Corporate Governance

Corporate Governance

Corporate Governance

Corporate governance
Basic concept

Funai Soken Holdings Inc.(Hereinafter referred to as "the Company") strives to strengthen corporate governance with the primary objectives of implementing compliant management and maximizing shareholder value.
Furthermore, we consider proactive disclosure to be a crucial pillar of our corporate governance. Through disclosures based on laws and regulations, holding company briefings, and conducting individual meetings with institutional investors and analysts, we strive for prompt and accurate disclosure not only of our current situation and our group's business strategies but also of our future business strategies.

Our Corporate
Governance structure (schematic diagram)

Corporate Governance Report

Our corporate governance system and initiatives are explained in detail in the document below.

Board composition and officer skills matrix

	Directors						Directors who are members of the Audit and Supervisory Committee
	President Group CEO	Directors Executive Officer	Directors Executive Officer	Directors	Directors	Directors	Directors (Audit and Supervisory Committee Member)	Directors (Audit and Supervisory Committee Member)	Directors (Audit and Supervisory Committee Member)
				External/Independent	External/Independent	External/Independent	External/Independent	External/Independent	External/Independent
	Takayuki Nakatani	Kyohei Deguchi	Motoki Haruta	Nobuyuki Isagawa	Taeko Yamamoto	Tomomi Murakami	Nobuko Nakajima	Atsushi Nakao	Yasumasa Sakamoto
	Takayuki Nakatani	Kyohei Deguchi	Motoki Haruta	Nobuyuki Isagawa	Taeko Yamamoto	Tomomi Murakami	Nobuko Nakajima	Atsushi Nakao	Yasumasa Sakamoto
date of birth	August 16, 1968	February 6, 1977	June 9, 1980	December 8, 1966	October 1, 1964	January 23, 1968	April 5, 1975	December 21, 1969	December 21, 1981
Length of service as a director(To be held in March 2026)Shareholders meetings(At the time of signing)	6	(Newly appointed directors)	2	10	3	3	1	10	(Newly appointed directors)
Number of shares owned	388,640	68,400	28,640	0	0	0	0	0	0
Attendance status
board of directorsNumber of attendances / Number of events held (attendance rate)	13/13(100%)	-	13/13(100%)	13/13(100%)	12/13(92%)	13/13(100%)	10/10(100%) ※1	13/13(100%)	-
Audit and Supervisory CommitteeNumber of attendances / Number of events held (attendance rate)	-	-	-	-	-	-	10/10(100%) ※1	13/13(100%)	- (Newly appointed directors)
nominating committee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)			○ 6/6(100%)	● 6/6(100%)		○ 6/6(100%)	○ 6/6(100%)		○ Assuming office in March 2026 *4
Successor Nomination Committee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)			○ 1/1(100%)	● 1/1(100%)		○ 1/1(100%)	○ 1/1(100%)		○ Assuming office in March 2026 *4
remuneration committee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)		○ Assuming office in March 2026 *3	○ 7/7(100%)	○ 7/7(100%)	○ 7/7(100%)			● 7/7(100%)
Governance Committee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)				○ 4/4(100%)	○ 4/4(100%)	○ 4/4(100%)	○ 3/3(100%)※2	○ 4/4(100%)	● Assuming office in March 2026 *4
Sustainabilitycommittee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)	○ 4/4(100%)		○ 4/4(100%)	○ 4/4(100%)		● 4/4(100%)
AX Promotion Committee *5 ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)	○ 6/6(100%)	○ Assuming office in March 2026			● 6/6(100%)
Risk Management Committee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)	○※6	● Appointment in March 2026 *3	○※6				○ 6/6(100%)※2
internal control committee ●: Chairperson ○: Committee member Number of attendances / Number of events held (attendance rate)	● 2/2(100%)	○ Appointment in March 2026 *3	○ 2/2(100%)				○ 2/2(100%)
skill
Corporate Management	●	●	●		●			●
Sales and Marketing	●	●			●
Human Capital Management	●		●	●		●		●
Finance			●	●				●
Compliance and Risk Management		●		●		●	●		●
Governance and Audit			●	●		●	●	●	●
IT/DX		●			●
HR		●			●				●

