Initiatives to Comply with the Code

【Action to implement management that is conscious of cost of capital and stock price】
・P. 17～18：Management that is conscious of cost of capital and stock price.

【Principle 1-4. Cross-shareholdings】
The Company’s policy is to examine the mid- to long-term economic rationale and future outlook of cross-shareholdings and, if cross-shareholdings are judged to contribute to improvement of the Group’s corporate value in the medium and long term, to hold shares for the purpose of stabilizing corporate management.
With respect to individual cross-shareholdings, the board regularly examines whether or not to hold shares based on a comprehensive consideration of a range of factors including the purpose of holding the shares and the associated returns and risks, and where cross-shareholdings are considered inappropriate, the sale of the shares is considered.

In addition, to exercise its rights as shareholder, the Company exercises its voting rights on all proposals and judges the pros and cons of each proposal from the viewpoint of improving the corporate value of the portfolio company over the medium and long term.

【Principle 1-7. Related-party Transactions】
In the event of a competing transactions or transactions involving conflict of interests between the Company and a Director or other related party, Tamron carries out the necessary checks, including seeking prior approval by the Board of Directors.

【Supplementary Principle 2-4-1. Ensuring diversity in the promotion of core human resources, etc.】
Tamron, which considers human resources and human rights as one of its CSR themes, makes every effort to provide employees with opportunities to develop and demonstrate their abilities in ways that respect their diversity, character and individuality, while also embracing a global perspective, value teamwork and endeavor to cultivate human resources who harness creativity. Under this policy, Tamron seeks to create a company that inspires people, provides safety and encourages people with diverse backgrounds to work actively, thereby ensuring further growth, going forward.
For detail, please refer to Tamron's website: Sustainability (https://www.tamron.com/global/sustainability/) or the Integrated Report posted on Investor Relations (https://www.tamron.com/global/ir/).

Tamron operates a defined benefit corporate pension in combination with a defined contribution corporate pension

Tamron endeavors to ensure that management of reserves for the defined benefit corporate pension is conducted under an appropriate organizational structure given that it affects not only the stable asset formation of employees but also Tamron’s financial position.

Management of reserves for the defined contribution corporate pension is undertaken by employees themselves but given that it affects the stable asset formation of employees, Tamron provides education and training on asset management.

（1）Company aims (Corporate Philosophy, etc.), management strategies and management plans

　Tamron’s Corporate Philosophy, management strategies and management plans are published in materials such as its annual security reports, financial results and presentation materials and are also published on Tamron’s website.

（2）Basic Approach and Basic Policy Regarding Corporate Governance

　Please refer to Basic Information.

（3）Policy and procedures for determining Directors’ compensation

Compensation for directors (excluding directors who are the Audit & Supervisory Committee members and outside directors) at Tamron comprises “basic compensation,” which is a form of fixed compensation, “short-term incentive compensation,” which is a kind of performance-linked monetary compensation based on factors such as business performance in a single fiscal year, and “medium-to-long-term incentive compensation,” as a kind of performance-linked stock-based compensation.
- Our basic policy for maintaining and increasing incentives is to keep an appropriate ratio of performance-based compensation and to use the medium- and long-term incentive compensation a performance and stock-based compensation, to clarify the link between business performance, stock prices, and director compensation and further heighten awareness of the importance of contributing to the improvement of business performance and the increase of corporate value over the medium and long term.
- "Basic compensation" is monthly fixed compensation, and is determined, within a maximum amount of compensation which includes basic compensation resolved at a General Meeting of Shareholders, taking into consideration factors such as the position and contribution of each director and the compensation level at other companies in the industry or companies of a similar size.
- "Short-term incentive compensation" is determined for each Director, within a maximum amount of compensation which includes basic compensation resolved at a General Meeting of Shareholders, taking into consideration factors such as consolidated business performance in a single fiscal year and a qualitative evaluation of individual performance, and it is paid in twelve equal installments.
- "Medium-to-long Term Incentive Compensation" is a performance and stock-based remuneration. The company contributes money within a maximum amount of compensation resolved by a General Meeting of Shareholders to establish a trust. The trust acquires company shares and delivers them to directors through the trust on the basis of points awarded in accordance with position and performance pursuant to the share issuance rules specified by the Board of Directors.Directors receive the Company’s shares at a certain time in each fiscal year during the trust period, with restrictions on transfer until they retire. As an assessment of business performance in a single fiscal year, we conduct a qualitative evaluation of the performance of the departments which the directors are in charge of and the issues set by each director, in addition to the evaluation of the degree of achievement of the consolidated net sales and consolidated operating income in the results forecast announced at the beginning of the fiscal year. In addition, as an assessment of medium-term business performance, we also evaluate consolidated net sales, consolidated operating income and the degree of achievement of ROE, TSR, and ESG in the final year of the medium-term management plan.
- Directors who are Audit & Supervisory Committee members and Outside directors shall be paid the base remuneration only.
- The amount of compensation of individual directors (excluding directors who are Audit & Supervisory Committee members) is determined by the Board of Directors based on deliberation by the Compensation Committee, which is chaired by an Outside Director.

