Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries
As of and for the fiscal years ended March 31, 2016 and 2017

1. BASIS OF PRESENTATION(4) Investment securities

The accompanying consolidated financial statements of MARUI GROUP CO., LTD. (“the Company”) and its consolidated subsidiaries (collectively, “the Group”) have been prepared in accordance with the provisions set forth in the Financial Instruments andExchange Act of Japan and its related accounting regulations as well as in conformity with accounting principles generally
accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order to present them in a form that is more familiar to readers outside
Japan. In addition, certain reclassifications have been made in the 2016 consolidated financial statements to conform to theclassifications used in 2017.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company isincorporated and operates.
As permitted by the regulations under the Financial Instruments and Exchange Act of Japan, amounts of less than one million yen have been omitted. As a result, the totals shown in the accompanying consolidated financial statements in Japanese yen
do not necessarily agree with the sums of the individual amounts.
The U.S. dollar amounts shown in the accompanying consolidated financial statements and notes thereto were translated
from the presented Japanese yen amounts into U.S. dollar amounts at the rate of ¥112 = $1, the approximate rate of exchange
at March 31, 2017, and were then rounded down to the nearest thousand. As a result, the totals shown in the accompanying
consolidated financial statements in U.S. dollars do not necessarily agree with the sums of the individual amounts. This translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan. Suchtranslation should not be construed as a representation that Japanese yen could be converted into U.S. dollars at that or any
other rate.

Investment securities held by the Group are all classified as available-for-sale securities.
Available-for-sale securities with a determinable market value are stated at fair value based on the market value at the balance sheet date, and unrealized gains or losses, net of applicable income taxes, are reported as a separate component of net
assets. Cost of securities sold is computed based on the moving-average method. Available-for-sale securities without a determinable market value are stated at cost determined by the moving-average method.
Investments in unconsolidated subsidiaries and affiliates are stated at cost determined by the moving-average method.

(5) Inventories
Inventories are measured at the lower of cost determined by the monthly weighted-average method or net selling value.

(6) Depreciation and amortization
Property and equipment (excluding leased assets) are depreciated by the straight-line method.
Intangible assets are amortized by the straight-line method. Capitalized computer software costs for internal use are amortized by the straight-line method over the estimated useful lives (within five years).
For finance leases which do not transfer ownership of the leased assets to the lessee, leased assets are depreciated by thestraight-line method over the lease terms with no residual value.

(7) Allowance for doubtful accounts
The allowance for doubtful accounts is stated at the amount determined based on the historical experience of bad debt withrespect to ordinary receivables (“general reserve”), plus an estimate of uncollectible amounts determined by reference to specificdoubtful receivables of customers experiencing financial difficulties (“specific reserve”).

(8) Provision for bonuses

2. SIGNIFICANT ACCOUNTING POLICIESThe provision for bonuses is accrued at the fiscal year-end to which such bonuses are attributable.

(1) Principles of consolidation and accounting for investments in unconsolidated subsidiaries and affiliates
The consolidated financial statements as of and for the fiscal years ended March 31, 2016 and 2017, include the accounts of
the Company and its nine significant subsidiaries.
Under the control or influence concept, those companies in which the Company, either directly or indirectly, is able to exercise control over operations are consolidated, and those companies over which the Company has the ability to exercise
significant influence are accounted for using the equity method. For the fiscal years ended March 31, 2016 and 2017, there
was no subsidiary or affiliate accounted for using the equity method. Investments in the remaining unconsolidated subsidiaries
and affiliates are stated at cost. If the equity method of accounting was applied to the investments in these companies, the effecton the accompanying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation.
The fiscal year-end of all consolidated subsidiaries is March 31, the same as that of the Company.

(9) Provision for point card certificates
Credit points are awarded to customers when they make purchases using the Group’s member card and, upon request, theCompany will issue gift certificates or allow customers to use their accumulated credit points for their payment.
The provision for point card certificates is accrued to the estimated amount required based on the balance of credit points
awarded to card members outstanding at the fiscal year-end.

(10) Provision for loss on redemption of gift certificates
The monetary value of gift certificates and other certificates that have not been redeemed for a set period of time after issuanceis recognized as income. However, some gift certificates and other certificates can be redeemed after the recognition of income.
The provision for loss on redemption of gift certificates is provided at the estimated amount to be redeemed in the future
based on historical experience.

(2) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates
prevailing at the consolidated balance sheet dates. All revenues and expenses associated with foreign currencies are translated
into Japanese yen at the exchange rates prevailing when such transactions were made. The resulting exchange gains or losses
are credited or charged to income.

(11) Provision for loss on interest repayment
The provision for loss on interest repayment is provided to the estimated amount of repayment claims on consumer loaninterests at the fiscal year-end. Based on the current situation in which repayment claims continue to increase although theactual repayments decrease, the Company re-examined the amount of provision and recorded the necessary amount as ofMarch 31, 2017.

(3) Cash and cash equivalents
In preparing the consolidated statements of cash flows, the Group considers cash on hand, readily available deposits, and highly
liquid short-term investments with maturities of three months or less when purchased that are exposed to an insignificant risk ofchanges in value to be cash and cash equivalents.

106(12) Provision for loss on guarantees
The provision for loss on guarantees is provided at the estimated amount of loss arising from the Group’s guarantee obligationsof customers’ liabilities in relation to loans to individuals from financial institutions with which the Group has guarantee service
arrangements.

107Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements(13) Provision for stock benefits(2) The Company’s shares held at the trust

The provision for stock benefits is provided at the estimated amount for stock benefits to directors and employees at the fiscal
year-end in accordance with the internal rule for stock delivery.

The Company’s shares held at the trust are carried at their book value at the trust (excluding incidental expenses) and accounted
for as treasury stock under net assets. The book value and the number of shares as of March 31, 2017 are ¥479 million($4,276 thousand) and 340,800 shares, respectively.

(14) Basis for revenue recognition
The charges for installment sales and interest income on consumer loans are recognized on an accrual basis based on theremaining loan balances.

