DAIKYO : Information Pertaining to Controlling Shareholder

Information Pertaining to Controlling Shareholder

To whom it may concern:

June 23, 2016

Company name: DAIKYO INCORPORATED Representative: Akira Yamaguchi,

Representative Executive Officer, President Securities code: 8840

Listing: First Section, Tokyo Stock Exchange Contact: Koichi Hinago, General Manager, Group

Corporate Planning Dept.

Information Pertaining to Controlling Shareholder

DAIKYO INCORPORATED (the "Company") hereby announces information pertaining to its controlling shareholder categorized as "Parent Company," as follows:

1. Trade Name, of the Parent Company, Controlling Shareholder (excluding Parent Company) or Other Affiliated Company (the "Controlling Shareholder")

   (As of March 31, 2016)

   Name	Relationship classification	Ratio of the voting rights held by the Controlling Shareholder (%)			Financial instruments exchange on which shares issued by the Controlling Shareholder are listed
   		Direct holdings	Indirect holdings	Total
   ORIX Corporation	Parent Company	64.11	0.02	64.13	Tokyo Stock Exchange

   • First Section,

   • New York Stock Exchange

2. Position of the Company within the Corporate Group of the Controlling Shareholder and Relationship between Other Listed Companies and the Controlling Shareholder

   ORIX Corporation became the Company's parent company on February 28, 2014.

   ORIX Corporation is the largest shareholder of the Company, with 64.13% of the total voting rights of the Company (inclusive of 0.02% of indirect holdings) as of the end of March 31, 2015. ORIX Corporation also holds 10,000,000 shares of preferred stock issued by the Company.

   The Company conducts business with ORIX Group including joint ventures and contract sales related to condominium sales. With regard to personal relationships, two (2) of the officers of group companies of the Company are on temporary assignment from ORIX Corporation (two officers at subsidiaries). The Company operates its business independently with the goal of maximizing corporate value. Given that these personal relationships do not impede independent business decisions, the Company believes that a certain degree of independence has been ensured.

   Officers temporarily seconded from the Controlling Shareholder

   (As of June 23, 2016)

   Position	Number	Company from which the officers were temporarily seconded	Reason for temporary secondment
   Director at a subsidiary of the Company	2	ORIX Corporation	To strengthen supervision over management

3. Matters Relating to Transactions with Controlling Shareholder (April 1, 2010-March 31, 2011) There are no applicable matters.

4. Status of the Measures Implemented to Protect Minority Interests during Transactions with the Controlling Shareholder

The Company conducts its operations in an independent manner with the aim of maximizing its corporate value, and the personnel exchange between the parties do not interfere with its independent decisions on management. Accordingly, the Company deems that its independence is assured to an appropriate extent.

Disclaimer

This document was prepared in English for conveniences purpose only. The original Japanese document shall take precedence in the event of any discrepancies arising from the translations or interpretations contained in this document.