Vitec believes the Management is obligated to ensure stability in employees' livelihood, return profits to shareholders, and fulfill its social responsibilities to stakeholders so as to improve the Company's corporate value. To this end, it is important to have corporate governance established for the maintenance of transparency and fairness in business management and for improved operation efficiency. Vitec operates an auditing system. Company officers include directors and auditors. We have a framework that ensures management transparency and fairness by inviting directors from outside the company for maintaining efficient operation.

The Board Meetings and Corporate Management Meetings are held on every month, and additionally on an as-needed basis, in which legal issues and important management issues are deliberated and decided on for directors to carry out their duties.
Before being submitted to the decision-making body, important issues are subject to deliberation at various committees, such as the investment committee, according to the level of risk. By doing so, efficiency is promoted in decision-making processes. Operations decided on by the Board of Directors are carried out efficiently within the scope of authority and responsibility of each division/department head pursuant to the Duty Regulations and the Authority Regulations.
Directors have tenure of one year so as to clarify management responsibility.

Vitec is a company with appointed auditors. The Board of Auditors checks the performance of directors' duties and interviews the accounting auditors for audit results. Regarding liaison with the accounting auditors, the Board of Auditors obtains the audit plan at the beginning of the term and carries out auditing efficiently according to the audit plan. The Board of Auditors obtains audit results semiannually. Moreover, they exchange opinions with each other several times per year on an as-needed basis.

Internal auditing is conducted by the Auditing Department, which is under direct control of the President, over general business operations based on the audit plan adopted at the beginning of the term.
Audit results are reported in person to the President in written form. After reviewing the contents of the audit report, the President issues an order for improvement to the audited division/department and related divisions/departments via the relevant department.
Regarding liaison with the auditors, the Auditing Department is required to help the auditor's duties in accordance with the Internal Audit Regulations.

Vitec's accounting auditing is carried out by Deloitte Touche Tohmatsu on consolidated and individual financial statements in accordance with the Corporation Law and the Financial Products Trading Law.

In the recent business environment, the Vitec Group considers that an important challenge facing the management is to strengthen the corporate governance system. We intend to direct our efforts toward building an internal governance system and also to deliberate on the introduction of a process for improving business performance and supervision functions.