Business Report 2017
April 1, 2016 to March 31, 2017

Policy

Safety and pleasurethrough high technical capabilities
Medium-term vision“Gateway 2.0” was launched.
Makoto Maki
Chairman and Representative Director

MELCO HOLDINGS INC.

As a company that supports the
network infrastructure in the IoT era.
Melco Group, with Buffalo as the core company, hasbuilt a strong brand in the markets of digital consumer
electronics and computer peripherals. It has earned highreputation in the markets, having the largest market
share of various digital product lines including wirelessLAN, external HDD, and NAS. With these achievements,
it launched a 5-year medium-term vision, “Gateway
2.0,” in the term ended March 2017. In the Internet ofThings (IoT) era that is getting into full swing, thecorporate group is propelling its business operations toprovide safe networks to the entire society in order to“provide everyone with pleasure in connecting to theInternet, and storing and playing back data with easeand safely.” In the drastically changing industries ofconsumer electronics and computers, it will strive forservice enrichment and product development and focus
on reforming its sales activities, including thedevelopment of new sales channels, so as to smoothly
fulfill the medium-term vision.

Established a more robust
management base while maintaining
profitability
This term, although the sales growth in the smart phonemarket was healthy, the sales in the flat-screen TV andtablet markets were stagnant; therefore, the digitalconsumer electronics industry experienced prolonged
harsh conditions.
Under these circumstances, Melco Group propelledapproaches to fortify the management base. Specifically,it endeavored to augment the number of apartments
where “Apartment Wi-Fi (*),” an Internet service forrental apartments, is introduced by increasing thenumber of staff involved in sales activities for the service
and consequently, it successfully expanded sales by
about 350% year on year. At the same time, thecorporate group focused on enhancing the sale ofproducts with high added value in the market forindividual customers and established a system where
sales strategies and measures are set up intensively inthe market for corporations. In particular, it proactively
strengthened the support for and relationship with its
partner companies that have advantages in the
education and tourism fields.
As a result, this term, sales were 74,558 million yen(down 6.8% year on year), operating profit was 5,573
million yen (up 28.0%), ordinary profit was 6,520 million
yen (up 23.1% year on year), and current net income
attributable to the shareholders of the parent company
was 4,389 million yen (up 17.5% year on year).
*Wi-Fi is the registered trademark of Wi-Fi Alliance.

01 Business Report 2017

Provided by Nikkan Gendai

Further expansion and perpetual
growth through new capital policies
and growth investment
Melco Group has formulated new capital policies andbeen striving for long-term improvement of shareholder
value. It will manage both investment in future growthand stable shareholder return simultaneously, aiming for“a total return ratio of 80%” and “long-term increase of
the net profit per share.”
In addition, in order to strengthen the data recovery
business that it newly launched, it has solidified thefoundation for stable earnings and enhancement of sales
capability by acquiring the ownership of Advanced
Design Corp. that has high technical capabilities.
The global situation is unstable and the futureexchange rates and material procurement are uncertain,
and at this moment, there are many indeterminate
factors regarding business forecasts; therefore, thecorporate group will announce business projections forthe next term when it becomes possible to make rational
forecasts.
With the medium-term vision, “Gateway 2.0,”
Melco Group will continue further expansion andperpetual growth in order to keep pursuing the path toa lasting company.

Consolidated Net Sales(Unit: million yen)

102,597

101,185

March
2013

82,55480,040

March

March

March
2014

2015

2016

74,558March
2017

Consolidated Ordinary Income(Unit: million yen)

Consolidated Ordinary Income Margin(Unit: %)
6,520

3,587

4,471

2,533
2.5

March
2013

5,294

8.7

6.6

5.4
3.5

March
2014

March
2015

March
2016

March
2017

Net Income Attributable toParent Company Shareholders(Unit: million yen)

Consolidated Net Income Margin(Unit: %)4,389

Melco Values

5.9

3,735
3,166

A Lasting Company
We earnestly study and put into practice the teachings of ourpredecessors, and continually look to the future with the aim ofachieving the perpetual growth of the Melco Group together
with all those who share the Melco Values.

