Compliance Initiatives

The Kyocera Group has established a "Kyocera Compliance Statement" to clarify its stance towards compliance activities on a global level, which was announced both within the Company, and to external stakeholders. This Kyocera Compliance Statement has been issued across the Group, and is used to ingrain a deeper awareness of compliance issues. Starting with the General Data Protection Regulation (GDPR) in Europe, the introduction of laws stipulating strict handling of personal data, including regulations on transferring personal data outside of one's own country or region, has been accelerating worldwide in recent years. To appropriately respond to incidents of personal data breaches due to successive cyberattacks and global digital marketing initiatives, our company will work in collaboration with relevant departments and overseas group companies and will continue to investigate and implement measures related to the handling of personal information. In addition, as the Company's business activities expand outside of Japan, we must comply with personal information protection restrictions imposed by each country. After the General Data Protection Regulation (GDPR) took effect in Europe, we have seen a push to introduce strict laws concerning the handling of personal data in countries around the world, including new restrictions on the transfer of personal data and other information outside a country or region. We will continue to cooperate with all divisions and Group companies to study and implement measures for the handling of personal information to address concerns regarding to global digital marketing. Further, in a step toward addressing the recent tightening of anti-corruption laws and regulations, of which many international companies have run astray, we have published the Kyocera Group Basic Policy on Anti-Corruption as our guide for global business activities. This compliance system is defined in the anti-corruption regulations of Kyocera Corporation. Additionally, Group companies are implementing internal regulations and training employees on anti-corruption rules and procedures.

Global Five-Regional Legal and IP System

Our proactive M&A strategy has seen the number of Kyocera Group companies grow to around 300, a figure expected to increase in future. For efficiency, the Corporate Legal and Intellectual Property Group divides the globe into five regions. Each local headquarters works with the Kyocera Group companies in its region to build a system for reducing legal risk and ensuring to compliance activities. Building a network to facilitate cooperation between Group companies is vital for the efficient implementation of compliance activities globally. To this end, we established the "Kyocera Group Global Legal Compliance Meeting", for the headquarters and operating companies in each region to our policies alongside local challenges. These conferences are actively held in each of the five regions, including Americas, Europe / Middle East / Africa, Japan / Korea, China, and Asia-Pacific, prompting lively discussion based on local circumstances.

Compliance Promotion Month

We designate December of each year as Kyocera's "Compliance Promotion Month" and conduct awareness and education programs for all employees. Additionally, to provide an opportunity for each individual to re-recognize the importance of compliance activities, we issue a message from the president, share important points during morning meetings ("quick notes"), and conduct e-learning sessions for all employees. Furthermore, we are implementing new initiatives in line with the times, such as establishing a consultation desk where employees can easily ask questions about compliance via chat. By sharing these initiatives with each group company, we aim to promote compliance activities and build a robust group structure.

Compliance Meetings

At Kyocera, to promote compliance activities in the business field, we appoint a responsible person in each business division and hold meetings twice a year where these responsible persons gather. In these meetings, indirect departments and domestic group companies also participate, and we plan annual activities, check progress, share information, and exchange opinions.

Compliance Information Dissemination Site

To ensure that employees can smoothly access compliance-related information and to enhance internal information distribution, we are utilizing digital tools to build an internal site that is easy to view and understand. Moving forward, we will continue actively sharing information in line with legal revisions and changes in societal expectations to maintain and improve employees' compliance awareness.

Fair and Free Competition

The Kyocera Group bases its decisions on "what is right as a human being," and believes it is important to maintain and promote fair and free competition. As part of these activities, the Kyocera Group publishes the Kyocera Group Global Antimonopoly Law Compliance Manual and disseminates the Antimonopoly Law and the Antimonopoly Law Compliance Regulations to employees in Japan and overseas, which specifically stipulate matters to be observed as employees. The Kyocera Group conducts training on global antitrust law and complementary training for all Kyocera Group employees every two years, alternating between the two. In addition, interview-style education for management-level employees is conducted. We will continue to improve understanding of the Antimonopoly Law and ensure compliance with the Antimonopoly Law and other related laws and regulations through ongoing education. In recent years, considering the time that has passed since the introduction of the Antitrust Law Compliance Regulations, we have been confirming the operational status of these regulations within each group company and monitoring to ensure they are being appropriately implemented. By continuing education and monitoring, we aim to improve our company's understanding of the Antitrust Law and ensure strict compliance with related laws, including the Antitrust Law.

Ensuring Fairness in Outsourced and Subsidized Projects

The Kyocera Group (in Japan) has established "Management Regulations for Commissioned and Supported Projects" to clarify the management system for commissioned or supported projects funded by public research organizations or administrative agencies and to prevent misconduct, and is committed to appropriate research activities.

