2016 Annual report

Management's Report

The summary consolidated financial statements of LS Mutual Management contained in this annual report are the responsibility of management and have been approved by the Board of Directors. They have been derived from the consolidated financial statements of LS Mutual Management and should be interpreted together with them, including the additional notes.

To assist the Board in its duties, the company maintains an internal auditing system to provide reasonable assurance that assets are safeguarded, that only valid and authorized transactions are carried out, and that the financial information is accurate, complete and provided in a timely manner.

The Board of Directors fulfils its responsibilities with regard to financial reporting primarily through its Audit Committee that is composed entirely of independent directors and meets periodically with management and the appointed independent auditor. The independent auditor may, at its discretion, meet with the Audit Committee, in the presence or absence of management, to discuss matters pertaining to auditing and financial reporting.

On behalf of management,