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/

Transfer agent

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Stock agencies

The head office and all branch offices in Japanof Sumitomo Mitsui Trust Bank, LimitedPC

melco-hd.jp

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

• Telephone Inquiries:
0120-782-031 (Toll free)
9:00 to 17:00 (Except on Saturdays, Sundays
and public holidays)
Managing underwriters(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

Business Report 2016
April 1, 2015 to March 31, 2016

PolicyTaking advantage of the strengths in
our group to move toward an
offensive posture

Giving you a joy throughlink technology
Moving on to the next stage withthe aim of becoming a lasting company
under our new corporate statement
Makoto Maki
Chairman and Representative Director

MELCO HOLDINGS INC.

Driving the IoT era with a new
growth strategy
The Melco Group formulated Gateway 2.0 (see P.3 formore details) as our new mid-term vision for the five
years from the fiscal year ending March 31, 2017.
The aim of this is to supply the stable network that will
be required as we enter the full-fledged Internet ofThings (IoT) era. At the same time, we have changed our
corporate statement from the previous “For a more
comfortable digital life” to “Giving you a joy throughlink technology.” This expresses that the Melco Group,with our mission of improving the convenience of ourcustomers in the IT era, will make it possible foreverybody to easily and securely connect to the Internetin the future and for our company to provide the joythat comes from saving and playing digital data evenmore safely and comfortably.
Moreover, we have formulated a new capital policy
and are working to improve long-term shareholder value.
We will continue to aim to deliver a five-year total return
ratio of 80% and long-term growth in net income pershare with both investments for growth and stable
returns to our shareholders.

01 Business Report 2016

Provided by Nikkan Gendai

Switchover to a profitable structurecompleted through structural reformover three years
The digital consumer appliances industry in this fiscal
year has witnessed a significant expansion in thehigh-quality 4K television market. However, conditions
have been severe due to a decrease in demand for
personal computers and shrinkage of thesmartphone/tablet market.
Under such circumstances, the Melco Group has
strived to improve our brand value throughhigh-value-added products in the individual consumer
market. At the same time, we have promoted the
deepening of custom-made products and specificapplication products in the corporate market. We havealso been focusing on strengthening our loss/cost
reduction efforts and expanding our in-house solutions
service business with the aim of stabilizing the revenue inour group. Furthermore, we have completed a switchover
to a structure that can deliver profits in the low-growthera. For example, we have reduced and withdrawn from
unprofitable business with structural reforms over three
years. At the same time, we have been looking to cut
department costs and optimize our inventory.
Accordingly, our results in this fiscal year showed net
sales of 80.040 billion yen (down 3.0% year on year),
operating income of 4.354 billion yen (up 24.0% year
on year), ordinary income of 5.294 billion yen (up 18.4%
year on year) and net income attributable to parent
company shareholders of 3.735 billion yen (up 18.0%
year on year).

The Melco Group has accomplished our structuralreforms. We are now moving on the offense with
network products for corporations and our in-houseservices/solutions from the next fiscal year. Our new
product category that applies PC technology will
promote the global expansion of high resolution audio
NAS and sales of our popular digital photo album“Omoidebako.” In addition, our technical anddevelopment capabilities will lead to releases ofdifferentiated, strategic products and brand strength
improvement. For example, this includes our wireless
LAN products that are capable of connecting stably tomany devices, which are targeting the educational
market in anticipation of the IoT era. We will also
continue to proactively carry out R&D investment andupfront investment in this category. Furthermore, we will
also focus on expanding our in-house solutions with ahigh profit rate centered on “Apartment Wi-Fi.”*
The Melco Group is aiming for further development
and perpetual growth to be a lasting company under our
new mid-term vision and corporate statement.
*“Wi-Fi” is the registered trademark of the Wi-Fi Alliance.

