2018-5-18

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 2017 to February 2018. 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 summary of results and analysis. 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
* Progress in the governance system from the previous year

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.

The Company has also confirmed the enhancement of corporate governance, particularly on issues the Company had improved last year.

On the other hand, there were opinions that further efforts and improvement would be possible for training for the Directors, and the management of the Advisory Committee, etc.

3. What should be done for the future

Based on the results of the analysis and evaluation described above, the Board of Directors will discuss training for the Directors, and the management and further use of the Advisory Committee for improvement and gain understanding from the Directors and Auditors.