Corporate Governance

Our corporate governance vision

The Company’s corporate philosophy is “Loved by citizens, working for citizens,” and it derives its name from this. The Company works to contribute to society and increase its corporate value through sustainable corporate activities, in harmony with the local community and the global environment. To continue to promote its aims, the Company believes that it is important to secure transparency in management and monitor many fields of management. Accordingly, the Company is striving to expand and improve its corporate governance.

Action to Implement Management that is Conscious of Cost of Capital and Stock Price

Action to Implement Management that is Conscious of Cost of Capital and Stock
                        Price

System for corporate governance

The Company establishes the corporate governance system described below based on the judgment that it can ensure the proper and efficient execution of duties together with management transparency, while also enabling extensive management oversight.

( 1 ) Organs and organizations

Organs and Organization Name Members Supplementary Explanation
The Board of Directors 6 Directors(Full-time)
3 Outside Directors
The Board of Directors of the Company consists of seven (6) Directors who control the Group and execute business in major operations and three (3) Outside Directors who check and monitor business management by making the most of their extensive experience and broad insights as managers from an independent position.
The Board of Directors makes decisions about the performance of business and supervises these performances. Management of business operations is carried out by the Representative Director, the Directors in charge of operations and the Operating Officers. The Board of Directors’ meetings were held seventeen (17) times during the fiscal year under review. All Directors and Audit & Supervisory Board Members attended approximately 94% or more of the Board of Directors’ meetings held during the fiscal year under review during their term of office.
Organs and Organization NameThe Board of Directors Members6 Directors(Full-time) 3 Outside Directors Supplementary ExplanationThe Board of Directors of the Company consists of seven (6) Directors who control the Group and execute business in major operations and three (3) Outside Directors who check and monitor business management by making the most of their extensive experience and broad insights as managers from an independent position.
The Board of Directors makes decisions about the performance of business and supervises these performances. Management of business operations is carried out by the Representative Director, the Directors in charge of operations and the Operating Officers. The Board of Directors’ meetings were held seventeen (17) times during the fiscal year under review. All Directors and Audit & Supervisory Board Members attended approximately 94% or more of the Board of Directors’ meetings held during the fiscal year under review during their term of office.
The Audit & Supervisory Board 1 Audit & Supervisory Board Member
2 Outside Audit & Supervisory Board Members
Each Audit & Supervisory Board Member conducts strict audits on the Directors’ performance of their duties, in accordance with the audit policy and audit program stipulated by the Audit & Supervisory Board, by attending the Board of Directors meetings, the Management Committee meetings, division meetings, or other such meetings; receiving from the Directors and other officers reports on the status of the performance of their duties; reviewing important written decisions and other documents; and investigating the business and financial status of the Company. The Company also receives a financial audit report from Nihombashi Corporation, which is an Independent Auditor. The Company conducts effective audits on itself and its subsidiaries in collaboration with the Independent Auditor, and is working on the further expansion and improvement of corporate governance. Audit & Supervisory Board meetings were held thirteen (13) times during the fiscal year under review. All Audit & Supervisory Board Members attended all of the Audit & Supervisory Board meetings held during the fiscal year under review during their term of office.
Organs and Organization NameThe Audit & Supervisory Board Members1 Audit & Supervisory Board Member
2 Outside Audit & Supervisory Board Members
Supplementary ExplanationEach Audit & Supervisory Board Member conducts strict audits on the Directors’ performance of their duties, in accordance with the audit policy and audit program stipulated by the Audit & Supervisory Board, by attending the Board of Directors meetings, the Management Committee meetings, division meetings, or other such meetings; receiving from the Directors and other officers reports on the status of the performance of their duties; reviewing important written decisions and other documents; and investigating the business and financial status of the Company. The Company also receives a financial audit report from Nihombashi Corporation, which is an Independent Auditor. The Company conducts effective audits on itself and its subsidiaries in collaboration with the Independent Auditor, and is working on the further expansion and improvement of corporate governance. Audit & Supervisory Board meetings were held thirteen (13) times during the fiscal year under review. All Audit & Supervisory Board Members attended all of the Audit & Supervisory Board meetings held during the fiscal year under review during their term of office.
Management Committee meetings Directors(Full-time)
