​ ​1. the purpose​ ​

This basic policy is to provide stakeholders such as shareholders, customers, business partners, creditors, local communities, employees, etc. by defining basic matters concerning corporate governance at Kawata Co., Ltd. (hereinafter referred to as "the Company") In addition to fulfilling our social responsibilities, we aim to realize sustainable growth of our company and enhancement of corporate value. Establishment, revision and abolition of this basic policy will be held at the Company's Board of Directors and disclosed on our website every time.

​ ​2. Basic approach to corporate governance​ ​

We positioned the maximization of shareholder profit by realizing fair and highly transparent corporate governance as a priority issue of management and stated that "Quality is important as well as sales and accounting and management are inevitable", "prompt Decisions and execution ", while emphasizing" control environment "while setting a small number of directors, the top management Management Policy We will ensure that all employees of the Group have strong awareness of compliance. Also, we will strive to communicate information on management risk from the initial stage to the top management in a timely manner.

​ ​1. Outline of Corporate Governance System​ ​

At the Board of Directors, the Board of Directors makes important management decisions and oversight of business execution, and as appropriate from outside directors independent from management and external experts point out and advice as necessary so that management will not be conducted solely by the company's own logic We will set up a system that you can do. In addition, by adopting "company with audit committee, etc." as the institutional design under the Companies Act, the Audit Committee utilizes the internal control system etc. to conduct legality audits such as the execution of duties by directors, Perform validity audit. The Board of Directors promptly makes decisions on management, introduces the executive officer system, and the executive officers appointed at the Board of Directors execute the day-to-day operations of departments in charge. In consideration of importance, directors concurrently serve as directors and corporate auditors of group companies and by conducting adequate investigation and oversight of each company's site, it is possible to enhance the effectiveness and efficiency of management of the entire group and trust the financial reporting of each company We will strive to secure sex and to continuously improve the awareness of compliance among all employees.

​ ​2. Board of directors · Director​ ​

(1) Role

取締役会は、法令、定款及び当社関連規程の定めるところにより、経営戦略、経営計画、中期経営計画、資本政策、最高経営責任者（代表取締役社長）の後継者候補の育成、その他当社の経営の重要な意思決定及び業務執行の監督を行う。また、業務執行に係る意思決定を迅速に行うため、上記事項を除き、業務執行に係る権限の多くを各業務を担当する執行役員に委任する。

(2) Overall composition

The Board of Directors shall be composed of persons who have various knowledge, experience and ability among those who can fulfill the obligations required of the directors and also consider diversity based on the company size of the company. Moreover, opinions of people with high insight and abundant experience, such as corporate managers and academics experts outside the company, Management Policy In order to properly reflect this, we will appoint two or more Independent Outside Directors. In accordance with the provisions of the Company's Articles of Incorporation, the number of directors (excluding those who are members of the audit committee) shall be within eight and the number of directors who are the members of the audit shall not exceed five.

(3) election and election

1. Directors shall be appointed at the general meeting of shareholders by distinguishing between directors who are members of the audit committee and directors who are not auditing members. With regard to candidates for directors who are not members of the audit, etc., we appoint those who have knowledge and experience that can accurately, fairly and efficiently carry out management of the Company and have sufficient social credibility. Regarding candidates for directors who are members of the Audit Committee, in order to fully demonstrate the supervisory function, they have high insight in any field such as corporate management, risk management, compliance with laws and regulations, internal control, corporate ethics, management quality, global management We have appointed persons who have extensive experience and who can actively express their opinions from a fair perspective and decide separately Unaffiliated Director Independence Standards In accordance with the Company's opinion, we will report to the Tokyo Stock Exchange Co., Ltd. an independent officer of those who are deemed to be independent from the management of the Company.
2. The Board of Directors shall appoint a person who is familiar with the business of the company and is capable of fulfilling its duties as executive officers.
3. Regarding the appointment of candidates for directors and executive officers, after discussion from the viewpoint of eligibility by the CEO (President and Representative Director), the directors who are members of the Audit Committee and the independent outside director, the resolution is made at the Board of Directors . Regarding candidates for directors, the reasons for their appointment shall be stated in the general meeting of shareholders meeting.
4. In the election and dismissal of the CEO (president and CEO), according to objectivity, timeliness and transparency procedures, the Board of Directors will make a resolution after adequate deliberation and disclose the reason for the election.
5. In the event that a director or executive officer in his / her term of office conducts acts contrary to public order and morals, in the event of difficulty in continuing duties for health reasons, if the corporate value is severely impaired due to lack of duty, Others In the event that special reasons arise, we will decide to dismiss at the Board of Directors in accordance with objective, timely and transparent procedures, and disclose the reasons.
6. In summarizing the above 3 to 5 to the Board of Directors, we will establish a place for preliminary consultation with the directors who are members of the Audit, etc. and independent outside directors, and we will keep records and fully respect the opinions.

