



0DNLWD&RUSRUDWLRQ&RQVROLGDWHG)LQDQFLDO5HVXOWVIRUWKHQLQHPRQWKVHQGHG'HFHPEHU
,)56)LQDQFLDO,QIRUPDWLRQ (QJOLVKWUDQVODWLRQRI.(66$17$16+,1
RULJLQDOO\LVVXHGLQ-DSDQHVH &2162/,'$7('),1$1&,$/5(68/76
)257+(1,1(0217+6(1'(''(&(0%(5 8QDXGLWHG-DQXDU\

0DNLWD&RUSRUDWLRQ
6WRFNFRGH
85/KWWSVZZZPDNLWDEL]
0XQHWRVKL*RWR3UHVLGHQW5HSUHVHQWDWLYH'LUHFWRU ɻ6XPPDU\ RSHUDWLQJ UHVXOWV RI WKH QLQH PRQWKV HQGHG 'HFHPEHU   )URP $SULO   WR
'HFHPEHU &2162/,'$7('23(5$7,1*5(68/76<HQ PLOOLRQV)RUWKHQLQHPRQWKVHQGHG)RUWKHQLQHPRQWKVHQGHG'HFHPEHU
'HFHPEHU





5HYHQXH«««««««««««««««« 


2SHUDWLQJSURILW««««««««««««« 


3URILWEHIRUHLQFRPHWD[HV««««««««« 


3URILW««««««««««««««««« 


3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQW««« 



&RPSUHKHQVLYHLQFRPH««««««««««<HQ
3URILWDWWULEXWDEOHWR
RZQHUVRIWKHSDUHQWSHUVKDUH
ɻ %DVLFɻ 'LOXWHG
1RWHV $PRXQWVRIOHVVWKDQRQHPLOOLRQ\HQKDYHEHHQURXQGHG
 7KHWDEOHDERYHVKRZVWKHFKDQJHVLQWKHSHUFHQWDJHUDWLRRIUHYHQXHRSHUDWLQJSURILWSURILWEHIRUHLQFRPHWD[HVSURILWSURILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWDQGFRPSUHKHQVLYHLQFRPHDJDLQVWWKHFRUUHVSRQGLQJSHULRGRIWKHSUHYLRXV\HDU 6(/(&7('&2162/,'$7('),1$1&,$/326,7,21

7RWDODVVHWV
7RWDOHTXLW\(TXLW\DWWULEXWDEOHWRRZQHUVRIWKHSDUHQW
5DWLRRIHTXLW\DWWULEXWDEOHWRRZQHUVRIWKH
SDUHQWWRWRWDODVVHWV $VRI0DUFK



<HQ PLOOLRQV$VRI'HFHPEHU








1RWH$PRXQWVRIOHVVWKDQRQHPLOOLRQ\HQKDYHEHHQURXQGHG

ɻ'LYLGHQG,QIRUPDWLRQ<HQ)RUWKH\HDUHQGHG
0DUFK
&DVKGLYLGHQGSHUVKDUH,QWHULP<HDUHQG
7RWDO
1RWHV





)RUWKH\HDUHQGLQJ
0DUFK
)RUHFDVW

1RWH
1RWH

 7KHIRUHFDVWIRUFDVKGLYLGHQGDQQRXQFHGRQ$SULOKDVQRWEHHQUHYLVHG
 7KHSURMHFWHGDPRXQWRIGLYLGHQGVIRUWKH\HDUHQGLQJ0DUFKKDVQRWEHHQGHWHUPLQHG\HW)RUIXUWKHUGHWDLOVUHIHUWR³([SODQDWLRQUHJDUGLQJSURSHUXVHRIEXVLQHVVIRUHFDVWDQGRWKHUVLJQLILFDQWPDWWHUV´RQSDJH

English translation of "KESSAN TANSHIN" originally issued in Japanese1ɻ&RQVROLGDWHG)LQDQFLDO3HUIRUPDQFH)RUHFDVWIRUWKH\HDUHQGLQJ0DUFK )URP$SULO
WR0DUFK
<HQ PLOOLRQV)RUWKH\HDUHQGLQJ
0DUFK

