Annual Report for the 89th Term
January 1, 2015 – December 31, 2015

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)
160,000

146,241

154,067

127,365
120,000

103,657

111,43180,000Katsuyuki Fukuda

40,000Chairman & Representative Director
085th term 86th term 87th term 88th term 89th term

Consolidated ordinary income (Unit: Million yen)
9,000

8,363

6,386

Toyohiko Ota

6,000
4,144

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 89th term ended on
December 31, 2015.
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 maintains close communications with its customers anddraws on its comprehensive strengths and sincerity to form strong bonds
with those that we love and cherish, in order to protect their lives andlivelihoods. The Company’s management philosophy is: “To value people
and the environment, and aim to create inspirational value based on a
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.
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 avidly pursue the measures that we set at the
beginning of the year and further enhance our corporate value as a unitedcorporate group so that we may continue to meet the expectations of ourshareholders.
We sincerely hope you will grant us your continued support and guidance
going forward.
March 2016
1

2,904

3,000
501
0

85th term 86th term 87th term 88th term 89th term

Consolidated profit (Unit: Million yen)
8,573

9,000
7,500
5,611

6,000
4,500
2,729

3,000

3,265

1,500
-234
0
-1,50085th term 86th term 87th term 88th term 89th term

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 on its moderate recovery trend from the previous year,
underpinned by the government’s economic measures and themonetary easing initiatives by the Bank of Japan. Meanwhile, an
air of uncertainty continued to prevail over the Japanese
economy, as evidenced by the turmoil in the stock markets
caused by the slowdown of the Chinese economy.
In the construction industry, while prospects appeared brightfor public investments in construction with the commencement ofworks related to the Tokyo Olympics in the Tokyo metropolitanarea, in regional areas there was little reason for optimism as theshrinking budget for public works has begun to put pressure on
the management of construction companies. In terms ofinvestment in construction by the private sector, appetite forcapital expenditures is rising mainly in the Tokyo metropolitan area
and other metropolitan areas. In the regional areas, however,capital expenditures continue to stagnate due to the unstableeconomic outlook.

Going forward, the Japanese economy is expected to further headtoward a recovery trend mainly in the urban areas against thebackground of improvements in corporate profitability andgovernment-led measures to boost personal consumption.
Nonetheless, continued restraint in capital investments is anticipatedin regional areas due to the declining population and the uncertain
economic outlook.
In the construction industry, the order environment is expected tocontinue improving in anticipation of the moderate recovery in capital
investment by the private sector and public investments inconstruction in the Tokyo metropolitan area prior to the Tokyo
Olympics in 2020. In terms of revenue, however, the outlook still lacks
optimism due to the continued presence of potential factors that may
put a downward pressure on profits, including the upsurge in prices ofraw materials due to the increase in construction demand and the risein labor costs caused by a shortage of construction workers.
In view of these circumstances, we expect consolidated businessresults for the fiscal year ending December 2016 to yield net sales of¥167.0 billion, operating income of ¥7.0 billion, ordinary income of¥6.6 billion and net income attributable to owners of the parent of¥6.5 billion.
In regard to the Company’s non-consolidated business results forthe next fiscal year, we anticipate orders of ¥100.0 billion, net sales of¥109.0 billion, operating income of ¥5.0 billion, ordinary income of¥5.0 billion and net income of ¥5.0 billion.

Consolidated business results for the fiscal year under review
Under these circumstances, the Fukuda Group has focused on
the establishment and rigorous progress management of adetailed management plan while fully utilizing its management
resources. The Group has also strived to further deepen thecollaboration among group companies by promoting informationexchange and business collaboration. As a result, theconsolidated business results for the fiscal year under review wereas follows.
Net sales rose 5.4% over the previous fiscal year to more than¥154.0 billion thanks to the balance carried forward from last year
and the increase in orders received, as well as the efficient
progress made in construction works for which orders havealready been received. In terms of profit, gross profit increased by
30.1% year on year to more than ¥17.2 billion, attributable to theimprovement of the order environment in the construction
business, the shortening of work processes in major construction
works, the reduction of costs in conjunction with lower crude oil
prices and lower fixed costs due to increases in construction
projects earnings, as well as the brisk sales of real estate held forsale. Although general and administrative expenses rose due tothe increase in labor costs, operating income increased 44.1%
year on year to more than ¥8.1 billion. Additionally, as there wereno major extraordinary gains or losses in the fiscal year underreview such as impairment losses reported in the previous fiscal
year, net income rose 52.8% year on year to more than ¥8.5
billion.

Ratio of net sales by consolidated business
Real estate business¥5,435 million

3.5%

Other business¥9,386 million

6.1%

Construction business¥139,245 million

90.4%

2

Completed Work
Main projects completed in the fiscal year under review

Construction

Healthcoop Shirone

Shirone Kensei Hospital Relocation & Construction Project(Niigata Prefecture)

Kyoritsu Estate Co., Ltd.

