Teijin has adopted and will continue to adopt appropriate mechanisms for corporate governance, from time to time. Accordingly, Teijin will review the mechanisms yearly and such changes shall be made in accordance with changes in the social and legal environment.

1. 1.Roles of the Board of Directors

   The main goal of Teijin's Board of Directors is to maximize shareholder value each fiscal year and over the medium and long-term. At the same time, it must pay close attention to the position of the stakeholders other than the shareholders. The Board of Directors must also deliberate, determine, and approve any management policies, and the overall plans of the entire Teijin Group, and any other items required by law or other regulations. Furthermore, the Board of Directors is responsible for ensuring accountability. It must also clarify its policies on compliance and how to manage risks surrounding the Company, and supervise those implementations.

2. 2.Composition and Chair of the Board of Directors
   1. (1)The Company shall have not more than ten Directors and four or more of them shall be outside Directors.
   2. (2)The Chairperson ("Chairperson") and President are appointed from the internal Directors, and the President also serves as CEO (President shall be hereinafter called "CEO"). Other internal Directors may, in principle, hold concurrent posts as chief officers.
   3. (3)The outside Directors must satisfy the Independent Director Requirements, to be stipulated separately.
   4. (4)As a part of the separation of monitoring and control functions, and business execution, a chair of the Board of Directors is selected from an outside director.
3. 3.Position of Chairperson

   The Chairperson will not engage in any executive activity of the Company's business and will not be nominated as a Representative Director unless otherwise necessary.

4. 4.Representative Director

   In principle, the Company shall have not more than three Representative Directors including the CEO.

5. 5.Term of Office of Directors

   The term of office of Directors shall be one year. Nothing shall prevent the reelection of the current Directors (including outside Directors), unless disqualified by age and others limits to be determined separately.

1. 1.Nomination Advisory Committee and Compensation Advisory Committee as consultative bodies

   The Company shall establish and manage the Nomination Advisory Committee and the Compensation Advisory Committee, as consultative bodies of the Board of Directors to further enhance the transparency concerning the appointment of directors and officers. Both committees shall have a function to make proposals and recommendations to the Board of Directors with respect to the nomination, evaluation and amount of compensation of all Directors and the Senior Management and the nomination of Statutory Auditors, and the Board of Directors shall fully respect and take into account the relevant proposals and recommendations and make decisions.

2. 2.Composition and Committee Chair
   1. (1)The Advisory Committees shall be composed of all outside Directors, the Chairperson and CEO respectively. In the case of absence of the Chairperson of the board, the outside directors and CEO are made up.
   2. (2)The Advisory Committee Chair shall be appointed from outside Directors.
3. 3.Contents of meeting

   Both of the Advisory Committees shall deliberate the following items with respect to nominations and compensation based on CEO's proposals.

1. 1.Advisory Board as Consultative Body

   The Board of Directors will establish the Advisory Board, mainly consisting of well-experienced persons from inside and outside Japan, and will obtain advice aimed at a "more improved the quality of management." While the Advisory Board itself has no power to make decisions, it has the authority to give advice to the Board of Directors. The Board of Directors makes decisions by taking into account such advice.

2. 2.Composition and Chair of the Advisory Board
   1. (1)The Advisory Board is composed of outside advisors, the Chairperson and CEO.
   2. (2)External Advisors will be around five to seven, including two or three non-Japanese advisors. All Independent Outside Directors shall be External Advisors. Also, such External Advisors shall hold the same qualifications as Independent Outside Directors, set up in the Regulations of Independent Outside Directors.
   3. (3)The outside director, who serves as chair of the Board of Directors, will chair the Advisory Board.
3. 3.Frequency and Contents of Meeting
   1. (1)The Advisory Board's ordinary meetings shall be held twice a year.
   2. (2)The Advisory Board shall deliberate the following items from a broad, long-term perspective.
      1. (a)Strategies for important company issues (Portfolio strategy, human capital strategy, etc.);
      2. (b)Corporate governance, CSR and corporate ethics;
      3. (c)Business performance of the Company;
      4. (d)Politics, economy and legislation inside and outside Japan; and
      5. (e)Other matters concerning management in general.

1. 1.Board of Statutory Auditors
   1. (1)Roles of the Board of Statutory Auditors

      The Board of Statutory Auditors monitors and audits the management. All Statutory Auditors shall attend the Board of Directors meeting and important internal meetings and express their opinions, make proposals and give advice.

   2. (2)Composition of the Board of Statutory Auditors
      1. (a)There shall be, in principle, five Statutory Auditors, and the majority shall be outside Statutory  Auditors to secure transparency of the Board.
      2. (b)From an auditing perspective, it is important to use full-time Statutory Auditors, who are familiar with the Company's internal matters.
      3. (c)Outside Statutory Auditors must satisfy the requirements of independent statutory auditors, to be stipulated separately. Outside Statutory Auditors are selected by taking into consideration of the balance in the Board of Statutory Auditors and their specialties.
   3. (3)Nomination of Statutory Auditors

      The Board of Statutory Auditors shall make a proposal or give prior consent in determining the candidates of Statutory Auditors. The four-year statutory term of office of the Statutory Auditors shall be respected.

