Interview with the Outside Directors

Kemori In the four years I have served as outside director, I have developed two major impressions of the Board of Directors. The first is the free-spirited discussions at meetings. At a majority of Board of Directors meetings, inside board members must listen carefully to the opinions of outside board members without interjecting with their own opinions. In this context, I like how Board of Directors meetings at NAGASE have become venues for open discussion in both directions, with some members also voicing counterarguments to the opinions of outside board members on occasion. The second impression is the steady pace of change, even though it is not that quick. Four years ago, the ratio of outside directors was 20%. In 2019, the ratio was roughly 30%, with five inside directors and two outside directors. In 2020, the number of outside directors increased to three people, gradually increasing the ratio to nearly 40%. In the interest of diversity, NAGASE’s outside directors are now having gender diversity, advancing its corporate governance structure further.

In my interactions with management to date, I have taken a basic stance of posing questions from perspectives that differ from the inside directors. Until 2019, there were two outside directors, and we had opportunities to comment on issues outside our field of expertise. Now that the number of outside directors has increased to three, I can let the other two outside directors focus on their fields of expertise, and I am able to happily focus on my own field. I think that Board of Directors meetings can be improved by cutting down on time spent making comments for the sake of just saying something, and spending more time on discussions about long-term topics, such as investment policies and financial aims.

Nonomiya One attractive aspect of NAGASE is its corporate culture. Employees of different ages and positions share the same philosophy. While being a company proud of its old traditions, NAGASE has an open atmosphere where employees can have conversations with a sprinkling of humor, giving me the impression of a sense of unity and dignity in the workforce. Employees may not realize this, but looking in from the outside, I see a rock-solid corporate culture at NAGASE that I have grown fond of.

In terms of the unique value that only NAGASE can provide, I believe it is derived from its business model as a Japanese-style trading company, and a specialized trading company at that, while also having manufacturing operations. NAGASE’s business model in itself is high added value. I believe there is great potential waiting to be tapped in this business model.

Ijichi NAGASE has been able to continue growing for about 200 years, which in itself is a major accomplishment, but to have done that, there must have been some sort of value. I believe this value is its pervasive management philosophy that “we recognize our responsibility to society and offer beneficial products and services while maintaining the highest standards of integrity.” This shared value system has been passed down through the generations, from employee to employee. I am also impressed with the caliber and talents of management. In a world being affected by the COVID-19 pandemic, I expect NAGASE to continue work on groundbreaking chemical reactions as a leading Business Designer. I expect NAGASE to develop challengeable business, and increase corporate value while helping to find solutions for social issues.