BASIC POLICY ON CORPORATE GOVERNANCE

To realize its management philosophy, “Contribution to the society through MONOZUKURI,” RHYTHM SHOEI CO., LTD. (the “Company”) is taking steps to strengthen its corporate governance through such means as ensuring the transparency and soundness of the Company’s management and improving its internal control systems.

CORPORATE GOVERNANCE SYSTEM

The Board of Directors is responsible for decision-making regarding the Company’s material business execution and supervises individual Directors in order to achieve sustainable growth and improve corporate value over the medium to long term.