*Attendance rates are based on the period from January 1, 2024 to December 31, 2024.
*1. This record shows attendance since the appointment as a director on March 29, 2025.
※２．Nobuko NakajimaThis document details his attendance at meetings of the Governance Committee and the Compensation Committee held after his appointment as a member of both committees on March 29, 2025.
*3. The attendance rate of the previous executive officer, Tatsuro Ono (who will retire as Managing Director in March 2026), was 7/7 (100%) for the Compensation Committee and 8/8 (100%) for the Risk Management Committee.SustainabilityCommittee attendance rates were 4/4 (100%), and for the Internal Control Committee, it was 2/2 (100%).
*4. Former Nominee Akihiro Kobayashi's attendance rate at the Nominating Committee was 6/6 (100%), his successor's attendance rate at the Nominating Committee was 1/1 (100%), and his attendance rate at the Governance Committee was 4/4 (100%).
*5. The "DX Promotion Committee" was renamed the "AX Committee" in March 2026. The attendance rate shown is based on the 2025 fiscal year (former DX Promotion Committee) figures.
※６．Takayuki NakataniMr. andMotoki HarutaHis appointment as a "Risk Management Committee Member" will begin in March 2026.

Composition of the Board of Directors *Including directors who are audit and supervisory committee members (as of March 28, 2026)

board of directors

The Board of Directors consists of nine members (six men and three women), including six outside directors, and meets approximately once a month. It is comprised of diverse officers with varying areas of expertise and experience, including directors with deep knowledge of our group's business and outside directors who provide independent and objective oversight (outside directors include those with management experience at other companies).

Regarding the appointment of directors, the Board of Directors creates a skills matrix outlining the main skills and expertise of each director. The Nominating Committee, which is comprised of a majority of outside directors, deliberates on the matter based on a multifaceted evaluation of abilities, performance, and other factors, and the final decision is made by the Board of Directors.

To improve diversity on the board of directors, including gender, we aim for women to make up 30% of the board by 2030. As of March 28, 2026, 3 out of 9 members of the board of directors are women (33.3% female). Regarding the appointment of foreign directors, we currently believe there is no need for it, as the majority of our sales are domestic.

Furthermore, regarding the Audit and Supervisory Committee, we have appointed one certified public accountant with sufficient knowledge of finance and accounting, and two lawyers with expertise in legal matters.

Business Portfolio Policy

When formulating and publishing our management strategies and plans, we make sure to accurately grasp the cost of capital.Net sales、Operating incomeWe include target values such as return on equity (ROE) in our medium-term management plan. Furthermore, in order to concentrate on businesses that can consistently generate returns exceeding the cost of capital in the medium to long term, we determine the direction of our businesses based on two axes: profitability and growth, and construct our portfolio accordingly.

Disclosure Policy

Information disclosure policy

Our company aims to provide timely information to all stakeholders.

Our company complies with the Companies Act and the Financial Instruments and Exchange Act.OtherThe laws and regulations of the Tokyo Stock ExchangeTimely disclosureIn addition to disclosing information in accordance with regulations, we will also strive to proactively and fairly disclose information that we believe will be useful in deepening understanding of our group, to the extent possible.

Methods of information disclosure

Our company is subject to the regulations of the Tokyo Stock Exchange.Timely disclosureThe disclosure of material information subject to the regulations shall be in accordance with those regulations, after prior explanation to the exchange, and provided by the exchange.Timely disclosureWe will register and make public the information on the information transmission system (TDnet). Furthermore, we will promptly provide the same information to media outlets after registration, and will also post the same materials on our website without delay.Timely disclosureEven when disclosing information that does not fall under the regulations, we will take care to ensure that the information is communicated accurately and fairly through appropriate methods.

Furthermore, if the Information Handling Officer determines that one of our officers or employees (limited to those whose duties involve communicating information to business partners) has unintentionally communicated important information in connection with their work, the Information Handling Officer will report this to the President and promptly make such important information public through the prescribed method.

Prevention of insider trading

Our company has established internal regulations to properly manage important company information and prevent insider trading, and we are promoting thorough dissemination and awareness-raising activities among all employees of our group companies.

Performance forecasts and future outlook

Except for those relating to past or present facts, our group's plans, forecasts, strategies, etc., as described in our disclosure materials are based on our judgments and assumptions using information available at the time. Actual results are subject to uncertainty and economic conditions.OtherThis can vary significantly depending on the risk factors.

Silent period

Our companyFinancialsIn order to prevent the leakage of important information such as data and to ensure fairness in information disclosure,Financials(quarterFinancials) From the day after the end of the termFinancialsThe period until the announcement date has been designated as a "silent period," and this period is,FinancialsWe will refrain from answering questions or responding to media inquiries regarding this matter. Furthermore, during this quiet period, we will refrain from holding company briefings and individual meetings with analysts and institutional investors. However, if a material fact requiring disclosure arises during this quiet period,Timely disclosureWe will disclose the information in accordance with the rules and regulations.