(15) Hedge accounting
The Group utilizes interest rate swaps to mitigate the fluctuation risk of interests on loans payable.
The Group applies the special accounting treatment for interest rate swaps as all requirements for this treatment are fulfilled. The Group omits the evaluation of hedge effectiveness for interest rate swaps under the special accounting treatment.

(16) Consumption taxes
National and local consumption taxes are accounted for by the tax-excluded method. Non-deductible consumption tax andother taxes imposed on fixed assets are recorded as expenses as incurred.

3. CHANGE IN PRESENTATION
Consolidated Statements of Income
The account “Impairment loss,” which was previously included in “Other, net,” is shown separately for the fiscal year ended
March 31, 2017. The balance in the previous fiscal year has been reclassified to conform to the current year’s presentation.
As a result, the amount of ¥107 million included in “Other, net” for the fiscal year ended March 31, 2016 is reclassified as“Impairment loss” of ¥107 million.

Officer Remuneration Board Incentive Plan Trust
Effective from the fiscal year ended March 31, 2017, the Company also introduced the “Officer Remuneration Board Incentive
Plan Trust (“BIP Trust”)” to provide an incentive to (i) Directors and Executive Officers (excluding External Directors and nonresidents in Japan) of the Company and (ii) Directors of 10 subsidiaries of the Group (excluding External Directors andnon-residents in Japan; collectively, with the Directors and Executive Officers of the Company, the “Executives”).

(1) Overview of the plan
The Company will set up a trust with the Executives who fulfill certain requirements as beneficiaries, by contributing funds toacquire the Company’s stock. The trust will acquire the Company’s own stock from the stock market for the number of sharesrequired for delivering to the Executives based on the prescribed internal rule for stock delivery. Then, in accordance with theinternal rule, the Company will make a delivery or payment of its shares and cash equivalents to the amount obtained by converting a part of the shares into cash based on the rank of each Executive and degree of achievement of the performance target.
The Company applies the “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees, etc.
through Trusts” (PITF No. 30, March 26, 2015) for the accounting treatment of the plan.

(2) The Company’s shares held at the trust
The Company’s shares held at the trust are carried at their book value at the trust (excluding incidental expenses) and accounted
for as treasury stock under net assets. The book value and the number of shares as of March 31, 2017 are ¥217 million($1,937 thousand) and 161,500 shares, respectively.

Application of Implementation Guidance on Recoverability of Deferred Tax Assets

4. ADDITIONAL INFORMATION
Stock Benefit Employee Stock Ownership Plan Trust
Effective from the fiscal year ended March 31, 2017, the Company introduced the “Stock Benefit Employee Stock Ownership
Plan Trust (“ESOP Trust”)” to provide an incentive to the Group’s employees holding senior management positions (hereinafter
the “Senior Managers”), aiming to enhance their commitment to further improve the business performance and corporate value
over the medium-to-long term.

Effective from the fiscal year ended March 31, 2017, the Company applied the “Revised Implementation Guidance on
Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016).

5. ACCOUNTS RECEIVABLE–INSTALLMENT
The following balances for lump sums receivable and revolving receivable were securitized and are therefore excluded from theconsolidated balance sheets as of March 31, 2016 and 2017:(1) Overview of the plan
The Company will set up a trust with the Senior Managers who fulfill certain requirements as beneficiaries, by contributing funds
to acquire the Company’s stock. The trust will acquire the Company’s own stock from the stock market for the number of sharesrequired for delivering to the Senior Managers based on the prescribed internal rule for stock delivery. Then, in accordance with
the internal rule, the Company will make a delivery or payment of its shares and cash equivalents to the amount obtained byconverting a part of the shares into cash based on the rank of each Senior Manager and degree of achievement of the performance target.
The Company applies the “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees, etc.
through Trusts” (PITF No. 30, March 26, 2015) for the accounting treatment of the plan.

108

Millions of yen
2016

Card shopping:
Lump sums receivable
Revolving receivable¥55,000
13,9282017¥55,000
9,290

Thousands of
U.S. dollars (Note 1)
2017$491,071
82,946109

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

6. LOAN COMMITMENTS(2) Estimated fair value of financial instruments

Certain consolidated subsidiaries that operate in the credit card business provide consumer loan services to customers.
The unused balance of loans contingent with the loan commitments was as follows:

Carrying value, fair value, and the difference between them as of March 31, 2016 and 2017, are summarized below.
Financial instruments for which the fair value is extremely difficult to determine are excluded from the following table(See Note 2 on page 117).

Millions of yen

Total loan limits
Amount executed as loans
Unused balance

Thousands of
U.S. dollars (Note 1)

2016

2017

2017

¥1,090,691
134,107¥  956,583¥1,139,270
140,569¥  998,701$10,172,053
1,255,080$ 8,916,973

Under the provisions of the loan service contract, the Group is able to decline a loan request or decrease a loan limit whena customer’s financial condition or other circumstances change. Thus, the total unused balance will not necessarily be executed
as loans.

7. FINANCIAL INSTRUMENTS(1) Status of financial instruments(a) Policy on financial instruments
The Group raises necessary funds for business operations through bank loans and corporate bond issuance. Temporary surplus
funds are invested in highly safe short-term deposits. Derivative transactions are utilized to avoid the interest rate fluctuation risk
on loans. The Group does not use derivative transactions for speculative purposes.

(b) Financial instruments, their risks, and the risk management system
Accounts receivable–installment and operating loans are exposed to the credit risk of customers. In accordance with the internalrisk management rules, the Group mitigates such risk by monitoring and evaluating the credit status of each customer by meansof third-party personal credit information agencies and the Group’s own credit monitoring system.
Investment securities primarily consist of shares issued by business partners and are exposed to both credit risk and market
risk. The Group mitigates such risks by regularly monitoring the share price and the financial condition of the issuers.
Leasehold and other deposits consist of security deposits to rent properties for stores.
Accounts payable–trade is settled in the short term.
Long-term loans payable with a floating interest rate is exposed to interest rate fluctuation risk. The Group utilizes interest
rate swaps to avoid such risk by fixing the future interest rate.

