Relia : Notification of Disbandment of Consultative Committee

April 1, 2022

To All Concerned Parties

Relia, Inc.

2-6-5, Yoyogi, Shibuya-ku, Tokyo

(Code number: 4708, First Section of the Tokyo Stock Exchange) President: Takashi Amino

Contact: Kenichiro Iwamoto

General Manager, Corporate Communications Div.

Tel: [phone] (main)

Notification of Disbandment of Consultative Committee

At a meeting held on April 1, 2022, the Board of Directors resolved to disband the Consultative Committee for Preventing Recurrence and Improving Company-Wide Compliance Based on the Kagoshima Incident ("the Consultative Committee").

Details

• 1. Background to the establishment of the Consultative Committee and its activities

  As disclosed in the Notification Regarding Establishment of Consultative Committee of July 7, 2020, in light of inappropriate telephone solicitation practices and inappropriate editing of the audio recordings from such telephone solicitations at the Company's Kagoshima Center, the Company established the Consultative Committee,a comprised mostly of external experts, to consider policies for preventing recurrence of similar incidents and for detecting and addressing them at an early stage, and also to improve company-wide compliance.

  As described in "Attachment 2. Record of Consultative Committee's Activities" disclosed in the Notice of Formulation of Basic Policy for Initiatives to Restore Trust (Outline) of August 7, 2020, since its establishment, the Consultative Committee has examined and analyzed the problems at the Company from various angles, including examining not only the inappropriate business operations at the Kagoshima Center but also past compliance-related incidents and conducting questionnaire surveys and interviews of staff. Based on these activities, the Committee has given the Company a great deal of harsh yet appropriate critical feedback.

  After the formulation of the Outline, the Consultation Committee convened once a month, in principle,b and conducted broad-ranging activities, including monitoring progress of action plans, providing critical feedback and advice on improvements, as necessary, and exchanging opinions with the company officers at the Board of Directors.

• 2. Background to the decision to disband the Consultative Committee

(1) Company efforts toward recurrence prevention measures

The Company formed the following eight committees, each led by a full-time Director, Audit and Supervisory Committee Member, or Division General Manager to implement the measures described in the Outline. These committees are taking action to reform the Company's management style into one that is a return to its corporate philosophyc and that addresses

a

The members of the Consultative Committee are as follows. The Company's CCO, CIO, and Audit & Supervisory Board Member of the Company also attended the committee as observers.

- Chairperson	Akira Takeuchi	Attorney at Law, Certified Fraud Examiner, Proact Law Office
- Member	Minoru Hayashi	Certified Public Accountant, KPMG FAS Co., Ltd.
- Member	Mikako Yusa	Independent Outside Director of the Company

b

From April 2021, when establishment of the various measures set forth in the Outline's action plans was completed and the process entered the in-house roll-out phase, progress reports and feedback/advice in response have been exchanged by e-mail every month, with the Consultative Committee meeting in person on a quarterly basis.

The Consultative Committee has been convened on a total of 14 occasions since its establishment, and its members have also attended Board of Directors meetings as observers and provided guidance and advice to the Company by e-mail and telephone, as required.

c

Corporate philosophy

people and issues squarely, and to develop a solid business foundation. Further, in the Mid-term Management Plan 2023 announced in May 2021, the Company adopted a vision statement of "Relia will be reborn as the 'No. 1 Reliable Company' for each and every stakeholder" and, under the leadership of executive management, is making further efforts to build a solid business foundation and restore trust.

[Eight committees and their state of progress]

• 1) Company-wide permeation of Outline and sharing of sense of crisis with employees (Committee for Proactive Example-Setting by Executive Management)

  •  Creates opportunities for Executive Management Meeting members to talk directly with employees to achieve better mutual communications between executive management and staff (ongoing).

  •  Holds informal meetings for middle management level, namely heads of divisions, departments, and offices, to also exchange opinions with their respective organizations' staff and increase mutual understanding (ongoing).

    2) Formulation and Permeation of the Standards of Conduct (Standards of Conduct Committee)

  •  Held workshops around the country for employees to talk about "Reborn Relia" with each other.

  •  Set up a Formulation of New Standards of Conduct Project team, with employees as its members, to propose the new standards of conductd and measures for their permeation to executive management and obtain their approval.

  •  Held in-house briefings and workshops, displayed posters, distributed pocket books, and produced novelty items with employees' participation to permeate the Standards of Conduct within the Company.

  •  Incorporated the Standards of Conduct into various training curricula, recommended them as themes for regular 1-on-1 meetings between supervisors and subordinates, and shared examples of their incorporation in individual divisions within the Company with the aim of promoting understanding of the Standards of Conduct.

    3) Reform of personnel systems (Personnel Systems Committee)

  •  Engaged external experts to introduce and implement systems for evaluation of ethics and personal qualities (ongoing).

  •  Changed performance evaluation methods to methods that not only measure results but that also include a comprehensive evaluation of processes and forward-looking initiatives.

  •  Redefined the roles of managers and reviewed appointment criteria.

  •  Conducted employment satisfaction (ES) surveys, including evaluation of Outline measures.

  •  Currently considering the introduction of a new personnel system to raise the quality of the Company's people and enable them to demonstrate their abilities.

