Policy on Shares held for Policy Purposes

Our policy is not to have any shares for policy purposes, except in cases where doing so is recognized as facilitating the maintenance and development of strategically important collaborations and business relationships for the sustainable enhancement of our corporate value. We determine whether to continue holding our shares for policy purposes on a regular and ongoing basis in terms of the following, and the Board of Directors reviews the decisions each year. When there is no apparent reason to continue holding the shares for policy purposes, we consider divesting.

• Whether the shares held for policy purposes will help enhance our corporate value over the medium and long term, for example by maintaining smooth and favorable business relationships or through business synergy
• Whether the shares held for policy purposes will adversely affect our financial soundness
• Whether the return on equity holdings (including gains from relevant trades, dividends, and the like) exceeds the cost of capital

The Company exercises its voting rights appropriately for each proposal after determining whether they contribute to the enhancement of the corporate value of the issuing company and the Company’s interests as a shareholder.