Consolidated Net Sales(Unit: million yen)

102,597 101,185

March
2013

March
2014

82,55480,04083,000

March
2015

March
2016

March
2017

(Forecast)

Consolidated Ordinary Income(Unit: million yen)

Consolidated Ordinary Income Margin(Unit: %)

2,533
2.5

March
2013

3,587
3.5

March
2014

4,471
5.4

March
2015

5,294
6.6

March
2016

4,600
5.5

March
2017

(Forecast)

Net Income Attributable to Consolidated
Parent Company Shareholders(Unit: million yen)

Melco Values

Consolidated Net Income Margin(Unit: %)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.

3,166
3.8
1,425
1.4

3,735
4.7 3,500
4.2

2,116
2.1

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.

Rapid Response to Change

March
2013

March
2014

Solidarity

March
2016

March
2017

(Forecast)

Net Income per Share(Unit: yen)

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.

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.

March
2015

171.93171.84142.57
95.29
64.17

March
2013

March
2014

March
2015

March
2016

March
2017

(Forecast)Business Report 201602

Strategy

Mid-term Vision “Gateway 2.0”

The Melco Group will continue in the future to expand our solution business to newfields by taking advantage of the technologies and expertise we have built up.

Providing a safe network in the wholesociety for the IoT era

S upport to Improve the Quality of Nursing Care and Facilitate Operations
In the nursing care field where there is no rest 24 hours a day, 365 days a year, there is achallenge of how to reduce the burden on staff and provide better services. We provide
support for day-to-day operations. For example, we stimulate communication using“Omoidebako” and optimize business operations by using Wi-Fi networks and NAS.

Eliminating the troubleof “not connected,”“troublesome toconnect” and“scary to connect”
to Wi-Fi in
public spacesHome
network
innovations

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

Access point
for corporate users

Digital photo album
Omoidebako

NAS for
corporate users

IoT(Internet of Things)

I mproving the Safety of Food with the Power of IT

The era in which various thingsin the world areconnected to the Internet

PublicgatewaysolutionsDatastorage
optimization

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

03 Business Report 2016

We will continue to take advantage of our network & storage technologies to build monitoring/management
systems for manufacturing processes in food factories and to provide mechanisms to prevent contamination
by foreign substances, which is a problem in the food industry. We will contribute to the food safety
through systems and support to deliver high-quality food more safely.

Network camera

Network video
recorderBusiness Report 201604

Business Segment
BCN AWARD 2016

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

(From January to December 2015)

Winner in 15 Categories
These prizes are awarded based on actual
aggregate sales at major electrical appliancestores across Japan.

Services

Peripherals
Network Products

Wireless LAN
Category

NAS
Category

14th consecutive year
14th win

3rd consecutive year
3rd win

Storage Products

Our network products make it possible to access the

Our storage products can store large amounts of data.

We have developed various services for individuals, corporations

Internet and share data via PCs, smartphones and otherWe provide products that achieve high reliability andand apartment building owners. We are expanding andExternal HDD
Category

RouterCategory

devices. Wi-Fi environments are becoming the norm in

performance. These include external hard disks equippedenhancing support to meet the needs of our users – from on-siteschool classrooms, tourist destinations and other locations.

with highly reliable hard disks designed to be suitable for

configuration to maintenance services. Our wireless LAN rental

8th consecutive year
13th win

13th consecutive year
14th win

Against this background, we strengthen the development

TV recording and NAS for corporate users equipped withservice “Apartment Wi-Fi” offers total support – fromof products to achieve stability in communications and toa function to enable network monitoring frompre-installation checks through to maintenance. Furthermore,

provide comfortable wireless LAN environments.

remote areas.

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

Hub Category

For example, we started the NAS/monitoring camera rental

15th consecutive year / 16th win

service “BITS Rental” for short-term use in building sites and17th consecutive year / 17th win

similar locations.

