COMPANY RESEARCH AND ANALYSIS REPORTSOLXYZ Co., Ltd.
4284
Tokyo Stock Exchange First Section

30-Jun.-2017
FISCO Ltd. Analyst

Yuzuru SatoFISCO Ltd.
http://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. Announced three strategic alliances............................................................................................................

01

2. Expecting double-digit profit growth in FY12/17. .........................................................................................

01

3. Targeting ¥1,000mn in recurring income in FY12/19 in the three-year medium-term plan. ..........................

01■Business overview---------------------------------------------------------------------------------------------------------------------------------------------------- 02■Recent topics----------------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. Capital and business alliance with Toyota Tsusho in development of automated driving
and other nextgeneration onboard systems. ...............................................................................................

03

2. Announcement of technology cooperation with SBI Holdings in the FinTech area.......................................

04

3. Investment in a development support company for automated-driving OS Autoware. ................................

05■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 06
1. Review of 1Q FY12/17 results................ ......................................................................................................

06

2. FY12/17 guidance. . ......................................................................................................................................

06

3. Three-year medium-term plan.. ....................................................................................................................

07■Shareholder return measures------------------------------------------------------------------------------------------------------------------------ 09

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/██SummaryAnnounced strategic alliances in automated driving and FinTech areas
SOLXYZ <4284> handles software development and digital signage businesses. Financial industry deals accountfor a large percentage of software development business and contributes just under 70% of parent sales. SOLXYZ
is strengthening existing businesses and cultivating recurrent business with the aim of enhancing earnings stability.
It is ramping up alliance strategies in automated driving, FinTech, IoT, AI, and other areas with growth potential.
1. Announced three strategic alliances
SOLXYZ has announced three alliances that deserve notice since May 2017. The first is a capital and businessalliance with Toyota Tsusho Corporation <8015>. It sold 134,000 treasury shares (1.0% stake) to Toyota Tsusho
on June 6. The capital alliance aims to strengthen ties with eXmotion Co., Ltd., SOLXYZ’s subsidiary that provides
system development and design assistance consulting service, and promote the Toyota Motor Corporation <7203>
Group’s next-generation vehicle development. While business ties already existed with the Toyota Group, thisinitiative seeks to bolster the connection to accelerate development of automated driving technology. The second
is cooperation in technology development for the FinTech service business being advanced by SBI Holdings,
Inc. <8473>, SOLXYZ’s top shareholder, with group companies. The third is capital participation with a minority
investment in AXE, Inc., a venture company that provides development support for automated-driving OS Autowareand develops AI technology, announced on June 14. SOLXYZ plans to cooperate in the development of automateddriving technology and utilize AI technology in Fleekdrive and Fleekform (names changed from former Cloud Shared
Office on March 6), its cloud services. These alliance strategies have increased expectations of earnings contributionsin automated driving and FinTech areas.
2. Expecting double-digit profit growth in FY12/17
SOLXYZ reported 1Q FY12/17 (Jan-Mar 2017) consolidated results with ¥3,373mn in net sales (+6.7% YoY) and¥99mn in recurring income (+77.1%), delivering higher sales and profits. System development deals from the financial
industry proceeded smoothly, and profits climbed at subsidiaries, such as eXmotion and E.I.SOL. Orders are currently
roughly on track with the plan. Full-year results are likely to proceed in line with guidance of ¥13,400mn in net sales(+0.8%) and ¥700mn in recurring income (+15.9%).
3. Targeting ¥1,000mn in recurring income in FY12/19 in the three-year medium-term plan
SOLXYZ set goals in the three-year medium-term plan of ¥15,000mn in net sales and ¥1,000mn in recurring income
in FY12/19. This outlook factors in accelerated growth in automated driving and FinTech areas through alliancesand gains in solution services, such as Fleekdrive and Fleekform cloud services and senior monitoring Imairumo
and TUNNELEYE IoT services. We will be closely watching developments in these areas.
Key Points
Possibility of accelerated expansion in automated driving and FinTech areas
Smooth start toward realizing FY12/17 guidance• Aiming for ¥1,000mn in consolidated recurring income in FY12/19••

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01 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/

Summary㻾㼑㼟㼡㼘㼠㼟㻌㼠㼞㼑㼚㼐（¥mn）

㻺㼑㼠㻌㼟㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻌㼍㼤㼕㼟㻕㻾㼑㼏㼡㼞㼞㼕㼚㼓㻌㼕㼚㼏㼛㼙㼑㻌㻔㼞㼕㼓㼔㼠㻌㼍㼤㼕㼟㻕㻝㻢㻘㻜㻜㻜㻣㻜㻜㻌㻢㻢㻣㻌㻝㻠㻘㻜㻜㻜

