Policy on Strategic Shareholdings

1.In the course of its business, the Company may hold shares in other companies whose business it expects to maintain and further expand. Such shareholdings include shares of companies held based on capital and business alliances concluded with the aim of achieving growth and developing the Company’s businesses, and shares held for the purpose of maintaining and strengthening business relationships. In the meantime, the Company shall verify the need for the Company to hold shares held based on past results every year by comprehensively examining the benefits, risks, capital costs and other factors associated with holding for each individual share and dispose of shares that the Company no longer needs to hold as much.



2.Purchase and disposal of shareholdings will be carried out based on a resolution of the Board of Directors or the Board of Executive Officers upon establishing criteria based on importance by the Board of Directors.


3.With respect to the exercise of voting rights concerning the shareholdings, the Company shall comprehensively determine, after reviewing proposals at the General Meeting of Shareholders, whether the contents of the proposals can enhance the corporate value of the companies in which the Company holds shares. The Company shall also assess such proposals in terms of their conformity with the reason for holding the shareholdings, and their impact on the Company. In addition, the Company shall confirm the companies whose shares it holds with regard to the intent of the proposals, whenever necessary. [Principle 1-4 Information to Be Disclosed]


4.If any corporation or other entity which holds shares in the Company through strategic shareholding (a shareholder of strategic shareholdings) indicates its intention to sell or otherwise dispose of the shares it holds, the Company shall not present any condition that would be disadvantageous to the shareholder of strategic shareholdings, such as reducing transactions due to said sale, and deal with it, respecting the intention of the shareholder of strategic shareholdings to the maximum extent possible, while fully understanding the intention of the Corporate Governance Code and the intention of the shareholder of strategic shareholdings.


5.Even in the case of entering into transactions with shareholders of strategic shareholdings, the Company shall do so after receiving a number of views and supervision from managers, etc. of other departments, in respect of individual transactions, in decision-making processes of the Board of Directors, etc. and also verifying the economic rationality in order to prevent any unreasonable transaction from occurring that will harm the interests of corporations or entities and common interests of shareholders due to a shareholding relationship.