Business
Report 2020
April 1, 2019 to March 31, 2020

To Our Stakeholders

I would like to extend my deepest sympathies to all those who wereaffected by the advent of COVID-19, as well as their families and everyone
affected by the spread of the pandemic. I would also like to express mysincere gratitude to medical staff and all the heroes who are working hardto prevent the spread of infectious diseases.
In 2020, the Melco Group celebrated our 45th anniversary. Furthermore,
I would like to express my heartfelt gratitude for the continued support of
all our stakeholders. Thanks to your patronage, we were also able to hold a
Buddhist memorial service to observe the third anniversary of the death of
our founder Makoto Maki, who passed away in 2018.
We had positioned the fiscal year ended March 31, 2020 as a “year ofcompetition.” We have promoted internal reforms as we seek to become acorporation indispensable to society even in times of population decline andultra-aging. It was also a year in which the transformation of our businessstructure was completed based on the concept of “value chain”.
In the year ending March 31, 2021, the impact of the spread of
COVID-19 on the global economy will make it necessary to implement
major changes—not only in economic activity, but also in social activity
itself. As we face unprecedented hardship, we hold true to our founder’sphilosophy. We took the Japanese government’s request seriously andworked to expand telecommuting. Moving forward, while continuing toprevent the spread of COVID-19 and streamline operations, the entire
Group will devote ourselves to supporting the changes in our customers’social lives through the three pillars of IT, food, and finance. I look forward
to your continued support and patronage.


Hiroyuki Maki
President and CEO

MELCO HOLDINGS INC.

June 2020

Melco Values
A Lasting Company

Rapid Response to Change

We earnestly study and put into practice the teachings of ourpredecessors, and continually look to the future with the aimof achieving perpetual growth for the Melco Group alongwith all those who share our Melco values.

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.

Customer-Oriented

Solidarity

We always look at things from the perspective of ourcustomers to continue to provide products and services thatplay a part in the realization of even richer lives. We takepleasure in contributing to the development of society
through our wisdom and hard work.

We, in a spirit of fairness and openness, along with people
who share high aspirations and passions, will work together
as one to overcome any difficulties and achieve our goals.

1 Business Report 2020

Policy

Promoting the construction of a robust businessportfolio that can withstand sudden changes inexternal environments and realize permanent
growthCOVID-19 has created an evenmore uncertain economic situation
In the Japanese economy in the fiscal year underreview, consumer spending recovered gradually,
despite the continued uncertainty regarding thefuture outlook. From the beginning of 2020,
conditions became even more uncertain due to theimpact of the spread of COVID-19 on the global
economy.
In the digital consumer electronics industry, thePC market was strong due to demand caused by theend of support for basic software. The flat screen TV
market was also strong due to replacement demandand last-minute demand before the consumption tax
increase; furthermore, there was little backlash anddemand remained stable even after the increase. In
the smartphone/tablet market, in which demand had
seemed to have rounded off, demand becamefavorable in the tablet market. In the peripheral
equipment market, price reductions have escalated
due to intensifying competition.
Conversely, in the raw noodle industry, thehousehold market increased slightly due to theimpact of product price revisions and the increase of
in-home dining opportunities as the result of efforts
to prevent the spread of COVID-19. Although there
is demand in the commercial market due to a labor
shortage, the market was similar to the previous year
due to the impact of factors such as theconsumption tax increase and the shortening ofbusiness hours for eating out due to work-stylereforms.

Providing high value-added
products and services which will
overcome market competition
In IT-related business, in order to respond
appropriately to the intensifying competition in the
peripheral equipment market, we worked to expand
sales of high value-added products. For example, welaunched AirStation, the world’s first*1 home Wi-Fi*2
6 router. In the service field, we expanded services
through measures such as adding options for Buffalo
Regular Data Recovery Service and opening a
recovery center in Shin-Yokohama. In the foodbusiness, we worked to expand sales of productsthat are healthy, convenient, and portioned inindividual sizes. For example, under the Kenbi noodle
brand, we released the market’s first*3 chilled
noodles which are a food with the functional claimof suppressing increases in the blood sugar level
after meals, and we strove to increase sales of Ryusui
noodles, Kenbi noodles, and frozen noodles forcommercial use.
As a result, sales were 114,888 million yen (up5.4% year on year), operating income was 4,137
million yen (down 30.6% year on year), ordinary
income was 4,914 million yen (down 24.6% year onyear) and net income attributable to parent company
shareholders was 3,139 million yen (down 17.4%
year on year) in our results in the fiscal year underreview.
*1 ‌As of October 5, 2019 (certification acquisition date); according toresearch by the Melco Group.
*2 ‌Wi-Fi is the registered trademark of Wi-Fi Alliance.
*3 ‌As of May 2019; according to research by the Melco Group.

