Shareholdings

As of March 31, 2017

1. The number of different stocks held for purposes other than net investment and total amounts recorded on the balance sheet:

   26 different stocks: 1,126 million yen

2. Shareholdings, the number of stocks, amounts recorded on the balance sheet and purpose of ownership of stocks held for purposes other than portfolio investment

   Special investment stocks

   Stock name	Number of stocks (Shares)	Amounts recorded on the balance sheet (Millions of yen)	Purpose of stockholdings
   KDDI CORPORATION	186,000	543	(Note 1)
   NEC Corporation	925,635	248	(Note 1)
   KYOWA EXEO CORPORATION	120,350	193	(Note 1)
   Sumitomo Mitsui Financial Group, Inc	10,780	43	(Note 1)
   Nihon Denkei Co., Ltd.	30,560	36	(Note 1)
   Murata Manufacturing Co., Ltd.	445	7	(Note 1)
   HIROSE ELECTRIC CO., LTD.	58	0	(Note 1)
   Daiwa Securities Group Inc.	363	0	(Note 1)
   Sumitomo Mitsui Trust Holdings, Inc.	64	0	(Note 1)

   Note 1. In light of the execution of the Company Group’s operations, these stocks are held to sustain or strengthen the relationship with the relevant companies.

   Deemed shareholdings

   Stock name	Number of stocks (Shares)	Amounts recorded on the balance sheet (Millions of yen)	Purpose of stockholdings
   NIPPON TELEGRAPH AND TELEPHONE CORPORATION	204,000	969	(Note 2)
   Sumitomo Mitsui Trust Holdings, Inc.	120,000	463	(Note 2)
   HIROSE ELECTRIC CO., LTD.	22,400	344	(Note 2)
   NEC Corporation	900,000	241	(Note 2)
   Sumitomo Mitsui Financial Group, Inc.	40,000	161	(Note 2)
   Daiwa Securities Group Inc.	219,000	148	(Note 2)
   Murata Manufacturing Co., Ltd.	5,000	79	(Note 2)

   Notes 2. The Company has contributed the stocks in the above stated company to the employee pension trust and possesses the right to instruct the exercise of voting rights granted to the stocks in the relevant company, held as the trust fund by the Company.

   Notes 3. In selecting the Company’s major shareholdings based on the amounts recorded on the balance sheet, special investment stocks and deemed shareholdings were not combined.

3. Investment stocks held for the purpose of portfolio investment

   Not applicable

4. Basic principles for exercising rights to vote regarding cross-shareholdings and shares held as cross-shareholdings

   In order to enhance corporate value over the mid to long term, the Company, in some cases, strategically holds shares of other listed companies, mainly its business partners. All factors of its business and marketing strategies, etc. are taken into account. In such cases, the Company verifies the significance and reasonableness of keeping the shares of other listed companies held as cross-shareholdings and regularly reports to the Board of Directors. When exercising the Company’s rights to vote pertaining to the shares held as cross-shareholdings, the Company comprehensively makes a decision to vote for or against a resolution by taking into consideration management policies and governance structure of the relevant listed company and from the viewpoint of enhancing the Company’s corporate value over the mid to long term.