Annual Financial Report 2022

FINANCIAL HIGHLIGHTS (consolidated)2022
Net sales

2021¥107,777

2020

2019

2018

¥92,635¥116,761¥117,405¥116,862¥67,730¥83,301¥84,493¥83,712¥24,522¥29,930¥29,078¥28,509¥381¥3,529¥3,834¥4,640¥267¥12,648¥5,742¥6,860¥3,165¥5,309¥1,662¥1,844¥(2,898)¥7,338¥4,079¥5,016¥43¥5,784¥3,475¥5,789¥(120.05)¥304.06¥169.03¥207.83¥199.30¥85.00¥45.00¥14.00¥134,296¥154,283¥150,724¥148,763¥82,152¥87,018¥83,197¥81,334¥1,799¥1,741¥1,195¥4,687¥1,755¥1,781¥1,868¥2,049¥2,218¥2,378¥1,835¥1,899

3,081

3,360

3,346

3,273

$880,611
Cost of sales¥75,262$614,943

Selling, general andadministrative expenses
Operating income¥28,278$231,053¥4,236$34,615

Net income before income taxes¥4,079$33,335

Income taxes¥353$2,892

Net income (loss)¥3,725$30,442Comprehensive income¥6,212$50,760

Per common share:
Net income (loss)¥154.27$1.26

Cash dividends¥75.00$0.61

Total assets¥166,989$1,364,409

Net assets¥83,515$682,374

Capital expenditures(property, plant and equipment)
Depreciation¥1,810$14,789¥1,952$15,957

R & D costs¥2,771$22,646

Number of employees

3,049

Note 1: In millions of yen (thousands of U.S. dollars), except for per-share data and number of employees.
Note 2: Yen amounts have been translated into U.S. dollars, for convenience only, at the exchange rate of ¥122.39=U.S.$1.
See Note 3 of the Notes to the Consolidated Financial Statements.
Note 3: SHIBAURA MACHINE CO., LTD. executed the consolidation of shares at the ratio of 5 shares into 1 share effectivefrom October 1, 2018. Net income per share is recalculated on the assumption that the consolidation of shares was
executed at the beginning of the year ended March 31, 2018. In addition, the cash dividend per share at the end of
March 31, 2019 is the sum of the interim dividend ¥7.50 and the year-end dividend ¥37.50. Since the interim
dividend amount is ¥37.50 when converted based on the consolidation of shares, the annual dividend amountincluding the ¥37.50 year-end dividend amount is ¥75.00 per share.
Note 4: Cash dividends per shares includes a commemorative dividend ¥10.00 at the end of March 31, 2020.
Note 5: Cash dividends per shares includes a special dividend ¥124.30 at the end of March 31, 2021.
Note 6: The Companies have adopted the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No.28, February 16, 2018). This accounting standard has been retrospectively applied to figures for the
beginning of the year ended March 31, 2018.

1

CONSOLIDATED BALANCE SHEETSHIABURA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2022
Thousands of
U.S. dollars(Note 3)

Millions of yen
ASSETS

2022

2021

2022

Current assets:
Cash and deposits (Notes 18 and 20)¥51,710¥42,417$422,509－

27,682－

23,613－

192,936

(37)

(37)

(306)

23,57527,644

192,630

Finished products

23,0006,736

187,930Work in process

28,541

22,327233,200

65

64

538

51,607

29,129421,668

7,566

3,560

61,827

134,461

102,752

1,098,633

21,146

20,758

172,778

843

571

6,889

436

744

3,569

8,249

7,597

67,403

Notes and accounts receivable, trade (Note 20)
Notes and accounts receivable - trade, and contract assets(Note 10, 20 and 27)
Allowance for doubtful receivables
Net receivables
Inventories:

Raw materials and supplies
Total inventories
Other current assets (Notes 20 and 22)
Total current assets
Property, plant and equipment, net (Note 6)
Intangible assets (Note 7)
Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates (Note 20)
Other securities (Notes 20 and 21)
Long-term loans
Deferred tax assets (Note 4 and 24)
Other investments
Total investments and other assets
Total assets

5

6

44

565

409

4,622

1,281

1,455

10,47010,538

10,213

86,108¥166,989¥134,296$1,364,409

See accompanying notes to financial statements.

2

Thousands of
U.S. dollars(Note 3)

Millions of yen
LIABILITIES AND NET ASSETS

2022

2021

2022

Current liabilities:
Short-term bank loans (Notes 20 and 31)¥10,417

Current portion of long-term debt (Notes 20 and 31)¥10,090$85,117

500

500

4,085

23,72917,613

193,884

465

74

3,805

Accrued expenses

2,248

2,341

18,372

Provision for bonuses

1,894

1,096

15,483Warranty reserve

618

591

5,056

Advances received

－

5,345

－

Contract liabilities (Note 27)

28,887－

236,032

Other current liabilities (Notes 20, 22 and 31)

2,003

1,316

16,37070,76638,969578,204

3,300

3,800

26,963

Notes and accounts payable, trade (Note 20)
Income taxes payable (Note 24)

Total current liabilities
Long-term liabilities:
Long-term debt (Notes 20 and 31)
Long-term accounts payable, other

5

5

47

Accrued directors’ retirement benefits

63

58

517

Net retirement benefit liability (Note 23)

8,354

8,518

68,263

Asset retirement obligations

384

105

3,142

Deferred tax liabilities (Note 24)

440

570

3,600

Other long-term liabilities (Note 31)

158

115

1,298

Total long-term liabilities

12,707

13,174

103,831

83,474

52,144

682,035

12,484

12,484

102,008

Additional paid-in capital

11,538

11,53894,274Retained earnings

68,37469,522558,661(16,322)(16,346)(133,362)

76,07577,198621,581

Unrealized holding gain on securities, net of tax (Note 21)

4,350

3,749

35,549Foreign currency translation adjustments

3,348

1,737

27,360Remeasurements of defined benefit plans (Note 23)

(259)

(533)

(2,117)

7,440

4,953

60,79383,51582,152

682,374¥166,989¥134,296$1,364,409

Total liabilities
Contingent liabilities (Note 8)
Net assets:
Shareholders’ equity: (Note 16)
Common stock
Authorized- 72,000,000 shares

Issued- 29,977,106 shares

Treasury stock, at cost
(5,822,705 shares in 2022, 5,831,373 shares in 2021)
Total shareholders’ equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
Total net assets (Note 30)
Total liabilities and net assets

See accompanying notes to financial statements.

