Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong
Limited take no responsibility for the contents of this announcement, make norepresentation as to its accuracy or completeness and expressly disclaim any liability
whatsoever for any loss howsoever arising from or in reliance upon the whole or any
part of the contents of this announcement.

(Incorporated in Japan with limited liability)(Stock Code: 1245)

ANNUAL RESULTS ANNOUNCEMENTFOR THE YEAR ENDED 31 MARCH 2018
ANNUAL RESULTS HIGHLIGHTS#•

Gross pay-ins were ¥138,493 million (or HK$10,229 million # ), recording adecrease of 3.2% as compared with the year ended 31 March 2017;•

Revenue was ¥26,554 million (or HK$1,961 million #), recording a decrease of
9.0% as compared with the year ended 31 March 2017;•

Profit before income tax was ¥213 million (or HK$16 million # ), recording adecrease of 76.4% as compared with the year ended 31 March 2017;•

Loss for the year attributable to owners of the Company was ¥15 million (orHK$1 million # ), recording a decrease of 103.0% as compared with the year
ended 31 March 2017;•

The Group operates 55 halls as at the date of this announcement (55 halls as at
31 March 2017);•

Basic loss per share of the Company were ¥0.013 (or HK$0.001#) (2017: basic
earnings per share ¥0.41); and•The Board has resolved to declare a final dividend of ¥0.12 (or HK$0.009) per
ordinary share (interim: Nil).
Translated into Hong Kong dollar at the rate of ¥13.54 to HK$1.00, the exchange rate prevailingon 29 March 2018 (i.e. the last business day in March 2018).

Note: The above % increases and decreases refer to the changes in respect of the Japanese Yenamounts but not the translated amounts in Hong Kong dollar.
*

For identification purpose only

–1–The board (the “Board”) of directors (the “Directors”) of NIRAKU GC HOLDINGS, INC.*(the “Company” or “NIRAKU”) would like to announce the audited consolidated resultsof the Company and its subsidiaries (the “Group”) for the year ended 31 March 2018
together with the comparative figures for the year ended 31 March 2017 as follows:
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2018
Note

2018
¥ million

2017¥ million

Revenue

426,55429,180

Other income
Other gains/(losses), net
Hall operating expenses
Administrative and other operating expenses

5
5
6
6

606
121
(22,640)(3,918)801(47)(24,110)(4,391)

Operating profit

723

1,433

Finance income
Finance costs

51
(561)

55
(586)

Finance costs, net

7

(510)

(531)

Profit before income tax
Income tax expense

8

213
(273)

902
(410)

(Loss)/profit for the year

(60)

492

(Loss)/profit attributable to:
Owners of the Company
Non-controlling interest

(15)
(45)

492
–

(60)

492

(0.013)

0.411

Other comprehensive (loss)/income
Item that have been reclassified or may besubsequently reclassified to profit or loss
Change in value of financial assets
through other comprehensive income
Currency translation differences

(179)
(93)

138
–

Total comprehensive (loss)/income
for the year

(332)

630

Total comprehensive (loss)/income
attributable to:
Owners of the Company
Non-controlling interest

(287)
(45)

630
–

(332)

630

(Loss)/earnings per share for (loss)/profit
attributable to owners of the Company— Basic and diluted (expressed in    Japanese Yen per share)–2–

9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2018
Note
ASSETS
Non-current assets
Property, plant and equipment
Investment properties
Intangible assets
Prepayments, deposits and other receivables
Financial assets at fair value throughprofit or loss
Financial assets at fair value throughother comprehensive income
Deferred income tax assets
Long-term bank deposits

Current assets
Inventories
Trade receivables
Prepayments, deposits and other receivables
Bank deposits with maturity over 3 months
Cash and cash equivalents
Current income tax recoverable

Total assets

–3–

11

2018
¥ million

2017¥ million

26,207
662
1,571
3,751

26,406
678
182
3,866

52

104

953
1,565
47

1,210
1,656
35

34,80834,137

57
57
1,312
43
15,594
300

20
88
1,457
252
13,40455

17,363

15,27652,171

49,4132018¥ million

2017¥ million

EQUITY
Equity attributable to ownersof the Company
Share capital
Reserves

3,000
24,1763,000
24,499Non-controlling interest

27,176(40)

27,499–Total equity

27,13627,49910,854
3,247
2,111
8

8,656
4,048
1,989
11

16,22014,704

247
3,886
888
3,793
1

123
2,394
1,160
3,532
1

8,815

7,210

Total liabilities

25,035

21,914

Total equity and liabilities

52,171

49,413Note

LIABILITIES
Non-current liabilities
Borrowings
Obligations under finance leases
Provisions and other payables
Derivative financial instruments

13
14

Current liabilities
Trade payables
Borrowings
Obligations under finance leases
Accruals, provisions and other payables
Derivative financial instruments

12
13
14

–4–

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1

GENERAL INFORMATION
株式会社二ラク•ジー•シー•ホールディングスNIRAKU GC HOLDINGS, INC.* was incorporated inJapan under the Japan Companies Act with limited liability on 10 January 2013. The address of its
registered office is 1-39 Hohaccho 1-chome, Koriyama-shi, Fukushima, Japan.
The Company is an investment holding company. The Company and its subsidiaries comprising theGroup (together, the “Group”) are principally engaged in pachinko and pachislot hall operations,hotel and restaurant operations in Japan, and entertainment and amusement arcade operations inSoutheast Asia countries.
The Company’s shares were listed on the Main Board of the Stock Exchange of Hong Kong Limited
on 8 April 2015.
These consolidated financial statements are presented in millions of Japanese Yen (“¥”), unlessotherwise stated.

2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe principal accounting policies applied in the preparation of the consolidated financial statements
are set out below. These policies have been consistently applied to all years presented, unlessotherwise stated.

3

BASIS OF PREPARATION(i)

Compliance with International Financial Reporting Standards and Hong Kong Companies
Ordinance
The consolidated financial statements have been prepared in accordance with all applicable
International Financial Reporting Standards (“IFRS”) issued by the IASB and requirements of theHong Kong Companies Ordinance Cap. 622.

(ii)

Historical cost convention
The consolidated financial statements have been prepared under the historical cost convention,
as modified by the revaluation of financial assets and financial liabilities (including derivative
financial instruments) which are carried at fair values.

