At Nintendo, we strive to maximize long-term corporate value while carefully considering the benefits for everyone we touch. We are working to achieve a highly transparent and sound system of corporate governance; we also educate our employees about good corporate ethics.

Execution and Supervision of Business Operations

Nintendo's unique business is based on the software-driven integration of hardware and software. We believe that the optimal managerial structure allows our Directors, individuals familiar with our unique business, to execute their own business operations as Directors, make decisions on company-wide business operations, and oversee other Directors' execution of business operations as experienced members of the Board of Directors. To strengthen shareholder supervision of Directors and respond in a timely way to changes in the managerial environment, Directors are elected for a term of one year.

In addition to the Board of Directors, we work with the Executive Management Committee, which consists of Representative Directors from the Board of Directors, to drive prompt and efficient decision-making.

Audits

Nintendo Co., Ltd. has four Auditors, including two Outside Auditors who are Independent Officers with no interests in Nintendo. In addition to attending meetings of the Board of Directors and other important meetings, Auditors meet regularly with the President and hold monthly meetings of the Board of Auditors to exchange views on auditing. Auditors strive to make audits more efficient and effective by holding discussions with the Internal Auditing Department, which is under the direct supervision of the President.

The Accounting Auditor conducts audits efficiently and effectively, sharing required information and exchanging views based on close coordination with the Auditors and the Internal Auditing Department.

The Internal Auditing Department conducts internal audits of business operations from the perspectives of efficiency, efficacy and legal compliance, maintaining a fair and unbiased position independent from operational departments.

Strengthening Internal Controls

To maintain and improve Nintendo's sound management structure and ensure appropriate business operations, we established the Internal Control System Committee, chaired by the President, which continues its efforts to strengthen the system of internal controls for the entire Nintendo Group. The main companies in the Nintendo Group have internal audit divisions that conduct internal audits of the group as a whole, in conjunction with the Internal Auditing Department of Nintendo Co., Ltd. The Nintendo Group internal auditing process involves not only the auditing of business operations in each region, but also the auditing of internal controls, including compliance with Japan's Financial Instruments and Exchange Act, and a review of risk management. The internal audit divisions also hold global conferences as needed, promoting mutual understanding between the internal audit divisions of each region, sharing information and building consensus.