Rationality Review of Strategic Shareholdings and Strengthening of Intercompany Transactions
First written in FY2019. 2 of 4 entries say "Advanced", first in FY2020. Latest entry: FY2026.
- FY2026ReframedAnnual report
「The Company had held shares in WingArc1st Inc. to use its customer network as a foundation for strategically expanding the data-integration business. After reviewing the significance of the holding as a cross-shareholding in light of the substance of the business relationship and comparisons with the cost of capital, the Company changed the classification to held for pure investment purposes.」
The classification of the WingArc1st Inc. shares changed from cross-shareholdings held for collaboration and use of its customer network to shares held for pure investment purposes following a review of the significance of the holding. - FY2021AdvancedAnnual report
「For WingArc1st Inc., the Company launched the OCRtran service in August 2020, integrating its ACMS Apex product with SPA, a product of WingArc1st Inc. The objective is to advance collaboration, use WingArc1st Inc.'s customer network as a foundation for strategically expanding the data-integration business, and establish a foothold for that expansion.」
The Company disclosed specific progress in collaboration using cross-shareholdings, namely the launch in August 2020 of the OCRtran service integrating SPA and ACMS Apex. - FY2020AdvancedAnnual report
「During the current fiscal year, the Company conducted the following assessments and concluded that both were economically rational: ① whether the total of income generated from actual transactions and dividends received exceeded the expected return on the relevant shares calculated using the Company's cost of capital; and ② whether the total of income generated from actual transactions and dividends received exceeded the expected return on the relevant shares calculated based on the Company's ROA (return on assets).」
For cross-shareholdings, the Company assessed their economic rationality quantitatively using the cost of capital and ROA, and also discussed the qualitative benefits of holding them in determining whether to continue holding them. - FY2019First statedAnnual report
「The Company has established the "Cross-Shareholding Management Guidelines," which prescribe its basic policy on cross-shareholdings and the assessment of the significance of such holdings.」
The Company disclosed for the first time its policy of determining whether to continue holding cross-shareholdings through quantitative assessments of their economic rationality and holding appropriateness based on the cost of capital, together with discussions of the qualitative benefits of holding them.