Audit & Supervisory Board Members
The Company holds Management Committee meetings that are attended by the full-time Directors and full-time Audit & Supervisory Board Members to maintain prompt business judgment and management transparency. Matters to be resolved at the Board of Directors meetings and other important managerial issues are fully discussed and deliberated in advance at these meetings.
Organs and Organization NameManagement Committee meetings MembersDirectors(Full-time)
Audit & Supervisory Board Members
Supplementary ExplanationThe Company holds Management Committee meetings that are attended by the full-time Directors and full-time Audit & Supervisory Board Members to maintain prompt business judgment and management transparency. Matters to be resolved at the Board of Directors meetings and other important managerial issues are fully discussed and deliberated in advance at these meetings.
Independent Auditors 7 certified public accountants
(Supplementary Explanation)
With respect to the financial audits, the certified public accountants who independently audited the Company are Mr. Shigehiro Chiba, Mr. Hidekazu Takahashi, Mr. Tatsuya Oritoya and Mr. Yoichi Endo, associates of Nihombashi Corporation. In addition, seven (7) certified public accountants, eight (8) successful candidates who have passed the Certified Public Accountants Examination, etc. assisted in the audit of the Company. The Company ensures fairness and independence while it is audited by the Independent Auditors.
The reappointment of Independent Auditors is deliberated and decided by the Audit & Supervisory Board. If the Audit & Supervisory Board disapproves of the reappointment of the Independent Auditors, the proposal will be deliberated on at the Ordinary General Meeting of Shareholders pursuant to the Companies Act.
Organs and Organization NameIndependent Auditors Members7 certified public accountants
(Supplementary Explanation)
Supplementary ExplanationWith respect to the financial audits, the certified public accountants who independently audited the Company are Mr. Shigehiro Chiba, Mr. Hidekazu Takahashi, Mr. Tatsuya Oritoya and Mr. Yoichi Endo, associates of Nihombashi Corporation. In addition, seven (7) certified public accountants, eight (8) successful candidates who have passed the Certified Public Accountants Examination, etc. assisted in the audit of the Company. The Company ensures fairness and independence while it is audited by the Independent Auditors.
The reappointment of Independent Auditors is deliberated and decided by the Audit & Supervisory Board. If the Audit & Supervisory Board disapproves of the reappointment of the Independent Auditors, the proposal will be deliberated on at the Ordinary General Meeting of Shareholders pursuant to the Companies Act.
Nomination Committee The Chairperson : Outside Director
Member composition : 3 or more Directors
The main duties of the Nomination Committee include discussions on matters concerning the appointment or removal of the Representative Director, the President and CEO, and the Chairman of the Board of Directors, and proposals of such matters to the Board of Directors.
Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director.
The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees.
Organs and Organization NameNomination Committee MembersThe Chairperson : Outside Director
Member composition : 3 or more Directors
Supplementary ExplanationThe main duties of the Nomination Committee include discussions on matters concerning the appointment or removal of the Representative Director, the President and CEO, and the Chairman of the Board of Directors, and proposals of such matters to the Board of Directors.
Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director.
The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees.
Compensation Committee The Chairperson : Outside Director
Member composition : 3 or more Directors
The main duties of the Compensation Committee include discussions on matters concerning the policies and standards of the compensation to be received by Directors, and the provision of advice concerning the same to the Board of Directors.
Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director. The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees.
Organs and Organization NameCompensation Committee MembersThe Chairperson : Outside Director
Member composition : 3 or more Directors
Supplementary ExplanationThe main duties of the Compensation Committee include discussions on matters concerning the policies and standards of the compensation to be received by Directors, and the provision of advice concerning the same to the Board of Directors.
Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director. The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees.
Internal Audit Dept. 4 Dept. members The Company has established the Internal Audit Department and conducts audits in accordance with an annual audit program to confirm that the business execution of the Company and its subsidiaries is appropriate and reasonable.
The auditing organizations, the internal audit division, and the internal control division closely communicate with each other.
Organs and Organization NameInternal Audit Dept. Members4 Dept. members Supplementary ExplanationThe Company has established the Internal Audit Department and conducts audits in accordance with an annual audit program to confirm that the business execution of the Company and its subsidiaries is appropriate and reasonable.
The auditing organizations, the internal audit division, and the internal control division closely communicate with each other.

