Hirata’s Sustainability

Corporate Governance
The Company aims to make everyone involved in Hirata content and to contribute to society through technology.
To achieve this, we believe that it is essential to build and effectively operate a management system that enablestransparent, fair, prompt, and resolute decision-making. We will thus work to strengthen corporate governanceas one of our most important tasks.

Basic Stance 
As a company that targets the global marketplace, Hirata
has promoted sound and effective management activities
with an emphasis on corporate governance to fulfill its social
responsibilities. Hirata is thus working to enhance its compliance system, continuously strengthen its business competitiveness, and further improve its corporate value.

From the standpoint that a company is an entity thatbears public responsibility, public interest, and social
responsibilities, Hirata believes that the maintenanceof good relationships with all stakeholders will lead to
improved shareholder value over the long term.

Changes to Corporate Governance 

2005

2006

2014

Governance Framework and Summary Approved during the 72nd Ordinary Shareholders’ Meeting held on June 23, 2023, we have shifted from being a Company
with a Board of Corporate Auditors to a Company with an Audit and Supervisory Committee in order to further enhance­corporate governance by strengthening the supervisory function of the Board of Directors and further strengthening themonitoring system through the inclusion of Audit and Supervisory Committee members, who are responsible for auditing theexecution of duties by the directors, as members of the Board of Directors.

Shareholders’ Meeting
Appointment/Non-reappointment

Nomination andCompensation Advisory
Committee

Board of Directors• Appointed one independent outside director• Abolition of executive retirement benefits system

Audit and Supervisory
Committee

Directors

ReportCooperation(Decision-making and Management Oversight)
AuditsAppointment/
Non-reappointment

ReportSupervision

Sustainability Promotion
Committee

ReportManagement Meeting• Appointed two independent outside directors

2017• Stock market listing changed to First Section of Tokyo Stock Exchange• Establishment of independence standards for outside directors• Introduction of stock options• Began evaluations of Board of Directors’ effectiveness

Cooperation

Risk Management
Committee

Executive Officers(Operational Execution)

ReportBusiness Headquarters /Administration Division / Subsidiaries

Internal director

AuditsInternal Audit Department

Outside director (Audit and Supervisory Committee member)

Independent outside director (Audit and Supervisory Committee member)

Body

Financial Auditors

Cooperation

Compliance Committee
2016

Audit and Supervisory
Committee members

Audits, etc.
Representative Director,
President• Introduction of executive officer system• Management Meeting established• Stock listed on JASDAQ Securities Exchange

Appointment/
Non-reappointment

Appointment/Non-reappointment

Board of Directors

Audit and Supervisory Committee

Independent outside director

Woman

Nomination andCompensation Advisory Committee

Chairperson
Chairperson

2018• Establishment of voluntary Nomination and Compensation Advisory Committee
Composition

2019• Shortened director term of office from two years to one year
• Independent outside directors to account for at least one-third of those present in Board of
Directors’ meetings

Ratio of women: 17%
Ratio of independent outside directors: 42%

Ratio of women: 25%

Ratio of women: 33%

Note: In June 2023, we transitioned to a Company with an Audit and Supervisory Committee organizational design.

2021• Policy decisions on executive compensation, etc.
• Introduction of performance-linked compensation system

Operational Status of Board of Directors, Discretionary Committees, and Audit & Supervisory Board (FY2022) 
Body

2022

2023

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Hirata Integrated Report 2023

• Moved to Tokyo Stock Exchange Prime Market• Appointed two female directors• Appointed one female Audit and Supervisory Board member• Skills matrix disclosure• Transitioned to a Company with an Audit and Supervisory Committee organizational design

Record of
Meetings Heldin FY2022

Board of Directors

Audit & Supervisory Board

Nomination and Compensation
Advisory Committee

14 times

18 times

8 times

Average attendance rate: 98.8%(Directors and Audit & Supervisory Board members)

Average attendance rate: 98.6%(Audit & Supervisory Board members)