(4) Term of office

監査等委員でない取締役の任期は、選任後１年以内に終了する事業年度のうち最終のものに関する定時株主総会の終結の時までとする。監査等委員である取締役の任期は、選任後２年以内に終了する事業年度のうち最終のものに関する定時株主総会終結の時までとする。なお、独立役員については、独立性確保の観点から、在任期間の上限を８年（任期中に８年に達した場合は、その任期満了時までとする。）とする。

(5) Concurrent position

In cases where a director concurrently serves as an officer other than the Company, it shall be limited to the extent that it is possible for the director to perform the duty of care and faithful obligation as a prudent manager. Also disclose annual status of important concurrent posts.

(6) Evaluation of effectiveness

The directors make self-evaluations annually on the effectiveness of the Board of Directors, their performance as directors, and submit the results to the Board of Directors. Based on the self-evaluation of each director, the Board of Directors analyzes and evaluates the effectiveness of the entire board of directors annually and discloses the outline of the results in a timely and appropriate manner.

​ ​3. Audit Committee​ ​

(1) Role

Audit, etc. The committee conducts the duties of the directors, executes the duties of the directors, exercises the duties of the Company and its subsidiaries, etc. by requesting reports of business to the Company and its subsidiaries based on laws and ordinances, investigating the status of business and property, Perform audits on the internal control system, performance, financial situation, etc., and report the results to the shareholders.

(2) Overall composition

The Audit Committee shall include a person who has appropriate knowledge concerning finance and accounting, constitute a majority of the number of members by outside directors, and select full-time audit committee by resolution of the Audit Committee.

(3) Cooperation with Internal Audit Department · Accounting Auditor

In order to ensure the adequacy of the audit, the Audit Committee will work with the Internal Audit Division and the Accounting Auditor in an effective and cooperative manner.

​ ​Four. Executive remuneration​ ​

(1) Policies and Procedures

1. In deciding the remuneration for directors of the Company, the basic policy is as follows.​ ​
   
   • Ensure "transparency", "fairness" and "objectivity" for executive remuneration.
   • Regarding the annual amount of directors' compensation, the maximum amount of the total amount will be determined at a general meeting of shareholders by distinguishing between directors who are not Audit and Supervisory Committee Members and directors who are Audit and Supervisory Committee Members.
   • For directors who are not Audit and Supervisory Committee members, we will strengthen incentives for performance improvement by linking part of the executive compensation to performance.
   • When determining the amount of individual compensation, etc., based on the internal rules that take into account each job position, etc., surveys on the level of compensation etc. of other companies to be appropriately compared, and the compensation of domestic business owners by third parties, etc. Judge the appropriateness of the amount of remuneration etc. while referring to In this case, the compensation etc. of other officers and employees in the Company and the compensation etc. of officers and employees in other companies within the Group are also taken into consideration.
   • All directors can voluntarily join and leave the executive shareholding association, and the enrollee contributes a certain amount of the monthly remuneration to the acquisition of the Company's shares. This will allow some of the rewards to lead to medium- to long-term incentives.
2. The system for remuneration of directors and executive officers and the amount of individual remuneration will be deliberated by the Chief Executive Officer (President), directors who are Audit and Supervisory Committee members and independent outside directors, and then resolved by the Board of Directors. .. When submitting a meeting to the Board of Directors, we shall set up a forum for prior discussions with Directors who are Audit and Supervisory Committee Members and independent outside directors, keep records, and fully respect their opinions.

(2) Remuneration of directors and executive officers who are not members of the audit etc.

In order to function as one of the sound incentives for sustainable growth, the remuneration of directors who are not Audit and Supervisory Committee members will be fixed and fixed in addition to performance-based remuneration and performance-based stock remuneration that reflect performance evaluations. Configure. The remuneration of executive officers consists of fixed fixed remuneration and performance-linked remuneration that reflects performance evaluation.

(3) Remuneration of directors who are members of the audit etc.

監査等委員である取締役の報酬は、内規に基づく定額の固定報酬のみで構成する。報酬額は、監査等委員である取締役の役割・職務の内容を勘案し、監査等委員会での協議により決定する。

​ ​Five. training​ ​

We will provide the directors with the opportunity to acquire the necessary knowledge on our business, financial affairs and organization at the time of office and to fully appreciate the roles and obligations required of the directors. Also, for the purpose of ongoing renewal, we will provide opportunities for training that are appropriate for individual directors, provide mediation and support expenses for directors who are in office.

​ ​1. policy​ ​

The Company will work on improving the environment for appropriate exercise of rights so that the rights and equality of shareholders are substantially secured. Also, in order to contribute to sustainable growth of the Company and improvement of corporate value over the medium to long term, we will establish a system to conduct constructive dialogue with shareholders even at places other than shareholders meetings.

​ ​2. General meeting of shareholders​ ​

(1) Basic idea

The Company recognizes that the general meeting of shareholders is the Company's highest decision-making body and that it is an important place to conduct constructive dialogue with shareholders, and the intention of shareholders is appropriately reflected in the Company's management So, we will develop a sufficient environment based on the attributes of shareholders.

