Review of Strategic Shareholdings Held to Maintain Business Relationships
First written in FY2018. 5 of 9 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2019: 18 of 135 companies on the "Worse" side.
79 other companies' latest entry also says "Other".
- FY2026Temporary increase in the cross-shareholding ratio due to a rise in share pricesAnnual report
「The ratio of net assets to the total carrying amount recognized on the balance sheet for fiscal 2025 temporarily increased, mainly due to higher share prices.」
The company stated that it would continue its policy of reducing cross-shareholdings and its target of keeping their ratio to net assets at no more than 15% by the end of fiscal 2026, while noting that the ratio of the balance-sheet carrying amount to net assets temporarily increased due to higher share prices. - 2026-06-01RestatedGeneral Meetings of Shareholders
「We will continue working to reduce these holdings with the aim of bringing the net asset ratio to 15% or less.」
The document reiterates the target and ongoing policy for reducing cross-held shares. - FY2025AdvancedAnnual report
「The company has set a target of reducing its cross-shareholdings to no more than 15% of net assets during the period of its medium-term management plan, which ends in fiscal 2026. It plans to continue selling the shares after ensuring that the issuing companies understand its policy. The sale proceeds will be combined with funds generated by the business and allocated to growth investments, including human capital and carbon neutrality, as well as shareholder returns. Companies whose number of shares decreased during the fiscal year Unlisted shares 1 42 Shares other than unlisted shares 9 4,275」
Regarding cross-shareholdings, the company newly stated a target of reducing them to no more than 15% of net assets by fiscal 2026, and sold shares in 1 unlisted company and 9 listed companies. It stated that the sale proceeds would be allocated to growth investments, including human capital and carbon neutrality, as well as shareholder returns. The sale of its YAMATO CORPORATION shares has also been completed. - FY2024Termination of partnership with YAMATO CORPORATION and sale policyAnnual report
「YAMATO CORPORATION 1,010,000 1,010,000 The shares were held for the purpose of achieving work-style reforms through faster productivity improvements and reducing costs by using BIM (building information modeling) and a pre-processing plant, as well as through the mutual provision and effective use of patented technologies, under a business and capital alliance. However, as the business and capital alliance was terminated effective 13 May 2024, the company plans to sell the shares.」
Regarding the YAMATO CORPORATION shares held as cross-shareholdings, the company terminated its business and capital alliance on 13 May 2024 and stated its policy of selling the shares. - FY2023AdvancedAnnual report
「Companies whose number of shares decreased during the fiscal year Unlisted shares 1 3 Shares other than unlisted shares 11 1,144」
Regarding cross-shareholdings, the company reduced its holdings in 1 unlisted company and 11 listed companies, and disclosed total sale proceeds of ¥1,144 million from listed shares and other holdings. - FY2022AdvancedAnnual report
「For shares already held, the company will periodically and continuously assess whether continued ownership is appropriate from the perspectives below, verify the results annually at Board of Directors meetings, and in principle consider reducing holdings in companies whose strategic rationale for ownership is no longer recognized.」
Regarding cross-shareholdings, the company explicitly stated its policy of generally not holding such shares except where strategically important collaborative or business relationships exist. During the fiscal year, it reduced its holdings in 13 companies and disclosed total sale proceeds of ¥2,272 million. - FY2021AdvancedAnnual report
「Issues for which the number of shares decreased during the fiscal year Shares other than unlisted shares 9 1,786 Tsukishima Kikai Co., Ltd. - 387,800 The company sold shares held during the fiscal year.」
Regarding cross-shareholdings, the company reduced its holdings in 9 listed companies and disclosed total sale proceeds of ¥1,786 million. It also sold its shares in Tsukishima Kikai. - FY2020AdvancedAnnual report
「The results will be reviewed annually by the Board of Directors. Specifically, for each individual issue, the company assesses the appropriateness of holding the shares after comprehensively considering the consistency of the holding with its purpose and policy from a medium- to long-term perspective, related income including dividends and profits and benefits from related transactions, the risks associated with holding the shares, and the cost of capital.」
For cross-shareholdings, the company explicitly stated that the Board of Directors conducts an annual review and that the appropriateness of holdings is assessed with consideration of the cost of capital and other factors. During the fiscal year, holdings in 3 unlisted issues and 6 listed issues were reduced. - FY2018First statedAnnual report
「Investment securities consist mainly of shares in companies with business relationships with our business partners and are exposed to the risk of fluctuations in market prices. Fair values, which are monitored regularly, are reported to the Board of Directors. The company also continuously reviews its holdings in light of its relationships with business partners.」
Regarding shareholdings held to maintain and strengthen business relationships, the company first set out a policy of reporting fair values to the Board of Directors and continuously reviewing its holdings.