Tentative name: La Vista Fuji-Kawaguchiko Construction Project(Yamanashi Prefecture)

Houraikan, Ltd.

3

Houraikan Extension and Improvement Project(Iwate Prefecture)

Akiyoshi Matsuda

Akiyoshi Matsuda Residence Construction Project(Aichi Prefecture)

Kikoukai Social Welfare Service Corporation

Tentative name: Tatsumiminami General Rehabilitation Facility Yume-no-hakoConstruction Project (Osaka Prefecture)

LANDIC ASSOCIATES Co., LTD.

Tentative name: ASSOCIA FUKUMA Condominium Construction Project(Fukuoka Prefecture)k

Civil Engineering

Ministry of Land, Information, Transport and Tourism
Kakigawa Drainage Canal Sluice Construction
Project (Niigata Prefecture)

Tokyo Metropolitan Government

Nakano Water Reclamation Center Seismic Reinforcementof Water Processing Facility No. 2 (Tokyo)

Ministry of Land, Information, Transport and Tourism
Shinano River Downstream Imonoshigoya River
Channel No. 5 Drilling Project (Niigata Prefecture)

Niigata Prefecture

National Route 403 Government Grant Road Improvement Project
Tentative name: Shin-Okura Tunnel Construction (Niigata Prefecture)

Niigata Prefecture2012 East Photovoltaic Power 2-7, Niigata East Photovoltaic
Power Plant (3 Series Construction) Project (Niigata Prefecture)

Chiba Prefecture

Social Infrastructure Improvement Government Grant
Project (U-shaped retaining wall) (Chiba Prefecture)

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

AEON TOWN Co., Ltd.

Healthcoop Shirone

Yodobashi Camera Co., Ltd.

Kyoritsu Estate Co., Ltd.

Japan Post Co., Ltd.

Ministry of Land, Infrastructure, Transport and Tourist, Kyushu Regional Development Bureau

Ministry of Land, Infrastructure, Transport and Tourist, Kinki Regional Development Bureau

Bureau of Public Enterprise of Niigata Prefectural Government

AEON TOWN Yukarigaoka (B Block and pedestrian bridge) Construction Project
New Yodobashi Assembly Center Kawasaki Construction Project
New Niigata Postal Processing Facility Construction Project
Nabetani Pass Nabetani Tunnel (Osaka side) Construction Project

Shirone Kensei Hospital Relocation & Construction Project
La Vista Fuji-Kawaguchiko Construction Project
Hirao Tunnel Construction Project

Photovoltaic Power Plant Construction Project (3 Series Construction) in Eastern Niigata
4

Consolidated
Financial Statements
Consolidated Financial Statements

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

89th term
88th term(as of December 31, 2015) (as of December 31, 2014)

AssetsCurrent assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

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

72,09628,40021,103779
6,516
100,496

Liabilities
Current liabilities
Non-current liabilities
Total liabilities

56,4007,260
63,66155,001
7,489
62,49045,551
5,158
6,048
34,527

183
927
1,227
46
253
511
46,990110,651

37,313
5,158
5,996
26,281
123
385
818
144
288
307
38,006
100,496

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
Minority interests
Total net assets
Total liabilities and net assets

yen, rounded(downUnit:toMillion
the nearest million yen )Consolidated Statement of Income
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
Income before income taxes and minority interests

Income taxes – current
Income taxes – deferred
Income before minority interests

Minority interests in income
Net income

89th term
88th term(January 1, 2015 - December 31, 2015) (January 1, 2014 - December 31, 2014)

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

146,241
132,969
13,272
7,604
5,667
1,074
355
6,386
318
1,041
5,663
595
579
5,647
36
5,611
yen, rounded(downUnit:toMillion
the nearest million yen )Consolidated Statement of Cash Flows

89th term
88th term(January 1, 2015 - December 31, 2015) (January 1, 2014 - December 31, 2014)

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

16,978
1,723
4,642
10,613
13,585513
3,031
6,204
2,65916,255—

10

24,19813,585yen, rounded(downUnit:toMillion
the nearest million yen )Consolidated Statement of Changes in Equity (January 1, 2015 – December 31, 2015)
Accumulated othercomprehensive
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity
incomeShareholders’ equity

Balance as of January 1, 2015
Cumulative effects of changes in accounting policies
Restated balance
Changes of items during the period
Dividends of surplus
Net income
Purchase of treasury shares
Disposal of treasury shares
Net changes of items during the period other than shareholders’ equity
Total changes of items during the period
Balance as of December 31, 2015
5

