May 25, 2017　Revisions (including revision of numerical data): Partial Revision of Summary of Financial Results for the Fiscal Year Ended March 31, 2017 [Consolidated] (Japanese GAAP)

May 25, 2017

Company: Daiwa House Industry Co., Ltd.

(Code number:1925,

First Section of the Tokyo Stock Exchange)

Representative: Contact:

Naotake Ohno, President and COO

Yuji Yamada, Senior Executive Officer and General Manager, IR Department

Email to:dh.ir.communicatoins@daiwahouse.jp

Revisions (including revision of numerical data): Partial Revision of Summary of Financial Results for the Fiscal Year Ended March 31, 2017 [Consolidated] (Japanese GAAP)

Daiwa House Industry Co., Ltd. (the Company) has determined the necessity of making certain revisions (as shown below) to the contents of the Company's Summary of Financial Results for the Fiscal Year Ended March 31, 2017 (Consolidated; Japanese GAAP). The Company has also made certain revisions to the numerical data: these are included in the Revised Summary of Financial Results given below.

Revised portions of the text or numerical data are indicated by underlining.

1. Reasons for the revisions

   At the Tokyo Stock Exchange on May 11, 2017, the Company released its Summary of Financial Results for the Fiscal Year Ended March 31, 2017 (Consolidated; Japanese GAAP). However, during the subsequent accounting audit process, the opinion was expressed that there was a need to revise the indication of the amortization of actuarial differences arising from the employees' retirement benefit accounting portion of the Company's Consolidated Statements of Income for the fiscal year ended March 2017.

   In the past, the Company has indicated amortization of actuarial differences from the employees' retirement benefit under the heading of "non-operating income and expenses," but on the occasion of this recent accounting audit process, we were strongly urged by the accounting auditor to revise this so as to adhere more strictly to generally accepted accounting principles.

   As a result of these revisions, cost of sales has been reduced by 7,003 million yen, and selling, general and administrative expenses have been reduced by 9,515 million yen, while gross profit and operating income have been increased by 7,003 million yen and 16,518 million yen, respectively. These revisions have no impact on the Company's ordinary income or net income.

   Additionally, the Company has also revised downward by 5,000 million yen its forecast for operating income in the Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2018 (released simultaneously with the above-mentioned Summary of Financial Results for the Fiscal Year Ended March 31, 2017), but these revisions are not expected to have any impact on ordinary income or net income.

2. Details of revisions

3. Consolidated Results of Operation for the Fiscal Year Ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
4. Consolidated Business Results

5. (Before revision) (% figures represent year-on-year change)

   Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent
   Fiscal year ended March 31, 2017	Millions of yen	%	Millions of yen 293,573 243,100	%	Millions of yen 300,529 233,592	%	Millions of yen 201,700 103,577	%
   	3,512,909	10.0		20.8		28.7		94.7
   Fiscal year ended March 31, 2016	3,192,900	13.6		34.8		15.3		(11.6)

   Note: Comprehensive income

   Fiscal year ended March 31, 2017: 199,257 million yen (103.5%); Fiscal year ended March 31, 2016: 97,936 million yen (-41.0%)

   Basic net income per share	Diluted net income per share	Return on equity (ROE)	Ordinary income to total assets ratio	Operating income to net sales ratio
   Fiscal year ended March 31, 2017	Yen	Yen	%	%	%
   	304.14	304.05	16.3	8.8	8.4
   Fiscal year ended March 31, 2016	156.40	155.83	9.1	7.4	7.6

   (Reference) Equity in earnings of affiliates

   Fiscal year ended March 31, 2017: -1,274 million yen; Fiscal year ended March 31, 2016: -574 million yen

   (After revision) (% figures represent year-on-year change)

   Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent
   Fiscal year ended March 31, 2017	Millions of yen	%	Millions of yen 310,092 243,100	%	Millions of yen 300,529 233,592	%	Millions of yen 201,700 103,577	%
   	3,512,909	10.0		27.6		28.7		94.7
   Fiscal year ended March 31, 2016	3,192,900	13.6		34.8		15.3		(11.6)

   Note: Comprehensive income

   Fiscal year ended March 31, 2017: 199,257 million yen (103.5%); Fiscal year ended March 31, 2016: 97,936 million yen (-41.0%)

   Basic net income per share	Diluted net income per share	Return on equity (ROE)	Ordinary income to total assets ratio	Operating income to net sales ratio
   Fiscal year ended March 31, 2017	Yen	Yen	%	%	%
   	304.14	304.05	16.3	8.8	8.8
   Fiscal year ended March 31, 2016	156.40	155.83	9.1	7.4	7.6

