Supplementary Materials

Status of Stock Holdings
I. Standards and ways of thinking by category in investments
The Group holds investment stocks for the purpose of pure investment in order to reap earnings by an increase in equity value
and by receiving dividends and so forth. In addition, the Group holds investment stocks for purposes other than pure investment
purposes (hereinafter “non-pure investment stocks”). The purposes of holding non-pure investment stocks are to maintain andto expand long-term, stable business relationships, to maintain and to strengthen business partnerships, and to reap medium- tolong-term earnings by an increase in equity value and by receiving dividends and so forth.

II. Holdings stocks on Taiyo Life Insurance Company
Of the Company and its consolidated subsidiaries, Taiyo Life is the consolidated subsidiary with the largest balance of investment stock. The status of Taiyo Life’s stock holding is as follows:

1. Non-pure investment stocksa.	Policies to hold shares, the rationality to hold shares, verification contents at the Board of Directors meetings about theappropriateness to hold individual companies
Every year, the boards of directors of the Company and Taiyo Life Insurance Company shall verify the propriety of holding
individual non-pure investment stocks by concretely examining the adequacy of the holdings, whether the benefits and risks arecommensurate with the capital costs, and other factors.
b.	The number of stocks and the amounts on Balance Sheets
Total of balance sheet
amount (¥ millions)

The number of stocks

Unlisted stocks

5

Stocks other than unlisted stocks

36

¥

2,871
263,292(Stocks with increased number of shares in this fiscal year)
The number of stocks

Unlisted stocks
Stocks other than unlisted stocks

Total of acquisition costs
related to the increasein the number of shares(¥ millions)

0

¥

2

—

3,611

(Stocks with decreased number of shares in this fiscal year)
The number of stocks

82

Unlisted stocks0

Stocks other than unlisted stocks

1

T&D Holdings INTEGRATED REPORT 2019

Total of sale pricerelated to the decreasein the number of shares(¥millions)¥

The reasons forincreasing the number of shares—
644

For additional purchase as the purpose of expectation of the quantitative effectiveness to hold thestocks by further enhancement with the long-termand stable business relationships

c.	The information about the number of the stocks and balance sheet amount for Specified Investment Shares andRegarded as Holding Shares
Specified Investment SharesYear ended
March 31, 2018
StocksYear ended
March 31, 2019

The number of shares

Holding purposes, quantitative effects to hold stocks,
and reasons to increase the number of stocks.

Y=Yes/N=No

Balance sheet amount ¥millions
5,862,032

5,862,032¥ 26,642¥ 41,913

7,411,520

7,411,520

22,17523,716

8,096,575

8,096,575

20,901

22,52814,350,000

14,350,000

24,416

20,4128,566,559

9,566,559

Keio Corporation

SHIMADZU CORPORATION

Mitsui Fudosan Co., Ltd.

Mitsubishi Electric Corporation

Tokyu Corporation
14,203

18,492

31,140,000

31,140,000

21,134

16,7847,700,000

7,700,000

13,84815,442

18,838,372

18,838,372

Daiwa Securities Group Inc.

Mitsubishi Estate Co., Ltd.

Mitsubishi Chemical Holdings
Corporation

19,412

14,682

17,798,316

3,559,663

15,41314,0607,160,800

8,160,800

Tsubakimoto Chain Co.

MITSUI & CO., LTD.
13,05014,024

2,661,820

2,661,820

11,397

10,90815,220,718

15,220,718

Sompo Holdings, Inc.

Mitsubishi UFJ Financial
Group, Inc.

10,6088,371

Whether the counterpart
company holds theCompany’s share

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
For the expectation to receive high quantitative effect of holding benefits through thereinforcement with the long-term and stable business relationships, the number of stocks
has been increased.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N*notice1

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
Due to the stock integration, the number of the stocks has been decreased. So there isvirtually no change in the number of shares.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
For the expectation to receive high quantitative effect of holding benefits through thereinforcement with the long-term and stable business relationships, the number of stocks
has been increased.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N*notice2

N*notice3

T&D Holdings INTEGRATED REPORT 201983

Supplementary Materials

Status of Stock Holdings

Year ended
March 31, 2018
StocksYear ended
March 31, 2019

The number of shares

Holding purposes, quantitative effects to hold stocks,
and reasons to increase the number of stocks.