Average attendance rate: 100%
(All committee members)

Main Themes• Transition to a Company with an Audit andSupervisory Committee organizational design• Establishment of a sustainability promotion systemand formulation of basic policies• Formulation of various policies such as humanrights policies

Main Themes• Audit system after adoption of the
Audit and Supervisory Committee• Status of development and operationof Group governance

Main Themes• Nomination of directors and executive
officers, as well as determination of
remuneration and related policies• Development of succession plan

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61

Hirata’s Sustainability

Corporate GovernanceEvaluations of Effectiveness of Board of Directors’ Meetings (Fiscal 2022) Skills Matrix of the Company’s Directors To improve the effectiveness of its Board of Directors’ meetings, the Company has evaluations of their effectiveness conducted by a third-party organization. Based on the results of the evaluations, the issues are shared and countermeasures are
discussed at Board of Directors’ meetings.

For the Board of Directors to fulfill its responsibilities of realizing sustainable growth and supervising business execution,
the Company has defined the key skills and areas of experience required of its directors—corporate management, industry
knowledge, technology and research and development, global perspective, risk management, finance and accounting, and
ESG expertise—and aims to maintain a Board of Directors that is well balanced in terms of its composition.

Method of
Evaluation
Main Evaluation
Question Items

Anonymous questionnaires and individual interviews for directors and Audit & Supervisory Board members
conducted by a third-party organization (individual interviews held every other year)
Include composition, operation, discussions, and monitoring functions of the Board of Directors; performance of
directors, support system, and training for directors and Audit & Supervisory Board members; voluntary committee
operations

Name

Corporate
Management

Industry
Knowledge

Technology andResearch andDevelopment

GlobalPerspective

RiskManagement

Finance andAccounting

ESG Expertise

Directors (excluding Directors Who Are Audit and Supervisory Committee Members)
Yuichiro Hirata

FY2021 Evaluation Results (Issues)

FY2022 Initiatives

FY2022 Evaluation Results (Issues)

Future Initiatives• Formulation and follow-up of
management strategies for medium- tolong-term improvement of corporate
value and strengthening of monitoring
functions• Formulation of human resource
strategies consistent with medium- tolong-term strategies• Optimization of Board of Directors’
meeting agenda items• Strengthening of Board of Directors’
secretariat functions, etc.

•M onitoring of Medium-Term
Management Plan progress anddiscussions on human resource
strategies to be incorporated into annual
schedule of Board of Directors’ agenda
items•C ontinuous reviews of Board of
Directors’ meeting discussion standards• E arlier provision of more accurate
agenda items and strengthening ofsecretariat functions such as support foroutside directors and training• Formulation and follow-up of
management strategies for medium- tolong-term improvement of corporate
value and strengthening of monitoring
functions• Formulation of human resource
strategies consistent with medium- tolong-term strategies• Strengthening of Board of Directors’
secretariat functions• Establishment of an internal control
system for the entire Group andsufficient supervision of its operation,etc.

• Review of the standards and authority
for deliberation by the Board of
Directors in light of the transition to a
Company with an Audit and Supervisory
Committee organizational design• Use of opportunities for discussion
separate from the Board of Directors• Review of Group governance• Strengthening the secretariat functions
such as through provision of proposals
at an early stage, setting priority themes,
and conducting training

Shojiro Hirata
Shigeru Maeda
Masaru Kozaki
Shigeharu
Nishimura
Hideki Ninomiya
Satoru Ogawa(Outside Director)

Ryoko Ueda
(Outside Director)

In addition to the above, the Company consulted with the Nomination and Remuneration Advisory Committee on theappropriateness of policies and procedures for the appointment and dismissal of directors and executive officers, the reviewof the skills matrix for the transition to a Company with an Audit and Supervisory Committee organizational design, and theideal form of the officer remuneration system. Based on the results of the effectiveness evaluations and analyses of the statusof compliance with the Corporate Governance Code, we will continue to make ongoing efforts to further improve the effectiveness of the Board of Directors in the years to come.

