15 May 2014
To whom it may concern
Showa Holdings Co., Ltd.
Tatsuya Konoshita,
Representative Executive Officer and CEO(Code 5103 Tokyo Stock Exchange)
Contact: Tomohiko Shoji, Executive Officer(Tel: 04-7131-0181)

Explanation of Financial Results of March 2014 and Future Objectives
Overview
We have disclosed our March 2014 Financial Results as of today. I, Tatsuya Konoshita,
Representative Executive Officer and CEO, will brief our shareholders and concerned parties on thedisclosure as well as future objectives.
The results were increased sales and profit decline, with 8.7 billion yen in sales volume and 43
million yen in net losses. I deeply regret the results. Please allow me to give my sincerest apologies
as the person in charge of managements.

Overview of Showa Holdings（1,000 yen）
March 2012

March 2013

March 2014

5,956,939

7,405,635

8,703,648

Operation Income

366,803758,592

413,455

Ordinary Income

1,945,905

928,812

482,056

Current Net Income

2,037,122

101,436-43,363

Sales Volume

Please allow me to explain our company’s current financial results and the future objectives of eachbusiness.
① Finance Business
The fast growing finance business* is now in the investing stage of expansion throughout
Southeast Asia. We are taking conservative measures due to the economic conditions in Thailand. Inthe March 2013 period, we have acquired growth in sales volume from the increase of outstandingloans derived from the expansion of business. On the other hand, overtime pay of our major
customer segment, which are factory workers, have declined due to the worldwide economic
slowdown which greatly affected the manufacturing industry in Thailand. Other than that, thedeclination of used motorcycle prices and increase of allowance for bad debts have squeezed ourprofits. Ongoing costs derived from the establishment of the Cambodian business have also beensqueezing on profits.

Measures: In March 2015 as well, the Thailand oriented portfolio structure will shift to the entire
Southeast Asia with increased outstanding loans in new fields, progressing to a diversified andexpanded portfolio. March 2014 will be the bottom line and profits are estimated to increase inMarch 2015.
ThailandMeasures: Rather than expanding sales in the future, we will continue to focus on the quality ofour portfolio, and increase profits with the foundation of expanded outstanding loans.
・ The March 2014 period has been affected by the unstable politic conditions in Thailand and theworldwide economic slowdown. The progress of these situations will factor the outcome ofresults.
・ We will not be aiming for the increment of outstanding loans in Thailand for the mean time, andwe are estimating a small decrease or no fluctuations. Therefore, sales are also estimated todecrease slightly or stay static.
・ Along with the above, the changeover of portfolio from the tightening of screenings in Thailand
is in progress and appropriated allowances will decrease from the 4th quarter onwards. Thistrend is anticipated to continue in the future.
Cambodia
Measures: Expansion of business network came to an end and the entry into the agricultural
machinery lease was completed. From here on, we will utilize our business network to expand
our business aggressively.
・ The expansion of business network and publicity at each sales office are progressing andnumbers of new contracts are steadily increasing. It is estimated that it will contribute toearnings in 2015.
・ Continued extremely low non-performing-loan rates compared to Thailand and profitability is
estimated to be higher than Thailand.
・ The agricultural machinery lease is a new sector but contracts are steadily concluded. Profits
will be included from this year onwards.
＊ The sales volume, operating income and ordinary income of the finance business is 100%
consolidated, but due to the equity ratio, only 20% of the net income is accounted for.

② Rubber Business
The rubber business operated by our wholly owned subsidiary is in a poor state with timeneeded for investments in new products. The mentioned business provides anti corrosion rubber
lining services for plants, manufactures industrial rubber products for industrial machineries, andconsumer based products used in the pharmaceutical section. The business has been performing
poorly since the late 1970’s.
Even in the 2000’s, new products could not be sold in the long run. The new products of thebusiness usually take a long amount of time for quality testing and so on, therefore it may takea few years and sometimes up to 5 years before hitting the market. Therefore, ratio of newproducts is still low this year and the changeover of product portfolio not only has not progressed,
but also contracting.
Measures: Continue the research and development of new products in the long term, hasten
decision makings to strengthen sales after products enters the market and expand business in
the ASEAN region in addition to the reinforcement of the current measures with the aim forrecovery in the medium term. We will accomplish the renewal and expansion of our productportfolio with the above measures.
・ The sales of the mentioned business in Japan have a close linkage with the trend of private
investment in plants and equipment and the future economic conditions in Japan from policies
such as the Abenomics, may affect the results.
・ Under the stable management structure for the past 6 years, the continued research anddevelopment of new products is estimated to contribute to earnings in the second half of theMarch 2015 period.
・ Our subsidiary in Malaysia is operating the rubber lining business. As informed, we have beenyielding excellent results in the 4th quarter under the new managements, and is estimated tocontinue in the future.
・ We aim to expand our business with the new business alliance with Tokiwa Rubber and ouroffices in Thailand, Malaysia and China.

③ Sports Business
Our wholly owned subsidiary operating the sports business has an increasing trend in sales
volume and profits. The soft tennis related business, which is the founding business of thecompany, has been progressing firmly, with the re-entrance into the tennis market growing
steadily. It is necessary to implement further measures to maximize growth.
Measures: We will carry on with our sports community based service to achieve revitalization ofthe community and to deepen our business.
・ The market is estimated to contract due to the long term decreasing birthrate and aging
population. It will not happen in the short term but we are fully aware of the competitivecondition.
・ Our business portfolio is diversified with not only soft tennis, but tennis as well. We will aim todiversify our business locally and internationally in other sports as well.
・ Number of customers in the tennis sector increased greatly during the end of the March 2014
period. Therefore a fixed amount of income contribution is anticipated.

④ Entertainment Business
Our JASDAQ listed subsidiary operating the entertainment business has implemented amedium term changeover of business portfolio. The selection and concentration of businessesimplemented in the March 2014 period that focused on the core business of trading card gameand editing, and carrying out business operations has paid off, achieving the expansion anddiversification of client and contents portfolio.
Our main income in the March 2014 period, royalty income, has decreased resulting in loss ofincome and profit, but in the second half, income increment derived from the above activities
have become significant.
Measures: We will continue to expand the strong performing trading card game business andcreate a number of new businesses to expand and diversify our business portfolio.
・ The publishing industry in Japan is in a long term predicament. We may be affected by the shorttermed conditions.
・ Amongst them, the trading card game and sub-culture contents that we are handling are a very
characteristic, and we believe that it will become our core competence in the future.
・ These contents are sectors which has the potential to penetrate the world market as Cool Japan.
The overseas development we are working on now has to chance to for business expansion.

Our group has had a revolutionary expansion of our business portfolio, emerging from 35 yearsof poor performance in the past 7 years with remarkable growth and stable operating income. The
reformation of the rubber business from 35 years of poor performance is still underway.
We will continue to improve our business and put in our best efforts to meet the expectations of
our shareholders and concerned parties.
I sincerely ask for you continued support in the future.
Thank you.