Business Report 2020 2

Policy

Continue to Promote Management
That Generates Profits Without
Relying on Sales Growth
The environment surrounding IT-related business
continues to remain severe. Challenges have also
been emerging in the food business (e.g. a sudden
rise in raw ingredient prices/energy costs and ashortage of labor) that need to be addressed.
Furthermore, there are concerns regarding theoutlook of domestic and overseas economic
conditions and corporate activities due to the global
spread of COVID-19.
Under such circumstances, we are pushing
forward with a management structure that produces
profit without relying on product sales expansion.
We are striving to continue the expansion ofApartment Wi-Fi installations and to increase thenumber of Buffalo Regular Data Recovery Service
orders received within IT-related business. We arealso working to quantitatively increase the sales offrozen noodles for commercial use in the growing
market and to expand high value-added products
such as Ryusui noodles and Kenbi noodles in thefood business. We will also proactively and speedilystrengthen our supply chain, reduce loss costs,
expand and streamline our service bases, and engage
in M&As to accelerate business growth. Furthermore,
we will solve challenges by effectively utilizing theassets of our group from a company-wide
perspective.

Consolidated Net Sales (Unit: million yen)

80,04074,55872,319

March
2016

March
2017

March
2018

108,993

114,888

March
2019

March
2020

Consolidated Ordinary Income (Unit: million yen)
Consolidated Ordinary Income Margin (Unit: %)
6,520
5,294

8.7

6,359
8.8

6,520
4,914

6.6

6.0
4.3

March
2016

March
2017

March
2018

March
2019

March
2020

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

3,735
4.7

4,389
5.9

5,164
7.1
3,802
3.5

3,139
2.7

March
2016

March
2017

March
2018

March
2019

March
2020

Net Income per Share (Unit: yen)284.36187.98229.88173.61

171.93March
2016

3 Business Report 2020

March
2017

March
2018

March
2019

March
2020

Business Segment

The entire Melco Group will support changes incustomers’ social lives through the threebusiness system of IT, food, and finance.
IT-Related BusinessWe provide various products with a focus on digital consumer electronics and computer peripherals. These include
network products (e.g., Wi-Fi), external hard disks for PC/TV recording, and storage products such as NAS for corporate
users that allows device monitoring and operation over a network. In addition to these, we also offer products that add
richness to everyday life. These include our Omoidebako digital photo albums and Digital Music Library devices
dedicated to high resolution audio. We also offer various services and solutions for personal customers and corporate
users alike, including our Apartment Wi-Fi for rental properties, data recovery services for storage products, and theremote management service Kiki Navi.

Wi-Fi router

Access point for corporate users

External hard disk

NAS for corporate users

Buffalo Regular
Data Recovery Service

Digital music library

Have you lost your HDD data?
Try our data recovery service
before giving up!
Omoidebako

Kiki Navi

Apartment Wi-Fi

Data recovery service

Business Report 2020 4

Business Segment

IT-Related Business

Mid-Term Vision “Gateway 2.0”
Providing a safe network for
all of society in 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

Public gateway
solutionsBCN AWARD
2020
Winner in10 Categories(January to December 2019)

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

Data storage
optimization

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

Wireless LAN
Category

NAS Category

Hub Category

LAN Card Category

18th consecutive year
18th win

7th consecutive year
7th win19th consecutive year
20th win

21th consecutive year
21th win

External HDD
Category

Router Category

12th consecutive year
17th win

17th consecutive year
18th win

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

*1: ‌This is as the Melco Group. We have won this award
nine years in a row for a total of nine times as CFD
sales.
*2: ‌This is as the Melco Group. We have won this award
eleven years in a row for a total of eleven times as
CFD sales.

