Among Outside Directors, those who fulfill the standards for independence shall be notified to Tokyo Stock
Exchange, Inc., as Independent Outside Directors.

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(Meetings of Outside Directors)
Article 25. By exchanging information and sharing awareness on a wide range of matters not limited to the agenda
items of the Board of Directors meetings, Outside Directors may convene and hold meetings consisting solely of
Outside Directors as necessary for the purpose of fulfilling their management supervisory functions appropriately.
2.

When holding a meeting as prescribed in the preceding paragraph, Outside Directors may request that officers who
advanced internally, etc. provide necessary information and explanations.

(Support System for Directors)
Article 26. Directors shall collect information to fulfill their functions and duties effectively.
2.

The Company shall develop the following systems to ensure that the collection of information by Directors isfacilitated and that the provision of necessary information to Directors is implemented properly:(1)

Establish a secretariat that supports activities necessary for supervision over business execution and activities
necessary for the appropriate operation of the Board of Directors, the Nomination Committee, the Audit
Committee, the Remuneration Committee, the Sustainability Committee and Outside Directors' informal
meetings, etc. under the instructions of the Board of Directors;(2)

Develop a system that enables each Director to access, to a reasonable extent, materials and data related toimportant committees pertaining to management, such as the Strategic Management Committee, in order toappropriately supervise business execution;(3)

Develop a system in which Executive Officers directly report the progress of the execution of their duties tothe Board of Directors on a periodic basis or in a timely manner at the request of Directors; and(4)

Develop a system that enables the Board of Directors to obtain the assistance of outside experts, such as
lawyers and certified public accountants, as necessary, and bear the necessary costs and expenses.

(Policy on Training for Directors)
Article 27. We will provide Directors with opportunities for training by outside experts, etc. as necessary so that they
can acquire the knowledge to carry out their functions and duties (including legal responsibilities) at the time of andafter their assumption of office. We will provide Outside Directors with the opportunity to obtain a deeper
understanding of the Group’s business, finance, organization, etc. Any costs and expenses for the foregoing shall beborne by the Company.
(Functions and Duties of Executive Officers)
Article 28. Executive Officers shall execute business in accordance with the prescribed segregation of duties, basedon the delegation of authority from the Board of Directors.
(Policy on Election and Dismissal of Executive Officers)
Article 29. The policy on the election and dismissal of Executive Officers shall be as specified in Exhibit 3.
(Succession Planning for the Chief Executive Officer)
Article 30. The Board of Directors shall oversee the systematic development of successor candidates for the Chief

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Executive Officer (hereinafter, "Successor Candidates") in order to develop the next generation of human resources
who will be responsible for management. In addition to this, the Nomination Committee deliberates on candidates
for the next Chief Executive Officer in response to the inquiries from the Board of Directors and reports back to theBoard.
2.

The Nomination Committee shall deliberate on Successor Candidates and their succession planning and oversee
the development of Successor Candidates so that they are developed appropriately.

(Remuneration for Directors and Executive Officers)
Article 31. The policy on determining the remuneration for Directors and Executive Officers shall be as specified in
Exhibit 4.
(Transactions between Related Parties and Conflict-of-Interest Transactions)
Article 32. With respect to competitive transactions between the Company and Directors / Executive Officers andconflict-of-interest transactions between the Company and Directors / Executive Officers, the Company will conductadvance deliberations and make reports on the actual results of approved transactions (if any) at the Board of
Directors Meetings, in accordance with the provisions of laws and internal rules such as the Board of Directors Rules.
Further, any transaction between the Company and any major shareholder over a certain amount shall be deliberated
at the Board of Directors Meeting in advance, in accordance with the provisions of the Board of Directors Rules.

CHAPTER VI.

COMMITTEES(Nomination Committee)
Article 33. The Nomination Committee shall determine the policy for the nomination of candidates for Director andDismissal of Directors, and the content of proposals concerning the election and dismissal of Directors to besubmitted to the General Meeting of Shareholders, etc. In addition, the Nomination Committee shall review andrespond to inquiries from the Board of Directors concerning the election and dismissal, etc. of Executive Officers.
2.

Majority of the Nomination Committee members shall be Independent Outside Directors.

3.

The Chairperson of the Nomination Committee shall be performed by an Independent Outside Director.

(Audit Committee)
Article 34.

The Audit Committee shall audit the legality and validity of the duties performed by Directors andExecutive Officers, via audits either using internal control systems or directly by the Audit Committee member
selected by the Audit Committee.
2.