   (Reference) Equity in earnings of affiliates

   Fiscal year ended March 31, 2017: -1,274 million yen; Fiscal year ended March 31, 2016: -574 million yen
6. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2018 (From April 1, 2017 to March 31, 2018)

   (Before revision) (% figures represent year-on-year change)

   Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent		Basic net income per share
   Fiscal year ending March 31, 2018	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	3,750,000	6.7	320,000	9.0	312,000	3.8	210,000	4.1	316.48

   (After revision) (% figures represent year-on-year change)

   Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent		Basic net income per share
   Fiscal year ending March 31, 2018	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	3,750,000	6.7	315,000	1.6	312,000	3.8	210,000	4.1	316.48

   (Reference) Summary of Non-Consolidated Results of Operation Non-Consolidated Results of Operation for the Fiscal Year Ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
7. Non-Consolidated Business Results

   (Before revision) (% figures represent year-on-year change)

   Net sales		Operating income		Ordinary income		Net income
   Fiscal year ended March 31, 2017	Millions of yen	%	Millions of yen	%	Millions of yen 212,346 183,863	%	Millions of yen	%
   	1,720,394	4.3	186,850	11.5		15.5	147,582	80.0
   Fiscal year ended March 31, 2016	1,649,765	12.2	167,638	41.3		22.0	81,991	(15.4)

   (After revision) (% figures represent year-on-year change)

   Net sales		Operating income		Ordinary income		Net income
   Fiscal year ended March 31, 2017	Millions of yen	%	Millions of yen	%	Millions of yen 212,346 183,863	%	Millions of yen	%
   	1,720,394	4.3	198,673	18.5		15.5	147,582	80.0
   Fiscal year ended March 31, 2016	1,649,765	12.2	167,638	41.3		22.0	81,991	(15.4)

   The Attached Material on page 5 Key Performance Indicators
8. Performance Indicators

9. (Before revision)

   Fiscal years	Fiscal year ended March 31, 2014	Fiscal year ended March 31, 2015	Fiscal year ended March 31, 2016	Fiscal year ended March 31, 2017	Forecast for the fiscal year ending March 31, 2018
   Net sales (millions of yen)	2,700,318	2,810,714	3,192,900	3,512,909	3,750,000
   Cost of sales (millions of yen)	2,192,414	2,269,846	2,560,483	2,798,599	2,983,000
   Selling, general and administrative expenses (millions of yen)	344,326	360,516	389,316	420,735	447,000
   Operating income (millions of yen)	163,576	180,352	243,100	293,573	320,000
   Ordinary income (millions of yen)	176,366	202,628	233,592	300,529	312,000
   Net income attributable to owners of the parent (millions of yen)	102,095	117,133	103,577	201,700	210,000
   (Abbreviated)

   (After revision)

   Fiscal years	Fiscal year ended March 31, 2014	Fiscal year ended March 31, 2015	Fiscal year ended March 31, 2016	Fiscal year ended March 31, 2017	Forecast for the fiscal year ending March 31, 2018
   Net sales (millions of yen)	2,700,318	2,810,714	3,192,900	3,512,909	3,750,000
   Cost of sales (millions of yen)	2,192,414	2,269,846	2,560,483	2,791,596	2,985,000
   Selling, general and administrative expenses (millions of yen)	344,326	360,516	389,316	411,220	450,000
   Operating income (millions of yen)	163,576	180,352	243,100	310,092	315,000
   Ordinary income (millions of yen)	176,366	202,628	233,592	300,529	312,000
   Net income attributable to owners of the parent (millions of yen)	102,095	117,133	103,577	201,700	210,000
   (Abbreviated)

   The Attached Material on page 6 Key Performance Indicators
10. Performance Indicators

    (Before revision)

11. Sales and Operating Income by Segment
Fiscal year Fiscal year Fiscal year Fiscal year

(Millions of yen)

Forecast for the fiscal

(Abbreviated)

Fiscal years ended March 31, 2014 ended March 31, 2015 ended March 31, 2016 ended March 31, 2017 year ending March 31, 2018