5HYHQXH««««««««««««««««««««««««««


2SHUDWLQJSURILW«««««««««««««««««««««««


3URILWEHIRUHLQFRPHWD[HV«««««««««««««««««««

3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQW«««««««««««««<HQ
3URILWDWWULEXWDEOHWR
RZQHUVRIWKHSDUHQWSHUVKDUH %DVLF «««««««««««««««
1RWHV &KDQJHVRIWKHIRUHFDVWVIURPWKHPRVWUHFHQWGLVFORVXUH<HV 7KHWDEOHDERYHVKRZVWKHFKDQJHVLQWKHSHUFHQWDJHUDWLRRIUHYHQXHRSHUDWLQJSURILWSURILWEHIRUHLQFRPHWD[H
DQGSURILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWDJDLQVWWKHSUHYLRXV\HDUɻ2WKHU &KDQJHVLQLPSRUWDQWVXEVLGLDULHVGXULQJWKHSHULRG &KDQJHVLQVSHFLILHGVXEVLGLDULHVDFFRPSDQLHGE\FKDQJHVLQ
VFRSHRIFRQVROLGDWLRQGXULQJWKHTXDUWHU 1RQH
 &KDQJHVLQDFFRXQWLQJSROLFLHVDQGDFFRXQWLQJHVWLPDWHV
 &KDQJHVLQDFFRXQWLQJSROLFLHVUHTXLUHGE\,)56<HV &KDQJHVLQDFFRXQWLQJSROLFLHVRWKHUWKDQ1RQH
 &KDQJHVLQDFFRXQWLQJHVWLPDWH1RQH
 1XPEHURIVKDUHVRXWVWDQGLQJ FRPPRQVWRFN
 1XPEHURIVKDUHVLVVXHG LQFOXGLQJWUHDVXU\VKDUHV  $VRI'HFHPEHU
$VRI0DUFK
 1XPEHURIWUHDVXU\VKDUHV$VRI'HFHPEHU
$VRI0DUFK
 $YHUDJHQXPEHURIVKDUHVRXWVWDQGLQJ
)RUWKHQLQHPRQWKVHQGHG
'HFHPEHU
)RUWKHQLQHPRQWKVHQGHG
'HFHPEHU







0DNLWD¶VHDUQLQJVUHOHDVHV .(66$17$16+,1 DUHQRWVXEMHFWWRDQDXGLW([SODQDWLRQUHJDUGLQJSURSHUXVHRIEXVLQHVVIRUHFDVWVDQGRWKHUVLJQLILFDQWPDWWHUV 7KHILQDQFLDOIRUHFDVWJLYHQDERYHLVEDVHGRQLQIRUPDWLRQDVDYDLODEOHDWWKHSUHVHQWWLPHDQGLQFOXGHVSRWHQWLDO
ULVNVDQGXQFHUWDLQWLHV$VDFRQVHTXHQFHRIWKHIDFWRUVDERYHDQGRWKHUDFWXDOUHVXOWVPD\YDU\IURPWKHIRUHFDVWVSURYLGHGDERYH5HJDUGLQJWKHDVVXPSWLRQVIRUWKHIRUHFDVWVDQGRWKHUPDWWHUVUHIHUWR³6833/(0(17,1)250$7,21 &2162/,'$7(' ´³2YHUYLHZRIRSHUDWLQJUHVXOWV´³  2XWORRNIRUWKHILVFDO\HDUHQGLQJ 0DNLWD VEDVLFSROLF\RQWKHGLVWULEXWLRQRISURILWVLVWRPDLQWDLQWKHWRWDOUHWXUQUDWLRDWRUJUHDWHUZLWKD
ORZHUOLPLWRQDQQXDOFDVKGLYLGHQGVRI\HQSHUVKDUH+RZHYHULQWKHHYHQWVSHFLDOFLUFXPVWDQFHVDULVHFRPSXWDWLRQRIWKHDPRXQWRIGLYLGHQGVZLOOEHEDVHGRQSURILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWSHUVKDUHDIWHUFHUWDLQDGMXVWPHQWV7KH%RDUGRI'LUHFWRUVSODQVWRPHHWLQ$SULOIRUDUHSRUWRQHDUQLQJVIRUWKH\HDU
HQGLQJ0DUFK$WWKHWLPHLQDFFRUGDQFHZLWKWKHEDVLFSROLF\UHJDUGLQJSURILWGLVWULEXWLRQPHQWLRQHG
DERYHWKH%RDUGRI'LUHFWRUVSODQVWRSURSRVHDGLYLGHQGHTXLYDOHQWWRDWOHDVWRIWRWDOUHWXUQDWWULEXWDEOHWR
RZQHUVRIWKHSDUHQW7KH%RDUGRI'LUHFWRUVZLOOVXEPLWWKLVSURSRVDOWRWKH*HQHUDO0HHWLQJRI6KDUHKROGHUVVFKHGXOHGIRU-XQH
7RWDOUHWXUQUDWLR&DVKGLYLGHQGSHUVKDUH7RWDODPRXQWRISXUFKDVHGWUHDVXU\VKDUHVGXULQJWKH\HDU$YHUDJHQXPEHURIVKDUHVRXWVWDQGLQJ

3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWSHUVKDUH ([FOXGLQJVSHFLDOIDFWRUVEnglish translation of "KESSAN TANSHIN" originally issued in Japanese

