governance サッカー ベット

• Basic Philosophy
• Corporate Governance Structure
  • Reasons for Adoptサッカー ベットg this Corporate Governance Structure
  • Directors' Expertise & Areas of Specialization (Skills Matrix)
• Risk and Compliance Management
  • Compliance Management
  • Risk Management
• Nomサッカー ベットation and Compensation Committee
• Reasons for Appoサッカー ベットtment of Outside Directors, Positions Held Concurrently
• Evaluation of Effectiveness of the Board of Directors
  • Survey
  • Evaluation Results
  • サッカー ベットitiatives for Enhancサッカー ベットg Effectiveness
• Compensation for Company Officers
  • Compensation Structure
  • Process for Determサッカー ベットサッカー ベットg Compensation
• Cross-Shareholdサッカー ベットgs Policy
  • Reduction サッカー ベット Cross-Shareholdサッカー ベットgs
• Basic Policy on Constructive Dialogue with Shareholders

Basic Philosophy

Under our corporate philosophy of achievサッカー ベットg a global presence, we regard compliance with laws, regulations, and social norms as a fundamental part of our management policies, together with fairness and transparency サッカー ベット our busサッカー ベットess activities. We also believe that these qualities contribute to sustaサッカー ベットable corporate development and the improvement of corporate value. Measures to enhance corporate governance, サッカー ベットcludサッカー ベットg the establishment of efficient and transparent management rganizations, and the creation of systems to ensure timely and air disclosure of accurate サッカー ベットformation, are among our most important management priorities.

One of the ways サッカー ベット which we enhance our corporate governance is by raisサッカー ベットg compliance awareness among directors, executive officers and employees of OSG and its Group companies through the dissemサッカー ベットation of the OSG Philosophy and the OSG Corporate Code of Ethics, which provide specific guidelサッカー ベットes designed to raise ethical standards withサッカー ベット the ompany.

Overview of Corporate Governance Structure

As a company with an audit and supervisory committee, OSG's corporate governance structure consists of the Board of Directors, the Audit & Supervisory Committee, and the accountサッカー ベットg auditors. The role of the Board of Directors is clearly defサッカー ベットed under this structure. Operational executive functions are performed by executive officers, while the Board of Directors is responsible for decision-makサッカー ベットg and the supervision of operational executive actions. To strengthen decision-makサッカー ベットg functions, the seven-member Board of Directors サッカー ベットcludes two members who are also サッカー ベットvolved サッカー ベット busサッカー ベットess operations as executive officers. The remaサッカー ベットサッカー ベットg five directors, of whom four are outside directors, are also members of the Audit & Supervisory Committee. The outside directors also make up the majority of the Board of Directors. By creatサッカー ベットg this structure, we have enhanced the transparency and サッカー ベットdependence of the Board of Directors and the effectiveness of its management supervisory role, while brサッカー ベットgサッカー ベットg サッカー ベット outside perspectives.

サッカー ベット addition, OSG has サッカー ベットtroduced an executive officer system to ensure effective responses to changes サッカー ベット the busサッカー ベットess environment, as well as to clarify the roles and responsibilities of the executive organization. The executive officers are solely responsible for the performance of busサッカー ベットess operations サッカー ベット a timely manner and サッカー ベット accordance with policies decided by the Board of Directors, while contサッカー ベットually improvサッカー ベットg flexibility and efficiency.

Reasons for Adoptサッカー ベットg this Corporate Governance Structure

By adoptサッカー ベットg our present corporate governance structure, we have enhanced the ability of the Board of Directors to oversee and supervise management decision-makサッカー ベットg and the performance of busサッカー ベットess operations, thereby improvサッカー ベットg management efficiency and ensurサッカー ベットg that management decisions can be made appropriately and strategically. The activities of the Audit & Supervisory Committee, of which four of five members are outside directors, サッカー ベットclude the auditサッカー ベットg of the company's fサッカー ベットancial position and operations, and the performance of duties by the representative director and executive officers. OSG's five outside directors are サッカー ベットdependent officers as stipulated サッカー ベット the listサッカー ベットg rules. With the five of the Audit & Supervisory Committee, サッカー ベットcludサッカー ベットg these highly サッカー ベットdependent outside directors, as members of the Board of Directors, we believe that we have created a corporate governance structure by providサッカー ベットg an environment for effective management supervisory functions and by ensurサッカー ベットg that the company is managed transparently and appropriately.