(iii) New and amended standards adopted by the GroupThe following amendments to standards are mandatory for accounting periods beginning on orafter 1 April 2017:
Amendments to IAS 12
Amendments to IAS 7

Income taxes
Statement of cash flows

The adoption of these amendments did not have material impact on the financial statements forthe current and prior year, except for amendments to IAS 7 require disclosure of changes inliabilities arising from financing activities.

–5–

(iv) New standards and amendments to existing standards not yet adopted by the GroupThe following are standards and amendments to existing standards that have been publishedand are relevant and mandatory for the Group’s accounting periods beginning on or after 1
April 2018 or later periods, but have not been early adopted by the Group.
Effective
for accounting
year beginningon or after
IFRS 2 (Amendment)
IFRS 15IFRS 15 (Amendment)
IFRIC 22
IAS 40 (Amendment)
Annual Improvements Project IFRS 1
and IAS 28 (Amendment)
IFRIC 22IFRS 16IFRIC 23
Amendment to IFRS 3, IFRS 11,
IAS 12 and IAS 23
IFRS 17IFRS 10 and IFRS 28 (Amendment)

Classification and measurement of share-based
payment transactions
Revenue from contracts with customers
Clarification to IFRS 15
Foreign currency transactions and advanceconsideration
Transfers of investment property
Annual improvements 2014–2016 cycle

1 January 2018

Foreign currency transactions and advanceconsideration (new interpretation)
Leases
Uncertainty over income tax treatments
Annual improvements 2015–2017 Cycle

1 January 2018

Insurance contracts
Sale or contribution of assets between an investor
and its associate or joint venture

1 January 2018
1 January 2018
1 January 2018
1 January 2018
1 January 2018

1 January 2019
1 January 2019
1 January 2019
1 January 2021
To be determined

IFRS 15 “Revenue from Contracts with Customers” — This new standard replaces the previous
revenue standards: IAS 18 “Revenue” and IAS 11 “Construction Contracts”, and the relatedInterpretations on revenue recognition. IFRS 15 establishes a comprehensive framework fordetermining when to recognise revenue and how much revenue to recognise through a 5-step
approach: (1) Identify the contract(s) with customer; (2) Identify separate performanceobligations in a contract; (3) Determine the transaction price; (4) Allocate transaction price toperformance obligations; and (5) Recognise revenue when performance obligation is satisfied.
The core principle is that the Group should recognise revenue to depict the transfer of promised
goods or services to the customer in an amount that reflects the consideration to which theGroup expects to be entitled in exchange for those goods or services. It moves away from arevenue recognition model based on an “earnings processes” to an “asset liability” approachbased on transfer of control. IFRS 15 provides specific guidance on capitalisation of contract
cost, license arrangements and principal versus agent considerations. It also includes acohesive set of disclosure requirements about the nature amount, timing and uncertainty ofrevenue and cash flows arising from the entity’s contracts with customers.
The Group has performed an initial assessment on the impact of this new standard. Currently,
management does not anticipate any significant impact on the Group’s financial positions andresults of operations upon adopting this new standard.

–6–

IFRS 16, “Leases” (effective from 1 January 2019). Under IFRS 16, a lease is a contract (or partof a contract) that conveys the right to control the use of an identified asset for a period of timein exchange for consideration. IFRS 16 eliminates the classification of leases by the lessee as
either finance leases (on balance sheet) or operating leases (off balance sheet). IFRS 16
requires a lessee to recognise a “right-of-use” of the underlying asset and a lease liability
reflecting future lease payments for most leases. The right-of-use asset is depreciated inaccordance with the principle in IAS 16 “Property, Plant and Equipment” and the lease liability
is accreted over time with interest expense recognised in the consolidated statement ofcomprehensive income. For lessors, IFRS 16 retains most of the requirements in IAS 17.
Lessors continue to classify all leases as either operating leases or finance leases and accountfor them differently.
The Group plans to apply the new standards and amendments when they become effective. The
Group has already commenced assessments of the related impacts of new and amended standards
not yet effective on 1 January 2018 to the Group and it is not yet in a position to state whether any
substantial changes to the Group’s significant policies and presentation of the financial information
will result.
4

REVENUE AND SEGMENT INFORMATION(a)

Revenue

Revenue
Gross pay-ins
Less: gross pay-outs
Revenue from pachinko and pachislot hall business
Revenue from amusement arcades business
Vending machine income
Revenue from hotel operations
Revenue from restaurant operations

(b)

2018
¥ million

2017¥ million

138,493(113,230)

143,130(114,734)

25,263
417
536
158
180

28,396
–
564
130
90

26,55429,180

Segment information
Management has determined the operating segments based on the reports reviewed by thechief operating decision maker that are used for making strategic decisions. The chief operating
decision-maker is identified as the executive directors of the Company. The executive directors
consider the business from a service perspective and assess the performance of the operating
segments based on a measure of adjusted profit before tax before unallocated corporate
expenses for the purposes of allocating resources and assessing performance. These reports
are prepared on the same basis as this consolidated financial statements.
Management has identified three reportable segments based on the types of services, namely (i)pachinko and pachislot hall operations, (ii) amusement arcade operations, and (iii) others,
representing hotel and restaurant operations.

–7–Segment assets consist primarily of property, plant and equipment, investment properties,
inventories, trade receivables, prepayments, deposits and other receivables, bank deposits andcash and bank balances. They exclude deferred income tax assets, and assets used forcorporate functions including financial assets at fair value through profit or loss and financial
assets at fair value through other comprehensive income.
Capital expenditure comprises additions to property, plant and equipment, investment
properties and intangible assets. Unallocated corporate expenses and income tax expenses are
not included in segment results.
The segment information provided to the executive directors for the years ended 31 March2018 and 2017 are as follows:
Pachinko andpachislot halloperations

Segment revenue fromexternal customers
Segment results
Corporate expenses

Year ended 31 March 2018
Amusement
arcadeoperations
Others

Total

Japan
¥ million

SoutheastAsia¥ millionJapan¥ million¥ million

25,799417

338

26,554

1,223

(74)

(213)

936
(723)

Profit before income tax
Income tax expense

213
(273)

Loss for the year

(60)

Other segment items
Depreciation and amortisation
expensesFinance income
Finance costs
Capital expenditures(2,243)
49
(539)
1,768