110

Millions of yen
2016(1) Cash and deposits(2) Notes and accounts receivable–trade(3) Accounts receivable–installment
		 Allowance for doubtful accounts*1(4) Operating loans
		 Allowance for doubtful accounts*2(5) Investment securities:
		Available-for-sale securities(6) Leasehold and other deposits
Assets, total(1) Accounts payable–trade(2) S hort-term loans payable and current
portion of long-term loans payable(3) Current portion of bonds payable(4) Commercial paper(5) Income taxes payable(6) Bonds payable(7) Long-term loans payable
Liabilities, total
Derivative transactions

2017

Carrying value

Fair value

Difference

Carrying value

Fair value

Difference¥ 32,586
7,459
279,763(5,246)
274,517
134,107(2,114)
131,993¥ 32,586
7,459¥    ——¥ 36,257
4,840¥    ——

312,365

37,847

385,860

43,904

152,737

20,744¥ 36,257
4,840
348,191(6,236)
341,955
140,569(2,349)138,219

157,324

19,10519,3298,404¥474,290¥ 24,318

19,3298,324¥532,801¥ 24,318—(80)¥58,510¥    —

17,4296,993¥545,695¥ 15,850

17,4296,902¥608,615¥ 15,850—(90)¥62,919¥    —

48,32430,00010,0004,731
80,000191,000¥388,374¥     —

48,32430,00010,0004,731
80,650191,382¥389,407¥     —

—
—
—
—
650
382
¥ 1,032¥    —

50,82720,0005,000
7,214
85,000273,500¥457,391¥     —

50,82720,0005,000
7,214
85,049272,556¥456,498¥     —

—
—
—
—
49
(943)
¥  (893)¥    —*1 The amount presents the total of general reserve and specific reserve for accounts receivable–installment.
*2 The amount presents the total of general reserve and specific reserve for operating loans.
.

111Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

Thousands of U.S. dollars (Note 1)
2017
Carrying value(1) Cash and deposits(2) Notes and accounts receivable–trade(3) Accounts receivable–installment
		 Allowance for doubtful accounts(4) Operating loans
		 Allowance for doubtful accounts(5) Investment securities
		Available-for-sale securities(6) Leasehold and other deposits
Assets, total(1) Accounts payable–trade(2) Short-term loans payable and current portion of long-term loans payable(3) Current portion of bonds payable(4) Commercial paper(5) Income taxes payable(6) Bonds payable(7) Long-term loans payable
Liabilities, total
Derivative transactions

Fair value

Difference$  323,723 $  323,723
43,214
43,214
3,108,848(55,678)
3,053,169 3,445,178
1,255,080(20,973)
1,234,098 1,404,678$     ——

155,616
62,437$4,872,276$  141,517
453,812
178,571
44,64264,410758,928
2,441,964$4,083,848$       —

—(803)$561,776$     —————
437
(8,419)$    (7,973)$     —

155,616
61,625$5,434,062$  141,517
453,812
178,571
44,64264,410759,366
2,433,535$4,075,875$       —392,000

170,580

Liabilities:		(1) Accounts payable–trade, (2) Short-term loans payable and current portion of long-term loans payable, (3) Current
portion of bonds payable, (4) Commercial paper, and (5) Income taxes payable		 The fair value approximates their carrying value because of their short maturities.
		 (6) Bonds payable		The fair value is based on the present value calculated by discounting the sum of principal and interests using aninterest rate, for which credit risk and redemption periods are taken into account.
		 (7) Long-term loans payable		The carrying value of long-term loans payable with a floating interest rate approximates its fair value since the interest
rate reflects the market rate in the short term. Thus, carrying value is used as its fair value. The fair value of long-termloans payable hedged by interest rate swaps under special accounting treatment is calculated by discounting the sumof principal and interests accounted for together with interest rate swaps using a reasonably estimated interest rateapplied to similar borrowings. The fair value of long-term loans payable with fixed interest rates is calculated bydiscounting the sum of principal and interests using an interest rate that would be applied to similar new borrowings.
		 Derivative transactions
		 See Note 9, “DERIVATIVE TRANSACTIONS,” for details.
Note 2. Financial instruments whose fair value is extremely difficult to determine
Millions of yen

Note 1. Calculation method for fair value of financial instruments and information on securities and derivative transactions
Assets:		 (1) Cash and deposits and (2) Notes and accounts receivable–trade		 The fair value approximates their carrying value because of their short maturities.

2016

Unlisted stocks
Part of security deposits¥ 1,053
28,1032017¥ 1,553
27,796

Thousands of
U.S. dollars (Note 1)
2017$ 13,866
248,178

Unlisted stocks are not included in (5) Investment securities in the table on page 116, as there were no market prices
available and it is extremely difficult to determine the fair value. Similarly, part of security deposits is not included in (6)Leasehold and other deposits.

		 (3) Accounts receivable–installment and (4) Operating loans		The fair value is determined as their present value by discounting, using the risk-free rate, their future cash flows
adjusted for their credit risk identified in the credit control process. With regard to bad receivables and loans, allowance for doubtful accounts is estimated based on the present value of their estimated future cash flows. The fair value
approximates the amount of carrying value less allowance for doubtful accounts. Thus, the amount of carrying valueless allowance for doubtful accounts is used as fair value.
		 (5) Investment securities
		 The fair value is based on quotes on an exchange.
		 (6) Leasehold and other deposits		The fair value is determined as their present value by discounting future cash flows at the risk-free rate adjusted for
credit risk premium. The amount includes the current portion of leasehold and other deposits.

