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## Corporate Governance 

## Approach to Corporate Governance 

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Under the leadership of JS Group Corporation, which is operated as a pure holding company, Group operating companies work as independent partners to carry out their duties and produce superior results. 

The JS Group Corporation works to create and provide value that is attractive for all stake- holders to be able to continue as a corporate group that has the trust of society. The Company therefore recognizes strengthening of corporate governance as its most important management theme. The Company undertakes various effective measures to expedite decision-making, ensure effective and efficient business execution, and prepare an appropriate structure for Group control. 

## Outline of Corporate Governance System 

The JS Group Corporation has adopted an auditor system, with a Board of Corporate Auditors consisting of four auditors, including two outside auditors. The reason for employing this system is that by further enhancing the auditor system, we can strengthen oversight of management activities. Management therefore believes that this corporate governance system responds to the trust of shareholders and other investors. Furthermore, the Board of Directors comprises eight directors, including three outside directors, as of June 17, 2010. Each director is appointed for a term of one year. The supervision and objective advice provided by our outside directors helps to ensure transparent and timely decision-making. 

In order to enhance corporate governance of Group companies, the JS Group Corporation, which is operated as a pure holding company, is working to accelerate discussion and decision- making on management strategies, medium- to long-term policies and investment proposals that 

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