Annual Report for the 90th Term
January 1, 2016 – December 31, 2016

To the Shareholders of Fukuda Corporation

Fukuda Corporation
Stock code: 1899

To Our
Shareholders
To Our Shareholders

Operating Results
Consolidated net sales (Unit: Million yen)

172,749

180,000
146,241

150,000
120,000

154,067

127,365
111,43190,000Katsuyuki Fukuda
Chairman & Representative Director

60,00030,000086th term 87th term 88th term 89th term 90th term

Consolidated ordinary income (Unit: Million yen)
10,000

9,888

8,363
7,500

Toyohiko Ota
President & Representative Director
We would like to extend our greetings to all of our shareholders, and takethis opportunity to express our sincere gratitude for your continuing support.
We hereby present our business results for the 90th term ended on
December 31, 2016.
By upholding the basic principle of “Creating an environment where
people, nature and society can coexist” and adhering to the Fukuda Group
Spirit of “Always sincere from now until the next century and beyond,” theFukuda Group draws on its comprehensive strengths and sincerity to form
strong bonds with those that we love and cherish, in order to protect theirlives and livelihoods. The Company’s management philosophy is: “To value
people and the environment, and aim to create inspirational value based ona corporate structure designed to face challenges.” To this end, the entire
company is working together as one, with our highest priority being thesatisfaction of all of our stakeholders, including our customers,
shareholders, business partners, local community and employees.
The Company’s business results for the fiscal year under review are
shown below. While today’s increasingly global society is fraught with
unexpected risks, we will aim to enhance our corporate value and maintain
the Group’s management base as a united corporate group so that we may
further continue to meet the expectations of our shareholders.
We sincerely hope you will grant us your continued support and guidance
going forward.
March 2017

6,386

5,000

4,144
2,904

2,500

0

86th term 87th term 88th term 89th term 90th term

Net income attributable to owners of the parent(Unit: Million yen)

8,573

9,000

8,482

7,500
5,611

6,000
4,500
3,000

2,729

3,265

1,500
0

86th term 87th term 88th term 89th term 90th term
1

Review ofOperations

Business environment for the fiscal year under review

Outlook for the next fiscal year

During the fiscal year under review, the Japanese economy
continued to be in a moderate recovery trend, with the exportindustry as the driving force, which is supported by the weak yen
and high stock prices. Meanwhile, personal consumption lacked
strength due to a continuously depressed consumer sentiment,
despite improvements in the employment and income
environment against the backdrop of labor shortage.
In the construction industry, a boost in market conditions isanticipated for public investments in construction due to factors
such as government-led economic measures and the
supplementary budget. However, there is a concern over delays
in progress due to a shortage of construction workers. Investment
in construction by the private sector is estimated to remain strong
due to Tokyo Olympics-related, inbound oriented and otherinvestment projects, but since the manufacturing sector focuseson maintenance and renewal, stagnation in new capital
expenditures seems apparent.

Going forward, the Japanese economy is expected to implement newmeasures for maintaining the positive growth trend now thatgovernment-led economic measures have run their course. However,corporate investment in construction is expected to remain
suppressed for a while, mainly due to uncertainties caused by thepolicy direction of the new U.S. administration, which can lead to a
weak U.S. dollar or other factors that will greatly influence thebusiness results of Japanese export industry and manufacturingindustry.
In the construction industry, driven by investment by nonmanufacturing industries and public investments as economic
measures in construction, the order environment is expected toremain steady. However, there is a concern over skyrocketing
construction costs due to the concentrated demand of materials andlabor in the Tokyo metropolitan area.
In view of these circumstances, we expect consolidated businessresults for the fiscal year ending December 2017 to yield net sales of¥170.0 billion, operating income of ¥7.1 billion, ordinary income of¥7.1 billion and net income attributable to owners of the parent of¥4.5 billion.
In regard to the Company’s non-consolidated business results forthe next fiscal year, we anticipate orders of ¥115.0 billion, net sales of¥110.0 billion, operating income of ¥5.0 billion, ordinary income of¥5.3 billion and net income of ¥3.5 billion.

