Funding and Asset Sales for the Rebuilding of the Main Building

「To establish a strong financial foundation for the next 100 years, the Company decided to place its real estate holdings in trust for a specified period and raise funds by using the trust assets.」

「Net cash used in financing activities during the cumulative second-quarter period was ¥375 million, compared with net cash used of ¥159 million in the cumulative second-quarter period of the previous fiscal year. This was mainly due to repayments of long-term borrowings and lease liabilities.」

「Net cash used in financing activities during the fiscal year was ¥2,458 million, compared with net cash provided of ¥10,656 million in the previous fiscal year. This was mainly due to ¥11,800 million in repayments of short-term borrowings, partly offset by ¥9,600 million in proceeds from long-term borrowings, among other factors.」

「Liabilities decreased by ¥2,178 million from the end of the previous fiscal year to ¥16,705 million. The main factors were decreases of ¥7,656 million in short-term borrowings and ¥4,094 million in current portions of long-term borrowings following refinancing, while long-term borrowings increased by ¥9,550 million.」

「Net cash provided by financing activities during the fiscal year was ¥10,656 million, compared with net cash provided of ¥2,918 million in the previous fiscal year. This net inflow was mainly due to the use of borrowings to fund the Main Building reconstruction.」

「Liabilities increased by ¥12,527 million from the previous fiscal year to ¥18,864 million, as interest-bearing debt increased by ¥11,015 million, mainly because borrowings were used to fund the Main Building reconstruction.」

「Liabilities increased by ¥5,820 million from the previous fiscal year to ¥12,157 million, as interest-bearing debt increased by ¥4,502 million, mainly because borrowings were used to fund the Main Building reconstruction.」

「Liabilities increased by ¥1,185 million from the end of the previous fiscal year to ¥7,522 million, as interest-bearing debt increased by ¥1,007 million, mainly because borrowings were used to fund the Main Building reconstruction.」

「Liabilities increased by ¥2,940 million from the end of the previous fiscal year to ¥6,336 million. Of this amount, interest-bearing debt increased by ¥3,008 million to ¥3,388 million, mainly as a result of financing for the Main Building reconstruction.」

「The main factor behind the increase in current liabilities was a ¥1,320 million increase in short-term borrowings, while the main factor behind the increase in non-current liabilities was a ¥1,680 million increase in long-term borrowings, among other factors.」

「As a result of financing activities during the cumulative second-quarter period, funds increased by ¥1,466 million. This was mainly due to proceeds of ¥660 million from short-term borrowings, proceeds of ¥840 million from long-term borrowings and dividend payments of ¥32 million, among other factors.」

「At a meeting of the Board of Directors held on 22 February 2017, the Company resolved to transfer fixed assets as follows, executed the agreement on 28 February 2017 and completed delivery on the same day. Reason for transfer: to allocate part of the proceeds to funding the Main Building reconstruction project. Transfer price (¥ million): 1,502」

「The funds required to construct the new Main Building, including the structural and interior construction described above as well as various furnishings and equipment, are estimated at approximately ¥20 billion. These funds are planned to be covered by internal funds, the sale of part of the land, borrowings and leases.」