Board of Directors and Independent Directors - Mitsui · Jenifer Rogers External Director Izumi Kobayashi Special Dialogue In Pursuit of Corporate Governance ... , I think the most

1 MasamiIijima 2 TatsuoYasunaga 3 ShintaroAmbe 4 MotomuTakahashi

5 HiroyukiKato 6 YoshihiroHombo 7 MakotoSuzuki 8 KeigoMatsubara 9 ShinsukeFujii

10 IkujiroNonaka 11 ToshiroMuto 12 IzumiKobayashi 13 JeniferRogers 14 HirotakaTakeuchi

11011 13 12 142

34 56 78 9

Board of Directors and Independent DirectorsAs of June 21, 2016

MITSUI & CO., LTD. ANNUAL REPORT 201666

MasamiIijima 8years/81,172shares

RepresentativeDirector,

ChairmanoftheBoardofDirectors

1974 JoinedMitsui&Co.,Ltd.

2015 RepresentativeDirector,Chairmanofthe

BoardofDirectors(currentposition)

TatsuoYasunaga 1year/21,441shares


PresidentandChiefExecutiveOfficer


2015 RepresentativeDirector,PresidentandChief

ExecutiveOfficer(currentposition)

ShintaroAmbe 4years/29,466shares

RepresentativeDirector,ExecutiveVicePresident


2014 RepresentativeDirector,ExecutiveVice

President(currentposition)

MotomuTakahashi New/42,258shares

RepresentativeDirector,ExecutiveVicePresident


2016 RepresentativeDirector,ExecutiveVice

President(currentposition)

HiroyukiKato 2years/33,027shares


ExecutiveVicePresident

ChiefInformationOfficer(CIO),

ChiefPrivacyOfficer(CPO)


2016 RepresentativeDirector,ExecutiveVicePresident,

CIO,CPO(currentposition)

YoshihiroHombo 2years/25,112shares


SeniorExecutiveManagingOfficer


2014 RepresentativeDirector,SeniorExecutive

ManagingOfficer(currentposition)

MakotoSuzuki 1year/44,605shares


SeniorExecutiveManagingOfficer

ChiefComplianceOfficer(CCO)


2015 RepresentativeDirector,SeniorExecutive

ManagingOfficer,ChiefComplianceOfficer(cur-

rentposition)

KeigoMatsubara 1year/11,531shares

RepresentativeDirector,ExecutiveManagingOfficer

ChiefFinancialOfficer(CFO)


2015 RepresentativeDirector,ExecutiveManaging

Officer,ChiefFinancialOfficer(currentposition)

ShinsukeFujii New/12,186shares

RepresentativeDirector,ExecutiveManagingOfficer


2016 RepresentativeDirector,ExecutiveManaging

Officer(currentposition)

Directors YearsasaDirector/NumberofMitsuisharesheld

IndependentDirectors YearsasaDirector/NumberofMitsuisharesheld

IkujiroNonaka 9years/19,594shares

ExternalDirector

1958 JoinedFujiElectricCo.,Ltd.

1977 Professor,ManagementFaculty,NanzanUniversity

1979 Professor,NationalDefenseAcademyofJapan

1982 Professor,InstituteofBusinessResearch,HitotsubashiUniversity

1995 Professor,GraduateSchoolofKnowledgeScience,JAIST

1997 XeroxDistinguishedProfessorinKnowledge,WalterA.HaasSchoolof

Business,UniversityofCalifornia,Berkeley

2000 Professor,GraduateSchoolofInternationalCorporateStrategy,

HitotsubashiUniversity

2006 ProfessorEmeritus,HitotsubashiUniversity(currentposition)

2007 FirstDistinguishedDruckerScholarinResidence,

DruckerSchoolofClaremontGraduateUniversity(currentposition)

ExternalDirector,Mitsui&Co.,Ltd.(currentposition)

2012 SpeciallyAppointedProfessor,WasedaUniversity(currentposition)

ToshiroMuto 6years/9,966shares

ExternalDirector

1966 EnteredtheMinistryofFinance

1999 Director-GeneraloftheBudgetBureau,MinistryofFinance

2000 AdministrativeViceMinister,MinistryofFinance

2003 SpecialAdvisor,MinistryofFinance

DeputyGovernor,BankofJapan

2008 Chairman,DaiwaInstituteofResearchLtd.(currentposition)

2009 Director,Principal,TheKaiseiAcademy

2010 ExternalDirector,Mitsui&Co.,Ltd.(currentposition)

IzumiKobayashi 2years/1,337shares

ExternalDirector

1981 JoinedMitsubishiChemicalIndustries,Ltd.

(currentlyMitsubishiChemicalCorporation)

1985 JoinedMerrillLynchFuturesJapanInc.

2001 President,MerrillLynchJapanSecuritiesCo.,Ltd.

2002 ExternalDirector,OsakaSecuritiesExchangeCo.,Ltd.

2007 ViceChairperson,JapanAssociationofCorporateExecutives

2008 ExecutiveVicePresident,MultilateralInvestmentGuaranteeAgency,

WorldBankGroup


2015 ViceChairperson,JapanAssociationofCorporateExecutives

(currentposition)

JeniferRogers 1year/1,046shares

ExternalDirector

1989 JoinedHaightGardnerPoor&Havens(currentlyHolland&KnightLLP)

1990 RegisteredasAttorneyatLaw,admittedinNewYork

1991 JoinedIndustrialBankofJapanLimited,NewYorkBranch

(currentlyMizuhoBank)

1994 JoinedMerrillLynchJapanSecuritiesCo.,Ltd.

2000MerrillLynchEuropePlc

2006 BankofAmericaMerrillLynch(HongKong)

2012 GeneralCounselAsia,NEWAsurionAsiaPacificJapanLLC(currentposition)


HirotakaTakeuchi New/0shares

ExternalDirector

1969 JoinedMcCann-EricksonHakuhodoCo.,Ltd.

1976 Lecturer,HarvardBusinessSchool

1977 AssociateProfessor,HarvardBusinessSchool

1983 AssociateProfessor,HitotsubashiUniversity-Facultyof

CommerceandManagement

1987 Professor,HitotsubashiUniversity-FacultyofCommerceandManagement

1998 DeanofTheGraduateSchoolofInternationalCorporateStrategy,

HitotsubashiUniversity

2010 ProfessorEmeritus,HitotsubashiUniversity(currentposition)

Professor,HarvardBusinessSchool(currentposition)


MITSUI & CO., LTD. ANNUAL REPORT 2016 67

JojiOkada 1year/42,889shares

Full-timeAudit&SupervisoryBoardMember


2015 Full-timeAudit&SupervisoryBoardMember

(currentposition)

HiroyasuWatanabe 7years/4,504shares

ExternalAudit&SupervisoryBoardMember

1969EnteredtheMinistryofFinance

1997Director-General,TokyoTaxationBureau,National

TaxAgency

1998Director-General,CustomsandTariffBureau,

MinistryofFinance

2000President,PolicyResearchInstitute,Ministryof

Finance

2002Commissioner,NationalTaxAgency

2004Professor,GraduateSchoolofFinance,

AccountingandLaw,WasedaUniversity

2009ExternalAudit&SupervisoryBoardMember,

Mitsui&Co.,Ltd.(currentposition)

TakashiYamauchi 1year/47,185shares

Full-timeAudit&SupervisoryBoardMember


2015 Full-timeAudit&

SupervisoryBoardMember

(currentposition)

HarukaMatsuyama 2years/69shares


1995AppointedassistantjudgeatTokyoDistrictCourt

2000RegisteredasAttorneyatLaw,joinedHibiyaPark

LawOffices

2002PartnerofHibiyaParkLawOffices(current

position)



1 JojiOkada

2 TakashiYamauchi

3 HiroyasuWatanabe

4 HarukaMatsuyama

5 HiroshiOzu

HiroshiOzu 1year/308shares


1974AppointmentasPublicProsecutor

2007ViceMinisterofJustice

2012AttorneyGeneral

2014RegisteredasAttorneyatLaw



1 23 54

Audit&SupervisoryBoardMembers YearsasanAudit&SupervisoryBoardMember/NumberofMitsuisharesheld

IndependentAudit&SupervisoryBoardMembers YearsasanAudit&SupervisoryBoardMember/NumberofMitsuisharesheld

Full-time and Independent Audit &

Supervisory Board MembersAs of June 21, 2016


President

TatsuoYasunaga*PresidentandChiefExecutiveOfficer;

Chairman,InternalControlsCommittee;HeadofCrisisManagementHeadquarters

ExecutiveVicePresidents

ShintaroAmbe*ExecutiveVicePresident;InfrastructureProjectsBusiness

Unit;IntegratedTransportationSystemsBusinessUnit;

EnergyBusinessUnitI;EnergyBusinessUnitII;Chairman,

Power&EnergyStrategyCommittee

MotomuTakahashi*ExecutiveVicePresident;Iron&SteelProductsBusiness

Unit;Mineral&MetalResourcesBusinessUnit;Healthcare&

ServiceBusinessUnit;ConsumerBusinessUnit

HiroyukiKato*ExecutiveVicePresident;ChiefInformationOfficer;Chief

PrivacyOfficer;CorporateStaffUnit(CorporatePlanning&

StrategyDivision,InvestmentAdministrativeDivision,

InformationTechnologyPromotionDivision,Regional

BusinessPromotionDivision,CorporateCommunications

Division,Environmental・SocialContributionDivision,

BusinessSupportingUnit(EachPlanning&Administrative

Division)),DomesticOfficesandBranches;Business

Innovation&Incubation;EnvironmentalMatters;Chairman,

InformationStrategyCommittee;Chairman,CSRPromotion

Committee;Chairman,BusinessInnovationCommittee

SeniorExecutiveManagingOfficers

YoshihiroHombo*SeniorExecutiveManagingOfficer;BasicMaterialsBusiness

Unit;PerformanceMaterialsBusinessUnit;Nutrition&

AgricultureBusinessUnit;FoodBusinessUnit;Food&Retail

ManagementBusinessUnit

MakotoSuzuki*SeniorExecutiveManagingOfficer;ChiefCompliance

Officer;CorporateStaffUnit(Secretariat,Audit&Supervisory

BoardMemberDivision,HumanResources&GeneralAffairs

Division,LegalDivision,Trade&LogisticsControlDivision,

CorporateLogisticsDevelopmentDivision,NewHeadOffice

BuildingDevelopmentDepartment);BusinessContinuity

Management;NewHeadquarterProject;Chairman,

ComplianceCommittee;Chairman,DiversityPromotion

Committee;HeadofEmergencyResponseDivision

AtsushiKumeSeniorExecutiveManagingOfficer;ChiefOperatingOfficer

ofEMEA(Europe,theMiddleEastandAfrica)BusinessUnit

SatoshiTanakaSeniorExecutiveManagingOfficer;ChiefOperatingOfficer

ofAsiaPacificBusinessUnit

TakeshiKanamoriSeniorExecutiveManagingOfficer;ChiefRepresentativeof

Mitsui&Co.,Ltd.inChina

YasushiTakahashiSeniorExecutiveManagingOfficer;ChiefOperatingOfficer,

AmericasBusinessUnit

ExecutiveManagingOfficers

KeigoMatsubara*ExecutiveManagingOfficer;ChiefFinancialOfficer;

