RaQualia values the interests of all of our stakeholders. We believe in the importance of corporate governance to respond to these interests, heighten our corporate value, and fulfill the trust that has been placed in us. We have implemented the following internal controls in order to continuously strengthen our management structure, ensure quick and responsible decision making, and maintain a highly transparent and fair organization.

RaQualia has a Board of Directors (BOD), a Board of Company Auditors, and an accounting firm auditor.

The BOD meets once per month for its regular meeting and also holds ad hoc meetings as needed. It deliberates and makes decisions regarding the company's management policy and annual budget, as well as provides reports on monthly budget administration and other important matters related to the company's operations. In order to strengthen the Board's monitoring functions, one of the five Directors are appointed from outside the company. An auditor attends BOD meetings to observe its deliberations.

The Board of Company Auditors (BOCA) meets once per month and also holds ad hoc meetings as needed. RaQualia's BOCA is made up of three auditors (one full time and two part time) with knowledge of venture businesses and pharmaceutical product development to ensure the independence and transparency of the auditing work.

RaQualia has a Corporate Officer System, and we make clear how important it is for corporate officers to monitor executive functions and for directors to monitor management. While we value the rapid execution of work, we also insist that work take place based on the highest standards of excellence and quality. The Board of Corporate Officers comprises the Representative Director and the head of each department, for a total of nine corporate officers and one full-time auditor. The Board primarily serves to monitor the work of the Representative Director and to provide a forum for focused discussions on management topics. It meets at least twice per month, in support of quick and appropriate decision making.

The Compliance Committee is composed of nine corporate officers, including the Representative Director and the head of each department. It establishes compliance rules and as a rule meets once every six months. The Committee's main activities are to create a compliance regime, draft and maintain the compliance program, monitor the company's compliance with all laws and regulations, and implement compliance education and training for employees.

The members of the Risk Management Committee are the Representative Director and the head of each department. The Committee is comprised of nine corporate officers and makes decisions related to risk management and risk management rules. It meets once every six months. This Committee anticipates compliance risk, rumor/reputation risk, operational risk, disaster risk and others and evaluates, responds to, manages, and provides information regarding these risks. The Committee considers policies and plans for responding to risks that would have a large impact on the company and diligently works to reduce the effect of all anticipated risks.

Furthermore, the RaQualia Auditing Department and our outside accounting firm closely coordinate information-sharing in order to conduct their audits effectively and efficiently. The accounting firm receives reports on audits, quarterly plans, period-ending accounts settlement results, and quarterly accounts settlement results, and seeks to improve the soundness, efficiency and execution of operations.

RaQualia has selected the accounting firm of Deloitte Touche Tohmatsu Limited to serve as our external auditor. We consistently ensure that the auditing work is performed in a fair and impartial way, and we strive to provide fair and appropriate management and financial information.