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（¥mn）

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Source: FISCO Inc. from abbreviated financial statements

██Business overview
Mainly operates software development business for the financial
industry
SOLXYZ handles SI/consignment development and related outsourcing business, package software development
and sales and other solutions business, and information equipment sales business for financial, ICT, and otherindustries. A key feature is that the financial industry accounts for a large portion of overall business at around 70%
of parent sales and about 60% of consolidated sales.
Consolidated subsidiaries consist of nine companies in software development business and one company in digital
signage business. The Company has subsidiaries for each business field in software development. Major ones are
FFSOL Co., Ltd. as a supplier of consignment development services to banks and Core Next Co., Ltd. as a businesssystem development and maintenance firm for the securities buy side. Additionally, ASWare Co., Ltd. handles
ICT infrastructure planning, building, and maintenance, and E.I.SOL delivers solutions in embedded, control, andmeasurement areas. These subsidiaries have transactions with the Company in development. Subsidiaries runningbusinesses autonomously from SOLXYZ, meanwhile, are eXmotion, which provides consulting services for softwaredevelopment, Neumann Co., Ltd. the industry leader in education materials and information systems for the driving
centers, and Interdimensions Co., Ltd. that provides design, installation and maintenance of digital signage andsecurity systems for commercial facilities and amusement centers.

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02 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/

Business overview

Related companies (business content, ownership stake)
Consolidated subsidiaries

Ownership stake(%)

Business content

Software development business
FFSOL Co., Ltd.

95.5

Specialized software development for banks

E.I.SOL Co., Ltd.

100.0

Software development for embedded, control, and measurement applications

Infinite Consulting Co., Ltd.

100.0

Consulting for the upstream process in system development

teco Co., Ltd.

100.0

Web marketing, development, operation and maintenance, and consulting

Neumann Co., Ltd.

100.0

Driver training center system, e-learning service

eXmotion Co., Ltd.

96.8

Consulting and educational services for system development sites

Core Next Co., Ltd.

100.0

Development and maintenance of securities buy-side business systems

ASWare Co., Ltd.

100.0

ICT infrastructure planning, construction, and maintenance business

ASEAN Driving School Network Co., Ltd.

67.7

Operation of driver training centers in Vietnam

100.0

Design, installation, and maintenance of audiovisual and security systems anddigital signage and video contents creation

Digital signage business
Interdimensions Co., Ltd.
Source: FISCO Inc. from company materials██Recent topics
Possibility of accelerated expansion in automated driving and
FinTech areas
In the medium-term growth strategy, SOLXYZ presented a policy of growth in existing businesses plus focus on
the four growth areas of automated driving, FinTech, IoT, and AI. It announced three strategic alliances related toautomated driving, FinTech, and AI that deserve notice.
1. Capital and business alliance with Toyota Tsusho in development of automated driving and other nextgeneration onboard systems
SOLXYZ concluded a capital and business alliance with Toyota Tsusho on May 17. It sold 134,000 treasury shares(1.0% stake) on June 6. The capital alliance aims to strengthen ties with eXmotion, SOLXYZ’s subsidiary that provides
system design consulting service, and promote the Toyota Group’s next-generation vehicle development. WhileeXmotion already had business ties with the Toyota Group, this initiative seeks to bolster the connection to accelerate
the development pace amid global acceleration of development in automated driving technology.
eXmotion provides consulting services related to design and development of embedded systems in the upstream
process portion of system development. Its roughly 25 consultants supply design and development support in thedevelopment divisions at major automakers and their group companies. Primary customers are major Japanese
auto firms, such as Toyota Group, Honda Motor Co., Ltd. <7267>, and Nissan Motor Co., Ltd. <7201>. It posted¥620mn in sales and roughly 20% operating margin in FY12/16 and is one of the most attractive subsidiaries withhigh profitability in the group.