- The amount of individual compensation for directors who are the Audit & Supervisory Committee members will be determined through consultation among the directors who are the Audit & Supervisory Committee members within the compensation limit resolved at the General Meeting of Shareholders.

（4）Policy and procedures for nomination of director candidates
- Candidates for directors (excluding the Audit & Supervisory Committee members) shall be those who have a high level of ability together with extensive knowledge, a strong track record and a high level of dignity and ethics. In addition, when determining the candidates, we take into account diversity in terms of gender, age, nationality and experience, etc. Candidates for outside director must have management experience at other companies or high levels of expertise or deep insight, and one or more candidates must satisfy Tamron’s criteria for independence, to strengthen their function of supervising and advising management from an independent and objective standpoint. The candidates for directors are subject to approval from the Board of Directors after deliberations within the Nomination Committee chaired by an outside director.
- Candidates for directors who are the Audit & Supervisory Committee members are determined from among those with extensive ability, knowledge, achievements, dignity and morality as well as a high level of expertise and insight in corporate management, legal affairs, financial affairs, accounting and the like in consideration of diversity. In addition, when determining the candidates, we take into account diversity. The Company names multiple candidates for outside Audit & Supervisory Committee members who satisfy the criteria for independence set by the Company and who can take on the management supervisory and advisory roles from an independent standpoint. The candidates for directors who are the Audit & Supervisory Committee members are subject to approval from the Board of Directors after consent from the Audit & Supervisory Committee.
- Dismissal of a director is to be determined by the Board of Director and after deliberations at the Nomination Committee if it is deemed appropriate due, for example, to the violation of any law, ordinance, Article of Incorporation or other rule.

（5）Explanation regarding the election and dismissal and nomination of Directors

The Notice of Convocation of General Meeting of Shareholders includes the career history of each candidate and the reasons for election.

In addition to the matters stipulated in laws and regulations and the Articles of Incorporation, Tamron sets forth matters to be decided by the Board of Directors and the scope of delegation in internal regulations.

（1）Tamron appoints independent outside directors with management experience at other companies or with high levels of expertise and deep insight, ensuring that more than half of the candidates satisfy Tamron’s independence criteria, to strengthen their function of supervising and advising management from an independent and objective standpoint.

（2）Outside directors (excluding the Audit & Supervisory Committee members who are not full-time) attend major internal meetings such as the Board of Directors meeting and the Management Meeting. Tamron also elects a lead Outside Director and puts in place systems for liaison, adjustment and collaboration between Outside Directors and management, and the Audit & Supervisory Committee.

The Company considers that an outside director is independent if he/she satisfies the standards for independence specified by Tokyo Stock Exchange and does not fall under any of the following items.

1.Executing person of the Company and its subsidiaries (hereinafter, the “Group”).

2.The Group’s major business partner (business partner who has received payment from the Group in an aggregate amount equaling no less than 2% of its annual consolidated sales) or its executing person.

3.The Group’s major business partner (business partner who has made payment to the Group in an aggregate amount equaling no less than 2% of its annual consolidated sales) or its executing person.

4.Executing person of the Group’s major lender (lender from whom the Group has borrowed funds equaling no less than 5% of the Group’s consolidated net assets).

5.The Group’s large shareholder (person holding no less than 10% of voting rights, directly or indirectly) or its executing person.

6.Representative partner or partner of audit _rm which conducts accounting audits of the Company.