1,425
1.4

March
2013

4.7

3.8

2,116
2.1

March
2014

March
2015

March
2016

March
2017

Customer Oriented
We always look at things from the perspective of our customers
to continue to provide products and services that play a part in
the realization of even richer lives. We take pleasure incontributing to the development of society through our wisdomand hard work.

Net Income per Share(Unit: yen)229.88

Rapid Response to Change
We never shy away from the changes happening in the world
around us and we have the courage to change direction when
we make mistakes. We always strive to improve ourselves andwork hard toward personal transformation.

Solidarity
We share high aspirations and passion with a fair and open
spirit. At the same time, we overcome any difficulties weencounter to achieve our goals by coming together as one.

171.93142.57
95.29
64.17

March
2013

March
2014

March
2015

March
2016

March
2017

Business Report 201702

Strategy

Mid-term Vision “Gateway 2.0”
Providing a safe networkin the whole society for the IoT era

Home
network
innovations

Eliminating the trouble of“not connected,”“troublesome to connect”
and “scary to connect”
to Wi-Fi in public spaces

Eliminating the trouble of“not connected,”“cannot be connected”and“no longer connected” ofhome Wi-Fi

IoT(Internet of Things)
The era in which various thingsin the world are connectedto the Internet

PublicgatewaysolutionsDatastorage
optimization

Eliminating the trouble of“lost,” “loss fears,”“cannot be reproduced”and“can be used but only slowly” ofimportant data

03 Business Report 2017

Melco Group will expand a solution business to new fields
by using the technology and know-how that it has cultivated so far.

Started a data recovery service
One-stop support – from data recovery to deletionand broken equipment disposal

Fixed price system according
to target productand impairment level

Free support forlight logic failures
within the warranty period

Free diagnosis
and quotation

We have started a data recovery business to respond to troubles such as the following:“The data stored on my personal computer has disappeared!” “I cannot retrieve data frommy external HDD or USB memory!” We offer free diagnoses and quotations. There is a
fixed price system according to the impairment level. Therefore, it is possible to use thisservice with peace of mind. At the moment, Buffalo products are covered by this service.
However, we plan to support products of other firms in the future.

RepairMy data is broken!

Successful recovery!

Business Report 201704

Business Segment

We support the lifestyles and businesses ofour customers by making things moreuser-friendly and comfortable.
Peripherals
Network Products

Storage Products

Our network products make it possible to access the

Our storage products can store large amounts of data. We

Internet and share data via PCs, smartphones and otherprovide products that achieve high reliability anddevices. Wi-Fi environments are becoming the norm in

performance. These include external hard disks equippedschool classrooms, tourist destinations and other locations.

with highly reliable hard disks designed to be suitable forAgainst this background, we strengthen the development

TV recording and NAS for corporate users equipped withof products to achieve stability in communications and toa function to enable network monitoring from remote

provide comfortable wireless LAN environments.

areas.

Wi-Fi router

External hard disk

Access point
for corporate users

Supplies and Accessories

NAS for corporate users

Memory Products

We have a lineup of products that includes mice, keyboards

High value-added products such as USB memories equipped

and other input devices, as well as other accessories forwith the function to automatically store the connector whentablets. We are pouring our efforts into developing highly

removed from the PC by adopting a knock connector etc.

convenient products. These include USB chargers equipped

We are enhancing our development of products forwith a function to automatically determine whether a

corporate users such as DDR4-compatible products with

device is an iPhone* or Android.

high reliability in industrial embedded applications.

1

USB memory
Premium fit mouse

Memory module

USB charger

Other Products
We provide various groups of products with PC technology applied.
These include “Kurouto Shikou,” a PC component brand that is popularamong users who build their own PCs, “Omoidebako,” a digital photo
album that allows users to digitally view their photos, and our digitalmusic library dedicated to the storage of high-resolution audio.

