The Company acquires and holds shares for other than purely investment purposes if it deems such shareholdings to be useful in facilitating the Group’s business activities in cases such as when the shareholdings contribute to maintaining and reinforcing medium- to long-term transactional relationships or to establishing stable procurement of funds.
In regard to listed shares that the Company holds as investment shares for other than purely investment purposes, it verifies the rationality of shareholdings from the perspective of whether it facilitates the progress of the Group’s business activities, by looking at the history of the Company’s acquisition of such shares, the track record of business transactions, the status of cooperative partnerships, dividend performance, and other factors. The Company then reports to its Board of Directors, at least as frequently as once a year, the details of such findings, the reductions in such shareholdings and the guidelines followed by the Company regarding future reductions, and, where necessary, the Company proceeds with the sale of such shares.
In addition, the Company has been conducting ongoing investments in venture businesses since FY2016 in its seven defined focus areas, which include real estate tech, AI and robotics, and renewable energy. Centered on the Innovation and Business Transformation Group, these efforts are aimed at heightening the value of existing businesses and expanding the Company’s business domains through the utilization of technologies and coordination with external partners.

• Innovation and Business Transformation Group

[Status of Shareholdings]

a) Criteria for and basic approach to categorizing investment shares

The Company categorizes investment shares held for the purpose of receiving dividends or gains on sales as investment shares held purely for investment purposes, and shares held for other purposes, such as to enhance corporate value by maintaining or reinforcing the business of the Company as investment shares held for other than purely investment purposes.

b) Policy on the holding of investment shares for other than purely investment purposes and methods for verifying the rationality of such holdings, and details of verification conducted by the Board of Directors, etc. with regard to the suitability of holding individual issues

The Company acquires and holds shares for other than purely investment purposes if it deems such shareholdings to be useful in facilitating the Group’s business activities in cases such as when the shareholdings contribute to maintaining and reinforcing medium- to long-term transactional relationships or to establishing stable procurement of funds.
In regard to listed shares that the Company holds as investment shares for other than purely investment purposes, it verifies the rationality of shareholdings from the perspective of whether it facilitates the progress of the Group’s business activities by looking at the history of the Company’s acquisition of such shares, the track record of business transactions, the status of cooperative partnerships, dividend performance, and other factors. The Company then reports to its Board of Directors, at least as frequently as once a year, the details of such findings, the reductions in such shareholdings and the guidelines followed by the Company regarding future reductions, and, where necessary, the Company proceeds with the sale of such shares.

c) Number of issues held as investment shares for other than purely investment purposes, and total amount recorded on balance sheet

(Note) Aiming to enhance added value in existing businesses, and expand the scope of business domains by utilizing technology and cooperating with external partners, the Company, mainly through the Innovation and Business Transformation Group, is continuously making investments in start-ups.
In the above number of issues, 30 issues (28 unlisted shares and two shares other than unlisted shares) are new business shares held for the purpose of new business creation.

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

(Note)  Eight issues of the unlisted shares and one issue of shares other than unlisted shares are new business shares held for the purpose of new business creation.

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

d) Information on the number of shares of each issue and amount on balance sheet for specific investment shares and deemed holdings of equity securities
(With regard to the quantitative effects of the holding, for reasons of information management, details of transactions and cooperative partnerships with the other party are not disclosed.)

Specific investment shares

(Note 1) The company in question does not hold shares of Mitsubishi Estate, but a major subsidiary of the company holds shares of Mitsubishi Estate.

(Note 2) Mitsubishi UFJ Lease & Finance Company Limited changed its trade name to Mitsubishi HC Capital Inc., effective April 1, 2021.

Deemed holdings of equity securities

(Note 1) The company in question does not hold shares of Mitsubishi Estate, but a major subsidiary of the company holds shares of Mitsubishi Estate.

(Note 2) At the stage at which the top issues in terms of the amount recorded on the balance sheet are selected, specific investment shares and deemed holdings of equity securities are not included in aggregate totals.