Sakai Chemical Industry Co., Ltd. will strive to enhance corporate governance in accordance with the following basic policy.

Ensuring shareholder rights and equality

1. The Company will take appropriate measures to ensure that the rights of shareholders are substantially secured, and will maintain an environment in which shareholders can properly exercise their rights.
2. The Company will ensure substantial equality of shareholders.
3. The Company will give due consideration to minority shareholders and foreign shareholders to ensure that there are no challenges or concerns regarding the substantive rights of shareholders, the environment for the exercise of rights, and substantive equality.

Appropriate collaboration with stakeholders other than shareholders

1. We fully recognize that the company's sustainable growth and the creation of medium- to long-term corporate value are the result of the provision of resources and contributions by various stakeholders, including employees, customers, business partners, creditors, and local communities, and we will work appropriately with these stakeholders.
2. The Board of Directors and Executive Officers shall strive to exercise leadership in fostering a corporate culture and climate that respects the rights and positions of these stakeholders and sound business ethics.

Ensure appropriate disclosure and transparency

1. We will disclose financial information such as the company's financial position and operating results, and non-financial information such as management strategies, management issues, and information related to risks and governance, in accordance with laws and regulations, and will also proactively work to provide information other than that required by laws and regulations.
2. The Board of Directors of the Company shall endeavor to ensure that the information it discloses and provides is accurate, easy for users to understand, and highly useful, taking into consideration that the information it discloses and provides is also the basis for a constructive dialogue with shareholders.

Responsibilities of the Board of Directors

Based on its fiduciary responsibility and accountability to shareholders, the Board of Directors of the Company will appropriately fulfill its roles and responsibilities, including the following, in order to promote the Company's sustainable growth and medium- to long-term corporate value and improve profitability, capital efficiency, etc.

1. Provide major direction for corporate strategy, etc.
2. Create an environment that allows executive officers to take appropriate risks
3. Provide highly effective supervision of executive officers and directors from an independent and objective standpoint

Dialogue with Shareholders

1. In order to contribute to its sustainable growth and medium- to long-term enhancement of corporate value, the Company will engage in constructive dialogue with its shareholders outside of the general meeting of shareholders.
2. Executive officers and directors will listen to shareholders through dialogue and pay due attention to their interests and concerns, explain their own management policies clearly and in an easy-to-understand manner to shareholders to gain their understanding, and strive for a balanced understanding of the position of stakeholders, including shareholders, and appropriate responses based on such understanding.

Created December 9, 2015
Revised July 21, 2017
Revised March 22, 2019
Revised December 1, 2021