To Our Shareholders. MinebeaMitsumi Inc. The 72nd Business Year Business Report. March 31, April 1, Securities Code 6479

Transcription

1 To Our Shareholders The 72nd Business Year Business Report April 1, 2017 March 31, 2018 MinebeaMitsumi Inc. Securities Code 6479

2 Business Summary As the Fiscal Year 2018 (April 1, March 31, 2018) has ended, we would like to present our business summary. Overview of the year During the fiscal year under review (April 1, 2017 to March 31, 2018), the Japanese economy continued its gradual recovery. Although there was a growing sense of uncertainty about the future in the second half of the fiscal year due to such factors as appreciation of the yen stemming from U.S. trade policy, consumer spending and corporate earnings improved on a fullyear basis. In the U.S. economy, consumer spending and corporate production remained robust against a backdrop of improvements in both employment conditions and domestic and foreign demand. Recent growth in consumer spending slowed in the European economy due to higher prices, but corporate production and exports increased against the backdrop of a strong global economy. In Asia, corporate production and exports increased in China owing to the global economic recovery, and consumer spending remained robust in response to favorable employment and income conditions. Working against this backdrop, the MinebeaMitsumi Group has been concentrating on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further. As a result, net sales were up 240,213 million yen (37.6%) year on year to 879,139 million yen, the highest since our founding. Operating income was up 30,147 million yen (61.5%) year on year to 79,162 million yen, ordinary income was up 29,645 million yen (61.3%) to 78,038 million yen, and income attributable to owners of the parent was up 18,236 million yen (44.3%) to 59,382 million yen, all breaking previous records. Basic policy for profit sharing Sharing profits with our shareholders is job one at MinebeaMitsumi. Our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholders. Dividends, while reflecting performance, are determined in light of the overall business environment and with an eye to maintaining a stable and continuous distribution of profits. In line with our basic policy, we decided to pay a year-end dividend of 13 yen per share for the fiscal year under review. Combined with the interim dividend of 13 yen per share, this makes a total dividend of 26 yen per share for the year, which is a dividend increase of 12 yen compared with the previous fiscal year. Outlook for the next fiscal year The global economy is plagued by uncertainty, including trade policies in each country, interest rate trends, geopolitical risks, and exchange rate trends. In the midst of these circumstances, our forecast for full-year consolidated results based on our best estimates at this point in time is provided below. Net sales Operating income Profit attributable to owners of the parent The outlook by segment for the full year is as follows: 940,000 million yen 83,000 million yen 65,000 million yen Machined components business We will continue to work on boosting performance of the ball bearing business, our anchor business line, by aggressively expanding sales targeting the automobile, information and telecommunications equipment industries, etc. and preparing a system for substantially increased Financial Highlights Net Sales Operating Income Ordinary Income (Unit: millions of yen) Non-Consolidated Consolidated (Unit: millions of yen) Non-Consolidated Consolidated (Unit: millions of yen) Non-Consolidated Consolidated FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 1

3 The following is an English translation of the Business Report for the 72nd Business Year (FY2018) of MinebeaMitsumi Inc. The Company provides this translation for your reference and convenience only and without any warranty as to its accuracy or otherwise. production and supply through productivity improvement and capital investment in conjunction with the increase in global demand. Furthermore, we will also boost productivity in the rod-end bearing business by fundamentally revising production methods, and also work to boost sales and increase competitiveness in the market for small and medium aircraft, which is expected to see further growth. Electronic devices and components business We will continue to supply high-value-added LED backlights for LCDs featuring ultra-thin light guide plates to the high-end smartphone market, and will work on increasing sales of products for automobiles. Working with an eye to enhancing the performance of our stepping motor business, we will zero in on enhancing quality and cutting costs as we work to increase sales of high-value-added products for automobiles, servers, and other applications. MITSUMI business Creating significant synergy utilizing the overall scale of MinebeaMitsumi, we will work to enhance our competitiveness and further boost performance. As greater functionality is brought to camera actuators, and smartphone-related products such as switches, we will maintain and improve quality while increasing productivity in an effort to further increase sales. With game console-related products, we will pursue greater productivity and work to improve performance. With automotive products such as antennas, communication modules and connectors, we will further expand sales by increasing our lineup through new product development and reducing costs, such as material and logistics costs. Other businesses We will concentrate on enhancing the accuracy of machine components made in-house in order to improve production efficiency for the departments that produce finished products and bring quality to new heights. We look forward to your continuous support and guidance. Yoshihisa Kainuma Representative Director June 2018 Income Attributable to Owners of the Parent Total Assets Net Assets (Unit: millions of yen) Non-Consolidated Consolidated (Unit: millions of yen) Non-Consolidated Consolidated (Unit: millions of yen) Non-Consolidated Consolidated FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 2