Consolidated business results for the fiscal year under review
Under these circumstances, the Fukuda Group aims toaccomplish the Long-term Vision and the Medium-Term Business
Plan announced February last year by steadily implementing thevarious measures contained, and work towards further
reinforcement of collaboration among Group companies for
efficient use of existing management resources, so as tomaximize effectiveness. As a result, the consolidated businessresults for the fiscal year under review were as follows.
Net sales rose 12.1% over the previous fiscal year to morethan ¥172.7 billion thanks to the balance carried forward from lastyear and the increase in orders received, as well as steadyprogress made in construction works for which orders havealready been received. In terms of profit, gross profit increased by
14.8% year on year to more than ¥19.8 billion, attributable to theimprovement of the order environment in the construction
business, improvement in the profitability of projects, improved
fixed cost efficiency due to increases in construction projects
earnings and other influential factors. Although general andadministrative expenses rose due to the increase in labor costs,
operating income increased 18.7% year on year to more than
¥9.6 billion. On the other hand, net income attributable to ownersof the parent decreased 1.1% year on year to more than ¥8.4
billion, due to the loss of the previous fiscal year’s recording ofgain on step acquisitions of affiliates and the recording of
impairment losses, as well as a large increase in income taxes
caused by the increase of taxable income and the new lower
deduction limit for loss carried forward.

Ratio of net sales by consolidated business

Real estate business¥4,947 million

2.9%

Other business¥11,812 million

6.8%

Construction business¥155,990 million

90.3%

2

Completed Work
Main projects completed in the fiscal year under review

Construction

Niigata Prefecture

Niigata Commercial High School School Building Construction Project(Niigata Prefecture)

AEON TOWN Co., Ltd.

Tentative name: AEON TOWN Yukarigaoka (West Block) and
Pedestrian Overpass Construction Project (Chiba Prefecture)

Kyoritsu Estate Co., Ltd.

3

Tentative name: Naruko Tenjin Hotel Renovation Project(Miyagi Prefecture)

Fuyo General Lease Co. Ltd.

Tentative name: Nakamura-ku Kamejima 2-chome Project(Aichi Prefecture)

Sanyo Homes Corporation

Tentative name: Joto-ku Noe 1-chome Housing Complex
Construction Project (Osaka Prefecture)

Anabuki Kosan Kyushu Inc.

Tentative name: Alpha Freshia Kurume Ekimae Construction Project(Fukuoka Prefecture)k

Civil Engineering

Niigata Prefecture

Tokyo Metropolitan Government

Senami Kaigan 2014 Coastal Disaster Reconstruction(No.3 Embankment) Project (Niigata Prefecture)2015 Toyosu 6-chome Riverbank Green Space
Maintenance Project (Block 8) Part 1 (Tokyo)

Niigata Prefecture

Ministry of Land, Information, Transport and Tourism, Chubu Regional Bureau

National Route 289 Tsubame-kita Bypass (Tentative name)
Asahi Bridge Superstructure Project (Niigata Prefecture)2015 Ibigawa Hakkei Upstream Riverside Surge
Embankment Reinforcement Project (Mie Prefecture)

Ministry of Land, Information, Transport and Tourism, Chugoku Regional Development Bureau
Tottori West Road Ketaka Shikano Tunnel
Construction (Tottori Prefecture)

Ministry of Land, Information, Transport and Tourism, Kyushu Regional Development Bureau

Yamanoi (Downstream) Drainage Pumping Station Discharge Sluice
Pipe Emergency Response Construction (Fukuoka Prefecture)

Main orders and completed projects for the fiscal year under review
OrdersCompleted projects

DAIWA HOUSE INDUSTRY CO., LTD

AEON TOWN Co., Ltd.

Tokyo Metropolitan Government

Tachikawa Medical Center

Hitachi, Ltd.

