w w w. d a j . j p

2015 Annual Report

April.01.2015 - March.31.2016
TSE -1st/Code:2326

Report2015 Annual

To Our Shareholders

April.01.2015-March.31.2016

Contributing to a more convenient,
comfortable and safe internet life

I would like to extend my sincere gratitude for your continued support

Our Group will continue its advancement as a software maker by

and understanding.

contributing to meet global information security needs and creating a

It is my pleasure to present you with our FY3/16 (April 1 2015 throughmore secure future for the information society.

March 31 2016) consolidated results.

Internet is an integral part of today’s social infrastructure
That supports and sustains our everyday lives.

Since the foundation of Digital Arts, we have continually addressed

As we work to achieve these goals, we would very much appreciatesecurity measures to prevent internal leaks of confidential information,

your continued support and encouragement.

and today, our mainstay solutions respond to risks in the three coreareas of IT usage—web (browse), emails (send/receive/store), andfiles (create/store/share outside the organization).
FY3/16 was a year that showed a strong interest in the value of
reliable information security. While diverse and complicated threats,
including viruses, unauthorized server access, and leaking information

Then the question is:“Who looks after internet moral and cyber safety?”from within, encompass corporations and organizations, we also saw
a wider use of cloud and mobile and the need to comply with various
security law and regulations. Domestically, in addition to conventional
information security products designed to block targeted attacks fromTo s h i o D ogu
C hi e f E x e c u t iv e O ff ic e r
Dig it a l A r t s In c .

third parties, expectations centered on solutions to prevent internalleaks of confidential information, which led to the Group reporting
FY3/16 consolidated results with an all-time high sales and profits.

In the modern world where every aspect of our lives are connected to the internet,
Maintaining internet safety is essentially equivalent to protecting the society.

For FY3/17, our focus is to drive higher order from large companies.
We have launched a new initiative to offer professional consulting
services and will continue to support local municipalities in complying
with a policy for strengthening local government security issued by the
Ministry of Internal Affairs and Communications.
Overseas business went into full-fledged operations in FY3/16 andAs an information security company,
Digital Arts Group and its employees come together to look after

achieved positive results notably in marketing and branding by the
US-based subsidiary FinalCode, Inc. Furthermore, we completedorganization building for FinalCode Asia Pacific Pte. Ltd. andFinalCode Europe Limited. With this, we are ready to extend our
professional sales and support services on a global level.

The safety and wellbeing of internet users on every level.

1

Our M i s s i o n

T o Our Shareholders

2

Report2015 Annual

CEO Interview

April.01.2015-March.31.2016

Digital Arts continues to develop exceptional products
and strengthen alliance with solution providers to bringa more comprehensive range of security solutions
Question

FY3/16 Domestic Operations

Question

FY3/16 Overseas Operations

Question

FY3/17 Domestic Operations

Question

FY3/17 Overseas Operations

Answer

FY3/16 showed a strong interest in advanced

AnswerOverseas operations fell slightly short of period-start

Answer

The Group will continue to recruit new large corporate

Answer

The global information security market is said to be ten

information security measures. Amid diverse threats encompassing

guidance, however on the bright side, the Group successfully obtainedclients in the Enterprise and Public segments. In addition totimes the size of that of Japan and in order to seize this market, thecorporations and organizations, expansion in mobile and cloud usage,

its first overseas orders in FY3/16. In the end, it acquired 14 contracts

collaborative solutions with FireEye, which contributed greatly to FY3/16

Group will continue to enhance operations to deliver qualified sales andand the need to comply with security regulations, expectations centered(five local firms and nine Japanese-affiliated firms). While sales volume

figures, the Group introduced a new consulting service. Major corporate

support services on a global scale. US-based FinalCode, Inc. takeson the Group’s core business-- security measures to prevent internal

for each deal is still small, some show potential to develop into full-scalecustomers seek dedicated and professional consulting service in order

initiative to further drive digital marketing and distributor recruitment inleaks of confidential information. Our mainstay i-FILTER expanded

deployment. Furthermore, the Group made notable progress into accept and deploy solutions on a global scale. Digital Arts Consulting