5 Business Report 2020

Memory Category
11th consecutive year / 19th win*

1

Expansion Interface Category
17th consecutive year / 17th win*

2

PC Power Unit Category
9th consecutive year / 9th win

Drive Casing Category
10th consecutive year / 12th win

Food
We offer a rich lineup of products including udon noodles, soba noodles, Chinese noodles, fried noodles, and pasta, as
well as Ryusui noodles that can be eaten just by unraveling them with water without boiling and Kenbi noodles, ahealth value product that was released in autumn 2019. We are deploying products for family use centered onrefrigerated raw noodles and frozen noodles, and products for commercial use centered on frozen noodles. We are also
creating new possibilities in the noodles market by continually approaching products from the viewpoint of ourcustomers including attractive noodle dishes and new ways of eating noodles in addition to providing noodles as aningredient.

Keyword forour development: 3K
Kenko
Kenbi Noodles
Udon noodles thatsuppress increases in the
blood sugar level aftermeals

Kenbi Noodles
Soba noodles thatsuppress increases in the
blood sugar level after
meals

Frozen Kenbi Noodles
Inaniwa-style thin udon
noodles that suppress
increases in the blood
sugar level after meals

Ryusui Noodles
Soba (serves two)

Ryusui Noodles
Chilled ramen noodles(soy sauce flavor)(serves two)

Stone milled soba noodles
using ingredients
produced in Hokkaido(health)Kamben(convenient)

Koshoku(individual use)

FinanceThis business is contributing to the earnings stabilization in the Melco Group through investment management andfinancial instrument intermediary services.

Business Report 2020 6

Business Overview

Consolidated
Net Sales

Consolidated
Operating Income

Net Income
per Share(Unit: million yen)

(Unit: million yen)

(Unit: yen)

IT-Related
FinanceFood

114,888108,993

5,573
74,55880,0404,354

5,959
72,319

5,319
4,137

284.36187.98229.88173.61

171.93

March 2016

March 2017

March 2018

March 2019

March 2020

78,48873,00970,21070,78378,557

Food

—

—

—

35,90034,690Finance

1,550

1,547

2,107

2,306

1,640

IT-Related

7 Business Report 2020

Consolidated Net Sales by Segment/Segment Income
IT-Related(Unit: million yen)

70,78378,557

Net Sales

2,738

Segment Income

Net Sales

68.4%(Unit: million yen)

3,822

78,55711.0%

million yen

increase year
on year

March
2019

March
2020

2,738
28.3%

million yen
decrease year
on year

March
2019

March
2020

In the market for corporate users, we worked to improve the support level and efficiency of the remote management service
Kiki Navi. Meanwhile, in the market for personal customers, we strove to expand sales of high value-added products,
including the release of the AirStation, which is the world’s first* certified Wi-Fi 6 router for home use. There was also
increased demand for web cameras, headsets and Wi-Fi related products required for telecommuting. However, due tointensifying competition in the market, profits declined despite the number of units sold that exceeded the previous year’slevel. In the service field, we expanded services through measures such as adding new options to Buffalo Regular Data
Recovery Service and opening a recovery center. As a result, sales were 78,557 million yen (up 11.0% year on year) andsegment income was 2,738 million yen (down 28.3% year on year).
*As of October 5, 2019 (certification acquisition date); according to research by the Melco Group.

Food(Unit: million yen)

35,90034,690Net Sales

1,990
Segment Income

Net Sales

30.2%(Unit: million yen)

34,690
3.4%

million yen

decrease year
on year

1,990
73.6%

1,146

million yen

March
2019

March
2020

increase year
on year

March
2019

March
2020

In terms of sales, home-use products decreased due to sluggish sales of seasonal products and reviews of unprofitableproducts. We endeavored to enhance sales through measures such as sales of the Kenbi noodle brand, which is the first*
product in the chilled noodle market to be a food with functional health claims; specifically, suppressing increases in the
blood sugar level after meals. Sales of commercial-use products were strong due to heightened efforts aimed at eating
outside of the home, such as school lunches and company lunches. In terms of profit, we saw the effects from the productprice revisions, review of unprofitable products and cost reductions. As a result, sales were 34,690 million yen (down 3.4%
year on year) and segment income was 1,990 million yen (up 73.6% year on year).
*As of May 2019; according to research by the Melco Group.