3

CONSOLIDATED STATEMENT OF INCOMESHIABURA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2022
Thousands of
U.S. dollars(Note 3)

Millions of yen
2022
Net sales (Note 27)

2021

2022

¥107,777¥92,635$880,611

75,262

67,730614,943

32,51524,904

265,667

28,27824,522231,053

4,236

381

34,615Interest and dividend income

346

271

2,832

Rent income

48

45

395

Foreign exchange income

363

348

2,966

Subsidies for employment adjustment

289

677

2,362

Subsidy income

－

220

－

Gain on sales of property, plant and equipment

15

13

127

Gain on sales of investment securities (Note 21)

25

132

208

Others

311

282

2,541

1,399

1,993

11,432

Interest expense

117

84

959

Brand fee expense

－

0

－

Outsourcing expenses

118

655

966

136

78

1,113

3

－

25

307

35

2,514

Loss on valuation of investment securities (Note 21)

17

－

145

Loss on impairment of fixed assets (Note 14)

40

371

331

Extra retirement payments (Note 15)

－

264

－

Others

814

615

6,658

1,555

2,107

12,712

4,079

267

33,335Current

847

403

6,921

Deferred

(493)

2,762

(4,028)

353

3,165

2,892

3,725

(2,898)30,442¥3,725¥(2,898)$30,442

Cost of sales (Note 13)
Gross profit
Selling, general and administrative expenses (Notes 12 and 13)
Operating income
Other income:

Other expenses and losses:

Loss on disposal of property, plant and equipment
and intangible assets
Loss on sale of investment securities (Note 21)
Loss on valuation of shares of subsidiaries and affiliates (Note 21)

Net income before income taxes
Income taxes (Note 24)

Net income (loss)
Net income (loss) attributable to owners of parent

See accompanying notes to financial statements.

4

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMESHIABURA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2022
Thousands of
U.S. dollars(Note 3)

Millions of yen
2022
Net income (loss)

2021

2022

¥3,725¥(2,898)$30,442

Unrealized holding gain (loss) on securities, net of tax

601

1,415

4,914

Deferred gains or losses on hedges

－

(0)

－

Foreign currency translation adjustments

1,611

893

13,166

Remeasurements of defined benefit plans

273

632

2,238

Other comprehensive income (loss): (Note 17)

Total other comprehensive income (loss)
Comprehensive income

2,486

2,941

20,318¥6,212¥43$50,760

6,212

43

50,760－－－Comprehensive income attributable to:
Owners of parent
Non-controlling interests

See accompanying notes to financial statements.

5

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSSHIABURA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2022
Millions of yen
Number of
SharesBalance at April 1, 2020

29,977,106

Common stock

Additional
paid in capital

12,484

11,538Retainedearnings

Treasury stock

77,359Net loss attributable to owners of parent(16,376)

0843

Remeasurements of defined
Total net assets
benefit plans(1,165)(0)(4,931)

Restricted stock compensation(7)(4,931)30

Net changes in items other than shareholders’ equity
29,977,106

12,484

11,53869,522Adjustments by accounting policy changes(16,346)

22
1,415

(0)

893

632

2,941

3,749

－

1,737

(533)

82,152

3,749－(3,059)Balance at March 31, 2021 after adjustments

12,484

11,53866,462

Net income attributable to owners of parent(3,059)(16,346)

1,737

(533)

3,725

Purchases of treasury stock(0)(1,811)

Restricted stock compensation(2)(1,811)24

Net changes in items other than shareholders’ equity
29,977,106¥12,484¥11,538¥68,374

79,092
3,725(0)Cash dividends

87,018(2,898)(0)Cash dividends

Balance at March 31, 2022

2,334Translation
adjustments(2,898)Purchases of treasury stock

Balance at March 31, 2021

Unrealized gain Deferred gains
on securities,
or losses on
net of tax
hedges¥(16,322)

22
601

－

1,611

273

2,486

¥4,350¥－¥3,348¥(259)¥83,515

Unrealized gain Deferred gains
on securities,
or losses on
net of tax
hedgesTranslation
adjustments

Thousands of U.S. dollars (Note 3)

Balance at March 31, 2021

Common stock

Additional
paid in capital

Retainedearnings$102,008$94,274$568,039

102,008

94,274543,037

Adjustments by accounting policy changes
Balance at March 31, 2021 after adjustments

Treasury stock$(133,561)$30,636$－$14,195$(4,356)$671,236(133,561)

30,636－

14,195(4,356)646,234(25,002)

Net income attributable to owners of parent(25,002)30,442

Purchases of treasury stock

30,442(5)

Cash dividends(5)(14,799)

Restricted stock compensation(20)(14,799)204

Net changes in items other than shareholders’ equity
Balance at March 31, 2022

Remeasurements of defined
Total net assets
benefit plans$102,008$94,274$558,661$(133,362)

184
4,914

－

13,1662,238

20,318$35,549$－$27,360$(2,117)$682,374

See accompanying notes to financial statements.
6

CONSOLIDATED STATEMENT OF CASH FLOWSSHIABURA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2022
Thousands of
U.S. dollars(Note 3)

Millions of yen
2022

2021

2022

Operating activities:
Net income before income taxes¥4,079¥267$33,335

Adjustments to reconcile net income before income taxes to net cash provided by operating activities:
Depreciation¥1,952¥1,755

15,957

Loss on impairment of fixed assets

40

371

331

Extra retirement payments

－

264

－

Allowance for doubtful receivables

125

249

1,027

Provision for bonuses

798

1,096

6,523

Warranty reserve

27

(128)

222

Directors’ retirement benefit

5

16

41

Net defined benefit liability

110

(618)

900

Interest and dividend income

(346)

(271)

(2,832)

Interest expense

117

81

959

Loss (gain) on sales of investment securities

(22)

(132)

(184)

Loss on valuation of investment securities

17

－

145

Loss on valuation of shares of subsidiaries and affiliates

307

35

2,514

120

64

986

Notes and accounts receivable, trade(1,815)

