Digital Garage, Inc.

1Q of FYE March 31, 2019 Financial Report2018.8.10

Investment Highlights
1Q FY19.3 Profit before income taxes marked 3.0B JPY YoY grew by 66%〜 Well above target, 34% ahead of full-year pre-tax profit forecast 〜

Ⅰ

Ⅱ

Ⅲ

Consolidated result: YoY sales grew by 17%, operating profit grew by 84%, profit before
income tax grew by 66%
Sales marked 15.3B JPY YoY grew by 17%. Sales increased in all segments, especially IT grew 3.5 times YoYOperating profit was 0.8B JPY YoY grew by 84%, due to the contribution from the sale of shares in IT and the increase ingross profit in FT. Profit before income taxes achieved 3.0B JPY YoY grew by 66%, extraordinary gains of 1.5B JPY
were recorded from the partial sale of shares held etc.

FT/MT : Profit grew in internet payment, sales grew and profit decreased in internet ads


FT: Sales marked 5.3B JPY YoY grew by 9%, profit before income taxes achieved 0.7B JPY YoY grew by 22%. Transaction
volume rose sharply to 480B JPY due to the expansion of face-to-face settlement of Alipay, etc. in response to inbounddemand and the handling of public money, recording a record high for the quarter.



MT: Sales marked 8.2B JPY YoY grew by 5%, profit before income taxes decreased due to strategic personnel reinforcement
and investment in development with a view to medium-to long-term growth. In performance-based ads, sales for financial
market remains strong and grew by 28% YoY.

IT/LTI：Exit of Asian investment-related stocks progressed, accelerated commercialization in DG Lab

IT: Profit before income taxes marked 0.6B JPY grew largely from 1QFY18.3. Launched an accelerator program specialized inbiotechnology and healthcare “Open Network Lab BioHealth”. Investment profit on equity method of Kakaku.com trended
steadily in LTI.



After demonstration tests at DG Lab, established a JV for blockchain financial service “Crypto Garage, Inc.” with theTokyo Tanshi Co., Ltd..



KDDI CORPORATION participate in the DG Lab as core partner and entered into a basic agreement on a strategic
alliance. Aiming to create new businesses in anticipation of the 5G era.

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

2

Financial Results by Quarters: Consolidated Sales
Consolidated sales
FY17.3

FY18.3

156

115

122

126

152

FY19.3162

131(+17%)

153

 1Q sales marked 15.3 B JPY, up
17% compared to 1Q FY18.3
 All segments increased in sales,
especially IT drove theconsolidated sales growth(JPY in 100
Million)

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

(7-9) (10-12) (1-3) (4-6) (7-9) (10-12)(1-3) (4-6)
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

3

Financial Results by Quarters: Consolidated Profit before Income Taxes
Consolidated Profit before Income Taxes
FY17.331

FY18.3

FY19.330

Kakaku.com,Inc.
Investment profit onequity method

6 (7-9) by fiscal termchange 1Q profit before income taxes
marked 3.0 B JPY, up 66%
compared to 1Q FY18.3

23

18 16

15

(+66%)

18

 FT, IT and LTI contributed tosignificant increase in profit before
income taxes

11(JPY in 100
Million)

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

(7-9) (10-12) (1-3) (4-6) (7-9) (10-12)(1-3) (4-6)
Copyright © 2018 Digital Garage, Inc. All Rights Reserved4Group Financial Performance Review

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

5

FY19.3 1Q Consolidated P/L Summary
Sales grew by 17% YoY, profit before income taxes marked 3.0B JPY YoY grew by 66%～ Operating profit grew by 84% YoY to 0.8B JPY. Booked 1.5B JPY in extraordinary income by
the sale of some shares etc ～FY18.3

FY19.3

1Q

1Q

J-GAAPJ-GAAP

13,103

15,335+17.0+2,232

Operating profit

464

852

+83.5

+387

Non-operating income

748

836

+11.7

+87

615

587

-4.6

-28

101

115

+14.1

+14

1,111

1,572

+41.5

+461

719

1,503

2.1 X

+784

1,830

3,039

+66.1

+1,209

568

1,173

2.1 X

+604

1,267

1,887

+49.0

+620

JPY in Millions

Net sales

Share of profit of entities accounted forusing equity method

Non-operating expenses

Ordinary profit
Extraordinary income
Profit before income taxes
Income taxes
Profit attributable to owners of parent