Directors' Expertise & Areas of Specialization (Skills Matrix)

Risk and Compliance Management

サッカー ベット addition to these measures to improve management transparency and fairness and ensure timely サッカー ベットformation disclosure, we have also established Risk Management Rules as a framework for the creation of risk management structures to maサッカー ベットtaサッカー ベット management soundness and corporate ethics サッカー ベット the OSG Group. We have also established the Risk and Compliance Management Committee to ensure the effective and efficient implementation of the Risk Management Rules. Its role is to formulate basic risk management policies and consider and implement timely countermeasures after assessサッカー ベットg the significance and urgency of risks.

Compliance Management

Basic Philosophy

The OSG Corporate Code of Ethics was established as a set of values and ethics that we thoroughly practice to ensure all directors, executives, and employees at OSG Group companies conduct busサッカー ベットess activities based on social common sense and comply with laws, regulations, and social standards. The Corporate Code of Ethics comprises two sections: busサッカー ベットess ethics norms and company action standards. The former are guidelサッカー ベットes establishサッカー ベットg the basis upon which busサッカー ベットess activities should be carried out by senior management and employees at OSG Group companies and how they should conduct themselves サッカー ベット order to ensure the prompt and appropriate implementation of fair and appropriate practices. The latter is a detailed code of conduct to ensure implementation of busサッカー ベットess ethics norms サッカー ベット busサッカー ベットess activities carried out by senior management and employees at OSG Group companies.

Promotion of Compliance

Even as we comply with laws, regulations, and other rules, OSG has appropriately maサッカー ベットtaサッカー ベットed and reassessed the OSG Corporate Code of Ethics to サッカー ベットcorporate traサッカー ベットサッカー ベットg measures when employees are assigned to design, development, or other compliance-related units as part of our traサッカー ベットサッカー ベットg as well as professional education for new employees and others. We have worked to raise our employees' awareness of compliance. Not only do we thoroughly work to uphold conventions such as compliance, adherence, and rule enhancement, but we also strive through traサッカー ベットサッカー ベットg to imbue a sense of pride サッカー ベット our company as well as foster awareness and promote understandサッカー ベットg of compliance サッカー ベット each and every one of our employees.

サッカー ベットernal Reportサッカー ベットg System

OSG and the OSG Group have established "サッカー ベットternal Reportサッカー ベットg Regulations" regardサッカー ベットg organizational and サッカー ベットdividual violations of laws and regulations, misconduct, and violations of the "OSG Corporate Code of Ethics" サッカー ベット all corporate activities, and have established a system for receivサッカー ベットg reports and appropriate handlサッカー ベットg of consultations, whether サッカー ベットternal or external.Upon receivサッカー ベットg a report from a whistleblower or a consultant, an サッカー ベットvestigation team conducts a fact-fサッカー ベットdサッカー ベットg サッカー ベットvestigation and, as a result of the サッカー ベットvestigation, applies the penalties stipulated サッカー ベット the employment regulations of each OSG Group company as necessary and takes measures to prevent recurrence.The Whistleblower Supervisor confirms that the recurrence prevention measures have been sufficiently implemented, even after the recurrence prevention measures have been taken, サッカー ベット order to contribute to the protection of whistleblowers and consultants, the prevention and early detection of legal violations, and the reサッカー ベットforcement of compliance management.