(2)Relationship with outside officers

The Citizen Group has no special interest with Outside Directors, Ms. Toshiko Kuboki, Mr. Yoshio Osawa and Mr. Katsuhiko Yoshida, and Outside Audit & Supervisory Board Members, Mr. Noboru Akatsuka and Ms. Yaeko Ishida.
(Criteria on Independence of Outside Officers)
The Company deems that an Outside Director or Outside Audit & Supervisory Board Member of the Company (“Outside Officer”) or a candidate for Outside Officer possesses independence such that the interests of the Outside Officer or candidate for Outside Officer are unlikely to have conflict with the interests of general shareholders if, after the Company investigates to practically possible and reasonable extent, one or more of the following criteria do not apply with respect to the said individual.
(1) A party who is now or was previously an officer (excluding the Company’s Outside Director or Outside Audit & Supervisory Board Member) or an employee of the Citizen Group (the “Citizen Group” refers to the group of companies made up of the Company and its subsidiaries; hereinafter the same).
(2) A party whose major business partner is the Company (Note 1) or an executive of such party (“executive” refers to an executive as defined in Article 2, paragraph 3, item 6 of the Enforcement Regulations of the Companies Act (Order of the Ministry of Justice No. 12 of 2006); hereinafter, the same).
(3) A major business partner of the Company (Note 2) or an executive of such party.
(4) A consultant, accounting professional, or legal professional who receives cash or other financial benefits of 10 million yen or higher as payment from the Citizen Group for reasons other than Director’s or Audit & Supervisory Board Member’s remuneration (if the party receiving such financial benefits is an incorporated entity, association or other organization, then a person belonging to such organization).
(5) A party receiving donations of cash or other financial benefits of 10 million yen or higher from the Citizen Group (if the party receiving such donation is an incorporated entity, association or other organization, then a person belonging to such organization).
(6) A party directly or indirectly holding 10% or more of the total number of voting rights held by the Company’s shareholders or an executive of such party.
(7) In the case that an officer or employee of the Citizen Group is serving as an outside officer at another company, an officer or employee of the company other than the aforementioned outside officer.
(8) A person to whom any of the criteria (2) through (7) applied in the most recent fiscal year or the past three fiscal years of the Company.
(9) A spouse or relative within the second degree of kinship of a person to whom any of the criteria (1) through (8) applies.
Notes:
1. “Party whose major business partner is the Company” refers to a party whose sales to the Citizen Group makes up 2% or more of the consolidated net sales of the party’s group (“group” refers to the group of companies made up of the party, its parent, and its subsidiaries; hereinafter the same).
2. “Major business partner of the Company” refers to a party whose group provides the Citizen Group with sales amounting to 2% or more of the consolidated net sales of the Company.

(3) Directors’ and Audit & Supervisory Board Members’ Compensation

Number of officers Total amount of
compensation, etc.
(millions of yen)
Amount of fixed
compensation
out of all
compensation, etc.
(millions of yen)
Amount of bonus
out of all
compensation, etc.
(millions of yen)
Amount of
performance-linked
stock compensation
out of all
compensation, etc.
(millions of yen)
Director [ Out of which,
Outside Directors ]
10
(4)
309
(28)
167
(28)
99
(-)
43
(-)
Director [ Out of which,Outside Directors ] Number of officers10
(4)
Total amount of 
compensation, etc.
(millions of yen)
309
(28)
Amount of fixed 
compensation 
out of all 
compensation, etc.
(millions of yen)
167
(28)
Amount of bonus
out of all 
compensation, etc.
(millions of yen)
99
(-)
Amount of 
performance-linked
stock compensation 
out of all 
compensation, etc.
(millions of yen)
43
(-)
Audit & Supervisory Board Member
[Out of which, Outside Audit &
Supervisory Board Members]
4
(2)
45
(27)
45
(27)
(-)
(-)
(-)
(-)
Audit & Supervisory Board Member[Out of which, Outside Audit & Supervisory Board Members] Number of officers4
(2)
Total amount of 
compensation, etc.
(millions of yen)
45
(27)
Amount of fixed 
compensation 
out of all 
compensation, etc.
(millions of yen)
45
(27)
Amount of bonus 
out of all 
compensation, etc.
(millions of yen)
(-)
(-)
Amount of 
performance-linked
stock compensation 
out of all 
compensation, etc.
(millions of yen)
(-)
(-)
Total
[Out of which, outside officers]
14
(6)
355
(55)
212
(55)
99
(-)
43
(-)
Total[Out of which, outside officers] Number of officers14
(6)
Total amount of 
compensation, etc.
(millions of yen)
355
(55)
Amount of fixed 
compensation 
out of all 
compensation, etc.
(millions of yen)
212
(55)
Amount of bonus 
out of all 
compensation, etc.
(millions of yen)
99
(-)
Amount of 
performance-linked
stock compensation 
out of all 
compensation, etc.
(millions of yen)
43
(-)

