Reviewing the rationale for strategic shareholdings held to maintain business relationships
First written in FY2019. 2 of 3 entries say "Advanced", first in FY2024. Latest entry: FY2026.
105 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Issues whose number of shares increased during the fiscal year: shares other than unlisted shares 4 16,687 Because purchases have continued through the employee stock ownership plan」
The Company continued to verify the rationale for cross-shareholdings by comparing dividend and business yields with the cost of capital. Four holdings increased through purchases under the employee stock ownership plan. In addition, 1 unlisted shareholding was sold for ¥200 million. - FY2024AdvancedAnnual report
「Verification of the rationale for holding cross-shareholdings and whether they should be retained」
The Company disclosed that verification of the rationale for cross-shareholdings and consideration of whether they should be retained were conducted as major topics at Board of Directors meetings in FY2023. - FY2019First statedAnnual report
「The Company does not hold or manage shares for pure investment purposes. It holds shares in major customers and financial institutions to maintain and strengthen business relationships. For each investment security, excluding deemed shareholdings, the Company calculates the dividend yield and business yield for the fiscal year, with the latter defined as profit attributable to sales to the company divided by the acquisition cost of the shares. It compares these yields with the cost of capital, submits the matter to the Board of Directors, and verifies the economic rationale for continuing to hold the shares.」
The Company holds cross-shareholdings to maintain business relationships with major customers and financial institutions, and has newly disclosed a process for verifying their rationale at Board meetings by comparing dividend and business yields with the cost of capital.