Strategic Shareholdings

The Company owns listed equity holdings that it deems beneficial to its Group’s businesses in pursuit of medium/long-term growth in its corporate value.
Its Board of Directors annually reassesses the objectives and risks of owning each of these equity holdings, the state of transactions with the investee and returns accruing from ownership, including returns from actual transactions with the investee, relative to earnings targets with cost of capital factored in. If the Board of Directors deems the Company’s equity stake in any investee to be larger than appropriate, the Company opportunistically sells down its equity holdings in the investee.
When voting its strategically held shares, the Company generally respects the investee’s management decisions. Under certain circumstances, however, the Company gives extra scrutiny to management or shareholder proposals before deciding whether to vote for or against the proposal. Such circumstances include an investee that has incurred losses for three consecutive years and has questionable prospects of a turnaround; an investee that has been involved in a major scandal, has engaged in antisocial conduct or has otherwise fallen into disrepute and has questionable prospects of rehabilitating its reputation; and other cases in which the Company deems a vote in favor of a proposal to be adverse to its overall medium/long-term interests, including the objectives of its strategic shareholdings in the investee.

Date last revised: June 25, 2024