North American to build up local deals via partner cultivation. New sales

17.6% and FinalCode posted upbeat domestic sales, resulting in amarketing activities. US-based FinalCode, Inc. moved up to no.46 on

Inc. was established to address such group-wide needs where their

networks are being established in Singapore, Australia and New Zealandconsolidated net sales of ¥4,000,620 thousand (117.6% YoY). Web

the Cybersecurity 500 ranking of the hottest and most innovativevalue-added guidance and proposals will contribute to accelerated

via recruiting partners. European corporations and organizations are now

security product i-FILTER increased new accounts with a collaborative

cybersecurity companies for 2016 (published by Cybersecurity

business with large entities. In the Public segment, a policy forrequired to tighten control on material information in light of reinforced

option with FireEye for instantaneous protection against targeted

Ventures). In addition, FinalCode, Inc. received prestigious awards thatstrengthening local government security issued by the Ministry of

personal information protection within EU. There is expected to be an

attacks. This option was installed by large companies seeking effective

helped to raise its presence in the global market, leading to an evenInternal Affairs and Communications initiated a movement to strengthenincrease in demand for advanced security measures in this market,

protection against multi-faceted and high-level risks. There was asolid foundation for sales and marketing operations going forward.

security in the municipalities. The Group will meet their security needs

therefore personnel

growing demand for FinalCode, the ultimate file encryption and tracking

through joint sales activities with various solution partners. In thehiring and organization

solution, due to a series cyber incidents, such as targeted attacks andConsumer segment, the Group continues to expand “i-FILTER forbuilding is one of theSmartphones” through collaboration with mobile carriers and otherGroup’s top priority

business partners.

tasks.

intentional information leaks from within. As FinalCode orders

Question

FY3/16 Investments

4Q, orders recorded

AnswerMajor development activity from the preceding fiscal

in FY3/16 was ¥110

year came full circle, which accounted for a drop in cost of sales. COGS

million, however orderand SG&A increased approximately ¥500 million owing to strategic

volumes reachedconcentrate in 3Q and3

Aim for higher orders from large companies by leveraging
professional consulting service, branding on a global scale,and qualified sales and support

C E O Inter view

Question

FY3/17 Forecast and Dividends Policy

upfront investments for overseas business (approximately ¥300 million),

Answer

The Group guides for net sales at ¥4,600 million,

growth and R&D, it also recognizes the importance of maintaining an¥17 m i l l i o n . T h i s

personnel additions in Japan, and expenses related to distributor events

operating income at ¥1,400 million, and net income attributable tooptimal balance between the performance-based payout and stablew a s a significant

and other initiatives. However, upbeat in domestic sales (¥597 million

owners of parent at ¥870 million in FY3/17. The Group recognizes thereturns. Upon comprehensive consideration of FY3/16 results, financial

breakthroughincrease YoY) absorbed these costs to record an operating income of

return of profits to shareholders as one of the most important

standings, and future business developments, the Group will use acompared to previous¥1,006,925 thousand, a ¥141 million (116.4%) increase from the

management tasks. While the Group retains an appropriate amount ofconsolidated payout ratio of approximately 30% as a guide. The amountyears.

preceding period.

internal reserves to invest in business areas with potential for futureof annual dividends for FY3/17 will be 20 yen (forecast) per share.
C E O Inter view

4

Report2015 Annual

Enterprise & Public

April.01.2015-March.31.2016

Topic

Major deals via collaborative solutions with third-parties
Significant growth in i-FILTER BROWSER & CLOUD and FinalCode

Market Summary
ENTERPRISE&
PUBLICEnterprise

PublicNet sales to the corporate market grew 17.9% YoY
t o ¥ 2, 2 4 0 , 0 8 9 t h o u s a n d. T h e G r o u p s t e a dil y
expanded business with its main offerings i-FILTER,
m-FILTER, and FinalCode. As corporate earnings recovered andlarge enterprises began investing heavily on information security,
i-FILTER / m-FILTER alliances with other solutions captured theneeds to combat diverse and advanced risks. This led to acquiring
major new deals. In addition, i-FILTER Browser & Cloud was
installed by financial institutions and FinalCode was deployed bybusinesses taking quick action on security measures amid a seriesof frequent security incidents. As a result, net sales for these two
products saw a sharp increase.

