HAKUHODO DY INCORPORATED : Notice Concerning Return of Retirement Benefit Trust Assets in Line with Transition to Defined Benefit Corporate Pension Scheme

September 25, 2018

To whom it may concern:

Company name: Hakuhodo DY Holdings Inc.

Representative director: Hirokazu Toda, President & CEO

(First Section of the Tokyo Stock Exchange Code number:

2433)

Inquiries: Satoru Yagi, Executive Manager, Investor Relations

Division

Tel: [phone]

Notice Concerning Return of Retirement Benefit Trust Assets in Line with Transition to

Defined Benefit Corporate Pension Scheme

(Determination of gain on return of assets from retirement benefit trust)

As previously announced on August 23, 2018, Hakuhodo DY Holdings consolidated subsidiaries Hakuhodo Inc. and Hakuhodo DY Media Partners Inc. have determined to dissolve the retirement benefit trust related to their corporate pension scheme.

Although the date of the return had yet to be determined at the time of the announcement, it was carried out on September 21, 2018, and the extraordinary income on gain on the return of assets from the retirement benefit trust has been determined as follows.

• 1. Date of return: September 21, 2018

• 2. Return value: 45.8 billion yen

3. Gain on return of assets from retirement benefit trust: 16.2 billion yen

4.

Impact on business results

It is anticipated that the return will result in an increase of approximately 5.5 billion yen on the currently announced forecast consolidated extraordinary income for the first half of FY 2018. Consolidated forecasts are scheduled to be revised, and we will disclose the new forecasts without delay if disclosure is deemed to be required.

Reference

August 23, 2018

To whom it may concern:

Company name: Hakuhodo DY Holdings Inc.

Representative director: Hirokazu Toda, President & CEO

(First Section of the Tokyo Stock Exchange Code number:

2433)

Inquiries: Satoru Yagi, Executive Manager, Investor Relations

Division

Tel: [phone]

Notice Concerning Return of Assets from Retirement Benefit Trust in Line with

Transition to Defined Benefit Corporate Pension Scheme

Hakuhodo DY Holdings consolidated subsidiaries Hakuhodo Inc. (Hakuhodo) and Hakuhodo DY Media Partners Inc. (Hakuhodo DYMP) determined at meetings of the board of both companies held on August 23, 2018 to dissolve the retirement benefit trust related to their corporate pension scheme as follows.

As a result of the transition from a corporate pension scheme to a defined benefit corporate benefit pension scheme on April 1, 2018, consolidated subsidiaries Hakuhodo and Hakuhodo DYMP's pension assets far exceeded their retirement benefit obligations. Having confirmed that returning retirement benefit trust assets to the mother companies (Hakuhodo and Hakuhodo DYMP) would have no impact on recipients' future benefits, Hakuhodo and Hakuhodo DYMP determined at meetings of their boards of directors to abolish the trust and return the assets to Hakuhodo and Hakuhodo DYMP.

1. Date of return A specific return date is yet to be determined at this time

• 2. Forecast return value

  Approximately 44.3 billion yen (as of July 31, 2018)

• 3. Impact on business results

  As the retirement benefit trust contains listed stocks, the return value will vary depending on when the return is carried out. A trial calculation based on return on September 30, 2018 at the current price as of July 31, 2018 resulted in forecast extraordinary income from gain on the return of assets from the retirement benefit trust of approximately 14.7 billion yen. Extraordinary income is forecast in the previously announced consolidated results forecast, and we will disclose any impact, etc. on that amount without delay if disclosure is deemed

necessary at the time of the return and when the return value is determined.