Committee Chair: Yuichiro Hirata (representative director, president)
Committee members: Satoru Ogawa (independent outside director),
Ryoko Ueda (independent outside director)

Appointment/Non-reappointment of Directors
To ensure transparency and fairness in the nomination of both
director candidates and executive officers, the Nomination
and Compensation Advisory Committee, in which independent outside directors form the majority, deliberates thecriteria and policies for nominating the candidates as wellas candidate nomination proposals. The results of those

deliberations are reported to the Board of Directors, whichmakes decisions after receiving reports from the Nomination
and Compensation Advisory Committee on the basis of thecandidates’ knowledge, experience, ability, performance evaluations, and other factors.
In addition, with respect to the nomination of candidates for director who are not members of the Audit
and Supervisory Committee, the right of the Audit andSupervisory Committee to state its opinion on the nomination shall be properly exercised, and with respect to thenomination of candidates for director who are members of
the Audit and Supervisory Committee, the consent of the
Audit and Supervisory Committee shall be obtained.
If a director or executive officer breaks the law or acts
in a manner contrary to the Articles of Incorporation orinternal regulations, or should it be recognized that there
is a difficulty to perform duties properly due to physicalor mental breakdown or a lack of ability, in such cases
the Board of Directors will consider dismissal after having
received a report from the Nomination and Compensation
Advisory Committee.

We support outside officers so that they can deepen their understanding of the Company through training for officers, providing and explaining support systems for outside officers, and visiting production sites. Additionally, the Company provides
support for outside officers to fulfill their roles, such as holding preliminary briefings for outside officers prior to meetings ofthe Board of Directors and providing opportunities for interviews with key executive officers and employees.

Hirata Integrated Report 2023

(Outside Director)

Ken Imamura(Outside Director)

Yasuhiko Endo
(Outside Director)

Asako Okabe
Note: The above shows the knowledge, experience, and capabilities particularly expected of each individual and is not a complete list of all the expertise possessed by said individuals.

Executive Training and Support System for Outside Directors 

62

Naokuni Motoda(Outside Director)

Appointment/Non-reappointment of Directors Nomination and Compensation Advisory Committee
The Company established the Nomination andCompensation Advisory Committee as a voluntary advisory
body to the Board of Directors. The purpose of this committee is to deliberate important matters, such as the nomination and compensation of directors and executive officers,
and to thereby ensure the objectivity and transparencyof these matters and to further strengthen the corporate
governance system.

Directors Who Are Audit and Supervisory Committee Members

Corporate Management
In order to achieve the sustainable growth of the Group and increase its
corporate value over the medium to long term, we need directors who
have the ability to set a vision in order to determine the major directionof management strategies and ability to make decisions to establish a
strategy, taking into account the management issues faced and futurebusiness opportunities. We need directors who can make strategic
proposals and make decisions in light of changes in the business environment, such as politics, the economy, society, and technology, taking into
account business trends and risks, and the business conditions of theGroup.
Industry Knowledge
Directors who have knowledge of the Group’s business, businessmodels, and trends in the market environment and who can makeproposals and make management decisions regarding business strategies and marketing are required.
Technology and Research and Development
We need directors who have diverse knowledge in cutting-edge
technologies, products, and services from a global perspective; view
solutions to social and business issues as new innovations, business
opportunities, and research themes; and can judge the appropriatenessof the research from an objective perspective.
Global Perspective
In order to expand the support system for the Group’s global expansion
and local production, we need directors who have a global perspective
and a broad perspective to judge global business strategies and have acertain understanding of business practices and regional characteristics
in multiple countries with abundant overseas business experience.
Since we are promoting One Hirata, an integrated Group management

