Shareholdings to Strengthen Business Relationships

「To review strategic shareholdings, improve asset efficiency and strengthen the financial position.」

「The company has announced a plan to dispose of cross-shareholdings each fiscal year in order to reduce their ratio to consolidated net assets to less than 10% by FY2029. ㈱ケーエスケー sold 7 of its holdings as part of its year-end financial measures for the fiscal year. ㈱バイタルネット sold 6 of its holdings as part of its year-end financial measures for the fiscal year.」

「In addition, following the tender offer for the shares of ケアネット株式会社 by Curie 1株式会社, which was announced on 13 August of this year, the company and MIJ Healthcare 1 Investment Limited Partnership, in which the company and its group invested, tendered their shares. As a result, the company recorded an investment gain of ¥2,815 million arising from the sale of ケアネット shares by MIJ Healthcare 1 Investment Limited Partnership as non-operating income, resulting in ordinary profit of ¥5,042 million, up 138.6% year on year. In addition, the company recorded a gain on the sale of investment securities of ¥2,212 million as extraordinary income from the sale of ケアネット shares held by the group. Consequently, interim net income attributable to owners of the parent was ¥4,968 million, up 205.2% year on year.」

「The company has announced plans to sell strategic shareholdings each fiscal year to reduce their ratio to consolidated net assets to below 10% by fiscal 2029. During the fiscal year, ㈱ケーエスケー sold 7 of its holdings as a measure related to the financial results, while ㈱バイタルネット sold 16 of its holdings.」

「At a meeting of the Board of Directors in June 2023, the company reviewed whether continued ownership of strategic shareholdings was appropriate using the method described above and concluded that all holdings owned by ㈱ケーエスケー should be retained. However, as a measure related to the financial results for the fiscal year, ㈱ケーエスケー sold 5 of its holdings. The company also concluded that all holdings owned by ㈱バイタルネット should be retained. However, as a measure related to the financial results for the fiscal year, ㈱バイタルネット sold 4 of its holdings.」

「However, as a measure related to the financial results for the fiscal year, ㈱ケーエスケー sold 5 of its holdings. Similarly, ㈱バイタルネット sold 3 of its holdings as a measure related to the financial results for the fiscal year.」

「At a meeting of the Board of Directors in June 2021, the company reviewed whether continued ownership of strategic shareholdings was appropriate using the method described above and concluded that all holdings owned by ㈱ケーエスケー should be retained. However, as a measure related to the financial results for the fiscal year, ㈱ケーエスケー sold 3 of its holdings.」

「However, as a measure related to the financial results for the fiscal year, ㈱ケーエスケー sold 3 of its holdings. Similarly, ㈱バイタルネット sold 2 of its holdings as a measure related to the financial results for the fiscal year.」

「㈱ケーエスケー resolved to sell 6 holdings deemed to have limited significance, of which 3 were sold during the fiscal year ending March 2020. ㈱バイタルネット resolved to sell 7 holdings deemed to have limited significance, all of which were sold during the fiscal year.」

「Net income attributable to owners of the parent was ¥1,053 million, or 102.5% of the same period of the previous year, due to the recognition of extraordinary income from the partial sale of strategic shareholdings.」

「For individual strategic shareholdings, the Board of Directors regularly verifies whether continued ownership is appropriate and will reduce such holdings based on the verification results. Of the shares held by ㈱ケーエスケー, resolutions were passed to sell 13 holdings deemed to have limited significance, while resolutions were passed to sell 37 holdings held by ㈱バイタルネット that were likewise deemed to have limited significance.」

「The Group holds shares and other equity interests in manufacturers with which it does business in order to maintain business relationships and for other purposes.」