5,158

5,996

5,158

5,996

26,281
15
26,266

123
123

37,313
15
37,297

89
29

312
8,573
89
82

60
183

8,253
45,551

312
8,573
52
—
5,158

52
6,048

8,261
34,527

Minority
interests

Total net
assets

385

307

385

307

38,006
15
37,990

204
204
511

312
8,573
89
82
745
8,999
46,990

541
541
927

Non-Consolidated
Financial Statements

Non-Consolidated Financial Statements

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

89th term
88th term(as of December 31, 2015) (as of December 31, 2014)

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

51,394
16,745
7,803
85
8,856
68,14045,062
15,795
8,123
94
7,577
60,85838,584
2,711
41,29536,9893,514
40,50325,2905,158
6,048
14,266
183
1,554
896
658
26,844
68,14019,162
5,158
5,996
8,131
123
1,192
590
601
20,35560,858yen, rounded(downUnit:toMillion
the nearest million yen )Statement of Income

89th term
88th term(January 1, 2015 - December 31, 2015) (January 1, 2014 - December 31, 2014)

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

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

Orders/Net sales (Unit: Million yen)

Ordinary income/Net income (Unit: Million yen)OrdersOrdinary income/Net sales

125,000
100,000
75,00056,95750,00089,066

83,987

5,000

3,847

58,17347,631

2,500

1,299

1,898

6,446

3,588

2,507

1,023

-518 -1,480

25,0000

5,863

96,47173,04072,293/Net income

7,500

110,090
100,003

89,066
83,9805,086
82,68578,158
4,526
6,381
5,821
559
3,350
3,031
1,146
329
3,847
97
1,081
2,863
203
521
3,588

0

85th term

86th term

87th term

88th term

89th term-2,50085th term

86th term

87th term

88th term

89th term
6Medium-term
Business Strategy
Medium-Term Business Strategy

In terms of the business environment, while a certain
level of demand is anticipated in the short-term, theorder environment in the medium- to long-term is
expected to become increasingly harsh due partly to theuncertainty surrounding the future of the Japanese
economy as a result of the economic slowdown in China
and the other emerging countries, as well as the waning
appetite for capital expenditures stemming from factors
including the declining population.
Under these circumstances, the Fukuda Group has
formulated the “Long-term Vision 2025,” which
embodies the ideal image to be targeted over the longterm, and the three-year action plan, ”Medium-TermBusiness Plan 2018,” which commenced from the current fiscal year. In the “Long-term Vision 2025” we haveenvisioned a company capable of sustained and stable growth as the ideal image to be targeted in the next ten
years, with the basic measure of “transcending the conventional framework of a regional general contractor andexpanding our operations nationwide through robust consolidated management.” Furthermore, each groupcompany will aim to grow by individually implementing strategies to increase profit levels while the Group as awhole will aim for further growth by aggressively promoting the fusion of each company’s know-how andtechnology.
Main measures in the Medium-term Business Plan(i) Build a “stable revenue base” in the existing businesses(ii) Look ahead to the future and prepare for “the diversification of the revenue base”(iii) Secure sales and profits through Group cooperation(iv) Secure and nurture talent(v) Become the FUKUDA Group trusted by society
Guided by the above five items as its basic policy, the Group will build a solid management base in the next three
years, as the first step toward achieving the “Long-term Vision 2025.”

7

GroupInformation

Group Information
Corporate GroupThe Fukuda Corporate Group consists of the Company, 30
subsidiaries and five affiliates, and its mainstay businesses are theconstruction business and the real estate business. Other businessencompasses services other than construction.
FUKUDA HOUSING CO., LTD.
RECS CORPORATION

1.1%

Construction businessIn addition to the construction orders and projects undertakenby the Company, FUKUDA ROAD CONSTRUCTION CO., LTD.
and 23 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.

Kita Nihon Construction Material
Leasing Co., Ltd.

2.3%

12 other companies

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.

4.3%

3.3%

KOWA Co., Ltd.

5.0%

FUKUDA RENEWALCORPORATION

5.4%

FUKUDA ROAD
CONSTRUCTION CO., LTD.

18.1%

FukudaCorporation

60.5%

Consolidated net sales:¥154,067 million

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.

RECS CORPORATION
http://www.kk-recs.co.jp/
Head office:12-10 Minami-Nagata, Chuo-ku, Niigata City
Branches:
Niigata City, Nagaoka City and Joetsu City
Business offices: 13 locations in Niigata Prefecture
Business activities:
Road environment maintenance services (road patrol, snowplowing,inspections, etc.)
Construction of traffic safety facilities (road markings, signs,
guardrails, etc.)
Bridge maintenance and repair, and sewer maintenance and repairs
Repairs of concrete structures
Rental and sales of crossing guard equipment

Tel: 025-287-6811

RECS CORPORATION, as a “comprehensive maintenance and management company of the regional
environment,” is engaged in the maintenance and repairs of infrastructures, namely the roads, bridges and thesewer system of Niigata Prefecture.
During the fiscal year under review, we, together with the Group’s TAKAKEN CO., LTD., adopted the “bridge
inspection vehicle.” We will continue to leverage the comprehensive strengths of the Fukuda Group while
cooperating with the individual companies and focus on conducting surveys, inspections and repairs on bridges.
We intend to offer the know-how and technology, which it has acquired in the past 40 years since its founding, inaddressing the growing need to maintain and manage as well as to extend the life of “aging social infrastructures,”and ultimately their renewal. Moreover, acting in the capacity of a “general hospital for the regional environment,” wewill continue to support the safe and secure lives of the residents and the economic activities of the region.