Measures for Anti-Corruption

The Kyocera Group has established a basic policy on anti-corruption and publicizes the basic policy in order to let its basic stance of actively working to eradicate corruption known both internally and externally. The Kyocera Group makes thorough efforts based on the Kyocera Philosophy to prevent bribery by rolling out anti-corruption regulations established at each group company. These anti-corruption regulations prohibit not only bribery such as the offering and receipt of excessive gifts or entertainment, but also activities that deviate from ordinary business practices. The Kyocera Group also provides anti-corruption training internally so that the employees are well aware of basic policies and anti-corruption regulations.

Security Trade Control System

The Kyocera Group complies with various national laws, such as the "Foreign Exchange and Foreign Trade Act" (FEFTA) related to international security trade management, and has established a security trade management system to prevent the outflow of parts for weapons of mass destruction, conventional weapons, and products and technologies that could be used for their manufacturing and development.

Measures to Ensure Security in International Distribution

Kyocera has received approval as a "Specified Exporter" and "Special Importer" from Japanese customs under the "AEO system," an international standard for ensuring and facilitating international logistics security, where mutual recognition mechanisms are established in various countries. This approval recognizes Kyocera as a business entity with a system for managing cargo security and legal compliance (compliance). This ensures the security of products delivered to overseas customers and facilitates smooth transactions.

Appropriate Information Disclosure

The Kyocera Group complies with regulations relating to the disclosure of information. The Kyocera Group endeavors to provide appropriate information without falsehoods or expressions that invite misunderstanding, in accordance with social and moral principles. Additionally, The Kyocera Group established a mechanism by which the Quality, Legal & Intellectual Property and Corporate Communications Divisions monitor product labels, manuals, catalogues, sales promotion documents, and advertising to ensure compliance with the Antimonopoly Act, Copyright Act, Act on the Protection of Personal Information, etc. in accordance with our Public Document Verification Guidelines.

Ensuring Transparency in Political Donations

The Kyocera Group may provide political donations as required from perspectives such as the realization of policy-oriented politics and contributing to the sound growth of parliamentary democracy. When we make political donations, we will comply with relevant laws and regulations including the Political Funds Control Act.

Measures for Prevention of Insider Trading

The Kyocera Group has established a management system to prevent insider trading and is working to ensure thorough awareness among its employees. Ｗe have set up an internal information management system based on the "Insider Trading Prevention Regulations," and have established a stock trading prohibition period that restricts trading during certain periods before financial results announcements. Furthermore, in an effort to ensure thorough awareness of insider trading issues among employees, we continuously engage in activities such as distributing the "Insider Trading Prevention Guide" and regularly conducting education on insider trading prevention for all employees.

Measures for Exclusion of Antisocial Groups

The Company's "Basic Policy for Internal Control" states our basic stance that "A resolute stance shall be maintained against anti-social forces and all unreasonable demands shall be refused."
In addition, the "Kyocera Activity Policy", which is a result of application of the Kyocera Philosophy to various aspects of the corporate activities, and on which the employees of Kyocera Group relay for day-to-day operation, thoroughly requires the employees to "be sure to solve the problem in a resolute attitude based on laws and regulations" against anti-social force.

Installation of Employee Consultation Hot-Line Center (Internal Reporting System)

Kyocera Group employees can consult the Employee Consultation Hot-Line Center on a diverse range of issues. Employees can seek advice and consultation, as well as report actions that are or may be in violation of laws and internal regulations relating to human rights, labor, safety and health, environment, fair business practices, etc. Measures for protection of individual privacy are clarified, and employees can consult the Hot-Line Center directly by telephone, e-mail or other means. Details of the consultation are investigated and ascertained in cooperation with the relevant divisions. This is followed by corrective action and preventive measures against recurrence. At Kyocera, consultations were undertaken on 229 matters in FY2024, and steps toward resolution were taken in each case.

Installation of a Compliance Hotline

In April 2024, the Kyocera Group established a compliance hotline to improve corporate governance, and facilitate the early detection and prevention of any issues regarding laws, regulations and compliance. Through this compliance hotline, not only employees, but anyone, including customers and business partners, can report any action by an executive officer or employee of a Kyocera Group company that violates laws and regulations, the Kyocera Group CSR Guidelines, the Kyocera Group Human Rights Policy, or the Kyocera Corporation Labor-related Code of Conduct.

Installation of the Kyocera Audit & Supervisory Board Reporting System

Kyocera Corporation implemented the Kyocera Audit & Supervisory Board reporting system as an initiative for internal control to prevent corporate scandals. Unfair sales and business transactions, acts that violate accounting laws and regulations, and in-house rules, acts that violate the anti-bribery regulations and Antimonopoly Act as well as inappropriate acts regarding quality assurance in manufacturing are subject to reporting.