CorporateStaffUnit(CFOPlanning&Administrative

Division,GlobalControllerDivision,FinanceDivision,Risk

ManagementDivision,InvestorRelationsDivision,Business

SupportingUnit(FinancialManagement&AdvisoryDivision

I,II,III,IV));Chairman,DisclosureCommittee;Chairman,

J-SOXCommittee

ShinsukeFujii*ExecutiveManagingOfficer;IT&CommunicationBusiness

Unit;CorporateDevelopmentBusinessUnit;Chairman,

PortfolioManagementCommittee

KatsunoriAikyoExecutiveManagingOfficer;GeneralManagerofNagoyaOffice

ToruSuzukiExecutiveManagingOfficer;ChiefRepresentativeofMitsui

&Co.,Ltd.inSouthWestAsia;ManagingDirector,Mitsui&

Co.,IndiaPvt.Ltd.

YasushiYoshikaiExecutiveManagingOfficer;GeneralManagerof

InvestmentAdministrativeDivision

YasuyukiFujitaniExecutiveManagingOfficer;ChiefOperatingOfficerof

CorporateDevelopmentBusinessUnit

TakuMorimotoExecutiveManagingOfficer;ChiefOperatingOfficerof

PerformanceMaterialsBusinessUnit

NobuakiKitamoriExecutiveManagingOfficer;ChiefOperatingOfficerofIT&

CommunicationBusinessUnit

MotooOnoExecutiveManagingOfficer;GeneralManagerofHuman

Resources&GeneralAffairsDivision

YukioTakebeExecutiveManagingOfficer;Chairman&ManagingDirector

ofMitsui&Co.(Australia)Ltd.

ShinsukeKitagawaExecutiveManagingOfficer;GeneralManagerof

OsakaOffice

ManagingOfficers

ShingoSatoManagingOfficers;PresidentofMitsui&Co.(Thailand)Ltd.

NoboruKatsuManagingOfficers;ChiefOperatingOfficerofIron&Steel

ProductsBusinessUnit

KatsuraoYoshimoriManagingOfficers;ChiefOperatingOfficerofBasic

MaterialsBusinessUnit

OsamuToriumiManagingOfficers;GeneralManagerofLegalDivision

TakakazuUchidaManagingOfficers;GeneralManagerofFinanceDivision

HiromichiYagiManagingOfficers;ChiefOperatingOfficerofIntegrated

TransportationSystemsBusinessUnit

ShinichiroOmachiManagingOfficers;ChiefOperatingOfficerofMineral&

MetalResourcesBusinessUnit

HiroyukiTsurugiManagingOfficers;ChiefOperatingOfficerofEnergy

BusinessUnitI

HirotatsuFujiwaraManagingOfficers;ChiefOperatingOfficerofEnergy

BusinessUnitII

KenichiHoriManagingOfficers;ChiefOperatingOfficerofNutrition&

AgricultureBusinessUnit

ItaruNishimuraManagingOfficers;ChiefOperatingOfficerofConsumer

BusinessUnit

MasazumiTakahashiManagingOfficers;GeneralManagerofInternalAuditing

Division

ShinHatoriManagingOfficers;ChiefOperatingOfficerofFood&Retail

ManagementBusinessUnit

ShinjiTsuchiyaManagingOfficers;PresidentofMitsui&Co.(Brasil)S.A.

HiroshiMeguroManagingOfficers;ChiefRepresentativeofMitsui&Co.,Ltd.

inCIS;GeneralDirectorofMitsui&Co.MoscowLLC

KimiroShiotaniManagingOfficers;GlobalController

MikiYoshikawaManagingOfficers;ChiefOperatingOfficerof

FoodBusinessUnit

YoshioKometaniManagingOfficers;ChiefOperatingOfficerofInfrastructure

ProjectsBusinessUnit

ToshiakiMaruokaManagingOfficers;PresidentofMitsui&Co.(Canada)Ltd.

MotoakiUnoManagingOfficers;President&ChiefExecutiveOfficerof

P.T.MitsuiIndonesia

KojiNagatomiManagingOfficers;ChiefOperatingOfficerofHealthcare&

ServiceBusinessUnit

KoheiTakataManagingOfficers;GeneralManagerofPlanning&

AdministrativeDivision(Food&Services)

SayuUenoManagingOfficers;GeneralManagerofCorporatePlanning

&StrategyDivision

YumiYamaguchiManagingOfficers;President&CEO,MitsuiGlobalStrategic

StudiesInstitute

ManagingOfficers *ServesconcurrentlyasDirector

Managing OfficersAs of June 21, 2016


ChairmanoftheBoard

MasamiIijima

OneyearhaspassedsinceJapan’sCorporateGovernanceCodecameintoeffect.

Duringthistime,theCompanyhasreinforceditseffortstomaintainandenhanceaneffective

corporategovernancestructurethatis“befittingofMitsui.”

ThisspecialcorporategovernancesectionfeaturesadiscussionbetweenMasamiIijima,

Mitsui’sChairmanoftheBoardwhoalsoservesasChairmanoftheGovernanceCommittee,

IzumiKobayashiandJeniferRogers,bothExternalDirectorsandGovernanceCommitteemembers.

ExternalDirector

JeniferRogers

ExternalDirector

IzumiKobayashi

SpecialDialogue

In Pursuit of Corporate Governance

Befitting of Mitsui


Iijima:Ratherthanmerelymeetingexternalstandards,I

thinkthemostimportantelementinensuringrobustcorpo-

rategovernanceistoenhancetheBoardofDirectors’busi-

nessexecutionauditingandsupervisoryfunctions,in

collaborationwiththeexternaldirectorsandtheAudit&

SupervisoryBoardMembers.Mitsuihasbeenimplementing

astringofinitiativesandrefinementssinceasfarbackas

2003tosupportthis,forexample,byappointingexternal

directorsandvoluntarilyplacingadvisorybodiestothe

Board.Ms.Rogersjoinedusasanewexternaldirectorin

June2015,raisingourtotalnumberofexternaldirectorsto

five,accountingforoverone-thirdofalldirectors.Alsoin

2015,weintroducedmeetingsspecificallyforexternaldirec-

tors,enablingthemtofreelydiscussissuesandexchange

opinions,drawingontheirdiversebackgroundsandper-

spectives.Thesemeetingsareanotherwaytoensurethat

theideasandopinionsofourexternaldirectorsareeffec-

tivelyincorporatedintoourdeliberations.

Otherrevisionstothecompositionofouradvisoryboards

supporteffectivegovernance.Forthethreeadvisorycommit-

teestotheBoard—namely,theGovernanceCommittee,the

NominationCommittee,andtheRemunerationCommittee—

anexternaldirectoralwaysservesasthechairifinternaldirec-

torscomprisethemajorityofacommittee.Wealsoensure

thatexternaldirectorsmakeupoverhalfofthecommitteein

caseswherethecommitteechairisaninternaldirector.For

deliberationsatboardmeetings,whilerulesstatethatan

agendaitemiscarriedifoverhalfoftheBoardvotesaffirma-

tively,thereareinstanceswherewereopendeliberationsif

thereareobjectionsfromexternaldirectors.Ithinkthisis

goodevidencethatwevaluetheopinionsofourexternaloffi-

cersandwanttohelpthemfulfilltheirresponsibilities.

Weareconstantlyawareoftheneedtomaintaineffec-

tivecorporategovernance,andthisisunderpinnedbyour

Audit&SupervisoryBoard.

OngoingInitiativestoStrengthenCorporateGovernance

InMarch2016,wesurveyedalldirectorsandAudit&

SupervisoryBoardMembersregardingtheorganizationand

managementoftheBoardandindividualjobresponsibili-

ties.TheoutcomeofthissurveywasevaluatedbytheBoard

ofDirectorsafterdiscussionattheGovernanceCommittee.

NearlyalldirectorsandAudit&SupervisoryBoardMembers

weresatisfiedwiththeexerciseofmanagementauditing

functions,andIthinkthisisausefulreflectionoftheprog-

resswehavemadeincorporategovernance,particularly

during2015.

Rogers:Generaltradingcompanieshaveafairlycomplex

businessstructure,soexternaldirectorsneedtounderstand

awiderangeofinformation.Intheyearsincemyappoint-

mentIhavereceivedveryusefulexplanationsfromthesec-

retariatoftheBoardofDirectorsfrombothaqualitativeand

quantitativeperspective.Ihavedeliberatedcloselywiththe

Board,workinghardtograspthemarketenvironmentfacing

eachbusinessandconstantlyconsideringhowbestto

ensureeffectivemanagementsupervisionofMitsui.Ihave

alsofoundalotofvalueinexchangingopinionswithman-

agersofothercompanies,andreferencingtheseopinionsto

considerthestateofandwayforwardforcorporategover-

nanceatMitsui.

