Policy Shareholding

The "Policy of Policy Shareholdings" for listed shares of the Company and Group banks is as follows.
The basic policy is to reduce the balance for the sake of minimizing financial risk due to stock price fluctuations and of using capital efficiently with an awareness of the capital cost.

We periodically review the significance, economic rationale, etc. of our shareholdings and if holdings are deemed inappropriate, we sell them, taking into consideration circumstances that should be taken into account, such as negotiations to improve profitability and market impact.
Even when shareholdings are deemed appropriate, we may sell them in accordance with our basic policy of reducing outstanding balances, taking into consideration the market environment, management, and financial strategies, etc.
Furthermore, when policy-holding shareholders indicate an intention to sell the Company's shares, the Company will take no actions to prevent such sales.

In FY2024, the group banks collectively sold policy shareholding listed stocks with an acquisition price of 2.3 billion yen and a market value of 7.7 billion yen.
Starting from FY2025, we have revised our target to reduce the ratio of the market value of shareholdings, including the total of listed and unlisted stocks excluding shares with reserved voting rights (no ownership rights), held by The Bank of Yokohama, Higashi-Nippon Bank, and The Kanagawa Bank to less than 10% of consolidated net assets by the end of March 2030. We will further accelerate our efforts to reduce policy shareholdings more than ever before.
Additionally, We will not reclassify policy shareholdings into pure investment shares.

The Company’s Board of Directors regularly verifies each company whose listed shares are held by the Company as policy shareholdings for the significance of holdings (its contributions to regional development, strengthening of long-term and stable business relationships, etc.) and the economic rationale (risk-return commensurate with cost of capital).
In order to verify the economic rationale, we set standard values for return on risk-weighted assets (RORA) and for return on capital employed (risk quantity base) according to the ROE target.
In addition, the Company periodically checks the progress of efforts for sale negotiations and profitability improvement.

When exercising voting rights, the Group decides whether to approve or reject proposals in a comprehensive manner, after confirming such factors as the management policies (regarding increase of corporate value over the medium to long term and sustainable growth), governance, and business details of the company whose shares are cross-held, and considering the matter from the viewpoint of share value.
In cases when there are important proposals that may cause significant fluctuations in share value or when the details of the proposal are unclear, the Company carefully decides whether to approve or reject the proposal by such means as separately engaging in dialogue with the company whose shares are cross-held as necessary. Proposals that the Group considers important are as follows.
・　Surplus appropriation proposals (in cases of large-scale losses, etc.)
・　Proposals on the election of Directors and Audit & Supervisory Board Members (cases of impropriety or losses occurring over a certain continuous period)
・　Proposals on anti-takeover measures
・　Proposals on organizational restructuring
・　Proposals on payment of retirement benefits (for Audit & Supervisory Board Members, etc.)

Our primary business is managing the operations of our subsidiaries. The shares we hold are limited to affiliate company shares, and we do not hold any investment shares.
The status of investment shares (policy shareholdings) held for purposes other than pure investment by The Bank of Yokohama, Ltd., with the largest investment share balance in our company and subsidiaries, is as follows. Additionally, The Bank of Yokohama, Ltd. does not hold any investment shares for the purpose of pure investment.

(*) Excluding shares that have undergone changes due to share splits, share transfers, share exchanges, or mergers, etc.

(*) Excluding shares that have undergone changes due to share consolidation, share transfers, share exchanges, or mergers, etc.

For more information on details of the policy shareholdings, please see the list below.