Corporate  Governance The Company recognizes that every corporate activity is founded on the trust of and affinity with our shareholders, customers, and society at large, and so pledges to main- tain a transparent and healthy business. Executive Officers delegated by the Board of Directors liaise with external consultants such as attorneys and are responsible for executing the decisions of the Executive Committee and Board of Directors. Executive officers report on opera- tions to those organs as needed. Directors over- see the Executive Officers, while corporate audi- tors perform legal audits on the performance of directors. The Executive Committee makes appropriate decisions in response to rapidly changing social and economic circumstances. The Committee, composed of representative directors, makes the crucial operational decisions for the Company as a whole. Corporate auditors attend Executive Committee meetings and express opinions as required. The Executive Committee thus bal- ances rapid decision-making with transparency. Chiyoda’s auditing system has one external director as prescribed under Article 188, Section 2, Number 7-2 of the corporate code and three external auditors as prescribed under Article 18, Section 1 of the special corporate code relating to corporate audits. The Company introduced the executive officer system in fiscal 2002 to strengthen administration by separating deci- sion-making from operational implementation. Chiyoda publishes an Environmental Report, which explains our efforts in that area. Chiyoda President Nobuo Seki has proclaimed that “Protecting the Earth’s environment is our mission.” And with that mission in mind, we do our utmost to harmonize the development of human kind with the needs of the global environment. Indeed, “Sustainable Development” is our own clarion call. In fact, we use every skill our company has – engineering, planning, design, procurement, con- struction, operations, and maintenance – to help ensure minimal impact on the immediate, region- al, and global environments. Chiyoda Corporation Environmental Report Self Auditing Executive officer Risk manager  Internal Checks and Balances Executive officer Risk manager  Project operations Corporate administration Internal control  through  the PDCA cycle P (Plan) D (Do) C (Check) A (Action) Compliance Compliance Management  Office Occupational health and  safety, quality management,  environmental, information  security SQE Division Crisis manager Corporate Auditors Executive Committee (composed of representative  directors) Board of Directors Stockholders’ Meeting Corporate Governance Structure 6