initiative, we need directors who can make decisions from a global
perspective in an optimal overall manner.
Risk Management
Legal risks are always associated with the Group’s management andbusiness activities, and it is essential not only to mitigate and eliminate
them but also to assess the severity of the risks and take risks. Also, inorder to establish an optimal governance system, it is also important for
the Group to focus on a Companywide risk management system thattakes into account management strategies, management issues, andfuture visions. Based on the above, it is necessary to have directors withspecialized knowledge of legal affairs, internal control, and compliance.
Finance and Accounting
In addition to having knowledge of finance, accounting, and tax affairs,
directors are required to have a full understanding of the Group’s business and to be able to grasp and make judgments on management
figures in accordance with products and business characteristics. In termsof strategy, directors who can make proposals and make management
decisions regarding capital procurement and dividend policies for growthinvestments and business strategies that contribute to the sustainableenhancement of the Group’s corporate value are necessary.
ESG Expertise
In order for the Group to realize ESG management that integrates
sustainability into management, it is essential to establish a perspectivethat balances corporate growth and the resolution of social issues, aswell as an optimal governance system. Based on this point, it is necessary to have directors who can make decisions from the perspective of
medium- to long-term ESG management without sticking to short-term
profits.

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63

Hirata’s Sustainability

Corporate Governance

Executive Compensation 
Executive Compensation Policy
The Company’s decision-making policy with regard to
executive compensation and associated matters is decided
upon by the Board of Directors. The main basic policies are
as follows:• To achieve sustainable growth and increase corporate value
over the medium to long term, directors’ compensation
shall involve a system that functions as an incentive and at
an appropriate level based on position and responsibility.
• Specifically, in addition to their basic compensation,
executive directors will receive executive bonuses andstock compensation as performance-linked compensation, the ratios of which shall be approximately 1:0.5:0.3(if performance indicator targets are achieved).
• Outside directors who are primarily responsible for supervisory functions shall receive only basic compensation.
Process for Determining Compensation
Regarding individual remuneration for directors (excluding
Audit and Supervisory Committee members), the Board of
Directors delegates decision-making of specific details to
the Nomination and Remuneration Advisory Committee.
In delegating such authority, we respect the Audit andSupervisory Committee's right to state opinions regarding remuneration and take measures to ensure that such
authority is properly exercised.
The remuneration of individual directors who are Audit
and Supervisory Committee members is determinedthrough discussion among directors who are Audit andSupervisory Committee members.
Details of Performance-linked Compensation
Intended to raise awareness of improving performanceeach fiscal year, the bonuses in performance-linked compensation shall be regarded as cash compensation thatreflects performance indicators. Such bonuses are calculated in accordance with the level of achievement of theconsolidated ROE targets for each fiscal year.
By sharing the profits and the risks of stock price fluctuations between directors and shareholders, stock compensation shall be paid via a stock delivery trust mechanism
in order to raise awareness of contributing to improving
medium- to long-term business performance and increasing
corporate value. For each fiscal year, points are awarded
according to position and length of tenure of office aswell as according to the level of achievement of the target
values for evaluation indicators (consolidated ROE andconsolidated operating profit ratio) in the settlement ofaccounts. At the time of retirement, stock equivalent topoints shall be delivered.
The performance indicators and their target values for
performance-linked compensation are reviewed based onrecommendations from the Nomination and Compensation
Advisory Committee depending on changes in the businessenvironment and other factors.

Composition of Executive Compensation

Executive Directors

0.8

Basic compensation

Performance-linked compensation

Performance-Linked Bonus

Performance-Linked
Stock Compensation

Short-term incentive

Medium- tolong-term incentive

0.5

0.3

Fixed compensation

Outside Directors

Basic Compensation

Executive Compensation Breakdown (Fiscal 2022)

Basic
Compensation

PerformanceLinked Stock
Compensation

Bonus

Directors(Excluding Outside Directors)

233,910

148,960

31,61053,34031,6108

Audit & Supervisory Board
Members(Excluding Outside Audit &Supervisory Board Members)

−

−

−

−

−

−

76,70076,700

−

−

−

11

Outside Directors

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Hirata Integrated Report 2023