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03 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/

Recent topics

Development difficulty has been rising at onboard system development sites in recent years amid growing inroads
by advanced driver assistance systems (ADAS)* and accelerating efforts to realize automated driving technology.
These conditions have increased demand for consulting services. eXmotion receives many inquiries due to its
industry-leading consulting capabilities and cannot accommodate all demand. We think the latest business andcapital alliance had a goal of speeding up the development pace by securing consulting resources.
*	Advanced driver assistance systems (ADAS) refer to systems that have functions such as activating automated brakes andstopping vehicles prior to impact with other vehicles or obstacles, following a vehicle located ahead at a certain interval,
and controlling steering to keep the vehicle from veering out of the lane. These systems obtain information from camera
sensors, laser radar, and other devices, process this information with semiconductor and software technologies, andconduct brake and steering control.

eXmotion is bolstering hiring activities to increase the number of consultants and training personnel with the aim ofaccommodating vibrant demand. It is likely to contribute to the expansion of SOLXYZ’s consolidated results given
the prospect of further growth in the automotive business and consulting demand related to the development of
automated driving in construction machinery and other mobile equipment.
Group subsidiary E.I.SOL might receive orders for design and development of onboard systems due to the capitaland business alliance with Toyota Tsusho. This is because it handles system development for embedded, control,and measurement applications and has a track record of assisting in the development of ADAS-related products
at major automakers.

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2. Announcement of technology cooperation with SBI Holdings in the FinTech area
SOLXYZ announced an agreement on technology cooperation for system development being promoted by SBIGroup in the FinTech field with SBI Holdings, its leading shareholder, on May 24.
It will cooperate on building a system for blockchain deployment the 42 banks (regional banks, Internet-only banks,and others; as of October 2016) that participate in the “consortium reviewing domestic and overseas forex integration
utilizing blockchain technology, etc.” launched jointly by SBI Holdings with SBI Ripple Asia Co., Ltd., SBI Sumishin
Net Bank, Ltd., and others in October 2016.

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04 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/

Recent topics

Specifically, SOLXYZ will provide development assistance when SBI Ripple Asia and SBI FinTech Incubation install adomestic and overseas fund transfer system utilizing blockchain, distributed ledger technology, and other capabilities
at regional banks and other firms. SOLXYZ and subsidiary FFSOL have already started collaborating throughparticipation in SBI Ripple Asia and SBI FinTech Incubation projects and should be obtaining orders. Other financial
subsidiaries in the SBI Group, such as SBI Securities Co., Ltd, SBI Card Co., Ltd. and SBI Insurance Co., Ltd.,might also deploy FinTech services. We expect further orders recruitment opportunities if this happens. Major
project developments in the financial industry have arrived at a peak and there had been concern about demandeasing from 2018. We think the start of collaboration in the FinTech area this time increases the likelihood of sales
continuing at a high level from 2018 too.
3. Investment in a development support company for automated-driving OS Autoware
SOLXYZ announced the acquisition of a 14% stake in AXE on June 14. AXE is a venture company that has provided
proprietary OS to digital cameras and mobile phones, mainly involving UNIX and network technology development,
since its establishment in 1992. Recently it has been offering development support and consulting for automated-driving OS Autoware and developing AI technology that it is vital for automated driving and other capabilities.
Autoware is an open-source software for automated driving systems based on Linux and ROS* that was developedin 2015 as part of joint results from research by Nagoya University, Nagasaki University, and the National Instituteof Advanced Industrial Science and Technology. AXE was involved in the development process with support for
refactoring, debugging, and other tasks. Tier IV, a venture company founded by Nagoya University, is currently
proceeding with Autoware development and promotional activities aimed at realization of fully automated driving.
ZMP Inc, which has attracted attention for automated driving technology, has a track record of development using
Autoware. Additionally, Tier IV announced in May 2017 that it will work with Axell Corporation <6730>, a fablesssemiconductor manufacturer, to jointly develop specialty semiconductors with functions required by automateddriving. AXE president Shozo Takeoka also serves as president of Tier IV. A professor from Nagoya University held
this position when Tier IV was founded, but switched to director in charge of technology development due to his
move to the University of Tokyo and Mr. Takeoka replaced him as the top executive.
*	T his stands for Robot Operating System, an amalgamation of software used to develop robots. It is fundamentallydeveloped as an open-source system.

AXE has about ¥300mn in annual sales with Toyota Tsusho and Nagoya University as its main customers. Whileit still incurs losses as a company in the investment stage, it possesses growth potential in the field of developing
automated driving systems. SOLXYZ decided to acquire a stake because of likely synergies with its efforts toprovide design assistance and system development in the automated driving field through a subsidiary. AXE is also
conducting R&D on deep learning and other AI technology that SOLXYZ might utilize in its mainstay Fleekdrive andFleekform cloud services to improve service functions.