Bridge inspection vehicle

Yoneyama Ohashi Repainting Project, ordered by the
Ministry of Land, Information, Transport and Tourism
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 Third 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 third consecutive year.
The Company also received the Excellence in Construction Award (fifth consecutive year) and the Excellence inTechnology Award (third 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.
These awards recognize excellent
records of construction projects
for fiscal 2014, or construction
projects and technical experts
showing remarkableachievements partly as a result of
the Company overcoming
difficulties and making efforts increative originality.

Support and Cooperation in the Kanto and Tohoku Torrential Rain Disaster

Embankment Breaks on Kinugawa Flowing through Ibaraki Prefecture.
We were Mobilized to Provide Emergency Disaster Support.

In accordance with the disaster agreement concluded with the Hokuriku Regional
Development Bureau of the Ministry of Land, Information, Transport and Tourism, theCompany has in place a framework of readiness to execute prompt and precise
measures in the event of an emergency.
During the Kanto and Tohoku Torrential Rain Disaster, which occurred in
September 2015, our disaster response team, upon receiving a mobilization request,
headed to Ibaraki prefecture to conduct drainage as part of disaster relief efforts.
Setting up the drainage pump vehicle to drain the flood water at the flood site is anextremely dangerous task and the handling of such pump vehicles requires
specialized skills. In order to be ready to provide prompt and precise disaster relief
activities in the event of disasters, the Company periodically conducts procedural
training and makes efforts to fulfill its mission as a construction company of protecting
the safety and security of the community on a daily basis.

	Breaks in the embankment and flooding conditions (Photo courtesy of Kanto
Regional Development Bureau of the Ministry of Land, Information, Transport
and Tourism)	Commenced drainage operations near the Yamato Bridge in MitsukaidoFuchigashiramachi, Joso City, Ibaraki Prefecture.
Water pumped from Kinugawa was drained into Kokaigawa, which flows in the
opposite direction as Kinugawa. Operations were conducted throughout the night.
9Corporate Data
Company Profile
Established:
Founded:Capital:Employees:
Consolidated
subsidiaries:
Main offices:

CorporateData(as of December 31, 2015)

January 1902
December 1927
5,158,408,496 yen
817

1 8 (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 (Sapporo,
Hokkaido)
Sales Offices
Morioka, Chiba, Yokohama, Murakami,
Jouetsu, Hiroshima and five other locations

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 Executive
Officer(as of March 29, 2016)

Katsuyuki Fukuda

Senior Executive
Officer

Kuniyoshi Koike

Toyohiko Ota

Executive
Officer

Shoichi Takakuwa

Kenichi Takasaka

Executive
Officer

Tsugio Yuasa

Wataru Ishikawa

Executive
Officer

Hiroshi Miya

Director &Executive Officer

Masahiro Masuko

Executive
Officer

Shinichi Otsuka

Director &Executive Officer

Ryoichi Soma

Executive
OfficerTakeshi Yamamoto

Director &Executive Officer

Fumio Uchiyama

Executive
Officer

Satoshi Iwakawa

Outside Director

Hajime Fukuda

Outside Director

Kenichi Yazawa

Senior Executive
Officer

Chihiro Oiwa

Senior Executive
Officer

Masanori Araaki

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

Koichi Yakuwa
Tetsuya Sunada

Michiaki MiyajimaNotes:
1.	Messrs. Hajime Fukuda and Kenichi Yazawa 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, 2015)

Total Number of Shares
Authorized to be Issued: ������������������������� 100,000,000 shares
Total Number of Shares Outstanding(excluding treasury shares): ����������������������� 44,632,578 shares
Number of Shareholders: ���������������������������������������������� 4,260
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(307,979 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
Stock Transfer Agent / Account Management Institution forSpecial Accounts:
Mitsubishi UFJ Trust and Banking Corporation

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. Start date: Shareholders listed in the Shareholders’ Register asof December 31, 2014
2. Method of presentation: Once a year to shareholders holding
1,000 shares or more as of December 31
3. Benefits: A ¥5,000 QUO card for all shareholders*Eligible shareholders will all receive the same standard benefit.

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

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:
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

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

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)