–8–

(95)
2
(22)
76

(45)
–
–
75

(2,383)
51
(561)
1,919

Pachinko andpachislot halloperations

Segment revenue from externalcustomers
Segment results
Corporate expenses

Year ended 31 March 2017
Amusement
arcadeoperations
Others

Total

Japan
¥ million

SoutheastAsia¥ millionJapan¥ million¥ million

28,960–220

29,180

1,576

–

(118)

1,458
(556)

Profit before income tax
Income tax expense

902
(410)

Profit for the year

492

Other segment items
Depreciation and amortisation
expensesFinance income
Finance costs
Capital expenditures(2,392)
55
(586)
524

–
–
–
–

(28)
–
–
134

(2,420)
55
(586)
658

The segment assets as at 31 March 2018 and 2017 are as follows:

As at 31 March 2018
Segment assets
Unallocated assets
Deferred income tax assets

Pachinko andpachislot halloperations

Amusement
arcadeoperations

Others

Total

Japan
¥ million

SoutheastAsia¥ millionJapan¥ million¥ million

42,247980

1,108

Total assets
As at 31 March 2017
Segment assets
Unallocated assets
Deferred income tax assets

44,335
6,271
1,565
52,17140,437–636

41,0736,684
1,656
49,413

Total assets–9–

The total of non-current assets other than financial instruments and deferred tax assets,
analysed by location of the assets, is as follows:

Japan, country of domicile
Southeast Asia

2018
¥ million

2017¥ million

31,609629

31,167–32,23831,167

No single external customer contributed more than 10% revenue to the Group’s revenue for theyears ended 31 March 2018 and 2017.
5

OTHER INCOME AND OTHER GAINS/(LOSSES), NET

Other income
Rental income
Income from expired IC and membership cards
Dividend income
Compensation and subsidies
Income from scrap sales of used pachinko and pachislot machines
OthersOther gains/(losses), net
Loss on fair value for financial assets at fair value throughprofit or loss
Gain on fair value for derivative financial instruments
Gain/(loss) on disposal of property, plant and equipment
Net exchange (loss)/gain– 10 –

2018¥ million

2017¥ million

154
31
57
4
331
29

148
33
61
13
500
46

606

801

(2)
3
215
(95)

(2)
4
(64)
15

121

(47)

6

HALL OPERATING EXPENSES AND ADMINISTRATIVE AND OTHER OPERATING EXPENSES

Auditors’ remuneration— Audit fees
— Other services
Employee benefits expenses— Hall operations— Administrative and others
Operating lease rental expense in respect of land and buildings
Depreciation of property, plant and equipment
Depreciation of investment properties
Write off of other receivables
Amortisation of intangible assets
Reinstatement expenses
Recruitment expenses
Travelling and transportation
Other taxes and duties
Repairs and maintenanceUtilities expenses
Consumables and cleaning
Outsourcing service expenses
G-Prize procurement expenses to wholesalers
Pachinko and pachislot machines expenses (Note (i))
Advertising expenses
Service fee
Impairment loss on property, plant and equipment
Legal and professional fees
Loss on termination of existing/opening of outlets (Note (ii))
Others2018¥ million

2017¥ million

76
13

62
34

5,176
1,635
2,835
2,315
19
54
49
25
52
132
348
226
952
1,438
962
763
7,699
1,102
35
–
155
46
451

5,110
1,576
2,816
2,368
19
17
33
25
78
134
385
183
971
1,741
1,008
778
8,836
1,264
35
271
66
72
619

26,55828,501

Notes:(i)

Pachinko and pachislot machines are expensed off in the consolidated statement ofcomprehensive income upon installation. The expected useful lives of these machines are lessthan one year.

(ii)

During the year ended 31 March 2018, a pachinko and pachislot hall and a restaurant wereclosed. The amount of ¥46 million represents penalty charge of ¥8 million for early terminationof rental contract and forfeiture of rental deposits of ¥3 million in relation to the closure of arestaurant; and ¥35 million penalty charge in relation to closure of a pachinko and pachislot
hall.
During the year ended 31 March 2017, a loss of ¥72 million was incurred in relation toabandoning the plan for opening of a new hall. The said amount included forfeiture of rental
deposit of ¥39 million, write off of construction in progress of ¥14 million and penalty charge forearly termination of the rental contract of ¥19 million.

– 11 –

7

FINANCE COSTS, NET2018¥ million

2017¥ million

3
48

3
52

51

55

(195)
(228)
(138)

(213)
(280)
(93)

(561)

(586)

(510)

(531)

2018
¥ million

2017¥ million

Current income tax— Japan— Other Asian countries

170
9

344
–

Deferred income tax

179
94

344
66

273

410

Finance income
Bank interest income
Other interest income

Finance costs
Bank borrowings
Obligations under finance leases
Provision for unwinding discountFinance costs, net
8

INCOME TAX EXPENSE

Taxation has been provided at the appropriate rates prevailing in the countries in which the Group
operates.
No provision for Hong Kong profits tax has been made for the years ended 31 March 2018 and 2017as the Group did not generate any assessable profits arising in Hong Kong during the years ended
31 March 2018 and 2017.

– 12 –

9(LOSS)/EARNINGS PER SHARE
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to owners of theCompany by the weighted average number of ordinary shares in issue during the years ended 31
March 2018 and 2017.

(Loss)/profit attributable to owners of the Company (¥ million)
Weighted average number of ordinary shares for the purpose of
calculating basic (loss)/earnings per share (thousands)
Basic and diluted (loss)/earnings per share (¥)

2018

2017

(15)

492

1,195,850

1,195,850(0.013)0.41

No diluted (loss)/earnings per share is presented as there was no potential dilutive shares during theyears ended 31 March 2018 and 2017. Diluted (loss)/earnings per share is equal to the basic (loss)/earnings per share.
10

DIVIDENDS
During the year ended 31 March 2018, the Company paid dividend of ¥36 million (¥0.03 per ordinary
share) to its shareholders in respect of the year ended 31 March 2017.
The board of directors of the Company proposes the payment of a final dividend of ¥0.12 perordinary share totalling ¥143 million in respect of the year ended 31 March 2018. These consolidated
financial statements do not reflect this dividend payable.