Notes:
1. The above figures include Directors and Audit & Supervisory Board Members who retired upon conclusion of the 137th Ordinary General Meeting of Shareholders held on June 28, 2022.
2. The above amount of the bonuses (99 million yen) for Directors (excluding Outside Directors) is the amount to be paid after the conclusion of the 138th Ordinary General Meeting of Shareholders scheduled to be held on June 28, 2023.
3. The above amount of performance-linked share-based compensation (43 million yen) for Directors (excluding Outside Directors and Directors who are non-residents of Japan) is the amount that was recorded as an expense in the fiscal year under review. Of the estimated amount of stock benefit obligation calculated based on the estimated number of shares to be delivered to six directors (excluding Outside Directors and Directors that are non-residents of Japan.) as performance-linked share-based compensation for the three-fiscal-year applicable period corresponding to the Medium-term Management Plan ending in the 137th fiscal year, 16 million yen was recorded as an expense in the fiscal year under review, excluding the amount of expense recorded in the Business Report for the 137th fiscal year.
4. In order to promote motivation in contributing to the enhancement of single-year and medium- to long-term performance and improvement of corporate value, the performance indicators for bonuses are consolidated net sales and consolidated operating profit in the annual plan in addition to consolidated net sales, consolidated operating profit ratio and ROE in the Medium-term Management Plan. Actual results during the fiscal year under review were consolidated net sales of 301.366 billion yen, consolidated operating profit ratio of 7.9% and ROE of 9.6%. Bonuses are calculated multiplying the base monthly compensation for each position by a coefficient determined by the level of achievement of performance indicators and non-financial items.
5. The content of performance-linked stock compensation is shares of the Company, and the conditions, etc. at the time of allotment are as stated in “(1) Policies, etc. on determination of officer compensation, etc.” Furthermore, the status of delivery is as stated in “II. 1. (5) Status of shares delivered to officers of the Company as compensation for the performance of the duties during the fiscal year under review.” In order to further clarify the linkage between compensation for Directors and the share value of the Company to promote motivation in contributing to the enhancement of medium- to long-term performance and improvement of corporate value, the performance indicators for performance-linked stock compensation are consolidated net sales, consolidated operating profit ratio, ROE, CO2 reduction rate (compared to 2018), and a FTSE Russell ESG Ratings score in the Medium-term Management Plan. Actual results during the fiscal year under review were consolidated net sales of 301.366 billion yen, consolidated operating profit ratio of 7.9%, ROE of 9.6%, CO2 reduction rate (compared to 2018) of 16.8%, and an FTSE Russell ESG Ratings score of 3.5. Performance-linked stock compensation is calculated according to the level of achievement of performance indicators, etc.
6. The maximum allowance for the total amount of compensation, etc. for Directors (excluding Outside Directors) was set at 370 million yen per year (inclusive of bonuses, etc.) at the 133rd Ordinary General Meeting of Shareholders held on June 27, 2018, and the number of Directors (excluding Outside Directors) at the conclusion of that Ordinary General Meeting of Shareholders was eight (8). Employee salaries for employees who also serve as Directors shall not be paid.
7. Separate from note 6 above, at the 133rd Ordinary General Meeting of Shareholders held on June 27, 2018, the total amount of performance-linked stock compensation for Directors (excluding Outside Directors and Directors who are non-residents of Japan) was set at not more than 300 million yen for every three fiscal years (starting in 2018, the first year, at not more than 100 million yen), and the number of Directors (excluding Outside Directors and Directors who are non-residents of Japan) at the conclusion of that Ordinary General Meeting of Shareholders was eight (8).
8. The maximum allowance for the total amount of compensation, etc. for Outside Directors was set at 40 million yen per year at the 134th Ordinary General Meeting of Shareholders held on June 26, 2019, and the number of Outside Directors at the conclusion of that Ordinary General Meeting of Shareholders was three (3). No bonuses will be paid to Outside Directors.
9. The maximum allowance for the total amount of compensation, etc. for Audit & Supervisory Board Members was set at 80 million yen per year at the 122nd Ordinary General Meeting of Shareholders held on June 26, 2007, and the number of Audit & Supervisory Board Members at the conclusion of that Ordinary General Meeting of Shareholders was four (3). No bonuses will be paid to Audit & Supervisory Board Members.
10. In order to increase transparency concerning the compensation of Directors, the Company delegated the determination of the content of individual compensation, etc. of Directors for the fiscal year under review to the Compensation Committee chaired by Outside Director Mr. Yoshio Osawa and with Outside Directors Ms. Toshiko Kuboki and Mr. Katsuhiko Yoshida and President and CEO Mr. Toshihiko Sato as members. The Compensation Committee found that the content of the individual compensation, etc. of Directors for the fiscal year under review is in line with the Policy on Determination of the Content of Individual Compensation, etc. of Directors because the determination of the content was delegated to the Compensation Committee by resolution of the Board of Directors and the content of compensation, etc. conforms with said policy resolved by the Board of Directors.

