Reviewing the Rationale for Cross-Shareholdings and Reducing Them
First written in FY2019. 2 of 4 entries say "Advanced", first in FY2024. Latest entry: FY2025.
- FY2025AdvancedAnnual report
「For each policy-oriented equity investment held, the Board of Directors conducts an annual, specific review of its consistency with the purpose of holding it and whether the benefits and risks associated with holding it are commensurate with our cost of capital. In conducting the review, we comprehensively consider qualitative factors, such as the importance of the business relationship and synergies from collaboration, as well as quantitative effects, including transaction value and contribution to earnings, to determine whether continuing to hold the investment is appropriate.」
For policy-oriented equity investments, the annual Board of Directors review was made more specific by adding quantitative assessments such as cost of capital, transaction value and contribution to earnings. - FY2024AdvancedAnnual report
「During the fiscal year, the number of shares declined for 1 issue other than unlisted shares, and the total sale proceeds related to the reduction in shares amounted to ¥39.329 million.」
With respect to policy-oriented equity investments, 1 listed issue was sold and sale proceeds of ¥39.329 million were recorded. This demonstrated an example of verifying the rationale for holding an individual security and implementing the policy of reducing holdings. - FY2022RestatedAnnual report
「We hold policy-oriented equity investments only when we determine that they will contribute to the enhancement of our Group's medium- to long-term corporate value, including by establishing stable, long-term business relationships with counterparties, facilitating business alliances, or facilitating and strengthening collaborative business development. For each policy-oriented equity investment held, we regularly review and verify matters including the impact of the investee's management policies and financial condition on our business, the status of transactions, and the share price and dividends. If we determine that an investment no longer meets the purpose of a policy-oriented equity investment, we will sell it or otherwise reduce the holding after obtaining approval through a resolution of the Board of Directors.」
The purpose of policy-oriented holdings, regular reviews of individual securities, and the policy of selling or reducing holdings that do not meet their purpose were reaffirmed. - FY2019First statedAnnual report
「We hold policy-oriented equity investments only when we determine that they will contribute to the enhancement of our Group's medium- to long-term corporate value, including by establishing stable, long-term business relationships with counterparties, facilitating business alliances, or facilitating and strengthening collaborative business development. For each policy-oriented equity investment held, we regularly review and verify matters including the impact of the investee's management policies and financial condition on our business, the status of transactions, and the share price and dividends. If we determine that an investment no longer meets the purpose of a policy-oriented equity investment, we will sell it or otherwise reduce the holding after obtaining approval through a resolution of the Board of Directors.」
For the first time, the purpose of policy-oriented holdings, regular reviews of individual securities, and the policy of selling or reducing holdings that do not meet their purpose were explicitly stated.