4 Overview by Business Segment Machined Components Business Net Sales 176,391 million yen Up 12.8% 20 1 Net Sales Composition 20.1% The main products in our Machined components segment include our anchor product line, ball bearings, in addition to mechanical components such as rodend bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fasteners for aircraft. Sales of ball bearings to external customers hit record highs five times on a monthly basis as demand soared for energy-efficient models, safety devices in the automobile market and for fan motors. In March, the number of units reached 213 million. Rod-end bearing sales increased in response to a recovery in orders in the small and medium aircraft market despite declining production of large models in the civil aircraft market. Meanwhile, pivot assembly sales were down both in volume and amount despite our solid market share due to the impact of the shrinking HDD market. As a result, net sales were up 20,081 million yen (12.8%) year on year to 176,391 million yen, and operating income was up 3,580 million yen (9.1%) to 42,727 million yen. Electronic Devices and Components Business Net Sales 451,460 million yen Up 2.2% 51 3 Net Sales Composition 51.3% The core products of our Electronic devices and components segment include electronic devices (LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers (fan motors), precision motors, and special devices. Demand for our LED backlights for LCDs that offer a technological advantage in thin smartphones remained strong. Sales of stepping motors and other motors also grew mainly in the automobile and office automation markets. As a result, net sales were up 9,845 million yen (2.2%) year on year to 451,460 million yen, and operating income was up 9,291 million yen (42.4%) to 31,189 million yen. 3

5 MITSUMI Business Net Sales 250,592 million yen Up 521.2% 28 5 Net Sales Composition 28.5% The main products in MITSUMI business segment are semiconductor devices, optical devices, mechanical parts, high frequency components, power supply components. All products, including camera actuators, mechanical parts for game consoles, products for smartphones such as switches and protection IC, antennas, communication modules, and connectors performed well. As a result, net sales were up 210,250 million yen (521.2%) year on year to 250,592 million yen, and operating income was up 19,197 million yen (829.2%) to 21,512 million yen. As MITSUMI ELECTRIC CO., LTD. merged with the Company on January 27, 2017, the results for the previous fiscal year were from January 27, 2017 to March 31, Other Businesses Net Sales 695 million yen Up 5.6% 0 1 Machines produced in-house are the main products in our Other businesses segment. Net sales increased 37 million yen (5.6%) year on year to reach 695 million yen, and the operating loss fell 5 million yen, to total 125 million yen. Net Sales Composition 0.1% Note: Aside from the above, 16,140 million yen in corporate expenses that do not belong to the segments is shown as an adjustment. Adjustments in the previous fiscal year came to 14,223 million yen. 4

6 MinebeaMitsumi Group New Medium-term Business Plan Targets (FY FY2021) 1 trillion yen in sales and 100 billion yen in operating income On top of organic growth, we will actively pursue M&As Net sales Operating income Operating margin (Billions of yen) (Billions of yen) 1, , , M&As , *plan as of Feb *plan as of Nov *plan as of Nov % *plan as of May % *plan as of May % *plan as of May % FY3/18 FY3/19 FY3/20 FY3/21 Plan Plan Plan *JGAAP until FY3/18, IFRS for FY3/19 Machined components business Electronic devices and components business MITSUMI business Continuous expansion of ball bearing demand Profit improvement of rod-end business and realize synergies with acquisitions Motor business will concentrate on automotive applications (Slovakia plant goes on line this July) Strengthen our development capabilities especially for automotive motors (China technical center is scheduled to open this October) Early market launch of the high sensitivity/ high resistance strain gauges, MINEGE TM Productivity improvement and sales expansion of core business Launch a number of new products Significant productivity improvement and strengthen production capacity of optical devices and mechanical components business 5