Y=Yes/N=No

Balance sheet amount ¥millions
5,486,400

5,486,400

6,386

6,111

3,282,010

3,282,010

5,933

4,621

1,400,000

1,400,000

5,901

4,459

2,734,500

2,734,500

3,002

4,079

1,085,040

1,085,040

2,910

2,925

700,000

700,000

3,150

2,723

1,885,000

1,885,000

2,835

2,599

760,000

760,000

2,149

2,587

573,805

573,805

1,968

2,168

2,817,987

2,817,987

1,933

1,823

1,209,075

1,209,075

2,447

1,760

422,029

422,029

1,468

1,420

678,347

678,347

1,325

1,208

949,088474,544828

792

Obayashi Corporation

KURARAY CO., LTD.

TS TECH Co.,Ltd.

RAITO KOGYO CO., LTD.

Electric Power Development
Co., Ltd. (J-POWER)

Showa Denko K.K.

Tsukishima Kikai Co., Ltd

Sotetsu Holdings, Inc.

Tsubakimoto Kogyo Co., Ltd.

Hokuetsu Corporation

Kurimoto, Ltd.

Taikisha Ltd.

Takasago Thermal Engineering
Co., Ltd.

Toppan Printing CO., LTD.

84

T&D Holdings INTEGRATED REPORT 2019

Whether the counterpart
company holds theCompany’s share

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
Due to the stock integration, the number of the stocks has been decreased. So there isvirtually no change in the number of shares.

YYear ended
March 31, 2018
StocksYear ended
March 31, 2019

Holding purposes, quantitative effects to hold stocks,
and reasons to increase the number of stocks.

The number of shares

Y=Yes/N=No

Balance sheet amount ¥millions
365,500

365,500

724

671

375,000

375,000

506

389

260,000

260,000

356

342

200,643

200,643344

298

150,000

150,000

238

228

210,120

210,120278

225

216,800

216,800

251

222

205,220

205,220

134

114

22,584

22,584143

102

50,00050,000117

77

457,500—

581—

705,869—

414—

Advance Create Co., Ltd.

Daiwa Motor Transportation
Co., Ltd.

Sanwa Holdings Corporation

TOYO WHARF&WAREHOUSE
CO., LTD.

Meito Sangyo Co., Ltd.

MEIWA INDUSTRY CO., LTD.

MAEZAWA KASEI INDUSTRIESCO., LTD.

Mitsubishi Paper Mills Limited

NKK SWITCHES CO., LTD.

San ju San Financial Group,
Inc.

Nisshin Steel Co., Ltd.
Concordia Financial Group,
Ltd.

Whether the counterpart
company holds theCompany’s share

The purpose holding the stocks is to maintain and strengthen business partnerships in insurance, and to reap medium- to long-term earnings through by an increase in equity value
and by receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N*notice4

Taiyo Life Insurance Company used to have the stocks to maintain and expand long-termand stable business relationships, and to reap medium- to long-term earnings by anincrease in equity value and by receiving of dividends and so forth.

N

Taiyo Life Insurance Company used to have the stocks to maintain and expand long-termand stable business relationships, and to reap medium- to long-term earnings by anincrease in equity value and by receiving of dividends and so forth.

N*notice1 The subsidiary Mitsubishi Chemical Corporation holds stocks.
*notice2 The subsidiary Sompo Japan Nipponkoa Insurance Inc. holds stocks.
*notice3 The subsidiary MUFG Bank, Ltd. holds stocks.
*notice4 The subsidiary THE MIE BANK,LTD. holds stocks.

Regarded as Holding Shares
Not applicable.

