Profile and history of the OTC Daihen Asia

The Company’s purpose is to enable all stakeholders surrounding the Company—customers, employees and their families, shareholders, suppliers, and local communities—to experience greater happiness (“Simultaneous Achievement of Everyone’s Happiness”). To achieve this, we clearly define concrete goals for each group of stakeholders (“Happiness Target Values”) and strive to realize them.

We recognize that an effective corporate governance framework is a vital foundation for fulfilling this purpose. Accordingly, we are committed to building and strengthening a governance structure with real effectiveness across the entire Group.

With regard to business execution structure, the company has adopted executive officers system and business division structure in order to make quick decision making. For matters beyond scope of authority which are clearly defined authorities based on job duties and approval criteria are determined by discussion of management conference comprised by representative director, board of directors and corporate auditor.

Board of directors is body for highest decision making and supervision for business operation and enable to active discussion and enhancement of supervision in appropriate number of person including three independent external directors out of nine board of directors as of 28th, June, 2022.

To enhance board of auditor’s function, nominate appropriate person in highly specialized knowledge for management, legal, accounting. Corporate auditor attend important meeting such as board meeting and collaborate with internal audit division and external auditor for inspection of asset situation and business operation, and exchanging opinion with representative director in periodically.

Also, Company set Nomination and compensation advisory committee made up the majority of independent external director and independent external corporate auditor as advisory body for board of director to maintain transparency and objectivity of decision making process for director’s nomination, succession plan and structure and level of compensation of directors.