Holding Strategic Shareholdings Based on Business Relationships and Business Strategy, with Periodic Reviews
First written in FY2020. 2 of 3 entries say "Advanced", first in FY2022. Latest entry: FY2023.
- FY2023AdvancedAnnual report
「When holding shares as cross-shareholdings, we carefully examine at Board of Directors meetings whether the benefits and risks associated with the holding are commensurate with the cost of capital, verify whether the holding is appropriate, and acquire shares only when the holding is deemed meaningful and economically rational.」
The policy on cross-shareholdings was made more specific by adding a Board of Directors review of whether the benefits and risks of holding the shares are commensurate with the cost of capital, as well as a policy for verifying the rationale for the holdings. - FY2022AdvancedAnnual report
「After acquiring the shares, we periodically review the status of the business relationship and the financial condition of the company concerned, evaluate the investment for each holding based on its purpose, transaction status and other factors, and determine whether to continue holding the shares and the number of shares to be held. With respect to exercising voting rights attached to the shares held, we carefully examine the content of each proposal and make individual, specific and appropriate decisions for each proposal, without establishing uniform criteria, based on the significance of the holding, economic rationality and other factors, recognizing that it is important that the decision contribute to improving the corporate value and sustainable growth of the investee company and, ultimately, to enhancing our medium- to long-term corporate value.」
The policy on cross-shareholdings was made more specific, covering not only acquisition procedures, periodic reviews and decisions on continued holding and the number of shares, but also decisions on exercising voting rights for each proposal. - FY2020First statedAnnual report
「We hold shares as part of our business strategy to maintain and strengthen business relationships when, after comprehensively considering their strategic importance, the maintenance and expansion of business relationships, the resulting revenue and other factors, we determine that doing so will contribute to our sustainable growth and the enhancement of corporate value. After acquiring the shares, we periodically review the status of the business relationship and the financial condition of the company concerned, evaluate the investment for each holding based on its purpose, transaction status and other factors, and determine whether to continue holding the shares and the number of shares to be held.」
The policy on cross-shareholdings is disclosed separately, stating that shares are held based on business strategy, business relationships and profitability, and that the decision on whether to continue holding each issue and on the number of shares is reviewed after acquisition.