T&D Holdings INTEGRATED REPORT 201985

Supplementary Materials

Status of Stock Holdings

2. Stocks for which the holding purpose is pure investment
Fiscal 2017

Fiscal 2018

The number of stocks

Total of balance sheet
amount (¥ millions)

The number of stocks

Total of balance sheet
amount (¥ millions)

Unlisted stocks

42¥ 19,415

42¥ 19,200

Stocks other than unlisted stocks

20

224,02120

181,362

Fiscal 2018 (¥millions)
Total dividends received

Unlisted stocks
Stocks other than unlisted stocks

¥

110
6,446

Total gains (losses)
on sales¥Total of valuation gains (losses)
Net unrealized gains(losses)23¥ 1,824¥ —10,18038,830168

3. Change in investment purpose during fiscal 2018
a. Stocks of which the holding purpose has been changed from pure investment to non-pure investment
Not applicable.
b. Stocks of which the holding purpose has been changed from non-pure investment to pure investment

Concordia Financial Group, Ltd.

86

T&D Holdings INTEGRATED REPORT 2019

Valuation losses

The number of shares

Balance sheet amount¥millions

705,869¥ 301

III. Holdings stocks on Daido Life Insurance Company
Of the Company and its consolidated subsidiaries, Daido Life is the consolidated subsidiary with the second largest balance ofinvestment stock. The status of Daido Life’s stock holding is as follows:

1. Non-pure investment stocksa.	Policies to hold shares, methods to verify the rationality to hold shares, verification contents at the Board of Directors
meetings about the appropriateness to hold individual companies
Every year, the boards of directors of the Company and Daido Life Insurance Company shall verify the propriety of holding
individual non-pure investment stocks by concretely examining the adequacy of the holdings, whether the benefits and risks arecommensurate with the capital costs, and other factors.
b. The number of Stocks and the amounts on Balance Sheets
Total of balance sheet
amount (¥ millions)

The number of stocks

Unlisted stocks

98

Stocks other than unlisted stocks

78

¥

5,605
248,880(Stocks with increased number of shares in this fiscal year)
The number of stocks

Total of acquisition costs
related to the increasein the number of shares(¥millions)

The reasons for increasing the number of shares

Unlisted stocks

2¥ 1,441

For new and additional purchase as the purpose of
new construction on business relationships

Stocks other than unlisted stocks

2

1,823

For new and additional purchase as the purpose offurther enhancement on business relationships(Stocks with decreased number of shares in this fiscal year)
The number of stocks

Unlisted stocks

4

Stocks other than unlisted stocks

12

Total of sale pricerelated to the decreasein the number of shares(¥millions)¥20
21,687

T&D Holdings INTEGRATED REPORT 201987

Supplementary Materials

Status of Stock Holdingsc.	The information about the number of the stocks and balance sheet amount for Specified Investment Shares andRegarded as Holding Shares
Specified Investment SharesYear ended
March 31, 2018
StocksYear ended
March 31, 2019

The number of shares

Holding purposes, quantitative effects to hold stocks,
and reasons to increase the number of stocks.

Y=Yes/N=No

Balance sheet amount ¥millions
64,168,770
Mitsubishi UFJ Financial
Group, Inc.

64,168,770¥ 44,725¥ 35,292

3,500,400

3,500,400

19,497

20,3725,000,000

5,000,000

20,50017,595

7,607,000

7,607,000

18,85016,0581,552,936

1,727,036

14,492

15,165

6,549,500

6,549,500

21,574

14,20528,590,000

28,590,000

Ezaki Glico Co., Ltd.

Daiwa House Industry Co., Ltd.

Kansai Paint Co., Ltd.

Nuernberger
BeteiligungsAktiengesellschaft

ONO PHARMACEUTICAL
CO., LTD.

Resona Holdings, Inc.
16,067

13,714

627,300

313,700

27,017

13,0272,569,046

2,569,046

11,123

10,391

6,684,000

6,684,000

13,9299,852

9,040,518

9,040,518

8,244

9,845

3,656,550

3,656,550

4,998

5,967

SMC Corporation

TKC Corporation

FUJI CORPORATIONKONICA MINOLTA, INC.