Majority of the Audit Committee members shall be Independent Outside Directors.

3.

The Chairperson of the Audit Committee shall be performed by an Independent Outside Director.

4.

The Audit Committee shall approve internal audit plans of the department in charge of internal audits, and give
instructions to the department in charge of internal audits when necessary for the performance of duties.

5.

The Audit Committee shall endeavor to improve the effectiveness of audits conducted by the Audit Committee,
internal audits and accounting audits, by closely cooperating with the department in charge of internal audits and the7accounting auditor, such as by regularly receiving reports on audit results.
6.

The Audit Committee shall establish an independent internal reporting desk.

(Remuneration Committee)
Article 35. The Remuneration Committee shall establish policies for determining the individual remuneration for
Directors and Executive Officers, and determine the individual remuneration to be received by Directors andExecutive Officers based on such policies.
2.

Majority of the Remuneration Committee members shall be Independent Outside Directors.

3.

The Chairperson of the Remuneration Committee shall be performed by an Independent Outside Director.

(Sustainability Committee )Article 36. The Sustainability Committee shall consider policies, etc. on sustainability issues as prescribed in Article
3 at request of the Board of Directors for advice, and report its considerations to the Board of Directors.
2.

Majority of the Sustainability Committee members shall be Independent Outside Directors.

3.

The Chairperson of the Sustainability Committee shall be performed by an Independent Outside Director.

CHAPTER VII.

REVISION OR ABOLITION(Revision or Abolition)
Article 37. This policy shall be established, revised or abolished by resolution of the Board of Directors; provided,
however, that the matters to be exclusively determined by the Nomination Committee, the Audit Committee, or theRemuneration Committee shall be subject to the decision of the relevant committee.

[History]
Established on April 1, 2020
Revised on November 1, 2020
Revised on December 1, 2021
Revised on April 1, 2022
Revised on May 13, 2022
Revised on June 28, 2022
Revised on January 1, 2023
Revised on April 1, 2023
Revised on April 1, 2024
Revised on June 26, 2024

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Exhibit 1
Policy for Nomination of Candidates for Director and Dismissal of Directors
Our basic approach to the structure of the Board of Directors, which fulfills the roles of determining the direction ofmanagement and exercising supervision over the progress of business execution, is to ensure that it comprises adiverse range of human resources with different expert knowledge, experience, and other qualities. In particular, theNomination Committee will consider candidates for Outside Directors to ensure that they comprise individuals who
possess experience and knowledge in corporate management (business similar to or different from the Group'sbusiness, etc.) and organizational management, and individuals who possess broad and advanced expert knowledge
and extensive experience in relation to finance and accounting, legal affairs, production engineering, research anddevelopment, sales and marketing, or international relations, etc.
In light of the basic policy on the structure mentioned above, the Nomination Committee will nominate and selectindividuals who satisfy the following requirements as candidates for Directors, regardless of individual attributes
concerning gender, nationality and race, etc.:- An individual of exceptional insight and character;- An individual with a strong sense of ethics and law-abiding spirit; and- An individual who can properly fulfill his or her duties concerning the exercise of supervision over the
management of the Company and the determination of the direction of management.
Further, with respect to candidates for Independent Outside Director, the Nomination Committee will nominate andselect individuals who satisfy the following requirement in addition to the above requirements:- An individual who has no material interest in the Group and who can remain independent (the standards forindependence of Independent Outside Directors shall be as specified in Exhibit 2).
The specific selection of personnel shall be decided after deliberation by the Nomination Committee.
If a Director falls under any of the following events, the Nomination Committee may determine thecontent of the proposal to be presented to the General Meeting of Shareholders for the dismissal ofsuch Director.
- When there is a serious violation of laws and regulations or the Articles of Incorporation by a
Director;- When a Director commits serious misconduct in the performance of his/her duties;- When there is a lack of the judgmental capacity that a Director should have or when the capacity
to reason is notably inadequate; or- When a Director will likely be unable to attend the Board of Directors meetings for a considerably
long period of time.

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Exhibit 2
Standards for Independence of Independent Outside Directors
The Company considers that an Outside Director is not independent if he or she falls under any of the conditions
listed below in addition to meeting the standards for independence established by Tokyo Stock Exchange, Inc.:
1.

An individual who falls under or has fallen under any of items (1) or (2) below, either presently or in the past:(1) An executive or non-executive Director (excluding Outside Director) of the Company; or(2) An executive or non-executive Director of the Company’s subsidiary.

2.