05 Business Report 2017

Omoidebako

Digital music library*1: iPhone is a trademark of Apple Inc. in the U.S.

BCN AWARD 2017
(From January to December 2016)

Winner in 14 Categories
These prizes are awarded based on actual
aggregate sales at major electrical appliancestores across Japan.

Services

We have developed various services for individuals, corporations
and apartment building owners. We are expanding andWireless LAN
Category

NAS
Category

15th consecutive year
15th win

4th consecutive year
4th win

External HDD
Category

RouterCategory

9th consecutive year
14th win

14 th consecutive year
15th winenhancing support to meet the needs of our users – from on-site
configuration to maintenance services. “Apartment Wi-Fi,” aninternet service for rental apartments, offers total support – from

Hub Category

pre-installation checks through to maintenance. Furthermore, we

16th consecutive year / 17th win

are also striving to expand new services of our company. For

LAN Card Category

example, we started the NAS/monitoring camera rental service“BITS Rental” for short-term use in construction sites and similar
locations.

18th consecutive year / 18th win
Print Server Category

17th consecutive year / 17th win
Recordable DVD Drive Category

9th consecutive year / 9th win
Memory Category

8th consecutive year / 16th win*2
Expansion Interface Category

14th consecutive year / 14th win*3
PC Power Unit Category

6th consecutive year / 6th win
Apartment Wi-Fi

Drive Casing Category

7th consecutive year / 9th win
Graphics Board Category

14th consecutive year / 14th win
Game Controller Category

first win
*2: This is as the Melco Group. We have won this award
six years in a row for a total of six times as CFD sales*3: This is as the Melco Group. We have won this award
eight years in a row for a total of eight times as CFD sales.

GfK Japan Certified 2016
(From January to December 2016)

Finance

We are involved in investment management business andfinancial product brokerage business in our financial business.

Winner in 3 Categories
These prizes are awarded to the
manufacturers with the greatest sales volume
share for the year.
Network Category

HDD Category

9th consecutive year
9th win9th consecutive year
9th win

DVD Drive Category

7th winBusiness Report 201706

Business Overview
Consolidated
Net Sales

101,185(Unit: million yen)

Finance82,554Services

80,04074,558Peripherals

5,573

Consolidated
Operating Proit

4,354
3,512

(Unit: million yen)

2,811

229.88Net Income
per Share

171.93142.57(Unit: yen)

95.29
March
2014

March
2015

March
2016

March
2017

Finance

−

1,142

1,550

1,547

Services

2,447

2,314

2,225

1,160

Peripherals

98,73879,09876,264

71,848Overseas Sales (Peripheral Equipment Operations)

5,216 million yen

21.7 % decrease

We promoted a shift in sales to corporate users focused on NAS products and we were able to reduce our unprofitablebusinesses with the aim of reconstructing our sales structure in our overseas operations. As a result, net sales were 5,216
million yen (down 21.7% year on year).

Proportion of Sales by Region

Overseas Sales(Peripheral Equipment Operations)(Peripheral Equipment Operations)North, Central & South America

Asia & Oceania

1.0％

Japan

92.7％

North, Central &South America

3.4％

07 Business Report 2017

Asia & Oceania

18,726
4,852

Europe2.9％

Europe(Unit: million yen)

9,797

7,448

6,663

2,110
3,197

6,425

1,576
2,215

4,489

March
2014

2,870

March
2015

5,216
716
2,087
2,412

March
2016

March
2017

Consolidated Net Sales by Segment
Peripherals
96.4％

71,848 million yen

year on year

5.8 % decrease

Although sales of our network products continued to be strong, our peripheral equipment business sales were
71,848 million yen (down 5.8% year on year) due to the impact of intensifying price competition and curtailmentof sales of unprofitable products in our other major products. Our operating profit was 4,759 million yen (up57.7% year on year) because of the cost price reduction effect from an appreciation in the yen and a successful
shift to sales centered on overseas corporations.
We present the situation for our main products below.
(Unit: million yen)