(4)Implementation of Measures for Shareholders and Other Stakeholders

Category Measures Supplementary Explanation
Categorythe General Shareholder Meetings and Voting Rights Measures/Supplementary ExplanationEarly Notification of General Shareholder Meeting Since 2006, the Company has endeavored to issue a notice at least three (3) weeks prior to the date of the General Meeting of Shareholders.
Since 2016, the Company has made the notice available electronically upon passing the resolution for convening the General Meeting of Shareholders at the meeting of the Board of Directors until the issue of the convocation notice.
Scheduling AGMs Avoiding the Peak Day Since 2006, the Company has endeavored to hold the meeting at least one (1) business day before the peak day.
Allowing Electronic Exercise of Voting Rights The Company has adopted the online exercise of voting rights via personal computer or mobile phone.
Participation in Electronic Voting Platform Since 2007, the Company has participated in the platform for the electronic exercise of voting rights for institutional investors.
Providing Convocation Notice in English The convocation notice is made available in English.
Other The convocation notice is made available on the Company’s homepage.
CategoryIR Measures/Supplementary ExplanationPreparation and Publication of Policies on Disclosure The Company has established the Policies on Disclosure and posts them on the IR section of its website
Regular Investor Briefings for Individual Investors The Company strengthens IR for individual investors, such as by disclosing latest financial results presentation without delay and the Company introduction movie on IR website.
Regular Investor Briefings for Analysts and Institutional Investors The representative provides briefings on the financial results for the second quarter and the full year. The officer in charge of IR provides briefings on the financial results for the first and third quarters.
Posting of IR Materials on Website The Company makes available a summary of accounts, financial results briefing materials, questions and answers at the briefings, the securities reports, the quarterly reports, CITIZEN REPORT (Integrated Report) and other documents.
Establishment of Department and/or Manager in Charge of IR The Company has established the office for public relations and IR and assigned three employees to it.
CategoryRespect for Stakeholders Measures/Supplementary ExplanationStipulation of Internal Rules for Respecting the Position of Stakeholders The Company stipulates in the Citizen Group Code of Conduct that the positions of the stakeholders shall be respected.
Implementation of Environmental Activities, CSR Activities etc. The Company prepares Sustainability & CSR Report that includes a report on environmental activities and activities that contribute to society. This report is made widely available through the Company’s website and other channels.
Development of Policies on Information Provision to Stakeholders The Company intends to improve the CSR initiatives through communication with all stakeholders. The Citizen Group Code of Conduct provides that “corporate information shall be disclosed actively and fairly and managed appropriately.”
Other The Company aims to create an environment that is easy to work in for all the employees, regardless of their attributes. To promote the active participation of women, the Company has formed a diversity project team. The Company also gives support to all employees so that they can show their ability to the fullest by encouraging tailored communication with them including regular meetings with employees who are raising a child or caring for a family member.The ratio of female managers at major Group companies is posted at Citizen Group ESG Data .