YoY%

FY19.3Full Year

AmountForecast

IFRS

Revenue

33,500

Profit before tax

9,000

Profit attributable to

6,200

owners of parent

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

6

FY19.3 1Q Consolidated Segment P/L Summary
All segments increased in sales. IT drove the consolidated growth and achieved substantial increase insales and profits. Profit before income taxes grew by 22% in FT.

～ MT increased in sales, however profit decreased by increasing human resources for strategic development ～FY18.3

FY19.3

1Q

1Q

J-GAAPJ-GAAP

13,103

15,335+17.0+2,232MT Marketing Technology

7,800

8,202

+5.2

+401

14,500FT Financial Technology

4,951

5,393

+8.9

+442

6,500

Incubation Technology

337

1,171

3.5 X

+833

3,100

LTI Long Term Incubation

14

569

40.6 X

+554

6,500

1,830

3,039

+66.1

+1,209MT Marketing Technology

466

255

-45.2

-210

2,250

FT Financial Technology

578

704

+21.8

+126

3,200

IT

Incubation Technology

-108

656

-

+764

1,350

LTI Long Term Incubation

554

917

+65.6

+363

3,450

JPY in Millions

Net sales

IT

Profit before income taxes

YoY%

FY19.3Full Year

AmountForecast

IFRS

Revenue

Profit before tax

33,5009,000

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

7

FY19.3 1Q Consolidated B/S Summary
JPY in Million

Current assets

FY18.3

FY19.3 1Q

Difference

75,17675,205+29

Cash and deposits

32,922

29,113-3,808

Money held in trust

5,307

4,054

-1,253

Notes and accounts receivable

7,741

9,295

+1,553Operational investment securities

12,364

13,622+1,257

Accounts receivable-other

16,88919,150+2,261

33,41936,069+2,649Investment securities

16,552

18,812+2,260Goodwill

7,822

7,656

-165

Total assets

108,596111,275+2,679Current liabilities

49,294

49,683+389

Notes and accounts payable

5,018

6,286

+1,268

Short-term loans payable

4,137

9,730

+5,593

Deposits received

36,49929,663-6,83520,28421,014+730

18,89018,891

+1

601

812

+210

Total liabilities

69,57870,698+1,119Net assets

39,017

40,577+1,56036,36337,133+770

Capital stock

7,464

7,478

+13

Capital surplus

3,104

3,106

+1

Retained earnings

25,81926,574+755

Accumulated other comprehensive income

1,440

2,194

+754

Valuation difference on available-for-sale securities

339

971

+631

108,596111,275+2,679Fixed assets

Fixed liabilities
Long-term loans payable
Deferred tax liabilities

Shareholders' equity

Total liabilities and net assets

Reason for change / Remarks

Decreased deposits received in FT business, Payment of corporation tax and dividends

Relating to FT business
Consolidation of DG Communications, Co., Ltd.
New investment, Mark-to-market, etc

Relating to FT business, Sales of shares
Underwriting of capital increase of iRidge,Inc., Increased investment profit onequity method

Consolidation of DG Communications, Co., Ltd.
Demand for operating capital (FT)
Relating to FT business (due to business operation days factor)

Expecting tax relating to unrealized gains of securities

Increased net profit
After-tax unrealized gains of securities

Effective from the beginning of FY19.3, the Company applied the "Partial Revision of the Accounting Standard for Tax Effect Accounting"(ASBJ Statement No. 28, February 16, 2018) and other accounting standards. Deferred tax assets are presented as investments and otherassets, while deferred tax liabilities are presented as non-current liabilities. Figures for FY18.3 are retrospectively reported.

