Cross-Shareholdings

In principle, Ebara Corporation (the Company) does not own cross-shareholdings. However, the Company may hold shares of other companies as cross-shareholdings only when the Company determines partnerships with investees through such shareholdings will contribute to the enhancement of the Group’s corporate value.

Furthermore, the Board of Directors periodically reviews the rationality of holding these cross-shareholdings and has a policy to sell or otherwise dispose of shareholdings that are no longer rational.

1.The partnership with the investee is important, and it is necessary to maintain this relationship.
2.The returns and risks associated with the shareholding match the capital cost.

The Company exercises its voting rights in cross-shareholdings, subject to consideration of the pros and cons of individual proposals to determine whether they contribute to the medium- to long-term enhancement of the corporate value of the Group and investees. In such a case, the Company consults with investees as necessary with emphasis on the following matters:

1.Amendments to the Articles of Incorporation
2.Election of Directors, etc.
3.Takeover Defense Measures
4.Appropriation of Surplus

If a cross-shareholder expresses intent to sell their shares of the Company, we will unconditionally accept the proposal and request the policy-holding shareholder to sell the shares in a manner that minimizes impact on the Company's share price. In such a case, if the Company also holds shares of that cross-shareholder, the Company will promptly sell all shares held by the Company in that cross-shareholder. In addition, we will not continue a relationship with a cross-shareholder without thoroughly examining the economic rationale for that relationship.