Operating income 163,576 180,352 243,100 293,573 320,000

Single-Family Houses 13,389 8,841 16,515 19,290 20,000

Operating income by segment

Rental Housing 64,279 69,597 81,903 94,299 105,000

Condominiums 10,705 10,819 15,796 13,431 12,000

Existing Home Business 9,311 9,976 11,297 13,081 13,100

Commercial Facilities 60,764 67,279 80,332 100,742 105,000

Logistics, Business & Corporate

Facilities 26,934 38,444 68,003 78,967 83,000

Other Businesses	14,082	10,288	9,573	16,861	27,000
Adjustments	(35,891)	(34,894)	(40,322)	(43,100)	(45,100)

(After revision)

2. Sales and Operating Income by Segment Fiscal year Fiscal year Fiscal year Fiscal year

(Millions of yen)

Forecast for the fiscal Fiscal years ended March 31, 2014 ended March 31, 2015 ended March 31, 2016 ended March 31, 2017 year ending March 31, 2018

Operating income by segment

(Abbreviated)
Operating income	163,576	180,352	243,100	310,092	315,000
Single-Family Houses	13,389	8,841	16,515	19,290	20,000
Rental Housing	64,279	69,597	81,903	94,299	105,000
Condominiums	10,705	10,819	15,796	13,431	12,000
Existing Home Business	9,311	9,976	11,297	13,081	13,100
Commercial Facilities	60,764	67,279	80,332	100,742	105,000
Logistics, Business & Corporate

Facilities 26,934 38,444 68,003 78,967 83,000

Other Businesses	14,082	10,288	9,573	16,861	27,000
Adjustments	(35,891)	(34,894)	(40,322)	(26,582)	(50,100)

The Attached Material on page 7
1. Overview of business results and others

   (Before revision)

   (1) Business results for the fiscal year under review

   During the fiscal year ended March 2017, the Japanese economy as a whole continued to stage a gradual recovery, thanks to an ongoing improvement in employment and income, among other positive factors. These more than offset such negative factors as a slowdown in the pace of improvement of corporate earnings and the fact that capital investment had come to a standstill.

   Looking at the industrial sectors in which the Company operates, the housing market as a whole held firm in spite of a slight weakness in new housing construction starts for condominiums, as year-on-year growth was recorded by the Owned, Rented and Built for Sale housing categories. The general construction market also performed strongly as a whole. Solid growth was seen in private works orders, driven by aggressive capital investment, principally by companies in the real estate development, wholesaling, and retailing industries. Public works orders for the term as a whole also staged a turnaround into the plus column.

   Amid these circumstances, and in accordance with the Daiwa House Group's Fifth Medium-Term Management Plan (a three-year plan ending in fiscal 2018), we endeavored to expand our core businesses by taking full advantage of firm demand in the domestic market, and engaged in aggressive investments in real estate development and other fields.

   As a result of the foregoing, the Daiwa House Group recorded net sales of 3,512,909 million yen (+10.0% year on year) for the fiscal year under review. Operating income came to 293,573 million yen (+20.8% year on year), ordinary income came to 300,529 million yen (+28.7% year on year), and net income attributable to owners of the parent amounted to 201,700 million yen (+94.7% year on year).

   (Abbreviated)

   (4) Future Outlook

   Looking at the future outlook for the Japanese economy, a gradual recovery is expected thanks to the impact of various government stimulus measures, against the backdrop of an ongoing improvement in both employment and incomes. At the same time, it is feared that the uncertainty surrounding upcoming political developments, financial market developments, and trade policies in the United States and Europe may negatively impact the Japanese domestic economy, and the situation will not warrant optimism for some time to come.

   Turning to the Company's field of operations, a sharp slowdown in the housing market has been avoided in the short term, thanks to the fact that the proposed increase in the consumption tax has once again been postponed. However, a decrease in the number of new housing construction starts in Japan is forecast over the medium-to- long term, due to the declining trend of the country's population. In the general construction market, increased demand is anticipated in the run-up to the 2020 Tokyo Summer Olympics and Paralympics, but movements in construction material prices will continue to bear watching.

   Amid this business environment, the Daiwa House Group has revised upward its business forecasts under the currently ongoing Fifth Medium-Term Management Plan-a three-year plan ending in fiscal 2018-and has set new targets for the plan that take into account probable future changes in the business environment and make optimal use of the Group's diverse lineup of revenue streams.

   In February 2017, Stanley-Martin Communities, LLC (a US company engaged in the single-family homes business) became a subsidiary of Daiwa House USA Inc. Going forward, we aim to further develop the sphere of business operations engaged in by Stanley-Martin Communities, LLC in the United States, and to accelerate the pace of expansion of US business operations by the Daiwa House Group as a whole.