IR activities

Dialogue with shareholders, investors, and securities analysts is overseen by the executive officer in charge of investor relations.PresidentThe responsible director, executive officer, and IR department will consider how to respond and take appropriate action. The IR department will support dialogue with shareholders and investors by organically collaborating with relevant departments, such as by sharing information and exchanging opinions based on their respective areas of expertise as needed.

In addition to individual consultations, we also offer support via telephone and online.Financial Results BriefingWe will strive to enhance our means of dialogue, such as by holding small meetings. We will also actively implement information disclosure, which is a prerequisite for dialogue, and position "Summary of Financial Results" and "Integrated ReportWe will strive to expand the content of "[...]".

The opinions and feedback received during these discussions will be shared within the company through reports to the Board of Directors and management meetings, and will be used in reviewing our management strategy.

In our dialogues, we will pay close attention to the accuracy and fairness of information disclosure and manage internal information appropriately.

IR activities for the most recent three fiscal years

compliance

Commitment to compliance

Our group has established the "Funai Research Institute Group Corporate Ethics and Conduct Charter" and the "Group Compliance Regulations" to clearly define the standards for maintaining a high level of ethical awareness and acting with good judgment.
To prevent and correct illegal activities and actions that violate social norms and corporate ethics, we have established "Group Hotline Regulations" and set up an "Internal Hotline" for those working within our group.Funai Soken Holdings Inc.Our legal and risk management departments, along with the compliance officers of each group company, work together to establish a system for understanding the compliance status and any issues across the entire group.
In addition, to raise awareness of compliance, we have made it mandatory to include a compliance-themed program in the onboarding training for new graduates and mid-career hires.
Furthermore, we require our executives and employees to take e-learning courses on compliance and information security at least three times a year, striving to improve their awareness of compliance.

Whistleblowing system

Our group has established an "internal hotline" based on the Group Hotline Regulations as an internal reporting system. This hotline covers compliance violations, including violations of the following basic policies and regulations, and the head of the legal department, outside directors who are audit and supervisory committee members, and external lawyers serve as reporting channels.
Reports can be made anonymously via email or telephone, and the content of the report will be kept confidential. We also strictly prohibit any retaliatory actions against the whistleblower, thereby protecting the whistleblower.
Information regarding reporting channels is provided on cards carried by our officers and employees, and is also clearly displayed on our intranet, which is accessible to all officers and employees of our group companies.

Furthermore, to enhance the effectiveness of the system, we track and disclose its operational performance every fiscal year. In fiscal year 2025, there were zero reports of significant ethical violations. We also take prompt and appropriate investigations and corrective measures for all reported cases.

Basic policy for eliminating anti-social forces

Our group's basic policy is to sever all ties with anti-social forces and to resolutely reject any unreasonable demands made by them.
To achieve this basic policy, we will respond not only as individuals or departments but as an entire organization, ensuring the safety of officers and employees involved, and strengthening cooperation with external expert organizations such as the police and lawyers on an ongoing basis.
Furthermore, business relationships with anti-social forces are, of course, not limited to...OtherWe will completely sever all ties with such groups, and in the event of any unreasonable demands from antisocial forces, we will resolutely refuse and take legal action, both civil and criminal, as necessary. We will absolutely not engage in any under-the-table dealings or provide funding to antisocial forces.

To implement the above basic policy, we have defined specific details in the Group Compliance Regulations, which apply to all employees of our group, and we require all employees of our group to report any violations of these regulations or any actions that may be suspected of being in violation through the internal reporting system described above.

Information security

Outline of our approach to information security

Based on our information security basic policy, we have established rules tailored to our business domain and current trends, and we conduct information security management that deepens understanding among all employees through information security education. We are also striving to strengthen the information security infrastructure that supports these efforts and to cultivate information security personnel.

Information Security Basic Policy

Our company and its group companies (hereinafter referred to as the "Funai Research Institute Group")Sustainable growth for more companiesUnder the group purpose of "...", we aim to be a group management that is always needed by society by proposing a better future to all people involved with the Funai Research Institute Group, increasing the number of companies that continue to grow in any era, enabling all people to happily realize their potential, and supporting the improvement of social productivity. We consider it our responsibility to protect the information assets of the Funai Research Institute Group, including information entrusted to us by our customers and business partners, and have formulated the "Basic Information Security Policy". All officers and employees of all Funai Research Institute Group companies (hereinafter referred to as "officers and employees") will understand and comply with this policy and work to maintain and improve information security.