The Kansai Electric Power
Company, Incorporated

88

T&D Holdings INTEGRATED REPORT 2019

Whether the counterpart
company holds theCompany’s share

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N*notice1

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and strengthen business partnerships in insurance products/services and asset management, and to reap medium- to long-term earnings
by an increase in equity value and by receiving dividends and so forth. The figures on theeffect of holdings have not been disclosed as it contains the transaction information to thecounterpart company. It’s been quantitatively periodically examined whether the effectiveness and risks to hold stocks have been commensurate with the capital costs.
For the reinforcement of the business partnerships, the number of stocks has been increased.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and strengthen business partnerships inthe sales, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N*notice2

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and strengthen partnerships to support thecontinuation and development of small and medium enterprises, and to reap medium- tolong-term earnings by an increase in equity value and by receiving dividends and so forth.
The figures on the effect of holdings have not been unveiled as it contains the transaction
information to the counterpart company. It’s been quantitatively periodically examined
whether the effectiveness and risks to hold stocks have been commensurate with the capitalcosts.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

YYear ended
March 31, 2018
StocksYear ended
March 31, 2019

The number of shares

Holding purposes, quantitative effects to hold stocks,
and reasons to increase the number of stocks.

Y=Yes/N=No

Balance sheet amount ¥millions

Electric Power Development
Co., Ltd. (J-POWER)

1,993,680

1,993,680

5,347

5,374

2,344,000

2,344,000

5,620

5,027

8,660,000

8,660,000

5,507

3,559

3,824,000

3,824,000

3,846

3,223

4,032,700

4,032,700

2,915

3,012

633,800

633,800

2,078

2,950

2,115,700

2,115,700

3,182

2,917

1,000,000

1,000,000

2,581

2,782

1,400,000

1,400,000

2,718

2,564

618,525

618,525

2,648

2,534

705,600

705,600

3,316

2,205

790,760

790,760

2,506

2,127

Mitsubishi Pencil Co., Ltd.

OKASAN SECURITIES GROUP
INC.

THE SHIZUOKA BANK, LTD.

MEISEI INDUSTRIAL CO., LTD.

Keihan Holdings Co., Ltd.

Tsukishima Kikai Co., Ltd

Mitsui Fudosan Co., Ltd.

Sekisui House, Ltd.

Sompo Holdings, Inc.

Daishi Hokuetsu Financial
Group, Inc.

MOS FOOD SERVICES, INC.

Whether the counterpart
company holds theCompany’s share

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

Y

The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.
The purpose holding the stocks is to maintain and expand long-term and stable business
relationships, and to reap medium- to long-term earnings by an increase in equity value andby receiving dividends and so forth. The figures on the effect of holdings have not been
disclosed as it contains the transaction information to the counterpart company. It’s been
quantitatively periodically examined whether the effectiveness and risks to hold stocks havebeen commensurate with the capital costs.

N*notice3

N*notice4

Y

T&D Holdings INTEGRATED REPORT 201989

Supplementary Materials

Status of Stock Holdings

Year ended
March 31, 2018
StocksYear ended
March 31, 2019

Whether the counterpart
company holds theCompany’s share

Holding purposes, quantitative effects to hold stocks,
and reasons to increase the number of stocks.

The number of shares

Y=Yes/N=No

Balance sheet amount ¥millions
PERSOL HOLDINGS CO., LTD.

GLORY LTD.

TEIJIN LIMITED

1,200,000

—

3,714

—

700,000

—

2,656

—

1,225,000

—

2,451

—

Daido Life Insurance Company used to have the stocks to maintain and expand longterm and stable business relationships, and to reap medium- to long-term earnings by anincrease in equity value and by receiving of dividends and so forth.

N

Daido Life Insurance Company used to have the stocks to maintain and expand longterm and stable business relationships, and to reap medium- to long-term earnings by anincrease in equity value and by receiving of dividends and so forth.

Y

Daido Life Insurance Company used to have the stocks to maintain and expand longterm and stable business relationships, and to reap medium- to long-term earnings by anincrease in equity value and by receiving of dividends and so forth.

N*notice1 The subsidiary MUFG Bank, Ltd. holds stocks.
*notice2 The subsidiary Resona Bank, Limited. holds stocks.
*notice3 The subsidiary Sompo Japan Nipponkoa Insurance Inc. holds stocks.
*notice4 The subsidiary The Daishi Bank, Ltd. holds stocks.