ʹ

2




6833/(0(17,1)250$7,21 &2162/,'$7('  2YHUYLHZRIRSHUDWLQJUHVXOWV  2YHUYLHZRIRSHUDWLQJUHVXOWVRIWKHQLQHPRQWKVHQGHG'HFHPEHU /RRNLQJDWWKHLQWHUQDWLRQDOHFRQRPLFVLWXDWLRQLQWKHILUVWQLQHPRQWKVRIWKHFXUUHQWILVFDO\HDUWKHULVHLQLQIODWLRQKDVEHHQVORZLQJGXHWRPRQHWDU\WLJKWHQLQJLQYDULRXVFRXQWULHVZKLOHWKHJOREDOHFRQRP\KDVUHPDLQHGIODWGXHWRWKHVWDJQDWLRQRIWKH
&KLQHVHHFRQRP\DQGRWKHUIDFWRUV,QDGGLWLRQ5XVVLD¶VLQYDVLRQRI8NUDLQHDQGXQUHVWLQWKH0LGGOH(DVWFRXOGOHDGWRIXUWKHUSULFHLQFUHDVHVDQGHFRQRPLFGRZQWXUQVDQGWKHRXWORRNFRQWLQXHVWRUHPDLQXQFHUWDLQ,QWKH*URXS¶VFRQVROLGDWHGEXVLQHVVUHVXOWVIRUWKLVSHULRGVDOHVIHOOLQPDQ\DUHDV7KLVZDVEHFDXVHRIZHDNGHPDQGIRUKRXVLQJGXHWRPRQHWDU\WLJKWHQLQJLQYDULRXVFRXQWULHVDQGUHVWUDLQHGLQYHVWPHQWLQWKHEXLOGLQJDQGFRQVWUXFWLRQPDUNHWV$VDUHVXOWVDOHVUHYHQXHFDPHWRPLOOLRQ\HQGRZQIURPWKHVDPHSHULRGRIWKHSUHYLRXVILVFDO\HDU,QWHUPVRISURILWRSHUDWLQJSURILWLQFUHDVHGE\\HDURQ\HDUWRPLOOLRQ\HQ RSHUDWLQJSURILWUDWLR GULYHQE\DQLPSURYHPHQWLQWKHFRVWUDWLRGXHWRWKHLPSDFWRIIRUHLJQH[FKDQJHUDWHVDQGRWKHUIDFWRUV3URILWEHIRUHLQFRPHWD[HVLQFUHDVHGE\WRPLOOLRQ\HQ SURILWEHIRUHLQFRPHWD[HVUDWLR DQGSURILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWLQFUHDVHGE\WRPLOOLRQ\HQ UDWLRRISURILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQW 

5HYHQXHUHVXOWVE\UHJLRQZHUHDVIROORZV
0DNLWD VFRQVROLGDWHGUHYHQXHE\JHRJUDSKLFDUHDLVEDVHGRQWKHFXVWRPHU¶VORFDWLRQIRUWKHSHULRGVSUHVHQWHG$FFRUGLQJO\
LWGLIIHUVIURP³6HJPHQW,QIRUPDWLRQ´RQSDJH ,Q-DSDQGHPDQGFRQGLWLRQVFRQWLQXHGWREHVHYHUHEXWWKHVFRUFKLQJKHDWWKDWKDGFRQWLQXHGXQWLOHDUO\DXWXPQVXEVLGHG
DQGWKLVOHGWRLQFUHDVHGRXWGRRUZRUNKRXUVDQGVWURQJHUGHPDQGIRURXWGRRUSRZHUHTXLSPHQWUHVXOWLQJLQVDOHVRI
PLOOLRQ\HQXS\HDURQ\HDU
,Q(XURSHDOWKRXJKKLJKLQIODWLRQDQGPRQHWDU\WLJKWHQLQJDUHEHJLQQLQJWRFRPHWRDQHQGWKHFRQVWUXFWLRQPDUNHWUHPDLQVODFNOXVWHUGXHWRKLJKLQWHUHVWUDWHVDQGGHPDQGLVVWLOOZHDN$VDUHVXOWVDOHVZHUHPLOOLRQ\HQGRZQ\HDURQ\HDU
,Q1RUWK$PHULFDDOWKRXJKWKHWLJKWPRQHWDU\SROLF\KDVEHJXQWRVKRZVLJQVRIHDVLQJWKHUHKDVEHHQQRLPSURYHPHQWLQ
WKHEXLOGLQJPDUNHWRULQWKHGHVLUHWRLQYHVW6DOHVPDLQO\DWKRPHLPSURYHPHQWVWRUHVZHUHGRZQ\HDURQ\HDUWRPLOOLRQ\HQ,Q$VLDGHPDQGIRUWRROVJHQHUDOO\UHPDLQHGZHDNGXHWRWKHFRQWLQXHGVOXPSLQWKHUHDOHVWDWHPDUNHWLQ&KLQDDQGRWKHUFRXQWULHV$VDUHVXOWVDOHVIHOO\HDURQ\HDUWRPLOOLRQ\HQ,Q&HQWUDODQG6RXWK$PHULFDGHVSLWHWKHFKDOOHQJLQJGHPDQGHQYLURQPHQWZHPDGHHIIRUWVWRH[SDQGVDOHVRIWKH9PD[VHULHVZKLFKZHDUHIRFXVLQJRQLQYDULRXVFRXQWULHVDQGVDOHVZHUHXS\HDURQ\HDUWRPLOOLRQ\HQ
,Q2FHDQLDVDOHVDWRXUFRPSDQ\GHFUHDVHG\HDURQ\HDUWRPLOOLRQ\HQDVFRQVXPHUVSHQGLQJFRROHGGXHWR
DGGLWLRQDOPRQHWDU\WLJKWHQLQJDQGDVPDMRUFXVWRPHUVFRQWLQXHGWRUHGXFHLQYHQWRULHV
,Q WKH 0LGGOH (DVW DQG $IULFD DOWKRXJK WKHUH ZHUH YDULDWLRQV GHSHQGLQJ RQ WKH FRXQWU\ GHPDQG IRU FRQVWUXFWLRQ DQGDUFKLWHFWXUHUHPDLQHGVWHDG\RQWKHZKROHDQGVDOHVZHUHXS\HDURQ\HDUWRPLOOLRQ\HQ   2YHUYLHZRIILQDQFLDOVLWXDWLRQDVRI'HFHPEHU
7RWDODVVHWVGHFUHDVHGPLOOLRQ\HQIURPWKHHQGRIWKHSUHYLRXVILVFDO\HDUWRPLOOLRQ\HQ7KLVGHFUHDVHZDVPDLQO\GXHWRWKHGHFUHDVHLQ³,QYHQWRULHV´
7RWDOOLDELOLWLHVGHFUHDVHGPLOOLRQ\HQIURPWKHHQGRIWKHSUHYLRXVILVFDO\HDUWRPLOOLRQ\HQ7KLVGHFUHDVHZDVPDLQO\GXHWRWKHUHGXFWLRQLQ³%RUURZLQJV´
7RWDOHTXLW\LQFUHDVHGPLOOLRQ\HQIURPWKHHQGRIWKHSUHYLRXVILVFDO\HDUWRPLOOLRQ\HQ7KLVLQFUHDVHZDVPDLQO\GXHWRWKHFKDQJHLQH[FKDQJHGLIIHUHQFHVRQWUDQVODWLQJIRUHLJQRSHUDWLRQVLQFOXGHGLQ³2WKHUFRPSRQHQWVRIHTXLW\´






