A distinctive feature of Toyota Tsusho's corporate governance is that the president & CEO bears ultimate responsibility for execution, while the non-executive chairman and vice chairman focus on supervising, advising, and supporting the executive team in close cooperation with outside members of the Board. As chairman of the Board, which, like the Audit & Supervisory Board, is highly diverse in terms of background, knowledge, and experience, I try to ensure that our discussions embrace diverse perspectives by encouraging the outside members of the Board to make proactive recommendations based on their diverse knowledge and experience and, where appropriate, to offer constructive criticism of management. Another feature of our company is that we also provide frequent opportunities for dialogue between members of the Board and our executive team outside of the framework of Board of Directors meetings.

When evaluating the effectiveness of the Board of Directors meetings for the fiscal year ended March 31, 2025, in addition to using a questionnaire, we incorporated an individual interview process for outside members of the Board and Audit & Supervisory Board. This allowed matters to be raised from diverse perspectives and opinions to be expressed more fully and honestly. We aim to improve the effectiveness of the Board of Directors meetings by responding to the challenges identified. In addition to matters raised in the effectiveness evaluation, however, we will also act on opinions expressed by outside members of the Board throughout the fiscal year, thus achieving continuous improvement that will enable the Board of Directors meetings to better fulfill its functions.

Over the past two years, the most important matter for the Executive Appointment Committee, on which outside members of the Board are the majority, has naturally been the selection of the new president & CEO. After identifying and prioritizing the requirements for a future president & CEO of Toyota Tsusho, the committee discussed a list of candidates at length with reference to an external third-party evaluation of each individual. The current uncertain business environment makes it increasingly difficult not only to predict the future but also, at times, to see what lies around the next corner. To respond to this climate, I confidently expect to see the new president & CEO demonstrating not only the transformative and decision-making capabilities to carve out a new future for the company but also the leadership skills to head up a diverse management team based on an awareness of his own strengths and weaknesses.

As chairman of the Board, I am committed to evolving our governance going forward from a range of perspectives. This will mean appreciating the diverse perspectives of our various stakeholders, including shareholders, business partners, local communities, and employees, while also continuing open and frank discussions with the members of the Board and Audit & Supervisory Board toward our shared goal of improving the corporate value of Toyota Tsusho. By working through the Board of Directors meetings to supervise, guide, and support them, I will equally collaborate with the new executive team led by President & CEO Toshimitsu Imai in all-out efforts to make Toyota Tsusho a better company. I look forward to receiving your understanding and support.