(5)Adoption of Anti-Takeover Measures

The Company does not adopt anti-takeover measures.
As its name indicates, the Citizen Group’s mission is to provide citizens around the world with better products and services, and the Group has been working to secure and enhance its corporate value and the common interests of shareholders by being appreciated by citizens and working for the lives of people worldwide through manufacturing under its corporate philosophy “Loved by citizens, working for citizens.” The Company believes that the individuals who control the decisions on its financial and business policies must be able to steadily put into practice the Group’s business strategies from a medium- to long-term perspective based on the understanding of the Group’s corporate philosophy and business characteristics, and that they must make it possible for the Company to continue to secure and enhance its corporate value and the common interests of shareholders sustainably.
The Company believes that even if a large-scale purchase act is conducted against the Company, it should ultimately be left to the shareholders to decide whether or not the Company should accept it. The Company will not unconditionally deny a large-scale purchase act if it will contribute to the corporate value and the common interests of shareholders of the Company.
However, assuming that the legal system and the financial environment as of today’s date exist, a large-scale purchase act that will not contribute to the corporate value and the common interests of shareholders of the Company is also expected. A large-scale purchase act includes an act that will not sincerely aim for rational management given its purpose and method and will cause unrecoverable damage to the Company, an act that could virtually force the shareholders to sell their shares, an act that will not provide sufficient time and information for the shareholders and the board of directors of the target company to examine the conditions for the purchase or for the board of directors of the target company to present an alternative plan, and an act that will require negotiations with the purchaser for the target company to achieve more advantageous conditions than those presented by the purchaser.
The Company believes that those who conduct a large-scale purchase act such as that described above are not appropriate to control decisions on the Company’s financial and business policies. Accordingly, the Company will take appropriate measures based on the Financial Instruments and Exchange Act, the Companies Act and other related laws and regulations to secure its corporate value and the common interests of shareholders, including making efforts to secure time and information for the shareholders to examine the large-scale purchase act by asking the person who is attempting to conduct the large-scale purchase act to provide necessary and sufficient information to enable the shareholders to make an appropriate judgment and disclosing the opinions of the Board of Directors to that person.

Sustainability Initiatives

The Citizen Group has set sustainable management as the Group vision based on its Corporate Philosophy of “Loved by citizens, working for citizens.” The Sustainability Committee, which is chaired by the Company’s President and CEO, is in charge of promoting sustainable management. The Company has also evaluated the level of impact of its business activities on social issues and identified five material issues, for which priorities were set. It also discloses a roadmap for the period through 2030 toward solution of social issues.
In its businesses, the Company takes steps to realize sustainable factories by ensuring its production facilities have been set up to reflect consideration for the business process across the entire value chain. By doing so, the Company is able to create sustainable products, whereby all products and services reflect not only the Company’s longstanding consideration for the environment but also consideration for social issues such as avoiding human rights abuses in the production and procurement of raw materials, which could come about if conflict minerals were involved.

Regarding human capital, the Company pursue numerous related initiatives to work on its management strategies and issues, based on its understanding that it is people that form the foundation of a company’s competitiveness. In its recruitment activities, the Company emphasizes industry-ready human resources, including mid-career employees, aiming to strengthen e-commerce and digital marketing and advance strategies for priority regions, including the promising Asian market. Regarding the deployment and development of human resources, the Company conducts talent management, thereby checking the experience and skills of each employee and providing training needed to fill in gaps in its human resource portfolio. With regard to employee engagement, the Company began to conduct an annual employee awareness survey in 2016 to learn more about its employees and takes countermeasures as needed.

Concerning intellectual property, the Company has been focusing its efforts on activities for protecting its businesses. Concerning intellectual property, the Company has been focusing its efforts on activities for protecting its businesses. Specifically, the Company will integrate its intellectual property information with market and business information, thereby enhancing the strategic use of intellectual property information with the aim of contributing more effectively to the planning and implementation of management (business) strategies and eventually to improving its corporate value.

Further, to help solve the climate change problem, a global issue, the Company has established the CITIZEN Group Environmental Vision 2050 and CITIZEN Group Environmental Goals 2030 based on the CITIZEN Group Environmental Policy, aiming to achieve virtually zero CO2 emissions from its factories and offices.
To reach that environmental goal, the CITIZEN Group announced its approval to a proposal for the Task Force on Climate-Related Financial Disclosures (TCFD) in FY 2020. It also identified and assessed risks and opportunities related to climate change, using two scenarios of different assumptions of future temperature rises (2°C scenario and 4°C scenario) as requested by the TCFD proposal. For risks that have been identified, CO2 reduction and environmental consideration in products will be promoted with an eye to reducing the risk of the 4°C scenario in which temperature rise progresses and making the 2°C scenario, in which targets internationally promised are achieved, come true.

Further, to advance environmentally friendly management as an opportunity common to the two scenarios, the Company is switching to using 100% electricity from renewable energy sources at Tokyo Works and Tokorozawa Works, and installing solar power generation facilities at its domestic and overseas factories, among other measures, in addition to continuing existing energy-saving activities.

The Company’s greenhouse gas emission reduction target for 2030, the CITIZEN Group Environmental Goals 2030, has been recognized by the SBT Initiative as a scientifically based level to achieve the Paris Agreement, and SBT certification was obtained.

