The Nagoya Electric Works Group has responded to customer needs under the slogan "We shall make products that contribute to society" based on its management philosophy.

Under such circumstances, there is a growing momentum today that calls for social responsibility and public mission for companies. In order to respond to these demands, it is necessary for all directors and employees to recognize the importance of conducting business activities in compliance with laws, regulations and social norms.

We believe that it is important for each and every director and employee to act initiatively with social good sense toward the creation of a sustainable society, and that such a management attitude will lead to a cheerful workplace, sound business relationships, and contribution to social development through our work, which will earn us high credibility and recognition from society.

Based on this recognition, the Nagoya Electric Works Group has positioned risk management and compliance as the most important management issues, and has established the "Basic Policy for Risk Management and Compliance" in order to conduct business based on appropriate risk management and high corporate ethics. We hereby declare that we comply with laws and regulations, as well as internal rules and social norms, and further build an ethical culture.

April 1, 2024

Nagoya Electric Works Group
President
Takaaki Hattori

Risk management is becoming increasingly important as it is not uncommon for damage resulting from natural disasters, accidents and other man-made disasters, economic incidents, and other risks to develop into situations that threaten the existence of the organization. Based on this recognition, we position risk management as one of the most important management issues, and implement management at the top level (Board of Directors) in accordance with the characteristics of risks based on the "Risk Management and Compliance Action Guidelines".

• We enhance the social reputation of the organization.
• We ensure the safety of the people who comprise the organization and the preservation of the organization's management resources.
• We ensure prompt recovery in the event of damage.
• We act in a manner that does not impair the safety and interests of those involved.
• We act responsibly when risks become apparent.
• We reflect risk-related social demands in the organization's risk management activities.

We have established the "Risk Management and Compliance Action Guidelines", and we address compliance as the most important management issue.

Based on the basic recognition that it is important for each and every director and employee of the Nagoya Electric Works Group to conduct business activities in compliance with laws, regulations, and social norms to meet the demands of our corporate social responsibility and public mission, we continue to act initiatively toward the creation of a sustainable society with a social conscience.

• We observe laws, regulations, internal rules, and other rules and regulations
• We act in accordance with social common sense

We have established the "Risk Management and Compliance Committee" to increase awareness of risk management among all directors and employees and to strengthen company-wide risk management. The committee conducts general control and management of compliance.

The committee then formulates specific practical plans for risk management, deliberates on measures to address risk management issues, monitors the implementation status of the practical plans, and controls and manages overall risk management. The Risk Management and Compliance Committee also promotes compliance with laws and regulations under the direction of the Risk Management and Compliance Committee.

We have established the "Nagoya Electric Works Helpline" and procedures to implement protection of whistleblowers in accordance with the Whistleblower Protection Act, and disclose them to all directors and employees to ensure that they are fully informed.

We promote countermeasures against anti-social forces such as organized crime groups and general assemblymen who threaten the order and safety of civil society. We also promote internal awareness of such forces, and cooperate with external organizations including the police.

In addition, we continuously inform all directors and employees that, in the event they come into contact with antisocial forces, they must promptly cooperate internally and take a resolute and organized response.