Iijima:AsMs.Rogersnoted,Mitsuiisextremelydiverseinits

businesssectorsandglobalfootprint.Thismeansthatour

externaldirectorshavetobeabletoofferaparticularly

broadperspective.Thecombinedexperienceandexpertise

ofMs.Rogersandourotherexternaldirectorshasallowed

ourinternaldirectorstoconsidermattersinwaysthatthey

simplycouldnothavedoneontheirown.

HistoryoftheGovernanceSystem

1994 2002 2003 2004 2005 2006 2007 2012 2013 2014 2015 2016

SeparationofManagement

andExecution

ExternalDirectors

ExternalAudit&Supervisory

BoardMembers*

AdvisoryBodiestothe

BoardofDirectors

CorporateGovernanceand

InternalControlPrinciples

* ThenumberofExternalAudit&SupervisoryBoardMembers(numberappointed/upperlimitaccordingtotheArticlesofIncorporation),wastemporarily4/7and

subsequently3/5.

Reducedthenumberofdirectorstoanumberthatcanparticipateindeliberations,introducedtheManagingOfficerSystem

1

1

2

GovernanceCommittee

NominationCommittee

RemunerationCommittee

3

34

5


Kobayashi:WiththeintroductionofJapan’sCorporate

GovernanceCode,theopinionsofexternaldirectorshavean

evengreaterinfluenceonacompany’smanagement.More

importantlyperhaps,theresponsibilitiesofexternaldirectors

havealsoincreased,astheynowhavetoconsidermatters

fromawiderperspectivewhenofferingtheiropinions.

Accordingly,Ithinkweareseeingaheightenedsenseofcre-

ativetensionandresponsibilityamongexternaldirectors.In

fact,itgoesevenfurtherthanthat,becausewiththeintro-

ductionoftheStewardshipCodethereisrenewedconsider-

ationbeinggiventowhatacorporationshouldbeandhow

itshouldbehave—considerationthatgoeswellbeyondquan-

titativeinformationdisclosuresuchasearningsandROE.

IagreewithMr.Iijimathattherecentlyestablishedexter-

naldirectormeetingshavebeenanexcellentinitiative.

Thesemeetingsallowustoshareourviewsonvariousman-

agementissues,andalsotounderstandtheperspectivesof

theAudit&SupervisoryBoardMembersandindependent

auditors.Ifindthisparticularlyuseful.

Iijima:CommunicationwiththeAudit&SupervisoryBoard

Members,independentauditors,andtheInternalAuditing

Divisionhelpsourexternaldirectorsbetterunderstandthe

Company’sbusiness.Weintroducedthiscommunication

opportunityinresponsetocommentswereceivedwhen

evaluatingtheBoard’seffectiveness.Theexternaldirectors

havealsoexpressedtheirdesiretocontributemoreactively

tobusinessplanning.Lookingahead,Iwouldliketoreflect

theopinionsoftheexternaldirectorsintheformulationpro-

cessforournextmedium-termmanagementplan,aswellas

ournext10-yearlong-termmanagementvision.

Rogers:Withmybackgroundasanattorneyandalsoasa

foreigner,Ibelievetherearemanythingsexpectedofmeby

theCompany’sshareholdersandemployees.Asan

American,Iwasbroughtupinaculturewheredebating

issuesopenlyandrigorouslyiscommonplace.Assuch,Itake

thisapproachatBoardmeetingsandaskquestionsfrom

everyangle,whichIthinkdiffersfromthewayissuesaretyp-

icallydeliberatedinJapaneseculture.IthinkBoardmeetings

shouldbeaforumfordirectorstoexchangeinformationand

opinionsfrombothaqualitativeandquantitativeperspec-

tive,drawingoutthediverseperspectivesofexternaldirec-

torsandincorporatingthoseideasintotheCompany’s

management.

TheRoleofExternalDirectorsAmidaChangingBusinessEnvironment

Kobayashi:It’snotonlytheenvironmentforcorporategov-

ernancethatischanging—thecorporatebusinessmodels

arealsodrasticallychangingasdigitizationcontinuesto

advancearoundtheworld.Whenwetalkaboutinnovation,

wetendtofocusontechnologyitself.However,Ibelieve

thatso-calledsoftcapabilitiesthatworktoeffectivelyutilize

innovativetechnologyinindustriesandmarketsarealso

important.AsMitsuiwithoutadoubthascorestrengthsin

thesecapabilities,Ibelievethatopportunitiesforthe

Companytocreatesignificantvaluewillincreaseaswego

forward.Informulatingourlong-termmanagementvision,

itisvitalthatwearequicktorecognizechangesinmarket

trendsandcustomerneeds,aswellaschangesinthecriteria

investorsusetoevaluateusasacompany.Iwouldalsolike

anopportunityfortheexternaldirectorstogetinvolvedin

researchanddiscussiononfuturemarkettrendsandbusi-

nessmodelscenarios,assuch,weasexternaldirectorswill

suggestusefulbusinessthemesandnewperspectives.

Iijima:That’sagoodpoint.WithJapanchangingdrastically,

Mitsuialsohastochange.FortheBoardofDirectorstofunc-

tioninthebestwaypossible,wemustembodytheconcept

ofChallenge&Innovation,which,liketheconceptsof

PeopleFirstandOpen-Mindedness,isacomponentofour

managementphilosophy.Thatincludesmakingthebest

possibleuseofourexternaldirectors’skillsandexperience.

Goingforward,Iwouldliketofacilitateopen-mindedcom-

municationthatleveragesthesystemofeightexternaloffi-

cers,includingAudit&SupervisoryBoardMembers,toitsfull

potential.Bypoolingtogetherourcumulativeknowledge

throughthiskindofcommunication,wewillbeableto

enhanceourdiscussionsonstrategicdirectionandreflect

theopinionsoftheexternalofficerswithinourbusiness

plansandlong-termmanagementvision.

SpecialDialogue

InPursuitofCorporateGovernanceBefittingofMitsui


MakingMitsuiStrongerthroughCommunicationandEffectiveCorporateGovernance

Rogers:AlthoughMitsuihasarelativelyhighnumberof

externaldirectorscomparedwithotherJapanesecompanies,

thereneedstobeanappropriatebalanceontheboard

becauseinternaldirectorshaveadeepunderstandingofthe

Company’scomplexbusinessstructure.Mitsuioffersexternal

directorsasubstantialamountofinformationonindividual

projectsthathelpsustounderstandspecificstrategiesand

projectbackgrounds,whichinturnenhancesthequalityof

ourdiscussions.However,IwouldliketoseetheCompany

provideopportunitiesforustogiveouropinionfroma

broaderperspectiveregardingthefuturemarketenviron-

ment,businessportfoliosandothersuchmatters.Thiswill

makeourdiscussionsmuchmoresignificantandrelevantto

theCompany’smanagement.

Iijima:Perhapsonewaytoachievethatistoavoidbeing

constrainedbytheboardmeeting.Iwouldliketoincrease

opportunitiesfortwo-waycommunicationbetweenexternal

directorsandmanagingofficersandemployees,particularly

indiscussionsonbusinessstrategy.Increasingtheamount

oftimewehavetodirectlyexchangeopinionsisnotonly

usefulforouron-sitebusinessexecution,italsoallowsusto

hearthevaluableopinionsoftheexternaldirectorsconcern-

ingtheselectionofmanagingofficersandemployeestothe

managerialranksanddecisionsonasuitablecandidateto

takeovertheCEOposition.

Kobayashi:Itoowouldliketoseemoreopportunitiesfor

two-waycommunication.Asanexternaldirector,Iwould

liketogainacloserunderstandingoftheCompany’son-site

operations,soIcangetmoreofafeelfortheCompany’s

approachatthebusinessfrontline.Iwouldalsoliketo

enhancethequalityofdiscussionsatthedirectorlevel,

whichisonewaytomeettheexpectationsoftheCompany’s

shareholdersandotherstakeholders.

Iijima:Corporategovernanceissomethingthatevolveswith

thetimesandwithchangesinthebusinessenvironment.AsI

statedbefore,corporategovernanceismeaninglessifacom-

panyimplementsitinformonly.Ihopewecontinuetoincor-

poratetheproposalsofourdirectorsandAudit&Supervisory

BoardMembers,includingtheremarksmadeherebyMs.

KobayashiandMs.Rogers.Ithinkthatpartofourcorporate

evolutionistopursueacorporategovernancestructurethat

iseffectiveandtrulyreflectswhoweareasacompany.

Fromabusinessperspective,itwouldbenaiveofusto

believethatwecansurviveandprosperwithinourcurrent

frameworks.Wehavetoconstantlydevelopourbusinessto

realizeastrong,attractiveMitsuithatcansucceedinanyera.

However,asweareunabletochangeourbusinessovernight,

thelong-termsupportofourshareholdersisessential.Ifwe

wanttocontinuebeingworthyofthissupport,itisimportant

forustoenhanceourdialoguewithallourstakeholders—par-

ticularlyshareholdersandotherinvestors—andensurewide-

spreadunderstandingofourstrategyandpotential.Ifirmly

believeMitsuihasaverybrightfuture,andIhopeourstake-

holdersmaintainakeenlevelofinterestandanticipation.