11

TRADE RECEIVABLES

Trade receivables
Less: provision for impairment of trade receivables

2018¥ million

2017¥ million

57
–

88
–

57

88

Trade receivables represent income receivable from vending machines. The credit terms granted by
the Group generally ranged from 0 to 30 days.
The creation and release of provision for impaired receivables have been included in “administrative andother operating expenses” in the consolidated statement of comprehensive income. Amounts charged tothe allowance account are generally written off when there is no expectation of recovering the amount.
As at 31 March 2018 and 2017, the ageing analysis of the trade receivables, based on invoice date,is as follows:

Less than 30 days
31 days to 90 days

– 13 –

2018¥ million

2017¥ million

53
4

88
–

57

88

As at 31 March 2018 and 2017, no trade receivables was past due or impaired.
The maximum exposure to credit risk at the reporting date is the carrying value of the receivable
mentioned above. The Group does not hold any collateral as security.
The carrying amounts of trade receivables approximate their fair values as at 31 March 2018 and
2017.
12

TRADE PAYABLES
The ageing analysis of the trade payables based on invoice dates as at 31 March 2018 and 2017
were as follows:

Less than 30 days
31 – 90 days
Over 90 days2018
¥ million

2017¥ million

72
162
13

42
81
–

247

123

The carrying amounts of trade payables approximate their fair values as at 31 March 2018 and 2017.
13

BORROWINGS

Non-current portion
Bank loans
Syndicated loans

Current portion
Bank loans
Syndicated loans

Total borrowings

2018¥ million

2017¥ million

2,761
8,093

1,922
6,734

10,854

8,656

813
3,073

939
1,455

3,886

2,394

14,74011,050As at 31 March 2018 and 2017, the Group’s borrowings were repayable as follows:

Within 1 year
Between 1 and 2 years
Between 2 and 5 years
Over 5 years– 14 –

2018¥ million

2017¥ million

3,886
2,821
4,991
3,042

2,394
1,944
4,560
2,152

14,74011,050

The average effective interest rates (per annum) at the end of each reporting period were set out asfollows:

Bank loans
Syndicated loans

2018

2017

0.8%
1.1%

1.8%
1.1%

As at 31 March 2018, the borrowings under sales and leaseback arrangements with a third party
lessor amounted to ¥1,674 million (2017: ¥1,472 million). These sales and leaseback arrangements
included sell of certain leasehold improvements and pachislot machines at an aggregate
consideration of ¥2,801 million and lease-back to the Group for a total lease payment of ¥2,979
million covering the periods ranged between 24 months to 84 months. During the lease period, theGroup cannot transfer or pledge to any party the relevant leasehold improvements and pachislot
machines. For leasehold improvement, the Group has an option to renew for a further term of 1 year
on the 20th of the preceding month before the end of each lease term at no cost.
At the end of each reporting period, the total borrowings are pledged by certain assets and theircarrying values are shown as below:

Property, plant and equipment
Investment properties
Deposits and other receivables

2018¥ million

2017¥ million

8,340
662
582

8,195
678
585

9,584

9,458

The undrawn borrowing facilities of the Group at each reporting period are as follows:

Floating rate
— Expiring over 1 year

2018
¥ million

2017¥ million

1,663

2,000

The carrying amounts of borrowings of the Group approximate their fair values as at 31 March 2018and 2017.

– 15 –

14

OBLIGATIONS UNDER FINANCE LEASES
2018¥ million

2017¥ million

Gross finance lease liabilities — minimum lease payments
No later than 1 year
Later than 1 year and no later than 2 years
Later than 2 year and no later than 5 years
Later than 5 years

1,041
817
1,206
1,985

1,364
999
1,709
2,264

Future finance charges on finance leases

5,049
(914)

6,336
(1,128)Present values of finance lease liabilities

4,135

5,208

2018
¥ million

2017¥ million

No later than 1 year
Later than 1 year and no later than 2 years
Later than 2 year and no later than 5 years
Later than 5 years

888
683
918
1,646

1,160
835
1,371
1,842

Total obligations under finance leases
Less: Amount included in current liabilities

4,135
(888)

5,208
(1,160)Non-current obligations under finance leases

3,247

4,048

The present values of finance lease liabilities are as follows:

Assets arranged under finance leases represent buildings for pachinko and pachislot halls, pachinko
and pachislot machines, and gaming machines for amusement arcades. The average lease term
range from 1 to 20 years with effective interest rate range from 3.22% to 4.42% per annum as at 31
March 2018 (2017: 3.22% to 4.42% per annum) for pachinko and pachislot business; and from 2 to
3 years with effective interest rate range from 8.06% to 20.0% for amusement arcade business. No
arrangements have been entered into for contingent rental payments during the reporting periods.
15

BUSINESS COMBINATION(a)

Summary of acquisition
On 20 November 2017, the company acquired 100% of the issued share capital of Dream
Games Singapore Pte. Ltd. and its subsidiaries (“Dream Games”) at a cash consideration of¥1,870 million. Dream Games is engaged in the operation of entertainment and amusement
facilities in Cambodia and Vietnam. The Acquisition represents a strategic opportunity for theGroup to establish its leading presence in gaming and entertainment industry in Southeast Asiaand broaden the types of entertainment provided by the Group.

– 16 –

Details of the net assets acquired and goodwill are as follows:
Fair value¥ million
Cash and cash equivalents
Prepayments, deposits and other receivables
Inventories
Property, plant and equipment
Deferred tax assets
Intangible assets
Provision and other payables
Borrowings and obligation under finance leases
Deferred tax liabilities
Current income tax liabilities

117
236
21
579
15
408
(170)
(351)
(89)
(5)

Net identifiable assets acquired
Add: goodwill

761
1,109

Net assets acquired

1,870

The fair value of assets have been determined on a provisional basis as the fair value ofidentifiable assets acquired may be adjusted upon the completion of initial accounting year
which shall not exceed one year from the respective acquisition date. The fair value is being
valued by Roma Group Limited, an independent qualified professional valuer, not connected to
the Group.
The goodwill arose in the acquisition of Dream Games included amounts in relation to thebenefit of expected synergies, revenue growth, future business development and expansion in
Asian markets. None of goodwill recognised is expected to be deductible for income tax
purpose.
Revenue and loss attributable to the acquisition during the year are ¥417 million and ¥86
million, respectively. Had the above acquisition completed on 1 April 2017, total Group proforma revenue and loss for the year ended 31 March 2018 would have been ¥27,320 millionand ¥56 million, respectively. The pro-forma information is for illustrative purposes only and is
not necessarily an indication of revenue and results of operations of the Group that actuallywould have been achieved had the above acquisition been completed on 1 April 2017, nor is it
intended to be a projection of future results.
(b)

