Policy on Cross-shareholdings

The Company has a basic policy of not acquiring cross-held shares and does not hold any shares of listed companies. However, if the acquisition of shares of business partners and business alliance partners are deemed useful for maintaining and strengthening relationships with such partners and if the medium- to long-term economic benefits from acquiring the shares are expected to be greater than the expenses for the acquisition, the Company may acquire the shares according to the procedures set forth in the internal regulations.

Consideration of the Appropriateness of Holding

The Company verifies the economic rationality of each company at the Board of Directors, such as the propriety with the purpose of acquisition, dividends, and the effectiveness of the business relationship. If there is any doubt about the economic rationality as a result of the verification, the Company will examine the necessity of maintaining the holding of the shares.

Rules for Execution of Voting Rights concerning Stocks of Group Cross-shareholdings

With respect to the exercise of voting on the proposals, the Corporate Planning Department comprehensively takes into consideration the purpose of holding the shares as well as the governance system of the issuer and whether there is an improvement in shareholder value. The Department exercises voting rights after making decisions based on the Company's rules for segregated authority.

Status of Strategic shareholdings