8,382(14,832)

Inventories(8,537)

6,868(69,754)

Notes and accounts payable, trade

6,555(3,616)53,563

Advances received－(1,058)－Contract liabilities

10,275－83,958

Accrued expenses

262(3,003)

2,142

Others(2,884)(1,587)(23,572)

Sub total

11,1909,039

91,431

Interest and dividend income received

346

271

2,832

Interest paid

(88)

(88)

(719)

Income taxes paid

(149)

(7,857)(1,219)－(1,172)－

11,299192

92,325Gain or loss on sales and disposalof property, plant and equipment and intangible assets
Changes in operating assets and liabilities:

Extra retirement payments
Net cash provided by operating activities

7

Thousands of
U.S. dollars(Note 3)

Millions of yen
2022

2021

2022

Investing activities:
Purchases of property, plant and equipment(1,252)

Proceeds from sales of property, plant and equipment(1,545)(10,232)

86

16

703

Purchases of intangible assets

(353)

(219)

(2,887)

Proceeds from sales of investment securities

209

320

1,715

(Increase) decrease in short-term loans receivable

1

(16)

14

Collection of long-term loans receivable

1

6

10

Others

42

(99)

348

(1,264)(1,537)(10,330)

Proceeds from short-term borrowings

327

－

2,675

Repayments of long-term borrowings

(500)

－

(4,085)

(0)

(0)

(5)

(1,811)(4,931)(14,799)

(123)

(24)

(1,012)(2,108)(4,956)(17,226)

1,365

708

11,161

Net cash used in investing activities
Financing activities:

Purchases of treasury stock
Cash dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

9,292(5,593)75,929Cash and cash equivalents at beginning of year

42,41748,011

346,580

Cash and cash equivalents at end of year (Note 18)¥51,710¥42,417$422,509

See accompanying notes to financial statements.

8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SHIBAURA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES

1.

Basis of Presenting Consolidated Financial Statements

The accompanying consolidated financial statements of SHIBAURA MACHINE CO., LTD. (the “Company”) and its
consolidated subsidiaries (collectively, the “Companies”) are prepared on the basis of accounting principles generally
accepted in Japan, which are different in certain respects as to the application and disclosure requirements of International
Financial Reporting Standards, and are compiled from the consolidated financial statements prepared by the Company as
required by the Financial Instruments and Exchange Law of Japan. The preparation of these consolidated financial
statements requires management to make estimates and assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the fiscal year end and the reported amounts of revenues andexpenses during the reporting period. Actual results could differ from these estimates.
Certain reclassifications and rearrangements have been made to the consolidated financial statements issued domesticallyin order to present them in a form that is more familiar to readers outside of Japan. In addition, the notes to theconsolidated financial statements include information which is not required under accounting principles generally acceptedin Japan but is presented herein as additional information.

2.

Summary of Significant Accounting Policies(a) Basis of consolidation and accounting for investments in unconsolidated subsidiaries and affiliates
The consolidated financial statements include the accounts of the Companies.
All significant intercompany transactions and accounts and unrealized intercompany profits among consolidated entities
are eliminated in consolidation.
Unconsolidated subsidiaries and affiliates not accounted for by the equity method are stated at cost.
(b) Translation of foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rate
prevailing at the balance sheet date, except for those perfectly hedged by forward contracts, which are translated using thecontracted rate.
The foreign exchange gains and losses from translation are recognized in the consolidated statement of income to theextent that they are not hedged by foreign exchange derivatives.
All assets and liabilities of foreign consolidated subsidiaries are translated at the current rates at the respective balance
sheet dates, except for components of shareholders’ equity which are translated at their historical rates. The revenue andexpense accounts of foreign consolidated subsidiaries are translated at the current rates at the respective balance sheet
dates. Differences arising from translation are recognized directly in foreign currency translation adjustments in net assets.
(c) Securities
Marketable securities classified as other securities are carried at fair value with any changes in unrealized holding gain or
loss, net of income taxes, directly included in net assets.
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by themoving average method.
(d) Inventories
Finished products and work in process are stated at the lower of cost, determined by the individual identification method,or their net realizable value. Raw materials and supplies are stated at the lower of cost, determined by the moving averagemethod, or their net realizable value.
(e) Allowance for doubtful receivables
The allowance for doubtful receivables is stated at the amount determined based on the default ratio sustained over a
specific period in the past and the estimated uncollectible amount determined based on the analysis of certain individual
accounts, including probable bad debt and claims in bankruptcy.
(f)Warranty reserve

Warranty reserve is provided for warranty costs to be incurred during the warranty period based on historical experience.
9

(g) Employee bonuses
The bonuses paid to the employees are accrued based on the estimated amounts incurred and to be paid in thesubsequent period.
(h) Depreciation of property, plant and equipment (excluding leased assets)
Depreciation of buildings is principally computed by the straight-line method, facilities attached to buildings and othernon-building structures acquired on or after April 1, 2016 is computed by the straight-line method and depreciation ofother property, plant and equipment is computed by the declining balance method over the estimated useful lives ofrespective assets, principally ranging from 3 to 60 years for buildings and structures, and from 3 to 22 years for machinery,equipment and vehicles.
(i)

Amortization of intangible assets
Computer software held for internal use is amortized by the straight-line method over the corresponding economic usefullife (5 years). Other intangible assets, including patent rights, are amortized by the straight-line method over the estimateduseful lives of respective assets.
(j)Leased assets

Leased assets under finance lease transactions that do not transfer ownership to the lessee are depreciated by thestraight-line method over the lease term with no residual value.
(k) Derivative financial instruments
All derivatives are stated at fair value. Gains or losses arising from changes in fair value are charged or credited to income
for the period in which they arise, except for derivatives that are designated as hedging instruments. Gains or losses arisingfrom changes in fair value of the derivatives designated as cash flow hedging instruments, net of the applicable income
taxes, are reported as a component of net assets.
(l)