Purchase consideration — cash outflow
2018¥ million
Net cash outflow arising from acquisition of subsidiaries
Cash paid
Cash and cash equivalents acquired

1,870
(117)

Net outflow of cash

1,753

– 17 –

MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS OVERVIEW, STRATEGIES AND DEVELOPMENT
Our Group embarked on expanding its business into Asia last year. Asian countries,
particularly Southeast Asian countries, are expected to experience great economic
development in the future, and their populations are also predicted to rise. As people’s
lives become richer, their leisure time also increases, and an expansion of theentertainment market is predicted. This was the route that Japan once followed during
the post-war period of rapid economic growth, and in the near future, mature societies
and markets will surely emerge in Asian countries. There, the importance of thecommunity as a place where people can gather and enjoy themselves, and where
people can interact with one another, is expected to increase. We intend to continue
expanding our business in this rapidly growing region.
In the long term, we will develop our entertainment business in a broader sense,
including the amusement business and restaurant business, both in Japan and Asia. In
the medium term, for pachinko hall operations as our core business, we will proactively
promote a plan to open halls, while securing the market by offering higher quality
services. Furthermore, in our restaurant business, which we have already started inJapan, we will be opening additional establishments. In Asia, which is experiencing
rapid growth, with an eye on future expansion of our business, we will seek out
opportunities for further business investment and focus on forming a stable foundationfor our existing businesses.
Our philosophy of ‘Happy Time, Creation’ meaning “providing happy times for people bymaking the world cheerful, fun and entertaining” applies not only to our mainstay
pachinko business, but also to the activities of the entire Group. Furthermore, thisphilosophy is not limited to specific countries and regions — it has universal
significance. The Group can create opportunities to conduct business in Asia, triggeredby its listing on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”), andin addition to the pachinko business, which evolved independently in Japan, in
anticipation of the future, we have started taking steps along the path towards
globalisation in order to boost the development of the Group as a whole.

– 18 –

Pachinko businessIn the fiscal year ended 31 March 2018, we opened the “Niraku Hitachi-omiya hall” (inHitachi-omiya city, Ibaraki prefecture). This “Niraku Hitachi-omiya hall”, as a new style ofhall for the future, is based on the concept of becoming a community space in the area.
We are making efforts to provide places of relaxation for the people of local
communities, create halls where people can spend a relaxing and enjoyable time, with
our motto of a familiarity that allows visitors who even do not play pachinko or pachislot
would also pay a visit. Meanwhile, we closed the “Niraku Annaka-itahana hall” (inAnnaka City, Gunma Prefecture) due to environmental changes within the marketingarea and in order to strengthen our business structure. As a result, the number ofpachinko halls at the end of this financial year stands at 55 (excluding the “Niraku
Tomioka hall”, for which the prospect of resumption of business has yet to be
determined due to nuclear disaster).
In the pachinko hall industry, we expect the situation persists in which it has beendifficult to see significant improvement. According to the Japan Productivity Center“Leisure White Paper 2017”, the participating population was 9.4 million (a year-on-year
decrease of 12.1%) — the lowest figure ever on record. The market size (gross pay-ins)
also fell to ¥21.626 trillion (a year-on-year decrease of 6.9%), and the negative trend
continues.
With the shrinking of the industry as a whole, the pachinko hall market is moving
towards a polarised market, with the major companies pushing ahead with large-sizedhalls and the small- and medium-sized parlors set to withdraw from the industry. It isthought that this downward trend will continue for the time being, as efforts to cultivate
the youngster people’s market, which is a problem for the industry as a whole, and toprevent the retreat of existing customer, are failing to have a noticeable effect.
In addition, in December 2016, the “Act on the Promotion of the Development ofIntegrated Resort Areas (IR Promotion Act)” was passed and enacted, and the pachinko
industry is under the pressure of measures to counter the gambling addiction
associated with the legalisation of casinos, and it is expected that further amendments
will be made to gaming machine regulations in the future, as well as further measures
being taken to counter the gambling aspect of gaming machines through restrictions on
advertising and promotion.
In such an industry environment, in the pachinko hall business, we have been working
on streamlining cost structure, increasing customers return rate and providing a gaming
environment to meet the needs of diverse fans, while complying with various regulations,as an important part of our sales strategy. Although the conditions remain severe for thepachinko industry as a whole, including changes in the market due to change ofmachine regulations and downturn in sales (gross pay-ins), as a result of such efforts,
we have been able to maintain greater customer traffic than last year at many halls.

– 19 –

Going forward, we will continue to make improvements on replacing machines in eachhall to match customer preference, improve our gaming environment and customer
service from the customer’s point of view, and we will aim to strengthen ourorganization by further promoting the streamlining of expenses, and work together tocreate halls that our customers will support.
Amusement arcade business
On 20 November 2017, the Group acquired Dream Games Singapore Pte. Ltd. (“Dream
Games”) and its subsidiaries, which engages in amusement arcades operation in
Vietnam and Cambodia.
Dream Games is a young company established in 2013, but since its inception, its
business strategy is to ally with large Japanese mall developer, focusing on opening
amusement arcades in new shopping malls. Currently, Dream Games operates a totalof seven amusement arcades, with six in Vietnam and one in Cambodia. The economies
of Vietnam and Cambodia are growing fast, and their leisure markets are expected to
expand. Although the median ages of the populations of both countries are young andtheir populations are growing, there are still very few facilities for people to gather andenjoy their leisure time, and it is predicted that the use of amusement facilities will also
continue to enjoy further growth in the leisure market.
In the future, we will work on developing new types of operation for selling our services
to respond to a variety of needs, starting with existing markets, and focus on strategies
to expand our market share, without missing opportunities to open new arcades. We
will also be looking to other Southeast Asian markets, and we plan to expand ouramusement business throughout Asia in the future. Our plan is to accurately capture theeconomic growth of the countries of Asia, the accompanying expansion of their leisuremarkets, and their various needs, and actively invest in them to expand the businessand make it one of our pillars of income in the future.
Restaurant business
As for our restaurant business, we are currently operating two restaurants, in Shinbashi
and Nishi Shinjuku, as a franchisee of Spanish restaurant chain “Lizarran” developed by
the Spain-based Comess Group, which operates restaurants mainly in Europe. We plan
to open another restaurant in fiscal year 2018/2019.
The “Lizarran” brand that the Comess Group is deploying in its home country of Spainis a brand that is full of fun — not only serving food but also offering an entertaining
style of service.
We are convinced that, with our profound experiences that we had gained through our
pachinko business, we can take full advantage of the efficient store operation, service
and quality maintenance and management systems and open more restaurants in the
future. We plan to continue to roll out more restaurants in major urban areas in Japan.

