Policy on Cross-Shareholdings

NGK holds listed shares that contribute to the long-term development of the NGK Group, primarily to maintain and strengthen business relationships. We also hold shares of Morimura Group companies because they form part of our corporate value through our shared philosophy and history, and because they help both parties enhance management quality.
These shares are part of our asset portfolio and serve as a supplementary source of liquidity for our business plans. While we place importance on asset efficiency, the scale of our holdings may change depending on business conditions, risks, financial market conditions, and business relationships.
The Board of Directors regularly reviews the appropriateness of selecting and continuing to hold individual stocks. In addition to the significance of business relationships, the Board assesses safety based on credit ratings and efficiency based on dividend yields, together with our capital policy. We do not evaluate shares on a standalone basis. Instead, we manage return on invested capital (NGK ROIC) for each business and evaluate cross-shareholdings as part of each business’s balance sheet.
When exercising voting rights, we place importance on whether proposals could impair shareholder interests and whether the investee company manages its business with a focus on improving corporate value and shareholder interests.
In FY2025, we sold five designated investment stocks with a total value of ¥15,035 million.