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Basic Approaches to Cross-Shareholdings

The Nitto Group may hold shares of other listed companies as cross-shareholdings only when such holdings are deemed to be essential for performing business strategies and it is concluded that the business of such listed companies leads to enhancement of the Group’s corporate value over the long term. In addition, we review and examine the objectives behind such cross-shareholdings every year to determine whether to continue holding or to sell such shares.

When exercising voting rights with respect to such cross-shareholdings, we decide whether to vote for or against in a comprehensive manner after taking into such factors as whether each item to be resolved meets the interests of both the companies whose shares we hold and Nitto, and whether it contributes to the stable enhancement of corporate value.

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