Organizational restructuring through the absorption-type merger of a wholly owned subsidiary

「On 1 October 2016, the Company absorbed and merged its wholly owned subsidiary Yokohama Kanazawa Properties Co., Ltd. As this was a merger with a wholly owned subsidiary, it had no effect on the Company's consolidated operating revenue, operating income or ordinary income. In connection with the merger, the Company expects a reduction in income taxes and other taxes through the succession of tax loss carryforwards and other deductible temporary differences totaling approximately ¥24.4 billion, for which the subsidiary had not recognized deferred tax assets.」