By routinely engaging proactively in constructive “dialog with a purpose” (engagement) and collaborating with the management team based on a common understanding, we endeavor to increase the value of our investee companies and also accurately assess the situation at our investee companies. Because of this, as a general rule we will approve resolutions chiefly concerning the following matters provided that they have been discussed in advance with the investee company and we have received an adequately reasonable explanation, and there are no issues found in light of the points to consider for each type of resolution that are listed below (which are not exclusive). However, if we receive a resolution for which this is not true, we will determine how to vote on a case-by-case basis and then indicate our intention.

Approval of financial statements:

Is there an opinion from the independent financial auditor or auditors? What are the substance of such opinion?

Disposition of surplus:

Does it strike a balance with the financial position, dividend payout ratio, and growth potential?

Election of directors:

Does the candidate have any history of illegal or anti-social activities?

Election of auditors:

Does the candidate have any history of illegal or anti-social activities?

Amending the articles of incorporation:

What is the background for the changes in the purposes? What are the reasons for increasing the authorized capital? What is the nature of the greater board of directors’ authority?

Revising director compensation:

Does the person have any history of illegal or anti-social activities? How does it relate to his or her performance? Does it deviate from the general level of compensation?

Issuing director’s retirement bonuses:

Does the person have any history of illegal or anti-social activities? Is it paid to outside directors and/or auditors?

Stock options:

Are the grantees appropriate? What are the terms of the options?

Electing independent financial auditors:

What is the background behind the change?

Acquiring the company’s own shares (buyback):

Are shareholder interests treated equitably?

Acquisitions, mergers, and third-party allotments (private placements):

What is the purpose and nature of the transaction? What is the effect on shareholder interests?

Shareholder proposals:

What is the effect on shareholder interests?