LAN Card Category

Print Server Category

16th consecutive year / 16th win
Recordable DVD Drive Category

8th consecutive year / 8th win

Numeric Keyboard Category

2nd consecutive year / 2nd win
USB Category
Wireless LAN router

External hard disk

Access point
for corporate users

Supplies and Accessories

1st winNAS for corporate users

Apartment Wi-Fi

Memory Category

7th consecutive year / 15th win*2
Expansion Interface Category

Memory Products

13th consecutive year / 13th win*3
PC Power Unit Category

We have a lineup of products that includes mice, keyboards

In addition to high-value-added products like USB memories

and other input devices, as well as other accessories

which can solve the capacity shortages of iPhone that havefor tablets. We are pouring our efforts into developing

run out of free space when you take lots of photographs or

6th consecutive year / 8th win

highly convenient products. These include USB chargers

videos, we are enhancing our development of products forequipped with a function to automatically determine

corporate users such as DDR4-compatible products with

13th consecutive year / 13th win

whether a device is an iPhone*1 or Android.

high reliability in industrial embedded applications.

5th consecutive year / 5th win
Drive Casing Category

Graphics Board Category*2: This is as the Melco Group. We have won this award
five years in a row for a total of five times as CFD sales.
*3: This is as the Melco Group. We have won this award
seven years in a row for a total of seven times as CFD sales.

GfK Japan Certified 2015

Finance
Low-noise mouse

USB charger

Lightningdevice-mounted
USB memory(From January to December 2015)

Winner in 2 Categories

Memory module

Our financial business that we started in the previous fiscal year
has been making steady progress in the investment management

Other Products

and financial instrument intermediary services under toughThese prizes are awarded to the
manufacturers with the greatest sales volume
share for the year.

We provide various groups of products with PC technology applied.

conditions around the world due to the downturn in the

These include “Kurouto Shikou,” a PC component brand that is popular

Network
Category

HDD
Category

economies of emerging nations and other factors.

8th consecutive year
8th win8th consecutive year
8th winamong users who build their own PCs, “Omoidebako,” a digital photo
album that allows users to digitally view their photos, and our music
library dedicated to the storage of high-resolution audio.

05 Business Report 2016

Omoidebako

High-resolution music library*1: iPhone is a trademark of Apple Inc. in the U.S.
Business Report 201606

Business Overview
Consolidated Net Sales by Segment

Consolidated
Net Sales

Peripherals

101,185(Unit: million yen)

95.3%

Finance
Services

82,55483,00080,040

Peripherals

Consolidated
Operating Profit

46.5%

3,512

3,500

2,811

Net Income
per Share

171.84171.93142.57(Unit: yen)

March
2015

March
2016

March
2017

(Forecast)Finance

−

1,142

1,550

1,500

Services

2,447

2,314

2,225

2,400

Peripherals

98,73879,09876,264

79,100

24.2%

12.1%

5.5%

32.0 % 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
6.663 billion yen (down 32.0% year on year).

Proportion of Sales by Region

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

2.1%

Japan

91.2%

North, Central &South America

3.8%

07 Business Report 2016

March
2014

38,764 37,261

March
2015

March
2016

20,771 17,887 19,391

March
2014

The market for expansion memory products for PCs shrank. In such an environment, our share of the market also fell slightly. As aresult, the number of units we sold was down 12.3% year on year and net sales were 4.227 billion yen (down 14.6% year on year).
The market in Japan for flash memory products aimed at individual consumers remained at a similar level to the previous fiscal year.
Under such circumstances, we strived to enhance sales of high-value-added products. At the same time, we resumed the sale of
popular priced products in order to maintain our share of the market while remaining mindful of profitability. As a result,the number of units we sold was up 16.4% year on year. However, net sales were 5.4 billion yen (down 3.5% year on year).

12,836

Supplies and Accessories

9,356

The smartphone market for supplies and accessories started to shrink during the fiscal year. Against this, we made the decision tosort out our lineup of low-profit product groups. As a result, the number of units we sold was down 7.9% year on year and net
sales were 5.563 billion yen (down 22.7% year on year).

EuropeIn our other products segment, sales of our digital photo album “Omoidebako” were strong. In our high resolution audio brand“MELCO,” we launched our products in Japan and the United States in the previous fiscal year. However in this fiscal year, we
promoted the launch of products in continental Europe, the United States, and the Asia Pacific Region. Nevertheless, the impact
from ending sales of other products included in this segment meant that net sales were 4.421 billion yen (down 6.1% year on year).