112

113

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

8. INVESTMENT SECURITIESNote 3. Redemption schedule for monetary claims and securities with maturities
Millions of yen(1) Information on available-for-sale securities as of March 31, 2016 and 2017, is as follows:

2016

Cash and deposits
Notes and accounts receivable–trade
Accounts receivable–installment
Operating loans
Leasehold and other deposits
Total

Millions of yen

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

Due after ten years¥ 32,586
7,459
154,581
62,913
1,352¥258,892¥     ——
83,29470,885
2,986¥157,166¥    ——
23,502245
2,218¥25,966¥    ——
18,386
63
1,846¥20,296
Millions of yen

2017

Cash and deposits
Notes and accounts receivable–trade
Accounts receivable–installment
Operating loans
Leasehold and other deposits
Total

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

Due after ten years¥ 36,257
4,840
186,538
66,131
745¥294,512¥     ——
107,079
74,2433,770¥185,094¥    ——
29,073138
721¥29,932¥    ——
25,50056
1,755¥27,312

Thousands of U.S. dollars (Note 1)
2017

Cash and deposits
Notes and accounts receivable–trade
Accounts receivable–installment
Operating loans
Leasehold and other deposits
Total

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

Due after ten years$  323,723
43,214
1,665,517
590,455
6,651$2,629,571$       —
—956,062
662,883
33,660$1,652,625$      —
—259,580
1,232
6,437$267,250$      —
—227,678500
15,669$243,857

2016

Carrying value exceedingacquisition cost:
StocksSubtotalCarrying value not exceedingacquisition cost:
StocksSubtotal
Total

2017

Carrying value

Acquisition cost

Difference

Carrying value

Acquisition cost

Difference¥ 9,072
9,072¥ 8,5108,510¥  562562¥10,633
10,633¥ 9,956
9,956¥  677677

10,256
10,256¥19,329

12,544
12,544¥21,054(2,287)(2,287)¥(1,725)

6,795
6,795
¥17,429

8,959
8,959
¥18,915(2,164)(2,164)¥(1,486)

Thousands of U.S. dollars (Note 1)
2017

Carrying value exceedingacquisition cost:
StocksSubtotalCarrying value not exceedingacquisition cost:
StocksSubtotal
Total

Carrying value

Acquisition cost

Difference$ 94,937
94,937$ 88,892
88,892$  6,044
6,044

60,66960,669$155,616

79,991
79,991$168,883(19,321)(19,321)$(13,267)

Unlisted stocks in the amount of ¥281 million and ¥681 million ($6,080 thousand) as of March 31, 2016 and 2017,
respectively, are not included in the table above since their market price is not readily available and it is extremely difficult todetermine their fair value.

See Note 11, “SHORT–TERM LOANS PAYABLE AND LONG–TERM DEBT,” for the schedule of aggregate annual maturities oflong-term loans payable and long-term debt.

114

115

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

10. LEASES(2) Information on sale of available-for-sale securities for the fiscal years ended March 31, 2016 and 2017, is as follows:
Millions of yen
2016
Proceeds
from sales

Stocks
Total

Gains

¥3,340¥3,3402017
Proceeds
from sales

Losses

¥972
¥972

¥0
¥0

Gains

¥2,016¥2,016¥208¥208

Losses¥330¥330

Stocks
Total

Losses$18,000$18,000$1,857$1,857$2,946$2,9469. DERIVATIVE TRANSACTIONS
For the fiscal years ended March 31, 2016 and 2017, the Group’s derivative transactions were limited to interest rate swaps
that qualified for hedge accounting and met the requirements for the special accounting treatment for interest rate swaps as
described below. There were no derivative transactions for which hedge accounting was not applied.
Hedge accounting method:
Special treatment for interest rate swaps
Type of derivative transactions:Interest rate swaps, receive floating / pay fixed
Hedged item:
Long-term loans payable
Millions of yen

Total

Due after one year

¥27,000¥22,000

Fair value

*

2016

Total

Due after one year

¥22,000¥17,000

Fair value*¥ 7,049
9,485¥16,5342017$ 34,473
189,955$224,428

Total

Due after one year

$196,428$151,785

Fair value

*

2017

¥12,058
8,881¥20,939

Thousands of
U.S. dollars (Note 1)
2017$107,660
79,294$186,955

11. SHORT-TERM LOANS PAYABLE AND LONG-TERM DEBT
Short-term loans payable and current portion of long-term loans payable as of March 31, 2016 and 2017, consisted of thefollowing:
Millions of yen
2016

2017
Contract amount* Interest rate swaps under the special accounting treatment are accounted for as an integral component of the long-term loans payable designated as hedged items. Thus,
their fair value is included in that of long-term loans payable.

116

Millions of yen

Thousands of U.S. dollars (Note 1)

2017
Contract amount2017¥ 3,861
21,275¥25,136

The future minimum lease receipts under non-cancellable operating leases were as follows:

Within one year
Over one year
Total

2016

¥ 4,782
25,136¥29,919

Thousands of
U.S. dollars (Note 1)(As a Lessor)(3) When the fair value of investment securities declines by 30% to 50%, the Group recognizes an impairment loss after
comprehensively evaluating the recoverability of the market price. No significant impairment loss on investment securities
was recognized for the fiscal years ended March 31, 2016 and 2017.

Contract amountMillions of yen

Within one year
Over one year
Total

2017
Gains

The Group capitalizes leased assets under finance leases that do not transfer ownership. These assets mainly comprise buildings and properties in connection with the Retailing segment.
The future minimum lease payments under non-cancellable operating leases were as follows:

2016

Thousands of U.S. dollars (Note 1)
Proceeds
from sales(As a Lessee)

Short-term loans payable
Current portion of long-term loans payable
Total¥33,324
15,000¥48,3242017¥40,827
10,000¥50,827

Thousands of
U.S. dollars (Note 1)
2017$364,526
89,285$453,812

Annual weighted-average interest rates of short-term loans payable were 0.36% and 0.27% and those of current portion of
long-term loans payable were 0.42% and 0.65% for the fiscal years ended March 31, 2016 and 2017, respectively.
Annual weighted-average interest rates of commercial paper, due within a year, were 0.001% and (0.01)% for the fiscal
years ended March 31, 2016 and 2017, respectively.

