3.Specific Measures to Rectify Management Issues Related to Technology

*Written to correspond with issues specified in Article 2

3. 3.1 On 2.1.1 and 2.4.1
   1. 3.1.1 We aim for non-engineer personnel to bear the system development and operation costs, primarily for back-office systems, by utilizing generative AI and low-code/no-code in operations
   2. 3.1.2 We actively promote the appointment of foreign personnel. We establish development and creative bases overseas in addition to foreign nationals living in Japan and moving to Japan
   3. 3.1.3 Promotion of various measures to increase bilingual talent
      • We have implemented an external language learning program in 2022 for employees the company will pay for, in full, if they achieve a certain score
      • We have introduced a company system called 'Vanguard Unit' in 2021 where employees, mainly engineeers, are able to achieve language learning while working abroad
   4. 3.1.4 3.1.4 Promotion of talent development from the educational stage through initiatives such as endowed lectures at universities
      • Since 2022, we have been providing a programming course (with credit recognition) for international universities in Japan where a majority of the students are foreigners
4. 3.2 On 2.1.2
   1. 3.2.1 We conduct a comprehensive audit and verification of each data internally, such as the procedures at the time of system development changes and failure responses as well as management of accounts and development outsourcing companies, and confirm their accuracy on our major system platforms
   2. 3.2.2 We entrust vulnerability diagnosis to external experts for our main business areas. The results of the diagnosis are reported from the experts as a report, and based on the contents, we make any improvements appropriately and timely according to its urgency
5. 3.3 On 2.1.3
   1. 3.3.1 The management team, the technology office, the legal affairs office and the risk management office are in charge of preparing an environment to apply and try cutting-edge IT such as generative AI to services and operations, and promote proactive efforts at each department/team level
6. 3.4 On 2.1.4
   1. 3.4.1 Cultivation of development personnel who can increase business efficiency (DX) within the company
      • Internal education on requirement definitions and design
      • Internal education on advanced use of spreadsheet applications
      • Internal education on query languages for databases
      • Internal education on low-code/no-code tools
   2. 3.4.2 Creating an environment where employees, including engineers, can easily perform (e.g., designing evaluation systems that can evaluate administrators and professionals, implementing work from home, install high-quality equipment in the office, etc.)
      • Design of evaluation systems for both technology and management paths
      • Introduction of hybrid working structure, work from home
      • Proactive introduction of online collaboration tools
      • Creating an office environment where engineers can improve performance
      • Operation of a system to support engineers' technical study
        • Meister system
        • Various internal study groups and events
7. 3.5 On 2.2.3 and 2.3.1
   1. 3.5.1 We have many businesses (and associated systems) at varying stages and business phases. We maintain high internal quality by utilizing the knowledge from existing systems for systems of new businesses and subsystems of new functions added to existing businesses
   2. 3.5.2 We carry out system replacements and incorporate engineer-oriented procedures into product backlog while promoting the improvement of internal quality for long-running systems

4.Propulsion Framework

4. 4.1 Establishment of a company-wide technology team

   Our Technology Office is composed to support multiple businesses cross-sectionally. Currently, there are 34 engineers divided into eight teams. We are expanding members through the initiatives described in the measures mentioned above. As engineers compose about a quarter of the Group's employees, we balance this by flexibly utilizing external resources such as outsourcing while maintaining this ratio. We increase and strengthen the work force every year through recruitment and training. (information is as of June 2023)

5. 4.2 Establishment of a company-wide design team

   Our Design Office is composed to support multiple businesses in design and creative aspects. Currently, there are 9 designers across three teams. We are expanding members in line with the policy described in the specific measures mentioned above. (information is as of June 2023)

6. 4.3 Establishment of a company-wide DX points of contact

   The DX points of contact have the role of implementing more proactive DX in each business within the Group. Several people have been appointed since 2023

7. 4.4 Establishment of the Information Security Committee

   The Information Security Committee, with the risk management officer as the chairman, is composed of the officers in charge of each information system management office and the person in charge of the internal control office, and undertakes the promotion and management of information security measures as a company-wide organization. In addition, we have set up a secretariat to implement effective security measures and carries out adjustments to the implementation and planning of information security measures rapidly