Nissan Shatai : Overview of Evaluation Results for Effectiveness of Board of Directors

Overview of Evaluation Results for Effectiveness of Board of Directors

The Board of Directors of Nissan Shatai has carried out an evaluation of the effectiveness of the FY2022 Board of Directors taking account of analyses by a third-party organization, and hereby announces an overview of these results.

1. Method and process of evaluation

The Board of Directors evaluated its effectiveness in the following method.

• The Board of Directors distributed a questionnaire prepared by a third-party organization to all Directors and Statutory Auditors, and they all answered it.
• Studies were conducted by this organization based on the answers, and Nissan Shatai received a report including the result of the studies.
• Firstly, based on the report, responses were discussed and evaluated by Outside Directors and Statutory Auditors.
• Then, all Directors and Statutory Auditors performed evaluations and discussions about

the effectiveness of the Board of Directors, and confirmed actions for further improving board's effectiveness.

(Main items in the questionnaire)

1. Composition, operation, and discussions of the Board of Directors
2. Monitoring functions of the Board of Directors
3. Training for Directors and Statutory Auditors
4. Operation and discussions of the voluntary committees

2. Overview of the evaluation results

As a result of the evaluation, Nissan Shatai's Board of Directors confirms that the effectiveness of the Board of Directors is ensured. The overview is as follows.

1. There is no problem with the composition and operation of the Board of Directors.
2. The Board of Directors has established sufficient deliberation time and is endeavoring to realize appropriate decision-making and management supervision.
3. All the members of the Board of Directors, including Outside Directors and Outside Statutory Auditors, possessing a wide range of experience and expertise, state opinions and advice based on their respective experiences and perspectives, and fulfill the roles that they should fulfill.

3. Opinions and issues to enhance the effectiveness

In FY2022, the Board of Directors ensured sufficient deliberation time and worked to improve the quality and vitality of its discussions.

In discussions concerning evaluations by all of the Directors and all of the Statutory Auditors, the following opinions were presented with the objective of further increasing effectiveness. We will continue to work on improving these points and will also aim to enhance the discussions in the Board of Directors.

1. Further examinations concerning management strategies and management plans in consideration of the cost of capital and the return on capital
2. In addition to the forum of the Board of Directors, enhancement of information sharing and discussions among Directors and Statutory Auditors in other forums as well
3. Enhancement of supervision of the risk management and operational status of the Nissan Shatai Group overall
4. Further enhancement of deliberations concerning important transactions and examination of the appropriateness of the items for deliberation
5. Thorough implementation of timely and appropriate reporting of information concerning risk incidents to the Statutory Auditors