Strategic Shareholdings Held to Maintain and Strengthen Business Relationships

「We also review the rationale for holding shares of business partners and report the results to the boards of directors of the company and Hakuhodo Inc. At the board meeting held on 26 February 2026, the company received reports on the review results for the company and its principal subsidiaries.」

「Continues to sell cross-shareholdings」

「With regard to shares of business partners held by the Group, we regularly and continuously review the rationale for holding each issue, while also considering the Group's cost of capital. For issues whose holding is deemed to have limited significance, we are reducing the holdings while taking into account factors relevant to transactions and business operations, as well as the potential impact on the market.」

「Unlisted shares 9 538 Shares other than unlisted shares 5 20,857」

「Reason for tendering into this tender offer: to improve asset efficiency and strengthen the financial position」

「With due consideration of the capital costs of the group, the company regularly and continuously verifies the rationale for holding each shareholding in its business partners. It will reduce holdings it deems to have little rationale, while taking into account matters requiring consideration in terms of business transactions or operations and the impact on the market.」

「The company holds shares to maintain and strengthen business relationships and business alliances with investee companies. Number of issues: 10; total carrying amount on the balance sheet: ¥59,792 million」

「Number of issues: 7; total carrying amount on the balance sheet: ¥49,090 million」

「Investment shares held for purposes other than pure investment: 6 issues; total carrying amount on the balance sheet: ¥35,084 million」