1. Establishment and improvement of internal management systems
The Funai Research Institute Group will establish an information security management system to maintain and improve information security, and will formalize information security measures as internal regulations. We will build an information management system and strive to promote the appropriate operation of information assets under the management of the Funai Research Institute Group.

2. Initiatives by all officers and employees
Regarding all information acquired or obtained in the course of business activities, and all information held in the course of business, officers and employees involved with these information assets will regularly receive necessary education and training, be made aware of this policy, acquire knowledge and skills, and ensure robust security management measures.

3. Compliance with laws and contractual requirements
We will comply with all laws, regulations, standards, and contractual obligations related to information security, and meet our customers' expectations.

4. Development of internal guidelines and response to violations and accidents
We will establish internal guidelines and various procedures to clarify the handling of all information assets, including personal information. We will not only take measures to prevent violations of laws and regulations, breaches of contract, and incidents related to information security, but also respond quickly if they occur, and strive to prevent recurrence, but we will also make it clear to both internal and external parties that we will take a firm stance against them.

5. Establishment and enhancement of the audit system.
We will strive to establish and maintain a system for conducting internal audits to ensure compliance with this policy, guidelines, and procedures. These activities will demonstrate that our officers and employees are complying with the rules, including this "Basic Information Security Policy."

6. Continuous Improvement
We will operate a management system within the organization to implement this policy and strive for continuous improvement of related regulations, procedures, and information security measures.

Established December 18, 2020
Revised April 21, 2023
Funai Soken Holdings Inc.
President　Takayuki Nakatani

Our group has
Information security risks

1. Information leak of information assets

As the digital transformation of data utilization accelerates, and the use of software and cloud services, in addition to core systems, increases, we believe that the information assets entrusted to us by our group and our customers will face increased risks in proportion to the number of organizations, information volumes, and systems involved.

2. Deficiencies in the procedures for acquiring personal information

We believe that the increasing confidentiality of data handled due to stricter legislation and deeper customer support will increase the risk of inappropriate handling due to outdated rules and system permissions.

3. Destruction or falsification of important data, system shutdown, etc.

Even with systems and organizations designed to maintain confidentiality, reliability, availability, integrity, and security, a disruption in the transfer of technical skills among IT professionals and an inability to keep up with increasingly sophisticated external attacks pose a risk to business continuity.

Information Security Promotion System

1. Establish an information security management department and a group-wide information security countermeasures meeting.

Promoting information security within our group The "Information Security Management Department" is responsible for the Risk Management Committee andSustainabilityWe are working in dialogue with the committee. We are working to improve management levels through the "Information Security Measures Meeting," which is attended by key information security practitioners from each group company.

2. Information Security Promotion System Diagram of Our Group

We believe that the increasing confidentiality of data handled due to stricter legislation and deeper customer support will increase the risk of inappropriate handling due to outdated rules and system permissions.

Regarding information security
Main initiatives

1. Continuous strengthening of the information security management system

Radar chart analysis

To objectively evaluate our information security level, our group conducted comparative surveys with domestic service industries in 2023 and 2024. The results are shown in the radar chart below.

Our latest radar chart analysis (2024) provides an objective assessment of the current state of our group's information security system. Compared to the previous year (2023), progress has been made in some areas, while areas that still require strengthening have also been identified.

We will prioritize these identified issues under our governance structure, including the Risk Management Committee, and allocate resources accordingly. Through continuous monitoring and improvement activities, we aim to enhance the cyber resilience of the entire group and improve sustainable corporate value.

2. Responding to increasingly sophisticated cyberattacks: Promoting zero trust

To strengthen our countermeasures against increasingly sophisticated cyberattacks, our group is implementing IDaaS, which provides an ID management and authentication platform for employees, and EDR (Endpoint Detection and Response) to detect and respond to suspicious behavior on PCs and servers. SASE (Secure Access Service), which integrates detection and response, network, and security functions on the cloud. We have implemented Edge-enabled products company-wide and are utilizing them to establish a foundation for realizing a zero-trust security model.

In addition to implementing these infrastructures, we are also focusing on security education and training for group employees to improve security awareness. Furthermore, by strengthening security monitoring, we will build a system that allows us to detect threats early and respond quickly.

