＜Standard and policy of classification of investment stocks＞

TDK holds investment stock whose holding purpose is for net investment to gain profit by changes in the value of stock or dividends pertaining to stock TDK’s basic policy regarding cross-shareholdings is to consistently enhance corporate value of the TDK Group through such shareholdings and TDK holds shares of other companies for the purpose of either (1) strategic shareholding for the development of its business or (2) maintenance and improvement of business relationships.

＜How to verify the rationality of holding＞

As to cross-shareholdings, TDK verifies the rationality of continuous holding of such shares and the number of such shares, etc. stock by stock every year at Meetings of the Board of Directors, etc. based on the purpose of such shareholding, situation of transactions, profitability relative to the cost of capital, financial condition, etc., and if the necessity to hold shares of a particular stock has decreased, TDK discusses and negotiates with the issuing company of the stock and promotes the reduction through sale, etc. of such shares.

＜Standard of voting rights exercise＞

In exercising voting rights as to its cross-shareholdings, TDK determines to approve or disapprove with full respect for the issuing company’s management policies, etc. and considering whether the proposal is appropriate in light of the purpose of strategic shareholding for the development of TDK’s business or maintenance and improvement of business relationships, whether the proposal can continuously increase the corporate value of TDK, the issuing company’s social responsibilities, whether there is any act which may harm the trust of shareholders, etc. Also, TDK conducts a dialogue with the issuing company regarding the content of the proposal, etc. as appropriate.

Status of share ownership as of March 31, 2024