– 20 –Strengthening relations with the local community
In the pachinko industry that is the mainstay of our business, the market shrinkage
shows no signs of halt. Under such circumstances, what is important is how well we
can maintain our customer base. To that end, we must maintain close relationships withour customers and pachinko halls that customers would choose to patronise. The
pachinko hall has the characteristic of a “neighborhood marketing style”, in which themarketing area is small, and close relationships are built up with customers. Rather thandrawing in customers from far and wide, it is necessary to have customers from theneighborhood visit the halls regularly in their daily lives. To that end, we believe that how
we are perceived and evaluated by the local people, and how we can coexist as andlive in symbiosis as a member of the local community will become an important factor.
Currently, the Group is working on how to live in harmony with the local communities,
primarily with our pachinko halls. For that purpose, we have started our “Active Local
Engine” initiative as one of our branding activities. These activities will turn halls into
intersections of various forms of entertainment in local communities and deepen theirconnection with the local area. Specifically, the idea is to bring together the small“interesting” and “fun” things in the marketing area of the pachinko hall, and introduce
them to create common talking points with the members of community and, byextension, with our customers, share the “interesting” and “fun” together. In addition,
we will integrate our existing Corporate Social Responsibility (CSR) activities andcharitable donation activities directed at local communities into these branding activities
and promote them under a unified concept.
These activities are not something that will directly lead to attracting customers;
however, if our value in the local community can increase through these activities, andwe can come to be recognized as a member of the community by even those locals
who do not play pachinko themselves, we believe that they will have an indirect effect toour sales activities.
FINANCIAL REVIEWRevenue from Pachinko and Pachislot Business
Revenue from pachinko and pachislot is derived from gross pay-in netted with gross
pay-out.
Revenue from pachinko and pachislot business declined from ¥28,396 million in 2017to ¥25,263 million in 2018. The decrease in revenue by ¥3,133 million, or 11.0%, wasprimarily due to the recession of the pachinko and pachislot industry.

– 21 –

Gross pay-ins
For the year ended 31 March 2018, the Group’s gross pay-ins from pachinko andpachislot business amounted to ¥138,493 million, comprising revenue from suburban
halls of ¥131,811 million (2017: ¥136,122 million) and urban halls of ¥6,682 million(2017: ¥7,008 million), representing a decrease of ¥4,311 million, or 3.2%, and ¥326
million, or 4.7%, respectively, as compared to last year. The decline, apart fromshrinkage of customer base, was resulted from the replacement of high-gaming element
machines to low-gaming element machines which in turn generate less revenue; closureof Annaka-Ibahana hall in current year; netted with the additional revenue from HitachiOmiya hall which was opened in late December 2017.
Gross pay-out
Gross pay-out declined from ¥114,734 million in 2017 to ¥113,230 million in 2018, a
decrease of ¥1,504 million, or 1.3%, generally mirrored the decline in gross pay-ins.
Revenue margin
The revenue margin decreased from 19.8% in 2017 to 18.2% in 2018. The decrease of
1.6% was due to strategic increase in pay-out ratio to stimulate higher customer visits,
which lowered the gross profit in the short term. The merit has been witnessed by theincrease in the machine utilisation rate from 23.2% for both pachinko and pachislot
machine in 2017 to 23.3% for pachinko machine and 23.9% for pachislot machine incurrent year.
Revenue from Amusement Arcade Business
In November 2017, the Group acquired 100% of equity interest in Dream Games, acompany engages in the operation of entertainment and amusement facilities in
Cambodia and Vietnam. As a result of the acquisition, the financial results of Dream
Games and its subsidiaries were consolidated into the Group’s financial statements.
For the year ended 31 March 2018, the revenue contributed from amusement arcade
business amounted to ¥417 million, of which ¥349 million and ¥68 million were derived
from Vietnam and Cambodia, respectively.
Other revenue
Other revenue represents incomes from vending machines and hotel and restaurant
operations.
Vending machine income amounted to ¥536 million in 2018. The slight decrease of ¥28
million as compared to ¥564 million in 2017 was resulted from the drop in customers
visit.

– 22 –

Revenue from hotel operations increased from ¥130 million in 2017 to ¥158 million in2018 as a result of increase in average occupancy rate from 70.30% in 2017 to 75.7%
in 2018.
Revenue from restaurant increased drastically from ¥90 million in 2017 to ¥180 million
in 2018. The hike was due to full year effect of revenue from Nishi-Shinjuku restaurant
which was opened in June 2016; and the third restaurant located in Shinbashi which
was opened in August 2017. Approaching to the end of financial year, in late February
2018, the Group decided to close down the restaurant in Akasakamitsuke due to its
unsatisfactory performance.
Administrative and other operating expenses
Administrative and other operating expenses decreased by ¥473 million, or 10.8%, from
¥4,391 million in 2017 to ¥3,918 million in 2018, primarily due to impairment loss of¥271 million provided in last year but nil in current year; and continuous implementationof cost savings measures during the current year.
Finance costs, net
Finance costs, net declined by ¥21 million, or 4.0%, from ¥531 million in 2017 to ¥510
million in 2018. The drop was attributable to the centralisation of borrowings fromindividual subsidiaries level to the Company, allowing higher cost savings on
borrowings.
Profit before income tax, (loss)/profit attributable to shareholders of the Company,
basic (loss)/earnings per share and dividend
Profit before income tax amounted to ¥213 million, a plunge of ¥689 million, or 76.4%,
as compared to ¥902 million in 2017. Net profit margin dropped from 1.7% in 2017 to-0.2% in 2018.
Loss attributable to shareholders of the Company of ¥15 million was recorded for theyear ended 31 March in 2018, as compared to the profit to shareholders of ¥492 million
in 2017. The turn around from profit to loss was mainly due to the drop in gross pay-inby 3.2%; and increase in pay-out ratio which lower the profit margin in the short term.
Basic loss per share was ¥0.013 (basic earnings per share in 2017: ¥0.41). The Board
has declared a final dividend of ¥0.12 per share for the year ended 31 March 2018(2017: ¥0.03 per share) on 30 May 2018.