   In view of the foregoing, we forecast net sales for the fiscal year ending March 31, 2018 in the amount of 3,750 billion yen, with operating income of 320 billion yen, ordinary income of 312 billion yen, and net income attributable to owners of the parent of 210 billion yen. And we expect capital investments of 295 billion yen and depreciation of 65.3 billion yen.

   (After revision)

   (1) Business results for the fiscal year under review

   During the fiscal year ended March 2017, the Japanese economy as a whole continued to stage a gradual recovery, thanks to an ongoing improvement in employment and income, among other positive factors. These more than offset such negative factors as a slowdown in the pace of improvement of corporate earnings and the fact that capital investment had come to a standstill.

   Looking at the industrial sectors in which the Company operates, the housing market as a whole held firm in spite of a slight weakness in new housing construction starts for condominiums, as year-on-year growth was recorded by the Owned, Rented and Built for Sale housing categories. The general construction market also performed strongly as a whole. Solid growth was seen in private works orders, driven by aggressive capital investment, principally by companies in the real estate development, wholesaling, and retailing industries. Public works orders for the term as a whole also staged a turnaround into the plus column.

   Amid these circumstances, and in accordance with the Daiwa House Group's Fifth Medium-Term Management Plan (a three-year plan ending in fiscal 2018), we endeavored to expand our core businesses by taking full advantage of firm demand in the domestic market, and engaged in aggressive investments in real estate development and other fields.

   As a result of the foregoing, the Daiwa House Group recorded net sales of 3,512,909 million yen (+10.0% year on year) for the fiscal year under review. Operating income came to 310,092 million yen (+27.6% year on year), ordinary income came to 300,529 million yen (+28.7% year on year), and net income attributable to owners of the parent amounted to 201,700 million yen (+94.7% year on year).

   (Abbreviated)

   (4) Future Outlook

   Looking at the future outlook for the Japanese economy, a gradual recovery is expected thanks to the impact of various government stimulus measures, against the backdrop of an ongoing improvement in both employment and incomes. At the same time, it is feared that the uncertainty surrounding upcoming political developments, financial market developments, and trade policies in the United States and Europe may negatively impact the Japanese domestic economy, and the situation will not warrant optimism for some time to come.

   Turning to the Company's field of operations, a sharp slowdown in the housing market has been avoided in the short term, thanks to the fact that the proposed increase in the consumption tax has once again been postponed. However, a decrease in the number of new housing construction starts in Japan is forecast over the medium-to- long term, due to the declining trend of the country's population. In the general construction market, increased demand is anticipated in the run-up to the 2020 Tokyo Summer Olympics and Paralympics, but movements in construction material prices will continue to bear watching.

   Amid this business environment, the Daiwa House Group has revised upward its business forecasts under the currently ongoing Fifth Medium-Term Management Plan-a three-year plan ending in fiscal 2018-and has set new targets for the plan that take into account probable future changes in the business environment and make optimal use of the Group's diverse lineup of revenue streams.

   In February 2017, Stanley-Martin Communities, LLC (a US company engaged in the single-family homes business) became a subsidiary of Daiwa House USA Inc. Going forward, we aim to further develop the sphere of business operations engaged in by Stanley-Martin Communities, LLC in the United States, and to accelerate the pace of expansion of US business operations by the Daiwa House Group as a whole.

   In view of the foregoing, we forecast net sales for the fiscal year ending March 31, 2018 in the amount of 3,750 billion yen, with operating income of 315 billion yen, ordinary income of 312 billion yen, and net income attributable to owners of the parent of 210 billion yen. And we expect capital investments of 295 billion yen and depreciation of 65.3 billion yen.

   The Attached Material on page 17
2. Consolidated Financial Statements and Main Notes (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income)

