Consolidated Financial
Statements
Consolidated Balance Sheet ( As of March 31, 2016 )$1 = ¥ 112.68$ ( thousands )¥ ( thousands )

2016

2015

2016

ASSETS
Current Assets :Cash and deposits¥

7,416,046¥

9,990,817$

88,665

Accounts receivable - trade

3,521,010

3,584,792

31,813

Prepaid expenses

132,534

138,762

1,231

Deferred tax assets
Designated assets for clearing funds
OthersAllowance for doubtful accounts
Total Current Assets

151,054

165,900

1,472

38,949,709

38,543,855

342,064

4,202

1,947

17( 6,868 )( 695 )

(6)

50,167,688

52,425,380

465,258

Non-current Assets :Property and Equipment :Buildings and accompanying facilities
Accumulated depreciation

845,681863,656

7,664( 471,276 )( 503,436 )( 4,467 )Buildings and accompanying facilities, net

374,404

360,220

3,196

Tools and furniture

3,677,415

3,663,272

32,510

Accumulated depreciation( 1,963,595 )( 2,517,625 )( 22,343 )Tools and furniture, net

1,713,819

1,145,647

10,167

Total Property and Equipment

2,088,224

1,505,867

13,364

Software

18,596,720

15,812,040

140,326

Software in progress

1,825,420

142,023

1,260

Intangible Assets :OthersTotal Intangible Assets

17,462

17,347

153

20,439,604

15,971,410

141,741

Investments and Other Assets :Investment securities

501,957--

Long-term prepaid expenses

100,096

90,936

807

Deferred tax assets

255,892

267,225

2,371

Long-term refundable lease deposits

402,737

443,791

3,938

Claims provable in bankruptcy, rehabilitation and other

17,603

15,341

136

OthersAllowance for doubtful accounts
Total Investment and Other Assets
Total Non-current AssetsTotal Assets- 35 -

1,000

1,0008( 11,930 )( 9,848 )( 87 )

1,267,358

808,446

7,174

23,795,186

18,285,724

162,280¥ 73,962,874¥ 70,711,104$ 627,539

The accompanying consolidated financial statements

statements. Such U.S. dollar amounts are presented herein

expressed in Japanese yen are the translation of thosesolely for the convenience of readers outside Japan, and areissued domestically. The amounts expressed in U.S. dollars

not subject to audit.

are not included in the original audited consolidated financial¥ ( thousands )$ ( thousands )

2016

2015

2016

LIABILITIESCurrent Liabilities :Accounts payable - trade¥895,554¥

1,003,327$8,904812--

Accounts payable - other248,983

40,812362

Consumption taxes payable

759,343

363,950

3,229

Income taxes payable

732,686

841,302

7,466

Allowance for employees’ bonuses

238,456

230,135

2,042

Lease obligations

Allowance for executives’ bonuses

22,00022,000195

Deposits received for clearing funds

38,949,709

38,543,855

342,064

OthersTotal Current Liabilities

75,36580,123711

41,922,911

41,125,508

364,976

5,000,000--

582,597

657,324

5,833-

27,168241

Non-current Liabilities :Long-term loans payable
Liability for retirement benefits
OthersTotal Non-current Liabilities

5,582,597

684,493

6,074

Total Liabilities

47,505,509

41,810,001

371,050

4,250,000

4,250,000

37,717NET ASSETS
Shareholders’ Equity :Common stock
Capital surplus

4,250,000

4,250,000

37,717Retained earnings

17,957,365

20,401,102

181,053

Total Shareholders’ Equity

26,457,365

28,901,102

256,488

Total Net Assets

26,457,365

28,901,102

256,488¥ 73,962,874¥ 70,711,104$ 627,539

Total Liabilities and Net Assets- 36 -Consolidated Financial
Statements
Consolidated Statement of Income and Comprehensive Income( For the year ended March 31, 2016 )¥ ( thousands )$ ( thousands )

2016

2015

2016

¥ 19,967,287¥ 20,945,566$ 185,885

Executives’ compensation

190,854

198,927

1,765

Salaries

2,027,032

2,011,642

17,852

Allowance for employees’ bonuses

238,456

230,135

2,042

Allowance for executives’ bonuses

22,00022,000195

Operating Revenue
Operating Expenses :136,157

141,828

1,258Maintenance of systems

Retirement benefit expenses

6,261,277

6,171,744

54,772

Depreciation and amortization

5,834,273

5,960,019

52,893552,926

541,285

4,803

Rent
Others1,464,675

1,437,720

12,759Total Operating Expenses

16,727,654

16,715,302

148,343

Operating Income

3,239,632

4,230,263

37,542410Non-operating Income :Interest income
Operational revenue on designated assets for clearing funds

5,977

3,502

31

Equity in earnings of an affiliate

88,163

226,493

2,010

Registered members’ information disclosure claim charges

18,93015,814140-

3,159

28

11,165

10,672

94

124,240

259,6452,304Interest expenses

77,80323,003

204

Commitment fees

44,99945,123400

Fees for fund operation of designated assets for clearing fund

7,889

8,414

74

697

158

1

System-related income
OthersTotal Non-operating Income
Non-operating Expenses :OthersTotal Non-operating Expenses
Ordinary Income

131,390

76,699680

3,232,482

4,413,208

39,165Extraordinary Losses :Loss on sale of investment securities
Total Extraordinary Losses
Income before Income Taxes and Minority Interests-13,955

123-

13,955123

3,232,4824,399,252

39,041

Income taxes - current

1,146,079

1,471,693

13,060

Income taxes - deferred

20,732( 26,178 )( 232 )

