Reviewing the Rationale for Cross-Shareholdings and Reducing Them

「For each cross-shareholding, the Board of Directors annually reviews whether it is appropriate to continue holding the shares, comprehensively considering the strategic importance of the holding, the returns obtained from it and the risks associated with holding it.」

「During the fiscal year, at a Board of Directors meeting held in June, the Company reconfirmed the significance of its holdings and comprehensively reviewed the returns relative to the costs and risks of holding them. The review considered the monitoring of the business performance of business partners, transaction status with the Company, contributions to the local economy and other short-term factors, as well as projected synergies based on future prospects. The Company determined that the holdings remained justified and decided to continue holding them.」

「The Company holds its current equity investments in a limited number of major banks, business partners and local companies for purposes including maintaining and strengthening relationships and contributing to sustainable enhancement of corporate value. Each year, the Board of Directors comprehensively considers the purpose of holding each investment, as well as the returns and risks associated with holding it, to review whether it should be retained. If it determines that an investment is not justified, the Company reduces its holdings, including through sales.」