   (Before revision)	(Millions of yen)
   Previous fiscal year (From April 1, 2015 to March 31, 2016)	Reporting fiscal year (From April 1, 2016 to March 31, 2017)
   Net sales	3,192,900	3,512,909
   Cost of sales	2,560,483	2,798,599
   Gross profit	632,417	714,309
   Selling, general and administrative expenses
   Sales commission	18,093	19,077
   Advertising expenses	33,514	34,682
   Promotion expenses	5,828	6,230
   Provision of allowance for doubtful accounts	1,281	845
   Directors' compensations	3,776	3,841
   Employees' salaries and allowances	141,477	148,934
   Provision for bonuses	28,213	29,775
   Retirement benefit expenses	19,410	20,974
   Legal welfare expenses	22,010	22,801
   Stationery expenses	12,930	14,196
   Correspondence and transportation expenses	19,046	18,890
   Rents	15,023	16,466
   Depreciation	7,761	8,163
   Tax and dues	19,998	25,177
   Other	40,948	50,679
   Total selling, general and administrative expenses	389,316	420,735
   Operating income	243,100	293,573
   Non-operating income
   Interest income	3,546	3,088
   Dividends income	3,469	3,807
   Amortization of actuarial gain for employee's retirement benefits	－	16,518
   Miscellaneous income	6,636	6,357
   Total non-operating income	13,651	29,771
   Non-operating expenses
   Interest expenses	5,048	5,143
   Tax and dues	1,671	1,744
   Provision of allowance for doubtful accounts	959	5,045
   Amortization of actuarial loss for employee's retirement benefits	9,182	－
   Equity in losses of affiliates	574	1,274
   Miscellaneous expenses	5,723	9,608
   Total non-operating expenses	23,160	22,815
   Ordinary income	233,592	300,529
   (Abbreviated)

   (After revision)	(Millions of yen)
   Previous fiscal year (From April 1, 2015 to March 31, 2016)	Reporting fiscal year (From April 1, 2016 to March 31, 2017)
   Net sales	3,192,900	3,512,909
   Cost of sales	2,560,483	2,791,596
   Gross profit	632,417	721,312
   Selling, general and administrative expenses
   Sales commission	18,093	19,077
   Advertising expenses	33,514	34,682
   Promotion expenses	5,828	6,230
   Provision of allowance for doubtful accounts	1,281	845
   Directors' compensations	3,776	3,841
   Employees' salaries and allowances	141,477	148,934
   Provision for bonuses	28,213	29,775
   Retirement benefit expenses	19,410	11,459
   Legal welfare expenses	22,010	22,801
   Stationery expenses	12,930	14,196
   Correspondence and transportation expenses	19,046	18,890
   Rents	15,023	16,466
   Depreciation	7,761	8,163
   Tax and dues	19,998	25,177
   Other	40,948	50,679
   Total selling, general and administrative expenses	389,316	411,220
   Operating income	243,100	310,092
   Non-operating income
   Interest income	3,546	3,088
   Dividends income	3,469	3,807
   Miscellaneous income	6,636	6,357
   Total non-operating income	13,651	13,253
   Non-operating expenses
   Interest expenses	5,048	5,143
   Tax and dues	1,671	1,744
   Provision of allowance for doubtful accounts	959	5,045
   Amortization of actuarial loss for employee's retirement benefits	9,182	－
   Equity in losses of affiliates	574	1,274
   Miscellaneous expenses	5,723	9,608
   Total non-operating expenses	23,160	22,815
   Ordinary income	233,592	300,529
   (Abbreviated)

   The Attached Material on page 26
3. Sales and operating income, assets and others by reportable business segment Reporting fiscal year (From April 1, 2016 to March 31, 2017)

   (Before revision)

   (Millions of yen)

   Reportable Business Segments
   Single-Family Houses	Rental Housing	Condominiums	Existing Home Business	Commercial Facilities	Logistics, Business & Corporate Facilities	Total
   Sales	387,660	975,733	262,211	102,568	561,799	818,226	3,108,200
   (1) Sales to customers
   (2)Inter-segment sales or transfers	2,672	1,482	656	3,023	7,976	10,251	26,063
   Total	390,332	977,215	262,867	105,592	569,776	828,478	3,134,264
   Operating income	19,290	94,299	13,431	13,081	100,742	78,967	319,813
   Assets	197,320	294,285	317,685	16,050	590,433	1,125,517	2,541,292
   Others	3,860	8,636	2,112	135	17,469	9,348	41,562
   Depreciation
   Net increase in
   property, plant
   and equipment,	8,509	37,554	6,184	146	61,701	164,137	278,233
   and intangible
   assets

   Other Businesses (Note: 1)	Subtotal	Adjustment (Note: 2)	Amounts on the consolidated financial statements
   Sales	404,708	3,512,909	―	3,512,909
   (1) Sales to customers
   (2)Inter-segment sales or transfers	108,873	134,937	(134,937)	―
   Total	513,581	3,647,846	(134,937)	3,512,909
   Operating income	16,861	336,674	(43,100)	293,573
   Assets	719,063	3,260,356	295,528	3,555,885
   Others	16,985	58,548	1,049	59,597
   Depreciation
   Net increase in
   property, plant
   and equipment,	62,985	341,219	437	341,656
   and intangible
   assets

   Notes: 1. Other Businesses include construction support, resort hotels and sports life business, city hotels, overseas businesses and others.

