Balance Sheet As of March 31, 2017

Transcription

1 The 17th Financial Year (Unit in thousand yen) Accounts Amount Accounts Amount ASSETS Balance Sheet As of March 31, 2017 LIABILITIES CURRENT ASSETS 18,353,053 CURRENT LIABILITIES 16,402,321 Cash on hand & in banks 50,322 Operating accounts payable 11,345,472 Operating accounts receivable 15,293,603 Operating accounts payable to affiliated companies 2,940,454 Operating accounts receivable from affiliated companies 157,549 Lease obligations of affiliate 163,119 Inventories -tickets and coupons 84,598 Other account payable 427,928 Inventories 48 Accrued expenses 91,156 Prepayment for trading purpose 73,000 Accrued bonuses 495,932 Prepayment 101,594 Accrued income tax 325,564 Prepaid expenses 25,743 Accrued consumption tax 110,003 Deferred tax credit (current) 213,402 Received in advance 416,133 Short-term lending to affiliated companies 2,321,722 Deposit received 53,415 Advances paid 22,070 Unearned revenue 32,789 Other 9,396 Other 350 FIXED ASSETS 5,060,032 LONG-TERM LIABILITIES 1,243,936 Tangible fixed assets 257,628 Lease obligations of affiliate 280,507 Structures 120,025 Guaranty deposits 412,411 Equipment and furniture 136,199 Accrued retirement allowance 504,286 Leased assets 1,403 Accrued retirement allowance for directors 23,940 Long-term other account payable for affiliate 21,738 Intangible fixed assets 645,050 Other 1,052 Software 200,801 Leased assets 443,627 TOTAL LIABILITIES 17,646,258 Telephone subscription rights 622 NET ASSETS SHAREHOLDERS' EQUITY 5,766,827 Investments and other assets 4,157,352 Capital stock 490,000 Long term lending to affiliated companies 3,700,000 Capital surplus 413,028 Long-term deposit 213,404 Other capital surplus 413,028 Long-term prepaid expenses 75,907 Earned surplus 4,863,798 Deferred tax credit (fixed) 168,001 Legal reserve 122,500 Other 40 Retained earnings 4,741,298 General reserve 1,900,000 Retained earnings brought forward 2,841,298 TOTAL NET ASSETS 5,766,827 TOTAL ASSETS 23,413,085 TOTAL LIABILITIES AND NET ASSETS 23,413,085

2 The 17th Financial Year Profit and Loss Statement From April 1, 2016 to March 31, 2017 Accounts (Unit in thousand yen) Amount Sales 9,893,269 Cost of Sales 2,210,541 Gross Profit 7,682,727 Selling, General & Administrative Expenses 6,126,922 Operating Profit 1,555,805 Non-operating Revenue Interest income 14,059 Miscellaneous revenue 8,741 22,801 Non-operating Loss Exchange loss 1,575 Miscellaneous loss 1 1,576 Ordinary Profit 1,577,030 Extraordinary Loss Impairment Loss 39,143 Restructuring loss 16,348 55,492 Net Income before tax 1,521,538 Income tax 505,599 Income tax deferred 26, ,923 Net Income 1,042,614

3 The 17th Financial Year Statement of Changes in Net Assets From April 1, 2016 to March 31, 2017 Shareholders' equity (unit in thousand yen) Capital surplus Earned surplus Capital stock Other capital surplus Total capital surplus Legal reserve Retained earnings General reserve Retained earnings brought forward Total earned surplus Total shareholders' equity Total net assets Opening Balance as of April 1, , ,500 1,900,000 2,240,938 4,263,438 4,753,438 4,753,438 Changes during the period: Dividends from surplus 442, , , ,254 Net income 1,042,614 1,042,614 1,042,614 1,042,614 Changes due to absorption-type company split 413, , , ,028 Total changes of items during the period 413, , , ,360 1,013,388 1,013,388 Final Balance as of Mar 31, , , , ,500 1,900,000 2,841,298 4,863,798 5,766,827 5,766,827

