Shoei Pharmaceutical ＜3537＞ announced on the 25th that it has carried out an effectiveness evaluation of the company's board of directors as an effort to strengthen corporate governance.

As the evaluation target period for the fiscal year ending 2024/3, a questionnaire was conducted for all directors (9 including outside directors) using a 4-step evaluation and free description method, and responses were obtained from everyone using an anonymous method.

The evaluation items are 1. The structure of the board of directors 2. Management of directors; 3. The agenda of the board of directors; 4. The system that supports the board of directors; and 5. Dialogue with shareholders as a board of directors.

As for the evaluation results, it was assessed that the Board of Directors meeting for the fiscal year ended 2024/3 was at least two-thirds of the questionnaire items, the evaluation was improved from the previous year, the structure, frequency, time, discussion content (quantity/quality), decision-making process, etc. of the board of directors were generally appropriate, and the effectiveness of the board of directors was appropriately ensured.

As an initiative from the previous fiscal year's evaluation, (1) a sustainability committee was newly established in 2023/7, and continuous examination and reporting on sustainability issues was carried out; (2) employee engagement surveys were conducted as part of medium- to long-term human resource strategies and human resource development efforts, and consideration of future human resource strategies etc. based on the results began; and (3) business card management software and expense reimbursement software were introduced during the 2024/3 fiscal year as part of DX initiatives. Also, in order to support future business expansion, core systems are planned to be renovated.

As for issues continuing from the previous fiscal year's evaluation, it was recognized that future medium- to long-term business strategies, human resource development, investment in intangible assets such as sustainability and human capital have not been sufficiently improved at the moment, and further in-depth discussions are necessary.