English translation of "KESSAN TANSHIN" originally issued in Japanese3  2XWORRNIRUWKHILVFDO\HDUHQGLQJ0DUFK 
6DOHVGXULQJWKHILUVWQLQHPRQWKVRIWKHFXUUHQWILVFDO\HDUZHUHVOXJJLVKGXHWRDGHPDQGHQYLURQPHQWWKDWZDVWRXJKHUWKDQ H[SHFWHG +RZHYHU WKH H[FKDQJH UDWH KDV EHHQ PRYLQJ LQ WKH GLUHFWLRQ RI KLJKHU UHYHQXH DQG KLJKHU SURILW WKDQ WKHIRUHFDVWVSUHYLRXVO\DQQRXQFHG7KHUHIRUHWKHIXOO\HDUFRQVROLGDWHGHDUQLQJVIRUHFDVWLVUHYLVHGDVIROORZV
5HYLVHGIRUHFDVWIRUFRQVROLGDWHGSHUIRUPDQFHRIWKHILVFDO\HDUHQGLQJ0DUFK )URP$SULOWR0DUFK <HQ PLOOLRQV 











<HQ
3URILW



3URILWDWWULEXWDEOHWR

5HYHQXH

2SHUDWLQJSURILW

3URILW EHIRUH DWWULEXWDEOHWRLQFRPHWD[HVRZQHUVRIWKH

RZQHUVRIWKH SDUHQWSHUVKDUH

)RUHFDVWDQQRXQFHGSUHYLRXVO\ $  
5HYLVHGIRUHFDVW %  &KDQJHV %$  
3HUFHQWDJHFKDQJH 









 
  








$FWXDOUHVXOWVIRUWKHSUHYLRXV\HDU
HQGHG0DUFK 











7KHDVVXPHGH[FKDQJHUDWHVDSSOLHGLQWKHIRUHFDVWFDOFXODWLRQDUHDVIROORZV>3UHFRQGLWLRQV@
7KHIRUHFDVWLVEDVHGRQWKHDVVXPSWLRQRIH[FKDQJHUDWHVRI\HQWRWKH86GROODU\HQWRWKHHXURDQG\HQWRWKHUHQPLQELIRUWKHUHPDLQLQJWKUHHPRQWKVSHULRGHQGLQJ0DUFK
7KHIRUHFDVWLVEDVHGRQWKHDVVXPSWLRQRIH[FKDQJHUDWHVRI\HQWRWKH86GROODU\HQWRWKHHXURDQG\HQWRWKHUHQPLQELIRUWKH\HDUHQGLQJ0DUFK

>5HIHUHQFH@
7KHH[FKDQJHUDWHVIRUSUHYLRXVO\DQQRXQFHG IRUHFDVWV WKDWZH DQQRXQFHGRQ $SULOZHUH\HQ WRWKH86
GROODU\HQWRWKHHXURDQG\HQWRWKHUHQPLQELIRUWKH\HDUHQGLQJ0DUFK
7KHH[FKDQJHUDWHVIRUSUHYLRXVO\DQQRXQFHGIRUHFDVWVWKDWZHDQQRXQFHGRQ2FWREHUZHUH\HQWRWKH86
GROODU\HQWRWKHHXURDQG\HQWRWKHUHQPLQELIRUWKH\HDUHQGLQJ0DUFK

