Corporate Governance Organizational Chart

Institutional design structure	Company with Board of Directors and Audit and Supervisory Committee
Number of directors (number of outside directors)	7 (2)
Number of Audit and Supervisory Committee members (number of outside Audit and Supervisory Committee members)	3 (2)
Term of office of directors	One year for directors (excluding directors that are Audit and Supervisory Committee members) Two years for directors that are Audit and Supervisory Committee members
Implementation of executive officer system	Yes
Voluntary advisory committee of the Board of Directors	Advisory Committee
Director remuneration system	Basic remuneration is determined based on the director's responsibilities, term of office, individual performance, and title. Basic remuneration consists of fixed and variable remunerations, of which variable remuneration is determined based on the level of achievement of an ordinary profit target. Ordinary profit is set as the determining value as the Company views ordinary profit as an important indicator for determining growth and profitability, which the Company regards as important factors in management. Remuneration for directors that are Audit and Supervisory Committee members is determined within the total amount based on the resolution of the General Meeting of Shareholders based on discussion at the Audit and Supervisory Committee meeting.
Accounting auditor	Deloitte Touche Tohmatsu LLC

Corporate governance structure

Name	Role
Board of Directors	The Board of Directors of our company makes decisions on matters stipulated in the Board of Directors Regulations, such as matters required by law and important matters related to corporate management and group management, and also supervises the execution of duties by directors and executive officers through the regular reports they provide. It also makes decisions on other important management items, and has established an internal control system and risk management system to create an environment that supports an appropriate risk-taking approach by senior management. We also evaluate effectiveness of the Board of Directors every year for purpose of improving its functionality. Evaluation is conducted based on questionnaires from all directors, which are analyzed and evaluated by a voluntary advisory committee and then reported to the Board of Directors. The Board discusses the final evaluation and the outcome and overview of the results are released to the public.
Business Execution Meeting	The Company is promoting the improvement of management efficiency by increasing the speed of decision-making and separating the functions and delegating the authorities by introducing the executive officer system to strengthen the auditory function for business execution. The Company's Business Execution Committee consists of 11 members, including of the Director and COO, Director and CFO, and executive officers, and generally holds meetings twice a month. At the Business Execution Committee meeting, the Company discusses the management policy of the Group, budget plans, new business plans, and other important items concerning business execution, and items to be resolved by the Board of Directors are reported to the Board of Directors.
Risk Management Committee	The company's Risk Management Committee is chaired by the Representative Director or a director appointed by the Representative Director, and consists of officers selected by the Chairman and appointed by the Chief Executive Officer. The Risk Management Committee covers the role of development, operation, and supervision of the internal control system for preventing and mitigating the occurrence of risks that may hinder the achievement of organizational goals, and in the case that damage does occur, develops and operates a system to prevent the spread of damage and minimize that damage, as well as to achieve the four objectives of internal control: "effectiveness and efficiency of operations," "credibility of financial reporting," "compliance with laws and regulations related to business activities," and "asset protection."
Advisory Committee	The Company's Advisory Committee consists of outside directors, full-time directors and Audit and Supervisory Committee members, and a Representative Director or Director and CVO. In addition, the majority of the Committee is to be consisted of outside directors, and is consisted of two outside directors and two inside directors. Meetings are held as necessary. The Committee discusses the selection and dismissal of director candidates who are not Audit and Supervisory Committee members and their remuneration as well as effectiveness evaluation and other matters related to corporate governance. We are able to utilize the knowledge and advice of outside directors during the discussion while ensuring objectivity and transparency of processes related to these items and making further improvements to our corporate governance system.
Audit and Supervisory Committee	The Company's Audit and Supervisory Committee consists of three directors, of which two are outside directors, and audits the business execution of the directors as an independent body entrusted by the shareholders. In addition, the Audit and Supervisory Committee regularly holds meetings with the Representative Director(CEO) while full-time directors who are Audit and Supervisory Committee members regularly hold meetings with directors of the Board of Directors as well as directors and others who are not members of the Audit and Supervisory Committee to audit the business executions of directors regarding the status of important internal meetings and projects from multiple perspectives while also auditing their compliance with the laws and article of incorporation as well as the validity of their decision making. The Audit and Supervisory Committee maintains close coordination with the Internal Audit Office and other departments in charge of the monitoring function. The Committee receives reports on the result of auditing and other information from the Internal Audit Office and requests investigation as necessary and gives out specific instructions to improve the effectiveness and efficiency of the audits through daily and flexible coordination with the Internal Audit Office and other departments.
Internal Audit Office	The Internal Audit Office consisting of four members is established directly under the Audit and Supervisory Committee for internal auditing. The Office conducts audits on business and personal information as well as evaluates the effectiveness of the implemented internal control measures and their operational status based on an annual audit plan to promote the measures to strengthen corporate governance. In addition, results of the audits are reported once a month to the Audit and Supervisory Committee and the Representative Director(CEO) to facilitate information sharing.

Composition of the Board of Directors and Skill Matrix

In order to achieve sustainable growth, create our social significance and improve our corporate value in the mid to long term through the realization of our vision, the Board of Directors is composed of the following members.

Name	Position	Main field of expertise and experience / field of expected contribution
Name	Position	Corporate Management	Store Development/Sales	Human Resources	Finance and Accounting/M&A	Sustainability/Governance	IT/DX
Atsushi Sawa	Representative Director,CEO(Chair)	○		○	○	○
Yoshihiro Kato	Director,CVO founder	○		○		○
Kenichi Komiya	Director,COO		○	○			○
Maki Otani	Director,CFO		○		○		○
Tetsuji Kamisawa	Director, Full-time Audit and Supervisory Committee Member	○			○	○
Yoshiaki Mikami	Director, Audit and Supervisory Committee Member (Outside)	○			○	○
Junko Mori	Director, Audit and Supervisory Committee Member (Outside)				○	○