TheCorporateGovernanceFramework

FrameworkforExecutionofBusiness

Election/Dismissal Election/Dismissal Election/Dismissal

Placingimportant

itemsontheagenda,

reportingon

businessexecution

Appointmentand

dismissal;surveillance

ofselection,dismissal

andconductofdutiesAuditing

AuditingAdvice

Reporting

Coordination

Coordination

CoordinationAccounting

audits

BoardofDirectors

Governance

Committee

Nomination

Committee

Remuneration

Committee

Audit&Supervisory

BoardMembers/

Audit&SupervisoryBoard

IndependentAuditors

InternalAuditingDivision

GeneralMeetingofShareholders

CorporateGovernanceSystem

OrganizationalFormat CompanywithAudit&SupervisoryBoard

NumberofDirectors 14(ofwhom5areexternalDirectors)/Term:1year

NumberofAudit&SupervisoryBoardMembers 5(ofwhom3areexternalAudit&SupervisoryBoardMembers)/Term:4years

RatioofExternalDirectors 35.7%

RatioofFemaleDirectors/Audit&Supervisory

BoardMembers15.8%

OrganizationSupportingDecisionMakingof

BoardofDirectorsGovernanceCommittee,NominationCommittee,RemunerationCommittee

IndependentAuditor DeloitteToucheTohmatsuLLC/Term:1year

Mitsui&Co.,Ltd.CorporateGovernanceand

InternalControlPrincipleshttp://www.mitsui.com/jp/en/company/outline/governance/system/

CorporateGovernanceReport http://www.mitsui.com/jp/en/company/outline/governance/outlook/

MeetingsoftheBoardofDirectors(FY2016) 16meetings(including1extraordinarymeeting)

MeetingsoftheAudit&SupervisoryBoard

(FY2016)18meetings

Conditions of Corporate Governance


AppointmentofDirectors

Mitsuiselectscandidatesforpositionsofdirectorgivingcon-

siderationtothefollowingappointmentstandardfordirec-

tors.Selectionofcandidatesforpositionsofdirectoris

conductedafterconfirmationisobtainedfromthe

NominationCommitteethatthenecessaryrequirements

basedontheselectionprocessesandtheappointmentstan-

dardfordirectorsestablishedbytheNominationCommittee

arefulfilled.

•Personwithexcellentoverallcharacterwhopossesses

qualitiesvaluableforthemanagementofMitsui

•Personpossessingbothstrongleadershipskillsandhigh

moralcaliberandwithlaw-abidingspiritandastrong

intentiontocontributetopublicinterest

•Personwithnohealthconcernsfortheexecutionofduties

•Personpossessingcapabilityforsmoothperformanceasa

directorof“decisionmakingrelatedtotheexecutionof

operationsofthecompany”and“oversightoftheexecu-

tionofdutiesbydirectors”tobeconductedbytheBoard

ofDirectors

•Personexcellingincapability,forecastandinsighttomake

bestjudgmentsfortheCompanystrictlyincompliance

withdutyofcareofagoodmanageranddutyofloyalty

expectedofadirectorandinaccordancewiththe“business

judgmentrule”

PolicyonTrainingforDirectors

Uponassumption,opportunitiesaregiventodirectorsfor

gainingfullunderstandingofthebusiness,financialaffairs,

organization,etc.ofthecompany,theCompaniesActof

Japanandrelatedlawsandregulations,corporategover-

nanceandinternalcontroltoensurethattheymayfulfill

theirdutiesincludingtheroleexpectedofdirectorswhichis

mandatedbytheshareholders(fiduciaryresponsibility)and

legalresponsibility.Furthermore,opportunitiesaregivenfor

keepingthemuptodateasnecessary.

TheBoardofDirectorsisthehighestmanagementmonitoringbodyatMitsui.EachDirector,asamemberoftheBoardof

Directors,overseestheexecutionofdutiesoftheRepresentativeDirectors,Directors,andManagingOfficers,whoarerespon-

sibletorunthebusinessofMitsui.

Toachievetheprioritizedvalueof“clarificationofthedivisionofrolesbetweenmanagementoversightandexecution”and

ensurethesupervisoryfunctionsofitsBoardofDirectors,MitsuiintroducedtheManagingOfficerSysteminApril2002and

transferredsignificantauthorityfortheexecutionofbusinesstotheManagingOfficers.Mitsuiappointsnomorethanthe

numberofdirectorsnecessarytoenableeffectivedeliberations.Fromtheperspectiveofpromotingthedivisionofmanage-

mentsupervisionandexecutionroles,theCompanyprioritizestheappointmentofexternaldirectorswhenitincreasesthe

numberofBoardmembers.

AtBoardofDirectors’meetings,mattersthataredeliberatedorreportedonabidebytheCompany’sinternalregulations.In

additiontomattersconcerningfundamentalpoliciesrelatedtomanagement,importantbusinessexecutionandmattersautho-

rizedbyresolutionsoftheGeneralMeetingofShareholders,Mitsuipassesresolutionsonmattersdeterminedbylawandcom-

panystatute.Wealsoreceivereportsregardingmattersdeterminedbylawandthestatusofimportantbusinessoperations.

RegularmeetingsoftheBoardofDirectorsareheldonceeverymonthinprincipleandextraordinarymeetingsareheld

fromtimetotimeatanytimeifdeemednecessary.

EvaluationofEffectivenessof

theBoardofDirectors

EachyeartheBoardofDirectorsanalyzesandevaluatesits

effectivenessasawhole,takingintoconsiderationtherele-

vantmatters,includingtheself-evaluationsofeachDirector,

anddisclosesasummaryoftheresults.

IntheyearendedMarch31,2016,theopinionsofall

DirectorsandAudit&SupervisoryBoardMemberswere

soughtinregardtothecompositionandoperationalstatus

oftheBoardofDirectors,theirindividualresponsibilities,etc.

AfterdiscussionswereheldbytheGovernanceCommittee,

theeffectivenessoftheBoardofDirectorswasevaluatedby

theBoardofDirectorsbasedontheseopinions.Belowisa

summaryofthisevaluation.

•TheBoardofDirectorshasawealthofdiversityandhaspre-

paredastructuretosecureeffectivemanagementoversight.

•EachDirectorandAudit&SupervisoryBoardMember,

uponunderstandingtheBoardofDirectors’dutytocarry

outoversightandauditingofthemanagement,isfulfilling

theirresponsibilitiesasaDirectororAudit&Supervisory

BoardMemberbasedontheirindividualexpertisefroman

objectivestandpointseparatefrombusinessexecution.

•TheBoardofDirectorsis,inregardtothemanagement’s

decisionmaking,fullyperformingitsmanagementover-

sightfunctionbyidentifyingproblemsasnecessaryafter

consideringrisksfrommultipleangles,andearnestly

respondingtobeneficialcomments/suggestionsfrom

theexternalDirectorsandexternalAudit&Supervisory

BoardMembers.

TheCompanywillcontinuestrivingtoimprovetheeffec-

tivenessoftheBoardofDirectors.

BOARDOFDIRECTORS


AdvisoryBodiestotheBoardofDirectors

MitsuihasestablishedtheGovernanceCommittee,theNominationCommitteeandtheRemunerationCommitteeasadvisory

bodiestotheBoardofDirectorsinwhichtheExternalDirectorsandExternalAudit&SupervisoryBoardMembersareincluded

ascommitteemembersorchair.

Advisorybodies GovernanceCommittee NominationCommittee RemunerationCommittee

Committeechair ChairmanoftheBoardofDirectors ExternalDirector ExternalDirector

Composition

(including

committeechair)

ChairmanoftheBoardofDirectors

PresidentandChiefExecutive

Officer

3ExternalDirectors

1InternalDirector

1ExternalAudit&Supervisory

BoardMember


Officer

2ExternalDirectors

2InternalDirectors


Officer

2ExternalDirectors

2InternalDirectors

Role

Thiscommitteeistaskedwithstudy-

ingthestateandfuturevisionof

Mitsui’scorporategovernancewhile

takingintoconsiderationtheview-

pointofExternalDirectorsand

ExternalAudit&SupervisoryBoard

Members.

Thiscommitteeistaskedwith

establishingtheselectionstan-

dardsandprocessestobeapplied

innominatingDirectorsand

ManagingOfficersandevaluating

proposalofDirectornomination.

Thiscommitteeistaskedwith

studyingthesystemanddecision-

makingprocessrelatedtoremuner-

ationandbonusesforDirectorsand

ManagingOfficersaswellasevalu-

atingtheremunerationproposals

forDirectors.

Resultsinthe

fiscalyearended

March31,2016

TheGovernanceCommitteemet

threetimesandcarriedoutreviews

ofmatterssuchframeworkofcorpo-

rategovernanceoftheCompany,

amendmentofthe“Mitsui&Co.,Ltd.

CorporateGovernanceandInternal

ControlPrinciples”andtheeffective-

nessoftheBoardofDirectors.The

CommitteereportedtotheBoardof

Directorstheresults.

TheNominationCommitteemet

threetimesandcarriedouta

reviewofthestandardsandthe

processfornominatingDirectors

andManagingOfficers.The

Committeereportedthatthecandi-

datesmettheselectioncriteriaof

theDirectors.

TheRemunerationCommitteemet

onceandcarriedoutareviewofthe

remunerationstructureforDirectors

andManagingOfficers.Basedon

thereview,theCommitteereported

totheBoardofDirectorstherevi-

sionofbasicremunerationof

ExternalDirectors.

ConditionsofCorporateGovernance


AppointmentofAudit&Supervisory

BoardMembers

TheAudit&SupervisoryBoarddeliberatesonwhetherthecan-

didatefortheAudit&SupervisoryBoardMembersisagreeable

ornot,priortothesubmissionbytheBoardofDirectorstothe

GeneralMeetingofShareholders.TheBoardofCorporate

AuditorsholdspriordiscussionwiththeDirectorsonproce-

duresfordecidingAudit&SupervisoryBoardMembercandi-

datesanddeterminingproposalsregardingcandidates.

MitsuiappointsExternalAudit&SupervisoryBoard

Memberswiththeobjectiveoffurtherheighteningtheneu-

tralityandindependenceoftheauditingsystem,andinpartic-

ularitisexpectedthattheExternalAudit&SupervisoryBoard

Memberswillgiveobjectivevoicetotheirauditingopinion

fromthestandpointofneutrality,buildingonsuchfactorsas

independence.WhenselectingcandidatesforExternalAudit&

SupervisoryBoardMembers,theAudit&SupervisoryBoard

takesintoconsiderationsuchfactorsasrelationswithMitsui,

itsmanagementandimportantstaffmembersandconfirms

thatnoissueswithindependencearise.

SupportSystems

TheAudit&SupervisoryBoardMemberDivisionisanorga-

nizationtoassistintheperformanceofthedutiesofthe

Audit&SupervisoryBoardMembers,andassigntothe

Divisionatleastthreefull-timeemployeeswiththeappro-

priateknowledgeandabilitiesnecessaryforthiswork.