Finance(Unit: million yen)

(Unit: million yen)

2,306
Net Sales
Net Sales

1.4%

1,640
28.9%

1,334
1,640

million yen
decrease year
on year

Segment Income

570
57.3%

570

million yen

March
2019

March
2020

decrease year
on year

March
2019

March
2020

The difficult operating environment continued, resulting in sales of 1,640 million yen (down 28.9% year on year) andsegment income of 570 million yen (down 57.3% year on year).

Business Report 2020 8

Topics

Initiatives to prevent the spread of COVID-19

Promoting the spread oftelecommuting and the use of
remote conference systems
As an initiative to prevent the spread of
COVID-19, our basic policy from February2020 is to avoid face-to-face contact withpeople and contact in closed spaces. In
addition to hand washing, practicing
etiquette when coughing, and other basic
measures to prevent infection in the officeand during commuting, we have promoted
telecommuting by striving to suppress
unnecessary and non-urgent meetings andbusiness trips.
From April on, in accordance with the
emergency declaration by the Japanese
government, we formulated basic
guidelines for fully cooperating with thegovernment policy of reducing humancontact in designated areas by at least
70% and by 80% as much as possible.
Furthermore, we have taken measures toensure business continuity, such as
expansion of telecommuting, social
distancing while working in the office, andthe use of remote conference systems.
We believe that the experiences ofGroup employees in telecommuting can beutilized in developing telecommutingrelated products, and we will continue tosupport the telecommuting environmentsof our customers.

Reforming the work-style of information system
personnel and eliminating labor shortages

Providing services for reducing theburden of equipment maintenanceand management
In the fiscal year ended March 31, 2020,
based on the concept of reforming thework-style of information system personnel
and eliminating labor shortages, we started
providing Kiki Navi, Buffalo’s remotemanagement service which uses theInternet to connect managers with devices
installed in remote locations.
Kiki Navi is provided free of charge forthe corporate products AirStation Pro, a
Wi-Fi related product, and TeraStation, ahigh capacity NAS. Kiki Navi makes remotemonitoring of the status of compatible
devices possible by the company (Sler)which maintains and manages the target
products, and by corporate users who
perform management in their company.
Notification can be received immediately if
a failure occurs. Additionally, since simple
maintenance operations can be performed
remotely, some operations that required
on-site visits can now be handled via theInternet. This reduces the number of work
processes and enables faster response to
failure.

WebcamWi-Fi related

9 Business Report 2020

HeadsetKiki NaviTeraStation

AirStation Pro

Prevent information leakage
when disposing of hard disks

Contributing to society by creating products that
respond to health awarenessIn addition to degaussers, we alsooffer equipment for physicaldestruction.

First in the chilled noodle market!*
Development of foods withfunctional claims

Currently, there seems to be an endlessseries of personal information data leaks
from local governments and corporations.
When disposing of a hard disk that storespersonal information data, our subsidiary
Advanced Design Corp. offers equipmentthat dismantles hard disks and completely
degausses them (data erasure) before youreyes, without having to rely upon third
parties. Due in part to the impact of news
featuring incidents in which personal
information data was leaked at the end of
2019, there was an increase in inquiries
from customers during the past year.
Our conventional magnetic datadegaussing series MagWiper features alineup that includes models certified by the
U.S. National Security Agency (NSA).
MagWiper uses magnetism to erase data
through simple operation. In January 2020,
we launched the new series Storage
Crusher, which erases data throughphysical destruction. The visible destructionof data media provides peace of mind. In
response to diverse customer needs, we
provide proposals to prevent information
leakage when disposing of computers, harddisks, and SSDs.