7 Topics We also have reports on some topics on our website at Achieved Two World Records!! - Fidget Spinner Using MinebeaMitsumi s Bearings TV Advertisement - Ultra Precision Fidget Spinner A fidget spinner using MinebeaMitsumi s ball bearing with a 1.5mm outer diameter was accredited as the world s smallest fidget spinner (total length 5.09mm) by a third party. Also, using a fidget spinner Real Spin Ms, which was developed jointly with Mitsubishi Precision Co., Ltd., one of our employees achieved the world s longest spinning time (24 minutes, seconds), accredited as Longest duration spinning a fidget spinner on one finger. The Company was widely promoted to general consumers as TV advertisements themed on these two spinners were broadcast nationwide in Japan and elicited a tremendous response. Left: The world s smallest fidget spinner Right: The world s longest duration spinning record fidget spinner Participation in the World s Largest Lighting Exhibition Light+Building 2018 In March 2018, for the first time, the Company participated in the world s largest lighting and architectural technology exhibition Light+Building 2018 held in Frankfurt, Germany and exhibited our smart LED lighting SALIOT (Smart Adjustable Light for the Internet Of Things). Under the theme of Lighting Innovation, we added new value to lighting and proposed SALIOT lineups to enterprises involved in lighting business in the European market such as stores, museums, and hotels. The Company will continue to expand sales and promote its products to boost the presence of our lighting product brand throughout the world. Light+Building 2018 SALIOT CUBE Awarded the DFA Awards SALIOT CUBE, the cubic rersion of SALIOT, was awarded a prize at the DFA organized by the Hong King Design Centre. SALIOT CUBE has already won the 2016 Good Design Award (Japan) and the if Design Award (Germany), and this was the third design award that SALIOT CUBE received. Acquisition of Shares of the French and Indian Aircraft Mechanical Parts Manufacturer NMB Minebea S.a.r.l. ( NMB France ), one of the European subsidiaries of MinebeaMitsumi, acquired all shares of Mac Aero Bretigny Rectification SAS, which is engaged in the sales and manufacturing of rodend and spherical bearings as well as the mechanical components integrating such products to be used for aircraft. In addition, NMB France and NMB-Minebea UK Ltd. jointly acquired all shares of Mach Aero Components Private Ltd., which is Mach Aero s mass production plant. France has been positioned as the hub of the aerospace business in Europe. We intend to expand and further develop the said business in Europe with the view to enhancing our competitive advantage in this field through the effective utilization of us having manufacturing facilities of machined components in France and India. Spherical bearings embedded product 6

