Tax Transparency

Tax Payment Policy

Hulic considers compliance to be one of its most important management matters, complies with applicable laws and regulations and the spirit of the law, and engages in sincere and fair corporate activities that do not go against social norms. In line with our Compliance Manual based on the “Basic Principles of Corporate Conduct” and “Our Code of Conduct,” Hulic ensures the transparency of transactions, including tax affairs, and in accordance with the spirit of law, pays taxes appropriately and fairly in all countries where we do business. The president, representative director is responsible for the policy on the tax payments. Further, we will build relationships of trust with tax authorities in each country by increasing tax transparency without using tax planning or tax havens intended to avoid taxes.

Board of Director Oversight

Financial reports such as the Company's consolidated financial statements are submitted to the Board of Directors for approval in accordance with laws and regulations and the Company's Articles of Incorporation after they have been audited by an external accounting auditor. Additionally, Audit & Supervisory Board members receive reports and the Board of Directors responds promptly when the accounting auditor discovers fraud, or points out inadequacies or issues including our tax affair.

Audit

Ernst & Young ShinNihon LLC conducts audits of the financial statements and internal controls as an Independent Accounting Auditor.

Tax Payments by Country

Currently, our business and investment activities in countries other than Japan are extremely limited, thus tax payments by Hulic Co., Ltd. (non-consolidated), by country in FY2023 was 100% in Japan and the United States. The Group's business bases are located only in Japan. The amount of taxes paid by country was as follows.

Hulic Co., Ltd. (non-consolidated)

• *Total current income taxes and deferred income taxes were counted.