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Performance Reporting

Relationship with Shareholders and Investors

 Our own mission is to maintain sustainable growth to increase corporate value and contribute to society.

 Moreover, it is essential to gain the understanding of our shareholders and develop mutual trust.

 We are endeavoring to make active communications by disclosing information in a timely and appropriate manner.

Timely and Appropriate Disclosure of Business and Financial Information

 Yamada Denki has disclosed IR information, such as earnings data and press releases, as well as information on the development of new products or the commencement of new initiatives, on our website to shareholders and investors, thereby endeavoring to deepen their understanding of Yamada Denki.

 As the foreign ownership has been rather high, we have a number of opportunities to explain our business performance and management policy from the global perspective. We explain our business strategies and CSR activities at meetings with investors and analysts held around 200 times annually in Japan and overseas.

 We specifi cally hold an annual briefi ng session for investors. The session has been held for 14 consecutive years in a different major city of Japan. To deepen investors' understanding, our top management officer explains our management philosophy and management policy, as well as the current status of business performance and future business plans.

Basic Policy for Distribution of Profits

 Regarding the appropriation of profi ts, our primary policy is to pay dividends to shareholders in a stable and consistent manner.

 We consider it essential to build up internal reserves in order to achieve stable growth through enhancing future corporate value and strengthening the management base and also to increase and maintain market share in the industry, while improving the efficiency of capital with the aim of achieving sustainable growth into the future. We set the goal of a consolidated payout ratio of at least 30% and decide the amount of dividends in consideration of fi nancial conditions and business performance of the relevant term.

 We will utilize the internal reserves in an effective manner for its sustainable growth, for strengthening various solution businesses to broaden and deepen its business range, with the aim of responding to the rapidly changing environment of the distribution market, including the declining birth rate and the aging of society, population decrease, and development of the Internet society, and for improving the efficiency of existing stores and their network, enhancing and maintaining competitiveness, securing working staff, and strengthening fi nancial structure, as well as for distributing profi ts to various stakeholders.

 We will endeavor to secure dividends continuously based on stable growth in profi ts.

Economic Relationships with Major Stakeholders

 The value of economic relationships with major stakeholders was calculated as described below. For details, please refer to earnings reports and fi nancial statements.

※当社は2013年10月1日付で株式1株につき10株の株式分割を実施。2012年3月期、2013年3月期は株式分割を勘案した金額。

The Shareholder Special Benefit Plan

 We have established a shareholder special benefit plan in appreciation for the support of existing shareholders and with the aim of enhancing the advantage of investing in our shares and increasing long-term shareholders. The plan offers benefits in two ways, i.e., depending on the number of shares held and on the length of period of holding shares. Complimentary tickets are provided twice a year to shareholders as of the end of March and the end of September.

Prospects

Japanese Economy

 The future course of the global economy remains unpredictable in fi scal 2017, due to concerns over the possible impact of Brexit on the UK and European economy, the US policy trends under the new administration, and economic trends in China and other emerging countries.

 However, in Japan, the economy is expected to remain solid, backed by steadiness in personal consumption and improvements of corporate performance.

Home Appliance Distribution Market

 The home appliance distribution market, to which the company belongs, is expected to maintain the sales level of the previous year thanks to steady replacement purchases of white goods and TVs although the structural demand decrease may continue for PCs and other digital products.

Yamada Denki's Efforts

 Under such market environment, we will continue efforts for cultivating new business fi elds and promoting structural reform as the largest specialist electrical goods merchandiser in Japan. Making the most of the group's business resources as a whole, we will make a determined effort to achieve better gross profi t rates and reduction of selling, general and administrative expenses, thereby further enhancing profi tability and corporate value.