Kyoritsu Estate Co., Ltd.

 ublic Interest Incorporated Foundation Niigata PrefectureP
Environmental Conservation Business Corporation

 inistry of Land, Information, Transport and Tourism,
M
Chugoku Regional Development Bureau

Tentative Name: Hachioji Takao Shopping Centre Construction Project
Ariake Arena (Tentative Name) (27) Construction Project
Kisarazu Land Development Project

Disposal Building No.1 Eco Park Izumozaki Phase 3 Final Disposal Site Engineering Facilities Construction Project

Tentative name: AEON TOWN Yukarigaoka (West Block) and Pedestrian Overpass Construction Project
Tachikawa General Hospital Relocation Construction Project
Tentative name: Naruko Tenjin Hotel Renovation Project

Tottori West Road Ketaka Shikano Tunnel Construction

4

Consolidated
Financial Statements
Consolidated Financial Statements

yen, rounded(downUnit:toMillion
the nearest million yen )Consolidated Balance Sheet

90th term
89th term(as of December 31, 2016) (as of December 31, 2015)

AssetsCurrent assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for landRemeasurements of defined benefit plans
Non-controlling interests
Total net assets
Total liabilities and net assets

86,70632,881
24,370
1,416
7,093
119,588

78,957
31,693
22,6771,660
7,354
110,651

57,323
7,416
64,74056,4007,260
63,66153,403
5,158
6,132
42,381
269
883
1,165
22
304
560
54,848
119,588

45,551
5,158
6,048
34,527
183
927
1,227
46
253
511
46,990110,651

yen, rounded(downUnit:toMillion
the nearest million yen )Consolidated Statement of Income

90th term
89th term(January 1, 2016 - December 31, 2016) (January 1, 2015 - December 31, 2015)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary losses

172,749
152,930
19,81910,124
9,695
375
182
9,888
120
447
9,560
1,255

248
8,553
70
8,482

Income before income taxes and minority interests

Income taxes – current
Income taxes – deferred
Net income

Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Consolidated Statement of Cash Flows

154,067
136,799
17,268
9,101
8,166
441
244
8,363
813
124
9,053
792
353
8,614
40
8,573
yen, rounded(downUnit:toMillion
the nearest million yen )90th term
89th term(January 1, 2016 - December 31, 2016) (January 1, 2015 - December 31, 2015)

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of period

2,962
3,160
6,339
6,53624,198


16,978
1,723
4,642
10,613
13,585

123—

17,53824,198yen, rounded(downUnit:toMillion
the nearest million yen )Consolidated Statement of Changes in Equity (January 1, 2016 – December 31, 2016)
Shareholders’ equity

Balance as of January 1, 2016
Changes of items during the period
Dividends of surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Change of scope of consolidation
Reversal of revaluation reserve for land
Net changes of items during the period
other than shareholders’ equity
Total changes of items during the period
Balance as of December 31, 2016
5

Accumulated other comprehensive income
NonValuation difference Revaluation Remeasurements Accumulated other controlling
Total
shareholders’on available-for- reserve for of defined benefit comprehensive
Capital stock Capital surplus Retained earnings Treasury sharesinterests
equitysale securities
land
plans
income

5,158

6,048

34,527

183

45,551

142
55

536
8,482
142
140
 70
 22

86
269

7,852
53,403

536
8,482
84
70
22
—
5,158

84
6,132

7,854
42,381

1,227



46

 253

927

511

Total net
assets46,990
536
8,482
142
140
 70
 22

61

69



50



43

49

5

61
1,165

69
22

 50
 304



43
883

49
560

7,857
54,848

Non-Consolidated
Financial Statements

Non-Consolidated Financial Statements

yen, rounded(downUnit:toMillion
the nearest million yen )Balance Sheet

90th term
89th term(as of December 31, 2016) (as of December 31, 2015)

AssetsCurrent assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total net assets
Total liabilities and net assets

57,636
16,680
8,140
81
8,458
74,31751,394
16,745
7,803
85
8,856
68,14039,223
2,259
41,482

