Assessing the Purpose of Cross-Shareholdings and the Cost of Capital
First written in FY2019. 2 of 3 entries say "Advanced", first in FY2021. Latest entry: FY2023.
105 other companies' latest entry also says "Advanced".
- FY2023AdvancedAnnual report
「The Group has confirmed that all shares held as specified investment shares meet this threshold and are held for purposes consistent with its holding policy.」
For strategic shareholdings, the Group reviewed whether total shareholder return or comprehensive return including revenue from operating transactions exceeded the cost-of-capital rate, and confirmed that all holdings met the standard. It also disclosed a reduction in the number of shares held in 3 listed companies other than unlisted shares. - FY2021AdvancedAnnual report
「The shares held at the end of the fiscal year are retained after verifying, as a quantitative measure of the benefits of holding them, whether the total shareholder return calculated from the acquisition date to the evaluation date, or the comprehensive return calculated by adding revenue from operating transactions to that total shareholder return, exceeds the cost-of-capital rate set by the Company. The holdings are intended to support expectations of increased sales through stronger relationships with business partners and the maintenance of good business relationships with major customers.」
For strategic shareholdings, the Group conducts a quantitative review comparing total shareholder return, or comprehensive return including revenue from operating transactions, with the cost-of-capital rate, and has also specified its policy of selling holdings whose strategic significance has diminished. - FY2019First statedAnnual report
「Each year, the Board of Directors conducts a detailed review of each strategic shareholding, including whether the purpose of holding it is appropriate and whether the benefits and risks associated with holding it are commensurate with the cost of capital, verifies whether it should continue to be held, and periodically reviews the content of those assessments.」
The Group has disclosed for the first time its policy of annually reviewing strategic shareholdings at the Board of Directors level by comparing their holding purpose, benefits and risks with the cost of capital.