Regarded as Holding Shares
Not applicable.

2. Stocks for which the holding purpose is pure investment
Fiscal 2017

Fiscal 2018

The number of stocks

Total of balance sheet
amount (¥ millions)

The number of stocks

Total of balance sheet
amount (¥ millions)

Unlisted stocks

15¥ 9,16413¥ 4,826

Stocks other than unlisted stocks

21

35,81823

41,013Fiscal 2018 (¥millions)
Total dividends received

Unlisted stocks
Stocks other than unlisted stocks

Total gains (losses) on
sales

Total of valuation gains (losses)
Net unrealized gains(losses)¥ 1,568¥ —(¥ 189)

¥ 369

506

341

5,902

—

3. Change in investment purpose during fiscal 2018
Stocks of which the holding purpose has been changed from pure investment to non-pure investment
Not applicable.
Stocks of which the holding purpose has been changed from non-pure investment to pure investment
Not applicable.

90

T&D Holdings INTEGRATED REPORT 2019

Valuation losses

IV. T&D Holdings, Inc.
The status of the Company’s stock holding is as follows:

1. Non-pure investment stocksa.	Policies to hold shares, the rationality to hold shares, verification contents at the Board of Directors meetings about theappropriateness to hold individual companies
Not applicable.
b. The number of Stocks and the amount on Balance Sheets
Not applicable.
(Stocks with increased number of shares in this fiscal year)
Not applicable.
(Stocks with decreased number of shares in this fiscal year)
Not applicable.
c.	The information about the number of the stocks and the balance sheet amount for Specified Investment Shares andRegarded as Holding Shares
Specified Investment Shares
Not applicable.
Regarded as Holding Shares
Not applicable.

2. Stocks for which the holding purpose is pure investment
Not applicable.

3. Change in investment purpose during fiscal 2018
Stocks of which the holding purpose has been changed from pure investment to non-pure investment
Not applicable.
Stocks of which the holding purpose has been changed from non-pure investment to pure investment
Not applicable.

T&D Holdings INTEGRATED REPORT 201991

Supplementary Materials

GlossaryA
Annualized premiums

An adjusted figure for premiums paid using monthly, annual, or lump-sum payment methods showing total premiums paid on an annual basis.

Assumed business expense rate

One of the forecast rates used in the calculation of insurance premiums. It is the rate used to include business
expenses necessary for administering insurance policies.

Assumed investment yield

One of the forecast rates used in the calculation of insurance premiums. It is the predetermined discount rate
based on the expected earnings from the investment of insurance premiums.

C
Contingency reserve

A reserve included as part of the policy reserve to account for the risk of insurance payment events occurring at ahigher-than-expected rate due to higher-than-expected mortality and morbidity rates, and the risk of actual investment yields being lower than the assumed investment yields related to outstanding policies.
Contingency reserve can be classified into:
Contingency reserve I Corresponds to insurance risk
Contingency reserve II Corresponds to assumed investment yield risk
Contingency reserve III Corresponds to minimum guarantee risk relating to variable annuity and others
Contingency reserve IV Corresponds to insurance risk of Third Sector insuranceCore profit

An indicator showing core period earnings of life insurance companies, made up of insurance income and expenses (which include income from insurance premiums and insurance benefits and business expenses), and investment
income and expenses (which include mainly interest, dividends and income from real estate for rent). It is not an
item on the Company’s statement of operation, but is calculated by deducting capital gains, such as gains (losses)
on sales of securities and other one-time gains (losses), from ordinary profit.

E
ERM (Enterprise Risk Management)

A strategic management method used to achieve managerial goals such as raising corporate value and maximizing
earnings, through the integrated management of capital, profit and risk.

ESG investment

Selective investments focused on companies that pay adequate attention to the environmental, social and governance factors.

ESR (Economic Solvency Ratio)

An indicator of capital adequacy based on economic value, calculated by dividing net assets based on economic
value (surplus), by the risk volume (economic capital (EC)) quantified using the internal model. An ESR of 100%means that capital and risk are equal. The higher the ESR, the greater the amount of capital secured relative to risk.
Although ESR is widely used mainly in Europe, there is no standardized calculation method. Each life insurancecompany calculates ESR individually based on its internal models.