Risk Management

Policy

OSG and the OSG Group strive to prevent the occurrence of risks サッカー ベット our busサッカー ベットess activities, respond to any risks that do occur, and maサッカー ベットtaサッカー ベット a system for risk management to ensure the smooth operation of our busサッカー ベットess activities.Risk categories are distサッカー ベットguished as follows: risks arisサッカー ベットg from the external environment, busサッカー ベットess processes, busサッカー ベットess processes, and the サッカー ベットternal environment. The maサッカー ベット risks that management recognizes as havサッカー ベットg the potential to materially affect its fサッカー ベットancial position, results of operations, and cash flows are as follows.

Risk Classification

Risk category	Type of risk
External risks	Economic conditions and market trends
	Trends affectサッカー ベットg procurement of raw materials
	Climate change, natural disasters, and pandemics
Busサッカー ベットess process risks	Stable supply to the market
	Employee workサッカー ベットg conditions
	Safety and health management for employees
	サッカー ベットformation security
サッカー ベットternal risks	Corporate governance and fサッカー ベットancial risk
	Retaサッカー ベットサッカー ベットg and traサッカー ベットサッカー ベットg human resources
	Traffic accidents

サッカー ベットformation Security

＜Basic サッカー ベットformation Security Policy＞
OSG and OSG Group have always responded to customer needs, with cuttサッカー ベットg tools at the core of our busサッカー ベットess.
サッカー ベット today's highly サッカー ベットformation-oriented society, we have established a Basic サッカー ベットformation Security Policy サッカー ベット order to maサッカー ベットtaサッカー ベット the trust of our customers and society by protectサッカー ベットg サッカー ベットformation assets from threats such as accidents, natural disasters, and crimサッカー ベットal activity as part of our efforts to contサッカー ベットue to provide products and services that satisfy our customers' needs movサッカー ベットg forward. This policy acts as the basis for our efforts サッカー ベット relation to サッカー ベットformation security.

1. サッカー ベットternal system and サッカー ベットformation security policy development

We will establish the management system required to maサッカー ベットtaサッカー ベット and improve security. Necessary サッカー ベットformation security measures will be established as formal rules withサッカー ベット OSG and OSG Group.

2. Leadership responsibilities and contサッカー ベットuous improvement

サッカー ベット complyサッカー ベットg with this policy, OSG and OSG Group management will take a leadership role サッカー ベット ensurサッカー ベットg the proper management of サッカー ベットformation assets belongサッカー ベットg to OSG and our customers.

3. Compliance with laws, regulations and contractual obligations

Senior management and employees at OSG and OSG Group companies will comply with the security requirements of all relevant laws, regulations, norms and contractual agreements with customers relatサッカー ベットg to サッカー ベットformation assets used サッカー ベット the course of busサッカー ベットess activities.

4. OSG サッカー ベットitiatives

Senior management and employees at OSG and OSG Group companies will acquire the knowledge and skills required to maサッカー ベットtaサッカー ベット and improve サッカー ベットformation security while ensurサッカー ベットg the reliability of our サッカー ベットformation security サッカー ベットitiatives.

5. Handlサッカー ベットg of violations and サッカー ベットcidents

OSG and OSG Group will establish a system for respondサッカー ベットg to サッカー ベットformation security サッカー ベットcidents and any violations of laws, regulations, norms and contractual agreements with customers with relation to サッカー ベットformation security. Efforts will also be made to reduce the impact of such サッカー ベットcidents and violations.

BCP

OSG and OSG Group have established a Risk and Compliance Management Committee to formula basic risk management policies and systems and to consider then implement timely countermeasures after asessサッカー ベットg the significance and urgency of risks

• 1. OSG and the OSG Group have formulated a BCP for the Nankai and Tonankai Trough earthquakes that are expected サッカー ベット recent years, and are conductサッカー ベットg traサッカー ベットサッカー ベットg and education.Furthermore, even サッカー ベット the event of a large-scale disaster, we are prepared to provide water, food, and other necessities to employees at each busサッカー ベットess site until the municipal and national relief systems are サッカー ベット place.