Furthermore, in parallel with the formulation of the above
policy, each department of the Administration Divisionand the management departments of affiliated companies
cooperate in carrying out activities with a plan to completea review of Group head office functions by the end of fiscal
2023. We aim to build an optimal system for maximizing
corporate value by exerting certain controls on the scope offunctions handled by the head office to each Group company, which had been entrusted to each division.
In addition, in order to increase synergies across theGroup, companies hold regular briefings (quarterly fordomestic affiliates and biannually for overseas affiliates) toshare business strategies and issues and monitor businessperformance as appropriate.
In audits, the Company’s Audit & Supervisory Board
members and other committee members conduct auditsof Group companies, and the Group Company Audit &Supervisory Board Members Liaison Meeting is held ona regular basis to enhance the effectiveness of audits ofGroup companies by sharing the audit status of Group
companies and risk-related matters. The Internal Audit
Department also regularly conducts audits of Group companies and reports to the Board of Directors and the Audit
and Supervisory Committee in a timely manner.

(1) Approach to
Cross-shareholdings(2) Verification of Crossshareholding Suitability

In working to maintain medium- tolong-term relationships and expand
transactions with its business partners, the Company’s basic policy
is to hold only those stocks that
contribute to the enhancement of
its corporate value.

In line with the basic policy,
verification of aspects such as thebenefits and risks associated withthe holdings and whether to continue with them is undertaken at
Board of Directors’ meetings. The
Company shall consider sellingshareholdings that are judged tohave low rationality.

(3) Criteria for Exercising
Voting Rights Related to
Cross-shareholdings
With regard to the voting rights
related to shareholdings, thesewill be exercised in an appropriate manner with the sustainablegrowth of the issuing company asan evaluation criterion and on thepremise that they will contribute to
the improvement of the Company’s
corporate value.

Total Amount by Type of Compensation, etc. (Thousands of Yen)

Total Amount ofCompensation(Thousandsof Yen)Director Classification

The Hirata Group consists of Hirata and 12 consolidated
subsidiaries. Based on the following businesses—the­Automotive- and Semiconductor-related Equipment­businesses and Other Automatic Labor-saving business—
the Group is developing its businesses at bases in North
America, Europe, Southeast Asia, China, and Taiwan.
Having established a Basic Policy for Establishing an
Internal Control System, the Board of Directors is working
to strengthen Group controls.
In addition to monitoring the execution of management’s
duties, each Group company strengthens Group controls by
ensuring the Company’s involvement in important decisionmaking and the reporting of serious incidents, such ascompliance violations, to the Company in accordance withaffiliated company management regulations.
As the most recent major initiative in Group control,
we have established subcommittees consisting of members from multiple departments, including the affiliatedcompany management department, the general affairs
department, and the corporate planning department, withthe aim of formulating a basic policy for Group governanceby the end of fiscal 2023. The basic policy under consideration sets the level of involvement of affiliated companies
from the perspectives of fund management, release of
personnel, and involvement in business strategies and isconsidering effective control by monitoring risk based on
the financial condition of each Group company.
Cross-shareholdings

1
Basic Compensation(In the event that performance indicator targets
have been achieved)Group Governance

Number of
Of the Items on
Eligible Directors
the Left,
Non-Monetary
Compensation, etc.

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65

Hirata’s Sustainability

Corporate GovernanceCompliance

Risk Management

Compliance Charter 

Risk Management System 

Fundamental Principles
Because of our global nature, we at Hirata as well as each of our Group companies abide by a set of established rules we call our
Code of Conduct. We strive for total compliance with the code to effectuate commercial endeavors that are both fair and transparent
always in accordance with legal statutes both domestically and abroad along with social norms and in-house regulations.