Total Income Taxes
Net Income

1,166,812

1,445,515

12,8282,065,670

2,953,737

26,213

2,065,670

2,953,737

26,213( Details of Net Income )Net Income attributable to shareholders of the parent company
Net Income attributable to non-controlling interests-

Comprehensive Income--¥ 2,065,670¥

2,953,737$

26,213¥ 2,065,670¥

2,953,737$

26,213( Details of Comprehensive Income )Comprehensive income attributable to shareholders of the parent company
Comprehensive income attributable to non-controlling interests- 37 ---

Consolidated Statement of Changes in Net Assets ( For the year ended March 31, 2016 )¥ ( thousands )For the year ended

Shareholders’ Equity

March 31, 2015
CommonStockCapitalSurplusRetainedEarnings

Total
Shareholders’EquityTotal
Net Assets¥ 4,250,000¥ 4,250,000¥ 16,401,694¥ 24,901,694¥ 24,901,694

Dividends from surplus--( 510,000 )( 510,000 )( 510,000 )Net income attributable to shareholdersof the parent company--2,065,670

2,065,670

2,065,670

Balance at the beginning of the period
Change during the period :--1,555,670

1,555,670

1,555,670¥ 4,250,000¥ 4,250,000¥ 17,957,365¥ 26,457,365¥ 26,457,365

Total change during the period
Balance at the end of the period¥ ( thousands )For the year ended

Shareholders’ Equity

March 31, 2016
CommonStockCapitalSurplusRetainedEarnings

Total
Shareholders’EquityTotal
Net Assets¥ 4,250,000¥ 4,250,000¥ 17,957,365¥ 26,457,365¥ 26,457,365

Dividends from surplus--( 510,000 )( 510,000 )( 510,000 )Net income attributable to shareholdersof the parent company--

2,953,737

2,953,737

2,953,737

Balance at the beginning of the period
Change during the period :--2,443,737

2,443,737

2,443,737¥ 4,250,000¥ 4,250,000¥ 20,401,102¥ 28,901,102¥ 28,901,102

Total change during the period
Balance at the end of the period$ ( thousands )Shareholders’ Equity
CommonStock
Balance at the beginning of the period$37,717

Total
Shareholders’EquityTotal
Net Assets$ 159,366$ 234,800$ 234,800

CapitalSurplusRetainedEarnings$37,717

Change during the period :Dividends from surplus--( 4,526 )( 4,526 )( 4,526 )Net income attributable to shareholdersof the parent company--

26,213

26,213

26,213

Total change during the period
Balance at the end of the period$37,717$- 38 --

21,687

21,687

21,68737,717$ 181,053$ 256,488$ 256,488

Consolidated Financial
Statements

Consolidated Statement of Cash Flows ( For the year ended March 31, 2016 )¥ ( thousands )$ ( thousands )

2015

2016

2016

Cash Flows from Operating Activities :Income before income taxes and minority interests¥ 3,232,482

Depreciation and amortization¥

4,399,252$

39,041

5,834,273

5,960,019

52,893( Decrease ) increase in allowance for doubtful accounts( 9,988 )( 8,254 )( 73 )( Decrease ) increase in allowance for employees’ bonuses

29,350( 8,321 )( 73 )( Decrease ) increase in allowance for executives’ bonuses( 1,000 )--( Decrease ) increase in allowance for executives’ retirement benefits( 30,000 )--( Decrease ) increase in allowance for asset removal( 84,083 )--Increase ( decrease ) in liability for retirement benefits

71,72974,727

663

(4)

(1)

(0)

Interest income

77,80323,003204

Equity in ( earnings ) loss of affiliates( 88,163 )( 226,493 )( 2,010 )Foreign exchange losses ( gains )( 1,028 )

141

1

-

13,955123( Increase ) decrease in accounts receivable - trade( 349,943 )( 61,519 )( 545 )

Increase ( decrease ) in accounts payable - trade( 115,476 )

107,773956

Decrease / increase in consumption taxes receivable / payable

916,463( 395,392 )( 3,508 )Others( 11,593 )

16,761148

9,470,821

9,895,650

87,820Interest expenses

Loss on sale of investment securities

Sub-total

13,684

11,481

101

Interest paid

Interest and dividends received( 77,803 )( 23,003 )( 204 )

Income taxes paid

( 988,646 )( 1,387,291 )( 12,311 )

8,418,055

8,496,836

75,406Net Cash Provided by Operating Activities
Cash Flows from Investing Activities :Payments for purchase of property and equipment( 693,285 )( 41,111 )( 364 )

Payments for purchase of intangible assets( 1,694,749 )( 1,031,961 )( 9,158 )Proceeds from sale of investment securities
Proceeds from refund of refundable lease deposits
Payments for refundable lease deposits

703,0156,239-( 364 )-

( 41,054 )( 62,694 )--( 2,350,033 )( 411,111 )( 3,648 )( 4,400,000 )( 5,000,000 )( 44,373 )Payments for refund of guarantee deposits received
Net Cash Used in Investing Activities

100,696

Cash Flows from Financing Activities :Repayments of long-term loans payable( 5,880 )( 812 )

(7)

( 510,000 )( 510,000 )( 4,526 )( 4,915,880 )( 5,510,812 )( 48,906 )1,028( 141 )

(1)

Increase ( Decrease ) in Cash and Cash Equivalents

1,153,169

2,574,770

22,850Cash and Cash Equivalents, Beginning of Year

6,262,876

7,416,046

65,815

7,416,046¥ 9,990,817

Repayments of lease obligations
Cash dividends paid
Net Cash Used in Financing Activities
Effect of exchange rate changes on cash and cash equivalents¥

Cash and Cash Equivalents, End of Year- 39 -$88,665