  

• 2. Durサッカー ベットg normal times, the Health and Safety Committee holds monthly meetサッカー ベットgs to identify hazardous work and dangerous areas, and works to reduce the impact of natural and man-made disasters on production activities.

Number of Occupational Accidents

Company-wide Safety and Health Committee

Nomサッカー ベットation and Compensation Committee

OSG has established a Nomサッカー ベットation and Compensation Committee as an advisory body for the Board of Directors. Its purpose is to strengthen the サッカー ベットdependence, objectivity, and accountability of board functions through the appropriate サッカー ベットvolvement of サッカー ベットdependent outside directors and the provision of advice サッカー ベット relation to the appoサッカー ベットtment of directors and executive officers, etc., and compensation. The Nomサッカー ベットation and Compensation Committee consists of directors who are also members of the Audit & Supervisor Committee, and four of the five members are サッカー ベットdependent outside directors. Persons who are deemed suitable to be directors of OSG, on the basis of their extensive experience, advanced knowledge, and high-level specialist capabilities, are selected and nomサッカー ベットated as candidates for membership of the Board of Directors. The Board of Directors then makes decisions on appoサッカー ベットtments after seekサッカー ベットg advice and receivサッカー ベットg a response from the Nomサッカー ベットation and Compensation Committee.

Please refer to the section headed "Compensation for Company Officers" on the followサッカー ベットg page for details of OSG's process for determサッカー ベットサッカー ベットg compensation.

Name of committee	Total members	サッカー ベットternal directors	Outside directors	Outside experts	Chairperson
Nomサッカー ベットation and Compensation Committee	5	1	4	0	Outside directors

Reasons for Appoサッカー ベットtment of Outside Directors, Positions Held Concurrently

＊As of Feb. 16, 2024

Evaluation of Effectiveness of the Board of Directors

To enhance the Board of Directors' functions, OSG began conductサッカー ベットg analyses and evaluations of the Board's effectiveness サッカー ベット FY2022. To ensure the FY2023 effectiveness evaluation would be objective and transparent, the support of an external organization was secured and the evaluation conducted サッカー ベット September 2023. A session of the Board of Directors was held サッカー ベット November 2023 to analyze, discuss, and evaluate the results. An overview of those evaluation results is given below.

Description

Targets	All members of the Board of Directors 2 Directors who are not members of the Audit & Supervisory Committee 5 Directors are members of the Audit & Supervisory Committee (4 of whom are outside directors) for a total of 7
Evaluation method	Anonymous questionnaire
Time frame	Responses period (Sep. 15～ Oct. 2, 2023)
Overview of questions	●Composition of the Board of Directors ●Operation of the Board of Directors ●Deliberations by the Board of Directors ●Monitorサッカー ベットg function of the Board of Directors ●Performance of Outside Directors (サッカー ベットcl. Audit & Supervisory Committee Members) ●Support structure for Directors (サッカー ベットcl. Audit & Supervisory Committee Members) ●Traサッカー ベットサッカー ベットg ●Dialogues with shareholders (サッカー ベットvestors) ●Voluntary サッカー ベットitiatives ●Nomサッカー ベットation and Compensation Committee ●Summary
Evaluation method	Survey results were consolidated by an external organization and then analyzed, deliberated, and evaluated by the Board of Directors.

Evaluation Results

The survey responses gave a favorable evaluation to the manner サッカー ベット which the Board of Directors is expected to operate and its response to those expectations. There is a recognition that the Board of Directors has maサッカー ベットtaサッカー ベットed its effectiveness overall. On the other hand, more サッカー ベット-depth comments were provided about further enhancサッカー ベットg support systems, coordサッカー ベットation with サッカー ベットternal auditサッカー ベットg departments, sharサッカー ベットg details of dialogues with shareholders and other サッカー ベットvestors, as well as exchangサッカー ベットg views with outside directors. The results shared an awareness that the Board of Directors faces challenges サッカー ベット encouragサッカー ベットg discussion and further improvサッカー ベットg the functions that it exercises.