8 Consolidated Financial Statements 7 Consolidated Balance Sheets (unit: millions of yen) Fiscal year 2018 (as of March 31, 2018) Fiscal year 2017 (as of March 31, 2017) Assets Current assets 443, ,574 Cash and deposits 104,894 93,125 Notes and accounts receivable 167, ,190 Marketable securities 1,499 1,840 Finished goods 39,417 33,394 Work in process 41,434 32,961 Raw materials 51,603 36,166 Supplies 5,834 7,566 Goods in transit 11,834 10,351 Deferred tax assets 7,915 5,846 Other 12,855 13,783 Allowance for doubtful receivables (696) (654) Fixed assets 263, ,426 Tangible fixed assets 223, ,584 Intangible assets 17,125 13,403 Investments and other assets 23,576 24,438 Deferred asset Total assets 707, ,312 Fiscal year 2018 (as of March 31, 2018) Fiscal year 2017 (as of March 31, 2017) Liabilities Current liabilities 236, ,128 Notes and accounts payable 98,342 86,570 Short-term debt 60,433 49,660 Current portion of long-term debt 20,304 17,916 Lease obligations Asset retirement obligations - 2 Accrued income taxes 6,695 4,621 Accrued bonuses 10,874 7,879 Accrued bonuses for directors Provision for after-care of products Provision for environmental remediation expenses Provision for business restructuring losses Other 38,345 32,706 Long-term liabilities 98, ,965 Bonds 15,000 15,000 Convertible bond-type bonds with 20,406 20,501 subscription rights to shares Long-term debt 41,271 60,933 Lease obligations Asset retirement obligations Provision for retirement benefits for executive officers Provision for environmental remediation expenses Net defined benefit liability 15,583 15,683 Other 5,359 4,169 Total liabilities 334, ,093 Net Assets Shareholders equity 412, ,043 Common stock 68,258 68,258 Capital surplus 142, ,218 Retained earnings 210, ,910 Treasury stock (9,496) (1,345) Accumulated other comprehensive income (46,302) (49,678) Difference on revaluation of available-for-sale securities 1,363 1,233 Deferred gains or losses on hedges 149 1,031 Foreign currency translation adjustments (46,039) (50,290) Remeasurements of defined benefit plans (1,776) (1,653) Subscription rights to shares Non-controlling interests 7,286 4,823 Total net assets 373, ,218 Total liabilities and net assets 707, ,312 Note: Amounts less than one million yen have been omitted.

9 Consolidated Statements of Income (unit: millions of yen) Fiscal year 2018 (Apr thru Mar. 2018) Fiscal year 2017 (Apr thru Mar. 2017) Net sales 879, ,926 Cost of sales 701, ,077 Gross profit 177, ,849 Selling, general and administrative expenses 98,521 76,833 Operating income 79,162 49,015 Other income 2,843 1,864 Interest income Dividends income Rent income of fixed assets Dividends from insurance Other 1, Other expenses 3,967 2,486 Interest expenses Foreign exchange losses 1, Share of loss of entities accounted for using equity method - 50 Other 1,354 1,416 Ordinary income 78,038 48,393 Extraordinary gain ,149 Gain on sales of fixed assets Gain on sales of investment securities 15 - Gain on sales of affiliates Gain on bargain purchase - 14,619 Gain on extinguishment of tie-in shares 54 - Gain on reversal of subscription rights to shares - 42 Reversal of provision for environmental remediation expenses 26 - Extraordinary loss 7,052 15,069 Loss on sales of fixed assets Loss on disposal of fixed assets 1,268 1,926 Impairment loss 5,474 3,921 Amortization of goodwill 31 - Loss on liquidation of affiliates - 1,270 Loss on sales of affiliates - 2 Business restructuring losses Loss for after-care of products - 12 Settlement loss 123 1,096 Provision for environmental remediation expenses Loss on bonds redemption - 6,196 Income before income taxes 71,230 48,473 Current Income taxes (including enterprise tax) 13,463 8,421 Income taxes for prior periods - 1,350 Deferred income taxes (2,032) (2,798) Total income taxes 11,430 6,972 Net income 59,799 41,500 Income attributable to non-controlling interests Income attributable to owners of the parent 59,382 41,146 Note: Amounts less than one million yen have been omitted. 8