4 List of Individual Notes [Notes on Items Regarding Significant Accounting Policies] 1. Evaluation standard and method for assets (1) Evaluation standard and method for inventories Cost method of first-in, first-out method (value on the balance sheet is calculated so that the book value is marked down in accordance with the decline in profitability) is applied. 2. Depreciation method for fixed assets (1) Tangible fixed assets The declining balance method is applied. (except Leased assets) For buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and facilities attached to buildings and structures on or after April 1, 2016, the straight-line method is applied. (2) Intangible fixed assets The straight-line method is applied. (except Leased assets) For software, the straight-line method is applied based on the expected usable period within the company (five years). (3) Leased assets For finance lease transfers ownership of property to the lessee at the end of the lease term, these transactions are accounted for following depreciation methods used for own fixed assets. 3. Standard for recording allowance reserve (1) Allowance for bad debts In order to prepare for losses from defaults of accounts receivable and other claims, the amount seen as uncollectible from reviewing the individual probability of collection of certain debts, such as debts with the possibility of defaulting, is recorded. (2) Employee retirement benefit reserve In order to prepare for employee retirement benefits, the retirement allowance as of the end of this accounting period is recorded based on the simulation. Actuarial differences are charged to expenses from the fiscal year following their occurrence using the straight-line method over certain years within the average remaining service period of employees when incurred (10 years). (3) Reserve for retirement benefit for directors In order to prepare for payment of retirement benefits for directors, the amount to be paid at the end of the accounting period based on internal rules is recorded. 4. Significant Fundamental Items for Preparing Other Accounting Statements (1) Accounting method for consumption tax, etc. Tax exclusive method is applied.

5 (2) Other Amounts less than one thousand yen are dropped on the balance sheet, profit and loss statement, and statements of changes in shareholders equity. [Note on the change in the accounting policy] In accordance with the amendment to the Corporation Tax Act, the Company has applied the Practical Solution on Change in Depreciation Method due to Tax Reform 2016 (ASBJ Practical Issues Task Force No. 32, June 17, 2016) in the current fiscal year to change the depreciation method for facilities attached to buildings and structures acquired on or after April 1, 2016, from the declining balance method to the straight line method. This has an immaterial effect on operating income, ordinary income, and net income before taxes for the current fiscal year. [Aditional Information ] Application of the Implementation Guidelines on Recoverability of Deferred Tax Assets The Implementation Guideline on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26 issued on March 28, 2016) is applied from the beginning of the current interim accounting period. [Note on the change in presentation] Deferred revenues, which were included in Other of Current liabilities on the balance sheet for the previous fiscal year, are separately presented from the current fiscal year because of the increase in the significance of the amount. For the previous fiscal year, the company recorded deferred revenues of 21,375,000 yen. [Notes on Balance Sheet] 1. Accumulated depreciation of tangible fixed assets 259,644 thousand yen 2. Liabilities for guarantee Liability guarantee for East Japan Railway Co. for companies introducing Business Eki- Net (JR s online ticket vending system for corporations) linked to our business trip expense settlement system B+PLUS Number of guaranteed companies 16 company Liabilities guaranteed 336,000 thousand yen Guarantee of liabilities of user companies of ANA@desk to All Nippon Airways Co., Ltd. Number of guaranteed companies 1 company Liabilities guaranteed 40,000 thousand yen [Notes on Profit and Loss Statement] 1. Transaction amount with affiliated companies Sales 1,011,986 thousand yen Selling and General Administrative Expenses 260,482 thousand yen Amount other than operating transactions 14,091 thousand yen 2. Details of impairment loss The Company recorded the following impairment loss for the current fiscal year:

