Nitto Denko : Findings on the Nitto Board Effectiveness Evaluation

Date: March 29, 2022

Listed company name: Nitto Denko Corporation Stock exchange listing: Tokyo, First Section Code number: 6988

Company representative: Hideo Takasaki, President Contact person: Yasuhiro Iseyama

Executive Vice President

Director of Corporate Accounting & Finance Division Phone: [phone]

Findings on the Nitto Board Effectiveness Evaluation

Please find below an executive summary of the findings of the FY2021 effectiveness analysis/evaluation of the Board of Directors of Nitto Denko Corporation (hereinafter, "Nitto"). The analysis/evaluation was conducted based on Japan's Corporate Governance Code stipulated by Tokyo Stock Exchange, Inc.

• 1. Analysis/evaluation method

  As was in the last year, Nitto's Board of Directors analyzed and evaluated the effectiveness of the Board based on the results of a survey conducted by a third-party organization, which were discussed at the Board.

• 2. Categories of the survey questions

  • - Board composition

    3 questions

  • - Operation of the Board

    8 questions

  • - Risk management

    3 questions

  • - Discussions at the Board of Directors meetings

    9 questions

  • - Monitoring function of the Board

    3 questions

  • - Training for Directors and Corporate Auditors

    2 questions

  • - Dialogues with shareholders

    2 questions

  • - Efforts by individual Directors and Corporate Auditors

    7 questions

  • - Overview

  3 questionsTotal of 40 questions

• 3. Overview of the analysis/evaluation results

• 1) Conclusion

  It has been concluded that the effectiveness of Nitto's Board of Directors is ensured.

• 2) Analysis and evaluation

  All the Directors and Corporate Auditors responded to the Board effectiveness survey that used a five-point scale for each question. The respondents chose "Appropriate" or "Largely appropriate" for many of the questions (93% of the entire survey). In particular, as in the last year, the survey confirmed that open discussions took place at the Board of Directors meetings among the Board members including Outside Directors and Outside Corporate Auditors and that the agenda items and deliberation times were generally appropriate.

  With respect to the creation of a Group-wide internal control system and the supervision of its operational status, which had been recognized as a challenge in the last year, the Basic Policy on

Internal Control has been revised and a structure has been put in place, which enables special function departments and regional headquarters to collaborate with each other to compile risk information and the Board and the Corporate Strategy Meeting to receive regular reports. In addition, robust discussions also took place on human resource development, resulting in the establishment of a new Basic Policy on Human Resource Management.

As its challenges in the current fiscal year, the Board recognizes that it needs to have more in-depth discussions on human resource strategy and take actions on the skill matrix. In addition, opinions were expressed on the promotion of ESG management as in the last year.

4.

Future action

With the above analysis/evaluation findings in mind, Nitto's Board of Directors will remaincommitted to further enhancing the effectiveness of the entire Board.