Basic Concept of Corporate Governance

MOL actively and continually strives to bolster its corporate governance to ensure sustainable growth and maximize mid- and long-term group corporate value based on the group's corporate philosophy and long-term vision, as well as the management plan, by taking the following measures, etc.: 1) appointing two or more outside directors; 2) establishing Nomination Advisory Committee and Remuneration Advisory Committee, which are arbitrary organizations whose majority of members are outside directors, as advisory bodies to the Board of Directors; and, 3) establishing the Company's own criteria for judging independence, in addition to the requirements for independent officers stipulated by the Tokyo Stock Exchange.

The ocean shipping business environment and risk factors change rapidly. As we set our course, we must accurately grasp business environment, always confront risks appropriately, and effectively utilize our management resources in a careful balance of offense and defense. We believe that the essentials of corporate governance are fostering sustainable growth and increasing corporate value by making decisions swiftly and boldly, guided by appropriate risk management, while ensuring the transparency and fairness of management by carefully considering the viewpoints of our diverse stakeholders and other various social requests.