In recent years, the increasing number ofpatients with lifestyle-related diseases, thedifference between the average life
expectancy and the healthy life expectancy,
and the increase in national medical
expenses have become major social issues.
Based on the concept of “delicious foods
for supporting a healthy diet,” Shimadaya
is working to create health-conscious
products.
In the fiscal year ended March 31, 2020,
we launched Kenbi noodles, a new brand of
noodles for household and commercial
consumption. Kenbi noodles are aimed atpeople who are concerned about theprevention of lifestyle-related diseases andother health issues. We are developing
Kenbi noodles as a food with functional
claims that suppresses increases in the blood
sugar level after meals, and as a wellness
product with reduced sugar and salt.
In particular, as a food with functional
claims, Kenbi noodles have the same greatflavor as conventional noodles and can
suppress the increase in the blood sugar
level after meals. This means that it can beeaten with peace of mind by people whoare concerned about their blood sugar
levels.
*As of May 2019; according to research by the Melco Group.

MagWiperStorageCrusher

Kenbi noodles

Business Report 2020 10

Financial Statements

Consolidated Balance Sheet
Item

Fiscal Year Ended
March 31, 2020

(Unit: million yen)

Fiscal Year Ended
March 31, 2019

AssetsCurrent assets

60,69767,229Fixed assets

18,173

21,446

Tangible fixed assets

12,452

14,264

Intangible fixed assets

981

1,068

4,738

6,113

78,87088,675Current liabilities

25,40828,510Long term liabilities

5,201

5,397

Total liabilities

30,60933,907

Investments, etc.
Total assets

Liabilities

Net assets

POINT
AssetsTotal assets for the fiscal year ended March 31, 2020
were 78,870 million yen – a decrease of 9,805 million
yen compared to the end of the previous consolidated
fiscal year. Current assets totaled 60,697 million yen– a decrease of 6,532 million yen. This change wasmainly due to a 12,400 million yen decrease inmarketable securities, a 3,428 million yen increase in
cash and deposits, a 1,348 million yen increase ingoods and products and a 1,276 million yen increasein raw materials and supplies. Fixed assets totaled
18,173 million yen – a decrease of 3,272 million yen.
This change was mainly due to a 1,811 million yen
decrease in tangible fixed assets and a 1,374 million
yen decrease in investments, etc.

Liabilities

Capital

1,000

1,000

Capital surplus

4,404

4,411

Retained earnings

59,49557,441

Treasury stock△16,192△7,973

Total shareholders’equity48,70654,878Net unrealized gains(losses) on othersecurities

55

146

Total liabilities for the fiscal year ended March 31,
2020 were 30,609 million yen – a decrease of 3,298
million yen compared to the end of the previous
consolidated fiscal year. Current liabilities were
25,408 million yen – a decrease of 3,102 million yen.
This change was mainly due to a 5,000 million yen
decrease in short-term debt, a 357 million yen
decrease in accrued expenses, a 1,913 million yen
increase in notes and accounts payable and a 421
million yen increase in accounts payable. Long term
liabilities totaled 5,201 million yen – a decrease of
195 million yen. This change was mainly due to an
899 million yen decrease in long-term debt, a 173
million yen increase in defined benefit plans and a
492 million yen increase in other long-term liabilities.

Deferred gains orlosses on hedges

1028

Total net assets for the fiscal year ended March 31, 2020

Shareholders’ equity

Accumulated othercomprehensive income

Foreign currencytranslation
adjustments

Net Assets
were 48,260 million yen – a decrease of 6,507 million
yen compared to the end of the previous consolidated

△239

△160

fiscal year. This change was mainly due to an 8,219
million yen decrease resulting from the acquisition oftreasury stocks, a 146 million yen decrease in

Remeasurements ofdefined benefit plans

△291

△144

Total accumulated
other comprehensive
income△465△130

Subscription right toshares19

19

Total net assets

48,26054,767

Total liabilities and net
assets

78,87088,675Note
1. We have given the listed amounts by rounding down to the nearest million yen.

11 Business Report 2020

remeasurements of defined benefit plans and a 2,054
million yen increase in retained earnings.