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05 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/██Results trends
Smooth start toward realizing FY12/17 guidance
1. Review of 1Q FY12/17 results
SOLXYZ reported 1Q FY12/17 consolidated results with ¥3,373mn in net sales (+6.7% YoY), ¥91mn in operating
income (+18.4%), ¥99mn in recurring income (+77.1%), and ¥42mn in net income attributable to parent owners(vs. a ¥13mn loss in the previous year). Demand for system development from the financial industry was vibrant,
continuing the trend from FY12/16, and sales and profits increased mainly at subsidiaries Neumann, eXmotion,
E.I.SOL, and ASWare. The larger rise in recurring income primarily reflects improved derivative valuation income
because of the forex shift to a weaker yen.
Both net sales and operating income surpassed 50% fulfillment of 1H targets thanks to accelerated sales recognition
using the project progress standard for large deals with the financial industry. SOLXYZ prepared guidance that was
skewed toward 2H at the period-start stage because it expected project inspections in 2H. The 1H results arealso likely to exceed guidance based on the project progress standard. Orders are proceeding on track with initial
guidance at this point.
1Q FY12/17 results and full-year outlook(¥mn)
FY12/16

FY12/17

Full-year
results

YoYchange1Q results

YoYchange1H plan

13,288

17.4%

3,373

6.7%

12,964

19.7%

3,335

7.5%

324

-33.0%

38

COGS

10,831

19.7%

SG&A expenses

1,843

10.2%

Operating income

613

Recurring income
Net income attributable to parent owners

Net sales
Software development business
Digital signage businessYoYchangeFull-year
plan

YoY
change

6,300

0.2%

13,400

0.8%

6,052

-1.5%

12,9850.2%-37.4%

248

67.2%

415

28.0%

2,774

5.4%

5,100

-0.1%

10,700

-1.2%

507

12.3%

1,040

14.2%

2,000

8.5%

3.3%

91

18.4%

160

-41.2%

700

14.2%

604

-0.5%

99

77.1%

160

-28.9%

700

15.9%

363

20.8%

42

-

70

-29.3%

400

10.2%

Source: FISCO Inc. from company materials

2. FY12/17 guidance
SOLXYZ guides for FY12/17 consolidated results of ¥13,400mn in net sales (+0.8% YoY), ¥700mn in operating
income (+14.2%), ¥700mn in recurring income (+15.9%), and ¥400mn in net income attributable to parent owners(+10.2%). Segment sales targets are software development at ¥12,985mn (+0.2% YoY) and digital signage at¥415mn (+28.0%). Software development consists of ¥11,109mn from SI/consignment business (-5.4%) and¥1,876mn (+54.2%) from solutions business. For the SI/consignment business, SOLXYZ expects slight sales decline,
even after adjusting for a drop in equipment sales that rose substantially in the previous year, because of peaking
out of some major deals for the financial industry and promotion of orders activity that emphasizes profitability.
SOLXYZ hence only forecasts a minor rise in FY12/17 sales, but double-digit earnings growth. Below we review
initiatives in major businesses.

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06 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.
4284 Tokyo Stock Exchange First Section

30-Jun.-2017
http://www.solxyz.co.jp/investment/

Results trends(1) Fleekdrive and Fleekform cloud services
SOLXYZ changed the brand name for corporate cloud services to Fleekdrive and Fleekform in March. It adjusted
the billing plan to volume-based fees plus ID count for new customers, in addition to the existing volume-based
fees. Customer volume was almost entirely unchanged from the end-FY12/16 level in 1Q at around 160 companies
because of changes to the brand name and billing plan slated in March. SOLXYZ has ramped up sales activities
since 2Q and is targeting 200 customers and about ¥300mn in sales, a 50% YoY increase, in FY12/17.
(2) “Imairumo” IoT solution
SOLXYZ is focusing on sales of a home monitoring system for seniors using a sensor as an IoT solution. While
it is still continuing real-world tests with multiple local governments, including Aichi Prefecture, new product andservice development is advancing too. SOLXYZ announced “Imairumo PaPeRO i” service, which combines the“PaPeRO i” communications robot developed by NEC Corporation <6701> and its own system, and began sales
in May. It also started provision of the “Imairumo Kids Okaeri” smartphone app in June. It developed this app
as a solution service for IoT devices that support Project Linking*, a project ramped up by NTT DOCOMO, Inc.
<9437> and other major domestic firms and envisions utilization as a monitoring service for children. We will beclosely monitoring progress with this service.
*	This is a project involving collaboration by NTT DOCOMO and multiple other domestic IT firms aimed at IoT expansion andadvancement. It proposes a variety of uses that combine applications and devices.

