To strengthen and advance company-wide sustainability management, we have created two conferencing bodies.

Kioxia Group's sustainability strategies, policies and targets are discussed and decided at Sustainability Strategy Meetings, which are chaired by the President & CEO. Members consist of executive officers, who regularly review progress and report any significant issues to the Board of Directors.

The Sustainability Committee, chaired by the Executive Officer in charge of Sustainability, comprises the heads of corporate divisions and Kioxia Corporation's business divisions. They discuss sustainability issues and indicators and check the progress of activities based on the strategies and policies formulated at the Sustainability Strategy Meetings.

In addition, where necessary we have set up appropriate task forces under the Sustainability Committee to debate key sustainability issues, to implement measures to address these, and manage progress.

These meeting bodies are managed by the Sustainability Division, which is dedicated to promoting the Kioxia Group's sustainability activities.

In FY2023, we continued discussions on KPIs¹ considered essential for addressing our sustainability issues (Sustainability Materiality), monitored the progress of the 30 KPIs, and in response to social demands, reset some of the targets. We have also incorporated these non-financial indicators into our medium-term management plan, which is integrated into our financial indicators and overall business plan.

Kioxia Group has acquired certification by the International Organization for Standardization (ISO) in the categories of Quality, Environment and Occupational Health and Safety Management Systems, and we work to retain these and obtain updated certifications on an ongoing basis.

Kioxia Holdings Corporation is also a member of the Responsible Business Alliance (RBA). We accordingly fulfil the responsibilities specified in the RBA Code of Conduct, undertaking our own CSR activities and requiring our suppliers to do the same. Kioxia Corporation's headquarters and manufacturing sites, Yokkaichi Plant, Kioxia Iwate Corporation and Solid State Storage Technology Corporation, conduct self-assessments based on the questionnaire published annually by the RBA to ensure that internal controls in the areas of workforce, health and safety, environment, ethics, and management systems are appropriate. In addition to this, our manufacturing sites voluntarily undergo third-party audits by the RBA once every two years to assess the soundness of their business activities.

In the RBA third-party audits, which were conducted between 2021 and 2023, all manufacturing sites (Yokkaichi Plant, Kioxia Iwate Corporation, Solid State Storage Technology Corporation) were found to have appropriate management controls in the audited areas of labor, health and safety, environment, ethics, and management systems, and were awarded Platinum, the highest status in the RBA certification program.

Through the acquisition of third-party assessments, we keep abreast of the latest sustainability requirements and work to address any relevant issues. These activities ensure that our sustainability efforts are properly evaluated, and that our customers and other stakeholders can feel secure in doing business with us.

To raise sustainability awareness across the entire Kioxia Group, the President & CEO and other senior executives communicate the importance of sustainability management policies and practices in corporate strategy meetings at the beginning of each half semester. In addition, education covering sustainability activities is provided for new graduates and those newly appointed to managerial positions, as well as during job-specific training and development for employees in sales, procurement and other functions.

Kioxia Group distributes the Kioxia Sustainability Handbook to all its employees; this explains the basic concepts of sustainability management.

In addition, the company newsletter issued to employees and their families covers a wide range of sustainability-related topics; everything from women's career advancement to the installation of solar panels.

In FY2023 we provided an e-learning program for our executives and employees to deepen their understanding of our sustainability management. We also conducted a questionnaire to help us improve the educational content.

Furthermore, in FY2023, the Kioxia Group established a new award system with the aim of stimulating sustainability activities among its employees. The awards are presented twice a year to those whose activities have achieved particularly outstanding results.

Through this program, we aim to increase opportunities for each and every employee to look at society from a broader perspective, to rethink their work in terms of social issues, and to consider solutions to these issues. We will continue our efforts to nurture human resources and foster a corporate culture in which employees keep social issues in mind while engaging in their work.

In order for the Kioxia Group to promote sustainability management in a unified manner, it is necessary to create a system that promotes understanding and addressing of sustainability issues at our sites and affiliates. In FY2023, we established new secretariats to promote sustainability management at Kioxia Corporation's Yokkaichi Plant, Yokohama Technology Campus and Kioxia Iwate Corporation, the production and R&D sites of the Kioxia Group.

At the sustainability meetings held at each site and affiliated company, the progress of activities being carried out at the site to achieve the sustainability materiality KPIs the entire Group is working on is visualized and managed, as is their progress in reviewing working styles and building better relationships with local communities.

Now that the Kioxia Group's head office divisions, sites and affiliates have established a common framework for working together on sustainability, we will continue to strengthen our activities in this area as a united group.