Storage Products

44.8％

We strived to strengthen sales centered on HDDs for television recording in the Japanese consumer market with ourstorage products. Although unit sales slightly increased, the effect of the decline in the sales unit price due to pricecompetition meant that sales were 23,105 million yen (down 10.2% year on year). We have been striving to maintainour top share of the Japanese consumer market with NAS products. Furthermore, we have been looking to increase
sales by expanding into the educational market with products that greatly reduce the transfer time for large volumesof data for our corporate customers. However, due to a reduction in our market share, our unit sales declined 13.1%
year on year and so sales were 10,257 million yen (down 11.1%).

Network Products
28.1％

We expanded our share of the wireless LAN market by developing products tailored to the needs of our customers
with our network products. We focused on increasing sales of educational-orientated products that achieve stableperformance when connecting multiple devices and products with environmental resistance performance for Corporate
consumers. As a result, unit sales increased 9.1% year on year and so sales were 20,984 million yen (up 8.2%).

Memory Products
10.4％

7.4％

2.1％

March
2016

March
2017

17,887 19,391

20,984

March
2015

March
2017

March
2016

10,544 9,627

Supplies and Accessories

7,196

In terms of supply and accessory products, we focused on selling high added value products, such as mice equippedwith functionality and design based on sensitivity assessments and USB chargers that perform optimal rapid charging
by identifying the type of smartphone. However, due to the impact of clearing out unprofitable products, sales were
5,507 million yen (down 1.0%).

In terms of our other products, we established Melco Syncrets Inc. to further develop our high resolution audio
equipment business and strived to improve the level of recognition for Omoidebako digital photo albums. However, wewere unable to completely compensate for the reduction in sales of discontinued products and so sales were 4,228
million yen (down 4.3% year on year).

Services
1.5％

March
2015

Unit sales of our memory products declined 38.4% year on year, and sales were 2,963 million yen (down 19.9%). Thiswas due to the shrinking market for personal computer expansion memory products and sluggish sales of industrial
use embedded memory products. In terms of our flash memory products, sales of USB memories grew steadily and weincreased our market share. Unit sales increased 3.7% year on year. However, sales of custom-made products forindustrial equipment declined. Therefore, sales were 4,801 million yen (down 11.1%).

Other Products
5.7％

38,764 37,261 33,362

1,160 million yen

March
2015

7,764

March
2016

March
2017

5,563

5,507

March
2015

March
2016

March
2017

4,705

4,421

4,228

March
2015

March
2016

March
2017

year on year

47.8 % decrease

We worked on increasing the number of introductions of our Apartment Wi-Fi* Internet service for rental apartmentbuilding owners in our services business. However, we were not able to completely compensate for the reduction in salesof optical line agency setting services that have been declining due to the improved penetration rate. Therefore, sales were1,160 million yen (down 47.8% year on year and operating losses were 87 million yen (operating profits were 342 million
yen in the previous fiscal year).

Finance

1,547 million yen

year on year

0.2 % decrease

Against a backdrop of severe global market conditions, our financial business saw sales of 1,547 million yen (down 0.2%
year on year) and operating profits were 806 million yen (down 7.3% year on year).

