Policy for Holding and Reducing Investment Shares Based on Synergies

「The number of shares held increased for 1 company during the fiscal year, as the Company acquired unlisted shares with an acquisition cost of ¥10 million to strengthen its business relationship and deepen collaboration.」

「The Company will make efforts to reduce holdings in stages where it determines that there is little significance in continuing to hold them or that synergies are limited.」

「As a result of this review, the Board of Directors determined that it was appropriate to continue holding the 2 investment shareholdings held as of 30 November 2020 for purposes other than pure investment, although deterioration in valuation gains and losses was recognized for part of these holdings. This deterioration is considered to have been caused mainly by the domestic and overseas economic downturn resulting from the global spread of COVID-19. The appropriateness of these holdings cannot be assessed solely on the basis of temporary deterioration in earnings under the current circumstances, and the holdings were judged appropriate because they continue to provide overall holding benefits as described above.」

「As a basic policy, the Group does not hold shares except where doing so is deemed to contribute to maintaining or increasing the Group’s corporate value through stronger business ties and information sharing with the investee company. Under its basic policy of reducing holdings in companies where the initially anticipated synergies are no longer expected, the Group reviews and deliberates individually on the appropriateness of each holding at every annual meeting of the Board of Directors.」