Internal Controls

Sojitz implements internal controls in accordance with the “Basic Policy Regarding the Establishment of Systems for Ensuring Appropriate Execution of Sojitz Group Business Operations,” which the Board of Directors adopted on April 24, 2015.

With regard to overall internal control systems, the Internal Control Committee, an executive body under the control of the president, tracks and regularly monitors the implementation of internal controls in order to identify Company issues related to internal structures and frameworks, examine measures for addressing these issues, offer instruction to relative divisions, and promote improvements. These activities are advanced in cooperation with the relevant committees and organizations in order to enhance internal control systems.

Specific measures in each area are handled by the respective committees, subcommittees (Compliance Committee, Security Trade Control Committee, Information and IT System Security Committee, etc.), and working groups (Disclosure Working Group, etc.) as well as through the risk management framework.

In addition, pursuant to the internal control reporting system provisions set out in the Financial Instruments and Exchange Act, Sojitz has instituted the “Basic Policy to Ensure Appropriate Financial Reporting,” based on which it carries out internal control evaluations related to Groupwide financial controls. The Internal Control Committee monitors the progress of these assessments to improve the reliability of financial reporting.