117

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

12. DEFERRED TAX ACCOUNTING

Long-term debt as of March 31, 2016 and 2017, consisted of the following:
Millions of yen

0.28% long-term loans from banks and others due through 2028,
excluding current portion
13th series unsecured 1.51% corporate bond, due 201718th series unsecured 0.97% corporate bond, due 2017
20th series unsecured 0.79% corporate bond, due 2017
21st series unsecured 0.57% corporate bond, due 2017
22nd series unsecured 0.85% corporate bond, due 2019
23rd series unsecured 0.342% corporate bond, due 2016
24th series unsecured 0.582% corporate bond, due 2018
25th series unsecured 0.344% corporate bond, due 2019
26th series unsecured 0.562% corporate bond, due 2021
27th series unsecured 0.337% corporate bond, due 2020
28th series unsecured 0.543% corporate bond, due 2022
29th series unsecured 0.050% corporate bond, due 201930th series unsecured 0.130% corporate bond, due 2021
Lease obligation
Less: Current portion
Total

Thousands of
U.S. dollars (Note 1)

2016

2017

2017

¥191,000
10,00010,00010,00010,0005,000
10,00010,00010,00010,00015,00010,000——¥273,500——
10,00010,0005,000—
10,00010,00010,00015,00010,00015,00010,000$2,441,964——
89,28589,28544,642—89,28589,28589,285
133,928
89,285
133,928
89,285

1,868
302,868
30,149¥272,719

1,719
380,219
20,149¥360,070

15,3483,394,812
179,901$3,214,910

Millions of yen
Year ending March 31

Bonds payable

2018
2019
2020
2021
2022 and thereafter
Total¥ 10,000
31,00040,00042,000160,500¥283,500¥ 20,000
10,00030,00015,00030,000¥105,000

118

Millions of yen
2016

Thousands of U.S. dollars (Note 1)
Long-termloans payable

Bonds payable

Lease obligation¥  149 $   89,285
149
276,785
149
357,142149
375,000
1,121 1,433,035¥1,719 $2,531,250$178,571
89,285
267,857
133,928
267,857$937,500$ 1,330
1,330
1,330
1,330
10,008$15,348

Lease obligation

Deferred tax assets:
Depreciation
Impairment loss
Provision for loss on interest repayment
Provision for point card certificates
Net unrealized loss on non-current assets
Provision for bonuses
Net operating loss carried forward
Other
Subtotal
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for special account for advanced depreciation of non-current assets
Valuation difference on available-for-sale securities
Other
Total deferred tax liabilities
Deferred tax assets, net

2017

Thousands of
U.S. dollars (Note 1)
2017¥ 6,016
5,232
2,114
2,291
1,357
1,293
1,105
4,990
24,403(7,192)¥17,210¥ 5,741
5,073
3,982
3,194
1,353
1,263
315
6,034
26,958(6,969)¥19,988$ 51,258
45,29435,55328,517
12,08011,2762,812
53,875
240,696(62,223)$178,464¥ 8,5234350¥ 8,877¥ 8,332¥ 9,900
23
263¥10,187¥ 9,801$ 88,392
205
2,348$ 90,955$ 87,508

Income taxes consist of corporation, inhabitants’, and enterprise taxes. Reconciliations between the statutory tax rate andthe effective tax rate reflected in the consolidated statements of income were as follows:

The aggregate annual maturities of long-term debt subsequent to March 31, 2017, are as follows:
Long-termloans payable

Major components of deferred tax assets and deferred tax liabilities as of March 31, 2016 and 2017, were as follows:

Statutory tax rate
Adjustments:
Permanent differences such as entertainment expenses, etc.
Permanent differences such as dividends
Change in valuation allowance
Inhabitants’ tax
Difference in tax rates of consolidated subsidiaries
Tax credit
Adjustments due to changes in tax rate
Other
Effective tax rate

2016

2017

33.1%

30.9%

0.3
(0.1)
(0.8)
0.6
2.1
(1.3)
0.4
(0.4)
33.9%

0.3
(0.1)
(0.9)
0.5
3.6
(1.5)
—
0.3
33.1%

119

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

13. ASSET RETIREMENT OBLIGATIONS

15. SUBSCRIPTION RIGHTS TO SHARES(1) Asset retirement obligations recognized on the consolidated balance sheets

For the fiscal year ended March 31, 2016, the amount of costs incurred for subscription rights to shares (“stock options”) was¥50 million and was included in selling, general and administrative expenses. No stock option is granted for the fiscal year
ended March 31, 2017.
The outline of stock options of the Company is as follows:

The Group’s asset retirement obligations mainly include the cost of restoring the store sites to their original condition under thereal estate lease contracts of stores. The Group calculated its asset retirement obligations by assuming the lease period as the
expected period of use and applying discount rates of 0.00% to 1.38%.
Asset retirement obligations as of March 31, 2016 and 2017, consisted of the following:
Millions of yen
2016

Beginning balance
Increase due to acquisition of property and equipment
Increase due to change in estimate*
Adjustments due to passage of time
Decrease due to fulfillment of obligation
Ending balance

¥635
348
80
2
(93)
¥974

2017

¥974
7
—
4
(93)
¥892

Thousands of
U.S. dollars (Note 1)
2017$8,696
62
—
35
(830)
$7,964* The reasonable estimate of obligation became available for stores to be closed.

While the Group estimates asset retirement obligations based on the real estate lease contracts of stores, it is not possible toreasonably estimate the cost of restoring the store sites to their original condition under the general lease contracts since theperiod of use is not clearly determined. Therefore, the Group does not recognize the asset retirement obligations for stores otherthan those that are planning to be closed.

14. INVESTMENT AND RENTAL PROPERTY
Certain consolidated subsidiaries hold commercial properties, including land, for rental in the Tokyo metropolitan area and otherareas. The net rental income in connection with these properties for the fiscal years ended March 31, 2016 and 2017, was¥5,320 million and ¥10,929 million ($97,580 thousand), respectively. For the fiscal year ended March 31, 2017, the Group
recognized ¥13,659 million ($121,955 thousand) of gain on sale of property and equipment, primarily land. The rental income
was included in revenue and the associated rental expenses were included in cost of sales and selling, general and administrative expenses. The carrying value and the fair value of such assets were as follows:
Millions of yen

Thousands of
U.S. dollars (Note 1)

2016

2017

2017

¥32,367
12,873¥45,240¥95,079¥ 45,240
41,008¥ 86,249¥159,321$  403,928
366,142$  770,080$1,422,508*1 Carrying value represents the amount on the consolidated balance sheets that is carried at the acquisition cost less accumulated depreciation.
*2 Major items are the increases due to reclassification of holding purposes of properties in the amounts of ¥12,900 million and ¥37,267 million ($332,741 thousand) for
the fiscal years ended March 31, 2016 and 2017, respectively.
*3 Fair value is based on the appraised value provided by third-party real estate appraisers.

