Dear CII members,

This is Hiroshi Komori of Sumitomo Mitsui Trust Bank, an Honorary International Participant from Japan. Below please find my email I sent to non-Japanese institutional investors while I was in Amsterdam last week to attend the ICGN's annual conference. It was about Tokyo Stock Exchange's quick report to show you that 74.2% of TSE's Section 1 Listing companies would nominate one or more outside directors at the end of June AGM season. That was a big and surprising jump from 62.3% last year. I believe this is definitely a good movement in Japan, but we need to focus on a next step, multiple number of outsiders on the board with good independence. I will send other two emails.

Hiroshi Komori
SuMi TRUST Tokyo

(my email from Amsterdam)
I am in Amsterdam this week, attending and enjoying the ICGN Conference here at a historic building, Beurs van Berlage. It has made me know again each area and country has each issue. I understand a phrase "There is no perfect Corporate Governance system which fits all." From Japan's perspective, I think I need to keep sending news and messages in English to you for more appropriate understanding. I appreciate your interest in my email.

I was going to send this yesterday last night but I fell asleep immediately when I got back to Hotel Krasnapolsky. So I am afraid many of you might have already known. Please be advised that 74.2% of TOPIX companies, Tokyo Stock Exchange Section 1 Listing, have/will nominate one or more outside directors at the end of June 2014 AGM next week. I wish I would have bet a cup of tea with some of you, but I did not expect this figure this year. I thought it might reach 70% and then 75% next year.

I believe this is a good trend obviously, however I think we have reached just a very first step. We need to discuss a next issue, multiple number of outside directors with good independence, expertise and diversity for management. I appreciate a letter from 20 institutions recently to give Japanese companiese a mid-term target of "one-third by 2017" which I already let our client issuers know and consider.

You see below a preliminary report by TSE.

<TSE report in English>
http://www.tse.or.jp/english/news/09/20140617_a.html

<TSE report in Japanese>
http://www.tse.or.jp/news/09/140617_a.html

Finally, the World Cup. Japan was beaten by the Ivory Coast, particularly Drogba's two goals while I was on a plane to Amsterdam on Monday. I was disappointed but hope them to survive winning Greece and Colombia. Congratulations to countries which won first game.

Kind regards,

Hiroshi Komori
Sumitomo Mitsui Trust Bank