6 Intended purpose Personal itinerary management application Type Place Impairment losses Long-term Koto-ku, Tokyo 39,143 prepaid thousand yen expenses As a result of the closing of the personal itinerary management application, the Company has reduced the book value of assets with difficulty in collecting their investment into a collectable amount and recorded the relevant reductions as impairment loss in the extraordinary loss category. Collectable amounts of assets, which are based on value in use, are evaluated as zero as value in use in a negative territory on a future cash flow basis. [Notes on Statements of Changes in Shareholders Equity] 1. On the types and total number of outstanding stocks (unit :Stock) Beginning of the Term During the Period Increase During the Period Decrease Term End Abstract Issued Stock Common Stock 9, ,715 Note Total 9, ,715 (Note) An increase of 915 shares in the total number of outstanding common stocks is due to the issuance and distribution of the stocks for the purpose of keeping the shareholding ratio of existing shareholders in relation to the absorption-type split, which was executed in order that the Company might take over certain businesses of JTB Corporate Solutions Co., Ltd. 2. On dividends (1) Dividends paid The resolution the 16 th ordinary shareholders meeting held on June 27, 2016 Total common stock dividends 442,254 thousand yen Dividend Resources Earned surplus Dividend per share 45,128yen Record date and effective date March 31, 2016 and June 28, 2016 (2) Of the dividends with a record date belonging to this fiscal year, those the effective date of which would be in the succeeding fiscal year The resolution (schedule) the 17 th ordinary shareholders meeting held on June 26, 2017 Total common stock dividends 625,573thousand yen Dividend Resources Earned surplus Dividend per share 58,383 yen Record date and effective date March 31, 2017 and June 27, 2017

7 [Notes on Deferred Tax Accounting] Breakdown of major causes of deferred tax assets and deferred tax liabilities The main reasons deferred tax assets arise include disallowed amounts of provision for retirement benefits, accrued bonuses, and accrued social insurance premiums. [Notes on Fixed Assets under Lease] Lease assets recorded in the balance sheet are software. Also, office equipment, including servers and copier machines, are used under non-ownership-transfer finance lease contracts. Accounting practices applicable to ordinary lease transactions are applied to these assets. [Notes on Financial Products] 1. Items regarding the situation of financial products The Company has limited fund management operations to short-term assets, such as deposits, and has procured funds through the cash management system comprehensively managed for the entire JTB group. The Company is making efforts to lower the client credit risk for operating accounts receivable according to the credit exposure management rules. 2. Items regarding the current value of financial products The value as recorded on the balance sheet, the market value, and the difference between the two as of March31, 2017 are as follows. (in 1,000 yen) Amount recorded in balance sheet Market value Difference Cash and deposits 50,322 50,322 - Trade accounts receivable 15,293,603 15,293,603 - Trade accounts receivable from affiliate 157, ,549 - Short-term loans receivable from affiliate 2,321,722 2,321,722 - Long-term loans receivable from affiliate 3,700,000 3,669,859 30,141 Guarantee money paid 213, ,067 41,337 Trade accounts payable (11,345,472) (11,345,472) - Trade accounts payable for affiliate (2,940,454) (2,940,454) - Other account payable (427,928) (427,928) - Accrued income tax (325,564) (325,564) - Accruedconsumption tax (110,003) (110,003) - Lease obligations of affiliate (443,627) (435,039) ( 8,588) Guarantee deposits (412,411) (323,643) ( 88,768) Long-term other account payable for affiliate (21,738) (21,201) ( 537) (Note 1) Items recorded as liabilities are shown in brackets ( ). Cash and deposits, trade accounts receivable, trade accounts receivable from affiliate and short-term loans from affiliate Since these can be settled in a short period time and the market value is nearly equal to book value, the book values have been taken.

