Audit and Supervisory Board

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. In addition, during reviews by Audit & Supervisory Board Members, roundtable meetings were held with employees from each organization and subsidiary to gain a better understanding of their opinions and challenges on the frontlines. 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. Information obtained and issues identified through audit activities are provided as feedback or recommendations to the management through information sharing meetings, etc., to promote actions for strengthening internal control and improving operations.

●: In charge
□: As necessary

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 current fiscal year. As a result, we have established the following audit policy.

We will continue to watch the progress and effectiveness of the Corporate Value Improvement Project while monitoring and verifying the allocation of management resources to growth areas and the development and operation of global governance and internal control systems. In addition, in the formulation of the next management strategy, we will share with the Board of Directors, as appropriate, information and issues related to organizational and governance structures for achieving medium- to long-term growth as a digital services company, and will proactively express our views to contribute to the sustainable improvement of corporate value.

The areas of focus, activities, achievements, and recognition of the Audit & Supervisory Board on each area of focus for the current fiscal year are as follows.

(Recognition of the Audit & Supervisory Board)

We confirmed that the efficiency targets under the Corporate Value Improvement Project have been achieved largely in line with plan overall. Efficiency improvements utilizing DX and AI have progressed, and going forward, we will verify the securing and development of Office Services personnel in light of the growth strategy. We will continue to closely monitor the effectiveness of PMI associated with subsidiary reorganizations and the strengthening of internal control structure.

(Recognition of the Audit & Supervisory Board)

With respect to the global framework of headquarters functions, progress differs among divisions, and continued reinforcement is necessary. As a governance function of headquarters, the management of IT investment progress is considered particularly important, and we will continue to prioritize verification under the new organizational structure. The integration of subsidiaries has progressed, and we will continue to closely monitor the status of business reorganizations and the progress of the standardization of back-office operations, together with the status of the development of internal control systems at subsidiaries.

(Recognition of the Audit & Supervisory Board)

Under a matrix management, a robust governance and internal control system is important. Accordingly, we will continue to closely monitor and verify the establishment of control authorities under the new structure, the development of coordination and management frameworks between business units and each region, the establishment of internal frameworks in the field of AI technologies, and the development of digital talent.

For fiscal 2026, amid a rapidly changing business environment, and with a view to expanding value as a “workplace integrator,” the Audit & Supervisory Board Members will focus their audit activities on the following areas:

In addition, issues identified through audit activities will be shared with the Board of Directors and the management on a timely basis. Audit & Supervisory Board Members will continue to provide advice and recommendations aimed at enhancing corporate value in a sustainable manner and strengthening internal controls.

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 & Supervisory Board voluntarily prepares these Notes as complementary material to the Audit & Supervisory Board's Report, in order to enhance the effectiveness of the dialogue with stakeholders including shareholders, based on the belief that more concrete explanation of the Audit & Supervisory Board's activities will lead to enhanced audit transparency. We also plan to disclose the outline of these Notes in the section on the “Status of the Audit conducted by Audit & Supervisory Board” in the Securities Report.