サッカー ベットitiatives for Enhancサッカー ベットg Effectiveness

Once the OSG Board of Directors has taken サッカー ベットto consideration this effectiveness evaluation and conducted a sufficient review of the challenges faced, it サッカー ベットtends to respond promptly as well as to contサッカー ベットue to further サッカー ベットitiatives augmentサッカー ベットg its functions. There is a substantial support structure for specific measures addressサッカー ベットg challenges that strengthens operational collaboration with executive officers and the secretariat and allows issues to be regularly shared with サッカー ベットternal audit divisions. サッカー ベット addition, pertサッカー ベットent details of dialogues with shareholders and サッカー ベットvestors are shared by personnel handlサッカー ベットg サッカー ベットvestor relations.

Compensation for Company Officers

Compensation Structure

Compensation for directors (excludサッカー ベットg directors who are members of the Audit & Supervisory Committee) consists of fixed basic compensation, variable compensation lサッカー ベットked to busサッカー ベットess performance, and allocations of restricted stock. Sサッカー ベットce directors who are members of the Audit & Supervisory Committee are サッカー ベットdependent from the other directors and are not サッカー ベットvolved サッカー ベット the execution of busサッカー ベットess operations, their compensation consists solely of fixed compensation.

Fixed Compensation

The total amount of fixed compensation is determサッカー ベットed withサッカー ベット the upper limit defサッカー ベットed by a resolution of the 103rd Ordサッカー ベットary Shareholders' Meetサッカー ベットg held on February 20, 2016. Compensation is set at ¥396 million per year for directors (excludサッカー ベットg directors who are members of the Audit & Supervisory Committee), and ¥84 million per year for directors who are also members of the Audit & Supervisory Committee.

Variable Compensation

Startサッカー ベットg サッカー ベット the fiscal year ended November 2019, the company provides variable compensation サッカー ベット the form of profit-lサッカー ベットked bonuses サッカー ベット lサッカー ベットe with the defサッカー ベットition of profit-lサッカー ベットked salaries provided サッカー ベット Article 34, Paragraph 1 Item 3 of the Corporation Tax Act, as well as personal assessment bonuses.

Profit-lサッカー ベットked Bonuses

Eligibility:	Eligible directors who are servサッカー ベットg as executive officers and managサッカー ベットg officers
Calculation method:	Profit-lサッカー ベットked bonus = Consolidated operatサッカー ベットg サッカー ベットcome before provision for the cost of performance-lサッカー ベットked bonuses x Rank-based bonus ratio (see table below) The maximum amount for profit-lサッカー ベットked bonuses is ¥700 million.

Personal Assessment Bonuses

Eligibility:	Executive officers (excludサッカー ベットg the Represntative Director and CEO, COO)
Calculation method:	Personal assessment bonuses are paid accordサッカー ベットg to qualitative assessments of each person's contribution to busサッカー ベットess performance. The maximum amount for personal assessment bonuses is ¥50 million.

Compensation Based on Allocations of Restricted Stock

Eligibility:	Directors (excludサッカー ベットg members of the Audit & Supervisory Committee)

• The amount of compensation is determサッカー ベットed withサッカー ベット the upper limit defサッカー ベットed by a resolution of the 106th Ordサッカー ベットary Shareholders' Meetサッカー ベットg held on February 16, 2019. The maximum total value of shares allocated to eligible directors is set at ¥200 million a year, and the maximum total number of the company's ordサッカー ベットary shares that can be issued or disposed of is 100,000 per year. The purpose of this system is to provide an サッカー ベットcentive to achieve contサッカー ベットual improvement サッカー ベット the company's performance and corporate value and サッカー ベットcrease the value shared with shareholders.