10 Consolidated Statement of Changes in Net Assets (unit: millions of yen) (Apr thru Mar. 2018) Common stock Shareholders equity Capital surplus Retained earnings Treasury stock Total shareholders equity Accumulated other comprehensive income Difference on revaluation of availablefor-sale securities Deferred gains or losses on hedges Foreign currency translation adjustments Remeasure -ments of defined benefit plans Total accumulated other comprehensive income Subscription rights to shares Noncontrolling interests Balance at beginning of current fiscal year 68, , ,910 (1,345) 371,043 1,233 1,031 (50,290) (1,653) (49,678) 30 4, ,218 Changes Cash dividend from retained earnings (8,410) (8,410) (8,410) Income attributable to owners of the parent 59,382 59,382 59,382 Purchase of treasury stocks (8,377) (8,377) (8,377) Disposal of treasury stocks 1, ,341 1,341 Change in ownership interest of parent due to transactions with (2,739) (2,739) (2,739) non-controlling interests Exercise of subscription rights to shares Change (net) in non-shareholder s equity 130 (882) 4,250 (123) 3,375 (11) 2,642 5,285 items Total changes - (1,612) 50,972 (8,151) 41, (882) 4,250 (123) 3,375 (11) 2,642 47,034 Balance at end of current fiscal year 68, , ,883 (9,496) 412,251 1, (46,039) (1,776) (46,302) 18 7, ,253 Note: Amounts less than one million yen have been omitted. Total net assets Consolidated Statements of Cash Flows (unit: millions of yen) 9 Fiscal year 2018 (Apr thru Mar. 2018) Fiscal year 2017 (Apr thru Mar. 2017) Cash flows from operating activities 96,606 83,125 Cash flows from investing activities (59,453) (46,800) Cash flows from financing activities (27,026) (17,339) Effect of exchange rate changes on cash and cash equivalents (533) (1,765) Net increase (decrease) in cash and cash equivalents 9,592 17,218 Cash and cash equivalents at beginning of year 78,832 29,141 Increase in cash and cash equivalents from newly consolidated subsidiary - 32,472 Increase in cash and cash equivalents resulting from consolidation of unconsolidated subsidiaries Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 92 - Cash and cash equivalents at end of year 88,704 78,832 Note: Amounts less than one million yen have been omitted.

11 Non-Consolidated Financial Statements Non-Consolidated Balance Sheets (unit: millions of yen) Fiscal year 2018 (as of March 31, 2018) Fiscal year 2017 (as of March 31, 2017) Assets Current assets 150, ,724 Cash and deposits 14,853 14,976 Notes receivable 4,123 3,634 Accounts receivable 79,319 80,121 Purchased goods 3,933 3,683 Finished goods 1,133 1,322 Work in process 6,918 6,567 Raw materials 1,919 1,801 Supplies Goods in transit 1,274 1,278 Advances to vendor Prepaid expenses Short-term loans receivable from affiliates 29,804 43,170 Accounts receivable - other 3,140 2,516 Temporary advance Deferred tax assets 2,528 2,689 Other Fixed assets 326, ,578 Tangible fixed assets 41,055 40,491 Intangible assets 3,823 3,945 Investments and other assets 281, ,141 Investments securities 5,666 5,633 Investments securities in subsidiaries and affiliates 225, ,812 Investments in capital 0 0 Investments in capital with subsidiaries and affiliates 49,714 45,000 Long-term loans receivable from subsidiaries and affiliates Long-term prepaid expenses Deferred tax assets 668 1,048 Other Allowance for doubtful receivables (189) (198) Deferred asset Bond issuance expenses Total assets 477, ,615 Fiscal year 2018 (as of March 31, 2018) Fiscal year 2017 (as of March 31, 2017) Liabilities Current liabilities 148, ,314 Accounts payable 68,366 68,851 Short-term debt 46,600 44,500 Current portion of long-term loans payable 20,100 14,600 Lease obligations Accounts payable - other 3,895 3,682 Accrued expenses 1,657 1,632 Accrued income taxes 1, Advances received - 3 Deposits received Deferred income 0 0 Accrued bonuses 4,882 4,234 Allowance for bonuses to directors Allowance for after-care of products Other Long-term liabilities 78,482 97,373 Bonds 15,000 15,000 Convertible bond-type bonds with 20,406 20,501 subscription rights to shares Long-term debt 40,850 59,950 Lease obligations Allowance for retirement benefits 1,611 1,310 Provision for retirement benefits for executive officers Other Total liabilities 227, ,687 Net Assets Shareholders equity 249, ,666 Common stock 68,258 68,258 Capital surplus 144, ,807 Capital reserve 126, ,800 Other 18,134 17,007 Retained earnings 45,585 33,945 Earned surplus 2,085 2,085 Other 43,500 31,860 Reserve for reduction entry 2,188 2,188 Reserve for general purpose 6,500 6,500 Retained earnings carried forward 34,811 23,171 Treasury stock (9,496) (1,345) Revaluation / Translation differences 1,368 1,230 Difference on revaluation of available-for-sale securities 1,364 1,230 Deferred gains or losses on hedges 3 0 Subscription rights to shares Total net assets 250, ,927 Total liabilities and net assets 477, ,615 Note: Amounts less than one million yen have been omitted. 10

