Status of Risk Management System

Macbee established its risk management system in accordance with its "Risk Management Regulations" and consistently strives to strengthen mechanisms that facilitate both this system's implementation and the sharing of essential information on a companywide basis. Consisting primarily of corporate officers, the Risk Management Committee meets quarterly in principle to discuss a wide range of risk-related issues, including proper assessment and countermeasures, and consider concrete solutions. Furthermore, in preparation for major earthquakes or other unexpected risks that require companywide response, Macbee has established an emergency response system under which its representative director serves as the chief risk management officer. Furthermore, in an effort to prevent and detect risks as early as possible, the company has adopted additional systems through which it can obtain advice from external specialists such as lawyers, certified public accountants, certified tax accountants, and labor and social security attorneys.

Regulations and Other Systems Related to Management of Loss Risk Facing the Group

(1)To ensure appropriate risk management on a groupwide basis, the Risk Management Committee shall conduct regular meetings and hold additional meetings as necessary to identify and minimize risks and discuss methods for their management in accordance with the group's "Risk Management Regulations."

(2)When necessary, important details discussed by the Risk Management Committee shall be reported to the Board of Directors.

(3)After identifying potential new risks through business execution reports delivered during meetings of the Management Committee, when necessary, the company's representative director shall notify the relevant departments of these potential risks and establish systems enabling the prompt execution of crisis management countermeasures.

Information Security

We have established information security management guidelines to facilitate the proper use and smooth application of information systems employed through our business operations, ensure the security of personal data and other information assets, and guarantee the accuracy and safe use of this electronic data. Furthermore, we have formed an Information System Division with the goal of strengthening our information security.