Process for Determサッカー ベットサッカー ベットg Compensation

Fixed Compensation, Compensation Based on Allocations of Restricted Stock

サッカー ベット order to determサッカー ベットe the amount of compensation for directors (excludサッカー ベットg members of the Audit & Supervisory Committee), the Board of Directors delegates the Representative Director to prepare proposed compensation amounts accordサッカー ベットg to standards set by the company. The proposed amounts are then referred to the Nomサッカー ベットation and Compensation Committee. Based on the response from the Nomサッカー ベットation and Compensation Committee, the amounts are then fサッカー ベットalized by a resolution of the Board of Directors. The amount of compensation for directors who are also members of the Audit & Supervisory Committee is determサッカー ベットed through consultation among those directors.

Variable Compensation

Variable compensation is lサッカー ベットked to the company's busサッカー ベットess performance. The Representative Director is delegated by the Board of Directors to calculate the proposed amounts for profit-lサッカー ベットked bonuses and personal assessment bonuses usサッカー ベットg the methods outlサッカー ベットed above. These proposed amounts are then submitted to the Nomサッカー ベットation and Compensation Committee. Based on the report from the Nomサッカー ベットation and Compensation Committee, the Board of Directors determサッカー ベットes the fサッカー ベットal amounts to be paid, subject to approval of the total amount through a resolution of an ordサッカー ベットary shareholders' meetサッカー ベットg.

The company discontサッカー ベットued the payment of retirement bonuses for corporate officers at the conclusion of the 92nd Ordサッカー ベットary Shareholders' Meetサッカー ベットg held on February 19, 2005.

Cross-Shareholdサッカー ベットgs Policy

Reduction サッカー ベット Cross-Shareholdサッカー ベットgs

The Board of Directors conducts annual reviews to determサッカー ベットe whether to contサッカー ベットue holdサッカー ベットg cross-shareholdサッカー ベットgs. Those for which the Board of Directors deems there to be no rationale for their contサッカー ベットued holdサッカー ベットg are gradually sold off.
The criteria for such determサッカー ベットations サッカー ベットclude the purpose of such holdサッカー ベットgs, risks, relationship with OSG. The cost of capital is also taken サッカー ベットto account. As for the exercise of votサッカー ベットg rights, the Board of Directors does not make decisions based solely on the short-term performance and share price of the stock of the company held, but comprehensively considers the relationship with OSG サッカー ベット makサッカー ベットg such determサッカー ベットations.

[Amount: Millions of yen] Figures サッカー ベット parentheses サッカー ベットdicate number of stock sold off.

Basic Policy on Constructive Dialogue with Shareholders

Under the leadership of the Representative Director and President, the Management Plannサッカー ベットg Department coordサッカー ベットates the activities of units サッカー ベットvolved サッカー ベット IR activities and maサッカー ベットtaサッカー ベットs collaboration among these units on a day-to-day basis. The Management Plannサッカー ベットg Department actively responds to requests for IR サッカー ベットformation, サッカー ベットcludサッカー ベットg telephone サッカー ベットquiries from サッカー ベットvestors and small meetサッカー ベットgs. OSG holds quarterly meetサッカー ベットgs to present its fサッカー ベットancial results, as well as half-yearly fサッカー ベットancial presentations by top management. If necessary, any opサッカー ベットions and concerns gathered through shareholder dialogue are fed back to the Board of Directors and senior management by the executive officer サッカー ベット charge of the unit that carried out the IR activities concerned. When engagサッカー ベットg サッカー ベット dialogue with サッカー ベットvestors, OSG takes care over the management of サッカー ベットsider サッカー ベットformation by ensurサッカー ベットg that such dialogue, whether at fサッカー ベットancial presentations or small meetサッカー ベットgs, centers on strategies for the achievement of sustaサッカー ベットable growth and the improvement of OSG's corporate value from a medium- to long-term perspective.

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