•CooperationwithInternalAudits

Full-timeAudit&SupervisoryBoardMembersfrequently

exchangeinformationwiththeInternalAuditingDivision,

whichisanorganizationresponsibleforinternalcontrolsand

riskmanagementunderthedirectcontrolofthePresidentand

CEO,inadditionto,inprinciple,attendingallofthefeedback

sessionsonregularinternalauditsbytheInternalAuditing

Division.TheGeneralManageroftheInternalAuditingDivision

AsacompanywithanAudit&SupervisoryBoard,Mitsui’sAudit&SupervisoryBoardMembershaveamandatefromtheshare-

holderstomonitortheexecutionofdutiesbytheDirectors.WhileeachofthefivecurrentlyappointedAudit&SupervisoryBoard

Memberscarriesoutauditingasanindependentbody,theAudit&SupervisoryBoardisinplacetoserveasthesoleandexclu-

siveconsultativebodyformingopinionsrelatedtoauditsandtoensuretheauditingactivitiesbytheAudit&SupervisoryBoard

Membersareconductedinaneffectivemanner.

AuditingbytheAudit&SupervisoryBoardMemberscoversavarietyofareas,amongwhichareexecutionofdutiesby

Directors,decision-makingprocessesatthemeetingsoftheBoardofDirectorsandothers,statusofconstructionandopera-

tionoftheinternalcontrolsystem,independenceoftheIndependentAuditors,effectivenessoftheinternalcontrolsystems,

systemoffinancialreporting,accountingpoliciesandprocessingoffinancialinformation,auditoffinancialstatements,

reportsfromtheIndependentAuditors,andthesystemofdisclosure.

MeetingsoftheAudit&SupervisoryBoardareheldoncepermonthasageneralruleinordertoreceivereports,holddis-

cussionsandmakedecisionsonimportantaudit-relatedmatters.

Full-timeAudit&SupervisoryBoardMembersattendimportantinternalmeetingsandmeetingsofcommittees,including

theCorporateManagementCommittee.InadditiontoperiodicmeetingsbetweentheAudit&SupervisoryBoardMembers

andtheChairmanandthePresidentandCEO,Full-timeAudit&SupervisoryBoardMembersalsoreceivereportsand

exchangeopinionsduringindividualmeetingswithDirectorsandManagingOfficersandholdregularmeetingswiththeoffi-

cersandgeneralmanagersinchargeofthecorporatestaffdivisions.

periodicallyreportsontheplansandresultsofinternalaudits

totheAudit&SupervisoryBoard.TheAudit&Supervisory

BoardMembers,asnecessary,requestreportsontheinternal

controlsystem,riskevaluationandothermattersfromthe

InternalAuditingDivisionandinternalcontrol-relateddivisions,

andalsoaskfortheircooperationonmattersrelatedtoaudits.

Also,Audit&SupervisoryBoardMembers,including

ExternalAudit&SupervisoryBoardMembers,attendmeet-

ingsoftheBoardofDirectorsand,inthesamemanneras

Directors,receiveregularreportsoninternalauditresultsand

plansthroughtheBoardofDirectors.

•RelationshipwithIndependentAuditors

Attheendofthefiscalyear,theIndependentAuditorsreportto

theAudit&SupervisoryBoardtheauditproceduresandresultsof

auditsonaccountingandinternalcontrolsandexchangeopin-

ionsonthese.Duringafiscalyear,theAudit&SupervisoryBoard

MembersholdmonthlymeetingswiththeIndependentAuditors

andreceivereportsfromtheIndependentAuditorsabouttheir

auditplans,theitemsoffocusinaudits,thestatusofauditsand

othermatters.Inthemeetings,theparticipantsexchangeinfor-

mationandhavediscussionsontheexecutionofeffectiveand

efficientaccountingauditsandinternalcontrolaudits.

PolicyonTrainingforAudit&SupervisoryBoard

Members

Uponassumption,opportunitiesaregiventoAudit&

SupervisoryBoardMembersforgainingfullunderstanding

ofthebusiness,financialaffairs,organization,etc.ofthe

company,theCompaniesActofJapanandrelatedlawsand

regulations,corporategovernanceandinternalcontrolto

ensurethattheymayfulfilltheirdutiesincludingtherole

expectedofAudit&SupervisoryBoardMemberswhichis

mandatedbytheshareholders(fiduciaryresponsibility)and

legalresponsibility.Furthermore,opportunitiesaregivenfor

keepingthemuptodateasnecessary.

AUDIT&SUPERVISORYBOARD


Stockoptionschemeas

stock-basedcompensationwith

stockpriceconditions

Stockoption

Performance-related

bonuses

Fixedbasic

remuneration

Performance-relatedbonus

basedonprofit

Fixedbasicremuneration

RequiredtopurchaseMitsui’ssharesinanamountequiva-

lenttoatleast10%ofhisorherfixedbasicremuneration

StructureofRemuneration

Incentiveformedium

andlongterm

Incentivefor

shorttermForDirectors

ForAudit&

SupervisoryBoard

Membersand

ExternalDirectors

Purchasingshare

* Theretirementcompensationprogramhasbeenabolished,andexceptforthosepaymentsthatwereapprovedpriortotheabolitionof

theprogram,noretirementcompensationispaid.

RemunerationofDirectors

Takingintoconsiderationtheresultofthedeliberationatthe

RemunerationCommittee,whichischairedbyanExternal

Director,theremunerationofDirectors(excludingExternal

Directors)isdeterminedasasumoffixedbasicremuneration,

performance-relatedbonusesbasedontheprofitfortheyear

attributabletoownersoftheparentandstock-basedcompen-

sationstockoptionswithstockpriceconditionsasmedium-

andlong-termincentivecompensationandlimitedtowithin

theamountsresolvedattheGeneralMeetingsofShareholders.

•Performance-relatedbonusespaidtoDirectorsotherthan

ExternalDirectorsarecalculatedbasedonaformulathatthe

RemunerationCommitteehasdeemedappropriateandthe

BoardofDirectorshasapprovedsubsequently.Totalperfor-

mance-relatedbonusesare0.1%ofprofitfortheyearattrib-

utabletoownersoftheparent(¥500millionifprofitforthe

yearattributabletoownersoftheparentisgreaterthan

¥500billion).Individualamountstobepaidoutarecalcu-

latedbasedonthecategoryofpositionofeachDirector.

•Thestockoptionschemeisgrantedtodirectorsinorderto

havethemsharethebenefitsandrisksofstockpricefluctua-

tionswiththeCompany’sshareholdersandtogivethem

greaterincentivetomakecontributionstoimprovementsin

medium-andlong-termbusinessperformanceandcorpo-

ratevalue.Underthestockoptionscheme,subscription

rightstoshares,uptoannualamountsof¥500millionand

500,000shares,areassignedtoallDirectors.Theperiodfor

therighttoexercisesubscriptionrightstosharesis27years

fromthedayfollowingthepassageofthreeyearsfromthe

allotmentdate.Theexercisepriceissetat¥1.Inthecaseeli-

giblerecipientslosetheirDirectorand/orManagingOfficer,

and/orAudit&SupervisoryBoardMemberstatus,and10

yearspassfromthefollowingdayofsuchforfeiture,theyare

nolongerabletoexercisetheirsubscriptionrightstoshares.

•EachDirector(excludingExternalDirectors)isrequiredtopur-

chaseMitsui’ssharesinanamountequivalenttoatleast10%

ofhisorhermonthlyremunerationbutlessthan¥1million

throughtheMitsuiExecutives’ShareholdingAssociation.

•Directorsarenotpaidretirementcompensation,withthe

exceptionofthosepaymentsthatwereapprovedpriorto

theabolitionoftheprogram.

AsfortheExternalDirectors,inordertomaintainthe

positionofaneutralthirdparty,theremunerationislimited

toafixedremunerationwhichdoesnotincludeaperfor-

mance-relatedportion,andthereisnoobligationofshare

purchasingfortheExternalDirectors.

RemunerationofAudit&SupervisoryBoardMembers

RemunerationoftheAudit&SupervisoryBoardMembersis

determinedthroughdeliberationamongtheAudit&

SupervisoryBoardMembers,thetotalofwhichshouldnot

exceedtheamountdeterminedattheGeneralMeetingof

Shareholders.Audit&SupervisoryBoardMembersreceive

onlymonthlyfixedremuneration,whichisnotrelatedtothe

performanceofMitsui.Retirementcompensationisnotpaid

totheAudit&SupervisoryBoardMembers.

Remuneration

CategoryofPosition

Numberof

Recipients*1

(¥million)

Basic

Remuneration Bonus

Stock

Option

Total

Remuneration*2

Directors

(ExcludingExternal

Directors) 12 715 0 94 809

Audit&Supervisory

BoardMembers

(ExcludingExternal

Audit&Supervisory

BoardMembers) 4 127 — — 127

ExternalDirectorsand

ExternalAudit&

SupervisoryBoard

Members 9 107 — — 107

Total 25 949 0 94 1,043

*1.TheaboveincludesDirectorsandAudit&SupervisoryBoardMemberswho

retiredfromofficeinthefiscalyear2016.

*2.Inadditiontotheaboveamounts,atotalof¥689millionwaspaidto127

retiredDirectors,and¥59millionto18retiredAudit&SupervisoryBoard

Members,asspecialretirementcompensationandpensions(representingpay-

mentsdeterminedpriortotheabolitionofthosesystems).


REMUNERATIONOFDIRECTORSANDAUDIT&SUPERVISORYBOARDMEMBERS


SelectionCriteria

ExternalDirectors

•Theprospectiveperson’sextensivebusinessexperience

andknowledgearerequiredtodeliberateandknowledge

ofhisorherparticularareaofbusinessshouldbeused.

•Mitsuiputsgreatvalueonensuringindependenceof

ExternalDirectorsfromMitsuiinthepursuitoftheirman-

agementoversightfunctions.

