Verification of the rationale for strategic shareholdings and sale as necessary
First written in FY2019. 3 of 5 entries say "Advanced", first in FY2021. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「(Transaction yield + dividend yield + changes in share value (capital gains)) ≧ weighted average cost of capital」
For the rationale assessment of strategic shareholdings, the company explicitly stated a quantitative formula comparing the total of transaction yield, dividend yield, and changes in share value with the weighted average cost of capital. The policy of an annual Board of Directors review and selling shares deemed inappropriate to hold also continues. - FY2025AdvancedAnnual report
「住友金属鉱山 Co.,Ltd. is a customer for our major products. We had continued to hold the shares to strengthen business-to-business transactions and receive returns such as dividends, but after confirming that whether we held the shares did not affect transactions, we changed the purpose of holding them to pure investment.」
Following verification of the rationale for strategic shareholdings, the purpose of holding shares in Sumitomo Metal Mining Co.,Ltd., Mitsui Chemicals, and オータケ was changed to pure investment. - FY2022Change in the purpose of holding shares in 日本ピストンリング to pure investmentAnnual report
「The purpose was changed to pure investment from the current fiscal year.」
The purpose of holding the 5,060 shares of 日本ピストンリング株式会社 was changed from strategic shareholding to pure investment. - FY2021AdvancedAnnual report
「We consider economic rationality using the cost of capital, as well as the benefits to maintaining and strengthening relationships with business partners and developing our group’s corporate activities. Once a year, the Board of Directors confirms the status of strategic shareholdings from the perspective described in ② above, and shares deemed inappropriate to hold are sold at an appropriate time.」
The company added cost of capital and benefits to corporate value to its criteria for assessing strategic shareholdings and explicitly stated that the Board of Directors would review them annually. It actually sold all 220,000 shares of プラマテルズ. - FY2019First statedAnnual report
「Our policy regarding shares held for purposes other than pure investment, namely strategic shareholdings, is as follows. ① From a corporate governance perspective, we do not hold shares merely to maintain stable shareholders. ② As a general rule, we hold shares when they contribute to business benefits, such as strengthening business relationships between companies, while also taking returns such as dividends into account. ③ The Board of Directors periodically verifies the benefits of strategic shareholdings from the perspective described in ②. If it determines that those benefits have been reduced to a minimal level, the shares will be sold as necessary, taking into account the impact on the market and other circumstances requiring consideration.」
The company first explicitly stated its policy of not holding strategic shareholdings for the purpose of maintaining stable shareholders, periodically reviewing them at Board of Directors meetings based on benefits such as business relationships, and selling them if those benefits diminish.