Enterprise Net Sales

FY2015¥2,240 million(hundred million yen)

22.40

25

15

14.29

14.36

5

Enterprise & Public

2014/3

2015/3

2016/3¥1,418 million

14.18

16

10

5

2013/3

FY2015(hundred million yen)

12

16.37

10

2012/3Public Net Sales

14

18.99

20

Net sales to the public-sector increased 24.4% YoY to¥1,418,060 thousand with mainstay i-FIL TER and FinalCodee x hibiting he alth y gains. Similar t o the En t er pr is e mar k e t,
a c quisi tion o f ma jor ne w de als ma t er ializ e d tha nk s t o thecollaborative effect of i-FILTER with other solutions. i-FILTER
Browser & Cloud was installed widely by schools andeduca tion boar ds in r esponse to a drive f or ICT educa tion,
the use of tablet devices in the classrooms. Under thepressing need to combat targeted attacks and data
disclosur e fr om within, i-FIL TER Br owser & Cloud was also
installed widely by local municipalities, which contributed topush up sales significantly.

11.52
9.97

11.40

FinalCode initiates collaborative option with Box,a global cloud service platform
The ultimate file encryption and tracking solution, FinalCode, is now

FinalCode's strong file encryption,

available on Box, a cloud file sharing and collaboration platform.

dynamic permission setting and

FinalCode for Box ensures persistent file access, usage control directly

lifecycle activity tracking even after

invoked within the Box interface. Users can confidently share files withthe files leave the Box container.

Topic

i-FILTER Ver.9.3 released with options to connect to SIEM software,
NICT database and education assistance features
Designed for corporations and the public-sectors striving to

educate. This version supports various SIEM products, suchprevent data leakage and strengthen internal control, the latest

as Splunk, in response to increasing client demands to deploy

i-FILTER Ver.9.3 comes with enhanced features that highlight

SIEM software for persistent correlation analysis of systemthree key elements of information security: detect, defend, andlogs and real-time anomaly detection alerts.

Enterprise & Public : Net Sales by Product0
2009/3
2010/310.28

2011/3

5

10

i-FILTER/i-FILTER Browser & Cloud

15

14.6

1.2

17.2

20

30

3.3

0.9

24.27

6

2013/3

21.6

3.5

0.6

4

2014/3

21.2

4.1

1.1

2

2015/3
2013/3

2014/3

2015/3

2016/3

22.9

25.88

5.7
26.9

(hundred million yen)
40

20.47

2012/3

2016/335

FinalCode

19.00
2.6

20.0

25

D-SPA

15.95
1.7

17.7

m-FILTER/m-FILTER MailAdviser

8

2012/3

files secured by

26.66
30.39

1.4
6.4

1.9

1.1

36.58

Enterprise & Public

6

Report2015 Annual

ConsumerOverseas Operations

April.01.2015-March.31.2016

Asia Pacific and Europe enhance operations to deliver
optimal solutions for global corporations

Topic

Digital Arts expands to Asia Pacific and Europe
Established sales/support operations to better serve leading global companies

i-FILTER for MULTI-DEVICE maintained strong sales
Digital Arts among the first to serve growing MVNO venders

Market Summary

Net sales to consumers totaled ¥342,470M (94.4%

CONSUMER

YoY). i-FILTER for Smartphone recruited andexpanded partnership opportunities, however resulted

in a decrease in revenues mainly on a steep decline in domestic PC
shipment volume and termination of alliances with several ISPs. On

Digital Arts established subsidiaries in Asia Pacific and Europe for

Digital Arts will continue to offer products and services to global

the purpose of enhancing operations for overseas sales andcorporations and public-sectors in the regions operated by our

support.

international group offices in realizing the corporate vision tosales of i-FILTER for Multi-Device that can filter up to three devices

