Initiatives to Improve Corporate Value
Policy-Oriented Stocks: Verification Process, Standards
for the Exercise of Voting Rights
Verification process for value of holding of policy-oriented stocks
Discussing Measures (Qualitative Judgment)
Quantitative
Judgment
Consideration from Risks/Returns Perspective
Quantitative
Standard
OSatisfaction
Net Gross Profit after Deduction of
Capital Cost Gross Profit-Credit
Cost Capital Cost
*(RWAX Target Capital Adequacy
Ratio+Impairment VaR) × Cost of
Capital Ratio
RWA: Risk Weighted Assets
VaR: Value at Risk
Discussing policies on holding based on
the forecast of risks and returns
in the medium-to long-term
× Non-Satisfaction
Consider probability of
improvement in
transactional
relationship, etc.
× No Prospect of
Improvement
Measures
Consideration from Strategic Aspects
Discussing from the perspective
of achieving the medium-term plan
on the volume of holding, etc.
OProspect of Improvement
Holding
continues
Measures to
reduce holding
Holding continues
(Negotiation on profitability
improvement/
support for revitalization)
Resona group has established the "Policy for the Voting Right Exercise Standards of Holding Policy-Oriented Stocks"
in relation to exercise the voting rights of policy-oriented stocks. We have built a process to individually judge and verify
the approval or disapproval of all proposals.
Fundamental concepts on the exercise of voting rights (Discribed in "Standards for the Exercise of Voting Rights of Policy-Oriented Stocks")
The Resona Group will exercise voting rights of policy-oriented stocks based on the following policy:
1.
Irrespective of interests of transactions with clients, make an effort to vote yes or no on an individual basis from the viewpoint of
sustainably improving corporate value;
2.
Not to exercise voting rights in a manner to resolve certain political or social problems; and
Resona Holdings, Inc.
3.
If any scandal or an anti social act is committed by a company or corporate manager, etc., exercise voting rights with the intention of
contributing to the improvement of corporate governance.
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