– 23 –CAPITAL STRUCTURE
The Group principally meets its working capital and other liquidity requirements througha combination of capital contributions, including cash flow from operations and bankborrowings. The Group’s daily operation is mainly financed by operating cash flows, andrelies on short- and long-term borrowings for financing working capital, future expansion
plans and unexpected needs. The Group’s treasury objective is mainly to ensure there
is sufficient cash flow to meet the payment of expenses, loans and to fund any capital
expenditure and commitment that the Group may have from time to time. The Group’s
cash surpluses are placed in short-term and long-term fixed deposits to maintainliquidity. The Group has not experienced any difficulty in repaying its borrowings.
The Group’s principal business activities are carried out in Japan, with income,expenditure, assets and liabilities mainly denominated in Japanese Yen, as such, theGroup does not have any material foreign exchange exposure.
The table below sets forth the information regarding the cash and cash equivalents,bank deposits, bank borrowings, obligations under finance leases, working capital, total
equity and gearing ratio of the Group as at 31 March 2018 and 2017, and operating
cash flows before movements in working capital of the Group for the years ended 31
March 2018 and 2017, respectively:
As at 31 March
2018
2017
¥ million¥ million
Cash and cash equivalents
Bank deposits

Bank loans
Syndicated loans
Obligations under finance leases

Working capital
Total equity
Gearing ratio

15,59490

13,404287

15,684

13,691

3,574
11,166
4,135

2,860
8,190
5,208

18,875

16,258

8,548
27,13669.6%

8,066
27,49959.1%

For the year ended
31 March
2018
2017¥ million¥ million
Operating cash flows before movements
in working capital

2,925– 24 –

4,156

Net current assets of the Group totalled ¥8,548 million as at 31 March 2018 (31 March
2017: ¥8,066 million), and current ratio was 1.97 as at 31 March 2018 (31 March 2017:2.12). As at 31 March 2018, there were cash and cash equivalents of ¥15,594 million(31 March 2017: ¥13,404 million), in which ¥14,865 million was denominated inJapanese Yen, ¥456 million was denominated in United States dollar, ¥218 million was
denominated in Hong Kong dollar and ¥55 million was denominated in other currencies.
The Group had total borrowings of ¥18,875 million as at 31 March 2018 (31 March
2017: ¥16,258 million). Current portion of borrowings and current portion of obligations
under finance leases amounted to ¥4,774 million as at 31 March 2018 (31 March 2017:¥3,554 million).
The Group’s bank borrowings during the current period comprised bank loans andsyndicated loans. As at 31 March 2018, the total bank borrowings amounted to¥14,740 million (31 March 2017: ¥11,050 million) with the average effective interest
rates ranged from 0.8% to 1.1% (31 March 2017: 1.1% to 1.8%) per annum.
Approximately 4.2% of bank borrowings as at 31 March 2018 were fixed rateborrowings.
HEDGING OF FLOATING RATE BORROWINGS AND FOREIGN EXCHANGE
As at 31 March 2018, the Group had one floating to fixed interest rate swap contract
with a bank in Japan (i.e. the Group pays fixed interest rates and receives interests at
floating rate). This interest rate swap contract was entered into as a measure to manageinterest rate risk in relation to loans of the Group. As interest rates of some of theGroup’s loans are on a floating rate basis, the floating to fixed interest rate swap
contracts enabled the Group to reduce the volatility in the amount of interest being paid.
For the year ended 31 March 2018, the gain on fair value for interest rate swap
contracts amounted to ¥3 million.
The Group’s debts were primarily denominated in Japanese Yen. After the acquisition ofDream Games, the Group maintains an appropriate level of external borrowings in
Vietnam Dong for natural hedging of Vietnam Dong attributed to projects in Vietnam.
The Vietnam Dong exposure of the Group is mainly derived from the translation of noncurrent assets and liabilities of the Vietnam subsidiary with functional currency ofVietnam Dong and the Vietnam Dong deposits held for future development costs. As at
31 March 2018, the translation of non-current assets and liabilities of subsidiaries withfunctional currency other than Japanese Yen to Japanese Yen by using exchange rates
at that day resulted in a loss of ¥93 million is recognised in equity. Apart from this, theGroup does not have any material foreign exchange exposure.

– 25 –

GEARING RATIOThe gearing ratio, defined as the aggregate of interest-bearing loans and obligations
under finance leases, divided by total equity, was 69.6% as at 31 March 2018 (31March 2017: 59.1%). The increase of 10.5% as compared with that as at 31 March2017 was mainly due to the increase in total borrowings of ¥2,617 million and decrease
in total equity of ¥363 million.
CAPITAL EXPENDITURE
Capital expenditure mainly comprises expenditure for (i) the purchase of property, plantand equipment mainly used for construction of buildings, and (ii) the purchase of
equipment and tools for the expansion and maintenance of our pachinko and pachislot
hall operations. The table below shows a breakdown of the capital expenditure for theindicated periods:
As at 31 March
2018
2017
¥ million¥ million
Property, plant and equipment
Investment properties
Others

1,915
3
1

653
–
5

1,919

658

CHARGES ON ASSETS
As at 31 March 2018 and 2017, the carrying values of charged assets were as below:

Property, plant and equipment
Investment properties
Deposits and other receivables

2018¥ million

2017¥ million

8,340
662
582

8,195
678
585

9,584

9,458

CONTINGENT LIABILITIESThe Group did not have any material contingent liabilities as at 31 March 2018 and2017.