(2) Provision of information

We will make efforts to dispatch convocation notice at an early stage so that shareholders can secure sufficient examination time for the bill of the General Assembly and make an announcement by electronic means such as posting the contents on our website before sending the convocation notification.

(3) Schedule

As many shareholders attend the general meeting of shareholders, we will endeavor to properly set the date of general meeting of shareholders in order to realize constructive dialogue with shareholders.

(4) Analysis of votes against the bill

When the opposition vote exceeds 20% in the proposal of the shareholders' meeting proposed by the company, the Company analyzes the reason for the opposition and the reason why many votes have been increased, and the board of directors will consider the correspondence.

​ ​3. Dialogue with shareholders​ ​

(1) Basic idea

当社は、ＩＲ担当取締役を筆頭にＩＲ活動を実施する。ＩＲ活動を通じ、株主・投資家等に対し、経営戦略及び財務・業績状況等に関する情報を適時・適切に開示するとともに、株主・投資家等との対話を充実させる。資本コストを意識し、当社の経営戦略等を的確に理解していただけるよう努めることで、株主・投資家等からの信頼と適切な評価を得ることを目指す。また、当社は、ＩＲ活動を通じて収集した有用な意見、要望について、取締役会やその他重要会議にフィードバックし、企業価値の向上に役立てる。

(2) IR Policy

We will formulate the policy as an IR policy to realize the basic idea defined above and disclose it on our website.

​ ​Four. Policy holding stock​ ​

(1) Basic idea

The Company holds shares holding policy objectives such as maintaining and developing smooth business relationships, strengthening relationships through business tie-ups, and other important objectives in terms of management strategy, for purposes other than those for net investment purposes. In addition, if the Company indicates the intention of selling, etc. from the company holding the shares of the Company, it does not prevent the sale etc. by suggesting a reduction of the transaction etc.

(2) Confirming possession status and verifying suitability of ownership

政策保有株式について、中長期的な経済合理性や将来の見通し等を検証の上、その保有の目的・合理性について取締役会で毎年検証を行い、その内容を開示する。また、継続して保有する必要が無いと判断した株式は、売却を進める等、政策保有株式の縮減に努める。

(3) Exercise of voting rights

Regarding the exercise of voting rights of policy holding stocks, there are cases where there is a possibility of damaging the Company's corporate value, cases where the shareholder value of the issuing company is greatly impaired or serious concern concerning corporate governance arises Exercise voting rights in a direction to make the best use of relationship strengthening with business partners. Specifically, we disclose the voting right exercise standards decided by the Board of Directors on our website, appropriately respond to these standards, and report the results annually by the Board of Directors.

​ ​Five. Related party transactions​ ​

(1) Transaction between the company and the directors

In conducting competitive transactions and conflict of interest transactions prescribed by laws and regulations with the directors, we will obtain approval by the Board of Directors. Also, when conducting such transactions, we will properly disclose the important facts as required by law.

(2) Insider trading

In order to prevent trading by insiders of the Company etc. by the parties concerned of the Company, the Company establishes matters to be complied with regarding important fact management, trading of the Company's shares etc. by executives and employees, and strictly administers it.

​ ​1. policy​ ​

In order to maintain our sustainable growth and improve our corporate value over the medium to long term, we have established a good relationship with stakeholders such as shareholders, customers, business partners, creditors, local communities, employees, Try to work properly.

​ ​2. Management philosophy​ ​

Our company " Site Go to Physical phenomenon Then, Principle and principle "As a specialist of labor-saving equipment at the product manufacturing site with powdered and granular materials including plastics," high-quality, match the needs of customers, competitors We will contribute to society by delivering the only one product that does not allow follow-up ".

​ ​3. Code of conduct​ ​

In order to realize the above management philosophy and ensure cooperation with stakeholders, Group Activity Guidelines , "Environmental policy" to comply with, practice.

​ ​Four. Responding to issues surrounding environmental issues and other sustainability issues​ ​

We will respond appropriately to issues surrounding environmental issues and other sustainability issues (sustainability), and report the status of response to the issues as appropriate to the Board of Directors.

​ ​Five. Securing diversity of human resources​ ​

The Company provides an environment that enables everyone to continue active without discriminating officers and employees from nationality, race, ethnicity, creed, religion, gender, age, etc. and ensures diversity of human resources I try to do.

​ ​6. Internal reporting system​ ​

The Company establishes internal notification windows independent from management, establishes and operates regulations concerning concealment and disadvantage handling of informants.

​ ​7. Information disclosure​ ​

In accordance with the Company Law, the Financial Instruments and Exchange Law and the regulations established by the Tokyo Stock Exchange, etc., the Company will timely and appropriately disclose financial and material facts. In addition to deciding our policy regarding risk management of the corporate group, internal control system, compliance with laws and regulations, Management Policy , Medium-Term Management Plan , Capital policy, etc., in a timely and appropriate manner. In disclosing information, we make it easy for users to understand, and also try to provide in English in reasonable scope.