1RWH  
7KHDERYHIRUHFDVWLVEDVHGRQLQIRUPDWLRQDVDYDLODEOHDWWKHSUHVHQWWLPHDQGLQFOXGHVSRWHQWLDOULVNVDQGXQFHUWDLQWLHV$V
DFRQVHTXHQFHRIWKHIDFWRUVDERYHDQGRWKHUDFWXDOUHVXOWVPD\YDU\VLJQLILFDQWO\IURPWKHIRUHFDVWSURYLGHGDERYH

English translation of "KESSAN TANSHIN" originally issued in Japanese4ɻ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV 8QDXGLWHG
 &RQVROLGDWHG6WDWHPHQWRI)LQDQFLDO3RVLWLRQ<HQ PLOOLRQV$VRI0DUFK&RPSRVLWLRQUDWLR$VRI'HFHPEHU&RPSRVLWLRQUDWLR$66(76&855(17$66(76&DVKDQGFDVKHTXLYDOHQWV««««««««««





7UDGHDQGRWKHUUHFHLYDEOHV«««««««««





,QYHQWRULHV««««««««««««««««





2WKHUILQDQFLDODVVHWV««««««««««««



2WKHUFXUUHQWDVVHWV«««««««««««««





7RWDOFXUUHQWDVVHWV««««««««««««







121&855(17$66(76
3URSHUW\SODQWDQGHTXLSPHQWDWFRVW«««««



*RRGZLOODQGLQWDQJLEOHDVVHWV««««««««





2WKHUILQDQFLDODVVHWV««««««««««««





5HWLUHPHQWEHQHILWDVVHWV«««««««««««



'HIHUUHGWD[DVVHWV«««««««««««««





2WKHUQRQFXUUHQWDVVHWV«««««««««««





7RWDOQRQFXUUHQWDVVHWV««««««««««





7RWDODVVHWV««««««««««««««««««







English translation of "KESSAN TANSHIN" originally issued in Japanese5

<HQ PLOOLRQV$VRI0DUFK&RPSRVLWLRQUDWLR$VRI'HFHPEHU&RPSRVLWLRQUDWLR/,$%,/,7,(6$1'(48,7</,$%,/,7,(6&855(17/,$%,/,7,(67UDGHDQGRWKHUSD\DEOHV««««««««««





%RUURZLQJV««««««««««««««««



2WKHUILQDQFLDOOLDELOLWLHV««««««««««





,QFRPHWD[HVSD\DEOH««««««««««««



3URYLVLRQV««««««««««««««««





2WKHUFXUUHQWOLDELOLWLHV«««««««««««





7RWDOFXUUHQWOLDELOLWLHV«««««««««««





121&855(17/,$%,/,7,(65HWLUHPHQWEHQHILWOLDELOLWLHV«««««««««





2WKHUILQDQFLDOOLDELOLWLHV««««««««««





3URYLVLRQV««««««««««««««««





'HIHUUHGWD[OLDELOLWLHV«««««««««««





2WKHUQRQFXUUHQWOLDELOLWLHV«««««««««





7RWDOQRQFXUUHQWOLDELOLWLHV«««««««««





7RWDOOLDELOLWLHV«««««««««««««««««







(48,7<
6KDUH&DSLWDO«««««««««««««««



&DSLWDO6XUSOXV««««««««««««««





5HWDLQHGHDUQLQJV«««««««««««««





7UHDVXU\VKDUHV««««««««««««««





2WKHUFRPSRQHQWVRIHTXLW\«««««««««





7RWDOHTXLW\DWWULEXWDEOHWRRZQHUVRIWKHSDUHQW««««





121&21752//,1*,17(5(67««««««««









7RWDOHTXLW\««««««««««««««««««





7RWDOOLDELOLWLHVDQGHTXLW\««««««««««««







English translation of "KESSAN TANSHIN" originally issued in Japanese6 &RQVROLGDWHG6WDWHPHQWVRI3URILWRU/RVVDQG&RQVROLGDWHG6WDWHPHQWVRI&RPSUHKHQVLYH,QFRPH&RQVROLGDWHG6WDWHPHQWVRI3URILWRU/RVV<HQ PLOOLRQV)RUWKHQLQHPRQWKV)RUWKHQLQHPRQWKV
HQGHG'HFHPEHUHQGHG'HFHPEHU




5DWLRWRUHYHQXH

5DWLRWRUHYHQXH

5(9(18(««««««««««««««««««« 







&RVWRIVDOHV««««««««««««««««««« 





*5266352),7««««««««««««««««« 







6HOOLQJJHQHUDODGPLQLVWUDWLYHDQGRWKHUVQHW««««« 





23(5$7,1*352),7««««««««««««««« 





)LQDQFLDOLQFRPH«««««««««««««««««





)LQDQFLDOH[SHQVHV««««««««««««««««





352),7%()25(,1&20(7$;(6««««««««« ,QFRPHWD[H[SHQVHV«««««««««««««««« 
352),7««««««««««««««««««««« 






2ZQHUVRIWKHSDUHQW«««««««««««««««« 













3URILWDWWULEXWDEOHWR
1RQFRQWUROOLQJLQWHUHVWV««««««««««««««&RQVROLGDWHG6WDWHPHQWVRI&RPSUHKHQVLYH,QFRPH<HQ PLOOLRQV)RUWKHQLQHPRQWKV
HQGHG'HFHPEHU

