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Investor Presentaiton

Expenses While non-personnel expenses and taxes increased, personnel expenses fell due mainly to lower retirement benefit costs; expenses remained largely unchanged year-on-year at 52.7 billion yen (down slightly) The adjusted overhead ratio rose by 1.2 points to 62.9% on a year-on-year basis, due to decreased gross income from core businesses. Trends in expenses and adjusted overhead ratio Breakdown of expenses (Billion yen) (Billion yen) 62.5% 62.9% 61.4% 61.7% Personnel expenses Adjusted overhead ratio +1.2 points Major factors YoY change Retirement benefit expenses -0.4 -0.7 Bonus -0.2 etc. 54.7 53.7 52.7 52.7 28.5 27.8 27.3 26.6 22.1 22.2 22.0 22.5 3.9 3.6 FY2016 FY2017 3.2 FY2018 Personnel -0.7 billion Non-personnel +0.5 billion Taxes +0.3 billion 3.5 FY2019 *Adjusted overhead ratio = Expenses/Gross income from core businesses Non-personnel expenses Major factors Expenses related to smartphone app development, etc. +0.2 Upgrading of business PCs +0.2 Impact of consumption tax increase +0.2 etc. YoY change +0.7 24
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