Basic Views

The Company’s basic approach to corporate governance is to promote highly transparent management that is committed to the steady development of operations in its primary business.
Its corporate philosophy is: “We contribute to the health and happiness of people around the world through pursuit of excellence in life science in general and our research and experience in microorganisms in particular.” In the pursuit of this philosophy, the Company believes it is important to implement transparent management with an emphasis on well-developed internal control functions, including appropriate management organization and pertinent decision-making.

Corporate governance structure

Basic Views on the Internal Control System and Status of Development

The Company is promoting its business activities in accordance with its corporate philosophy: “We contribute to the health and happiness of people around the world through pursuit of excellence in life science in general and our research and experience in microorganisms in particular.” To this end, the Company believes that it is important to implement management that places emphasis on strengthening and enhancing internal control functions as a company widely trusted by society.
Based on this perspective, the Company has made the resolutions listed below on basic policies regarding building internal control systems after reconfirming the development status of its internal control system.
The contents of these resolutions will be revised as appropriate in line with revisions to laws and changes in environment inside and outside the Company, aiming to further strengthen and enhance internal control systems.

• 1.Systems to ensure that the performance of duties by directors and employees of the Company complies with laws and Articles of Incorporation
• 2.Systems regarding preservation and management of information related to the performance of duties by the Company’s directors
• 3.Rules and other systems regarding the Company’s management of risks for losses
• 4.Systems to ensure that the performance of duties by the Company’s directors are efficient
• 5.Systems to ensure that operations at the corporate group consisting of the Company and subsidiaries are appropriate
• 6.Matters regarding employees who support the duties of the Company’s Audit & Supervisory Board members in cases in which Audit & Supervisory Board members make a request to assign such employees
• 7.Matters regarding the independence of employees who support the duties of the Company’s Audit & Supervisory Board members mentioned in the previous item from directors, and systems to ensure the effectiveness of instructions given to these employees by Audit & Supervisory Board members
• 8.Systems for the Company’s directors and employees to provide reports to Audit & Supervisory Board members and other systems regarding reports provided to Audit & Supervisory Board members
• 9.Systems to ensure that reporting parties do not receive unfair treatment as a result of such reports
• 10.Other systems to ensure that audit operations of the Company’s Audit & Supervisory Board members are carried out effectively