The Group has had a strong client base with small-to-medium

make a “Made-in-Japan solution a global standard”.

on multiple OS (Windows® OS, iOS, AndroidTM) with a single serial

an overall basis, the consumers segment held firm due to upbeat

domestic businesses and has continuously maintained a large

ID. This was an effective solution to reduce stress in managing filter

share in the domestic market.

settings across multiple devices. Moreover, sales also increased at a

Considerable enhancements to its products in recent years madeit possible to offer more advanced provisions against information

FinalCode Europe Limited

FinalCode, Inc.
Digital Arts Inc.
Digital Arts Consulting Inc.

robust pace thanks to a healthy build-up of sales for a portable gameplayer launched in the preceding fiscal year.

Consumer Net Sales

FY2015¥342 million(hundred million yen)

4.0
3.5
3.0

2.80

3.18

3.61

3.62

3.42

2014/3

2015/3

2016/3

2.5
2.0
1.5
1.0
0.5

2012/3

2013/3leak demanded by large companies, which led to a prominent
movement for major corporations to consider the Group’s
solutions as a choice to be installed as a global tool. Alternatively,Topicestablishing sound operations for overseas sales and support is a

i-FILTER for MULTI-DEVICE for MVNO Vendors

top priority task in order for clients to feel confident when
installing the Group’s products.

In light of smartphones being widely used by minors and that

also advised to confirm if the user is a minor, offer explanations

To accommodate these needs, the Group established FinalCode Asia

these devices are available to children at a younger age, theon filtering service, and confirm with a parent to remove filtering

Pacific Pte. Ltd. and conducted operational building for FinalCode

Telecom Services Association MVNO Committee, where ICT

service, if necessary. i-FILTER for Consumers is certified as one ofEurope Limited. It will initially focus its efforts on North America,

companies are a member, issued a “policy to equip filtering

the most effective filtering service for mobile device.

Europe and Asia Pacific, then gradually broaden the business toservices to MVNOs used by minors” in March 2016. As general

Digital Arts Group continues to promote the importance of filtering

regions with high demand for its ultimate goal is deliver superior

mobile carriers selling smartphones and feature phones over thesolutions for minors and raise awareness of i-FILTER to create acounter already follow this procedure, MVNO businesses are now

society where people can feel safe to connect to the internet.

“Made-in-Japan” quality and refined support on a global level.
7

Global Operations

FinalCode Asia Pacific Pte. Ltd.

Consumer8

Report2015 Annual

Corporate Social Responsibility

April.01.2015-March.31.2016

Delivering Value in the Connectivity Era
W h e t h e r i t b e b u s i n e s s c o n f i d e n c e , t h e r i g h t s c h o o l e d u c a t i o n , o r a s m i l e o n a c h i l d ’s f a c e ,The role we play sees no end in an era wh ere inter net is an integral part of our lives.
Digital Arts realizes a convenient, com fortable and safe inter net experience
For peace of mind in a soci ety connected to the world.

PromotingPublic AwarenessEducating
The Future Generation

Conducting
Research and Surveys

Collaborating with
Government Agencies & Ministries

Supporting The Growthof The Security Industry

Promoting
Eco-Consciousness

Fostering a safe and secure internet
environment and smartphone usage
is one of our core missions. Digital Artsdelivers lectures and presentations
on these topics that are tailored tothe audience, such as parents,
educators, and students.

It is important to be equipped withinformation literacy early on to makethe best use of the inter net anddevelop a great career. Digital Arts
offers various learning opportunities
to adequately prepare our young
leaders of the next generation.

How do young people actually use internet
and smartphones? Do we see a change incorporate awareness levels on information
security? Digital Arts conducts regularresearch to advocate common issues thatencompasses the internet society.

Change for a safer internet society. Teaming withgovernment agencies and ministries makes thispossible. Digital Arts is an active member ofvarious working groups to promote information
security in corporations and the public-sector.

Security measures are persistently
updated to match the current trends.
Digital Ar ts works with various
gover nmental units and industrial
groups to increase security awarenessby providing valuable insight as an
information security company.