The Company has established a Risk Management
Committee under the Board of Directors, which conductsCompanywide risk management in accordance with the
Risk Management Rules to deal with events that may
affect the achievement of business goals or sustainable
management.
In the Company’s risk management system, the division
director of the Administration Division is responsible
for Companywide risk management and conducts suchmanagement. The Risk Management Committee, chairedby the representative director and president, has been
established as a deliberative body for risk management.
We comprehensively grasp and evaluate risks that occur
throughout the Group from the perspective of the entire
organization and conduct activities to maximize corporate
value, prevent risks from occurring, and minimize losses
after they occur.
The department in charge of each risk item identifies
risks evaluates them, and implements countermeasures.
The department in charge of risk management summarizes
Companywide risks and monitors the implementation
status and effectiveness of countermeasures, and theInternal Audit Department audits the effectiveness andresponse status.

Code of Conduct
Based on our business principles, we at Hirata are fully aware of our mission androle as a corporate entity with respect to our valued customers, shareholders,business partners, employees, and members of local communities. To make acontribution to society at large, the following Code of Conduct is applied to all
employees of every company in the Hirata Group, with every single employee
having the responsibility of maintaining and improving upon them.
Note: For more details on each of these items please visit:https://www.hirata.co.jp/en/sustainability/esg/compliance

1. A
 biding by legal statutes and regulations
2. Engaging in fair and just business3. Disclosure of corporate information
4. P roper management and utilization of
corporate assets
5. Contribution to society
6. Respecting the individual
7. C ontrolling confidential information andpersonal information
8. Duty of practice and accountability

Compliance System Compliance Promotion Framework
Having established a Compliance Committee under the
Board of Directors, the Company formulates compliancemeasures and, should a compliance violation arise, it conducts investigations and analyses, issues cease-and-desist
orders, and formulates measures to prevent a recurrence.
Including the implementation status of each measure andthe operational status of the internal whistleblowing system,
reports are also made to the Board of Directors.
Efforts to Strengthen Compliance
The Company provides compliance training for employees
when they join the Company, and theme-based training,which for example covers the Act against Delay in Payment
of Subcontract Proceeds, Etc. to Subcontractors, security
export controls, and harassment prevention, is conducted
as appropriate for Group employees.
Having conducted compliance fact-finding surveys since
fiscal 2020 on a yearly basis, the Company is continuing toconduct a variety of measures and education based on thesurvey results. The Company has also set up a compliancewebpage on its intranet, on which educational and othermaterials based on violation case studies are posted for
employees on a monthly basis.
Board of Directors
Instructions

Report66

Hirata Integrated Report 2023

ReportInstructions

Risk Management Committee
Committee chair(Representative director,
president)

Directors who are Audit andSupervisory Committee members(Can attend committee meetingsand state their opinions)

Committee vice chair(Person in charge ofCompanywide risk management)

Full-time committee members
Risk Management Committee Secretariat

Monitoring

ReportAll departments

Compliance Committee
Committee chair(Representative director, president)
Committee vice chair(Person in charge of Companywide
risk management)

Directors who are Audit andSupervisory Committee members(Can attend committee meetingsand state their opinions)

Full-time committee members
Compliance committee secretariat

Investigations/Cease-and-desist orders/Guidance

ReportAll departments
Divisional compliance promotion managers

Whistleblowing System 
The Company has established a whistleblowing system inorder to quickly identify compliance violations and takeappropriate measures. In addition to an internal hotline,
we have established an external hotline for reporting tothird-party outsourcing companies that enables anonymous
reporting in the local language and a supplier hotline thatcan be used by suppliers. Each hotline has a system in placethat complies with the Revised Whistleblower Protection
Act, and regulations stipulate the duty of confidentiality

Board of Directorsof whistleblower information and the prohibition ofdisadvantageous treatment due to whistleblowing.
Reports received are handled in accordance with said
regulations and reported to the Board of Directors throughthe Compliance Committee Secretariat.