• 4) Reinforcement of quality control (Quality Control Committee)

   Formulated a Quality Control Basic Policy, which divides the Company's quality into separate categories, to raise the quality of overall operations, including the prevention of inappropriate solicitations.



Placed quality control officers in head office and individual sites of the business divisions to reinforce quality control systems that coordinate with the Quality Control Department newly established in the Corporate Division. Providing support for regular inspections and quality control activities at individual sites (ongoing).

 Providing support for KPI management at individual sites, sharing examples, and promoting measures for development of managers in tandem with head office, with aim of strengthening KPI management (ongoing).

 Promoted measures for improvement of company-wide survey results regarding appropriateness of contents of reports

・ Mission Statement: Sharing Inspiration and Excitement with more People and Corporations, We declare to contribute further development of the Society and lead to the Employees' and their Families' happiness, through the growth of our company.

• ・ The Four Promises:

• ・ customers'

• 1. We promise to value our customers and will continually commit to do so in order to maintain our trusts

• 2. We promise to value harmony and aim to have a Corporate Culture that is free and open-minded.

• 3. We promise to aim to continually challenge ourselves and be creative.

• 4. We promise to value courtesy & civility and will strive to train ourselves in self-management and basic behaviors.

d

The Standards of Conduct newly formulated by the Company are as follows:

・ Slogan: ・ Standards of Conduct:What we value - For Reliable Ring and you -

"With Integrity":

We will honestly and earnestly face our daily work squarely, seriously, and single-mindedly.

"With Smile":

We will uphold diversity and inclusion and never forget gratitude and respect and act as a team.

"With Challenging Spirits":

We will enjoy the process and continue to challenge without fear for changes and failure.

"With Professionalism":

We will provide a "plus-one" value with pride and responsibility.

to client companies.

• 5) Reinforcement of information security (Information Security Reinforcement Committee)

  •  Implemented emergency responses to prevent data falsification and other similar misconduct.

  •  As a more fundamental response, formed a project team under the CIO, appointed external experts, formulated and promoted action plans (ongoing).

  •  Established a new Information Security Management Department as a dedicated department directly under the CIO to promote action plans, including re-organization of in-house rules, investigation of incidents, and self-inspection (ongoing).

    6) Reinforcement of corporate functions (Corporate Reinforcement Committee)

  •  In addition to strengthening the corporate division's functions through personnel reinforcements, promoting mindset reform throughout the entire division by holding manager training camps (ongoing).

  •  As well as working on the permeation of in-house rules, etc. through dialogue and partnering with the business divisions, promoting operational efficiency improvement measures (ongoing).

  •  Established a new project assessment committee for the overall evaluation of risk, and concurrently set up project assessment functions within the business divisions, building a framework for support by the corporate division.

• 7) Reinforcement of branch offices (Branch Offices Reinforcement Committee)

  •  Held regular informal meetings for branch office heads and Management Meeting members to exchange opinions, with the objective of reinforcing site functions.

  •  Reviewed business division support and meeting bodies in each area with the aim of permeation and understanding of Outline measures and company-wide measures.

  •  Made it compulsory for branch companies/offices to conduct induction training for new operators and pre-promotion training for supervisors (SV).

  •  Abolished system for intra-divisional outsourcing, which obscures the chain of command

  •  Abolished dedicated centers in each business division that hinder personnel mobility and make it easy for personnel to become isolated, and changed to a center for use across the entire company under the management of head office.

• 8) General review of operationse (General Review Committee)

   Conducted a company-wide review of the appropriateness of contents of reports made to client companies  Made information, including contract details and operational environment, visible for each project.

(2) Handover to the Board of Directors

The Consultative Committee has commended to a certain extent the progress that has been made with the Outline and the executive's efforts in that regard. Further, in addition to increasing the number of independent outside directors and striving to strengthen the Board of Directors' governing systems, the Chair of the Consultative Committee and the Board of Directors have reflected on the responses at the time of the incident in question, discussed the actions that the Board of Directors, Outside Directors, and Audit & Supervisory Committee members should take in the event of similar incidents of misconduct, and deepened their recognition and insights into compliance.

On that basis, the Company and the Consultative Committee have reached an agreement to disband the Consultative Committee and to hand over its functions to the Board of Directors. Accordingly, the Board of Directors has resolved at today's meeting to disband the Consultative Committee.

3. Future strengthening business foundations

With strong resolve to ensure that such a scandal never happens again, to fulfill its social mission as part of the social infrastructure, the Company will proceed with reforming its management style into one that is a return to its Corporate Philosophy and that addresses people and issues squarely, and with the development of a solid business foundation.

Finally, once again, the Company extends its profound apologies to all its stakeholders, including consumers, client companies, and shareholders, for the great inconvenience that this incident caused, and resolves to push forward with all its might to become the "No. 1 Reliable Company" that it has declared in its Mid-term Management Plan 2023, so that its employees can continue to take pride in working for Relia, Inc., and the Company can continue to earn the trust of society.

We hope we may continue to rely on your understanding and support of our business into the future.

e

8) General Review Committee was amalgamated into 4) Quality Control Committee in April 2021.