Protecting our planet is as
important as maintaining
i n t e r n e t s e c u r i t y. A s a n
information security company,
Digital Arts employees conserve
energy on various IT equipment
we use every day and expands
its environmental efforts to thecommunity.

●

9

Deliver off-site lectures on information literacy forteachers, parents and children (110 visits in FY15)●

Distribute free materials on cyber/information security●

Issue e-newsletters on the latest in information security

Corporate Social Responsibility●●

Contribute to various events e.g. Workshop Collection
and Manabi Festival.
Conduct house tours for visiting schools (8 schools in FY15)●●

Study how minors actually use the internet and smartphones
Survey corporations on their awareness and measures taken
towards information security issues

●

●

●

●

Participate in Tokyo Campaign to Set Internet Rules for Children (Tokyo
Metropolitan Government)
Support Educating Information Morale for Children Project (Ministry of
Education, Culture, Sports, Science and Technology)
Participate in National Campaign to Protect Juveniles Against Harmful
Information Environments (Cabinet Secretariat)
Engage in active memberships of various professional institutions●●●

Sponsor CODE BLUE
Sponsor 20th Shirahama Cyber Crime Symposium,
Information Security Workshop in Echigo Yuzawa, Cyber
Security Symposium in Dogo●

Drive energy-saving efforts by employees

Support IPA Information Security Slogan and Poster
ContestCorporate Social Responsibility

