Review of Strategic Shareholdings and Exercise of Voting Rights

「For each issue of every held share, the company annually confirms at a meeting of the Board of Directors whether continued ownership is appropriate, taking into consideration changes in the business environment surrounding the company and its relationships with investees. It also verifies the economic rationale for holding the shares, based on factors such as annual transaction volume with the investee, and determines whether continued ownership is appropriate.」

「When exercising voting rights attached to held shares, the company does not determine its approval or disapproval based on uniform criteria. Instead, after considering the investee company’s management policies and strategies, it makes a comprehensive assessment of whether the proposal will contribute to the investee company’s sustainable growth and enhancement of corporate value, as well as to the company’s own medium- to long-term corporate value, and exercises its voting rights accordingly.」

「The company reviews these strategic shareholdings annually at meetings of the Board of Directors, taking into consideration changes in its relationships with business partners and changes in the business environment surrounding the company.」