Review of the Purpose and Economic Rationale of Strategic Shareholdings
First written in FY2019. 3 of 4 entries say "Advanced", first in FY2022. Latest entry: FY2025.
- FY2025AdvancedAnnual report
「Holdings for which the number of shares decreased during the fiscal year: unlisted shares, 1; total sale proceeds relating to the decrease in the number of shares: ¥39 million」
The company continued its annual verification of the significance and economic rationale of its cross-shareholdings and sold 1 unlisted shareholding. - FY2024AdvancedAnnual report
「Holdings for which the number of shares decreased during the fiscal year: unlisted shares, 3; total sale proceeds relating to the decrease in the number of shares: ¥280 million」
The company continued to verify the significance and economic rationale of its cross-shareholdings and sold 3 unlisted shareholdings. - FY2022AdvancedAnnual report
「For business rationale, we verify on a company-by-company basis the business synergies arising from stronger business relationships, collaboration and new initiatives. For economic rationale, we verify whether the total return calculated from factors such as the market value of the shares and operating income exceeds the compounded WACC corresponding to the number of years the shares have been held.」
For cross-shareholdings, the company verified business synergies and economic rationale based on compounded WACC and other criteria, and sold 1 unlisted shareholding. - FY2019First statedAnnual report
「With respect to cross-shareholdings, we verify the significance of each holding once a year and have the Board of Directors pass a resolution on the matter.」
For the first time, the company has explicitly stated a policy of verifying once a year the significance of cross-shareholdings, taking into account business relationships, business rationale and the cost of capital.