Income taxes
The Companies accrue current income taxes based on taxable income.
The Companies recognize a number of temporary differences for financial reporting purposes, which, in the case of

expenses, are not currently deductible and in the case of income, are not currently taxable.
Income tax effects on such temporary differences between tax and financial reporting purposes are reflected as deferredincome taxes in the consolidated financial statements using the asset and liability method.
(m) Employees’ retirement benefits
Accrued employees’ retirement benefits are provided based on the projected retirement benefit obligation and the fairvalue of plan assets at fiscal year-end.
The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
Actuarial gain or loss is amortized in the following year in which the gain or loss is recognized primarily by the straightline method over a period (10 years), which is shorter than the average remaining years of service of the employees.
(n) Directors’ retirement benefits
Domestic consolidated subsidiaries accrue an estimated amount calculated in accordance with internal rules for
retirement benefits for directors and corporate auditors.
(o) Method of significant revenue and expense recognition standards
The Companies recognize revenue based on the five-step process below.
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group engages in the manufacturing, sale, and maintenance services of products for the molding machinery, machine
tools, control systems, and other businesses. Each business recognizes revenue as described below.
10Revenue is measured based on the consideration specified in the contract with a customer. The total amount ofconsideration for the contract is allocated to all products and services based on their stand-alone selling prices. Stand-alone
selling prices are calculated with reference to selling prices of similar products or services and other reasonably available
information.
When consideration is received from a customer before a control of product is transferred and the period between thereceipt of consideration from the customer and the timing of transfer originally scheduled in the contract exceeds one year,
adjustments are made for the effects of significant interest components.
A product sale contract with a customer includes a clause which warrants that the product complies with agreed-upon
specifications. The Company and its consolidated subsidiaries recognize warranty reserve for expenses related to suchwarranty.
①Molding machinery business
The molding machinery business engages in the manufacturing, sale, and maintenance services of injection molding
machines, die casting machines, and extrusion machines. In a sales contract with a customer, the Companies have an
obligation to manufacture and deliver the ordered product and enable the customer to engage in production activities
using that product.
Revenue from the sale of products is typically recognized when control of products is transferred to the customer, i.e.,
when products are shipped to the location designated by the customer, delivered, and accepted by the customer. This isbecause at that timing, the legal title to and physical possession of the products and significant risks and rewards ofownership associated with the possession of the products are transferred to the customer and the Companies become
entitled to receive payment from the customer.
②Machine tools business
The machine tools business engages in the manufacturing, sales, and maintenance services of machine tools (large size
machines, double column type machining centers, boring machines, vertical boring and turning mills, etc.), high-precision
machines, and others. In a sales contract with a customer, the Companies have an obligation to manufacture and deliver theordered product and enable the customer to engage in production activities using that product.
Revenue from the sale of products is typically recognized when control of products is transferred to the customer, i.e.,
when products are shipped to the location designated by the customer, delivered, and accepted by the customer. This isbecause at that timing, the legal title to and physical possession of the products and significant risks and rewards ofownership associated with the possession of the products are transferred to the customer and the Companies become
entitled to receive payment from the customer.
③Control systems business
The control systems business engages in the manufacturing, sale, and maintenance services of industrial robots, electronic
controls, and others. In a sales contract with a customer, the Companies have an obligation to manufacture and deliver theordered product.
Revenue from the sale of products is typically recognized when control of products is transferred to the customer, i.e.,
when products are shipped to the location designated by the customer and delivered. This is because at that timing, thelegal title to and physical possession of the products and significant risks and rewards of ownership associated with thepossession of the products are transferred to the customer and the Companies become entitled to receive payment fromthe customer.
(p) Amounts per share of common stock
Net income per share is computed based on the weighted-average number of shares of common stock outstanding
during a year.
Diluted net income per share is not presented since the Company has never issued any securities with dilutive effect, suchas bonds with warrants and convertible bonds. Cash dividends per share represent the actual amount declared as applicableto the respective years.
(q) Cash equivalents
In preparing the consolidated statement of cash flows, cash on hand, readily available deposits and short-term highly
liquid investments with maturities of not exceeding three months at the time of purchase are considered to be cash andcash equivalents.

11

(r)

Application of tax effect accounting for transition from consolidated taxation system to group tax sharing
systemThe Company and its domestic consolidated subsidiaries will transition from the Consolidated Taxation System to theGroup Tax Sharing System. However, the Company and its domestic consolidated subsidiaries have calculated the amountsof deferred tax assets and deferred tax liabilities according to the tax acts before amended, for items for which the nonconsolidated taxation system has been reviewed in line with the transition to the group tax sharing system, based on thetreatment of Paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System” (ASBJ Practical Issues Task Force No.39, March 31, 2020)
instead of applying the provision on Paragraph 44 of “Implementation Guidance on Tax Effect Accounting“ (ASBJ Guidance
No.28, February 16, 2018), regarding the transition to group tax sharing system established in “Act for Partial Amendment of
the Income Tax Act, etc.” (Act No.8 of 2020).
The Company and its domestic consolidated subsidiaries expect to adopt the “Accounting and treatment of disclosure forthe adoption of the Group Tax Sharing System (ASBJ Practical Issues Task Force No.42, August 12, 2021) from the beginningof the fiscal year ending March 31, 2023.

3.

U.S. Dollar Amounts

U.S. dollar amounts are included solely for the convenience of the readers and have been translated at the rate of¥122.39=U.S.$1, the approximate exchange rate prevailing in the Japanese foreign exchange market on March 31, 2022. Thistranslation should not be construed as a representation that the yen amounts actually represent, have been, or could be
converted into U.S. dollars.

4.

