Corporate Governance
Approach to Cross-shareholdings
The Company has a basic policy of implementing cross-shareholdings on a strategic, limited basis, provided that holding such shares can be recognized to contribute to increasing the Company’s corporate value by further bolstering business partnerships and by maintaining and/or strengthening the stable business relationship with such companies. Determination is based on factors including the investee companies’ business developments, the status of business with the companies, and the market price of the shares.
Also, each year, the Company shall implement a sufficient review, including whether or not to continue to hold cross-shareholdings, by the Board of Directors of all cross-shareholdings from a medium- to long-term perspective, taking into consideration the importance of the cross-shareholdings and economic rationale. The Company shall also reflect the results of these reviews in explanations regarding the objectives of the cross-shareholdings, etc.
Specifically, reviews are conducted in light of the following perspectives.
- The necessity for the enhancement of the Company’s corporate value going forward, such as the further strengthening of the IP axis strategy through the creation of IP or the expansion of businesses fields.
- The level of contribution to the enhancement of the Company’s corporate value, such as the current status of transactions or business alliances with the company in question.
- The relationship between the benefit of ownership and the Company’s cost of capital with respect to the acquisition price of each cross-shareholding.
As a result of the review in fiscal 2022, the Company confirmed the appropriateness of holding all of the shares held.
In exercising the voting rights of cross-shareholdings, the Company does not unconditionally agree with the proposals of the companies whose shares it owns. Rather, voting rights are exercised based on whether or not the proposals will contribute to increasing the Company’s corporate value through the maintenance and/or bolstering of the business partnership and business relationship with such companies.
Number of Issues and Carrying Amount on Balance Sheet
| Number of issues | Total carrying amount on balance sheet (¥ million) |
|
|---|---|---|
| Unlisted shares | 7 | 1,452 |
| Shares other than unlisted shares | 34 | 116,375 |
| Issues for which the number of shares increased in fiscal 2022 | Number of issues | Total acquisition cost related to the increase in the number of shares (¥ million) |
| Unlisted shares | ー | ー |
| Shares other than unlisted shares | ー | ー |
| Issues for which the number of shares decreased in fiscal 2022 | Number of issues | Total selling price related to the decrease in the number of shares (¥ million) |
| Unlisted shares | ー | ー |
| Shares other than unlisted shares | 1 | 17 |
Ratio of Cross-shareholdings to Consolidated Net Assets