We will continue to actively introduce the latest security technologies and strive to provide our customers with safe and secure services.

3. Strengthening the security of the information system infrastructure

① Measures against information leaks of information assets
- Strengthening the safety verification system for DX
As we accelerate the digital transformation of information assets entrusted to us by our group and our customers, and as risks increase, we are implementing group-wide management initiatives to thoroughly educate our officers and employees on information security and to strengthen our system for verifying the security of increasing amounts of software and cloud services.
• System risk assessment
As part of its efforts to prevent shadow IT, Funai Research Institute has established an Information Security Committee and has proactively begun conducting system risk assessments.

- Strengthening the remote work environment
Major companies are promoting both improved work styles and information security, including further support for remote work environments such as refreshing their authentication infrastructure.

② Measures to address deficiencies in the procedures for acquiring personal information
We are working in cooperation with our legal department and group companies to implement timely measures for departments that handle personal information.

③ Measures against the destruction or alteration of important data, system downtime, etc.
To ensure the safe and continuous use of reliable systems, we are implementing enhanced security measures, including thorough reviews during implementation and major updates, regular checks of critical systems, and re-examinations from expert perspectives.

4. Implementation of information security education

To ensure that our officers and employees, who handle various types of information in their work, can perform their duties safely and efficiently, we believe it is essential that they understand the rules and take ownership of them, enabling them to respond autonomously. Therefore, we promote the implementation of information security training for all officers and employees every year.
e-learning training overview
1. Information Security 2. Personal Information Protection 3. Cyberattacks 4. Compliance 5. Information Security Manual

AI Policy and AI Governance

AI Policy

1. Realizing human-centered AI
Our group recognizes the risks of AI utilization, such as the potential for bias and discrimination, as well as the limitations of AI output. We strive to provide and utilize AI that expands human capabilities and enables everyone to pursue happiness, taking care to ensure that excessive reliance on AI does not negate human dignity or potential, or endanger life or physical safety.

2. Ensuring fairness
Our group recognizes the possibility of bias arising from technical elements such as training data and AI model algorithms, as well as from the way AI is used, when providing and utilizing AI. Therefore, when providing and utilizing AI services, we verify the risks that may arise from the use of such AI services, and we continuously review our management and operations while closely monitoring technological and social changes.

3. Ensuring information security
Our group will not collect or train data related to individual privacy or confidential customer information when utilizing AI.OtherWe recognize that this data may contain sensitive information. To ensure that this data is handled appropriately and securely, we strive to implement and strengthen information security measures throughout the entire lifecycle of AI research, development, provision, and utilization.

4. Ensuring transparency and accountability
Our group aims for transparent utilization of AI, taking into account the nature and purpose of AI-based development and services, and strives to communicate appropriately and continuously with stakeholders.

5. Human resource development
Our group will implement education and practical training to cultivate human resources who can correctly understand this policy and actively realize and promote the utilization of AI based on this policy.

AI governance

To ensure the effectiveness of the above-mentioned "AI Policy," our group will establish and operate an AI governance process, aiming for sound and fair utilization of AI.
Our group's AI governance process is as follows:
Funai Soken Holdings Inc.The Board of Directors bears ultimate responsibility for AI governance and discusses and decides on important matters. The Board of Directors directs the Group Legal Department, which is responsible for AI governance, and the Compliance Departments of each company to operate, implement, and manage AI governance and risks. The responsible departments report to the Board of Directors on the status of operations and make recommendations for rule revisions as a risk management measure.OtherWe will report on important matters.

The Group Legal Department closely monitors and analyzes AI-related laws, regulations, and government guidelines, and reviews the "AI Policy" and considers necessary measures for the entire Group. When necessary, it consults with the Risk Management Committee and the Board of Directors, and proposes and implements the rules and measures required for the Group.
Furthermore, the legal department and the compliance departments of each group company will cooperate to conduct risk assessments of potential risks faced by each group company, design and implement appropriate rules based on those risk assessments, monitor compliance, and conduct audits, in accordance with the characteristics of each group company's business content and business phase.
In the event of any violation of established rules or regulations regarding the use of AI, the compliance and legal departments of each group company will respond appropriately, including reporting to the Risk Management Committee and implementing measures to prevent recurrence.
By continuously implementing these activities, we will assess the effectiveness and problems of the "AI Policy" and the rules based on it, and strive to improve them.