38,584
2,711
41,29531,296
5,158
6,132
20,274
269
1,538
845
692
32,83574,31725,2905,158
6,048
14,266
183
1,554
896
658
26,844
68,140Orders/Net sales (Unit: Million yen)Orders125,000
100,003

75,000116,450
115,277

110,090
89,066

83,987
72,29390th term
89th term(January 1, 2016 - December 31, 2016) (January 1, 2015 - December 31, 2015)

Net sales
Net sales of completed construction contracts
Net sales on real estate business
Cost of sales
Cost of sales on completed construction contracts
Cost of sales on real estate business
Gross profit
Gross profit on completed construction contracts
Gross profit on real estate businessSelling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary losses
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Net income

Ordinary income

96,471
92,556
3,915
86,982
84,584
2,398
9,488
7,971
1,517
4,087
5,401
624
162
5,863
288
156
5,996
112
337
6,446

/Net income
7,232

7,500

96,471

6,446

6,551

89th term

90th term

5,863

73,040

5,000
3,847

58,17350,000

3,588

2,507
2,500

1,898
1,299

25,0000115,277
112,018
3,259
104,068
102,347
1,721
11,209
9,671
1,538
4,428
6,780
539
87
7,232
103
560
6,775
420
196
6,551

Ordinary income/Net income (Unit: Million yen)

/Net sales

100,000

yen, rounded(downUnit:toMillion
the nearest million yen )Statement of Income

86th term

87th term

88th term

89th term

90th term

0

1,023

86th term

87th term

88th term

6Medium-term
Business Strategy
Medium-Term Business Strategy

The Company set forth the “Long-term Vision 2025” last year as the Group’s vision for the future, and set up the“Medium-Term Business Plan 2018” based on the vision.
These are not intended for a rapid expansion of our business, but for a continuation of our stable growth whilebuilding up a solid management base that is capable of responding to environmental changes. To achieve theplan, it is important to continue responding to the needs of customers with the comprehensive strengths of theGroup by focusing on maintenance and renewal, which is expected to further expand going forward. For thispurpose, we will gain the customers’ trust by improving our field capabilities in existing business fields, revisit ourroots of making high-quality products and put it into practice.
The Group will integrate the management resources for the future, and secure a new revenue base while atthe same time realize its diversification. To achieve it, the Group will nurture talent, which is our most importantmanagement resources, evolve the whole Fukuda Group, to ultimately fulfill our mission.
On the other hand, the Group’s subsidiary, Fukuda Road Construction Co., Ltd., has received a cease anddesist order from the Japan Fair Trade Commission for violating the Antimonopoly Act last year. We would like toexpress our sincerest apologies to those affected and concerned. From now on, we will work to further
strengthen our compliance system and restore the trust.
In conclusion to the above matters, set forth below are the five pillars of basic policy for Fiscal Year 2017. We
will further reinforce measures that have already been implemented, and work towards building a stronger
revenue base, by conscientiously carrying out each one of them.

Five Pillars of Our Basic Policy for Fiscal Year 2017
1. Strengthen the stable revenue base
2. Look ahead to the future and enhance our corporate value
3. Enhance the nurturing of talent
4. Strengthen the safety management system
5. Strengthen the development of trusting relationships
We sincerely hope all our shareholders will continue to give us their support going forward.

7

Group Information
Corporate GroupThe Fukuda Corporate Group consists of the Company, 29
subsidiaries and five affiliates, and its mainstay businesses are theconstruction business and the real estate business. Other businessencompasses services other than construction.
RECS CORPORATION

3.1%

KOWA Co., Ltd.

3.9%

Kita Nihon
Construction
Material Leasing
Co., Ltd.

FUKUDA RENEWAL CORPORATION

3.0% FUKUDA HOUSING CO., LTD.
1.1% 11 other companies
4.4%

4.4%

FUKUDA ROAD
CONSTRUCTION CO., LTD.