120

Title and number of granteesType and number of shares to be issued upon
exercise of stock options
Granted date
Vesting conditions
Eligible service period
Exercise period(2) Asset retirement obligations other than those recognized on the consolidated balance sheets

Carrying value*1:
Beginning balance
Changes during the year*2
Ending balance
Fair value*3

Date of resolution

2013

2015

2016

June 27, 2012
7 Directors and5 Executive Officersof the Company
Common stock
52,000 shares
August 3, 2012
No provision
No provision
From April 1, 2013
to March 31, 2023

June 26, 2014
8 Directors and5 Executive Officersof the Company
Common stock
43,500 shares
July 11, 2014
No provision
No provision
From April 1, 2015
to March 31, 2025

June 25, 2015
4 Directors and
12 Executive Officersof the Company
Common stock
32,000 shares
July 10, 2015
No provision
No provision
From April 1, 2016
to March 31, 2026

The following table describes the scale and changes in stock options that existed during the fiscal year ended March 31,
2017. The number of stock options is translated into the number of shares.
Number of shares
2013

Before vested:
As of March 31, 2016
GrantedForfeited
VestedAs of March 31, 2017
After vested:
As of March 31, 2016
VestedExercised
Forfeited
As of March 31, 2017
Yen

Exercise price
Average exercise price
Fair value at granted date¥    1
1,481
485

2015

2016

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

2,600
—
2,600
—
—

2,100
—
2,100
—
—

32,000—30,600—1,400

U.S. dollars(Note 1)$0.008
13.22
4.33

Yen

¥    1
1,479
844

U.S. dollars(Note 1)$0.008
13.20
7.53

Yen

¥    1
1,577
1,589

U.S. dollars(Note 1)$0.00814.08
14.18

Since it is difficult to reasonably estimate the number of stock options that will expire in the future, the number of stock
options that were forfeited is shown as the number of vested options.

121Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

16. NET ASSETS

The following table summarizes the number of shares of common stock, issued and outstanding, and treasury stock:

Under the Companies Act of Japan (“the Act”), the entire amount paid for new shares is required to be designated as capitalstock. However, a company may, by resolution of the Board of Directors, designate an amount not exceeding one-half of theprice of the new shares as additional paid-in capital, which is included in capital surplus. The legal earnings reserve is included
in retained earnings in the accompanying consolidated balance sheets.
The Act provides that an amount equal to at least 10% of the amount to be disbursed as distributions of capital surplus(other than additional paid-in capital) and retained earnings (other than legal earnings reserve) be transferred to additional
paid-in capital and the legal earnings reserve, respectively, until the total of additional paid-in capital and the legal earnings
reserve equals 25% of the capital stock account.
Such distributions can be made at any time by resolution of the shareholders’ meeting, or by resolution of the Board of
Directors if certain conditions are met.
Under the Act, additional paid-in capital and the legal earnings reserve may not be distributed as dividends; the Act allows
all additional paid-in capital and all legal earnings reserve to be transferred to other capital surplus and retained earnings,
respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the unconsolidated financial
statements of the Company in accordance with Japanese laws and regulations.

Number of shares
2016

2017

Common stock, issued and outstanding:At the beginning of the year
		 Decrease due to retirement of treasury stock
At the end of the year

278,660,417—
278,660,417

278,660,417(45,000,000)
233,660,417

Treasury stock:
At the beginning of the year
		 Increase due to purchase of treasury stock in the stock market
		 Increase due to acquisition of stock through BIP Trust and ESOP Trust		 Increase due to purchase of odd lot shares
		 Decrease due to retirement of treasury stock
		 Decrease due to exercise of stock options
		 Decrease due to sale of stock to odd lot shareholders
At the end of the year

15,588,364
20,723,600
—
1,770
—
(43,400)—
36,270,334

36,270,334
12,966,300
502,300
1,178(45,000,000)(35,300)(62)
4,704,750

The following tables summarize the dividends paid for the fiscal years ended March 31, 2016 and 2017:2016
Resolution

Class ofshare

Total amount of dividend(Millions of yen)

Dividend per share (Yen)Annual general meeting ofshareholders held on June 25, 2015
Board of Directors’ meeting held on
November 6, 2015

Commonstock
Commonstock¥2,630

¥10

2,761

11

Record date

Effective date

March 31,
June 26,2015
2015
September 30, December 4,
2015
2015

17. CONTINGENT LIABILITIESThe Group has commitments to guarantee customers’ liabilities in relation to personal loans to individuals from financial institutions with which the Group has guarantee service arrangements.
As of March 31, 2016 and 2017, the amounts of the Group’s guarantee obligations were ¥23,018 million and ¥25,428
million ($227,035 thousand), respectively.

2017

Resolution

Annual general meeting ofshareholders held on June 29, 2016
Board of Directors’ meeting held on
November 4, 2016

Class ofshare

Commonstock
Commonstock

Total amount of dividend

Dividend per share(Thousands of(Millions of
U.S. dollars)yen)(Note 1)(Yen)

(U.S. dollars)(Note 1)

¥2,666 $23,803

¥11

$0.09

3,719

16

0.14

33,205

Record date

Effective date

March 31,2016
September 30,
2016

June 30,
2016
December 5,
2016

Note: The amount of dividend resolved at the Board of Directors’ meeting held on November 4, 2016 includes ¥8 million ($71 thousand) of dividend for the BIP Trust and
ESOP Trust.

18. COST OF SALESFor the fiscal years ended March 31, 2016 and 2017, cost of sales included the revaluation loss on inventories in the amountsof ¥94 million and ¥48 million ($428 thousand), respectively.

19. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the fiscal years ended March 31, 2016 and 2017, were as follows:
Millions of yen

Dividends with a record date during the fiscal year ended March 31, 2017, but with an effective date subsequent to thefiscal year ended March 31, 2017, were as follows:
Total amount of dividend
Resolution

Class ofshareAnnual general meeting ofCommonshareholders held on June 26, 2017 stock

Dividend per share(U.S.
dollars)(Note 1)

Record date

Effective date

¥3,900 $34,821 Retained ¥17 $0.15
earnings

March 31,2017

June 27,
2017(Thousands of(Millions of
U.S. dollars)yen)(Note 1)

Source(Yen)

Note: The amount of dividend resolved at the annual general meeting of shareholders held on June 26, 2017 includes ¥8 million ($71 thousand) of dividend for the BIP
Trust and ESOP Trust.

