Policy on Strategic Shareholdings

Basic Policy

Our basic policy regarding policy-held shares is not to hold them unless it is deemed that such shares will contribute to the stability of the group's business and the enhancement of its corporate value through the development of business relationships.

Verification of the appropriateness and rationality of retention

For each individual strategically held share, we specifically evaluate and verify the appropriateness of the purpose of holding it, and its relationship to the benefits and risks associated with holding it, in order to decide whether to continue holding it, sell it, or reduce it. Furthermore, if the appropriateness of holding it is not recognized, we will proceed with reducing it while obtaining the understanding of the issuing company. Even if the appropriateness of holding it is recognized, we may sell it considering market conditions and our management and financial strategies.
Regarding the appropriateness of holding strategically held shares as of the end of August 2025, the Board of Directors evaluated and verified the relationship between the quantitative and qualitative benefits and risks associated with holding the shares, including whether the income such as dividends is commensurate with the cost of capital, the impact of stock price fluctuations on our equity capital, and the qualitative significance of holding the shares.

Exercise of voting rights

Regarding the exercise of voting rights for strategically held shares, we will carefully examine the content of each proposal and exercise them appropriately after determining whether the proposal contributes to maintaining and improving the corporate value of our group and enhancing shareholder value. Furthermore, we will oppose any proposals that impair the corporate value and shareholder value of our group, regardless of whether they are company-proposed or shareholder-proposed. In the event of the discovery or potential occurrence of antisocial behavior, we will make a judgment on each proposal individually, regardless of the above criteria.