Services

2.8%(Unit: million yen)
Asia & Oceania

18,726

March
2014

March
2014

March
2015

March
2016

10,544 9,627

March
2015

7,196

March
2016

5,563

March
2015

March
2016

2.225 billion yen

6,540

4,705

4,421

March
2014

March
2015

March
2016

year on year

3.8 % decrease

We worked on significantly increasing sales of our wireless LAN rental service for apartment owners “Apartment Wi-Fi” –a solution we developed ourselves – in our service business. We were able to install this in 350% more locations year
on year. We have now installed this service in a cumulative total of 500 buildings. Furthermore, we started our
NAS/monitoring camera rental service “BITS Rental” for short-term use in construction sites and similar locations from thisfiscal year with a continuing focus on expanding our own new services. On the other hand, our optical line configuration
support business shrank due to an improvement in the penetration rate. Therefore, net sales were 2.225 billion yen (down
3.8% year on year). Operating income was 342 million yen (up 18.4% year on year). This was due to the improvement inour own high margin service ratio.

4,852

Europe2.9%

49,235

Other Products

Overseas Sales (Peripheral Equipment Operations)

Asia & Oceania

The market in Japan for network products aimed at individual consumers remained steady. Against this backdrop, we promoted theprovision of comfortable wireless environments that achieve stability in communications from the point of view of the user bytaking advantage of our technologies and expertise that we have built up since the dawn of the wireless network era. For example,
we launched high-value-added products capable of ensuring stable communications even when using many pieces of equipment at
the same time in wireless LAN repeaters for which the market is especially expanding. Nonetheless, the impact of the reduction in
our overseas operations meant that the number of units we sold was down 1.5% year on year. Net sales were 19.391 billion yen(up 8.4% year on year).

Memory Products

7.0%

6.663 billion yen(Unit: million yen)

The market in Japan for storage products aimed at individual consumers shrank to a certain extent overall. Under suchcircumstances, we strived to strengthen sales of high-value-added products and maintain our top share of the market with demand
for TV recording applications remaining steady. As a result, the number of units we sold was down 4.3% year on year, but net sales
were 25.72 billion yen (same as the previous fiscal year). We worked to enhance products with high performance and highreliability aimed at corporate users in our NAS products. Nevertheless, the market in Japan aimed at individual consumers shrank
and we saw a drop in overseas sales due to a reduction in our unprofitable overseas operations from structural reforms. Therefore,
the number of units we sold was down 15.8% year on year and net sales were 11.541 billion yen (down 11.6% year on year).

Network Products

95.29

March
2014

3.6 % decrease

Our net sales of peripheral equipment surpassed our performance year on year. This was because we maintained the top
market share and strengthened sales of high-value-added products in the network segment even though personal
consumption remained stagnant. However, we fell short of our performance year on year in our other segments due tovarious reasons, such as shrinking markets. As a result, our net sales were 76.264 billion yen (down 3.6% year on year).
On the other hand, operating income increased year on year by 11.6% to 3.252 billion yen. This was thanks to an
improvement in gross profits, hard work by our sales personnel and the reduction in selling, general andadministrative expenses.
We present the situation for our main products below.
Storage Products

4,354(Unit: million yen)

76.264 billion yen

year on year

9,797

7,448

6,663

2,110
3,197

6,425

1,576
2,215

4,489

March
2014

1.9%

1,100
2,600

2,870

March
2015

2,500

March
2016

Finance

6,200

March
2017

1.55 billion yen

year on year

35.7 % increase

We have been making steady progress with our financial business despite the fact that the situation around the world istough due to the downturn in the economies of emerging nations and other factors. Therefore, net sales were 1.55 billion
yen (up 35.7% year on year) and operating income was 869 million yen (up 66.4% year on year).

(Forecast)Business Report 201608

Special Feature

Products DNA

Genealogy of Manufacturing

Protecting the audio culture of Japanby a fusion with PC technology

Development of wireless LAN for
schools: 50 tablets prepared

Customer support has become
the new weapon of Buffalo

Omoidebako: Rated as having
a excellently good design

DELA N1 Series

Access Point for Corporate Users

Digital Photo Album

Customer Support

Masakazu Araki,
President & CEO of Melco Syncrets Inc.