12 Non-Consolidated Statements of Income (unit: millions of yen) Fiscal year 2018 (Apr thru Mar. 2018) Fiscal year 2017 (Apr thru Mar. 2017) Net sales 472, ,506 Cost of sales 432, ,652 Gross profit 40,042 31,853 Selling, general and administrative expenses 32,785 29,597 Operating income 7,257 2,256 Other income 18,799 10,117 Interest income Dividends income 17,972 9,297 Rent income of fixed assets Dividends from insurance Other Other expenses 1,254 1,289 Interest expenses Interest on bonds (42) 52 Foreign exchange losses Provision of allowance for doubtful accounts Compensation for damage Other Ordinary income 24,802 11,084 Extraordinary gain Gain on sales of fixed assets Gain on sales of investment securities 10 - Gain on sales of subsidiaries and affiliates stocks Extraordinary loss 1,265 9,513 Loss on sales of fixed assets Loss on disposal of fixed assets Loss on valuation of investments securities in affiliate Loss on valuation of investments in capital with subsidiaries and affiliates Loss on liquidation of affiliates Loss for after-care of products - 12 Settlement loss 123 1,096 Loss on bonds redemption - 6,196 Income before income taxes 23,565 1,714 Current Income taxes (including enterprise tax) 2, Adjustment of income taxes 540 (1,845) Total income taxes 3,515 (1,485) Net income 20,050 3, Note: Amounts less than one million yen have been omitted.

13 Corporate Data (as of June 28, 2018) Corporate Data Trade Name : Established : July 16, 1951 Capital : 68,258 million yen Number of Employees : 3,867 (as of March 31, 2018) Registered Head Office : , Oaza Miyota, Miyota-machi, Kitasaku-gun, Nagano , Japan Phone: Headquarters and Plants :Tokyo Head Office, Karuizawa Plant, Matsuida Plant, Hamamatsu Plant, Fujisawa Plant, Yonago Plant Corporate Officers Directors Representative Director, Chairman & President (CEO & COO) Yoshihisa Kainuma Representative Director, Vice Chairman Shigeru Moribe Director, Senior Managing Executive Officers Ryozo Iwaya Tetsuya Tsuruta Shigeru None Shuji Uehara Michiya Kagami Director, Managing Executive Officer Hiroshi Aso Outside Directors Kohshi Murakami Atsuko Matsumura Takashi Matsuoka Audit & Supervisory Board Members Standing Audit & Supervisory Board Member Kazunari Shimizu Standing Outside Audit & Supervisory Board Member Kazuyoshi Tokimaru Outside Audit & Supervisory Board Members Hisayoshi Rikuna Shinichiro Shibasaki Executive Officers Technical Officers* Managing Executive Officers Masayuki Imanaka Tatsuo Matsuda Hiroshi Yoshikawa Joerg Hoffmann Kazunori Sawayama Katsuhiko Yoshida Takuya Sato Satoshi Mizuma Executive Officers Koichiro Kojima Hiroyuki Akatsu Koichiro Komiya Osamu Nakamura Atsushi Shiraishi Shigenori Hoya Satoshi Yoneda Daniel J. Lemieux Shuji Kobayashi Junichi Mochizuki Kazuo Misumi Takaaki Asawa *Shingo Suzuki Katsumasa Yamashina Tadashi Adachi Katsuyuki Iwakuma Kenji Fukunaga Motomu Saito Koichi Seno Hidetoshi Hamai Hiroshi Murayama Hidenori Yamazaki Keiichi Kawai *Katsutoshi Suzuki Masahiro Tsukagoshi * To further strengthen the R&D that is the key to the Company s manufacturing, as of June 29, 2016, the Company introduced a Technical Officer System. 12