•Withaviewtooverseeingbusinessoperationsinaway

thatreflectstheperspectivesofourdiversestakeholders,

Mitsuishalltakeintoconsiderationthefieldsfromwhich

candidatesoriginate,alongwiththeirgender.

Thereisapossibilityofproblemsarisinginindividual

transactions,suchasconflictsofinterestbetweenthe

ExternalDirectorandMitsui,butitwillbedecidedtomake

appropriateeffortsbytheBoardofDirectors.

ExternalAudit&SupervisoryBoardMembers

TheExternalAudit&SupervisoryBoardMembersshallbe

selectedwiththeobjectiveoffurtherheighteningtheneutral-

ityandindependenceoftheauditingsystem,and,inparticu-

lar,itisexpectedthattheExternalAudit&SupervisoryBoard

Memberswillgiveanobjectivevoicetotheirauditingopin-

ionsfromthestandpointofneutrality,buildingonsuchfac-

torsasindependence.WhenselectingcandidatesforExternal

Audit&SupervisoryBoardMembers,theAudit&Supervisory

Boardshallconfirmthatnoissueswithindependenceariseby

takingintoconsiderationsuchfactorsasrelationswiththe

company,managementandimportantstaffmembers.

CriteriaofIndependenceforExternalOfficers

(Directors/Audit&SupervisoryBoardMembers)

ExternalDirectorsorExternalAudit&SupervisoryBoard

MembersofMitsuiwhodonotfallunderanyofthefollow-

ingitemsaretobejudgedtohaveindependence.

(1) Personwhoiscurrentlyorwasinthepast10yearsan

executivedirector,executiveofficer,managingofficer,

manager,employee,administrativeofficer,etc.(herein-

afterreferredtoas“executingperson”)ofMitsuior

Mitsui’sconsolidatedsubsidiaries

(2) Personortheexecutingpersonofacorporationholding

eitherdirectlyorindirectly10%ormoreofthetotal

numberofthevotingrightsofMitsui

(3) PersonwhosemajorbusinesspartnerisMitsuior

Mitsui’sconsolidatedsubsidiaries*1ortheexecuting

personofthesame

(4) MajorbusinesspartnerofMitsuiorMitsui’sconsolidated

subsidiary*2ortheexecutingpersonofthesame

(5) IndependentauditorofMitsuiorMitsui’sconsolidated

subsidiaryoremployee,etc.ofthesame

(6) Personprovidingprofessionalservicessuchasconsul-

tant,lawyerandcertifiedpublicaccountantwho

receivedfromMitsuimonetarypaymentorotherprop-

ertybenefitsexceeding¥10millionintotalotherthan

officerremunerationinthemostrecentfiscalyear

(referringtothepersonbelongingtotheorganizationif

theonewhoreceivedtherelevantpropertyisanorgani-

zationsuchascorporationandassociation)

(7) Personortheexecutingpersonofacorporationwho

receivedtheannualtotalof¥10millionormoreof

donationsoraidfundsfromMitsuiorMitsui’sconsoli-

datedsubsidiaryinthemostrecentfiscalyear

(8) Personwhohasfallenunderanyof(2)to(7)abovein

thepastthreeyears

(9) Spouseorrelativewithintheseconddegreeofkinship

(hereinafterreferredtoas“closerelatives”)oftheperson

whoiscurrentlyorhasbeenrecentlytheimportantexe-

cutingpersonofMitsuiorMitsui’sconsolidatedsubsidiary

(includingdirectorwhoisnottheexecutingpersoninthe

caseofExternalAudit&SupervisoryBoardMember)

(10)Closerelativesofthepersonwhocurrentlyfallsorhas

fallenrecentlyunderanyof(2)to(7)above(excluding

theonewhoisnotimportant)

*1.IftherelevantbusinesspartnerreceivedfromMitsuiorMitsui’sconsolidated

subsidiarythepaymentequivalentto5%ormoreofitsannualtransaction

volume(non-consolidated)inthemostrecentfiscalyearortherelevantbusi-

nesspartnerobtainedfromMitsuiorMitsui’sconsolidatedsubsidiarythemoney

loansequivalentto5%ormoreofitsconsolidatedtotalassetsinthemostrecent

fiscalyear,therelevantbusinesspartnerisdeemedtobethepersonwhose

majorbusinesspartnerisMitsuiorMitsui’sconsolidatedsubsidiary.

*2.IfMitsuiorMitsui’sconsolidatedsubsidiaryreceivedfromtherelevantbusiness

partnerthepaymentequivalentto2%ormoreofMitsui’sannualconsolidated

transactionvolumeinthemostrecentfiscalyearortherelevantbusinesspart-

nerprovidedMitsuiorMitsui’sconsolidatedsubsidiarywiththemoneyloans

equivalentto2%ormoreofMitsui’sconsolidatedtotalassets,therelevantbusi-

nesspartnerisdeemedtobethemajorbusinesspartnerofMitsuiorMitsui’s

consolidatedsubsidiary.

SupportSystems

Mitsui’sbelievesthatadequatesupportsystemsareneces-

sarytoenableExternalDirectorstoparticipateindiscussions

oftheBoardofDirectorsandrealizesupervisoryroles.In

preparationforbothregularandextraordinarymeetingsof

theBoardofDirectors,materialsontheproposalsarepro-

videdandadvanceexplanationsaregiven.Inadditiontothe

timelyprovisionofcorporateinformationbytheFull-time

Audit&SupervisoryBoardMembersattheAudit&

SupervisoryBoardMemberDivision,theessenceofthe

meetingsbetweenFull-timeAudit&SupervisoryBoard

MembersandtheAudit&SupervisoryBoardMember

DivisionisprovidedtoExternalAudit&SupervisoryBoard

Membersperiodically.Whennecessary,advancedistribution

ofmaterialsandadvanceexplanationsareconducted

regardingregularandextraordinarymeetingsoftheAudit&

SupervisoryBoardandoftheBoardofDirectors.

EXTERNALDIRECTORS/EXTERNALAUDIT&SUPERVISORYBOARDMEMBERS


MeetingComposedofAllExternalDirectors

ThemeetingcomposedofallExternalDirectorsisheldperi-

odically,forthepurposeofexchanginginformationand

opinionsregardingimportantmattersinmanagement

amongExternalDirectors,oramongExternalDirectorsand/

orInternalDirectors,Audit&SupervisoryBoardMembers

andManagingOfficers.Themeetingcomposedofall

ExternalDirectorswasheldthreetimesintheyearended

March31,2016.

CooperationamongExternalDirectorsand

ExternalAudit&SupervisoryBoardMembersin

Audits,InternalAudits,CorporateAudits,and

IndependentAudits,aswellasTheirRelationship

withInternalControlDepartments

TheExternalDirectorsandExternalAudit&Supervisory

BoardMembers,throughtheBoardofDirectorsandthe

Audit&SupervisoryBoard,mutuallycoordinatewithinternal

audits,auditingbyAudit&SupervisoryBoardMembersand

accountingauditsaswellassuperviseandaudittheinternal

controlsystem.Specifically,theyperiodicallyreceivereports

onthefollowingatthemeetingoftheBoardofDirectors

andtheAudit&SupervisoryBoard,respectively:resultsof

theinternalauditsandinternalauditplans,resultsofaudit-

ingbytheAudit&SupervisoryBoardandauditimplementa-

tionplans,summaryofmanagementlettersbyIndependent

Auditors,assessmentresultswithregardtotheinternalcon-

trolsysteminaccordancewiththeFinancialInstrumentsand

ExchangeActofJapan,theoperationalstatusofcompliance

programs,andothermattersregardingthestructureand

managementofinternalcontrols.Furthermore,atExternal

Directormeetings,ExternalDirectors,CorporateAuditors,

andIndependentAuditorsexchangeopinionsandinforma-

tiononauditingpolicy.

ReasonsforAppointingEachExternalDirectorandExternalAudit&SupervisoryBoardMember/

MajorActivityintheFiscalYearEndedMarch31,2016

NameIndependent

Director*ReasonsforAppointmentasExternalDirector

AttendanceatMeetingsin

FY2016(Numberof

MeetingsAttended/Total

NumberofMeetings)

AdvisoryBodiesto

theBoardofDirectorsSignificantConcurrentPositions

Ikujiro

Nonaka

〇 Mr.Nonakaisappointedsothatthemanagement

maybenefitfromhisdeepinsightandsupervisory

capabilitiesrelatedtomanagementacquiredover

theyearsasanexpertininternationalcorporate

strategyaswellasforhisindependentoversight.

(16/16) Governance

Committee

Nomination

Committee

(committeechair)

ExternalDirector,

TrendMicroIncorporated

Toshiro

Muto

〇 Mr.Mutoisappointedsothatthemanagementmay

benefitfromhisdeepinsightintofiscalandmone-

taryaffairsandeconomicsingeneral,gainedatthe

MinistryofFinanceandtheBankofJapan,aswellas

forhisindependentoversight.

(16/16) Remuneration

Committee

(committeechair)

—

Izumi

Kobayashi

〇 Ms.Kobayashiisappointedsothatthemanage-

mentmaybenefitfromherwide-rangingknowl-

edgeandexperienceaccumulatedovermanyyears

bothinJapanandoverseasasarepresentativeof

privatesectorfinancialinstitutionsandamultilat-

eraldevelopmentbank,aswellasforherindepen-

dentoversight.

(16/16) Governance

Committee

Remuneration

Committee

ExternalDirector,

ANAHOLDINGSINC.

ExternalDirector,

SuntoryHoldingsLimited

Jenifer

Rogers

〇 Ms.RogersisappointedasanExternalDirectorso

thatmanagementmaybenefitfromherglobalper-

spectivegainedovertheyearsatinternationalfinan-

cialinstitutionsandherknowledgeandexperience

gainedovertheyearsthroughherworkexperiences,

etc.,inJapanesecompanies,aswellasforherinde-

pendentoversight.

(14/14)(Sinceherappointment

inJune2015)

Governance

Committee

—

Hirotaka

Takeuchi

〇 Mr.TakeuchiisappointedasanExternalDirectorso

thatmanagementmaybenefitfromhisdeep

insightandsupervisorycapabilitiesrelatedtoman-

agementgainedovertheyearsasanexpertininter-

nationalcorporatestrategy,aswellasforhis

independentoversight.