122

Advertisement
Provision for point card certificates
Provision for allowance for doubtful accounts
Salaries and allowances
Provision for bonuses
Rent
Depreciation and amortization
Other

Thousands of
U.S. dollars (Note 1)

2016

2017

2017

¥ 13,941
6,586
7,289
32,7703,513
15,782
8,614
41,920¥130,419¥ 12,425
9,181
9,610
32,0233,441
16,3088,960
42,760¥134,711$  110,937
81,97385,803285,919
30,723
145,607
80,000381,785$1,202,776

123

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

20. LOSS ON RETIREMENT OF PROPERTY AND EQUIPMENT AND LOSS ON CLOSING OF STORES

23. CASH FLOW STATEMENTS

Loss on retirement of property and equipment for the fiscal years ended March 31, 2016 and 2017, consisted of the following:

Reconciliations of cash and cash equivalents in the consolidated statements of cash flows to accounts and amounts in theaccompanying consolidated balance sheets as of March 31, 2016 and 2017, were as follows:

Millions of yen

Buildings and structures
Furniture and fixtures

Thousands of
U.S. dollars (Note 1)

2016

2017

2017

¥  546
1,374¥1,920¥  9881,930¥2,918$ 8,821
17,232$26,053

For the fiscal year ended March 31, 2017, the Group recognized ¥1,310 million ($11,696 thousand) of loss on closing ofstores, which primarily consisted of restoration costs involved in the closing of stores.

Millions of yen
2016

Cash and deposits
Time deposits with maturity in excess of three months
Cash and cash equivalents¥32,586(11)¥32,5752017¥36,257(11)¥36,245

Thousands of
U.S. dollars (Note 1)
2017$323,723(98)$323,616

24. SEGMENT INFORMATION
21. IMPAIRMENT LOSS

(1) Overview of reportable segments

The impairment loss recognized for the fiscal year ended March 31, 2017, is as follows:

The Group defines its reportable segments as a component of the Group for which separate financial information is available
and whose operating results are regularly evaluated by the Board of Directors to make decisions about how resources are to beallocated among the Group and assess their performance.
The Group consists of the following two reportable segments identified by products and services: “Retailing” and “FinTech.”
The Retailing segment engages in management of commercial property rental, retailing operations of clothes and accessories, store design, advertising, apparel distribution maintenance, and management of buildings and other facilities. The
FinTech segment engages in the credit card services, the consumer loans, and the rent payment guarantee businesses, IT systems, and real estate rental.

Use

StoresLocation

Kawasaki store
Kawasaki, Kanagawa, etc.

Thousands ofMillions of yen U.S. dollars (Note 1)

Type of assets

Buildings and structures
Other
Total

¥278
12
¥291

$2,482107$2,598The Group has grouped its fixed assets by either store or rental property, which is the minimum cash-generating unit.
The carrying value of each asset group is written down to its respective recoverable amount and in doing so is recognized as
an impairment loss.
The Group estimated the recoverable amount of each asset group based on value in use or fair value less costs to sell. If a
store reports continuous operating losses, the Group evaluates that the value in use of the store is zero since positive cash flows
cannot be expected in the future. If a store is planned to be closed or disposed of, the Group evaluates that the fair value lesscosts to sell is zero.
For the fiscal year ended March 31, 2016, the disclosure was omitted due to immateriality.

(2) Basis of measurement for the amounts of segment revenue, segment income or loss, segment assets, andother items
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “SIGNIFICANT ACCOUNTINGPOLICIES.”
Segment income is measured on the basis of operating income. Intersegment sales and transfers are accounted for basedon the prevailing market price.
Millions of yen
2016

22. COMPREHENSIVE INCOME
Millions of yen
2016

Valuation difference on available-for-sale securities:
Amounts incurred for the year
Reclassification adjustments
Before tax effect adjustment
Tax effect
Valuation difference on available-for-sale securities
Total other comprehensive income¥(2,117)(972)(3,089)491(2,598)¥(2,598)

2017

¥116
122
238
343
581
¥581

Thousands of
U.S. dollars (Note 1)
2017$1,035
1,089
2,125
3,062
5,187
$5,187

Revenue:
Outside customers
Intersegment
Total
Segment income
Segment assets
Other items:
Depreciation and amortizationIncrease in property andequipment and intangible assets

Retailing

Reportable segment
FinTechTotal¥163,231
6,159¥169,390¥ 10,658¥291,250¥ 82,636
2,539¥ 85,176¥ 23,094¥455,449¥  8,029
10,675Adjustment *1

Consolidated *2¥245,867
8,699¥254,566¥ 33,753¥746,699¥     —
(8,699)¥ (8,699)¥ (4,138)¥(16,572)¥245,867—¥245,867¥ 29,615¥730,126¥  1,653¥  9,683¥    (12)¥  9,670

2,448

13,124(684)

12,439*1 Adjustment to segment income consists of intersegment elimination of ¥1,534 million and corporate expenses of ¥(5,673) million that are not allocated to eachreportable segment. Adjustment to segment assets mainly consists of intersegment elimination of ¥(286,850) million and corporate assets of ¥268,207 million, whichmainly present the Company’s loans in connection with the Group’s cash management system.
*2 Segment income is reconciled to operating income on the consolidated statements of income.