*Wi-Fi is the registered trademark of Wi-Fi Alliance.
Business Report 201708

Special feature

Products DNA

Wireless LAN forthe educational market
that realizes a comfortable
ICT environment

High-speed NAS equippedwith SSD that combines functionalityand design at a high level
NAS equipped with SSD

Access Point for Corporate Users
Akinori Shibata of the Network Division

Yuuki Nakajima of the Network Division /Hibiki Ikegami of the Design Section, Shared Technology Department

In classes using one tablet per child, all students
can now send/receive files and watch videos at
the same time. We enabled this by developing
tri-band, adding a supplementary 5 GHz band to
the dual band (5 GHz + 2.4 GHz) in our previous
model to speed up and stabilize communications.
This has realized a more comfortablecommunications environment with a band steeringfunction that efficiently distributes the number oftablets connected to each radio band. In addition,
the dedicated radar wave monitoring antenna solves
the problem in which wireless comes to a halt due
to the access point moving to another channel
when a weather radar or similar signal is detectedby facilitating smooth channel movement. We
believe we have developed a product that willrealize comfortablelessons in a
fully-fledged ICT
environment that is
also compatible withother similar
management
functions.

We updated the existing NAS by adopting a SSD
in the internal storage. With the original HDD,
the storage speed would bottleneck whenattempting to extract the potential of 10 GbEwith a transmission
speed of 10 Gbps tothe maximum extent
possible. We
dramatically
improved the transfer
speed by adopting a
SSD. This made it
possible to employ
the benefits of 10 GbE. It also greatly improved
the earthquake resistance and energy efficiencyof the product. Moreover, we selected a SSD
with good compatibility and few faults by testing
10 types of SSD with the main unit at the timeof development. Our advancement won the Red
Dot Design Award – a historic German design
award - because it clearly incorporated theconcept of “NAS outside of server rooms” forkey arrangement and dust prevention design
decisions.

WAPM-2133TR

09 Business Report 2017

TS5210DF

− Genealogy ーWe embodied theneed for surveillance cameras
through cooperation
with our customers

Omoidebako:Continuing to evolve basedon the voices of our customers

Surveillance camera system

Digital Photo Album

Takeo Miyake of the Network Division /Takashi Yamasaki of Development Division

Masayuki Nemoto of the market division,
New Business Department

Many existing surveillance cameras are either
large-scale products requiring network knowledge
or extremely simple products for home-use at theother end of the extreme. Thus, they are difficult
to introduce to small shops and offices. We
developed the Surcam CR1000 series by talking toaround 100 mainly local shops and offices
throughout the development process to generate asolution unique to Buffalo. The series is both easy
to install and use as an answer to their needs. It is
possible to operate the camera by just connecting
the LAN cable; a PC is
not needed. We have
two types of system: asystem with twocameras and a systemwith four cameras.
We have focusedthese systems on“shooting” and“watching” to keep down costs. By incorporating
customer needs down to the finest details
according to the Buffalo philosophy of“Customer-Orientated”, we designed a product incooperation with our customers for theirsatisfaction.

Our Omoidebako
photo albums for thedigital era make itpossible to shareimportant memories
with family andfriends. Our newmodel, the fifth generation PD-1000S series, has
improved the transfer speed and carrying of
memories. The biggest improvement is that wehave made it possible to support 11 ac. It has
also become possible to use the 5 GHz band in
addition to the 2.4 GHz band. This has enabled
high-speed transfers and smooth and stablecommunications. The newly added clip function
allows users to bring photographs in the
Omoidebako to other locations by downloading
albums onto a smartphone. We made thispossible in response requests from customers
who want to see the photographs they havesaved in the Omoidebako even when they gooutside. We will continue to evolve the
Omoidebako based on the voices of ourcustomers in the future.

CR1000PD-1000S

Business Report 201710

Financial Statements● Consolidated Balance Sheet(Unit: million yen)

Fiscal Year
Ended March 31,
2017

Fiscal Year
Ended March 31,
2016

Current assets

58,71260,476

Fixed assets

8,468

4,506

Tangible fixed assets

871

619

Intangible fixed assets

1,271

968

Investments, etc.