Accounting Estimates

Recoverability of deferred tax assets(a) Amount recorded in the consolidated financial statements for the fiscal year
Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Deferred tax assets (Balance Sheet amount)

¥565

¥409

$4,616

Deferred tax assets (Before offsetting)

3,136

2,408

25,623

Deferred tax liabilities (Balance Sheet amount)

440

570

3,595

Deferred tax liabilities (Before offsetting)

3,011

2,569

24,602(b) Information on the contents of accounting estimates related to the identified items①Method of calculation
Deferred tax assets is recognized for the deductible temporary differences and the unused portion of tax loss carryforwards, based on projection of future taxable income. For the estimate of taxable income, the timing and amount of futuretaxable income is reasonably estimated and calculated based on the next fiscal year’s business plan.
②Key assumptions
When determining the appropriateness of future taxable income before temporary differences, an estimate is made of thetaxable income for the fiscal year in which the reversal of temporary differences, etc. is expected. Future taxable income is
projected based on the business plans of the next fiscal year for each of the Group’s companies, and such business plans areprepared by forecasting the timing of realization of backlog of orders for each product and the status of orders received forthe next fiscal year. Moreover, it is assumed that the lingering impact from COVID-19 will gradually dissipate from thesecond half of the fiscal year ending March 31, 2023.
③Impact on the consolidated financial statements for the following fiscal year
The forecasts on the timing of realization of order backlog and the status of orders received for the next fiscal year, whichconstitute key assumptions, entail uncertainty of estimates. This is due to future uncertain economic conditions, where theCompanies may see unexpected decreases in sales volumes and selling prices of some products caused by geopolitical risks
or a resurgence of the impact of COVID-19. For this reason, the estimated amount of taxable income may change, and thechange has a risk of having a significant impact on the determination of the recoverability of deferred tax assets.

12

5.

Accounting Changes(Application of Accounting Standard for Revenue Recognition, etc.)
The Companies have adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Standard”) and other standards from the beginning of the fiscal year ended March 31,
2022. The Companies recognize revenue when control of a promised good or service is transferred to a customer, in an
amount expected to be received in exchange for such good or service. Accordingly, the following change has been made.
Sale of products
Conventionally, revenue from the sale of products generated mainly in the molding machinery and machine tools
businesses were recognized when products were delivered to the customer. The Companies now recognize revenue whencontrol of products is transferred to the customer, i.e., when products are shipped to the location designated by thecustomer, delivered, and accepted by the customer. This is because at that timing, the legal title to and physical possessionof the products and significant risks and rewards of ownership associated with the possession of the products aretransferred to the customer and the Companies become entitled to receive payment from the customer.
The Companies apply the Revenue Recognition Standard, etc. in accordance with the transitional measures provided for in
the proviso to Paragraph 84 of the Revenue Recognition Standard. The cumulative impact of retrospectively applying the
new accounting policies to prior fiscal years has been reflected in retained earnings at the beginning of the fiscal year ended
March 31, 2022, and the new accounting policies were applied from the beginning balance. However, the Companies apply
the method provided for in Paragraph 86 of the Revenue Recognition Standard, and do not apply the new accounting
policies retrospectively to contracts for which substantially all revenue amounts had been recognized prior to the beginningof the fiscal year ended March 31, 2022 in accordance with the previous standard.
In addition, notes and accounts receivable, trade, which was presented under current assets in the consolidated balance
sheet of the previous fiscal year, has been included under notes and accounts receivable - trade, and contract assets andadvances received, which was presented under current liabilities, has been included under contract liabilities , from the fiscal
year ended March 31, 2022. In accordance with the transitional measures set forth in Paragraph 89-2 of the Revenue
Recognition Standard, figures for the previous fiscal year have not been reclassified based on the new presentation method.
As a result, compared with the figures before the adoption of the Revenue Recognition Standard, etc., net sales decreasedby ¥1,777 million ($14,520 thousand), cost of sales decreased by ¥1,649 million ($13,476 thousand), selling, general andadministrative expenses decreased by ¥627 million ($5,129 thousand), and operating income, and net income before income
taxes each increased by ¥499 million ($4,085 thousand) in the consolidated statement of income for the fiscal year ended
March 31, 2022.
The cumulative impact of this change has been reflected in net assets at the beginning of the fiscal year ended March 31,
2022. As a result, the balance of retained earnings at the beginning of the fiscal year decreased by ¥3,059 million ($25,002
thousand) in the consolidated statement of changes in net assets.
The impact of this change on per share information is described in the relevant section.
In accordance with the transitional treatment provided for in Paragraph 89-3 of the Revenue Recognition Standard, notes
related to revenue recognition for the prior fiscal year are omitted.
(Adoption of Accounting Standard for Fair Value Measurement)
The Companies have adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019;
hereinafter the “Fair Value Measurement Standard”) and other standards from the beginning of the fiscal year ended March
31, 2022, and will prospectively apply the new accounting policies stipulated by the Fair Value Measurement Standard, etc. inaccordance with the transitional measures provided in Paragraph 19 of the Fair Value Measurement Standard and Paragraph44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). This does not affect theconsolidated financial statements. In addition, the Company notes on items such as the matters relating to breakdown offair value of financial instruments by level in Note 20, “Financial Instruments”. However, notes for the prior fiscal year havebeen omitted in accordance with the transitional treatment prescribed in Paragraph 7-4 of the Implementation Guidance on
Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19, July 4, 2019).

13

6.

Property, Plant and Equipment

Property, plant and equipment at March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Land

¥7,142¥7,098$58,362

Buildings and structures

37,04039,252

302,643

Machinery and equipment

23,187

24,134

189,452

Vehicles

275

287

2,255

7,084

7,238

57,884

Lease assets

469

264

3,833

Construction in progress

842

474

6,881

Sub total

76,04278,750621,309

Less accumulated depreciation(54,895)(57,991)(448,531)

Property, plant and equipment, net¥21,146¥20,758$172,778

Tools, furniture and fixtures

Depreciation expenses for the years ended March 31, 2022 and 2021 were ¥1,952 million ($15,957 thousand) and ¥1,755
million, respectively.

7.

Intangible Assets

Intangible assets at March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Others¥843¥571$6,889

Total

¥843

¥571

$6,8898.

Contingent Liabilities

As of March 31, 2022, contingent liabilities for loans guaranteed by the Company, principally on behalf of nonconsolidated subsidiaries and affiliated companies, amounted to ¥597 million ($4,882 thousand).

9.

Commitment Line

The Company has concluded commitment line contracts with three financial institutions in order to ensure that it cansafely and flexibly meet any demand for funds. The balance of unused committed lines under these contracts at the end of
the fiscal year was as follows:
Thousands of
U.S. dollars

Millions of yen
2022
Total amount of commitment line

2021

2022

¥10,000¥20,000$81,706

Funds borrowed

－

－

－

Unused amount¥10,000¥20,000$81,70614

10. Receivable arising from contracts with customers and contract assets include in Notes
and accounts receivable - trade, and contract assets consisted of the following:
Millions of yen

Thousands of
U.S. dollars

2022

2022

Notes

¥5,166$42,214

Accounts receivable, trade17,451

142,591

995

8,131

Contract assets

11. Revenue from contracts with customers
Revenues are not separately presented for revenue from contracts with customers and other revenues. The amount ofrevenue from contracts with customers is presented in Note 27, “Revenue”.

12. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2022 and 2021 were as
follows:
Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Sales commission¥1,697¥1,223$13,869

Shipping expenses

4,067

2,842

33,231

501

491

4,093

11,649

11,195

95,181Retirement benefit expenses

593

684

4,848

Depreciation

788

738

6,446

Rent expenses

1,003

911

8,199

Travel expenses

671

561

5,484

1,799

1,404

14,700

498

468

4,075

Others

5,008

4,000

40,926

Total¥28,278¥24,522$231,053

Provision for warranty reserve
Personnel-expenses

Research and development expenses
Subcontract expenses

13. Research and Development Costs
Research and development costs charged to income were ¥2,771 million ($22,646 thousand) and ¥2,218 million for theyears ended March 31, 2022 and 2021, respectively.

14. Loss on Impairment of Fixed Assets
The Companies accounted for impairment losses for the year ended March, 31 2021 as follows:
Millions of yen
2021
Rayong, Thailand:Business assets
Buildings and structures¥346

Machinery, equipment and vehicles

7

Other property , plant and equipment

16

Other intangible assets

0

Total

¥371

15

(a) Reason for the recognition of impairment loss
The carrying amount of the asset group of SHIBAURA MACHINE MANUFACTURING (THAILAND) CO., LTD. (Located in
Rayong, Thailand) was reduced to the recoverable amount because the estimated future cash flow obtainable from that
asset group fell below the carrying amount, and the amount of reduction was recorded as impairment loss under otherexpenses and losses.
(b) Asset grouping method
The Company, in principle, classifies groups of business assets using a company as the basis unit, and the business assetsof each of its consolidated subsidiaries are treated as one asset group.
For its idle assets, the Company groups each asset individually.
Up until present, the Company had grouped its business assets using a business division as the basis unit. However, since
carrying out organizational restructuring following the adoption of the in-house company system, the Company haschanged to group its business assets in line with the in-house company system as the basis unit from the fiscal year.
(c) Method of computing the recoverable amountThe net selling value is the recoverable amount used in measurement of impairment loss. The net selling value iscalculated based on the real estate appraisal value.
The Companies accounted for impairment losses for the year ended March, 31 2022 as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2022

Sendai, Miyagi, Japan:
Idle property
Buildings and structures

¥36

$301

Other intangible assets

3

31

¥40

$331

Total
(a) Reason for the recognition of impairment loss

The Company reduced the book value of its Tohoku Branch (Located in Sendai, Miyagi, Japan) to the recoverable amountdue to the relocation of the Branch, and the amount of reduction was recorded as impairment loss under other expenses
and losses.
(b) Asset grouping method
The Company, in principle, classifies groups of business assets using a company as the basis unit, and the business assetsof each of its consolidated subsidiaries are treated as one asset group.
For its idle assets, the Company groups each asset individually.
(c) Method of computing the recoverable amountThe net selling value is the recoverable amount used in measurement of impairment loss. The net selling value iscalculated based on the memorandum value.

15. Extra retirement payments
Extra retirement payments for the year ended March 31, 2021 include special additional retirement bonuses and otherexpenses with the implementation of the voluntary retirement measures.

1616. Shareholders’ Equity
The Corporation Law of Japan (the “Law”), which went into effect on May 1, 2006, provides that an amount equal to 10%of the amount to be distributed as distribution of additional paid in capital (other than the capital reserve) and retained
earnings (other than the legal reserve) be transferred to the capital reserve and legal reserve, respectively, until the sum of
the capital reserve and legal reserve equals 25% of the common stock account. Such distributions can be made at any timeby resolution of the shareholders or by the Board of Directors if certain conditions are met, but neither the capital reserve
nor the legal reserve is available for distributions.

17. Other Comprehensive Income
The components of other comprehensive income (loss) for the years ended March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2021

2022

Unrealized holding gain (loss) on securities:
Current period changes in unrealized gain (loss)¥879¥2,137$7,189

(22)

(132)

(184)

857

2,005

7,005

(255)

(590)

(2,091)

601

1,415

4,914

－

(0)

－

－

(0)

－

－

0

－

－

(0)

－

1,611

914

13,166

－

(21)

－

1,611

893

13,166

Current period changes in remeasurements of defined benefit plans

133

432

1,093

Reclassification adjustment

140

200

1,145

273

632

2,238

－

－

－

273

632

2,238

¥2,486¥2,941$20,318

Reclassification adjustment
Total unrealized holding gain (loss) on securities before tax effects

Tax effects
Unrealized holding gain (loss) on securities, net of tax effects
Deferred gains or losses on hedges
Current period changes
Total deferred gains or losses on hedges before tax effects
Tax effects
Deferred gains or losses on hedges, net of tax effects
Foreign currency translation adjustments:
Current period changes
Reclassification adjustment
Total Foreign currency translation adjustments
Remeasurements of defined benefit plans

Total remeasurements of defined benefit plans before tax effectTax effects
Remeasurements of defined benefit plans, net of tax effects
Total other comprehensive income (loss)

18. Cash Flow Information
Cash and Cash Equivalents
The reconciliation between cash and deposits in the accompanying consolidated balance sheet and cash and cash
equivalents in the accompanying consolidated statement of cash flows at March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2021