2. 2.Committee of Teijin Group Statutory Auditors
   1. (1)Roles of the Committee of Teijin Group Statutory Auditors
      1. (a)The Committee of Teijin Group Statutory Auditors will be responsible for monitoring and auditing the entire Teijin Group which correspond to Group consolidated management. The Committee of Teijin Group Statutory Auditors will, among others, deliberate and ensure the basic policy for auditing and the selection of key auditing items of each business based on Teijin Group basic auditing policy and plan to be decided by The Board of Statutory Auditors of the Company.
      2. (b)The Committee of Teijin Group Statutory Auditors will share information among them in its ordinary meetings and enhance the performance level of auditing through the members' mutual study.
   2. (2)Composition of the Committee of Teijin Group Statutory Auditors

      The Committee of Teijin Group Statutory Auditors is, in principle, composed of Teijin's Statutory Auditors, full-time Statutory Auditors of the Teijin Group Companies and members of Group Auditors Office of the Company.

   3. (3)Overseas Teijin Group Companies

      Internal audit performed by Corporate Audit Department shall be the major part of audit to overseas Teijin Group Company. Accounting audit shall be performed by outside auditing firm ("Auditing Firm"). Teijin's Statutory Auditors and members of Group Auditors Office will audit these companies from time to time in accordance with an audit plan.

3. 3.Relations among the Board of Statutory Auditors, the Committee of Teijin Group Statutory Auditors and other Auditing Entity
   1. (1)The Board of Statutory Auditors and the Committee of Teijin Group Statutory Auditors shall strengthen close relationships with Auditing Firms of Teijin and Group Companies. The Board of Statutory Auditors shall in principle initiate in the appointment and change of Auditing Firm.
   2. (2)The Board of Statutory Auditors and the Committee of Teijin Group Statutory Auditors shall strengthen close relationships with the Corporate Audit Department to obtain internal audit information on a permanent and overall basis.

1. 1.Basic principles of Compliance

   Basic principles of compliance to be observed to achieve corporate governance are stated below:

1. 2.Internal Control and Compliance Systems

   Compliance, including corporate ethics, is an important part that supports internal control. The Group aims to be a corporate group that maintains a high level of corporate ethics.

2. 3.Full Awareness of Code of Conduct and Related Regulations

   The compliance principles are based on the "Code of Conduct". Teijin's Board of Directors will review the "Code of Conduct" and other related regulations, from time to time. In reviewing the above, they will consider compliance issues, risk management and the responsibilities for any stakeholders, and ensure that they are passed down to all the companies, officers and employees of the Teijin Group.

1. 1.Principles of Total Risk Management

   Risk management, as well as compliance, is a key to supporting internal control. A total risk management (TRM) system is established as a comprehensive system that covers the entire management of the Teijin Group. The TRM is positioned as a preventive measure against the uncertainty that the Company may face, and its basic principles are stated as follows:

1. 2.Policies and Operation
   1. (1)To promote TRM, the Chief Sustainability Officer is assigned in charge of operational risk, while CEO is directly in charge of strategic risk.
   2. (2)Total Risk Management Committee ("TRM Committee") is established under the Board of Directors, to manage both operational and strategic risks in an integrated manner.
   3. (3)CEO chairs "TRM Committee", committee members are Chief Sustainability Officer and other persons assigned by CEO.
   4. (4)The Board of Directors deliberates and decides the basic policy and annual plan related to TRM proposed by "TRM Committee", as well as manages major risks for the Teijin Group, and establishes a system for business continuity.
2. 3.Audit by Statutory Auditors

   The Statutory Auditors Conducts audits to check whether the Board of Directors is appropriately conducting policy decisions, supervising and monitoring regarding TRM.

The accountability of the Company is an integral part of corporate activities for the business to prosper and enhance shareholder value. The Company should clearly present its mission and vision and present a clear explanation of the corporate governance mechanisms on every occasion. Furthermore, compliance policies and Total Risk Management must be instilled into the entire Teijin Group. Teijin Group behaves as a Company that takes requests from shareholders and society into consideration in order to achieve a higher degree of accountability.

1. 1.In disclosing information, the basic policy is to disclose the same contents inside and outside Japan simultaneously.
2. 2.In addition to disclosing the financial information that is legally stipulated, the Company will proactively disclose corporate information from the standpoint of ESG.
3. 3.Information disclosure and communication with shareholders and investors shall primarily be conducted by the Corporate Communication Department under the supervision of the Chief Officer (Corporate Strategy).
4. 4.Corporate Communication Department shall centrally manage information disclosure to shareholders and investors, along with providing external disclosure of medium- to long-term management strategies and other important matters of business in close coordination with the relevant internal departments and offices.