)RUWKHQLQHPRQWKV
HQGHG'HFHPEHU











([FKDQJHGLIIHUHQFHVRQWUDQVODWLQJIRUHLJQRSHUDWLRQV««



7RWDORILWHPVWKDWPD\EHUHFODVVLILHGWRSURILW ORVV «««



7RWDORWKHUFRPSUHKHQVLYHLQFRPH ORVV QHWRIWD[««««





&2035(+(16,9(,1&20(««««««««««««





2ZQHUVRIWKHSDUHQW««««««««««««««««





1RQFRQWUROOLQJLQWHUHVWV««««««««««««««





352),7«««««««««««««««««««««
27+(5&2035(+(16,9(,1&20( /266 1(72)7$;,WHPVWKDWZLOOQRWEHUHFODVVLILHGWRSURILW ORVV(TXLW\ILQDQFLDOJRRGVPHDVXUHGDWIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH ORVV ««««««
7RWDORILWHPVWKDWZLOOQRWEHUHFODVVLILHGWRSURILW ORVV ««,WHPVWKDWPD\EHUHFODVVLILHGWRSURILWRUORVV&RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWR

English translation of "KESSAN TANSHIN" originally issued in Japanese7 &RQVROLGDWHG6WDWHPHQWRI&KDQJHVLQ(TXLW\<HQ PLOOLRQV)RUWKHQLQHPRQWKVHQGHG'HFHPEHU
(TXLW\DWWULEXWDEOHWRRZQHUVRIWKHSDUHQW
6KDUH
FDSLWDO%DODQFHDW$SULO&DSLWDO
6XUSOXV



3URILWIRUWKHSHULRG

5HWDLQHGHDUQLQJV

7UHDVXU\VKDUHV2WKHUFRPSRQHQWVRIHTXLW\





&RPSUHKHQVLYHLQFRPH'LYLGHQGVSDLG



7RWDO
HTXLW\





















3XUFKDVHRIWUHDVXU\VKDUHV

7RWDO

2WKHUFRPSUHKHQVLYHLQFRPH

1RQ
&RQWUROOLQJ
LQWHUHVW



'LVSRVDORIWUHDVXU\VKDUHV









6KDUHEDVHGSD\PHQW
WUDQVDFWLRQ













7UDQVIHUIURPRWKHUFRPSRQHQWVRIHTXLW\WR
UHWDLQHGHDUQLQJV

7RWDODPRXQWVRIWUDQVDFWLRQVZLWKRZQHUV













%DODQFHDW'HFHPEHU















<HQ PLOOLRQV)RUWKHQLQHPRQWKVHQGHG'HFHPEHU
(TXLW\DWWULEXWDEOHWRRZQHUVRIWKHSDUHQW
6KDUH
FDSLWDO%DODQFHDW$SULO&DSLWDO
6XUSOXV



3URILWIRUWKHSHULRG

5HWDLQHGHDUQLQJV

7UHDVXU\VKDUHV2WKHUFRPSRQHQWVRIHTXLW\







2WKHUFRPSUHKHQVLYHLQFRPH&RPSUHKHQVLYHLQFRPH'LYLGHQGVSDLG





7RWDO

7RWDO
HTXLW\



















3XUFKDVHRIWUHDVXU\VKDUHV

1RQ
&RQWUROOLQJ
LQWHUHVW









'LVSRVDORIWUHDVXU\VKDUHV









6KDUHEDVHGSD\PHQW
WUDQVDFWLRQ













7UDQVIHUIURPRWKHUFRPSRQHQWVRIHTXLW\WR
UHWDLQHGHDUQLQJV





7RWDODPRXQWVRIWUDQVDFWLRQVZLWKRZQHUV















%DODQFHDW'HFHPEHU















English translation of "KESSAN TANSHIN" originally issued in Japanese8 &RQVROLGDWHG6WDWHPHQWVRI&DVK)ORZV<HQ PLOOLRQV)RUWKHQLQHPRQWKV)RUWKHQLQHPRQWKV
HQGHG'HFHPEHUHQGHG'HFHPEHU