– 26 –

SIGNIFICANT INVESTMENTS, MATERIAL ACQUISITIONS AND DISPOSALS OF
SUBSIDIARIES, AND FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITALASSETSOn 31 October 2017, the Company entered into sale and purchase agreement with theshareholders of Dream Games to purchase the entire issued shares of Dream Games ata cash consideration of approximately ¥1,870 million. As at the date of acquisition,
Dream Games was principally engaged in the operation of entertainment andamusement facilities in Cambodia and Vietnam. The acquisition was completed on 20
November 2017, and Dream Games and its subsidiaries became the wholly-owned
subsidiaries of the Company.
Save for those disclosed in this result announcement, the Group had no plan authorisedby the Board for other material investments or additions of capital assets as at the dateof this results announcement.
There is no important event affecting the Company that has occurred since the end of
the financial year.
EMPLOYEES AND REMUNERATION POLICY
As at 31 March 2018, the Group had 1,776 employees. The remuneration policy of theGroup (including those for directors and employees) is determined by the Remuneration
Committee under the Board as per the performance, qualifications and competence ofthe employees.
USE OF NET PROCEEDS FROM LISTING
The net proceeds from the initial public offering in April 2015 amounted to approximately
HK$339 million. As at 31 March 2018, all the net proceeds were utilised according tothe originally planned purposes as set out in the Company’s prospectus dated 24
March 2015.
FINAL DIVIDENDThe Board has declared a final dividend of ¥0.12 per share for the year ended 31 March2018 (31 March 2017: ¥0.03 per share) on 30 May 2018, the final dividend will bepayable on 13 July 2018 to the shareholders of the Company (the “Shareholders”)
whose names appear on the register of members of the Company at close of businesson 14 June 2018.
The exchange rate for the conversion of Japanese Yen to Hong Kong dollar for thedividend distributed to the Shareholders in the currency other than Japanese Yen isbased on the average currency rates prevailing five trading days immediately prior to 30
May 2018 (being 23 to 25 May 2018 and 28 to 29 May 2018).

– 27 –

COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
During the year ended 31 March 2018, the Company has adopted and complied with all
the applicable principles and code provisions of the Corporate Governance Code andCorporate Governance Report (the “CG Code”) contained in Appendix 14 to the Rules
Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”), with the
exception for code provision A.2.1, which requires the roles of chairman and chief
executive to be separated and should be performed by different individuals.
Code provision A.2.1
Under code provision A.2.1 of the CG Code, the roles of chairman and chief executive
should be separate and should not be performed by the same individual. Our Chairman
currently holds both positions. Since April 2010, our Chairman has been the key leaderof our Group who has been primarily involved in the formulation of business strategies
and determination of the overall direction of our Group. He has also been chiefly
responsible for our Group’s operations as he directly supervises our Executive Officers(other than himself) and members of our senior management. Taking into account thecontinuation of the implementation of our business plans, the Directors (including our
independent non-executive Directors) consider our Chairman is the best candidate forboth positions and the present arrangements are beneficial to and in the interests of ourCompany and Shareholders as a whole.
DIRECTORS’ SECURITIES TRANSACTIONSThe Company has adopted the Model Code for Securities Transactions by Directors of
Listed Issuers as set out in Appendix 10 to the Listing Rules (the “Model Code”) as its
own code of conduct regarding securities transactions by Directors. Having madespecific enquiry with all Directors, the Directors confirmed that they had complied withthe required standard set out in the Model Code and the Company’s code of conduct
during the year ended 31 March 2018.
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIESThe Company did not redeem any of its listed securities during the year ended 31
March 2018 and up to the date of this results announcement. Neither the Company nor
any of its subsidiaries purchased or sold any of the Company’s listed securities during
the year ended 31 March 2018 and up to this results announcement.
AUDIT COMMITTEE
The audit committee of the Company had reviewed, together with the management andexternal auditor, the accounting principles and policies adopted by the Group and theaudited consolidated financial statements for the year ended 31 March 2018.

– 28 –REVIEW OF THE PRELIMINARY RESULTS ANNOUNCEMENT
The figures in respect of the Group’s consolidated statement of financial position,
consolidated statement of comprehensive income, and the related notes thereto for theyear ended 31 March 2018 as set out in this preliminary results announcement havebeen agreed by the Group’s auditor, PricewaterhouseCoopers, to the amounts set out
in the Group’s audited consolidated financial statements for the year. The work
performed by PricewaterhouseCoopers in this respect did not constitute an assurance
engagement in accordance with Hong Kong Standards on Auditing, Hong Kong
Standards on Review Engagements or Hong Kong Standards on Assurance
Engagements issued by the Hong Kong Institute of Certified Public Accountants andconsequently no assurance has been expressed by PricewaterhouseCoopers on thispreliminary results announcement.
ANNUAL GENERAL MEETING AND RECORD DATE
The annual general meeting of the Company (“2018 AGM”) will be held on 28 June 2018at 1-39 Hohaccho 1-chome, Koriyama-shi, Fukushima, Japan. Notice of the 2018 AGM
will be published and issued to Shareholders in due course. The right to attend and voteat the 2018 AGM will be granted to the Shareholders whose names appear on the
Company’s share register at the close of business on Friday, 22 June 2018.
In order for those Shareholders whose names have not been registered on the
Company’s share register to be eligible to attend and vote at the 2018 AGM, all properly
completed, duly stamped and executed transfer documents accompanied by therelevant share certificates should be lodged with the Company’s share registrar,
Computershare Hong Kong Investor Services Limited at Shops 1712–1716, 17th Floor,
Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong before 4:30 p.m.
(Hong Kong time) on Friday, 22 June 2018.
PUBLICATION OF ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORTThis annual results announcement is published on the websites of the Stock Exchange(www.hkexnews.hk) and the Company (www.ngch.co.jp), and the annual report of theCompany for the year ended 31 March 2018 containing all the information required by
the Listing Rules will be dispatched to the Shareholders and will be published on therespective websites of the Stock Exchange and the Company in due course.
On behalf of the BoardNIRAKU GC HOLDINGS, INC.*
株式会社ニラク▪ジー▪シー▪ホールディングス
Chairman, Executive Director and Chief Executive Officer
Hisanori TANIGUCHI (also known as JEONG Seonggi)
Fukushima, Japan, 30 May 2018

– 29 –

As at the date of this announcement, the executive Director is Hisanori TANIGUCHI (alsoknown as JEONG Seonggi); the non-executive Director is Hiroshi BANNAI; and the
independent non-executive Directors are Hiroaki MORITA, Norio NAKAYAMA, Michio
MINAKATA and Yoshihiro KOIZUMI.
*

for identification purpose only

– 30 –