Reviewing the Rationale for and Reducing Cross-Shareholdings

「During the fiscal year under review, at a Board of Directors meeting held in May 2025, we reviewed each individual stock in accordance with the above method, using 31 March 2025 as the reference date, and sold shares whose strategic significance we determined had diminished, taking into account share prices and market conditions. In addition, at a Board of Directors meeting held in May 2026, we reviewed each individual stock in accordance with the above method, using 31 March 2026 as the reference date. As a result of this review, the strategic significance of holding certain shares had diminished, so we will sell them after taking into account share prices and market conditions.」

「In fiscal 2025, we also sold 3 listed securities and continued to reduce our holdings. We will continue reducing them in fiscal 2026 as well.」

「Under the three-year 26 Medium-Term Management Plan, which began in April 2024, we are reducing low-return assets, including shares held for purposes other than pure investment, to improve capital efficiency. We plan to reduce such assets by up to ¥10 billion during the period.」

「We sold part of our investment securities as described below. As a result, we will record a gain on the sale of investment securities as extraordinary income in the fiscal year ending March 2025. 1. Reason for sale of investment securities To reduce strategic shareholdings 2. Details of the sale of investment securities (1) Shares sold Listed shares held by the company (2) Date sale completed 8 November 2024 (3) Gain on sale of investment securities ¥1,240 million」

「At a Board of Directors meeting held in May 2023, we reviewed each individual stock in accordance with the above method, using 31 March 2023 as the reference date. As a result of this review, the strategic significance of holding certain shares had diminished, so we will sell them after taking into account share prices and market conditions.」

「During the fiscal year under review, at a Board of Directors meeting held in May 2021, we reviewed each individual stock in accordance with the above method, using 31 March 2021 as the reference date. As a result of this review, we confirmed that all shares held were appropriate to retain.」

「During the fiscal year under review, we sold shares that we determined were not reasonable to hold, taking into account share prices and market conditions.」

「To maintain cooperative relationships and enhance corporate value, we will continue to hold shares that are considered rational from a medium- to long-term perspective, taking into comprehensive consideration their strategic importance, business relationships with counterparties and profitability, including dividends received. Each year, the Board of Directors verifies whether individual holdings should be retained. We will reduce holdings that are no longer considered meaningful.」