10Consolidated Financial Statements
Consolidated Statements of Income

Consolidated Balance Sheet
Assets￥1,006 million

Operating Income￥ 994 million

Ordinary Income

1,200

4,000

4,500

117.6％ YoY

4,000

3,000

2,707

2,906

865

4,262,613

Cost of sales

974,644926,0942,942,965

Gross profit

2,428,046

3,074,526

Accounts receivable-Trade932,503

1,081,626

Selling, general and administrative expenses

Securities

300,872

100,909928

413

67,18273,813Non-operating expenses
Ordinary income

Finished goodDeferred tax assets

600

1,500

500

2012/3

2013/3

2014/3

2015/3

2016/3109.2％ YoY

1,000

726

600

Property, plant and equipment
Buildings

565￥ 545 million
545

600

531

550

102.8％ YoY

500

399

400
350
300

0

（million yen）

Total income taxes

377,186

452,707

72,552

Net income

531,292545,983

Construction in progress

14,125－

Net income attributable to owners of parent

531,292545,983

935,674995,526

Software810,653

821,395

Other

125,021

174,131590,459

748,462

Investment securities

299,559

404,099
48,356100

100

Total assets

5,749,229

6,133,859

2015/3

2016/3￥ 4,642 million

Net Assets

4,642

5,000

108.0％ YoY

4,297

4,500

0

（million yen）

2012/3

2013/3

2014/3

2015/3

2016/3￥ 6,133 million

Total Assets

Liabilities

8,000

2016/30（million yen）

6,133

5,749

6,000

5,000

4,000

4,101

4,562

106.7％ YoY

4,873

2015/3

2016/3

266,542

283,949

96,743109,975

Advances received

675,395

721,033

261－

Asset retirement obligations

0（million yen）

Asset retirement obligations
Other

Shareholders’equity

2013/3

2014/3－363,797

327,288

42,58743,734

42,13243,089455

645

1,451,309

1,491,826

2015/3

2016/34,202,938

4,582,547

Capital stock

713,590

713,590

Capital surplus

735,847

766,234

Retained earnings

2,896,517

3,220,233

Treasury stock△ 143,017△ 117,511

Accumulated other comprehensive income

10,504

1,208

Foreign currency translation adjustments

10,504

1,208

84,47758,278

Total net assets

4,297,919

4,642,033

Total liabilities and net assets

5,749,229

6,133,859

Subscription rights to share
2012/3

2,263

Net Assets

1,000

2014/3

Income taxes payable
Provision for bonuses

Total liabilities

3,000

2013/3

5,844

Non-current liabilities

3,212

2012/3

1,448,091

3,720

Other

7,000

3,568

1,408,722

Account payable-Trade

Deferred tax liabilities

3,876

500

2015/3998,691

56,7692,000

2014/3

908,479

239,237

1,000

2013/3

Income before income taxes

170,4281,500

2012/344,090

Other

150

50

1,960

57,243

200

2,000

100

1,941

200

2,500

200

Extraordinary losses

57,9053,000

250

127,257

62,565

3,500

310

6,340

145,117

Shares of subsidiaries and affiliates

4,000

444

450

994,311153

10,614Current liabilities

Net Income Attributable to
Owners of Parent

910,268

Extraordinary income

Deferred tax assets

2014/3

20,44062,884300

2013/37,826

131

1,871,246300

2012/345,315102,958400

01,006,925

Non-operating income

1,671,251

400（million yen）

2,067,600

865,084

0Investments and other assets

500

1,562,962

Operating income

73,748Intangible assets

659

Net sales

Tools, furniture and fixtures

Vehicles

910

700

500

1,000

994

1,100

800

653

587

Non-current assets

900

736

700

2,000

0

116.4％ YoY

1,000

800

3,027

2,500

（million yen）

1,006

1,100

900

3,402

3,500

1,200

2016/34,000,620

2,673,533

Other
5,000

(thousands of yen)

4,077,978Cash and deposits￥ 4,000 million

2015/3
3,402,691

2016/3Current assets

Net Sales(thousands of yen)

2015/3

Consolidated Statements of Cash Flows(thousands of yen)

Cash flows from operating activities
Cash flows from investment activities
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents

2015/3
1,355,392△ 848,019△ 119,893
30,287

2016/3
1,027,287△ 441,185△ 187,807△ 28,799

Increase (decrease) in cash and cash equivalents
Cash and cash equivalent at beginning of period

417,767
1,656,613

369,494
2,074,381

Cash and cash equivalent at end of period

2,074,381

2,443,875

Consolidated Statement of Changes in Net Assets (April 1,2015 〜 March 31,2016）(thousands of yen)
Accumulated othercomprehensive income
Total
Foreign accumulated
Total
Share
currency
Total
other
Capital Capital Retained Treasury sharesubtranslation
netcompre- scription
stock surplus earnings stock holders’adjustassets
hensiveequityrightsments
incomeShareholders’equity

Balance at
beginning ofcurrent period
Changes of
items during
the period
Cashdividends
paid

713,590735,847

Net income
attributableto ownersof parent
Disposalof treasurystock

2,896,517△ 143,017

4,202,938

10,50484,477

4,297,919△ 222,267△ 222,267△ 222,267

545,983

545,983

545,983

55,89255,89230,38725,505

Net changesof items otherthan those inshareholders’equityTotal changes of
items during theperiodBalance at
end ofcurrent period

10,504△ 9,295△ 9,295△ 26,199△ 35,495－

30,387323,716

25,505

379,608△ 9,295△ 9,295△ 26,199

344,113713,590766,234

3,220,233△ 117,511

4,582,547

1,208

1,208

58,2784,642,033

Stock Information As of March 31, 2016

Corporate Outline As of March 31, 2016

Stock Overview(shares)

Total number of authorized shares

45,036,000

Total number of shares issued

14,133,000

Number of shareholders

5,784(shares)Number of Shares Held Shareholding Ratio(shares)（％）

Company Name

Digital Arts Inc.

Financial Institutions

3,967,100

FoundedJune 21, 1995

Foreign Investors

1,834,850

Hokkaido Sales Office

Domestic Investors

1,052,100

Tohoku Sales Office

Security Companies

343,294

14F Otemachi First SquareWest Tower
1-5-1 Otemachi, Chiyoda-ku,
Tokyo 100-0004, Japan

14,133,000

25.32

Domestic Investors

1,558,400

11.19

26
7.44％

DAM Corporation

680,000

4.88

The Master Trust Bank of Japan, Ltd.
(Trust Account)

590,500

4.24
3.33

416,700

2.99

MSIP CLIENT SECURITIES

359,400

2.58

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

253,800

1.82

DA Corporation

150,000

1.08

DM Corporation

150,000

1.08

Security Companies
30
2.43％

Foreign Investors

Treasury Shares

75
12.98％

1
1.43％

3,000

Noriyuki Takahashi

FinalCode, Inc.