EV (Embedded Value)

Generally, life insurance policies extend over significantly long durations, resulting in a time gap between therecognition of revenues and expenses. EV is a concept used for measuring the corporate value of a life insurancecompany in consideration of this gap. EV (embedded value) refers to the amount of net assets after tax, which isconsidered to be attributable to shareholders, and is the sum of adjusted net assets calculated based on balance
sheets, etc., and the value of in-force business calculated based on policies in force.
<Specific nature of life insurance accounting>From the perspective of financial accounting, a life insurance company successfully acquiring new business in a year
apparently shows a decrease in profit for the corresponding period, due to a heavier burden of initial costs, such as
sales commissions. While there is a constant inflow of premiums each year, expenses gradually decrease over time,
which results in the accumulation of earnings over longer periods.

Typical Life Insurance Earnings Image
Earnings Incurred
Contact Date
(Period)
Incurrence of costs such as salescommissions and medical examination
costs concentrated at start of contract

Cost Incurred92

T&D Holdings INTEGRATED REPORT 2019

G
General account

The aggregate of a life insurer’s assets, other than those allocated to separate accounts. General account assets
are invested by a company to meet fixed guaranteed rates of return for policyholders, and that company bears theinvestment risk on such assets.

J
Japan’s Corporate Governance Code

Guidelines for corporate governance drafted by the Financial Services Agency and the Tokyo Stock Exchange,
which indicate a “a structure for transparent, fair, timely and decisive decision-making by companies, with due
attention to the needs and perspectives of shareholders and also customers, employees and local communities,” inthe form of a code of conduct to be observed by a listed company.

Japan’s Stewardship Code

Code of conduct for behavior for institutional investors setting out the principles as “responsible institutional investors,” designed to prompt sustainable growth of corporations through investment and dialogue.

L
Level-premium products

A type of insurance where the amount of the premium is constant from inception to the expiry of the premium
payment period.

M
MCEV (Market Consistent EV)

MCEV refers to Market Consistent EV, which is a method for evaluating EV in consistency with financial markets.
MCEV is an EV calculated based on the MCEV Principles established in June 2008 by the CFO Forum (an organization of major European insurance companies), whereby a market consistent evaluation method was applied with aview to further unify the calculation standards.

Mortality rate

Rates of death, varying by such parameters as gender, age, and health, used in pricing and computing liabilities for
future policyholder benefits for life insurance and annuity products.

N
Non-participating policy

Policies under which the policyholder receives no policyholder dividends. Non-participating policies generally
feature lower premiums than participating or semi-participating policies.

P
Participating policy

Policies under which the policyholder is eligible to share in the divisible surplus of a company—calculated based on
the mortality rate margin, investment yield margin, and business expence margin—through the receipt of annual
policyholder dividends.

Policy amount

Aggregate sum insured by a life insurance company. The total of policy amount at the end of a fiscal year is called
the “policy amount in force.” The total policy amount of policies (including converted policies) sold in a year iscalled the “new policy amount.”

Policy reserve

A reserve established for the fulfillment of insurance claims and other payments related to a company’s outstanding
policies that are expected to be paid in the future. The policy reserve consists of a premium reserve, an unearned
premium reserve, a repayment reserve, and a contingency reserve. A company uses the net level premium method
to calculate the amount it sets aside each year as a policy reserve. The policy reserve is one of the three reserves
comprising the reserve for policy and other reserves.

