Under an executive corporate officer system, we have built our corporate governance system based on the three pillars: 1) realizing clarity in management accountability and prompt decision-making, 2) improving management transparency, and 3) ensuring sound and stable management.

The Board makes management decisions and monitors business execution. The Board meets once a month in principle, and holds additional meetings as needed. We brought an outside director onto the Board to further strengthen the supervisory function in regard to business execution.

In addition to their business execution responsibilities, executive officers meet as the Executive Committee to deliberate and make important decisions.

The Board of Corporate Auditors mainly deliberates on the topics and the decisions of the Board of Directors and Executive Committee. The majority of corporate auditors is comprised of outside auditors. They attend the Board of Directors and Executive Committee meetings and are provided with important materials to ensure a full grasp of conditions at our company.

The Internal Audit Office conducts internal audits in cooperation with the Board of Corporate Auditors. Based on the results of these audits, guidance is provided and reports are made to the Executive Committee. Particularly important items are deliberated by the Board of Directors in cooperation with the Internal Audit Office. The office also assists the outside director and corporate auditors through the provision of information on operations and so on.

To support the Board of Directors and Board of Corporate Auditors, and promote transparent and appropriate management, in addition to the Executive Committee we have established the following bodies:
1) the Nomination & Compensation Committee makes recommendations to the Board of Directors on nominations for directors and executive officers, and also evaluates them and makes compensation proposals; 2) the Corporate Governance Committee debates various themes related to corporate governance and makes recommendations to the Board of Directors as necessary; 3) the Compliance Committee debates various themes related to compliance, and disseminates relevant information companywide and makes recommendations to the Board of Directors as necessary; 4) the Disclosure Committee deliberates whether the Annual Securities Report (inclusive of the Quarterly Securities Report) that is submitted to the external auditor(s) has been prepared through the appropriate Financial Controls for the Reporting Process (FCRP); and 5) the Management Advisory Committee, which includes outside experts, offers objective evaluations and advice on a variety of topics.

Representative Director, Chairman & President

Michio Fukuda

Representative Director, Senior Managing Executive Officer

Yoichi Endo

Director, Senior Managing Executive Officer

Taise Kuboki

Director, Managing Executive Officer

Kenichi Sakurai

Director, Managing Executive Officer

Katsuji Tokimatsu

Director, Managing Executive Officer

Tsuyoshi Matsuda

Director, Managing Executive Officer

Toshihiro Igarashi

Director, Managing Executive Officer

Hidenari Asai

Director

Akira Kato

Full-time Corporate Auditor

Hiroshi Shinmyo

Corporate Auditor

Tetsuro Yokoyama

Corporate Auditor

Wataru Maekawa

Corporate Auditor

Makoto Takahashi

*Among the above directors, Mr. Akira Kato is an outside director as defi ned by Item 15, Article 2 of the Companies Act.
* Among the above corporate auditors, Messrs. Hiroshi Shinmyo, Tetsuro Yokoyama and Wataru Maekawa are outside corporate auditors as defi ned by Item 16, Article 2 of the Companies Act.