4. Adjustment:

5. -43,100 million yen in adjustments to operating income by business segment includes -574 million yen in elimination within business segments, 716 million yen in amortization of goodwill, and -43,241 million yen in corporate expenses not allocated to each business segment. Corporate expenses mainly consist of general and administrative expenses and experiment and research expenses not attributable to reportable business segments.

6. 295,528 million yen in adjustments to assets by business segment includes -69,714 million yen in elimination within business segments, and 365,243 million yen in the Group assets. Group assets mainly consist of the Company's surplus funds (cash and deposits), the Company's long-term investment funds (investment securities), and the assets associated with Administration Headquarters of the Company.

7. 1,049 million yen in adjustments to depreciation by business segment includes -470 million yen in elimination within business segments, and 1,519 million yen in the depreciation attributable to Group assets.

8. 437 million yen in adjustments to net increase in property, plant and equipment, and intangible assets by business segment includes -792 million yen in elimination within business segments, and 1,229 million yen in Headquarters' capital investment of the Company, such as properties and equipment.

9. Operating income by business segment is adjusted to correspond to operating income in the consolidated statements of income.

10. (After revision)

    (Millions of yen)

    Reportable Business Segments
    Single-Family Houses	Rental Housing	Condominiums	Existing Home Business	Commercial Facilities	Logistics, Business & Corporate Facilities	Total
    Sales	387,660	975,733	262,211	102,568	561,799	818,226	3,108,200
    (1) Sales to customers
    (2)Inter-segment sales or transfers	2,672	1,482	656	3,023	7,976	10,251	26,063
    Total	390,332	977,215	262,867	105,592	569,776	828,478	3,134,264
    Operating income	19,290	94,299	13,431	13,081	100,742	78,967	319,813
    Assets	197,320	294,285	317,685	16,050	590,433	1,125,517	2,541,292
    Others	3,860	8,636	2,112	135	17,469	9,348	41,562
    Depreciation
    Net increase in
    property, plant
    and equipment,	8,509	37,554	6,184	146	61,701	164,137	278,233
    and intangible
    assets

    Other Businesses (Note: 1)	Subtotal	Adjustment (Note: 2)	Amounts on the consolidated financial statements
    Sales	404,708	3,512,909	―	3,512,909
    (1) Sales to customers
    (2)Inter-segment sales or transfers	108,873	134,937	(134,937)	―
    Total	513,581	3,647,846	(134,937)	3,512,909
    Operating income	16,861	336,674	(26,582)	310,092
    Assets	719,063	3,260,356	295,528	3,555,885
    Others	16,985	58,548	1,049	59,597
    Depreciation
    Net increase in
    property, plant
    and equipment,	62,985	341,219	437	341,656
    and intangible
    assets

    Notes: 1. Other Businesses include construction support, resort hotels and sports life business, city hotels, overseas businesses and others.

11. Adjustment:

12. -26,582 million yen in adjustments to operating income by business segment includes -574 million yen in elimination within business segments, 716 million yen in amortization of goodwill, and -26,723 million yen in corporate expenses not allocated to each business segment. Corporate expenses mainly consist of general and administrative expenses and experiment and research expenses not attributable to reportable business segments.

13. 295,528 million yen in adjustments to assets by business segment includes -69,714 million yen in elimination within business segments, and 365,243 million yen in the Group assets. Group assets mainly consist of the Company's surplus funds (cash and deposits), the Company's long-term investment funds (investment securities), and the assets associated with Administration Headquarters of the Company.

14. 1,049 million yen in adjustments to depreciation by business segment includes -470 million yen in elimination within business segments, and 1,519 million yen in the depreciation attributable to Group assets.

15. 437 million yen in adjustments to net increase in property, plant and equipment, and intangible assets by business segment includes -792 million yen in elimination within business segments, and 1,229 million yen in Headquarters' capital investment of the Company, such as properties and equipment.

16. Operating income by business segment is adjusted to correspond to operating income in the consolidated statements of income.

17. End

    Disclaimer:

    This English translation has been prepared for general reference purposes only. The Company shall not be responsible for any consequence resulting from the use of the English translation in place of the original Japanese text. In any legal matter, readers should refer to and rely upon the original Japanese text released on May 25, 2017.