The senior management reports as appropriate to the Board of Directors on critical management issues and high-risk management challenges, thereby ensuring effective supervision over the senior management and directors. The Board of Directors has also appropriately built up the internal control system and risk management system, pursuant to the Companies Act and other relevant laws and regulations, while supervising the operation of those systems as appropriate by receiving reports from the Internal Control Department on its annual plan and operational status and giving necessary instructions. The Board of Directors meets once a month in principle.
The Board of Directors and executives recognize the medium-term management plan, which includes specific numerical targets such as sales, operating income, ROIC, and dividend payout ratio, as one of the commitments of shareholders, and work toward its realization. When the plan is not realized, the Board of Directors and executives analyze the reasons for this, provide an explanation to shareholders of the same, and then reflect such analysis in our plans for the terms thereafter.

The Board consists of nine directors (including three outside directors), including the Chairman of the Board, who is the chairman of the Board. Outside directors are responsible for supervising management from a standpoint independent of management and appropriately reflecting stakeholder perspectives.
We consider the balance of the expertise and experience (including management and business experience and experience in developing global business) of each director candidate, and diversity, among other factors, to be able to realize effective corporate governance by the Board of Directors.

The Board of Corporate Auditors comprises external corporate auditors and standing corporate auditors. External corporate auditors fulfill their responsibilities as a corporate auditor by taking advantage of their strong independence.
In addition, external corporate auditors and standing corporate auditors carry out highly effective audits by making use of their expertise and abundant experience in management and various fields.
They actively give their opinions to management at the Board of Directors and Executive & Operating Officers Meeting.

We consider the balance of the expertise and experience (including management and business experience) of each corporate auditor candidate, and diversity, among other factors, to be able to realize effective audits by the Board of Corporate Auditors.

We have the Selection and Nomination Committee with the aim of securing transparency and objectivity of the decision-making process in appointment and dismissal of directors and corporate auditors, CEO and other top executive succession planning.
This Committee deliberates and reports regarding nomination of director and corporate auditor candidates, the dismissal of directors and corporate auditors, appointment and removal of the representative director and directors with managerial positions, and CEO and other top executive succession planning, when it receives a request of the Board of Directors for findings.
When deliberating and reporting, we confirm the status of business execution by the CEO, etc. The Committee is held as needed. (Four meetings were held in FY2021)

This Committee consists of more than half of the members, including the chairman, independent external directors, and external statutory auditor who are observers who have the right to express their opinions on the content of the deliberations.

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We have the Compensation Committee with the aim of securing transparency and objectivity of the decision-making process for compensation of directors and executive officers.
This Committee deliberates and reports regarding the compensation programs and levels of directors and executive officers, when it receives a request of the Board of Directors for findings. In principle, this committee is held once a year, and also held as needed. ( 3 meetings were held in FY2021)

This Committee is chaired by an independent external director, and a majority of its members are independent officers comprising external directors and external corporate auditors.

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We have the Management Strategy Committee as an advisory organ that make more efficient and deepened discussions contributing to Chief Executive Officer's decision-making with regard to management strategic matters of our Group.
This Committee deliberates significant management strategies, business strategies and other matters to be brought before the Board of Directors meetings and similar important decision-making matters involving SHI and its Group and reports to the President. In principle, this committee is held once a month, and also held as needed.

The Committee is chaired by the President and consists of the President and directors and others appointed by the President.

We have the Executive & Operating Officers Committee in order to supervise the execution of business within our Group by sharing information on the execution of business by each member of our Group and important matters that may affect the business operation.
This Committee follows up management of consolidated business performance and management measures by communicating the states of business execution, matters resolved by the Board of Directors meetings and the important company-wide policies within our Group. In principle, this committee is held once a month.

The Executive & Operating Officers Committee is chaired by the President and consists of our executive directors, corporate auditors and executive officers, as well as executive and operating officers of each of the divisions of our Group in order to flexibly share information especially among the executive and operating officers.

We established the Sustainability Committee in March 2021 for the purpose of deliberating and monitoring sustainability issues from medium- to long-term perspective, and executing and driving Group-wide sustainability strategies.
This committee is chaired by the president (Member of the Board), composed of executive officers and executive officers of each business division.　In addition, outside directors attend the meeting to reflect external knowledge and experience in the committee's decision-making, and corporate auditors also attend the meeting as observers from the standpoint of auditing business execution.
This Committee deliberates policies, material issues, and measures relating to the promotion of sustainability, and reports to the Board of Directors.

This Committee is chaired by the President and consists of our directors, corporate auditors and executive officers, as well as executive and operating officers of each of the business units in order to broadly deliberate company-wide matters.

We have the Risk Management Committee for the purpose of promoting company-wide and comprehensive risk management through identification of potential risks that our Group may face in conducting business and proper management of risks that may have material effects on our Group.
This Committee deliberates matters relating to the formulation of risk management policy and the selection of critical risks and its responses, and reports to the Board of Directors.

In order to comprehensively deliberate risks of our Group with broad business areas from business operation, technical, and business management aspects.
This Committee is chaired by the President, and consists of officers in charge of internal control, officers in charge of finance, officers in charge of technology, and other related executive officers, and standing corporate auditors acting as observers.

We have the Compliance Committee to raise the trust of the society through compliance-based management practice and to promote compliance activities intended to improve corporate value of the Group as a whole.
The Compliance Committee deliberates basic compliance policy and what actions to take in case of the occurrence of any problem, and other compliance promotion plans, and reports to the Board of Directors.

In order to multifacetedly deliberate an ideal style of management given legal and ethical viewpoints and what actions to take in case of the occurrence of any problem contrary to such style of management in broad business areas of our Group, the Compliance Committee is chaired by the President, and consists of officers in charge of internal control, officers in charge of legal affairs, officers in charge of technology, and other related executive officers, and standing corporate auditors acting as observers.