Number of whistleblowing reports

FY2020

FY2021

FY20226

8

12

Ascertaining of and Responding to Risks 
The Company has created a Hirata Risk Map that broadlyclassifies approximately 70 risk items into four categories:
management process risks, which include governance;
external factor risks such as market changes; indirectbusiness process risks that cover human resources andIT systems; and direct business process risks related tobusiness activities such as production. Based on the
Hirata Risk Map, the Company has established the main
department in charge of each risk item and put in place amechanism whereby the information collected on assumed
and incurred risks is aggregated by the department
responsible for risk management.
From the aggregated risk information, the department
responsible for risk management comprehensively evaluates
the likelihood of the occurrence, magnitude of the impact,
and priority of the risk. The Risk Management Committee
then determines major risks and related measures, monitors
the status of measures, and reports to the Board of
Directors.

Company-wide Risk Management Flow
Main Departments in Charge
Grasp/Plan

Rebuild

All Departments
AuditsInternal audit
Cooperation

Check

Implement• PDCA support• Regular monitoring

Report/Consult

Department responsible for risk management• Reports new and significant risks• Reports on the results of regular monitoring surveys andanalyses to each department

Instructions

Risk Management Committee
ReportBoard of Directors

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67

Hirata’s Sustainability

Corporate GovernanceBusiness Continuity Plan (BCP) 

From few days to few
months after occurrence

Regional contribution activities

From day of occurrence

Based on its BCP Policy, which places the highest priority
Flowchart for Implementing BCP
on the lives and safety of employees and their families, theOccurrence of emergency
Company has established procedures for clarifying how to
confirm the safety of employees and others. We also secure
Initial response, BCP operations
stockpiles of supplies in the event that makes it difficult
Establish task force, confirm conditions of damage and personnel safety
for employees to return home. In addition, by sequentiallydeveloping and reviewing procedures for checking theContact customers, suppliers, and related organizations
damage status of building infrastructure at our businesssites and procedures for conducting surveys on the damage
Draft policy for continued operation of core business, establish systemstatus of suppliers, we will not only ensure the safety of ouremployees but also minimize the impact on our customSupport employees and Handle financial liabilities
ers’ businesses, thereby contributing to our stakeholders.
Support clients andEnsure, pay, and financebusiness resources
partner companies
Furthermore, by conducting simulated drills on a regular
working capital
Administer emergency
Adjust and restore deals
aid and restorationbasis, we are working to promote understanding of the
BCP among employees and others while ensuring the effectiveness of procedures, etc.
Restoration and reconstruction
In the event of an emergency, the BCP organization willplay a central role in the initial response, business continuity,and recovery following the flowchart for implementing our BCP.
BCP Policy
To as far as possible avoid circumstances that could endanger business continuity due to unexpected disasters or problems, we plan
to continue business by extracting risks in advance and defending ourselves against and mitigating those risks and to restore business
operations in a short period of time in emergency situations.
• Give top priority to the lives and safety of employees and their families• Minimize any negative impact on our customers’ businesses • Assist our stakeholders
We review our BCP on a regular basis for continuous improvement

IT Security
IT Security Management 
To protect information and information assets, including IT
equipment, from threats such as leakage and damage aswell as to conduct its business activities safely and securely,
the Company established an IT Security Basic Policy andformulated IT security management regulations.
To act as a management system, we have establishedan IT Security Committee while reviewing policies andregulations, conducting risk analysis, and monitoring IT
security measures, including those of Group companies andthe supply chain.
In the event of a security incident, we form a response
team in accordance with set procedures so that we canrespond swiftly.

Efforts to Strengthen IT Security 
To ensure the safety of the IT assets handled by theCompany, we have implemented a raft of measuresfrom both system and human resource perspectives. As
an example of one such system, we have introduced an
endpoint detection and response (EDR) service to quickly
implement appropriate countermeasures against new
threats, such as previously unknown computer viruses
and targeted threat emails. We are working to improve IT

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Hirata Integrated Report 2023

security literacy by providing our employees with IT security
education and targeted threat email training.
Management Meeting

Board of Directors

PolicyReportInstructions

IT Security Committee
Risk Management Committee

Persons in charge ofIT security
IT security policy,
rules, procedures,and monitoring

System Management
Department

Incident reports

IT Management Department
IT managers

IT systems managers

AuditsInternal audit