Consolidated Income Statement(Unit: million yen)
Fiscal Year
From April 1, 2019
to March 31, 2020

Fiscal Year
From April 1, 2018
to March 31, 2019

Net sales

114,888108,993

Cost of sales

86,94380,239Selling, general andadministrative expenses

23,807

22,794

Operating income

4,137

5,959

Non-operating income

971

1,083

Non-operating expenses

194

522

Ordinary income

4,914

6,520

Extraordinary income

594

249

Extraordinary loss

946

1,029

Net income before
taxes and otheradjustments

4,563

Income, resident andenterprise taxes

Item

Fiscal Year
From April 1, 2019
to March 31, 2020

Fiscal Year
From April 1, 2018
to March 31, 2019

Cash flows from operating
activities

6,549

5,577

Cash flows from investing
activities

12,257△2,083

Cash flows from financing
activities△15,469△710

Effect of exchange ratechanges on cash and cash
equivalents

△10

△24

5,741

Net increase (decrease) incash and cash equivalents

3,327

2,758

1,338

1,692

Cash and cash equivalents atthe beginning of the period

7,117

4,344

85

245

—

13

3,139

3,802

10,444

7,117

Income taxes –deferred
Net income
attributable to parent
company shareholders

Consolidated Cash Flow Statement (Unit: million yen)
Item

Increase of cash and cash
equivalents after
consolidation
Cash and cash equivalents
at the end of the period

Total Assets (Unit: million yen)
Capital to Asset Ratio (Unit: %)88,67578,87067,331
66.3

66,018
70.4

61.7

61.2

For detailed information:

MELCO HOLDINGS IR
March
2017

March
2018

March
2019

March
2020

Searchmelco-hd.jp/ir/top

Notes
1. ‌We have given the listed amounts by rounding down to the nearest millionyen.
2. ‌(Reference) We have given amounts for which we have retrospectively
applied the changes to our accounting policy in line with the revision to
the accounting standards for the listed amounts in FY March 2018.

Business Report 2020 12

Company InformationJapan
MELCO HOLDINGS INC.
Company
Name

Melco Holdings Inc.

Board Members (Current as of June 30, 2020)
President and CEO

Full-time Corporate Auditor

Date of
Incorporation

July 1, 1986

Hiroyuki Maki

Masanao Tsuzuki

Executive Vice President

Full-time Corporate Auditor

Capital Stock

1,000 million yen

Tamio Matsuo

Takehiko Inoue

Business
Activities

Pure holding company of Melco Group.
Melco Holdings Inc. holds the shares of the group’s
operating companies. Governs the operating companies inour group by providing support for business activities andoffering managerial guidance.

Director

Auditor

Norio KinoshitaKazuo Ueda

Director

AuditorIwao Tsusaka

Shinji Shibagaki

Director

Auditor

Tadashi Nakamura

Masashi Kitamura

Number of
Employees

Non-consolidated: 32
Melco Group consolidated: 1,800

Number of Group 22 (17 in Japan; 5 overseas)
Companies

Director

Kenichi Fukuhara
Director

Ichiro Hirata

BUFFALO INC.
Company
Name
Date ofFoundation

Buffalo Inc.

Date of
Incorporation

August 5, 1978

Capital Stock

320 million yen

Business
Activities
Number of
Employees

May 1, 1975

Development, manufacture and sale of digital home
appliances and PC peripherals
Data recovery service
525

Board Members (Current as of June 30, 2020)
President and CEO

Director

Hiroyuki Maki

Daisuke MakiManaging Director

Director

Taiji Watanabe

Kazunori Yokoi

Managing Director

Director

Manabu Wada

Takashi Nishiwaki

Director

Director

Ryousuke Yoshizaki

Katsumi Iwasaki

Director

Director

Masaya Ishimaru

Satoshi Inaba

Director

AuditorManabu Yano

Masanao Tsuzuki

Shimadaya Corporation
Company
Name

Shimadaya Corporation

Date ofFoundation

July 20, 1931

Board Members (Current as of June 30, 2020)
President and CEO

Director

Norio Kinoshita

Ryuta Sugiyama

Senior Managing Director

Director

Shinichiro Soma

Tamio Matsuo

Managing Director

AuditorNobuyuki Obara

Mitsuru AraiManaging Director

AuditorYu KatoDate of
Incorporation

March 4, 1949

Capital Stock

1,000 million yen

Business
Activities

Manufacture and sale of noodles and related foodproducts

Isao Iwata

Number of
Employees

322

Kenji Okada

13 Business Report 2020

Managing Director

Stock Information (Current as of March 31, 2020)

Stock
CFD SALES INC.