6,325

2,917

67,181

64,982Item❶ Assets

Total assets❷ Liabilities

POINT❶ Assets
Total assets for the fiscal year ended March 31,2017 were 67,181 million yen – a increase of
2,198 million yen compared to the end of theprevious consolidated fiscal year. Current assets
totaled 58,712 million yen – a decrease of 1,763
million yen. This change was mainly due to a
374 million yen decrease in notes and accounts
receivable, a 3,000 million yen decrease in
securities, and a 1,663 million yen increase ingoods and products. Fixed assets totaled 8,468

Current liabilities

21,312

18,671Long term liabilities

2,512

2,507

Total liabilities

23,824

21,179million yen – an increase of 3,962 million yen.
This change was mainly due to a 3,343 million
yen increase in investment securities.

❷ Liabilities❸ Net assets

Total liabilities for the fiscal year ended March

Shareholders’ equity

31, 2017 were 23,824 million yen – a increase

1,000

1,000

902

774

the previous consolidated fiscal year. Current

Retained earnings

49,59545,993

liabilities were 21,312 million yen – a increase

Treasury stock△8,184△3,831

43,312

43,936

Common stock
Additional paid-in capital

Total shareholders’ equityof 2,645 million yen compared to the end ofof 2,640 million yen. This change was mainly
due to a 1,824 million yen increase in notes
and accounts payable and a 1,071 million yen
increase in Accrued income taxes, etc. Long-

Accumulated othercomprehensive income

term liabilities totaled 2,512 million yen – anincrease of 4 million yen.

Net unrealized gains(losses) on other securities

245

190

Deferred gains orlosses on hedges

△26

△50

❸ Net Assets

Foreign currencytranslation adjustments

△92

△233

31, 2017 were 43,356 million yen – a decrease

Remeasurements ofdefined benefit plans△83

Total accumulated othercomprehensive income

43

△133

Total net assets

43,35643,803

Total liabilities andnet assets

67,181

64,982

11 Business Report 2017

Total net assets for the fiscal year ended Marchof 446 million yen compared to the end of the△40

previous consolidated fiscal year. This change
was mainly due to the acquisition of net income
attributable to parent company shareholders of
4,389 million yen, dividend payments of 787
million yen and the acquisition of 4,613 million
yen in treasury stock.

● Consolidated Income Statement(Unit: million yen)

Fiscal Year
From April 1, 2016
to March 31, 2017

Fiscal Year
From April 1, 2015
to March 31, 2016

Net sales

74,55880,040

Cost of sales

56,20362,537

Selling, general andadministrative expenses

12,781

13,148Operating income

5,573

4,354

Non-operating income

1,172

1,000

Non-operating expenses

225

60

6,520

5,294

Extraordinary income

01

Extraordinary loss

28

144

Net income before
taxes and otheradjustments

6,491

5,152

Income, resident andenterprise taxes

2,116

705

Income taxes –deferred△15711

Net income
attributable to parent
company shareholders

4,389

3,735

Item

Ordinary income● Consolidated Cash Flow Statement(Unit: million yen)

Fiscal Year
From April 1, 2016
to March 31, 2017

Fiscal Year
From April 1, 2015
to March 31, 2016

6,487

6,108

Cash flows from investing
activities△1,151△4,662

Cash flows fromfinancing activities△5,401△5,102

Effect of exchange ratechanges on cash andcash equivalents

△4

△83

Net increase (decrease)in cash and cash
equivalents△69△3,740Cash and cash
equivalents at the
beginning of the period

4,664

8,404

Cash and cash
equivalents at the endof the period

4,595

4,664

Item

Cash flows fromoperating activities

Total Assets (Unit: million yen)
Capital to Asset Ratio (Unit: %)For detailed information:
67,475
63.8

69,01565.7

64,982
67.4

67,181
64.5

MELCO HOLDINGS IR

Searchmelco-hd.jp/ir/top

March
2014

March
2015

March
2016

March
2017

Business Report 201712

Company Information(Current as of March 31, 2017)Japan● MELCO HOLDINGS INC.
Company Name

Melco Holdings Inc.