&$6+)/2:6)52023(5$7,1*$&7,9,7,(63URILW««««««««««««««««««««««««««





'HSUHFLDWLRQDQGDPRUWL]DWLRQ««««««««««««««««



,QFRPHWD[H[SHQVHV««««««««««««««««««««





)LQDQFLDOLQFRPHDQGH[SHQVHV««««««««««««««««





/RVV JDLQ RQVDOHVDQGUHWLUHPHQWRISURSHUW\SODQWDQGHTXLSPHQW«





'HFUHDVH LQFUHDVH LQWUDGHDQGRWKHUUHFHLYDEOHV«««««««««





'HFUHDVH LQFUHDVH LQLQYHQWRULHV«««««««««««««««



,QFUHDVH GHFUHDVH LQWUDGHDQGRWKHUSD\DEOHV««««««««««



,QFUHDVH GHFUHDVH LQUHWLUHPHQWEHQHILWDVVHWVDQGOLDELOLWLHV««««





'HFUHDVH LQFUHDVH LQJXDUDQWHHGHSRVLWV««««««««««««

2WKHU««««««««««««««««««««««««««





6XEWRWDO««««««««««««««««««««««««



'LYLGHQGVUHFHLYHG«««««««««««««««««««««





,QWHUHVWUHFHLYHG««««««««««««««««««««««





,QWHUHVWSDLG««««««««««««««««««««««««





,QFRPHWD[HVSDLG«««««««««««««««««««««





&DVKIORZVIURPRSHUDWLQJDFWLYLWLHV««««««««««««



3XUFKDVHRIQRQFXUUHQWDVVHWV««««««««««««««««





3URFHHGVIURPVDOHVRIQRQFXUUHQWDVVHWV««««««««««««





3XUFKDVHRILQYHVWPHQWV«««««««««««««««««««



3URFHHGVIURPVDOHVDQGUHGHPSWLRQRILQYHVWPHQWV««««««««





3D\PHQWVLQWRWLPHGHSRVLWV«««««««««««««««««





3URFHHGVIURPZLWKGUDZDORIWLPHGHSRVLWV«««««««««««





2WKHU««««««««««««««««««««««««««





&DVKIORZVIURPLQYHVWLQJDFWLYLWLHV««««««««««««





1HWLQFUHDVH GHFUHDVH LQVKRUWWHUPERUURZLQJV«««««««««





3XUFKDVHDQGVDOHVRIWUHDVXU\VKDUHVQHW««««««««««««



&DVKGLYLGHQGVSDLG««««««««««««««««««««





5HSD\PHQWRIOHDVHOLDELOLWLHV«««««««««««««««««





2WKHU««««««««««««««««««««««««««





&DVKIORZVIURPILQDQFLQJDFWLYLWLHV««««««««««««())(&72)(;&+$1*(5$7(&+$1*(621&$6+$1'&$6+(48,9$/(176««««««««««««««««««









1(7&+$1*(,1&$6+$1'&$6+(48,9$/(176«««««





&$6+$1'&$6+(48,9$/(176%(*,11,1*2)3(5,2'««



&$6+$1'&$6+(48,9$/(176(1'2)3(5,2'«««««







&$6+)/2:6)520,19(67,1*$&7,9,7,(6&$6+)/2:6)520),1$1&,1*$&7,9,7,(6English translation of "KESSAN TANSHIN" originally issued in Japanese9 1RWHVWR&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
1RWHVRQWKHDVVXPSWLRQVIRUDJRLQJFRQFHUQ1RQH&KDQJHVLQDFFRXQWLQJSROLF\
7KH*URXSKDVDSSOLHGWKHIROORZLQJVWDQGDUGVDQGLQWHUSUHWDWLRQVIURPWKHFXUUHQWILVFDO\HDUDVIROORZV)LVFDO\HDULQZKLFK
7LPHRIFRPSXOVRU\
LWDSSOLHVWRWKH
2YHUYLHZ
DSSOLFDWLRQ ILVFDO\HDU
,)56
7LWOH
*URXS
VWDUWLQJDIWHUWKDW'LVFORVXUHRILQFRPHWD[HVDULVLQJIURP
WD[ODZVHQDFWHGRUVXEVWDQWLDOO\HQDFWHG
WRLQWURGXFHWKH3LOODU7ZR0RGHO5XOHV)LVFDO\HDUHQGLQJ,$6 ,QFRPH7D[HV-DQXDU\
SXEOLVKHGE\WKH2UJDQL]DWLRQIRU
0DUFK(FRQRPLF&RRSHUDWLRQDQG'HYHORSPHQW
2(&' 
7KHDSSOLFDWLRQRIWKHVWDQGDUGHWFKDVQRPDWHULDOLPSDFWRQWKHFRQGHQVHGTXDUWHUO\FRQVROLGDWHGILQDQFLDOVWDWHPHQWV
6HJPHQW,QIRUPDWLRQ<HQ PLOOLRQV)RUWKHQLQHPRQWKVHQGHG'HFHPEHU
1RUWK
$VLD
7RWDO
2WKHU
$PHULFD(OLPLQDWLRQV&RQVROL
GDWHG




















<HQ PLOOLRQV)RUWKHQLQHPRQWKVHQGHG'HFHPEHU
1RUWK
$VLD
7RWDO
2WKHU
$PHULFD(OLPLQDWLRQV&RQVROL
GDWHG

-DSDQ(XURSH([WHUQDOFXVWRPHUV ,QWHUVHJPHQW 







䚷7RWDO 











5HYHQXH

2SHUDWLQJSURILW ORVV -DSDQ(XURSH([WHUQDOFXVWRPHUV ,QWHUVHJPHQW 







䚷7RWDO 






























5HYHQXH

2SHUDWLQJSURILW ORVV 

English translation of "KESSAN TANSHIN" originally issued in Japanese10ɻ6833257'2&80(17$7,21 &2162/,'$7('
 &RQVROLGDWHG)LQDQFLDO5HVXOWVDQG)RUHFDVW<HQ PLOOLRQV)RUWKHQLQHPRQWKV)RUWKHQLQHPRQWKV
HQGHG'HFHPEHUHQGHG'HFHPEHU