Number of Shares
Outstanding

Development, manufacture and sale of personal
computer parts and peripheral equipment

Number of
Shareholders

22,237,873(including 5,530,065 treasury stocks)

4,558

BIOS CORPORATION
Development, manufacture and sale of storagerelated products

Major Shareholders (Top 10)(1,000 Shares)

Shareholding
Ratio
(%)

8,390

50.22(37.73)

Hiroyuki Maki617

3.70(2.78)

Daisuke Maki617

3.70(2.78)

The Bank of Nagoya, Ltd.

501

3.00(2.26)

The Melco Foundation

500

2.99(2.25)

Development and sale of network and storage software

Hidetomo Oka

425

2.55(1.92)

MELCO FINANCIAL HOLDINGS INC.

The Master Trust Bank of Japan,
Ltd. (trust account)400

2.40(1.80)

Jun Maki354

2.12(1.59)

GOVERNMENT OF NORWAY

271

1.63(1.22)

Japan Trustee Services Bank, Ltd.
(trust account)214

1.29(0.97)

Shareholder NameMELCO SYNCRETS INC.
Development and sale of audio equipment andrelated products

BUFFALO IT SOLUTIONS INC.
Network infrastructure construction and maintenanceservices

Makis Inc.

Number of
Shares Held

Advanced Design Corp.
Data recovery/erasure/conversion services and manufactureand sale of data erasure products

DigiOn, Inc.

Overall management of financial business within the
Melco GroupMELCO INVESTMENTS INC.
Investment management and financial instrument
intermediary services

Overseas<USA> BUFFALO AMERICAS, INC.
Sale of network-related equipment and PC
peripherals<Europe> BUFFALO EU B.V.
Sale of network-related equipment and PC
peripherals

Notes:
1. The‌
number of shares held has been rounded down to the nearest one thousand.
2. We‌ have calculated the shareholding ratio based on the total number of outstanding
shares less treasury stocks. We have then given this ratio by rounding up/down the
figures to the second decimal place. The shareholding ratio in the parentheses ( ) is
calculated based on the total number of outstanding shares including treasury stock.

Shareholding Distribution byType of Shareholder (Unit: thousand shares)
Treasury stock
5,530(24.87%)

Financial institutions
1,826(8.22%)<Taiwan> BUFFALO TECHNOLOGY (TAIWAN) INC.
Procurement and management of the product<Singapore> MELCO CAPITAL PTE. LTD.

Individuals
and others
4,194(18.86%)
Foreigncorporations
1,287(5.79%)

Investment management

Number of
SharesOutstanding
22,237

Financial instruments
business operators286(1.29%)
Other Japanese
corporations
9,112(40.98%)(Current as of March 31, 2020)
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 second decimal place.

Business Report 2020 14

Shareholder Notes
Fiscal year-end:

Website Guide
MELCO HOLDINGS INC.

March 31

Ordinary general meeting Juneof shareholders:Dates to determine stock
ownership:

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

For shareholders with voting rights:
March 31
For shareholders eligible for year-end dividends:
March 31
For shareholders eligible for interim dividends:
September 30

https://melco-hd.jp

Stock listings:

First section of the Tokyo Stock Exchange andNagoya Stock Exchange

Securities code:

6676

BUFFALO INC.

Number of shares per
trading unit:

100 shares

Provides product and service details, application
cases, and support information.

Method of public notice:

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

Stock agencies:

Sumitomo Mitsui Trust Bank, Limited

Contact information:

Sumitomo Mitsui Trust Bank, Limited, Stock
Transfer Agency Business Planning Dept.
2-8-4 Izumi, Suginami-ku, Tokyo•‌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 Securities and
SMBC Nikko Securities

https://www.buffalo.jp
Shimadaya Corporation
Introduces a variety of information on
recommended recipes and products.

(Securities code: 6676)

Tokyo Headquarters:

Pacific Century Place Marunouchi, 1-11-1
Marunouchi, Chiyoda-ku, Tokyo, 100-6215
Japan
TEL: 81-3-4213-1122
FAX: 81-3-4213-1123

Nagoya Headquarters:

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

Cover Photo
1995: At the opening ceremony of BUFFALO TECHNOLOGY (TAIWAN) INC.
Second from the left is Makoto Maki (47 at that time). Fourth from the left
is Kuniaki Saiki (47 at that time).

https://www.shimadaya.co.jp