8 Long-term loans receivable from affiliate, guarantee money paid and guarantee deposit, lease obligations of affiliate, and Long-term other account payable for affiliate. The discounted present value of future cash flow is calculated. Trade accounts payable, trade accounts payable from affiliate, other account payable and accrued income tax Since this can be settled in a short period time and the market value is nearly equal to book value, the book value has been taken. [Notes on Transactions with Affiliates] 1. Parent company and major corporate shareholders (in 1,000 yen) Attribute Parent company Name of company JTB Corp. Ownership of voting right (%) 70.0% owned directly by parent company Relationship with affiliate Interlocking Directors 4 Part-time officers from parent company Business relations Purchase of travel Financial loans to and from JTB Lease trade Details of transaction Purchase of travel *1 CMS Loan *2 Interest earned *3 Lease fee *4 Transaction amoun *5t 29,082,256 Accounting Item Trade A/R for affiliate Loans to affiliate short&long Out-standing balance as of end of fiscal period *5 2,938,597 6,021,722 14, ,775 Lease for affiliate short&long Long-term other account payable 443,627 21,738 Underwriting of capital increase Underwriting of capital increase *6 413, Fellow subsidiary (in 1,000 yen) Attribute Subsidiary of the parent company Name of company JTB Metropolitan Corp. Ownership of voting right (%) Relationship with affiliate Interlocking Directors Business relations Acquisition of business Details of transaction Acquisition of business *7 Transaction amoun *5t Total assets acquired 400,865 Total liabilities acquired 400,865 Consideration for acquisition Accounting Item Out-standing balance as of end of fiscal period *5 Business conditions and policies for determining business conditions *1 Pricing and other business conditions are set upon negotiation taking actual market price into consideration. *2 Loans and borrowings are for the cash management system which integrates the management of funds for all JTB group companies, through which borrowing and lending between participating companies are conducted daily. Therefore, the amount is not indicated.

9 *3 Interest rates for borrowing and lending are set reasonably taking actual market rates into consideration. *4 Lease expense is determined by negotiation on the grounds of system development cost and related cost of software as lease asset. *5 The transaction amounts do not include consumption taxes. The outstanding balance as of the end of the fiscal period includes consumption taxes. *6 This is underwriting of the third-party allocation of shares by the Company. The issue price is based on the net assets of the Company. *7 The consideration for acquisition of business was determined upon the negotiations based on the value calculated by the Company. [Notes on Per Share Information] 1. Net asset per share 538, yen 2. Net income per share 97, yen [Notes on Transactions under Common Control] The Company adopted the resolution on the organizational restructuring of the group by the absorption-type split and business transfer which the Company and our fellow subsidiaries participate in as a party at the board of director s meeting held on March 11, The organizational restructuring was implemented on April 1, Purposes of the organizational restructuring The purposes of the organizational restructuring are as follows: (1) To shift from the strategy for each company to the strategy promotion scheme for each domain (*) to build the overwhelmingly competitive advantage and specialty. (2)To maximize effect of business promotion for each strategy domain and make investment and an alliance as group and efforts for new areas to build the scheme so that quantitative and qualitative goals can be achieved as provided in the 2020 vision. *Strategy domain: business areas to focus on for achieving the 2020 vision 2. Name and business activities of the companies subject to the organizational restructuring of the group, legal forms, and date of business combination and name of combined company (1) Name and business activities of the companies subject to the organizational restructuring of the group JTB Business Travel Solutions, Inc. (Business travel management business) JTB Corporate Solutions Co.,Ltd.(Business of selling software, etc.) JTB Tokyo Metropolitan Corp.(Business travel management business) (2) Legal forms of business combination Absorption-type split where the Company is the successor company and JTB Corporate Solutions is the splitting company, and business acquisition where the Company is the successor company and business travel department of JTB Tokyo Metropolitan Corp. is the transferor company. (3) Date of business combination : April 1, 2016 (4) Name of combined company : JTB Business Travel Solutions, Inc.

10 3. Overview of the accounting treatment to be implemented It was accounted for as a transaction under common control, based on the Accounting Standards for Business Combinations (ASBJ Statement No. 21 issued on September 13, 2013) and the Guidance on the Accounting Standard for Business Combinations and the Accounting Standard for Business Divestitures (ASBJ Guidance No. 10 issued on September 13, 2013)