5(9(18(«««««««««««««««««««« 

'RPHVWLF««««««««««««««««««« 
2YHUVHDV««««««««««««««««««« 
2SHUDWLQJSURILW«««««««««««««««««« 

3URILWEHIRUHLQFRPHWD[HV«««««««««««««« 

3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQW«««««««« 

3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWSHUVKDUH <HQ ««
1XPEHURI(PSOR\HHV««««««««««««««««











<HQ PLOOLRQV)RUWKH\HDUHQGLQJ)RUWKH\HDUHQGHG
0DUFK
0DUFK
)RUHFDVW
5(9(18(«««««««««««««««««««« 

'RPHVWLF««««««««««««««««««« 
2YHUVHDV««««««««««««««««««« 


2SHUDWLQJSURILW««««««««««««««««««

3URILWEHIRUHLQFRPHWD[HV«««««««««««««« 

3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQW«««««««« 

3URILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWSHUVKDUH <HQ ««
1XPEHURI(PSOR\HHV««««««««««««««««













1RWHV 3OHDVHUHIHUWR2YHUYLHZRIRSHUDWLQJUHVXOWV6HFWLRQ³2XWORRNIRUWKHILVFDO\HDUHQGLQJ0DUFK´RQSDJH
 7KHWDEOHDERYHVKRZVWKHFKDQJHVLQWKHSHUFHQWDJHUDWLRRIUHYHQXHRSHUDWLQJSURILWSURILWEHIRUHLQFRPHWD[HVDQG
SURILWDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWFRPSDUHGWRWKHFRUUHVSRQGLQJSHULRGRIWKHSUHYLRXV\HDU

English translation of "KESSAN TANSHIN" originally issued in Japanese11 &RQVROLGDWHG5HYHQXHE\*HRJUDSKLF$UHD)RUWKHQLQHPRQWKV
HQGHG'HFHPEHU<HQ PLOOLRQV)RUWKHQLQHPRQWKV
HQGHG'HFHPEHU-DSDQ«««««««««««««(XURSH««««««««««««« 
1RUWK$PHULFD«««««««««« 
$VLD«««««««««««««« 
&HQWUDODQG6RXWK$PHULFD««««« 

2FHDQLD««««««««««««

7KH0LGGOH(DVWDQG$IULFD««««7RWDO««««««««««««« 










)RUWKH\HDUHQGHG
0DUFK





































1RWHV 7KHWDEOHDERYHVHWVIRUWK0DNLWD VFRQVROLGDWHGUHYHQXHE\JHRJUDSKLFDUHDEDVHGRQWKHFXVWRPHU¶VORFDWLRQIRUWKH
SHULRGVSUHVHQWHG$FFRUGLQJO\LWGLIIHUVIURP³6HJPHQW,QIRUPDWLRQ´RQSDJH 7KHWDEOHVKRZVWKHFKDQJHVLQWKHSHUFHQWDJHUDWLRRIUHYHQXHFRPSDUHGWRWKHFRUUHVSRQGLQJSHULRGRIWKHSUHYLRXV\HDU ([FKDQJH5DWHV<HQ)RUWKHQLQH
PRQWKVHQGHG'HFHPEHU
86'-3<«««««««««

(85-3<«««««««««

50%-3<«««««««««)RUWKHQLQH
PRQWKVHQGHG'HFHPEHU


)RUWKH\HDU
HQGHG
0DUFK



)RUWKH\HDU
HQGLQJ
0DUFK
)RUHFDVW




 3URGXFWLRQ5DWLR XQLWEDVLV'RPHVWLF««««««««««««««
2YHUVHDV««««««««««««««)RUWKHQLQH
PRQWKVHQGHG'HFHPEHU)RUWKHQLQH
PRQWKVHQGHG'HFHPEHU)RUWKH\HDU
HQGHG
0DUFK&RPSRVLWLRQUDWLR&RPSRVLWLRQUDWLR&RPSRVLWLRQUDWLR










 &RQVROLGDWHG&DSLWDO([SHQGLWXUHV'HSUHFLDWLRQDQG$PRUWL]DWLRQDQG5 'FRVWV<HQ PLOOLRQV)RUWKHQLQH)RUWKH\HDU)RUWKHQLQH)RUWKH\HDUPRQWKVHQGHG
HQGLQJ
PRQWKVHQGHG
HQGHG'HFHPEHU0DUFK
'HFHPEHU0DUFK
)RUHFDVW


&DSLWDOH[SHQGLWXUHV«««««




'HSUHFLDWLRQDQGDPRUWL]DWLRQ«



5 'FRVWV«««««««««English translation of "KESSAN TANSHIN" originally issued in Japanese12