14 Share Information (as of March 31, 2018) Overview of shares Total Number of Shares Authorized 1,000,000,000 shares Number of Shares Issued 427,080,606 shares Number of Shareholders 36,124 Major Shareholders (Top 10) Number of Shares Shareholding Ratio (shares) (%) The Master Trust Bank of Japan, Ltd. (Trust Account) 35,013, Japan Trustee Services Bank, Ltd. (Trust Account) 22,732, Takahashi Industrial and Economic Research Foundation 15,447, Sumitomo Mitsui Trust Bank, Limited 15,413, Japan Trustee Services Bank, Ltd. (Trust Account 4) 14,174, Sumitomo Mitsui Banking Corporation 10,223, The Bank of Tokyo-Mitsubishi UFJ, Ltd. 10,181, KEIAISHA Co., Ltd. 10,100, THE CHASE MANHATTAN BANK ,682, Japan Trustee Services Bank, Ltd. (Trust account 5) 7,093, Note: 1. Shareholding ratio is calculated exclusive of treasury stock (5,655,295 shares). 2. On April 1, 2018, The Bank of Tokyo-Mitsubishi UFJ, Ltd. changed its name to MUFG Bank, Ltd. Distribution of Shareholders by Investor Type Individuals, Governments and Others Other Japanese Corporations Overseas Institutions The figure in ( 50 or more units )indicates the shareholding ratio. (1 unit = 100 shares) Japanese Financial Institutions Securities Companies Distribution of Number of Shareholders by Number of Shares Held 1 to 4 units Stock Price on Tokyo Stock Exchange 3, to 49 units 5 to 9 units 2,500 2,000 1,500 1,

15 Information for Shareholders Business Year Ordinary General Meeting of Shareholders Shares per Unit From April 1 to March 31 of next year June every year 100 shares Shareholders Inquiries and Notifications Concerning Matters Such as Change of Address Shareholders whose shares are recorded in the account at a securities company Please contact the securities company. Record Date To Be Eligible to Receive a Dividend Stock Transfer Agent and Account Management Institution for Special Accounts (Mailing Address) (Telephone Inquiries) Ordinary General Meeting of Shareholders March 31 every year Year-end Dividends March 31 every year Interim Dividends September 30 every year Sumitomo Mitsui Trust Bank, Limited 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Business Planning Department 2-8-4, Izumi, Suginami-ku, Tokyo , Japan (Weekdays 9 a.m. to 5 p.m.) Public NoticePublic notice by the Company shall be carried out by way of electronic public notice. ( Provided, however, when the Company is unable to carry out public notice by way of electronic public notice due to an accident or unavoidable reason, it shall be given in the Nihon Keizai Shimbun. Shareholders whose shares are recorded in the special account For each of the shareholders who did not use the Japan Securities Depository Center (JASDEC) prior to share certificate dematerialization, the Company opened a special account at Sumitomo Mitsui Trust Bank, Limited, stock transfer agent. * Shares registered in our special accounts cannot be traded. To sell or buy shares in a special account, shareholders are requested to open an account with a securities company and transfer such shares from our special account to their account. For details of the procedures, please contact the Stock Transfer Agency Business Planning Department of Sumitomo Mitsui Trust Bank, Limited (Weekdays 9 a.m. to 5 p.m.) Common Stock Listings Tokyo and Nagoya Cover photo: Right: The world s smallest fidget spinner Left: The world s longest duration spinning record fidget spinner 14

16 Tokyo Head Office Mita, Minato-ku, Tokyo , Japan Phone: Fax: URL: June 2018