Positive spread/Negative spread

The state in which actual investment earnings exceed the expected return based on the assumed investment
yield is referred to as a “positive spread.” A “negative spread” is when actual investment earnings are below the
expected return.
Positive spread (Negative spread denoted in bracket) =(Investment yield on core profit – Average assumed investment yield) × Policy reserve in general account• “Investment yield on core profit” is calculated by dividing the numerator as investment earnings in general account included in core profit less the provision for interest portion of reserve for dividends to policyholder by thedenominator as policy reserve in general account.
• “Average assumed investment yield” is calculated by dividing the numerator as assumed interest by the denominator as policy reserve in general account.
• “Policy reserve in general account” represents the policy reserve in general account less contingency reserve
calculated by the following method.
Policy reserve in general account =(Policy reserve at beginning of fiscal year + Policy reserve at the end of fiscal year – Assumed interest) × 1/2

T&D Holdings INTEGRATED REPORT 201993

Supplementary Materials

Glossary

R
Reserve for policyholder dividends

A reserve used to fund the payment of policyholder dividends. The reserve for policyholder dividends is one of thethree reserves comprising the reserve for policy and other reserves. For a mutual life insurance company, a transfer
to reserve for policyholder dividends is treated as a disposition of net surplus. For a joint stock corporation, provision for reserve for policyholder dividends is treated as an expense.

Reserve for price fluctuations

Pursuant to provisions of the Insurance Business Act, companies maintain reserves to cover losses due to price fluctuations in assets subject to market price volatility, particularly investments in domestic and foreign stocks, yen-denominated bonds, and foreign currency-denominated bonds. This reserve may be used only to reduce deficits
arising from price fluctuations of those assets.

ROEV/Core ROEVROEV stands for Return on Embedded Value, which is an indicator for measuring capital efficiency by assuming
an increase in EV as profit in consideration of the specialty of life insurance accounting. Core ROEV is an indicatorusing an increase in EV mainly through the acquisition of new business.

S
Separate account

Assets related to variable insurance and variable annuity products, as well as some group pension products (including employee pension fund insurance and national pension fund insurance), are managed in a separate accountfor the purpose of directly returning investment results to policyholders. The investment results, less asset management fees, of the separate account assets are attributable to all policyholders so that the insurance company bears
limited or no investment risk on such assets.

Single-premium insurance

A type of insurance where the premium is paid in lump-sum at the conclusion of the policy which covers the entire
insurance period.

Small amount andshort term insurance businessType of insurance businesses that solely underwrite protection-type insurance products, involving small insured
amounts and policy periods within one year (two years for second sector) within a specified scale of operation.

Social bond

Bond issued to raise funds for contributing to solutions to global social issues, such as support for emerging countries and measures against global warming.

Solvency margin ratio

A risk indicator calculated as the total solvency margin (including net assets, the reserve for price fluctuations,contingency reserve, reserve for possible loan losses, etc.) divided by 1/2 of total risk, which includes such factors as
insurance risk due to a major earthquake or other disaster, investment risk, and various other risks. If a life insurancecompany’s solvency margin ratio falls below 200%, the regulatory authorities will require management to introduce
corrective measures to quickly return the company to soundness.

Standard mortality table

A table used by an insurance company for calculating “standard policy reserve,” required to be set aside subject tothe standards set out under the Insurance Business Act, which summarizes the data including the mortality rate andaverage life expectancy (average longevity into the future), by gender and age. Life insurance companies use thestandard mortality table as a guideline for insurance premiums.

Standard yield rate

A rate which is required by the supervisory authorities to be applied in calculating the “standard policy reserve (apolicy reserve required to be set aside from the standpoint of ensuring the business soundness of life insurancecompanies and protecting policyholders).”

Surrender and lapse amountThe total amount of money reimbursed on the surrender or lapse of insurance policies in a given fiscal year.
Surrender occurs when policyholders choose to discontinue their policies. Lapse occurs when the deadline forpayment of premiums that are in arrears is exceeded.

T
Third sector insurance

In the Japanese insurance industry, life insurance products and non-life insurance products are called “First Sector”
and “Second Sector” insurance products, respectively, and insurance products which have intermediate characteristics of both products are called “Third Sector” insurance products. Examples include medical care, cancer,
accident, and nursing care insurance.

U
Ultimate Forward Rate (UFR)

A very long-term interest rate level that is thought to be realized macroeconomically. The Group begins interest
rate extrapolation from 31 years and sets the convergence point for the ultimate forward rate level at 60 years.

V
Value of new business

94

T&D Holdings INTEGRATED REPORT 2019

The value of distributable earnings to shareholders expected to be generated in the future from insurance policies(including converted policies) sold in a year, converted to a present value as at the valuation date.