124

125

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

Millions of yen
2017
Retailing

Revenue:
Outside customers
Intersegment
Total
Segment income
Segment assets
Other items:
Depreciation and amortizationIncrease in property andequipment and intangible assets

Reportable segment
FinTech

Total

Adjustment *1

Consolidated *2¥ 94,909
2,192¥ 97,101¥ 27,111¥536,050¥237,022
8,168¥245,190¥ 34,870¥833,656¥     —
(8,168)¥ (8,168)¥ (3,616)¥(27,081)¥237,022—¥237,022¥ 31,253¥806,575¥  8,422¥  1,759¥ 10,182¥    (61)¥ 10,121

14,3762,040

16,416(719)

15,696

Thousands of U.S. dollars (Note 1)
2017

Revenue:
Outside customers
Intersegment
Total
Segment income
Segment assets
Other items:
Depreciation and amortizationIncrease in property andequipment and intangible assets

Reportable segment
FinTechTotal$1,268,866
53,348$1,322,223$   69,276$2,657,196$  847,401
19,571$  866,973$  242,062$4,786,160$   75,196
128,357

Related party information where directors and their close relatives substantially own a majority of the voting rights is as follows:
2016¥142,113
5,975¥148,089¥  7,759¥297,606

Retailing

25. RELATED PARTY INFORMATION

Adjustment *1

Consolidated *2$2,116,267
72,928$2,189,196$  311,339$7,443,357$      —
(72,928)$ (72,928)$ (32,285)$(241,794)$2,116,267—$2,116,267$  279,044$7,201,562$   15,705$   90,910$    (544)$   90,366

18,214

146,571(6,419)140,142

Name ofcompany

Nakano Co., Ltd.

Seiwa Kogyo
Co., Ltd.

Location

Capital(Millions of yen)

Shinjuku,
Tokyo

¥10

Shinjuku,
Tokyo

¥10

BusinessRealestaterentalRealestaterentalVotingrightsRelationshipTransaction

Amount(Millions of yen)

Direct Property
0.9% rental
Concurrent
position as
director
Direct Property
0.7% rental
Concurrent
position as
director

Property
rental¥42

Property
rentalstores¥42

Account name

Balance(Millions of yen)

Leasehold andother deposits
Other current
liabilities¥41

Leasehold andother deposits

191

1

The monetary amounts above do not include consumption taxes. Terms and conditions for rental agreements are determined similarly to those of third-party transactions.
2017*1 Adjustment to segment income consists of intersegment elimination of ¥2,037 million ($18,187 thousand) and corporate expenses of ¥(5,654) million ($(50,482)
thousand) that are not allocated to each reportable segment. Adjustment to segment assets mainly consists of intersegment elimination of ¥(362,554) million($(3,237,089) thousand) and corporate assets of ¥335,571 million ($2,996,169 thousand), which mainly present the Company’s loans in connection with the Group’s
cash management system.
*2 Segment income is reconciled to operating income on the consolidated statements of income.

Name ofcompany

Location

Capital(Millions of yen)

Business

VotingrightsRelationshipTransaction

Nakano Co., Ltd.

Shinjuku,¥10 RealTokyo($89 thousand) estate(Note 1) rental

Direct Property
1.0% rental
Concurrent
position as
director

Property
rentalSeiwa Kogyo
Co., Ltd.

Shinjuku,
10 RealTokyo($89 thousand) estate(Note 1) rental

Direct Property
0.7% rental
Concurrent
position as
director

Property
rentalstoresAmount(Millions of yen)Account name

Balance(Millions of yen)

¥42 Leasehold and($375 thousand) other deposits(Note 1)Other current
liabilities¥41($366 thousand)(Note 1)
1($8 thousand)(Note 1)32 Leasehold and191($285 thousand) other deposits ($1,705 thousand)(Note 1)
(Note 1)

The monetary amounts above do not include consumption taxes. Terms and conditions for rental agreements are determined similarly to those of third-party transactions.

Change in reportable segments
The Group previously classified its business segments into three reportable segments: “Retailing and Store Operation,” “Credit
Card Services,” and “Retailing-Related Services.” In order to further improve its corporate value through integrated Group
operations, the Group redefined and reorganized its business segments into two reportable segments: “Retailing” and “FinTech.”
The segment information for the fiscal year ended March 31, 2016, was restated based on the current classificationof segments.
Disclosures on related information with regard to the concentration of products and services, location, and major customers
have been omitted since there was no relevant information to be disclosed.
For the fiscal years ended March 31, 2016 and 2017, an impairment loss of ¥107 million and ¥291 million($2,598 thousand), respectively, was reported by the Retailing segment.

126

127

Notes to Consolidated Financial Statements

26. PER SHARE INFORMATION
Net income per share, both basic and diluted, for the fiscal years ended March 31, 2016 and 2017, is as follows:Yen

Net income per share
Diluted net income per share

2016

2017

¥70.6870.67¥80.24
80.24

U.S. dollars (Note 1)
2017

$0.71
0.71

Thousands of shares

Weighted-average number of outstanding shares
Diluted shares:
Assumed exercise of stock options

2016

2017

251,434

233,346

27

8

Net income per share is computed based on the net income attributable to shareholders of common stock and theweighted-average number of outstanding shares.
For the computation of net income per share and diluted net income per share, the number of shares held by BIP Trust and
ESOP Trust is deducted from the weighted-average number of outstanding shares (293 thousand shares for the fiscal year
ended March 31, 2017).

27. SUBSEQUENT EVENTAt the Board of Directors’ meeting held on May 11, 2017, the Company resolved to acquire treasury stock in accordance with
Article 156 of the Companies Act as applied with relevant changes in interpretation pursuant to the provisions of Article 165,
paragraph (3).
Reason for acquisition
Based on the medium-term business plan to be achieved by the fiscal year ending March 2021, the Group aims to achieve
profitable growth by innovating Group business and integrating operations in light of potential changes in the business environment. As its financial strategy, the Group will effectively utilize basic operating cash flows that will be generated in the next five
years in order to optimize capital structure for the business; thus, the Group will enhance investment growth and shareholder
return. The Group will improve its corporate value by achieving the following targets: an ROE of 10%, an ROIC of 4%, and an
EPS of ¥130 as early as possible.
Based on these Group strategies, following the acquisition of treasury stock in the total amount of ¥20,000 million($178,571 thousand) in the fiscal year ended March 31, 2017, the Company resolved to acquire treasury stock as follows:(i) Class of shares(ii) Maximum number of shares to acquire(iii) Maximum amount for acquisition(iv) Acquisition period

128

Common stock
12 million shares (5.24% of total outstanding shares)¥15,000 million ($133,928 thousand)From May 12, 2017 to March 31, 2018