Sustainability
Policy on Cross-Shareholdings
NGK maintains cross-shareholding of listed stock that contribute to the long-term business development of our group for the primary purpose of maintaining and strengthening business relationships. Moreover, we maintain strategic cross-shareholding with each company in the Morimura Group, with which we share a founder. Since the Group brand forms a part of our corporate value through its history and philosophy, this arrangement aims to enhance the quality of management for both sides. As part of our portfolio of assets, these all provide the supplemental liquidity deemed necessary by our business plan. While we are always looking to reduce the scope of our cross-shareholding in the interest of asset efficiency, it may fluctuate due to factors including overall business trends, changes in risks, financial conditions, and business relationships with individual parties. Moreover, for stocks, the Board of Directors not only considers the significance of holdings from the perspective of business relationships, but periodically confirms the appropriateness of continued holdings, the safety of ratings, and the efficiency of dividend yields, together with capital policy. Meanwhile, when comparing our capital costs, we do not evaluate stocks alone, but manage return on invested capital (NGK ROIC) for each business with differing risks and expected returns. And we include our cross-shareholding valuations in the balance sheet of each business. We exercise voting rights accompanying cross-shareholdings from the perspective of whether the content of a proposal would be detrimental to shareholder interests. We also pay attention to whether the company whose shares we hold is managed with an emphasis on increasing corporate value and shareholder profits. We sold 5,159 million yen in four specified investment stocks in FY2024 as a result of this verification.
Number of Stocks and Balance Sheet Amount (March 31, 2025)
| Number of stocks | Total balance sheet amount (million yen) |
|
|---|---|---|
| Unlisted shares | 41 | 3,264 |
| Shares other than unlisted shares | 38 | 62,820 |
Stocks for Which Number of Shares Increased in FY2024
| Number of stocks | Total acquisition amount for increase in number of shares (million yen) |
Reason for increase in number of shares | |
|---|---|---|---|
| Unlisted shares | 2 | 1,629 | Due to new investments in companies contributing to the creation of our new products and businesses |
| Shares other than unlisted shares | - | - | - |
Stocks for Which Number of Shares Decreased in FY2024
| Number of stocks | Total acquisition amount for decrease in number of shares (million yen) |
|
|---|---|---|
| Unlisted shares | - | - |
| Shares other than unlisted shares | 4 | 5,159 |