Board Members

Date of
Incorporation

July 1, 1986

Chairman and Representative Director

Capital Stock

1,000 million yen

Business Activities

Pure holding company of Melco Group
Melco Holdings Inc. is a pure holding company that holds theshares of the group’s operating companies. Governs theoperating companies in our group by providing support forbusiness activities and offering managerial guidance.

(Current as of June 14, 2017)

Makoto Maki

Number of
Employees

Non-consolidated: 22
Melco Group consolidated: 771

Number of Group
Companies

20 (12 in Japan; 8 overseas)

President and CEO

Hiroyuki Maki
Executive Vice President

Tamio Matsuo

Senior Managing Director

Kuniaki Saiki
Director

Iwao Tsusaka
Director

Hiroyuki Minoura
Full-time Corporate Auditor

Masanao Tsuzuki
AuditorAkio Oguri
AuditorKazuo Ueda

● BUFFALO INC.
Company Name

Buffalo Inc.

Board Members

Date ofFoundation

May 1, 1975

President and CEO

Date of
Incorporation

August 5, 1978

Capital Stock

320 million yen

Business Activities

Development, manufacture and sale of digital home
appliances and PC peripherals

Number of
Employees(Current as of May 9, 2017)

Takehiko Inoue
Executive Vice President

Tamio Matsuo
Managing Director

454

Taiji Watanabe
Director

Ryousuke Yoshizaki
Director

Shingo Tanaka
Director

Manabu Wada
Director

Masaya Ishimaru
Director

Kazunori Yokoi
Corporate Auditor

Takeyasu Oshima

Business Locations
Headquarters

Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya, 460-8315, Japan

TEL: 81-52-249-6610

FAX: 81-52-249-6609

Tokyo Branch Office

Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo, 104-0033, Japan

TEL: 81-3-3523-3333

FAX: 81-3-3523-3300

Osaka Branch Office

Sumitomo Seimei Shin-Osaka Kita Bldg., 4-1-14 Miyahara, Yodogawa-ku, Osaka,532-0003, Japan

TEL: 81-50-5533-1250

FAX: 81-6-6398-5755

Hokkaido Sales Office

San Keisei Bldg., 1-4-1 Kitaichijo Higashi, Chuo-ku, Sapporo, 060-0031, Japan

TEL: 81-11-200-8150

FAX: 81-11-200-8151

Tohoku Sales OfficeMiyagino Center Bldg., 4-5-22 Tsutsujigaoka, Miyagino-ku, Sendai, 983-0852, Japan TEL: 81-22-291-0311

FAX: 81-22-298-9470

Tokyo Branch Office

Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo, 104-0033, Japan

TEL: 81-3-3523-3342

FAX: 81-3-3523-3320

Chubu Sales Office

Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya, 460-8315, Japan

TEL: 81-52-249-6600

FAX: 81-52-249-6601

Chu-Shikoku Sales Office

Hiroshima Intes, 10-10 Hashimoto-cho, Naka-ku, Hiroshima, 730-0015, Japan

TEL: 81-50-5830-8888

FAX: 81-82-221-8612

Kyushu Sales Office

Yaoji Center Bldg., 4-9-2 Hakataekimae, Hakata-ku, Fukuoka, 812-0011, Japan

TEL: 81-92-477-3711

FAX: 81-92-477-3755

13 Business Report 2017

Stock Information(Current as of March 31, 2017)● CFD SALES INC.

Development, manufacture and sale of personal
computer parts and peripheral equipment● BUFFALO IT SOLUTIONS INC.

Provision of network infrastructure construction andmaintenance services● BUFFALO MEMORY CO., LTD.

Development, manufacture and sale of industrial use
embedded memory and storage products● BIOS CORPORATION● Stock
Number of Shares
Outstanding

22,237,873(including treasury stocks 3,630,890)

Number of
Shareholders

5,456● Major Shareholders (Top 10)
Shareholder Name

Number of
Shares Held

Shareholding
Ratio(1,000 Shares)

(%)

8,485

45.6

Makoto Maki

630

3.4

Hiroyuki Maki

617

3.3

● MELCO SYNCRETS INC.

