4. Information on shareholdings, takeover defense measures


8.    Information on shareholdings

Policy on shareholdings, method for verifying reasonableness of shareholdings, and details of verification of appropriateness of shareholdings for each stock conducted by the Board of Directors, etc.

The Company’s Board of Directors, etc. verify reasonableness of shareholdings and continuous holding every year, by reviewing if the purpose of shareholdings is appropriate and if the advantage and risk thereof match capital cost. If reasonableness of shareholdings has been diluted, such shares shall be sold in a timely and an appropriate manner to reduce shareholdings.  Over the medium term, the Company shall also consider sale of shares which is deemed reasonable in order to reduce shareholdings with the aim to achieve a certain ratio to net asset amount.

Criteria for exercising voting rights regarding shareholdings

The Company considers exercise of voting rights regarding shareholdings by reviewing the content of the relevant agenda, confirming with issuers when their earnings have been deteriorating over the long term or when they face corporate scandals, and determining from a viewpoint that shareholdings contributes to improving the Company’s corporate value over the medium to long term and is aligned with the purpose of cross shareholding or not.

b. Number of issuers and amount on balance sheet

  Number of issuers
(issuer)
Total amount on
balance sheet
(millions of yen)
Unlisted shares 48 3,477
Stocks other than
unlisted issues
16 21,753

(Stocks for which the number of shares increased during the fiscal year ended March 31, 2021)

  Number of issuers
(issuer)
Total acquisition cost for
increase in number of shares
(millions of yen)
Reason for increase in number of shares
Unlisted shares 1 65 It was determined that acquiring shares of the issuer would reinforce cooperative relationships between the company and the issuer
Stocks other than
unlisted issues
2 600 It was determined that acquiring shares of the issuers would reinforce cooperative relationships between the company and the issuers, in a long term mainly in the games and animation business. 

(Stocks for which the number of shares decreased during the fiscal year ended March 31, 2021)

  Number of issuers
(issuer)
Total sales value associated with
decrease in number of shares
(millions of yen)
Unlisted shares
Stocks other than unlisted issues 6 147

9.    Takeover defense measure

The Company has not introduced any takeover defense measure. In the event that the Company’s shares become subject to a tender offer, the Board of Directors shall make a fair decision and provide a clear explanation of the decision to its shareholders.