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With regard to sustainability, we believe it is important to first define the values on which all employees should base their work in order to promote company-wide efforts. As a result, we have revised the content of the Code of Conduct based on our former compliance code.

In our Code of Conduct, we focused on using very simple phrases that would associate positive impressions about the Company.

We will work to instill these values within the Company and put them into practice in our daily operations so that all of our stakeholders, not only medical professionals, who are our direct customers, but also patients, business partners, local residents, shareholders, and employees, will be able to feel grateful.

JLL has identified seven materialities as sustainability issues.

In addition, the following were selected as materialities to be addressed in strengthening our business foundation based on an ESG framework: - Solve medical issues through innovative medical devices - Reduce environmental impact - Create a workplace where employees can work with comfort - Develop human resources and provide opportunities for them to play an active role - Secure product quality and stable supply - Strengthen corporate governance - Promote compliance At this time, all materiality initiatives are generally progressing well.

With regard to "Solve medical issues through innovative medical devices," cross-organizational members are leading a brisk discussion on future R&D and intellectual property strategies, and taking concrete measures that lead to the introduction of products that will have an impact.

In addition, with regard to "Develop human resources and provide opportunities for them to play an active role," the ratio of female managers is still insufficient. We will carefully work on this issue.

We will continue to refine our unique business model and take on challenges in the Japanese and overseas markets. I also believe that it is not enough for a company involved in the medical device business to simply provide superior products and pursue economic value.

We will continue to question what medical devices are truly useful and needed for society from the perspective of medical professionals, patients, and medical economics. Contributing to a healthier society through cutting-edge medical technologies, which is part of our Management Philosophy, we aim to increase social value and improve corporate value.

I would like to thank all of our stakeholders for their continued support.