Lion : Matters Subject to Measures for Electronic Provision When Convening the 162nd Annual Meeting of Shareholders for the Year Ended December 31, 2022（March 1, 2023）NEW

To Shareholders:

Matters Subject to Measures for Electronic Provision

When Convening the 162nd Annual Meeting of Shareholders

for the Year Ended December 31, 2022

• Business Report
  Matters Related to Subscription Rights to Shares Basic Policy Regarding Control over the Company Internal Control Systems
• Consolidated Financial Statements

Consolidated Statement of Changes in Equity

Consolidated Notes

• Non-consolidatedFinancial Statements

Non-consolidated Statement of Changes in

Shareholders' Equity

Individual Notes

In accordance with the provisions of laws and regulations and Article 14 of the Company's Articles of Incorporation, the above matters are excluded from the paper- based documents delivered to shareholders who have made a request for delivery of documents stating matters for which measures for providing information in electronic format are to be taken.

March 1, 2023

Lion Corporation

Matters Related to Subscription Rights to Shares

Overview of Subscription Rights to Shares Held by the Company's Directors/Audit & Supervisory Board Members (as of December 31, 2022)

(Note 1) At the 146th Annual Meeting of Shareholders held on March 29, 2007, it was approved that subscription rights to shares shall be issued to Lion's directors (excluding external directors) with the upper limit of the compensation amount (¥70 million per fiscal year) for stock options as stock-based compensation by resolution of Lion's Board of Directors, as a plan replacing retirement benefits. Based on this approval, it is resolved, at the extraordinary meeting of the Board of Directors held after the end of the Annual Meeting of Shareholders for each fiscal year, to issue subscription rights to shares for stock options as stock-based compensation to Lion's directors (excluding external directors) with the exercise price of ¥1 per share.

(Note 2) The exercise period shall be within the stated period and determined by Lion's Board of Directors. When one year has passed since a director assumed the position of director of Lion (except for cases of retirement by death), the director may exercise his or her subscription rights to shares only during the period up to the day on which 10 days pass from the day following the date when he or she loses that position.

(Note 3) To Itsuo Hama, a director, who took office as president as of January 1, 2012, 3,346 units of subscription rights to shares for stock options as stock-based compensation, which are equivalent to the difference with the amount equivalent to the option value of subscription rights to shares of which the issuance was resolved at the extraordinary meeting of the Board of Directors held on March 30, 2011, were additionally issued on January 12, 2012 by the resolution at the Board of Directors' meeting held on December 27, 2011. The amount of compensation to Lion's directors (excluding external directors) including the additionally issued portion is within the limit of ¥70 million per fiscal year.

(Note) In the exercise of each of the above subscription rights to shares, Lion plans to appropriate treasury stock, and the total number of outstanding shares is not expected to increase.

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Internal Control Systems

Matters that Lion resolved as the internal control system are as follows.

1. Basic Approach to and Status of the Internal Control System

1. Structure to Ensure that the Execution of Duties of the Lion Group's Directors and Employees Complies with Legal Requirements and the Company's Articles of Incorporation

