Status of Shareholdings

[The Securities Report issued on June 19, 2025]

Among securities for trading purpose, monetary trust for investment purpose and shares owned excluding those of subsidiaries and associates, shares owned solely for the purpose of receiving profit from a change in the value of shares or dividends from shares are classified as “investment shares owned for a purely investment purpose,” and shares owned for any other purposes, “investment shares owned for any purpose other than a pure investment purpose.”

The Company has a policy not to own “investment shares owned for any purpose other than a pure investment purpose” in principle. 
However, regarding issues that are expected to result in sustained growth of the Group and the invested company because, for instance, owning shares of a customer or business partner, etc. “can be expected to lead to the maintenance and development of the business relationship with the company as a strategic partner for business alliance or joint R&D, among others,” the propriety of owning the shares is determined upon comprehensive examination at the Board of Directors.
A regular report on shares owned is made to the Audit and Supervisory Committee in addition to the Board of Directors. When the significance or rationality of holding a certain issue is no longer recognized, the Company will initiate negotiations to sell the shares, while taking into account an impact on the market and other factors.
With regard to the voting rights associated with “investment shares owned for any purpose other than a pure investment purpose,” the basic approach is to exercise them after investigating carefully the content of each proposal and examining its validity by taking into account the management policy, management strategies and management plans of the invested company as well as social conditions, etc.
In particular, we check the following points, and if any doubts arise, we decide whether to approve or disapprove the proposal through dialogue with the invested company:
・Whether the content of the proposal will contribute to the medium- to long-term corporate value of the invested company
・Whether the corporate value of the Company or any of the Group companies will be impaired