Currently, the Board of Directors consists of 9 members, including three internal directors and six outside directors. Each director has a high level of expertise and a wealth of knowledge, and our discussions are always open and active. It is clear to me that the business execution team values the board's discussions and opinions and makes efforts to apply them in their management. However, continuous efforts are needed to improve the board's effectiveness, and it will need to engage even more in discussions on key management issues going forward. To further evolve as an oversight body, the board must clarify its inherent roles, the form of its oversight, and the matters in which it should be involved. Moreover, we need to promote a culture embracing the sincere pursuit of board optimization. This includes close communication and information sharing with the business execution team to create a foundation of mutual trust.

One of the board's important functions is overseeing the appointment and compensation of the management team. As a company with an Audit/Supervisory Committee, the authority to make decisions regarding appointments and compensation resides with the board of directors. Discussions on these matters, including succession planning, take place within the Nomination and Compensation Committee, where I and other outside directors form the majority, and our recom- mendations are submitted to the board. We have drawn up a plan for CEO succession in particular, and have taken a leading role in its implementation. The plan includes the selection and development of successor candidates, and the allocation of sufficient time and resources for this process. The appointment of President Nakagome is a direct result of this planning.

The Group's mission involves "making people's lives more comfortable in every community by providing energy and home life services." To fulfill this mission, the Group needs to take another look at its strengths and decide how to best transform itself and adapt to changes in the business environment. This is a challenge that the entire SINANEN HOLDINGS Group must take on under the new leadership of President Nakagome.

While maintaining a relationship of trust with the business execution team, the Audit/Supervisory Committee will be more proactive than ever in providing its opinions and help establish an even higher level of corporate governance. To this end, we will not only monitor key management areas such as strategy execution, the operational status of organizations, and HR strat- egy, but will also provide more proactive advice on business challenges and risks identified through our audit activities, and offer advance warnings to facilitate sound risk-taking, all with an awareness of the need for proactive governance.

Along with serving clients as a certified public accountant, I have been involved in organizational management. Drawing on this experience, I aim to contribute to the Group's sustain- able growth by offering a broader management perspective that goes beyond the specializations of accounting, auditing, and internal control.