Nidec Sankyo considers an active corporate governance program indispensable to increasing corporate value, retaining the trust of all stakeholders, including shareholders, and ensuring support for the Company. Nidec Sankyo has adopted an auditing system. The Board of Directors as of June 13, 2011, consists of 7 members, including one outside director. The term of office of each director is set as one year in order to ensure a timely response to the needs of shareholders. In addition, the Company introduced a system of executive officers as of June 16, 2008, with reform and reorganization of the Board meeting, in quick response to the global business expansion and rapid change of business environment. The Company abolished the directors’ retirement benefit system, and the directors’ compensation system was also changed to a system that is linked to the Company’s business performance. And three out of five are outside auditors and they further work to strengthen corporate governance. Each auditor conducts from his higher expertise a rigorous audit of the legality of decision-making and business execution by directors. Under the internal auditor system that the Company adopted as its corporate governance structure, its organization framework consists of the outside auditors with a wide range of knowledge and expertise in addition to directors with extensive knowledge about the business environment and internal situation, and the members are involved in decision-making process with their own knowledge and experience interacting. As a result, rapidity and mobility of management are ensured while the audit system is enhanced.