(3) “TUNNEL EYE” IoT solution
The “TUNNEL EYE” energy management system is an IoT solution system developed by subsidiary E.I.SOL
in 2016. This system utilizes equipment that collect a variety of information at mountain tunneling project sites(sensors that detect people and vehicles, densitometers that measure the working environment, and wattmetersthat monitor the operating state of lighting, ventilation fans, dust collectors, and other electric equipment), gathers
the information over the Internet, provides warning notices to secure safety from outside the tunnel, and conducts
automated control of energy savings. Installation of this system improves safety at project sites and has thepotential to lower electricity costs. SOLXYZ had been promoting the system since April 2016 and received anorder from one construction firm in 1Q. It intends to broaden “TUNNEL EYE” functionality and demand might
increase if the system is applied to mountain tunnel work related to building the linear Shinkansen infrastructure.

Aiming for ¥1,000mn in consolidated recurring income in FY12/19
3. Three-year medium-term plan
SOLXYZ updates the three-year medium-term plan annually. It sets final-year goals in the latest plan of ¥15,000mn in
net sales and ¥1,000mn in recurring income in FY12/19. Average annual growth rates work out to 4.1% in sales and18.3% in recurring income. The plan also factors in an increase in recurring margin from 4.5% in FY12/16 to 6.7%.

We encourage readers to review our complete legal statement on “Disclaimer” page.

07 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.

30-Jun.-20174284 Tokyo Stock Exchange First Section

http://www.solxyz.co.jp/investment/

Results trends㻹㼑㼐㼕㼡㼙㻙㼠㼑㼞㼙㻌㼞㼑㼟㼡㼘㼠㼟㻌㼜㼘㼍㼚（¥mn）

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（¥mn）

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㻥㻜㻜㻝㻘㻜㻜㻜㻝㻞㻘㻜㻜㻜

㻝㻜㻘㻜㻜㻜

㻣㻜㻜

㻢㻜㻣

㻤㻜㻜

㻢㻜㻟

㻤㻘㻜㻜㻜
㻢㻘㻜㻜㻜

㻝㻟㻘㻠㻜㻜

㻝㻟㻘㻞㻤㻤

㻝㻠㻘㻜㻜㻜

㻝㻡㻘㻜㻜㻜

㻝㻝㻘㻟㻝㻡

㻢㻜㻜
㻠㻜㻜

㻠㻘㻜㻜㻜
㻞㻜㻜

㻞㻘㻜㻜㻜
㻜

㻜

㻲㼅㻝㻞㻛㻝㻡

㻲㼅㻝㻞㻛㻝㻢

㻲㼅㻝㻞㻛㻝㻣㻱

㻲㼅㻝㻞㻛㻝㻤㻱

㻲㼅㻝㻞㻛㻝㻥㻱

Source: FISCO Inc. from company materials

SOLXYZ plans to promote the following four initiatives as its core policies for the medium-term plan.
(1) Strengthening the management base
It intends to reassess existing businesses and promote the concentration of business resources in growth areas
and rebuilding of money-losing divisions. In growth areas, it will aggressively advance and bolster activities while
conducting feasibility studies and confirming synergies within the group. Reinforcement is primarily targeting
automated driving, FinTech, IoT, and AI at this point.
(2) Improving competitiveness in the mainstay SI business
It will continue to pursue specialization by industry and business area and strengthen non-price competitiveness.
Additionally, it will bolster cost competitiveness by actively utilizing offshore and near-shore development andpromote sharing of low-cost benefits with customers.
(3) Reinforcing and expanding recurrent business
It will reinforce and expand Fleekdrive and Fleekform, Imairumo, TUNNEL EYE, MyColle Keeper (personal ID
number solution), and other existing recurrent businesses and seek to strengthen the business foundation andstabilize earnings. It hopes to raise recurrent business to 50% of overall earnings in the future. Additionally, itplans to focus on the development of new cloud services using group solutions in response to expansion of thecloud market.
(4) Expanding the overseas market
It is actively and rapidly deploying excellent products and services from inside and outside the group in the Chinese
market and Southeast Asian market and aims to expand in these regions as new markets for recurring business.
It also intends to similarly roll out products and services in the North American market at some point.
Key management issues are hiring and training system engineers that are chronically in short supply and expanding
the network of cooperating firms. We think SOLXYZ is capable of attaining medium-term plan goals if it resolves
these issues.