Akihiko Isohata, Masaya Tanigawa and Daiki Watanabeof the Network Division

Masayuki Nemoto of the New Business Department andNaoki Furuhata of the Design Section

Toyoaki Shimada, Yumiko Ao and Mari Yatsurugiof the CS Section

It was around 2007 that network audio was introduced
to the world of pure audio. At first, there were hopesthat this would exceed CDs with its convenience andsound quality. However, people were unable to accept
the usage method of NAS and so these hopes faded.
This did not take off in Japan even though there was ashift to digital products overseas. There was a decline inaudio culture with that situation continuing.
The starting point for Buffalo was as an audio
manufacturer. Therefore, we wanted to somehow put
a stop to that. We felt we would be able to drive thisnew culture if digital data would become the source ofaudio. We developed “DELA” in accordance with therules of pure audio: Beautiful appearance, easy-to-use
operability and high output quality of signals to
influence sound quality. We packed in lots of ingenious
ideas unique to Buffalo that started with audio in both
hardware and software.

The necessity for wireless LAN in schools is rising every
year, such as with the use of tablets in lessons.
Nevertheless, there have been issues due to different
methods of use even with environments built using
access points for corporate users. Accordingly, when
we were developing a model for education, we first
visited schools and boards of education and started byasking about the environment on the front-line ofteaching. We purchased 50 educational model tablets
and then carried out development in order to solve thechallenges on the front-line of teaching. We were able
to solve the problem in communications of there being
delays due to loads when connecting to devices
simultaneously. Furthermore, we provided support tomultiple communications with a (fair communications
control) function to distribute communications inregards to existing constraints that only allowed for
one-to-one communications. This product is a tool andinfrastructure for schools. What made us the happiest
is to be told that this product allows lessons toproceed smoothly.

It is four years since the launch of the first generation.
“Omoidebako” has obtained civic rights as a tool toeasily store and look back on photographs and videos.
We have made the fourth generation even morecompact and given it higher performance throughtablet-based hardware. We have worked on developing
its design under the key phrase of a “solid feeling.”
How could we produce this “solid feeling” without
destroying the “world view of Omoidebako” developedwith customers different from conventional productusers? We made a thorough commitment right down
to the fine details – the edge processing, materials andshape of the case. We also moved the power switchthat had been on the front to the top of the device inorder to ensure space for our logo. We chose the bestsolutions – even changing the design – in order toprotect the “world view of Omoidebako.” The fourth
generation Omoidebako that we completed like thishas now won the “Good Design Award.” Omoidebako
received this award after being rated as having a total
design – from the product concept to the usage
method – in addition to the casing and packaging.

More than 700 products were launched in FY2014.
There were many items and the content of the inquiries
we received at the call center also became more
complicated. We incorporated “support with videos”
to improve this situation. We produced about 140
videos in two years by shooting and editing with thefeeling of being a customer. The number of problems
solved almost doubled compared with our FAQs.
Moreover, we investigated the reason why ourcustomers were not able to find the help desk they
were looking for with our automatic voice guidancesystem. We learned from our analysis of the audio datathat both “wireless LAN” and “Wi-Fi” expressed the“Internet” depending on the customer. We repeatedly
revised this misunderstanding in expressions to make
improvements. These efforts led us to winning the“Contact Center Awards 2015: Best Technology
Award,” the “HDI Support Center Certification” and“Support Portal Certification.” We think that theseresults will lead to differentiation from our rivals.