Unrealized gain

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

8Segment Performance Review

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

9MT Segment
Ⅰ

Marketing Technology Segment
Net Sales

Income Before
Income Taxes

FY18.3

1Q

7,800 M JPY

466 M JPY

FY19.3

1Q

8,202 M JPY255 M JPY

FY19.3

Plan (IFRS)

14,500 M JPY

2,250 M JPY➤ Marketing Technology Company

Supports client’s business through performance-based ads, Online to
Offline strategy and web marketing➤ Business Design Company
Offers consulting-based marketing➤ BI.Garage, Inc.

Develops and provides ad products incorporating data science, social marketing,and cutting edge ad technology➤ NaviPlus Co., Ltd.

Offers website support tools including personalized recommendation engines➤ DG Communications, Co., Ltd.

An advertisement agency in real estate market➤ DG MARKETING DESIGN, Inc. （20％ stake／equity method）

Established on June 25th, 2018 and its predecessor is Business Design Company
Copyright © 2018 Digital Garage, Inc. All Rights Reserved10

MT Segment Highlights
Net sales marked 8.2B JPY, +5% YoY, operating profit marked 0.2B JPY, -45% YoY～ Sales of financial business increased by 28%, cosmetics/HR sales remain robust ～Net Sales
FY18.3

FY17.3(JPY in
100 Million)

94
65

68

71

78

(+5%)

80

Net Sales by Industries(Performance-based ads)

Operating Profit
FY19.3

FY17.3

FY18.3

82
4.2

4.2

3.8

3.6

63

(-45%)

4.6

2.3

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

(10-12)

(1-3)

(4-6)

(7-9)

(10-12)

(1-3)

(4-6)



Strengthen marketing consulting andstrategically respond to customer needs

1Q
(7-9)



2Q
(10-12)

3Q
(1-3)

1Q
(4-6)

2Q
(7-9)

3Q
(10-12)4Q(1-3)

Increase in personnel expenses due tostrategic investment in human resources
Building ad tech platform
Product development etc

63

72
19

35

66

51

53

54

14

16

17

14

16

17

21

21

20

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

(1-3)

(4-6)

(7-9)

(10-12)

(1-3)

(4-6)

1Q
(4-6)

FY19.3

79

6.1
4.4

(7-9)

FY18.3(JPY in
100 Million)(JPY in
100 Million)

95

FY17.3

FY19.3(7-9)(10-12)Financial



19

19

22

20

19

21

23

24

Cosmetics/HR

16

22

22

30

27

Smartphone/App

Good sales for financial business, andcosmetics/HR sales remain robust
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

11

FT Segment
Ⅱ

Financial Technology Segment
Net Sales

Income Before
Income Taxes

FY18.3

1Q

4,951 M JPY

578 M JPY

FY19.3

1Q

5,393 M JPY

704 M JPY

FY19.3

Plan (IFRS)

6,500 M JPY

3,200 M JPY➤ econtext ASIA Ltd.

Payment corporation to expand e-commerce platforms globally➤ econtext, Inc.

Integrates online and offline business as the convenience store payment pioneer➤ VeriTrans Inc.

Provides leading e-commerce payment solutions➤ ANA Digital Gate, Inc.（49％ stake／equity method）
Develops and offers the new payment solution by FinTech

 Sendo Technology JSC（12.75% stake／Investment）
On-line marketplace for C2C and B2C in Vietnam

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

12

FT Segment Highlights
Net sales marked 5.3B JPY, +9% YoY, operating profit marked 0.7B JPY, +21% YoY～ Operating margin which shows profitability increased to 44.7％ ～Net Sales
FY18.3

FY17.3(JPY in
100 Million)

45

Operating Profit
FY19.3

(+9%)
48

48

49 52

54

53

53

FY17.3(JPY in
100 Million)

4.8

5.3

Operating Margin

FY18.3

FY19.3(+21%)

7.0

5.8 5.9(JPY in
100 Million)

FY18.3
1Q

FY19.3
1Q

YoY

Net sales

49.5

53.9

+ 9%

Gross profit (A)

13.6

15.7

+ 16%

(B)

