We believe that strengthening corporate governance is essential in order to increase corporate value and meet the expectations of our various stakeholders, and we are committed to accomplishing this. Fundamental Approach  We believe that it is essential to strengthen corporate governance in order to increase our corporate value as a group and meet the expectations of our stockholders and other stakeholders, in accordance with our Mission. Corporate Governance System  Our organizational architecture is based on our Board of Directors and Board of Auditors, which are the engine of the joint-stock corporation as stipulated by the Companies Act. In accordance with the Companies Act, the board of directors makes management decisions, while the Executive Committee decides other important matters.  We have also introduced an executive officer system in order to, within the scope of the law, separate and segregate management decision-making and supervisory functions from executive administration.  We have 13 board directors, including 3 representative directors, and 19 executive officers, including 11 officers who also sit on the board of directors. No outside directors have been appointed. We have 5 corporate auditors, 3 of whom are outside auditors. We have also created a Corporate Auditors’ Office, which provides comprehensive assistance with the duties of the corporate auditors (as of June 30, 2009).  We have also created a CSR Management Committee which reviews the ideal direction for our business activities from the perspective of CSR and promotes the strengthening of corporate governance.  We have an Internal Auditing Department which audits our business activities. Internal Control System  We are committed to fulfilling our Basic Policy for Building an Internal Control System, which was decided by board vote on May 16, 2006 (and partially revised on March 31, 2008 by board vote). We are building the system from the following three perspectives: (1) corporate governance; (2) risk & compliance; and (3) financial reporting.  In fiscal 2008 we gave risk-management training to executive managers (including subsidiaries) in order to advance the development of our group risk-management readiness.  The entire group operates internal controls over financial reporting accurately and effectively, in accordance with the Financial Instruments and Exchange Law. Corporate governance framework CSR Management Committee The Corporate Social Responsibility (CSR) Management Committee reviews business activities from a CSR perspective and works to enhance corporate governance. The Internal Auditing Department audits business activities. The CSR Department and Legal Department work to further enhance corporate ethics and ensure compliance. * Extract from the CSR Department 2009 (Japanese version)