Daisuke Maki

617

3.3

Development and sale of audio equipment andrelated products

The Bank of Nagoya, Ltd.

501

2.7

● Advanced Design Corp.

The Melco Foundation

500

2.7

Manufacture and sale of data recovery/erasure/conversion services and data erasure products

The Master Trust Bank of Japan,
Ltd.,(trust account)

265

1.4

● MELCO FINANCIAL HOLDINGS INC.

GOVERNMENT OF NORWAY

259

1.4

STATE STREET BANK AND TRUSTCOMPANY 505103

239

1.3

STATE STREET BANK AND TRUSTCOMPANY

237

1.3

Development, manufacture and sale of storagerelated products● Buffalo Direct Inc.

Internet shopping

Overall management of financial business within the
Melco Group● MELCO INVESTMENTS INC.

Investment management and financial instrument
intermediary services

Overseas● <USA> BUFFALO AMERICAS, INC.

Sale of network-related equipment and PC
peripherals

Makis Inc.

Notes:
1. The number of shares held has been rounded down to the nearest one thousand.
2. ‌The shareholding ratio calculation does not include treasury stock and this has beenrounded off to the first decimal place.

‌ hareholding Distribution by●S

Type of Shareholder (Unit: thousand shares)

Treasury stock
3,630（16.3％）

Financial institutions
1,962（8.8％）● <Europe> BUFFALO EU B.V.

Sale of network-related equipment and PC
peripherals● <Taiwan> BUFFALO TECHNOLOGY (TAIWAN) INC.

Procurement and Management of the product● <Singapore> MELCO CAPITAL PTE. LTD.

Investment management

Individuals
and others
4,149（18.7％）
Foreigncorporations
3,158（14.2％）

Number of
SharesOutstanding
22,237

Financial instruments
business operators
162（0.7％）
Other Japanese
corporations
9,173（41.3％）

Notes:
1. The number of shares held has been rounded down to the nearest one thousand.
2. The composition ratio has been rounded off to the first decimal place.

Business Report 201714

Website Guide

Shareholder Notes

MELCO HOLDINGS INC.

Fiscal year-end:

March 31

Ordinary general meetingof shareholders:June

Dates to determine stock
ownership:

For shareholders with voting rights: March 31

Provides the latest news, corporate information,
information for investors and other data.

For shareholders eligible for year-end dividends:
March 31
For shareholders eligible for interim dividends:
September 30
Stock listings:

First section of the Tokyo Stock Exchange andNagoya Stock Exchange

Securities code:

6676

Number of shares per
trading unit:

100 shares

Method of public notice:

Posted electronically on
http://melco-hd.jp/koukoku/

BUFFALO INC.

Stock agencies:

Sumitomo Mitsui Trust Bank, Limited

Product information and other data is provided on
the site of the core company in the Melco Group.

Contact Information:

Sumitomo Mitsui Trust Bank, Limited., Stock
Transfer Agency Business Planning Dept.
2-8-4 Izumi, Suginami-ku, TokyoPC

melco-hd.jp• Telephone Inquiries
0120-782-031 (Toll free)
9:00 to 17:00 (Except on Saturdays, Sundays
and public holidays)
Managing underwriter(Main) Daiwa Securities(Secondary) Nomura Securities,
Mizuho Investors Securities and
SMBC Nikko Securities

PCbuffalo.jp(Securities code: 6676)

Headquarters:

Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku,
Nagoya, 460-8315, Japan
TEL: 81-52-251-6891 FAX: 81-52-249-6609

Headquarters:

Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku,
Nagoya, 460-8315, Japan
TEL: 81-52-249-6610 FAX: 81-52-249-6609

Tokyo Branch Office

Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku,
Tokyo, 104-0033, Japan
TEL: 81-3-3523-3333 FAX: 81-3-3523-3300

Smartphonem.buffalo.jp