Omoidebako
PD-1000
DELA N1Z

09 Business Report 2016

WAPM-1750D

Business Report 201610

Financial Statements

Consolidated Balance Sheet
Item(Unit: million yen)

Consolidated Income Statement (Unit: million yen)

Fiscal Year
Fiscal Year
Ended March 31, Ended March 31,
2016
2015

Fiscal Year
Fiscal Year
From April 1, 2015 From April 1, 2014
to March 31, 2016 to March 31, 2015

AssetsAssetsCurrent assets

60,47665,579Fixed assets

4,506

3,436

Tangible fixed assets

619

587

4.033 billion yen compared to the end of theIntangible fixed assets

968

1,323

previous consolidated fiscal year. Current assets

2,917

1,524

64,982

69,015Investments, etc.
Total assets

Total assets for the fiscal year ended March 31,

Non-operating income

1,000

999

billion yen. This change was mainly due to a

Non-operating expenses

60

39

5,294

4,471

1

2

144

33

Net income before taxes
and other adjustments

5,152

4,440

Income, resident andenterprise taxes

705

1,421

Income taxes –deferred

711

148

3,735

3,166

3.74 billion yen decrease in cash and deposits,

Extraordinary income

securities, and a 1.773 billion yen decrease in

Extraordinary loss

Total liabilities

21,17923,650billion yen – an increase of 1.07 billion yen.
This change was mainly due to a 1.442 billion
yen increase in investment securities.

Shareholders’ equity
1,000

1,000

774

774

Retained earnings

45,993

43,59031, 2016 were 21.179 billion yen – a decrease

Treasury stock

3,831

61

of 2.471 billion yen compared to the end of the

43,93645,303

Deferred gains orlosses on hedges
Foreign currencytranslation adjustments
Remeasurements ofdefined benefit plans
Total accumulated othercomprehensive income

Liabilities
Total liabilities for the fiscal year ended Marchprevious consolidated fiscal year. Current
liabilities were 18.671 billion yen – a decreaseof 2.605 billion yen. This change was mainly
due to a 2.437 billion yen decrease in notes

50
233
40

211
32
184
2

133

61

Total net assets

43,80345,364

Total liabilities andnet assets

64,982

69,015

Ordinary income

accounts receivable, a 3 billion yen increase ingoods and products. Fixed assets totaled 4.506

190

71,128

totaled 60.476 billion yen – a decrease of 5.103

2,373

Net unrealized gains(losses) on other securities

64,884

3,512

2,507

Accumulated othercomprehensive income

62,537

4,354

Long-term liabilities

Total shareholders’ equity

Cost of sales

Operating income

21,276

Additional paid-in capital

82,554

14,15818,671

Common stock

80,04013,1482016 were 64.982 billion yen – a decrease of

Current liabilities

Net assets

Net sales

Selling, general andadministrative expenses

a 3.171 billion yen decrease in notes andLiabilities

Item

POINT

and accounts payable. Long-term liabilities
totaled 2.507 billion yen – an increase of 133
million yen.

Net Assets
Total net assets for the fiscal year ended March
31, 2016 were 43.803 billion yen – a decreaseof 1.561 billion yen compared to the end of theprevious consolidated fiscal year. This change
was mainly due to the acquisition of net
income attributable to parent company
shareholders of 3.735 billion yen, dividend

Total Assets (Unit: million yen)
Capital to Asset Ratio (Unit: %)Net income attributable toparent company shareholders

67,475

58.6

March
2013

63.8

March
2014

69,015
65.7

March
2015

64,982
67.4

March
2016

Consolidated Shareholders’ Equity (Unit: million yen)
Consolidated Return on Equity (Unit: %)41,696

43,07145,36443,803

Consolidated Cash Flow Statement (Unit: million yen)
Item
Cash flows fromoperating activities

Fiscal Year
Fiscal Year
From April 1, 2015 From April 1, 2014
to March 31, 2016 to March 31, 2015

8.5
3.4

6,108

4.9

7.0

2,956

Cash flows frominvesting activities

4,662

3,465

Cash flows fromfinancing activities

5,102

889

Effect of foreign exchange ratechanges on cash and cash equivalents

83

241

Net increase (decrease) incash and cash equivalents

3,740

1,156

Cash and cash equivalents atthe beginning of the period

8,404

9,561

Cash and cash equivalents
at the end of the period

4,664

8,404

March
2013

March
2014

March
2015

March
2016

payments of 1.332 billion yen and theacquisition of 3.769 billion yen intreasury stock.