An individual who falls under any of items (1) through (5) below:(1) An executive of a client or supplier company of the Company, whose value of transactions amounted to 2% ormore of the consolidated net sales of the Company or the client or supplier company as of the end of theprevious fiscal year;(2) A person who received, as a professional or consultant, etc., consideration of not less than 10 million yen fromthe Company in the previous fiscal year, excluding his/her consideration as a Director;(3) An executive of an organization that received a donation of not less than 10 million yen from the Company inthe previous fiscal year;(4) A shareholder who directly or indirectly holds at least 10% of the total number of voting rights of theCompany or an executive of such shareholder; or(5) The Company's Accounting Auditor or its employee, etc.

3.

An individual who has fallen under any of items (1) to (5) of 2 above at any time in the past three (3) years:

4.

A close relative of any of the persons listed in item (1) or (2) of 1 above, items (1) to (5) of 2 above, or 3 above(excluding unimportant persons); or

5.

A person whose term of office as the Company's Outside Director is more than eight (8) years.

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Exhibit 3
Policy for Election and Dismissal of Executive Officers
In electing Executive Officers responsible for the execution of business tasks, the Nomination Committee will electindividuals who satisfy the following requirements, regardless of individual attributes concerning gender, nationality
and race, etc.:- An individual of exceptional insight and character;- An individual with a strong sense of ethics and law-abiding spirit; and- An individual well-versed in management and the business activities of the Group.
In relation to the election process, the Chief Executive Officer will first draft a proposal for the election of Executive
Officers after consulting with relevant officers as necessary. The Chief Executive Officer will then submit a proposal
for the election of Executive Officers to the Board of Directors based on the deliberations and responses to inquiries
at the Nomination Committee meeting, and Executive Officers will be elected by resolution of the Board of Directors
based on a comprehensive review of the candidates' personal history, achievements, specialist knowledge, and othercapabilities.
In addition, if any event occurs that makes an Executive Officer highly ineligible in light of these standards, theExecutive Officer shall be dismissed by resolution of the Board of Directors following a review by the Nomination
Committee.

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Exhibit 4
Policy on Determining Remuneration for Directors and Executive Officers
With the aim of creating an attractive remuneration system for outstanding management personnel that will drive
improvements in the Group's corporate value from a medium- to long-term viewpoint and establishing remuneration
governance that will enable the Company to fulfill its accountability to stakeholders including shareholders, theCompany shall establish the following policy on determining remuneration for Directors and Executive Officers(hereinafter, "Officers"):
1.

A system shall be created that provides competitive standards for remuneration compared with companies of abusiness category and size similar to the Group.

2.

The performance of the functions and duties assumed by each Officer and contributions to the improvement of
medium- to long-term corporate value shall be evaluated in a fair and equitable manner, and the evaluation
results shall be reflected in remuneration.

3.

As for the remuneration for Executive Officers, in order to have remuneration function as a sound incentive toimprove the Group's medium- to long-term corporate value, remuneration shall consist of basic remuneration,an annual bonus based on performance evaluations in each fiscal year, etc. and stock-based compensation, which
is a medium- to long-term incentive linked to medium- to long-term performance and corporate value. The
remuneration composition ratio shall be determined appropriately in accordance with one’s job position.
Provided, however, that for the remuneration for Directors (excluding those who concurrently hold the posts of
Director and Executive Officer), in principle, only basic remuneration shall be paid in cash, in light of theirfunction and role of supervising the performance of job duties by the Executive Officers. However, Directors
who chair the Nomination Committee, the Audit Committee, the Remuneration Committee andthe Sustainability Committee shall be paid an allowance in addition to their basic remunerationin consideration of their responsibilities.

4.

An annual bonus shall be determined with the emphasis on the performance in each fiscal year, while
appropriately evaluating the relative results of Total Shareholder Return (TSR)* and the status of each Executive
Officer’s implementation of medium- to long-term management strategies, etc.
Average closing price of the stock on*TSR=each day in March of the current year+

Total amount of dividends per share in
the current fiscal year

Average closing price of the stock on each day in March of the previous year
5.

A medium- to long-term incentive shall be stock-based compensation that enables Executive Officers to shareawareness of profits with shareholders in order to enhance corporate value from a medium- to long-term
viewpoint.

6.

The policies for determining remuneration and the amount of individual remuneration shall be deliberated anddetermined by the Remuneration Committee composed of a majority of Independent Outside Directors.

7.

Necessary information shall be disclosed actively so that stakeholders including shareholders can monitor the
relationship between performance, etc. and remuneration.

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