15.9%

FukudaCorporation

64.2%

Consolidated net sales:¥172,749 million

Group
Information

Construction businessIn addition to the construction orders and projects undertakenby the Company, FUKUDA ROAD CONSTRUCTION CO., LTD.
and 22 other subsidiaries, and TAKAKEN CO., LTD. and fourother affiliates are also engaged in construction orders andprojects, as well as the rental and manufacturing/sales of
construction-related materials and equipment, some of which
are ordered by the Company.

Real estate businessIn addition to the business undertaken by the Company in realestate sales, leasing and development, FUKUDA ASSET &SERVICE CO., LTD. and five other subsidiaries, and an affiliate,
TAKAKEN CO., LTD., are also engaged in the real estatebusiness.
Other business
FUKUDA ROAD CONSTRUCTION CO., LTD. and five othersubsidiaries are engaged in the lease, manufacture and sale ofproducts other than those related to construction projects, andthe Company purchases and leases products from thosecompanies. Another subsidiary, Design Workshop Co., Ltd., isengaged in the management of welfare facilities.

Kita Nihon Construction Material Leasing Co., Ltd.
http://www.kkl.co.jp/
Head Office: 1572-9 Tarodai, Kita-ku, Niigata City, Niigata Prefecture
Tel: 025-255-3911
Business offices: Niigata City, Joetsu City, Nagano City, Tohoku Region, Fukushima City, Yamagata
City, Morioka City, Tokyo and Kita-Kanto
Overseas Representative Office: Jakarta (Indonesia)
Rental and sales of temporary steel products for construction(Steel sheet piles, iron floor plates, steel earth-retaining materials,
Ga-do Kun (temporary guardrail), H-steel bars, Ketaro (temporary
bridge), Biotoilet, large scale submersible pumps, etc.)
Design and execution of temporary construction projects(Steel sheet piles, H-steel blanking, pier installation and removal, etc.)

The Company’s original productTemporary pier Ketaro

Kita Nihon Construction Material Leasing Co., Ltd., for more than 40 years
since its founding, has built up trust and business results over the years. From
the rental of steel products for heavy temporary construction such as steel
sheet piles, iron floor plates and temporary piers, which are considered to beindispensable in construction projects, to the undertaking of temporary
construction projects from design to execution, the Company is seen as the
Biotoilet needs no tap water“Total Supporter for Customers in the Construction Field”.
nor sewage facilities
On the other hand, the Company-owned “Biotoilet” has met the standards
set by the Ministry of Land, Information, Transport and Tourism and has beencertified as a “Kaiteki toilet” (pleasant lavatory) by the Ministry. Biotoilet does not only respond to the needs atconstruction sites, but can also be seen in remote mountains where flushing water cannot be used. For
reasons as such, it is highly recognized and valued for its excellence in terms of environmental hygiene.
Looking forward, the Company will continue to advance by leveraging the experiences and know-how weRental items owned by the Company
have gained, to greater heights as a supporter of the whole construction industry, while expanding thebusiness to Southeast Asia, etc.
(photo shows earth retaining materials)
8Topics
TopicsCompany with Excellent Record of Construction Projects Certification

Awarded “Excellent Record of Construction Projects Certification” from the Ministryof Land, Information, Transport and Tourism for the Fourth Consecutive Year

The Company received certification and an award as a Company with Excellent Record of Construction Projects for
Fiscal 2015 from the Hokuriku Regional Development Bureau of the Ministry of Land, Information, Transport andTourism. This certification system selects and certifies companies with an excellent rating in construction projectcompletions for civil engineering projects completed within the past two years, and has recognized the Company’s
high level of technical capabilities in regard to construction and quality control for the fourth consecutive year.
The Company also received the Excellence in Technology Award (fourth consecutive year) from the Director of the
Hokuriku Regional Development Bureau of the Ministry of Land, Information, Transport and Tourism.
Encouraged by these certification and awards, the Company is committed to further contribute to thedevelopment of the social infrastructures of the region.
The award recognizes excellent
records of construction projects forfiscal 2015 and technical experts
showing remarkable achievements
partly as a result of the Company
overcoming difficulties and making
efforts in creative originality.
Photo on the left:
Kakikawa Drainage Road Sluice
Gate Construction Project