5.8

7.0

+ 21%

42.6%

44.7%

+2.1
points

6.7 6.6

4.5

Op. profit

Operating margin
(B)
1Q

2Q

3Q

1Q

2Q

3Q

4Q

(7-9)

(10-12)

(1-3)

(4-6)

(7-9)

(10-12)

(1-3)



1Q
(4-6)

In addition to the payment collection
service, data processing payment with highprofitability has increased

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

(7-9)

(10-12)

(1-3)

(4-6)

(7-9)

(10-12)

(1-3)

(4-6)



Achieved record high by cost reduction
by off-shoring system operation(A)

Operating margin improved as increased
marginal profit
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

13

IT Segment
Ⅲ

Incubation Technology Segment
Net Sales

Income Before
Income Taxes

FY18.3

1Q

337 M JPY

-108 M JPY

FY19.3

1Q

1,171 M JPY

656 M JPY

FY19.3

Plan (IFRS)

3,100 M JPY

1,350 M JPY➤ DG Incubation, Inc.

Invests in and incubates cutting-edge Internet startups➤ Open Network Lab, Inc.

Provides support to Internet-business entrepreneurs with global visions➤ Digital Garage US, Inc.

The US-based global strategy headquarters➤ DK Gate, Inc. （66％ stake）
Invests in and incubates next generation content with Kodansha globally➤ DG Technologies, Inc. （80％ stake）
Drives strategic technology development with DG Lab➤ DG Daiwa Ventures, Inc.（50％ stake／equity method）
Manages DG Lab Fund to invest in startups with next-generation technologies

 Kodansha Advanced Media LLC（19％ stake／investment）
Marketing in digital distribution in US and English-speaking countries, film adaptation, event planning, etc
Some businesses in IT segment have transferred to LTI, therefore figures on FY17.3 updated with the current category.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

14

IT Segment Highlights
Profit before income taxes grew substantially from FY18.3 4Q by accelerating the sale of
Asian investment-related stocks～ Expand investment in leading start-ups in Japan and overseas ～Profit Before Income Taxes(JPY in
100 Million)

16.8

Blockstream [U.S. /Canada]

6.5

2.4
-1.0
1Q

2Q
3Q
FY18.3-4.1
4Q

1Q
FY19.3

Book Value

153

12.5 B JPY

Domestic

53

2.4 B JPY

Overseas10010.1 B JPY

Fund

11

1.1 B JPY

Total

164

13.6 B JPY

EquityDevelops sidechain technologies,
parallel blockchains that areinteroperable

Droom [India]

Book Value# ofcompanies

Major PortfolioNote)DG Incubation’s investment balanceMark-to-market as of quarter end for listed
stocks. Equity includes convertible note.
Book value totals may not match details
because of rounding down fractions

WHILL [Japan]
Transform antiquated power wheelchair
into an intelligent personal electric vehicle,
focusing on an approachable andaesthetically pleasing powered vehicle.

Goodpatch [Japan]
Provides one-stop services and productplanning, concept making, UX design,
prototyping, and implementation

A leading online marketplace for new andsecond-hand automobiles in India

PureTech Health [U.S.]

Monstar Lab[Japan]

A US based company that focuses on
incubation in advanced biotechnology field.
Listed on LSE.

Operates Sekai Lab, a global outsourcing
platform that provides a network of over 10k
engineers in over 15 countries

Repro [Japan]

Panair [Japan]

Operates mobile app analytics andmarketing SDK “Repro.”

Provides “Panair Cloud”, an automatedelectricity retail platform that uses cloudcomputing and artificial intelligence.

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

15

LTI Segment
Ⅳ

Long-term Incubation Segment
Net Sales

Income Before
Income Taxes

FY18.31Q

14 M JPY

554 M JPY

FY19.3

1Q

569 M JPY

917 M JPY

FY19.3 Plan (IFRS)

6,500 M JPY

3,450 M JPY➤ Kakaku.com, Inc.（20％ stake／Equity method affiliate）

Operates purchase support service, Kakaku.com and restaurant review andrestaurant service, tabelog, etc.

➤ DG Life Design, Inc.（70% stake）

With its mission of providing “Valuable Life,” expanding life care business,
sports marketing business and wine school business.