(AppointedinJune2016) — ExternalDirector,

GreenPeptideCo.,Ltd.



Name

Independent

Audit&

Supervisory

Board

Member*

ReasonsforAppointmentasExternalAudit&Supervisory

BoardMember

AttendanceatMeetingsin

FY2016(Numberof

MeetingsAttended/Total

NumberofMeetings)

AdvisoryBodiesto

theBoardof

Directors

SignificantConcurrentPositions

Hiroyasu

Watanabe

〇 Mr.Watanabeisappointedinexpectationofthe

expressionofhisobjectiveauditopinionsfroman

independentandneutralstandpointandfromthe

experienceandperspectivehehasgained,mainlyat

theMinistryofFinanceandalsoasagraduateschool

professor.

MeetingsofBoard

ofDirectors

(14/16)

— ExternalAudit&

SupervisoryBoardMember,

NOMURACo.,Ltd.

ExternalAudit&


JapanPetroleum

ExplorationCo.,Ltd.

MeetingsofAudit

&Supervisory

Board(16/18)

Haruka

Matsuyama

〇 Ms.Matsuyamaisappointedinexpectationofthe

expressionofherobjectiveauditopinionsfroman

independentandneutralstandpointfromthemany

yearsofexperienceandperspectiveshehasgained,

mainlyasanattorneyatlaw.

MeetingsofBoard

ofDirectors

(15/16)

Governance

Committee

ExternalDirector,

T&DHoldings,Inc.

ExternalDirector,

MitsubishiUFJFinancial

Group,Inc.

ExternalDirector,

VITECHOLDINGSCO.,LTD.

MeetingsofAudit

&Supervisory

Board(18/18)

HiroshiOzu 〇 Mr.Ozuisappointedinexpectationoftheexpres-

sionofhisobjectiveauditopinionsfromaninde-

pendentandneutralstandpoint,fromthemany

yearsofexperienceandperspectivehehasgained,

mainlyasaprosecutor.

MeetingsofBoard

ofDirectors

(14/14)(Sincehisappointmentin

June2015)

— ExternalAudit&


TOYOTAMOTOR

CORPORATION

MeetingsofAudit

&Supervisory

Board(14/14)(Sincehisappointmentin

June2015)

*AnExternalDirectorandanExternalAudit&SupervisoryBoardMemberwhoisunlikelytohaveconflictsofinterestwithgeneralshareholders,asstipulatedbythestockexchange

Whenholdinglistedsharesforanypurposesotherthan

purelyforinvestmentreturns,theCompanyholdssuchlisted

sharesonlyinthecasewhereitisjudgedtobereasonable

afterstrictandcomprehensiveexaminationofseveralfactors,

includingthenecessityformaintainingorstrengtheningrela-

tionshipswiththeinvestee,medium-tolong-termeconomic

rationale,andfutureoutlook.Withrespecttoourassetportfo-

liothatincludeslistedshares,theCompanyreviewsthe

Mitsuiappointscertifiedpublicaccountantsbelongingto

DeloitteToucheTohmatsuLLCasIndependentAuditorsto

carryoutauditingundertheCompaniesActofJapanandthe

FinancialInstrumentsandExchangeActofJapanaswellas

auditingofconsolidatedfinancialstatementsinEnglish.To

significanceofholdingsuchassetseveryyearinlightof

medium-tolong-termeconomicrationaleandfutureoutlook,

andreportssaidsignificancetotheBoardofDirectors.With

respecttoexercisingvotingrightsforlistedsharesheldbythe

Company,deliberationisconductedonacase-by-casebasis

astowhetherornotaproposalshouldbeapprovedbycom-

prehensivelytakingintoconsiderationanyimpactthattherel-

evantproposalmayhaveoncorporatevalueoftheinvestee.

securepromptfinancialclosingandreliability,theauditing

workofMitsuianditsconsolidatedsubsidiariesisinprinciple

entrustedsolelytoDeloitteToucheTohmatsu,whichbelongs

tothesamenetworkasDeloitteToucheTohmatsuLLC.

POLICYRELATEDTOACQUISITIONANDHOLDINGOFLISTEDSHARES

INDEPENDENTAUDITORS


Mitsuihasinplacethestructureshownonthenextpage.Wearecommittedtoensuringthemaintenanceandproper

operationofthatstructure.InordertoachievetheseobjectivesaswellasthemanagementobjectivesoftheCompany,the

followingorganizationsplaytheirrolewithinthestructure:

Improvementofeffectivenessandefficiencyofoperations;

Ensuringcompliancewithgenerallyacceptedaccountingprinciplesandthereliabilityoffinancialreporting;

Compliancewithapplicablelawsandregulations,alongwithmanagementprinciplesandin-houserulesincluding

variouscodesofconductreflectingmanagementprinciples(hereafterreferredtoas“laws,regulationsandin-house

rules”);and

SafeguardingofCompanyassets.

1

2

3

4

AtMitsui,wedefineinternalcontrolsasasystemforthecontrolandsupervisionofouroperationsbythemanagementteam.

TheBoardofDirectorshastheroleofandresponsibilityforprovidingthebasicdesignofinternalcontrolsonaCompany-

wideconsolidatedbasisbasedontheCompaniesAct,relatedlaws,theArticlesofIncorporationandotherinternalrules,and

ofoverseeingthedesign,operationandassessmentofinternalcontrols.RepresentativeDirectors,DirectorsandManaging

Officershavetheroleofandresponsibilityformaintaining,operatingandassessinginternalcontrolsatMitsuianditsaffiliated

companiesbasedonthebasicdesignforinternalcontrolssetoutbytheBoardofDirectors,andtheroleofandresponsibility

forestablishinganinternalcontrolenvironmentthatfacilitatesawarenessofinternalcontrolsamongtheofficersandthe

employeesoftheCompany.BasicdesignisdraftedbytheInternalControlsCommittee,anorganizationundertheCorporate

ManagementCommittee,whichisalsoresponsibleforthedevelopment,maintenanceandimprovementofeffectivenessof

theintegratedmanagementsystemforinternalcontrols.Inbuildingandoperatinginternalcontrolsystems,Mitsuipursues

thefollowingfourobjectives:

Internal Controls

Mitsuihasastrongbeliefthatasoundreputationisthe

foundationoftheCompany’sbusiness.AtMitsui,wedefine

complianceascomplyingwithcorporateethicsandsocial

normsinadditiontolaws,regulations,andinternalrulesof

theCompany.Byword“compliance”.Mitsuirequiresits

employeesandofficerstoactinaccordancewithitscorpo-

rateethics,basedonitsmanagementphilosophyandsocial

normsinadditiontolawsandregulationsaswellasinternal

rulesoftheCompany.Tothoseends,wecarryoutcorporate

managementwithemphasisoncompliance.WiththeChief

ComplianceOfficerasachairpersonandincludinganexter-

nallawyerasanobserver,theComplianceCommitteedevel-

opsMitsui’scompliancesystemandmaintainsandenhances

itseffectiveness.

Inworkingtowardthemaintenanceandimprovementof

thecompliancesystem,wecontinuouslystrivetoraisecom-

plianceawarenessandeducatethroughtraining.Weuseas

manyopportunitiesaspossibletosharelessonslearnedand

pointstobenoted.

Toimprovetheawarenessandknowledgeofitsofficers

andemployeesregardingcomplianceissuesintheyear

endedMarch31,2016,Mitsuidistributedthecompliance

handbooktoallemployees,inadditiontoimplementing

variouse-learningandtrainingsessions.Moreover,weheld

“ComplianceReviewWeek”asanopportunityforemployees

torethinktheirviewstowardcomplianceonapersonal

level.Seminarswereheldduringtheweekwhereemploy-

eesexchangedinformationandopinions.Atthesametime,

weconductedcompliancequestionnaires,whichtargeted

allofficersandaffiliatedcompanyemployeesworkingin

bothJapanandoverseas.Furthermore,forthedevelopment

andoperationofcomplianceprogramsataffiliatedcompa-

nies,weconductindividualvisitstomajoraffiliatedcompa-

niesandprovidesupportforcomplianceofficersatthose

companies.Intheseways,weareworkingtodevelopacom-

pliancesystemfortheentireconsolidatedgroup.

Intheeventofanactthatisagainstcompliancepolicy,

rulestorectifysuchviolationsareofutmostimportance.

Therefore,byusingreportingandconsultingroutes,we

makecontinuouseffortstocarefullyunderstandvarious

caseswhereviolationsoccurred.Webelievethatstrictcorre-

spondenceisimportantwhenaproblemcomestolight.

Moreover,weaimtoestablishanindependentcompli-

anceframeworkatthefrontlinethatisintegratedwithman-

agementasitmovesforwardforthe“challengeand

innovation”innewbusiness.Weconstantlykeepinmindthe

creationofanenvironmentinwhichcomplianceviolations

donotoccurand“naturalcompliance”canbecarriedout.

