Reviewing the Rationale for Strategically Held Shares and Reducing Holdings
First written in FY2021. 3 of 4 entries say "Advanced", first in FY2022. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「Issues for which the number of shares decreased during the fiscal year Unlisted shares 7 Shares other than unlisted shares 13 Total sale proceeds from reductions in the number of shares ¥8,092 million」
For strategic shareholdings, we sold 13 listed issues and 7 unlisted issues and verified their rationale from both qualitative and quantitative perspectives through the board of directors. - FY2023AdvancedAnnual report
「For shares in listed companies other than affiliated companies, we limit our holdings to the minimum necessary. Each year, the board of directors scrutinizes the rationale for acquiring and holding each individual issue and its profitability based on factors such as the cost of capital, and periodically verifies whether the holdings remain appropriate. If, as a result of this review, we determine that a holding is no longer rational, we sell the shares and reduce our holdings.」
For strategic shareholdings, we sold 5 unlisted issues and 10 listed issues during the fiscal year and conducted qualitative and quantitative reviews by the board of directors. - FY2022AdvancedAnnual report
「For shares in companies other than affiliated companies that we currently hold, the board of directors conducts qualitative reviews, including whether the holdings are based on strategic alliances, intended to maintain or expand future transactions, or intended to ensure stable procurement of raw materials essential to our business. It also conducts quantitative reviews of whether the return on investment from the shareholdings exceeds our cost of capital. As a result, it concluded that holding each issue was appropriate.」
For strategic shareholdings, the board of directors conducted qualitative and quantitative reviews and concluded that the holdings were appropriate, while selling 7 unlisted issues and 5 listed issues. - FY2021First statedAnnual report
「For shares in companies other than affiliated companies, we limit our holdings to the minimum necessary. Each year, the board of directors scrutinizes the rationale for acquiring and holding each individual issue and its profitability based on factors such as the cost of capital, and periodically verifies whether the holdings remain appropriate. If, as a result of this review, we determine that a holding is no longer rational, we sell the shares and reduce our holdings.」
We first identified as a standalone theme the policy of limiting strategic shareholdings in companies other than affiliated companies to the minimum necessary, reviewing them annually by the board of directors, assessing profitability based on the cost of capital, and selling and reducing holdings that have lost their rationale.