RIKEN CORPORATION

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Kaoru Itoh, President & CEO & COO

At the outset, I would like to express my heartfelt gratitude for your continued support and understanding of our company.

Our company completed the closing of its financial accounts for the fiscal year 2017 ending March 31, 2018.

During the fiscal year 2017, the US economy grew steadily, European economy maintained stable growth and the Asian economy, such as China, Indonesia and Thailand, continued to grow at a steady pace. Japanese economy recovered moderately indicated by the increase in consumer spending and recovery of corporate performance.

With regards to the automotive industry, which is our primary market, the global car production increased year on year. This is mainly due to the growth in emerging countries, such as China and India, although production in the US has declined. Domestic car production increased by 3.4% year on year, since the production of mini vehicle "Kei" has increased.

Under such a business environment, our consolidated sales were 87,583 million yen, increased by 15.4% year on year, due to overseas sales expansion. The consolidated operating profit was 7,441 million yen, increased by 26.1% year on year, due to sales increase. Ordinary profit was 8,379 million yen, increased by 40.1% year on year mainly due to investment profit on equity method increase. Although there was impairment loss, net profit increased to 4,386 million yen, an 11.6% increase year on year.

As for the year-end dividend, taking into account our company's performance and payout ratio and also including the 90th anniversary commemorative dividend of 15 yen, we will pay 75 yen per share, from June 25, 2018.

We look forward to the continued, long term support and understanding of our shareholders and other investors.

Sincerely,

June 2018
Kaoru Itoh, President & CEO & COO