COMPLIANCE

MITSUI&CO.,LTD.ANNUALREPORT201682

PresidentandCEOInternalAuditingDivisionBusinessOperatingOrganization

(Inside/OutsideofJapan)

InternalControlsCommittee*1

ComplianceCommittee

Environmental&

SocietalAdvisoryCommittee

DisclosureCommittee

J-SOXCommittee

EnvironmentalFund

DeliberationCommittee

PortfolioManagementCommittee*2

InformationStrategyCommittee*2

CSRPromotionCommittee*1

DiversityPromotionCommittee*2

PowerandEnergyStrategy

Committee*2

BusinessInnovationCommittee*1

CorporateManagementCommittee

Exercisenecessarydecisionmakinginplaceof

normalin-housedecisionmechanismsrelating

toallconceivablemattersrequiringanextraordi-

naryresponse

Establishbasicpolicyrelatedtotheinternal

controlsystemwhiledeveloping,maintain-

ing,andimprovingtheeffectivenessofthe

integratedmanagementsystem

Deliberateuponbasicpoliciesandimportant

mattersfortheexecutionofgroup-widebusi-

nessoperations

Develop,maintainandimprovetheeffec-

tivenessofthecompliancestructure

Developprinciplesandbasicpolicyfor

statutorydisclosureandtimelydisclo-

sureaswellastheinternalstructure,and

discussanddeterminethemateriality

andappropriatenessofinformationto

bedisclosed

Develop,maintainandimprovethe

effectivenessofthesystemforensuring

thereliabilityofourconsolidatedfinan-

cialreporting

Establishcorporateportfoliostrategyaswell

asinvestmentandloanplans,monitorour

corporateportfolios,andexamineimportant

individualproposals

PlanCompany-wideinformationstrategyand

determineandmonitoressentialpoliciescon-

cerningestablishmentofmanagementplat-

formandpromotionofstructureof

informationstrategy

Provideadvicetothemanagementwith

regardto“CorporateSocialResponsibility”

(CSR),raiseawarenessamongtheemployees

andsendoutmessagewithrespecttoCSR-

orientedmanagement

*1.Sub-committeestotheCorporateManagementCommittee

*2.AdvisorybodiestotheCorporateManagementCommittee

Makeproposalsregardingbasicpolicyand

theplanfordiversitypromotion,andformu-

lateandimplementtargetssetalongwith

theplan

Analyzetheexternalbusinessenvironment,

monitorandevaluateourcurrentactivities,

specifyourprioritiesandfocus,andrecom-

mendrelevantmeasuresinpowerand

energybusinesses

Monitorandanalyzenewtechnologytrends

andpotentialbusinessinnovations,specify

ourprioritiesandfocuses,andprovideadvice

tothemanagementaswellasexaminespe-

cificmeasurestosupportbusinessunitsin

implementingpotentialnewbusiness,aiming

atthenextgeneration

CrisisManagementHeadquarters

FrameworkforInternalControlsandExecutionofBusinessActivities


TheChiefOperatingOfficersofbusinessunitsandregional

businessunitsmanagerisksarisingfromtheoperationof

Mitsui’sbusinesseswithintheirauthorizationdelegatedfrom

themanagement.Whenabusinessunitoraregionalbusi-

nessunittakesrisksgreaterthanthescopeofauthority

grantedtotheChiefOperatingOfficers,itisnecessaryto

obtainapprovaloftheCorporateManagementCommittee

oraRepresentativeDirectorincharge,oraSenior

ManagementOfficerinchargeinaccordancewiththestan-

dardsoftheinternalapprovalsystem.Inbusinessfieldscon-

sideredtypicallytohavehigherlevelsofrisks,including

environment-relatedbusinessandbusinesswithahigh

publicprofile,aparticularlycarefulinvestigationiscarried

outthroughtheSpeciallyDesignatedBusinessManagement

System.Constructionandmaintenanceoftheriskmanage-

mentsystemsandresponsetosignificantrisksona

Company-widelevelarehandledbysuchorganizationsas

thePortfolioManagementCommittee,theInternalControls

Committee,theCSRPromotionCommitteeandtheCrisis

ManagementHeadquarters.Thecorporatestaffdivisionsare

responsibleintheirrespectivefieldsforsurveillanceofthe

riskpositionoftheCompanyasawhole,riskcontrolwithin

theprescribedrangeoftheirauthority,andassistanceofthe

relevantRepresentativeDirectorsandManagingOfficers.

RISKMANAGEMENT

Mitsuiimplementstheinternalcontrolsframeworkasstipu-

latedintheFinancialInstrumentsandExchangeActof

Japan.InadditiontoCompany-widediscipline,Mitsuihas

beenconductingself-assessmentbyunitssubjectto

evaluationandtestingbyanindependentdivisionconcern-

ingtheeffectivenessofaccountingandfinancialclosing

controls,ITcontrolsandbusinessprocesslevelcontrols.

INTERNALCONTROLSOVERFINANCIALREPORTING

TheInformationStrategyCommitteeestablishesimportant

policiesrelatedtoglobalgroupinformationstrategy.Further,

thecommitteeleadsMitsui’seffortstobuildandoperate

informationsystems,developinternalrulesrequiredfor

informationsecurity,andstrengthenthemanagementof

risksrelatedtoinformation,includingtheriskofinformation

leakage.Thecommitteeensurestheestablishmentofsys-

temstocontrolriskassociatedwithinformationassets

appropriately.Specifically,itestablishesrulesforprocessof

procurement,introductionandoperationofinformation

assets;codeofconductforthesystemsupervisorydivisions

regardingITsecurity;requirementsforinformationriskman-

agementsystemsandthebasicsofinformationmanage-

ment;andinternalrulesrelatingtothehandlingofpersonal

informationrequiredinthecourseofbusinessoperationsas

wellasCyberSecurityCountermeasures.

INTERNALCONTROLSRELATEDTOINFORMATIONSYSTEMSANDINFORMATIONSECURITY

TheInternalAuditingDivisionverifiesthestatusofdevelop-

mentandmanagementofinternalcontrols,evaluatesthe

suitabilityandeffectivenessofriskmanagement,andgives

adviceandsuggestionsforimprovements.

DuringtheregularauditsthatcoverMitsui,overseas

offices,overseastradingsubsidiaries,andJapaneseandover-

seasaffiliatedcompanies,particularlysubsidiaries,Internal

Auditorscarryoutindependentandobjectiveevaluations,

pursuanttotherulesoninternalaudits,etc.,withanempha-

sisonriskmanagement,effectivenessofmanagementand

operations,complianceandappropriatefinancialreporting.

Inaddition,thefollowingauditsareimplementedasinternal

audits:cross-organizationalandcross-functionalauditsby

targetanditemandextraordinaryexaminationstogetthe

wholepictureofsucheventsthatcausedorcouldcause

irregulareconomiclossesorthatjeopardizedorcouldjeop-

ardizethecorporatetrust,inordertoidentifytheresponsibil-

ityandrecommendmeasurestoclarifycausesandmethods

topreventrecurrence.

INTERNALAUDITS

Whiletheformulationofthebasicdesignofinternalcon-

trolsistheresponsibilityofthemanagement,itsconstruc-

tion,developmentandoperationinvolvesallmembers.

Mitsuihassetoutthe“Mitsui&Co.,Ltd.Corporate

GovernanceandInternalControlPrinciples,”andasfarasis

rationalinthelightoflawsandotherconsiderations,it

requestsallsubsidiariestodevelopandoperateinternal

controlsystemsbasedontheseprinciples.Asforits

associatedcompanies,Mitsuicoordinateswithotherequity

participantsandencouragestheassociatedcompaniesto

developandoperateequivalentinternalcontrols.Anaffili-

atedcompanysupervisingofficerisappointedforeachaffil-

iatedcompanyfromamongMitsuiofficersandemployees,

andtheseofficersarerequiredtooverseemanagement

basedonthe“RulesonDelegationofAuthorityfor

SupervisingOfficersofAffiliatedCompanies.”

CORPORATEGROUP

InternalControls


Organization ChartAs of April 1, 2016

GeneralMeetingofShareholders

BoardofDirectors

PresidentandChiefExecutiveOfficer

InternalAuditingDiv.

Secretariat

MitsuiGlobalStrategicStudiesInstitute

HumanResources&GeneralAffairsDiv.

LegalDiv.

Trade&LogisticsControlDiv.

CorporateLogisticsDevelopmentDiv.

NewHeadOfficeBuildingDevelopmentDept.

CorporatePlanning&StrategyDiv.

InvestmentAdministrativeDiv.

InformationTechnologyPromotionDiv.

CorporateCommunicationsDiv.

Environmental•SocialContributionDiv.

CFOPlanning&AdministrativeDiv.

GlobalControllerDiv.

FinanceDiv.

RiskManagementDiv.

InvestorRelationsDiv.

CorporateManagementCommittee

HeadquarterBusinessUnits

Audit&SupervisoryBoardMembers

Iron&SteelProductsBusinessUnit

Audit&SupervisoryBoardMemberDiv.

Mineral&MetalResourcesBusinessUnit

InfrastructureProjectsBusinessUnit

IntegratedTransportationSystemsBusinessUnit

BasicMaterialsBusinessUnit

PerformanceMaterialsBusinessUnit

Nutrition&AgricultureBusinessUnit

EnergyBusinessUnitI

EnergyBusinessUnitII

FoodBusinessUnit

Food&RetailManagementBusinessUnit

Healthcare&ServiceBusinessUnit

ConsumerBusinessUnit

IT&CommunicationBusinessUnit

CorporateDevelopmentBusinessUnit

RegionalBusinessUnits

AmericasBusinessUnit

EMEABusinessUnit

AsiaPacificBusinessUnit

Audit&SupervisoryBoard

TotalNumberofOfficesinJapan: 12

•HeadOffice : 1

•Offices : 6

•Branches : 5

TotalNumberofOverseasOffices: 127

OverseasTradingSubsidiaries

•HeadOffices : 34

•Others : 63

OverseasOffices

•Branches : 2

•Others : 28

(65countriesandregions)

BusinessSupportingUnit

Planning&AdministrativeDiv.(Metals)

Planning&AdministrativeDiv.(Machinery&Infrastructure)

Planning&AdministrativeDiv.(Chemicals)

Planning&AdministrativeDiv.(Energy)

Planning&AdministrativeDiv.(Foods&Services)

Planning&AdministrativeDiv.(Consumer&Healthcare)

Planning&AdministrativeDiv.(Innovation&CorporateDevelopment)

FinancialManagement&AdvisoryDiv.I

FinancialManagement&AdvisoryDiv.II

FinancialManagement&AdvisoryDiv.III

FinancialManagement&AdvisoryDiv.IV

RegionalBusinessPromotionDiv.

MITSUI&CO.,LTD.ANNUALREPORT2016 85

Documents

Board of Directors and Independent Directors - Mitsui · Jenifer Rogers External Director Izumi Kobayashi Special Dialogue In Pursuit of Corporate Governance ... , I think the most