Completion of New Niigata Head Office Building
With the unchanging belief at heart, we make a fresh start in the lands of Ichibanbori
The new head office building has been incorporated with, as the Company motto goes,“sincerity” and “creativity,” and aims to be a building that physically demonstrates“sincerity” with a substantial sturdiness unswayed by trend. In times of disaster, it is our
mission as part of the construction industry to engage in activities that contribute to the
local community as early as possible. The building is disaster resilient, environmentallyfriendly and incorporated with leading edge technologies.
The building is designed with “safe as a shelter” functionality, such that in the event ofdisaster, locals will be able to use it as a disaster prevention center. With regards to theenvironment, the effective use of natural energy sources such as geothermal power andrainwater harvesting makes it an epitome of energy efficient buildings. It is the third buildingin Niigata City to achieve Rank S, the highest of the “CASBEE Niigata” five-rank system.
In accordance with the Fukuda Group Spirit of “Always sincere from now until the next
century and beyond,” we will take up challenges with a fresh state of mind in this land thathas nurtured us, and contribute to society through construction.
Rooftop9

Underground isolation pit

1. Disaster resilient
Base isolating structureInstallation of cubicles andemergency generators on
upper floors (measuresagainst Tsunami floods)
I nstallation of stockpile
warehouses
T he multipurpose hallon the 5th floor functions
as a disaster prevention
center in times of disaster(Lavatory, shower room installed)
The multipurpose hall on the 5th floor, the rooftop, and the conference room on
the 4th floor are to be offered as evacuation sites in times of disaster
2. Environmentally friendly
Achieved Rank S of the CASBEE Niigata system (highest rank)
Green rooftop with the installation of a rainwater harvesting sprinkler system
Installation of geothermal air-conditioning facilities and non-sprinkled snowmelting system
Installation of Low-E multi-paned glasses
Installation of LED lightings
3. Incorporation of technologies
Base isolation structure
Use of PC (pre-stressed concrete) beams that realizes a long span
Eaves of SRC and Aluminum honeycomb panel
Installation of geothermal air-conditioning facilities and non-sprinkled snowmelting system

Corporate Data
Company Profile
Established:
Founded:Capital:Employees:
Consolidated
subsidiaries:
Main offices:

CorporateData(as of December 31, 2016)

January 1902
December 1927
5,158,408,496 yen
851

1 7 (including FUKUDA ROAD
CONSTRUCTION CO., LTD.)
Head office3-10 Ichibanboridoricho, Chuo-ku, Niigata
Tel: 025-266-9111 (Main line)
Main Branch & Branches
Niigata Main Branch (Chuo-ku, Niigata),
Tokyo Main Branch (Chiyoda-ku, Tokyo),
Tohoku Branch (Aoba-ku, Sendai), Nagoya
Branch (Naka-ku, Nagoya), Osaka Branch(Kita-ku, Osaka), Kyushu Branch (Hakata-ku,
Fukuoka), Chuetsu Branch (Nagaoka, Niigata
Prefecture), Hokkaido Branch (Chuo-ku,
Sapporo)Sales Offices
Morioka, Chiba, Yokohama, Murakami,
Jouetsu, Hiroshima and six other locations(Note) Shibata Sales Office opened on April 1, 2016.

