In principle, the Company's policy is to proceed with the sale of strategic shareholdings, and we have ongoing discussions concerning the value of strategic shareholdings. Regarding strategic shareholdings, we balance the risks and costs involved in holding such shares with potential benefits into business strategy, such as additional opportunities to increase the revenues of our businesses through expansion of transactions, or business alliances with partners whose shares are held, and we shall hold such shares only if such shareholdings will contribute to maintaining or enhancing the corporate value of the Nomura Group.

These topics are discussed by the Investment Securities Committee established by the Board of Directors, and the Board of Directors verifies the content of the discussion. As a result, we will proceed with the sale of such shareholdings, where it has been determined to be reasonable upon consideration of the impact on the market and other circumstances. We will continue to sell such shareholdings with a target of reducing the names of strategic shareholdings held (including unlisted names) by 25% in the five years from April 1, 2022 to March 31, 2027.

Quantitative analysis verifies whether the return on required capital (revenues and dividends etc. from transactions with companies that issue strategic shareholdings) exceeds the required level. If it meets the required level, we will consider continuous holding of our position, and if not, we will conduct further qualitative analysis.

Qualitative analysis considers whether to continue to hold or sell based on medium to long term revenue projections, holding objectives and periods, relationships with issuers and regional economies, and other strategic factors.