7.Consultant, attorney, certified public accountant or other persons who provide professional services who annually receive no less than 10 million yen in cash or other property benefits, other than executive compensation, from the Company

8.Administration officer or other executive persons of an organization, etc. to which the Group annually donates or provides grant in aid of no less than 10 million yen.

9.Executive person of a company with which the Company has relationships through outside executive director;

10.Spouse or relative within the second degree of relationships of any person listed in 1 through 9 in the above (excluding those who are not important).

11.Any person who has fallen under 1, above, even once in the past, or

12.Any person who has fallen under any person listed in 2 through 10 in the past three years.

To ensure that the Board of Directors is able to discuss and examine matters sufficiently, make decisions swiftly and accurately, properly manage risks and supervise business execution, Tamron has decided to take the diversity and balance required to cover all of its functions and business units into consideration, have an appropriate board size of not more than 13 directors and ensure the effectiveness of the board as a whole.

Tamron discloses the skill matrix that lists the expertise and experience of each director in a notice of convocation of the General Meeting of Shareholders.

Tamron discloses the concurrent service of its Outside Directors at other companies every year through communications such as the Notice of Convocation of the Ordinary General Meeting of Shareholders and the Annual Security Reports. Tamron also discloses attendance at meetings of its Board of Directors and Audit & Supervisory Committee, and the extent of concurrent service is reasonable, allowing Outside Directors and Outside Audit & Supervisory Committee Members to dedicate the time and effort needed to properly fulfil their roles and duties.

The Company conducted a self-assessment and analysis of the effectiveness of the Board of Directors for the fiscal year 2024, aiming to enhance its effectiveness and increase corporate value. The summary of the results is as follows:

1.Method of Effectiveness Evaluation

A questionnaire was conducted for all directors, who are members of the Board of Directors, with guidance from an external institution. To ensure anonymity, responses were submitted directly to the external institution. Based on the aggregated results, the Board of Directors carried out analysis, discussions, and evaluations.

2.Evaluation Items

Evaluation items were established with advice from an external institution, taking into account recent changes in the internal and external environment, dialogue with shareholders and investors, and the progress on the previous year’s improvement plans. The key evaluation items were:

①Composition of the Board of Directors

②Operation of the Board of Directors

③Discussions at the Board of Directors

④Monitoring function of the Board of Directors

⑤Performance of internal and external directors (excluding Audit and Supervisory Committee members)

⑥Support system for directors

⑦Training for corporate officers

⑧Self-initiated efforts

⑨Operation and deliberations of the Nomination and Compensation Committees

⑩Audit and Supervisory Committee

⑪Governance Review Committee

3. Status of Improvements from the Previous Evaluation

The last effectiveness evaluation identified key areas for improvement, including strengthening the Board’s supervisory function, expediting decision-making, and enhancing sustainability initiatives.

To address these issues, we implemented measures such as transitioning to a company with an Audit and Supervisory Committee, improving Board composition (increasing independent outside directors to a majority), promoting delegation of authority, increasing the frequency of Nomination Committee meetings, formulating an ESG/sustainability strategy, expanding ESG-related disclosures (e.g., Integrated Report and website), and incorporating ESG indicators into director performance evaluations. These initiatives will continue to be pursued moving forward.

4. Summary of Evaluation Results and Future Improvement Plans

The evaluation confirmed that the Board of Directors is generally effective. However, the survey results highlighted areas requiring further enhancement, such as deepening discussions on business strategy and ESG/sustainability, improving the effectiveness of the Nomination Committee, and strengthening training for corporate officers as well as the development and operation of internal control systems. We will continue to focus on these areas to further improve the Board’s effectiveness.

To fulfil their roles, Directors are required to constantly actively gather information and deepen their understanding of Tamron’s financial position, compliance, corporate government and other matters.

When they first take up their post, they are required to acquire necessary knowledge about Tamron’s business, finance, organizations ,etc., and they must undergo training to gain knowledge about the Companies Act and other relevant laws and regulations, corporate governance and other matters required as the officer of a listed company, in order to fulfil the role and responsibilities, including legal responsibilities, of Directors or Audit & Supervisory Committee Members entrusted to them by shareholders (fiduciary duty).

After taking up their post, they are required to keep undergoing training on management, compliance and other matters on a regular basis.