➤ DK Media, Inc.（50% stake／Equity method affiliate）

Internet media business utilizing fashion magazines by Kodansha

MI segment has been changed to LTI segment from FY18.3, by aiming to generate sustainable business profit in mid-long term.

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

16

LTI Segment Highlights
Profit before income taxes marked 0.91B JPY. Investment profit on equity method of Kakaku remains robust～ Good progress in profit before income taxes compared to 1Q FY18.3 ～Profit Before Income Taxes

Business Progress of Kakaku.com, Inc.
【Total Accumulated Traffic for Kakaku.com Group】
Monthly traffic for all sites of Kakaku.com has increased to(JPY in
100 Million)

289.72 million, up 40.6% yoy (June 2018)

13.4

5.5

1Q

6.9

2Q

YoY
+40.6%(in million people)(+66%)
9.1
5.8

3Q

FY18.3

4Q

1Q

FY19.3

June

Sept
2015

Dec

Mar

June

Sept

2016

Dec

Mar

June

Sept

2017

Dec

Mar

June
2018

Ref. Kakaku.com, Inc. Results Briefing for 1Q FY2019/3
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

17Topics 1: Collaboration in the Fintech Field
Establish JV “Crypto Garage” with the Tokyo Tanshi～ R&D and commercialization of financial services using blockchain ～DG Lab’s cutting-edge blockchain
technologies

Financial market expertise in theinterbank transaction and open markets

40% stake

60% stakev
Crypto• Garage,Inc.


R&D on advanced financial services leveraging blockchain and encryption technology

Full-scale commercialization of crypto currency and blockchain businessesPlan to establish on September 2018
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

18

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Topics 3: A Capital and Business Alliance with Welby
Building personal health and medical care information platform～ Jointly develop PHR (Personal Health Record) service utilizing blockchain and AI ～Capital and business alliance（external largest shareholder）

Medicalinstitutions

Individuals/
patients

Local
governments

Nursing
care
providersNational
and healthinsuranceDatamanagementwith blockchain
Data analysis andprocessing with AI

Pharmacies

Healthrelated
business
operators

Insurance, pharmaceutical,
and other companies

Welby, Inc.
LocationTokyo

Representative

CEO Takeru Hiki

Business

Planning, development andoperation of digital services tosupport medical treatmentsfor patients (PHR)

A leading company launched its
personal health record (PHR)
services that collect and manage
the digital individual health/medical
information

Copyright © 2018 Digital Garage, Inc. All Rights Reserved20Topics 4: Basic Agreement on Strategic Alliance with KDDI
Strategic Alliance with KDDI

～ Leverage the assets of both groups to create new businesses in a wide range of fields
in anticipation of the 5G era ～CONTEXT COMPANY / IT MT FT

One of Japan’s largest media
conglomerates
Capital alliance andbusiness alliance

Strategic alliance(Kakaku.com, Inc. × KDDI CORPORATION)(DG × KDDI CORPORATION)Strategic alliance to create
new businesses using
cutting-edge technologiesKDDI's participation as a DG
Lab's core partner tomaterialize a strategic allianceIntegration of Telecommunicationsand Life DesignPromotion of businesses that
capitalize on both companies’
strengths, including online
advertising and digitalmarketing businessesPotential business expansion
through service collaborations
between the two companies

Potential development of new
businesses that utilize various
assets of both companies

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

21

Appendix

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

22

Financial Results: Consolidated profit and loss
JPY in Millions

FY14.6

FY15.6

FY16.6

FY17.3

FY18.3(Full Year Act)

(Full Year Act)

(Full Year Act)

(Full Year Act)

(Full Year Act)

