1Policy on Reduction of Cross-Shareholdings
From the perspective of enhancing liquidity and efficiency of funds, the Company aim to reduce cross-shareholdings by more than 50% on a market value basis by the end of FY2023 (March 31, 2024) during the period of our medium-term management plan "Moving on to our New Stage 115 Plan" (FY2023 to FY2027).

2Background of Reduction
With the market showing more interest than ever in liquidity of cross-shareholdings, the Company have decided to further accelerate the sales of our cross-shareholdings as part of our commitment to enhancing capital efficiency and achieving our medium-term management plan.

3Utilization of Funds acquired by the Reduction
Funds acquired by the reduction of cross-shareholdings will be allocated appropriately to strategic investments for sustainable growth, investments for strengthening our management and business foundation, shareholder returns, and other purposes. The Company will provide further details on this matter, including our "Medium-Term Vision for Fund Creation and Allocation" (Cash Allocation Policy), at a later date.

4The Future Prospects
The Company will carry out notification promptly if the sale of shares conducted pursuant to the above policy on reduction requires timely disclosure. In conduction these sales, the Company will continue to take a long-term perspective on enhancing corporate value, carefully evaluating the significance of each individual stock in terms of business strategies and strengthening relationships with business partners. The Company will also engage in through dialogue with the issuing companies of the shares targeted for reduction to ensure their full understanding of this policy and strive to maintain appropriate relationship even after the completion of the sales.