Nissan Shatai : 100th Internal Control Report

【Cover 】

【Document submitted】

【Article of the Applicable Law Requiring Submission of This Document】

【Filed to】

【Date of Submission】

【Company Name】

【Company Name (in English)】

【Position and Name of Representative】

【Position and Name of Chief Financial Officer】

【Location of Head Office】

【Place Where Available for Public Inspection】

Internal Control Report ("Naibutousei-Houkokusho")

Article24-4-4, Paragraph 1, of the Financial Instruments and Exchange Law

Director, Kanto Local Finance Bureau

June28, 2023

Nissan Shatai Kabushiki-Kaisha

Nissan Shatai Co., Ltd.

Haruhiko Yoshimura, President

Yosuke Sato, Corporate Vice President

2-1 Tsutsumicho, Hiratsuka, Kanagawa

Tokyo Stock Exchange, Inc.

2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo

1. Basic Framework of Internal Control over Financial Reporting

Haruhiko Yoshimura, President of Nissan Shatai Co., Ltd. (hereinafter referred to as "the Company") and Yosuke Sato, Corporate Vice President of the Company (CFO) are responsible for the design and operation of internal control over financial reporting of the Company, the internal control is executed in accordance with the basic framework set forth in "On the Setting of the Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)" published by the Business Accounting Council.

Since internal control is supposed to function as the aggregation of its components to attain the objective reasonably, the internal control over financial reporting couldn't provide absolute assurance due to the inherent limitation.

2. Scope of Assessment, Assessment Date and Assessment Procedure

The Assessment of internal control over financial reporting as of March 31, 2023(i.e., the last day of this fiscal year) is in accordance with generally accepted assessment standards in Japan for internal control over financial reporting.

The business processes on the assessment to be assessed were chosen based on the results of assessment for company level internal control that they would cause material effects to the reliability of overall financial reporting consolidated basis.

The effectiveness of the internal control for the business processes has been assessed by means of the assessment for the design and operation of key point of the controls. This key point for the material effects to the reliability of the financial report has been identified with result of analyzing for the chosen business processes.

The scope of assessment for internal control over financial reporting has been determined by choosing the Company and consolidated subsidiaries based on their materiality of impacts on the reliability of financial reporting. This materiality was determined in consideration of quantitative and qualitative aspects, and the scope of assessment of process-level control has been determined reasonably based on the result of company-level control assessment, which included the Company and 1 consolidated subsidiary.

5 consolidated subsidiaries were excluded from the scope on the grounds of quantitative and qualitative impacts were deemed insignificant.

For the purpose of determining the scope of the process-level control assessment, 1 business location has been chosen as "Significant Business Location", which comprises the Company and its consolidated subsidiaries selected in descending order based on their previous fiscal year's consolidated net sales after elimination of intragroup transaction and contributed approximately two-thirds of the Company's

consolidated net sales in the aggregate. The scope of internal control assessment was confirmed sufficient for this fiscal year's consolidated net sales. The business processes of sales, accounts receivable, and inventory were chosen for the scope of assessment on the Significant Business Locations as the item of accounts for material enterprise business objective.

Regardless of the chosen business location above, the specific business processes have been added considering the effect to the financial report, such as the processes calls for estimates and the judgments due to the probability of misstatement in financial statements, or the business or business process with high-risk transactions.

3. Assessment Result

The internal control over financial reporting was effective at the end of this fiscal year.

4. Supplementary Information

Not applicable

5. Special Affairs

Not applicable