9 monthNet sales

33,751

38,08743,76336,45160,168Operating profit

2,608

4,809

4,201

723

2,310

Non-operating income

2,307

3,736

3,031

3,246

3,305

1,741

2,080

2,406

2,528

2,768

Foreign exchange gain

143

1,090

-

171

-

Non-operating expenses

472

936

1,040

292

597

Foreign exchange loss

-

-

689

-

160

4,442

7,610

6,193

3,678

5,017

630

2,463

1,392

2,265

2,669

220

68

-

1,829

1,032

-

-

521

386

1,471

374

2,363

157

47

33

26

23

706

-

-

38

824

10

124

67

0

657

-

104

25

Profit before income taxes

5,035

9,248

7,574

5,819

7,619

Income taxes

1,887

3,855

2,385

1,525

2,133

Profit attributable to owners of parent

2,847

5,081

5,165

4,289

5,460

Share of profit of entities accounted for using equity
methodOrdinary profit
Extraordinary income
Gain on sales of investments in securities
Gain on sales of shares of sub. and associates

Gain on change in equity
Gain on transfer of business
Extraordinary loss
Impairment loss

Note: Kakaku,com.Inc. is affiliated company for using the equity method, and started to apply IFRS from FY18.3. The figures on FY17.3 has been applied retrospectively.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

23

Financial Results: Consolidated profit and loss by segments

JPY in Millions

FY14.6

FY15.6

FY16.6

FY17.3

FY18.3(Full Year Act)

(Full Year Act)

(Full Year Act)

(Full Year Act)

(Full Year Act)

9 monthNet sales

33,751

38,08743,76336,45160,168MT

Marketing Technology

14,822

16,06421,02820,49434,938FT

Financial Technology

13,454

14,56816,392

14,14020,956

IT

Incubation Technology

5,475

7,454

6,343

1,775

3,123

LTI*

Long Term Incubation

-

-

-

41

1,150

Profit before income taxes

5,035

9,248

7,574

5,819

7,619

MT

Marketing Technology

874

1,061

1,396

1,074

1,959

FT

Financial Technology

1,496

1,335

1,758

1,478

2,539

IT

Incubation Technology

1,595

2,804

3,105

766

1,325

LTI*

Long Term Incubation

1,776

4,477

3,052

2,899

3,176

Note: Income before income taxes per segment is based on figures prior to elimination or group deduction, etc
MI segment has been changed to LTI segment from FY18.3, by aiming to generate sustainable business profit in mid-long term.
Some businesses in IT segment have transferred to LTI, therefore figures on FY17.3 updated with the current category.
Figures in IT segment for the fiscal year ended March 31, 2018 are simple reference values calculated as a result of transferring certain
businesses, etc. included in the Company-wide segment to the IT segment. These figures may differ from those disclosed in the future.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

24Press Releases

Date

Title

2018.8.2

Digital Garage & KDDI Entered into a Basic Agreement on Strategic Alliance2018.8.1

Digital Garage and Welby Form a Capital and Business Alliance to Build a Person-Centered Health andMedical Data Platform2018.7.20

Digital Garage and Tokyo Tanshi to Establish a JV for Blockchain Financial Service R&D and Business in
the Fintech Field

2018.6.15

Digital Garage and iRidge's Fintech Subsidiary Collaborate in the Regional Digital Currency Field

2018.5.23

Digital Garage Launches "Open Network Lab BioHealth", an Accelerator Program Specialized in
Biotechnology and Healthcare

2018.5.17

Digital Garage Launches One-Stop Marketing and Fulfillment Solution for Online Shopping Suppliers
Aiming to Expand Overseas in Thailand and Taiwan

2018.4.27

DG Lab to Host THE NEW CONTEXT CONFERENCE 2018 TOKYO on the Theme of "Governance ofRegulations and Innovations"2018.4.20

Digital Garage and The Hokkaido Shimbun Press Launch "Open Network Lab HOKKAIDO", an
Accelerator Program

Copyright © 2018 Digital Garage, Inc. All Rights Reserved25

Please note that the business forecasts and strategies covered in today’s presentation are based on our current evaluation and future results may vary significantly depending
on unforeseeable events or circumstances. This announcement is solely for the purpose of the investors relationship and is not for making any solicitation for investment inany securities. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in whichsuch offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any securities of our consolidated
subsidiaries have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of the U.S. Securities Act. Any public offering of securities to be made in the United States will bemade by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements.