Audit and Supervisory Board

This body reviewed risks and issues in the five areas, namely (1) Directors, (2) Business execution, (3) Subsidiaries, (4) Internal audit, and (5) Accounting audit, and formulated annual activity plans. Outline of audit activities in each of these areas and division of duties of Audit & Supervisory Board Members are as below.Audit activities are mainly carried out by full-time Audit & Supervisory Board Members, and the contents are shared in a timely manner at the Audit & Supervisory Board meetings. Outside Audit & Supervisory Board Members conduct audits with full-time Audit & Supervisory Board Members and make recommendations, taking advantage of their respective expertise and backgrounds, and express their opinions from the independent standpoint.

●: In charge
□: Voluntarily or partly in charge

The Audit & Supervisory Board considered anticipated risks in light of changes in both the internal and external environments, in addition to the Company's business activities for the fiscal year under review. As a result, we have established the following audit policy.

With the start of the 21st Mid-Term Management Strategy under the new management structure, including the transition of the CEO, we will monitor and verify the execution status in alignment with the Mid-Term Management Strategy. This includes focusing on the effectiveness and response to challenges in the transformation into a digital services company, efforts to enhance corporate value, and governance changes such as role allocation and delegation of authority.
Through audit activities, including visiting audits, to be conducted during the term, we report identified and recognized issues to the Board of Directors as needed to support swift and effective management responses.

The areas of focus, activities, and achievements for the fiscal year under review are as follows.

For fiscal 2024, we will continue to focus on the effectiveness of various measures and the status of addressing challenges in the transformation into a digital services company. In particular, our audit activities will prioritize initiatives aimed at improving corporate value, such as the impact of “Transformation of Headquarters” on governance and internal control, the impact of “Acceleration of business selection and concentration” and “Optimizing R&D” on growth-oriented activities, the establishment and operational status of management systems, including subsidiaries, related to the “Transformation of Office Printing business structure,” such as the formation of ETRIA CO., LTD., and the progress of growth strategies aimed at “Acceleration of Office Services’ profit growth.”

Audit & Supervisory Board Members, as a statutory independent entity entrusted by the Company's shareholders, are responsible for auditing the Directors' performance of their duties, and ensuring the establishment of systems of good corporate governance to respond to the trust placed in the Company by society.

The Audit and Supervisory Board prepared the Audit Report on the following; (i) Methods and contents of the Audit employed by the Audit and Supervisory Board Members and the Audit and Supervisory Board, and (ii) Audit results. With respect to (i) Methods and contents of the Audit employed by the Audit and Supervisory Board Members and the Audit and Supervisory Board, the Board decided to voluntarily prepare and disclose these Notes, as complementary material to the Audit Report, in order to enhance the effectiveness of the dialogue with stakeholders including shareholders, based on the belief that it is crucial to provide more concrete explanation, to enhance audit transparency.