Policy for cross-shareholdings & Standard for voting cross-shareholdings

(1)Policy for cross-shareholdings

The Company will have cross-shareholdings if it judges, after comprehensive consideration, that they will contribute to maintaining and strengthening the business relations of the Citizen Group in the medium to long term as well as the smooth management of the business operations of the Company and the development of the business. The basic policy for the verification of individual cross-shareholdings is that their rationality and necessity will be examined at a meeting of the Board of Directors each year in light of relationships between business partners and the Group and the possibility of mutually enhancing the corporate value and that the scale of shareholdings will be reduced if the significance of continuing to hold the shares has diluted.

(2)Standard for voting cross-shareholdings

With respect to the standards for the exercise of the voting rights, the Company will make a judgement on the exercise of the voting rights according to the standard of the contribution to the business of the Group in the medium to long term.

Stock Holding (As of March 31, 2023)

(1)Of all stocks held, the number of issues of stocks acquired for purposes other than genuine investment and the total amount of such investments on the balance sheet

28 issues JPY 31,500 Million

(2)Categories, main issues, number, amount on the balance sheet, and investment purpose of stocks acquired purposes other than genuine investment

Issue FY2022 FY2021 Investment purpose The company's shares hold
Number of stocks (stocks) Number of stocks (stocks)
Amount on
the balance sheet
(Million yen)
Amount on
the balance sheet
(Million yen)
MARUBENI
CORPORATION
5,134,000 5,134,000 We own the company’s shares to facilitate the business activities of our Machine Tools business segment. We own a joint venture with the company to expand sales in the Americas. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
9,218 7,321
Issue MARUBENI
CORPORATION
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
5,134,000 9,218
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
5,134,000 7,321
We own the company’s shares to facilitate the business activities of our Machine Tools business segment. We own a joint venture with the company to expand sales in the Americas. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
MITSUBISHI ELECTRIC CORPORATION 2,542,400 2,542,400 We own the company’s shares to facilitate the business activities of our Machine Tools business segment and Devices and Components business segment. Numerical control devices manufactured by the company are incorporated mainly in our sliding headstock type models. In addition, we develop machine control technologies with the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
4,013 3,584
Issue MITSUBISHI ELECTRIC CORPORATION
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
2,542,400 4,013
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
2,542,400 3,584
We own the company’s shares to facilitate the business activities of our Machine Tools business segment and Devices and Components business segment. Numerical control devices manufactured by the company are incorporated mainly in our sliding headstock type models. In addition, we develop machine control technologies with the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
NIKON CORPORATION 2,105,300 2,105,300 We own the company’s shares to facilitate the business activities of our Devices and Components business segment. We sell mainly LCD panels to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
2,852 2,766
Issue NIKON CORPORATION
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
2,105,300 2,852
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
2,105,300 2,766
We own the company’s shares to facilitate the business activities of our Devices and Components business segment. We sell mainly LCD panels to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
RHYTHM CO., LTD. 597,181 597,181 We own the company’s shares to facilitate the business activities of our Watches business segment. We established a license tie-up with the company regarding the use of the CITIZEN trademark. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
1,117 890
Issue RHYTHM CO., LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
597,181 1,117
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
597,181 890
We own the company’s shares to facilitate the business activities of our Watches business segment. We established a license tie-up with the company regarding the use of the CITIZEN trademark. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
TOKIO MARINE HOLDINGS, INC. 295,325 196,875 We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
752 1,403
Issue TOKIO MARINE HOLDINGS, INC.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
295,325 752
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
196,875 1,403
We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
RYODEN CORPORATION 414,900 414,900 We own the company’s shares to facilitate the business activities of our Watches business segment. We procure mainly numerical control devices made by Mitsubishi Electric from the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
775 706
Issue RYODEN CORPORATION
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
414,900 775
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
414,900 706
We own the company’s shares to facilitate the business activities of our Watches business segment. We procure mainly numerical control devices made by Mitsubishi Electric from the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
MITSUBISHI UFJ FINANCIAL GROUP, INC. 894,200 894,200 We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
758 679
Issue MITSUBISHI UFJ FINANCIAL GROUP, INC.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
894,200 758
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
894,200 679
We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
NATIONAL ELECTRONICS HOLDINGS LTD. 44,921,250 44,921,250 We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. None
702 730
Issue NATIONAL ELECTRONICS HOLDINGS LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
44,921,250 702
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
44,921,250 730
We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold None
DAI NIPPON PRINTING CO., LTD. 111,500 111,500 We own the company’s shares to facilitate the business activities of our Electronic and Other Products business segment. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
413 320
Issue DAI NIPPON PRINTING CO., LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
111,500 413
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
111,500 320
