Compliance / Risk Management

Compliance Basic Policy -- With Honor and Integrity

We aim to always stay in tune with society's changing tides, act with honor and integrity, understand these shifts, and maintain balance and morals. To continue being trusted by all stakeholders, HIS Group adheres to this basic policy and the HIS Group Code of Conduct., with the awareness that each one of us is the face of the organization.

HIS Group Code of Conduct

The ethical standards we are committed to upholding in society

We pledge to abide by all laws and regulations including international rules and to act with good social morals and sincerity following eight principles. If anything is against this Code, we must investigate the cause and handle the disclosing of information, making clear the responsibility and liability to prevent these occasions from reoccurring. All management and executive officers are responsible for remaining truthful to this promise, maintaining corporate organizational structure, and taking the initiative in carrying out and accomplishing these responsibilities.

1. Provide useful products and services to society

We will try our best to develop and provide useful products and services for our customers with passion and sincerity, paying full attention to safety and security for their satisfaction and trust.

2. Lead fair, transparent free trade

When selling and providing products and services to our customers, or purchasing necessary products, or receiving services from others, we will lead fair, transparent free trade and firmly stand against any unethical or corrupt business practices.

3. Handle information properly and foster sincere communication

We will fully understand the value and importance of personal information including customers and stakeholders. We will always handle it correctly, and we will not utilize the information in a way to damage this value. The information will be provided in an accurate, fair and timely manner to stakeholders with sincere communication.

4. Secure a comfortable and safe working environment

Employees must respect each other's personality and uniqueness and make their best efforts to develop useful travel products and services. Employees must draw a line between public and private matters, securing fairness in our work environment and prohibiting any unpleasant conduct. We must try to create a clean, safe, pleasant and vigorous, fresh, and rich working environment for everyone.

5. Respect diversity, personality, and originality

We pledge to uphold management practices that respect internationally recognised human rights, transcending differences of nationality, race, and religion.

6. Coexist with the local area and community

To keep good communication with the region and the community, we will contribute to them by our company's growth and prosperity. In addition, we will implement thorough organizational crisis management in preparation for the actions of anti-social forces that threaten the order and safety of society, terrorism, cyber-attacks and natural disasters.

7. Preserve the global environment

To take care of the global environment, we will make efforts to coexist with the environment through our business activities by saving energy, reducing waste, promoting recycling, and eliminating unnecessities.

8. Hope for world peace

We will promote world peace by providing opportunities for more people to understand and respect customs and cultures around the world.

Organization and management

Risk / Compliance system

Risk / Compliance Committee

The Company has put in place the necessary systems to ensure thorough risk management and compliance, and established a Risk / Compliance Committee to ensure the appropriateness of business operations through the promotion of risk management and compliance activities. This committee meets quarterly to discuss compliance, where reports from various HIS Group companies are shared and deliberated upon.
We have inherited the matters concerning subsidiary governance policies and management systems that were reviewed and improved by the ad-hoc Subsidiary Governance Review Committee between March and November 2025. This allows us to continuously promote thorough risk response and compliance from the perspective of Group Governance.

Risk Management Office

The Risk Management Office serves as the secretariat for the Risk / Compliance Committee; They collect information on risks throughout HIS Group and shares it with the Risk / Compliance Committee.
They coordinate with relevant departments to manage, analyze, evaluate, and respond to potential risks, and work to prevent their manifestation. Additionally, they work closely with designated risk and compliance officers from each HIS Group company to ensure thorough compliance.
In addition, as the secretariat of Subsidiary Governance Review Committee, we are working to strengthen cooperation among the committees and improve their effectiveness.

Governance Management Division

The aim is to establish a more robust governance structure by unifying governance-related functions, overseeing the Risk Management Office, Legal Division, Internal Control Department, and General Affairs Section. This structure will oversee the governance of the entire group and support sound business activities through risk assessment and the provision of appropriate information.

Internal Reporting System

With the aim of early detection and countermeasures against all types of risks, various consultation and reporting services have been established to handle a wide range of matters, including those related to compliance and business environments.
In addition to an internal contact point, an external contact point has been established by a specialized organization.
To prevent any disadvantageous treatment due to consultation or reporting, we ensure the confidentiality of all concerned parties and strictly manage relevant information.
This creates an environment conducive to easy reporting and consultation, enhancing self-regulation.

FY2024 Compliance promotion activities

Activity content	Results	Means	In charge
Risk / Compliance Committee	4	Face-to-face (partially online)	Committee member
Compliance training	3	Video viewing/e-learning	Risk Management Office
Risk / Compliance report sharing ・Monthly Newsletter ・E-newsletter for managers ・Case studies for HIS employees	12 12 6	List submission/Committee report	Risk Management Office
Risk / Compliance report sharing ・List of reports from each subsidiary company ・Risk / Compliance Committee	12 4	List submission/Committee report Conducted post-committee meeting for sharing	Risk Management Office
Compliance awareness survey	1	Questionnaire	Risk Management Office

Numerical Targets (HIS Standalone)

Compliance Training　6 sessions /year　Attendance Rate 100 ％

Business risks

The main items identified as risks for the HIS Group are listed on the right.
We will work to reduce and prevent risks by establishing a system to implement preventive measures and regularly checking and reviewing risk management.
Additionally, from the perspective of group-wide risk management, immediate and periodic reports are conducted from subsidiaries and affiliated companies.

a. Changes in economic and social conditions
b. Changes in market
c. Responding to technological innovation
d. Management of safety and quality of services provided
e. Service interruptions and quality deterioration due to system or equipment failures, etc.
f. Developing and securing human resources
g. Climate change and Environmental regulation
h. Governance
i. Accounting and Finance