2022

Cash and deposits¥51,710¥42,417$422,509

Cash and cash equivalents¥51,710¥42,417$422,509

19. Leases
This disclosure has been omitted for the year ended March 31, 2022 based on immateriality.

1720. Financial Instruments
Overview(a)

Policy for financial instruments

The Companies invest in short-term deposits for fund management, where temporary cash surplus is invested in low-risk
financial instruments. The Companies raise funds through bank borrowings. The Companies use derivatives only to reducerisk, and do not enter into derivative transactions for speculative trading purposes.
(b) Financial instruments, related risk and risk management system
Operating receivables, such as notes and accounts receivable, trade are exposed to customer credit risk. The Companies
try to reduce this risk by adhering to their sales management rules. Investments, consisting of marketable securities ofcorporations, are exposed to stock price fluctuation risk in the market. To address this risk, the Companies review stock
prices in every quarter. Operating payables, such as notes and accounts payable, trade are mainly due within six months.
Borrowings are mainly used in for normal operations and capital investments. The maturity of borrowings is up to three
years from the balance sheet date at the maximum.
Derivative transactions consist of foreign exchange forward contracts, etc. used for the purpose of hedging foreignexchange risk associated with certain assets and liabilities denominated in foreign currencies. These derivative transactions
are managed under the internal management policies, to the extent deemed necessary. Note 20, “Derivative Financial
Instruments,” provides more information on hedge accounting, hedging instruments and methods, hedging policy, hedged
items and assessments of hedge effectiveness.
The Finance Department of the Companies prepares and updates its cash flow plan to manage liquidity risk. A part ofbank borrowings are subject to terms of financial covenants. If the Companies violate the terms of the financial covenants,
the terms of the borrowings may be possibly revised.
The terms of the financial covenants related to a syndicated loan contract (¥3,500 million ($28,597 thousand) at March 31,2022) are as follows:① At March 31 and September 30 every year, the Company must maintain net assets in the consolidated balance sheetover ¥57,840 million ($472,588 thousand).
② In the consolidated statement of income for the fiscal year ending March 31, the Company must not record operating
loss for two consecutive years.
(c)Supplemental information on the fair value of financial instruments

Fair value of financial instruments is calculated based on market prices, or by using reasonable estimates when market
prices are not available. These estimates include variable factors, and are subject to fluctuation due to a change inunderlying assumptions. The contract amounts of derivatives presented in Note 20, “Derivative Financial Instruments,” below
do not represent the actual market risk associated with derivative transactions.

18Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2022 and 2021, and their fair value were as follows:Year ended March 31, 2022

Millions of yen
Carrying value

Notes and accounts receivable – trade, and contract assets

Fair value

23,613Difference

23,613

0

8,183

8,183

－

¥31,796¥31,796¥0Long-term debt including current portion

3,800

3,808

8

Total liabilities¥3,800¥3,808¥8

Derivatives

¥(28)

¥(28)

¥－

Investment securities
Total assets

Year ended March 31, 2021

Millions of yen
Carrying value

Fair value

Difference

Cash and deposits¥42,417¥42,417¥－

Notes and accounts receivable, trade27,682

27,6820Marketable securities and investment securities

7,513

7,513

－

Total assets¥77,613¥77,613¥0

Short-term bank loans¥10,090¥10,090¥－

Notes and accounts payable, trade17,613

17,613－Long-term debt including current portion

4,300

4,309

9

¥32,003¥32,012

¥9

¥(4)

¥(4)

¥－

Total liabilities
Derivatives
Year ended March 31, 2022

Thousands of U.S. dollars

Carrying value
Notes and accounts receivable – trade, and contract assets

Fair value

192,936

Difference

192,936066,861

66,861－$259,796$259,797$0Long-term debt including current portion

31,04831,11668

Total liabilities$31,048$31,116$68

Derivatives$(233)$(233)$－

Investment securities
Total assets

Note1:“Cash and deposits”, ”Notes and accounts payable, trade” and “Short-term bank loans” are omitted as the fairvalues approximate their carrying values because they are cash or settled in a short period of time.

Note2:

Investment securities for which the market prices are not available are not included in ‘Investment securities” in theabove table. Carrying value of financial instruments as of March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars

Millions of yen
2022
¥503

Unlisted stocks

Note3:

2021

2022
¥828

Derivatives are presented as net amounts receivable or payable with net amounts payable in parentheses.

19$4,112(a)The aggregate annual maturities of financial assets

Year ended March 31, 2022

Millions of yen
Due after one year Due after five years
Due within one year
Due after ten years
through five years through ten years

Cash and deposits¥51,705

¥－

¥－

¥－

23,526

87

－

－

¥87

¥－

¥－

Notes and accounts receivable –trade, and contract assets
Total¥75,231

Year ended March 31, 2021

Millions of yen
Due after one year Due after five years
Due within one year
Due after ten years
through five years through ten years

Cash and deposits¥42,413

¥－

¥－

¥－
－
¥－

Notes and accounts receivable, trade27,647

35

－

Total

¥70,060¥35¥－

Year ended March 31, 2022

Thousands of U.S. dollars
Due after one year Due after five years
Due within one year
Due after ten years
through five years through ten years

Cash and deposits$422,464

$－

$－

$－

192,224712－－$614,688

$712

$－

$－

Notes and accounts receivable –trade, and contract assets
Total(b) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2022

Short-term bank loans
Long-term debt
Total

Millions of yen
Due within one
year

Due after one
year throughtwo years

Due after two
years throughthree years

Due after three
years throughfour years

Due after four
years throughfive years

Due after fiveyears

¥10,417

¥－

¥－

¥－

¥－

¥－

500

3,300

－

－

－

－

¥10,917¥3,300

¥－

¥－

¥－

¥－

Due within one
year

Due after one
year throughtwo years

Due after two
years throughthree years

Due after three
years throughfour years

Due after four
years throughfive years

Due after fiveyears

¥10,090

¥－

¥－

¥－

¥－

¥－

500

500

3,300

－

－

－

¥10,590¥500¥3,300¥－¥－¥－Due within one
year

Due after one
year throughtwo years

Due after two
years throughthree years

Due after three
years throughfour years

Due after four
years throughfive years

Due after fiveyears

$85,117

$－

$－

$－

$－

$－

4,085

26,963－－－－$89,202$26,963

$－

$－

$－

$－

Year ended March 31, 2021

Short-term bank loans
Long-term debt
Total

Millions of yen

Year ended March 31, 2022

Short-term bank loans
Long-term debt
Total

Thousands of U.S. dollars

20

(c)