11 Business Report 2016

For detailed information:

MELCO HOLDINGS IR

Searchmelco-hd.jp/ir/top

Business Report 2016

12

Company Information

Stock Information(Current as of March 31, 2016)Japan
CFD SALES INC.

MELCO HOLDINGS INC.
Company Name

Melco Holdings Inc.

Date of
Incorporation

July 1, 1986

Capital Stock

1 billion yen

Business
Activities

Melco Holdings Inc. is a pure holding company that
holds the shares of the group’s operating companies.
Governs the operating companies in our group by
providing support for business activities and offering
managerial guidance.

Board Members(Current as of June 17, 2016)

Chairman and Representative Director

Makoto Maki
President and CEO

Number of
Employees

Non-consolidated: 20
Melco Group consolidated: 741

Number of Group
Companies

17 (9 in Japan; 8 overseas)

Hiroyuki Maki
Executive Vice President

Comprehensive supplier of PC parts
BUFFALO IT SOLUTIONS INC.
Construction, execution and maintenanceof network infrastructure

Senior Managing Director

Kuniaki Saiki
Director

Iwao Tsusaka
Hiroyuki Minoura
Senior Corporate Auditor

Masanao Tsuzuki
Corporate Auditor

Takami Aoyama

BUFFALO MEMORY CO., LTD.
Development and sale of electronic components
and electronic application products
BIOS CORPORATION
Development, manufacture and sale ofstorage-related products

Corporate Auditor

Akio Oguri

MELCO FINANCIAL HOLDINGS INC.
Overall management of financial businesswithin the Melco Group

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

454(Current as of June 17, 2016)

Kuniaki Saiki
Executive Vice President

Tamio Matsuo

6,497

Major Shareholders (Top 10)
Shareholder Name

Investment management and financial
instrument intermediary services

Taiji Watanabe

Executive Managing Director

Takehiko Inoue
Director

Hironori Seki
Director

Hideo Fukuda
Director

Hidekazu Ogawa
Director

Overseas<USA> BUFFALO TECHNOLOGY (USA), INC.
Sale of network-related equipment andPC peripherals

Corporate Auditor

Takeyasu Oshima

Number of
Shares Held

Shareholding
Ratio(1,000 Shares)(%)

Makis Inc.

8,485

41.7

Makoto Maki

630

3.1

Hiroyuki Maki

617

3.0

Daisuke Maki

617

3.0

The Bank of Nagoya, Ltd.

501

2.5

The Melco Foundation

500

2.5

State Street Bank and Trust
Company436

2.1

State Street Bank and Trust
Company 505103

434

2.1

The Bank of New York 133522

389

1.9

Cbny-Government of Norway

344

1.7

MELCO INVESTMENTS INC.

Executive Managing Director

Haruyuki Takefuji

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
been rounded off to the first decimal place.

<Europe> BUFFALO EU B.V.
Sale of network-related equipment andPC peripherals

Business Locations
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

Kansai Sales 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
Miyagino Center Bldg., 4-5-22 Tsutsujigaoka, Miyagino-ku, Sendai, 983-0852, Japan
TEL: 81-22-291-0311
FAX: 81-22-298-9470

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 2016

Number of
Shareholders

22,237,873(Includes 1,870,597 shares of treasury stock)

Director

Company Name

Tohoku Sales Office

Number of Shares
Outstanding

Tamio Matsuo

BUFFALO INC.

Headquarters

Stock<China> BUFFALO ASIA LTD.
Product procurement, productmanagement and international logistics<Taiwan> BUFFALO TECHNOLOGY (TAIWAN) INC.
Sale of network-related equipment andPC peripherals<Singapore> MELCO CAPITAL PTE. LTD.

S‌ hareholding Distribution byType of Shareholder (Unit: thousand shares)
Treasurystock
1,870 (8.4 %)Individuals andothers
4,674 (21.0 %)Foreigncorporations
4,244 (19.1 %)Financial
institutions
2,007 (9.0 %)Number ofsharesoutstanding
22,237

Financial instruments
business operators
252 (1.1 %)Other Japanese
corporations
9,188 (41.3 %)Investment management
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 201614