Established on November 25, 2024

anti-corruption

Basic policy on preventing bribery and corruption

Our group has adopted the following basic policy regarding the prevention of bribery and corruption, as resolved by the Board of Directors. Furthermore, the Board of Directors will periodically review the following content and actual initiatives based on reports of actual implementation, violations, or suspected violations.
Our group complies with Japanese criminal law and unfair competition prevention law, as well as laws and regulations concerning commercial bribery in China and the U.S. Federal Foreign Corruption Prevention Act.OtherWe comply with all applicable laws and regulations regarding bribery within our group, and we do not make inappropriate payments, send gifts, provide services, or entertain public officials in Japan or abroad, nor do we engage in any bribery activities that would constitute bribery or bribery of foreign public officials under the Unfair Competition Prevention Act of the respective country.
Furthermore, our group is not responsible for any money laundering, obstruction of justice, embezzlement, abuse of power, coercion of business partners, conflicts of interest, or insider trading, in addition to bribery.OtherWe do not tolerate any corrupt practices and will not engage in them.
To achieve this, our group has established an internal whistleblowing system and revised internal regulations.OtherWe will establish appropriate mechanisms to prevent bribery and corruption, continuously monitor those mechanisms, and improve them as needed. Furthermore, through training and internal communications, our group will ensure that all officers and employees fully understand the regulations regarding bribery and corruption, and will strive to cultivate a high level of ethical awareness.

Efforts to prevent bribery and corruption

In order to implement the above basic policy, our group has established specific details in the Group Compliance Regulations, which apply to all officers and employees of our group, and requires all officers and employees of our group to report any violations of these regulations or any actions that are suspected of being in violation through the internal reporting system described above.
Compliance with these regulations is regularly checked through internal audits, and the results are reported to the Board of Directors. In addition, if there is a report of a violation or suspected violation of the above basic policy or regulations, the Risk Management Committee reviews the matter and reports the findings to the Board of Directors. Based on these reports, the Board of Directors will consider reviewing the compliance system regarding corruption prevention, in addition to the above basic policy.
Furthermore, our group believes it is necessary for all officers and employees to be aware of and understand the above basic policy, and we will continue to implement various educational and awareness-raising activities.

Disclosure of information related to anti-corruption

The following is numerical information regarding our group's efforts to prevent corruption:

	2021	2022	2023	FY2024	FY2025
Total amount of political donations (yen)	0	0	0	0	0
Number of disciplinary actions and dismissals of officers and employees related to the anti-corruption policy (cases)	0	0	0	0	0
Disciplinary actions, fines, and penalties related to bribery (number of cases)	0	0	0	0	0
Conflict of interest (items)	-	-	0	0	0
Money laundering/insider trading (number of cases)	-	-	0	0	0

*The fiscal year is based on our company's fiscal year.

Basic policy on fair trade

The Funai Research Institute Group has established the following basic policy regarding fair trade in order to comply with laws and regulations and promote fair business activities.

1. 1. Recognizing the importance of preventing anti-competitive practices, we will not engage in any unfair practices that hinder competition, including collusion, and will conduct fair competition in the market to provide sound services.
2. 2. We will not engage in any transactions that infringe on the rights of third parties, and in conducting transactions, we will comply with all domestic and international laws and regulations, including the Antimonopoly Act and the Subcontracting Act.
3. 3. We will build equal and fair cooperative relationships with our business partners, collaborating companies, and partners.
4. 4. We will not conduct transactions with our customers or business partners for the purpose of benefiting an individual or a third party.
5. 5. We will not request money or gifts without reasonable justification, nor will we provide or receive entertainment or gifts that exceed social norms.
6. 6. When selecting business partners, collaborating companies, and partners, we will consider not only economic conditions but also compliance issues, including environmental and social issues.

Taxation Considerations

Taxation Considerations

Our group strives to enhance transparency in corporate accounting in accordance with the "Funai Research Institute Group Code of Corporate Ethics," and recognizes the importance of similarly increasing transparency in taxation, complying with relevant laws and regulations in each country, and paying taxes appropriately.

Tax amount

The total amount of corporate tax and other taxes paid by our group by country is as follows:

(Unit: million yen)

	2021	2022	2023	FY2024	FY2025
Japan	1,699	2,623	2,717	2,170	2,225
People's Republic of China	0	0	7	1	0
India	-	-	-	-	0
Singapore	-	-	-	-	0

*The fiscal year is based on our company's fiscal year.