Foreign Investors
Individual
and Others

Domestic Investors

Auditor

Shuichi Kubokawa

AuditorMasataka Uesugi

April 1 through March 31 of the following year
June

Share Unit

100 Shares

Volume(shares)Record Dates

Voting Rights at Annual Shareholders Meeting March 31
Year-End Dividend
March 31
Interim Dividend
September 30

9,000,000

Shareholder
Registry
Administrator

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

Mailing Address

2-8-4 Izumi, Suginami-ku, Tokyo 168-0063, Japan

Inquiry

Sumitomo Mitsui Trust Bank, Limited
Transfer Agent Department
TEL: 0120-782-031 (toll free)

1,000

3,000,000

500

1,500,00012

2016/12

30

Kansai Chushikoku
Sales Oﬃce

Chubu
Sales Oﬃce

TohokuSales Oﬃce

Head Oﬃce
IQS' Co., Ltd.
Digital Arts Consulting Inc.

Shareholder Memo
Annual General
Shareholders
Meeting

4,500,000

11

FinalCode Asia Pacific Pte. Ltd.

KyushuSales Oﬃce※‌Digital Arts Consulting Inc. wasestablished on April 1, 2016.

Fiscal Year

5,629
47.65％

1,500

10

Subsidiary - Singapore

Shuji Wakai

Individual and Others

6,000,000

9Digital Arts Investment, Inc.

Full-time Auditor

2,000

8

Digital Arts America, Inc.
Toshio Dogu

23
28.07％

Treasury Shares

7

Board of Directors

Subsidiary - UK

Financial Institutions

FinalCode Asia Paciﬁc Pte. Ltd.

Subsidiaries - USA

FinalCode Europe Limited

7,500,000

6

IQS' Co., Ltd.
Digital Arts Consulting Inc.

Director

Hokkaido
Sales Oﬃce

Subsidiaries - Japan

Noriyuki Ogaki

Volume5

Kyushu Sales Office

192

Chief Executive Officer

Digital Arts America, Inc.
Digital Arts Investment, Inc.
FinalCode, Inc.

Group Companies

Hidenobu Akazawa

Stock price2015/4

Chubu Sales OfficeDirector

2,500

0713,590,262 yen

Number of Employees

FinalCode Europe Limited

Kansai Chushikoku Sales OfficeDirector

Stock Information
Stock price(yen)

Develop and market internet
security software andappliances

Primary Business

Sales Offices

Financial Institutions

Security Companies(Note) Shareholding ratio excludes treasury stock (201,800 shares).

Head Office

Capital3,527,110

464,100

201,800

Total

Japan Trustee Services Bank, Ltd.
(Trust Account)

BNYM TREATY DTT 10

Locations

6,733,850

Toshio Dogu

Japan Trustee Services Bank, Ltd.
(Trust Account 9)

Corporate Overview

Individual and Others

Treasury Shares

Principal Shareholders
Names

Composition of Shareholders

Method of Public
NoticeElectronic public notices (http://www.daj.jp/ir/); provided,
however, that in the case where an electronic public notice isimpracticable due to an accident or any other unavoidable
reason, the same public notice may be given in The Nikkei.
※‌Balance sheets and statements of income are available on the
Digital Arts corporate website.
http://www.daj.jp/ir/finance/bs_pl/

D ig it a l A r t s I n c .
14F Otemachi First Square West Tower1-5-1 Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan
TEL
03-5220-1160
FAX 03-5220-1060
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registered trademark of Cisco Systems, Inc. FireEye is a trademark or registered trademark of FireEye,
Inc. Splunk is a trademark or registered trademark of Splunk Inc. Windows is a trademark or registeredtrademark in the United States and/or other countries. Corporate names and product names
mentioned in this Annual Report are registered trademarks or trademarks of the respective
companies.