1. Basic Stance
2. 1. The Lion Group Charter for Corporate Behavior and Behavioral Guidelines shall provide the platform for the Company's compliance structure.
   2. The president shall provide constant reinforcement regarding the basic spirit and essence of the Lion Group Charter for Corporate Behavior among directors, executive officers, Audit & Supervisory Board members and employees with the aim of increasing awareness and understanding of corporate ethics. Each and every member of the Lion Group shall adopt and pursue the credo that compliance underpins every facet of the Group's business activities.
3. Compliance Structure
4. 1. The Company shall maintain a Corporate Ethics Committee chaired by the director responsible for corporate ethics, an appointee from the Board of Directors. Covering the entire Group, this committee shall formulate and implement specific initiatives to ensure greater awareness of and compliance with corporate ethics. In the event of a violation of the Lion Group Charter for Corporate Behavior or Behavioral Guidelines, if deemed necessary by the Corporate Ethics Committee, an Ethics Investigation Committee shall be established to work toward the resolution of the issue. The Ethics Investigation Committee shall comprise specialists from outside the Group, including lawyers and certified public accountants.
   2. The Group shall designate a general manager responsible for corporate ethics who reports to the director responsible for corporate ethics. The general manager responsible for corporate ethics shall enhance and maintain the Group's compliance structure and identify and implement necessary education and training for each Group department. Complementing these measures, the Human Resources Development Center shall conduct necessary education and training as part of level-specific education. Each department shall also formulate its own rules and manuals in line with relevant laws and regulations and operate in accordance with said rules and manuals.
   3. In an effort to reinforce the supervisory function of Lion's Board of Directors, external directors who do not engage in any executive function within the Group shall be appointed to the Board.
   4. The Group shall maintain an Advisory Committee, comprising experts from outside the Company, to provide third-party opinions and advice on matters relating to legal compliance and management policy.
   5. The Group shall maintain an Auditing Office as its internal auditing division.
   6. Lion's Auditing Office shall conduct internal audits of Group companies.
   7. Lion shall dispatch Audit & Supervisory Board members to Group companies. Audit & Supervisory Board members shall conduct audits in accordance with regulatory requirements.
   8. Members of the Auditing Office, the general manager responsible for corporate ethics, members of the Corporate Planning Department and the Legal Department, and the

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Audit & Supervisory Board members shall maintain close communications with each other. In this manner, Lion shall promptly identify issues and problems relating to compliance and the compliance structure.

1. 1. Lion shall refer to its work regulations to determine the course of action in the event an employee contravenes any law or the Company's Articles of Incorporation. The Corporate Ethics Committee shall prepare and submit its final decision to the Board of Directors in the event a director contravenes any law or the Company's Articles of Incorporation.
   2. Besides items (2) (i) through (ix) above, a "AL Heart Hotline" has been established to provide direct contact with the general manager responsible for corporate ethics and external lawyers. This hotline forms a part of the Group's internal reporting system designed to address any legal breach or matter concerning compliance. In addition, the "Quality Information Hotline" has been established. In cases of doubt about product quality, personnel responsible for product development may utilize this internal reporting system to report directly to the general manager of the Reliability Assurance Department. These hotlines shall be managed based on separately prepared guidelines.
   3. In the event Audit & Supervisory Board members uncover an issue relating to the Group's compliance structure or the management of its internal reporting system (identified in item (2) (x) above), they shall provide opinions to the director responsible for corporate ethics and call for the necessary corrective measures to be formulated.
2. Response in the Event of Emergency
3. 1. The Emergency Response System shall apply to any emergency relating to legal requirements and corporate social responsibility (CSR). Under the system, the general manager of the General Affairs Department shall report such incident to the president, the director responsible for corporate ethics and the Audit & Supervisory Board members. The director of the relevant department or the Emergency Response Committee, chaired by the president, shall implement appropriate measures to resolve the situation, formulate measures to prevent recurrences and submit a report to the Executive Committee and the Board of Directors.
   2. The procedures outlined above in item (3) (i) shall be adopted in the event a director or employee of a Group company uncovers a serious breach of any legal requirement or any significant matter relating to compliance by a Group company.
   3. In the event that Group companies recognize that management guidelines or instructions from Lion contravene the law or raise issues relating to compliance, the matter shall be immediately reported to the Company's president, director responsible for corporate ethics and Audit & Supervisory Board members. The director responsible for corporate ethics, in collaboration with the Audit & Supervisory Board members, shall resolve the situation and formulate measures to prevent recurrences.

2. Management Structure for Maintenance and Storage of Information Concerning the Execution of the Duties of Lion's Directors

1. Representative directors and executive directors shall report on the status of their own executive duties to the Board of Directors in accordance with legal requirements.
2. The representative director shall formulate information preparation, maintenance and storage rules relating to the execution of directors' duties as a part of the Company's information management rules.
3. Directors shall maintain and store information pertaining to the execution of their duties in accordance with the information management rules.

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