2017-5-18

Summary of Evaluation Results on the Effectiveness of the Board of Directors

Based on its Basic Corporate Governance Policy, Tokyo Seimitsu has discussed and evaluated the effectiveness of the Company’s Board of Directors from April 2016 to Feb. 2017. A summary of the results of this evaluation is provided below.

1. Method of evaluation

The Company conducted a questionnaire survey for all the Corporate Directors and Auditors regarding the following items, and compiled the analysis results. Through discussions on the results among the Inside Directors, and Outside Directors, and at a meeting of the Board of Directors, the Company conducted an evaluation regarding the effectiveness of the Board of Directors and discussed what should be done for the future.

The Company asked an external organization to prepare the questionnaire, and summarize and analyze its results to ensure transparency and effectiveness.

【Questionnaire items】
*Roles and function of the Board of Directors
*Constitution and scale of the Board of Directors
*Management of the Board of Directors
*Cooperation with auditing organizations
*Communication with management
*Relationship with shareholders and investors

2. Results of analysis and evaluation on the effectiveness of the Board of Directors

The Company has concluded that the constitution of the Board of Directors is appropriate both in number and diversity in experience and specialty, and that the Board of Directors appropriately fulfill its roles of making decisions on important issues such as basic management policy and strategy, and of monitoring and overseeing the performance of duties by the Directors through the appropriate procedure at meetings, and thus function effectively.

Meanwhile, there were opinions that evaluation obtain from shareholders and investors on the Company should be shared at a meeting of the Board of Directors, and that further improvement is still possible for training for the Directors, etc.

3. What should be done for the future

Based on the results of the analysis and evaluation descried above, the Board of Directors will strive to obtain evaluation from shareholders and investors on the Company and share it at a meeting of the Board of Directors, and improve training for the Directors.