Reviewing the Rationale for Cross-Shareholdings and the Holding Policy
First written in FY2019. 5 of 8 entries say "Mitigated", first in FY2023. Latest entry: FY2026.
- FY2026MitigatedAnnual report
「For the consolidated fiscal year, the yield on annual earnings relative to the acquisition cost of cross-shareholdings was 65.2%, exceeding the Company's cost of capital of 6.2% on a WACC basis overall.」
The annual earnings yield on cross-shareholdings was 65.2%, significantly exceeding the 6.2% cost of capital. Quarterly Board of Directors reviews of all holdings are also continuing. - FY2025MitigatedAnnual report
「The annual return on strategic shareholdings relative to acquisition cost in the consolidated fiscal year (current-period change in valuation difference plus dividend income, after tax-effect adjustments, divided by acquisition cost) was 13.7%, exceeding the Company's cost of capital of 5.8% overall, calculated on a WACC basis.」
The annual earnings yield on cross-shareholdings was 13.7%, exceeding the 5.8% cost of capital. Quarterly Board of Directors reviews are also continuing. - FY2024MitigatedAnnual report
「For the consolidated fiscal year, the yield on annual earnings relative to the acquisition cost of cross-shareholdings was 27.6%, exceeding the Company's cost of capital of 6.6% on a WACC basis overall.」
The annual earnings yield on cross-shareholdings was 27.6%, exceeding the 6.6% cost of capital. Quarterly Board of Directors reviews are also continuing. - FY2024-Q1MitigatedAnnual report
「This was due to investment securities increasing by ¥64 million from the end of the previous consolidated fiscal year as a result of the rise in market capitalization.」
The market value of investment securities rose, mitigating in the current quarter the impact of market price declines through the previous fiscal year. - FY2023MitigatedAnnual report
「The annual return on strategic shareholdings relative to acquisition cost in the consolidated fiscal year (current-period change in valuation difference plus dividend income, after tax-effect adjustments, divided by acquisition cost) was 20.1%, exceeding the Company's cost of capital of 7.2% overall, calculated on a WACC basis.」
The annual return on cross-shareholdings was 20.1%, exceeding the 7.2% cost of capital. This improved from the previous year, when the return was negative 22.1% and fell short of the 11.9% cost of capital. - FY2022WorsenedAnnual report
「The annual return on policy-held shares relative to acquisition cost for the consolidated fiscal year, calculated as current-period valuation difference gains or losses plus dividend income, after tax-effect adjustments, divided by acquisition cost, was negative 22.1%. Overall, this was below the company's cost of capital of 11.9% on a WACC basis.」
The annual return on cross-shareholdings was negative 22.1%, below the 11.9% cost of capital. Conditions deteriorated from the previous year, when the return exceeded the cost of capital. - FY2021AdvancedAnnual report
「The annual return on policy-held shares relative to acquisition cost for the consolidated fiscal year, calculated as current-period valuation difference gains or losses plus dividend income, after tax-effect adjustments, divided by acquisition cost, was 11.3%. Overall, this exceeded the company's cost of capital of 11.2% on a WACC basis.」
The company continued to verify its cross-shareholdings quarterly at Board of Directors meetings. The annual return for the current fiscal year was 11.3%, exceeding the 11.2% cost of capital. - FY2019First statedAnnual report
「The method for verifying the rationale for holding these securities is to report and deliberate at each quarterly Board of Directors meeting on the status of each investment security held as of the relevant quarter-end settlement date.」
The company newly confirmed a policy of verifying the rationale for holding cross-shareholdings based on the need to maintain business relationships and create synergies, the benefits and risks, and the cost of capital, and considering disposal if the holdings no longer serve their purpose. The consolidated balance sheet carrying amount of the cross-shareholdings was ¥3.596 billion, the annualized return for the fiscal year was negative 9.1% and the cost of capital was 6.8%.