We own the company’s shares to facilitate the business activities of our Electronic and Other Products business segment. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
MIZUHO FINANCIAL GROUP, INC. 202,665 202,665 We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
380 317
Issue MIZUHO FINANCIAL GROUP, INC.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
202,665 380
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
202,665 317
We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
JAPAN PURE CHEMICAL CO.,LTD. 116,800 116,800 We own the company’s shares to facilitate the business activities of our Watches business segment. We procure from the company plating chemicals that are used for watch components. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
307 280
Issue JAPAN PURE CHEMICAL CO.,LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
116,800 307
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
116,800 280
We own the company’s shares to facilitate the business activities of our Watches business segment. We procure from the company plating chemicals that are used for watch components. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
MARUI GROUP CO., LTD. 96,113 96,113 We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. None
194 216
Issue MARUI GROUP CO., LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
96,113 194
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
96,113 216
We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold None
SHINKO SHOJI CO.,LTD. 153,800 153,800 We own the company’s shares to facilitate the business activities of our Devices and Components business segment. We engage primarily in the sale of LCD panels and the procurement of electronic parts with the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
188 140
Issue SHINKO SHOJI CO.,LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
153,800 188
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
153,800 140
We own the company’s shares to facilitate the business activities of our Devices and Components business segment. We engage primarily in the sale of LCD panels and the procurement of electronic parts with the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
STAR MICRONICS CO., LTD. 100,000 100,000 We own the company’s shares to facilitate the business activities of our Machine Tools business segment. We procure mainly parts for watches from the company and its affiliates. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
180 154
Issue STAR MICRONICS CO., LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
100,000 180
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
100,000 154
We own the company’s shares to facilitate the business activities of our Machine Tools business segment. We procure mainly parts for watches from the company and its affiliates. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
THE HACHIJUNI BANK,LTD. 124,000 124,000 We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
71 50
Issue THE HACHIJUNI BANK,LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
124,000 71
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
124,000 50
We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
ISETAN MITSUKOSHI HOLDINGS LTD. 44,959 44,635 We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner. None
66 43
Issue ISETAN MITSUKOSHI HOLDINGS LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
44,959 66
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
44,635 43
We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner.
The company's shares hold None
SUMITOMO MITSUI FINANCIAL GROUP, INC. 12,229 12,229 We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
64 47
Issue SUMITOMO MITSUI FINANCIAL GROUP, INC.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
12,229 64
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
12,229 47
We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
J. FRONT RETAILING Co., Ltd. 24,724 24,191 We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner. None
32 24
Issue J. FRONT RETAILING Co., Ltd.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
24,724 32
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
24,191 24
We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner.
The company's shares hold None
BICCAMERA INC. 20,000 20,000 We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. None
22 21
Issue BICCAMERA INC.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
20,000 22
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
20,000 21
We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold None
JOSHIN DENKI CO.,LTD. 10,000 10,000 We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. None
19 19
Issue JOSHIN DENKI CO.,LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
10,000 19
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
10,000 19
We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold None
NIPPON BS BROADCASTING CORPORATION. 16,000 16,000 We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with BicCamera Inc., the parent company, in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. None
14 16
Issue NIPPON BS BROADCASTING CORPORATION.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
16,000 14
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
16,000 16
We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with BicCamera Inc., the parent company, in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold None
THE YAMANASHI CHUO BANK, LTD. 655 655 We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. Yes
0 0
Issue THE YAMANASHI CHUO BANK, LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
655 0
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
655 0
We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold Yes
ASIA COMMERCIAL HOLDINGS LTD. 111,750 111,750 We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. None
0 0
Issue ASIA COMMERCIAL HOLDINGS LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
111,750 0
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
111,750 0
We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above.
The company's shares hold None
HULIC CO., LTD. 888,300 We owned the company’s shares to smooth operation of all its business operations, but sold all of them in the current fiscal year because the significance of holding these shares has become diluted. Yes
978
Issue HULIC CO., LTD.
FY2022 Number of stocks (stocks) Amount on the balance sheet(Million yen)
FY2021 Number of stocks (stocks) Amount on the balance sheet(Million yen)
888,300 978
We owned the company’s shares to smooth operation of all its business operations, but sold all of them in the current fiscal year because the significance of holding these shares has become diluted.
The company's shares hold Yes

(Note)1. "-" indicates that the Company does not hold the issue.

2. Tokio Marine Holdings, Inc. conducted a 3-for-1 stock split with a record date of September 30, 2022.