At J. Front Retailing we believe it is of utmost importance to ensure the effectiveness of the Board of Directors in order to achieve sustainable growth for the Group and improve our corporate value in the medium and long term. And to ascertain whether we are achieving adequate effectiveness, we conduct a third-party evaluation of the effectiveness of the Board of Directors every year since 2015.

Evaluation Methodology

The method used was based on a questionnaire distributed beforehand, after which “individual interviews” (Note) conducted by the third-party organization, the results of which were collated and analyzed in the form of a report, which was then deliberated by the Board of Directors.

(Note) “Individual interviews”
Based on the results of the questionnaire, individual hour-long interviews were conducted by the third-party organization in which all Directors (both Internal and Outside) were inquired about their views and awareness of issues in response to various questions concerning the Board of Directors. The results of the interviews are leading to the solving of issues at the Board of Directors.

Evaluation Items

50 items including:
● The Board of Directors’ contribution to the entire Group;
● The Board of Directors’ composition;
● Its operational status;
● The content of deliberations; and
● The effectiveness of activities of the Nomination, Remuneration and Audit Committees

Evaluation Results, Improvement Measures, Approaches to Issues, etc.

We conducted our 11th evaluation of the effectiveness of the Board of Directors between November and December 2025. Based on the results of the questionnaires given to all Directors, a third-party organization conducted individual interviews, and the details were discussed at a meeting of the Board of Directors held in February.
As a result of the effectiveness evaluation, it was confirmed that among the issues raised in the previous fiscal year-"reviewing agenda items and submission criteria," "enhancing the operation of the Board of Directors," and "strengthening the audit function"-these issues had been addressed to a reasonable extent.
On the other hand, the evaluation for FY2025 led to the identification of further issues, including "articulating the roles of the holding company and its Board of Directors" and "thorough preparation and analysis in preparation for discussions of growth strategy."
In response to this, approaches for resolving these issues were discussed again at a meeting of the Board of Directors held in March 2026, thereby articulating concrete actions and promotion frameworks that have been reflected in the agenda for the Board of Directors in FY2026.
We will continue to strive to share issues based on the evaluation of the effectiveness of the Board of Directors and further improve the effectiveness of the Board of Directors.

Corporate Governance

• Corporate Governance System

• Board of Directors

• Nomination Committee, Audit Committee, and Remuneration Committee

• Nomination/Appointment/Succession Planning

• Officer Remuneration System

• Evaluation of the Effectiveness of the Board of Directors

• Basic Capital Policy/Shareholder Return Policy/Cross-Shareholdings

• JFR Tax Policy