We encourage readers to review our complete legal statement on “Disclaimer” page.

08 09

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

SOLXYZ Co., Ltd.

30-Jun.-20174284 Tokyo Stock Exchange First Section

http://www.solxyz.co.jp/investment/██Shareholder return measures
Committed to the continuation of a stable dividend as the main policy
SOLXYZ pays dividends as shareholder return. Its dividend policy calls for “continuing stable dividends as much as
possible while taking into account the dividend payout ratio and having dividends adjust to earnings.” It plans to
pay a ¥5.0 dividend in FY12/17 (FY12/16’s ¥8.0 dividend included ¥3.0 as a commemorative dividend for the TSE-1
listing). Furthermore, it introduced a shareholder gift program that gives domestic Koshihikari rice in amounts tied
to stocks owned to shareholders as of end-June and end-December (2kg for 200 or more shares, 5kg for 1,000 or
more shares, and 10kg for 10,000 or more shares).

㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼑㼞㻌㼟㼔㼍㼞㼑㻌㼍㼚㼐㻌㼐㼕㼢㼕㼐㼑㼚㼐㻌㼜㼍㼥㼛㼡㼠㻌㼞㼍㼠㼕㼛（¥）

㻰㼕㼢㼕㼐㼑㼚㼐㻌㻔㼘㼑㼒㼠㻌㼍㼤㼕㼟㻕㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼍㼥㼛㼡㼠㻌㼞㼍㼠㼕㼛㻌㻔㼞㼕㼓㼔㼠㻌㼍㼤㼕㼟㻕

㻝㻜㻚㻜
㻤㻚㻜

㻟㻜㻚㻜㻑

㻞㻢㻚㻡㻑

㻞㻡㻚㻜㻑
㻝㻥㻚㻥㻑

㻝㻤㻚㻤㻑

㻞㻜㻚㻜㻑

㻢㻚㻜

㻝㻡㻚㻜㻑
㻝㻞㻚㻥㻑

㻝㻡㻚㻜㻑

㻠㻚㻜

㻤㻚㻜㻌
㻝㻜㻚㻜㻑

㻞㻚㻜

㻡㻚㻜㻌

㻡㻚㻜㻌

㻡㻚㻜㻌

㻡㻚㻜㻌

㻡㻚㻜㻑

㻜㻚㻜

㻜㻚㻜㻑
㻲㼅㻝㻞㻛㻝㻟

㻲㼅㻝㻞㻛㻝㻠

㻲㼅㻝㻞㻛㻝㻡

㻲㼅㻝㻞㻛㻝㻢

㻲㼅㻝㻞㻛㻝㻣㻱

*FY12/16 included a ¥3.0 commemorative dividend for listing on the TSE㻙㻝㻌㼙㼍㼞㼗㼑㼠
Source: FISCO Inc. from abbreviated financial statements

We encourage readers to review our complete legal statement on “Disclaimer” page.

09 09

Disclaimer
FISCO Ltd. (the terms “FISCO”, “we”, mean FISCO Ltd.) has legal agreements with theTokyo Stock Exchange, the Osaka Exchange,and Nikkei Inc. as to the usage of stock priceand index information. The trademark and value of the “JASDAQ INDEX” are the intellectual
properties of the Tokyo Stock Exchange, and therefore all rights to them belong to the Tokyo
Stock Exchange.
This report is based on information that we believe to be reliable, but we do not confirm or
guarantee its accuracy, timeliness,or completeness, or the value of the securities issued bycompanies cited in this report. Regardless of purpose,investors should decide how to use
this report and take full responsibility for such use. We shall not be liable for any result of its
use. We provide this report solely for the purpose of information, not to induce investment or
any other action.
This report was prepared at the request of its subject company using information provided
by the company in interviews, but the entire content of the report, including suppositions andconclusions, is the result of our analysis. The content of this report is based on informationthat was current at the time the report was produced, but this information and the content of
this report are subject to change without prior notice.
All intellectual property rights to this report, including copyrights to its text and data, areheld exclusively by FISCO. Any alteration or processing of the report or duplications of thereport, without the express written consent of FISCO, is strictly prohibited. Any transmission,
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The final selection of investments and determination of appropriate prices for investment
transactions are decisions for the recipients of this report.
FISCO Ltd.