Directors and Executive Officers

Chairman &Representative Director
Chairman of the Board
President &Representative Director
President of the Board
Representative
Director & Vice
President of the Board
Director & Senior
Managing
Executive Officer(as of March 28, 2017)

Katsuyuki Fukuda

Senior Executive
Officer

Kuniyoshi Koike

Toyohiko Ota

Senior Executive
Officer

Shinichi Otsuka

Kenichi Takasaka

Senior Executive
Officer

Shoichi Takakuwa

Wataru Ishikawa

Executive
Officer

Tsugio Yuasa

Director & Senior
Executive Officer

Masanori Araaki

Executive
Officer

Tsuyoshi Tamiya

Director &Executive Officer

Ryoichi Soma

Executive
Officer

Kazunori Konno

Director &Executive Officer

Masahiro Masuko

Executive
Officer

Katsuhiko Iwasaki

Director &Executive Officer

Takeshi Yamamoto

Director

Kenichi Yazawa

Director

Yoshinao Nakata

Senior Executive
Officer

Chihiro Oiwa

Full-Time Audit& Supervisory
Board Member
Audit &
Supervisory
Board Member
Audit &
Supervisory
Board Member

Koichi Yakuwa
Tetsuya Sunada

Michiaki MiyajimaNotes:
1.	Messrs. Kenichi Yazawa and Yoshinao Nakata are Outside Directors pursuant to Article 2,
Paragraph 15 of the Companies Act.
2.	Messrs. Tetsuya Sunada and Michiaki Miyajima are Outside Audit & Supervisory Board
Members pursuant to Article 2, Paragraph 16 of the Companies Act

Stock Information(as of December 31, 2016)

Total Number of Shares
Authorized to be Issued: ������������������������� 100,000,000 shares
Total Number of Shares Outstanding(excluding treasury shares): ����������������������� 44,630,862 shares
Number of Shareholders: ���������������������������������������������� 5,564
Major
Number of shares held Shareholding ratio
Name of shareholder(thousands)(%)
Shareholders(Public Interest Incorporated Foundation) Fukuda Ikueikai

3,343

7.5

THE DAISHI BANK, LTD.

2,198

4.9

Naomi Fukuda

2,158

4.8

Fuji Fukuda

1,633

3.7

Kazuko Ozawa

1,607

3.6

Note: Shareholding ratio is calculated after deducting the number of treasury shares(309,695 shares).

10

Information for Shareholders
Fiscal Year:
From January 1 to December 31
Ordinary General Meeting of Shareholders:
March
Record Date
Ordinary General Meeting of Shareholders: December 31
Year-End Dividend: December 31
Interim Dividend: June 30

Shareholder Benefit Program
To express our gratitude for the constant support of ourshareholders and with the aim of encouraging shareholders tomaintain their shareholding over a long period, the Company has
introduced a Shareholder Benefit Program.
1. Method of presentation: Once a year to shareholders holding
1,000 shares or more as of December 31
2. Benefits: A ¥5,000 QUO card for all shareholders*Eligible shareholders will all receive the same standard benefit.

3. Presentation period: Scheduled to be sent in late March eachyear

 tock Transfer Agent / Account Management Institution forS
Special Accounts:
Mitsubishi UFJ Trust and Banking Corporation
Contact Information / Addressee:
Mitsubishi UFJ Trust and Banking Corporation
Stock Transfer Agency Department
7-10-11 Higashi Suna, Koto-ku, Tokyo 137-8081
Tel: 0120-232-711 (Toll-free)Number of Shares Per Unit:
1,000
Listed on:First Section of Tokyo Stock Exchange
Method of Public Notice:
Public notices will be made electronically. However, when electronic
public notices cannot be made due to circumstances beyond ourcontrol, we will post a notice in the Nihon Keizai Shimbun.
URL for Public Notices: http://www.fkd.co.jp/
Note:

URL http://www.fkd.co.jp/

In regard to procedures for matters such as change of address of shareholders
and requests for purchase of shares, please contact the securities company orother institution that established the account. These procedures are not handled
by the Stock Transfer Agent (Mitsubishi UFJ Trust and Banking Corporation).
Unclaimed dividends shall be paid at the main branch of Mitsubishi UFJ Trustand Banking Corporation.

Head office:3-10 Ichibanboridoricho, Chuo-ku, Niigata
Tel: 025-266-9111 (Main line)