Nomination, Appointment and Succession Plan

The establishment and implementation of the succession plan for the President and Representative Executive Officer is one of the most important tasks for the Nomination Committee.

The Company’s succession plan has two major characteristics. The first characteristic is that this plan is formulated by the Nomination Committee, of which the current President is not a member. The second characteristic is that, when selecting the next President, the Nomination Committee coordinates with the executive team to systematically cultivate candidates and select the successor over an extended period of time.

The Nomination Committee has formulated a six-year succession plan for selecting the next President. Training on the cultivation and selection process for this plan commenced in 2019.

The qualities required in the President include perseverance and passion in addition to other qualities expected of executives. Additional requirements are also defined based on the management circumstances at a given time. The final decision of who will become the next President is made by the Nomination Committee based on the degree to which the required qualities are possessed as well as on qualities

such as flexibility and growth potential as decided based on the extent to which the candidate grew before and after receiving coaching.

EBARA clarified the roles and qualification requirements for Directors, including those by classification and position. This is an extremely important guideline for the future activities of the Board of Directors, committees, and individual Directors. The Nomination Committee will select candidates who meet the requirements and will contribute to improving the effectiveness of the Board of Directors.