Matters relating to breakdown of fair value of financial instruments by level

Fair values of financial instruments are categorized into three levels as below on the basis of the observability and themateriality of the valuation inputs used in fair value measurements.
Fair values of Level 1: Fair values measured by quoted prices of the assets or liabilities being measured which are given in
active markets among observable valuation inputs
Fair values of Level 2: Fair values measured by inputs other than inputs included within Level 1 among observablevaluation inputs
Fair values of Level 3: Fair values measured by unobservable valuation inputs
When several inputs that have significant impact on fair value measurement are used and those inputs are categorized
into different levels, the fair value is categorized into the lowest priority level for fair value measurement among the levels inwhich each of the inputs belongs.
①Financial instruments recorded at fair value in the consolidated balance sheet
Year ended March 31, 2022

Millions of yen
Level 2

Level 1

Level 3

Total

Investment securities
Other securities
Equity securities
Total Assets¥8,183¥－¥－¥8,183¥8,183¥－¥－¥8,183

¥－

¥28

¥－

¥28

¥－

¥28

¥－

¥28

Derivative Transactions
Currency-Related Transactions
Total Liabilities
Year ended March 31, 2022

Thousands of U.S. dollars
Level 2

Level 1

Level 3

Total

Investment securities
Other securities
Equity securities
Total Assets$66,861$－$－$66,861$66,861$－$－$66,861

$－

$233

$－

$233

$－

$233

$－

$233

Derivative Transactions
Currency-Related Transactions
Total Liabilities②Financial instruments other than financial instruments recorded at fair value in the consolidated balance sheet
Year ended March 31, 2022

Millions of yen
Level 2

Level 1

Level 3

Total

Notes and accounts receivable –¥－¥23,613¥－¥23,613

Total Assets¥－¥23,613¥－¥23,613Long-term debt including current portion¥－¥3,808¥－¥3,808

Total Liabilities¥－¥3,808¥－¥3,808trade, and contract assets

Year ended March 31, 2022

Thousands of U.S. dollars
Level 2

Level 1

Level 3

Total

Notes and accounts receivable –$－$192,936$－$192,936

Total Assets$－$192,936$－$192,936

Long-term debt including current portion$－$31,116$－$31,116

Total Liabilities$－$31,116$－$31,116

trade, and contract assets

21Note: Explanation of valuation techniques and valuation inputs used in fair value measurements
Investment securities
Fair values of listed shares for which quoted market prices in active markets are available are categorized as Level 1.
Derivative Transaction
Fair values of foreign exchange contracts is calculated based on quoted financial institutions and categorized as Level 2.
Notes and accounts receivable - trade, and contract assets
Fair value of notes and accounts receivable – trade, and contract assets is determined by discounting classified based on
certain terms and estimated amount to be received which reflects credit risk, using highly secure interest rates for theremaining period except for those are settled in the short terms. These fair values are categorized as Level 2.
Long-term debt including current portion
Fair value of long-term debt is determined based on the present value of the principal and interest, discounted by theinterest rate that would be applied if similar new borrowings were entered into. These fair values are categorized as Level 2.

21. Securities
Information regarding marketable securities classified as other securities included in investment securities were as follows:
Millions of yen

Year ended March 31, 2022
Equity securities

Acquisition cost

Carrying value

Unrealized gains¥2,008¥8,183¥6,174¥2,008¥8,183¥6,174

Millions of yen

Year ended March 31, 2021
Equity securities

Acquisition cost

Carrying value

Unrealized gains¥2,196¥7,513¥5,316¥2,196¥7,513¥5,316

Thousands of U.S. dollars

Year ended March 31, 2022
Equity securities

Acquisition cost

Carrying value

Unrealized gains$16,415$66,861$50,446$16,415$66,861$50,446

Proceeds from sales and gain on sales of investment securities classified as other securities were ¥204 million ($1,671
thousand) and ¥25 million ($208 thousand) for the year ended March 31, 2022, and ¥320 million and ¥132 million for theyear ended March 31, 2021, respectively. Proceeds from sales and loss of investment securities classified as other securitieswas ¥5 million ($44 thousand) and ¥3 million ($25 thousand) for the year ended March 31, 2022.
Loss on valuation of shares of subsidiaries and affiliates classified as other securities were ¥307 million ($2,514 thousand)for the year ended March 31, 2022, and ¥35 million for the year ended March 31, 2021, respectively. In the recognition ofloss on valuation, writing down the carrying value to fair value when the decline in fair value is deemed to be unrecoverable
considering the financial position of the issuers of the securities.
Loss on valuation of investment securities classified as other securities was ¥17 million ($145 thousand) for the year ended
March 31, 2022. In the recognition of loss on valuation, total impairment is recognized when the fair value at the end of the
fiscal year has fallen below 50% of the acquisition cost. When the fair value has fallen between 30% and 50%, an impairmentof the amount deemed by taking into account recoverability etc. is recognized.
Non-marketable equity securities classified as other securities primarily consist of ¥66 million ($543 thousand) and ¥84
million as of March 31, 2022 and 2021, respectively.

2222. Derivative Financial Instruments
The Companies have entered into derivative transactions (foreign exchange contracts) in order to manage certain risks
arising from adverse fluctuations in foreign currency exchange rates. The Company does not hold or issue derivative
financial instruments for the purpose of speculative trading. Derivative transactions are entered into by the Finance
Department under the rules approved by the Board of Directors. Derivative transactions are evaluated by the Corporate
Auditing Office.
Derivatives for which hedge accounting is not adopted at March 31, 2022 and 2021 were as follows:Year ended March 31, 2022

Millions of yen
Hedged item

Contract amountContract amountdue after one year

Unrealized gain
(loss)

Fair value

Forward foreign currency exchange contracts:
Foreign exchange contracts:
Sell: U.S. dollars

Accounts receivable

¥18

¥－

¥(0)

¥(0)

Buy: Japanese yen

Accounts payable

390

－

(28)

(28)

¥408

¥－

¥(28)

¥(28)

Total
Year ended March 31, 2021

Millions of yen
Hedged item

Contract amountContract amountdue after one year

Unrealized gain
(loss)

Fair value

Forward foreign currency exchange contracts:
Foreign exchange contracts:
Sell: U.S. dollars

Accounts receivable

¥－

¥－

¥－

¥－

Buy: Japanese yen

Accounts payable

181

－

(4)

(4)

¥181

¥－

¥(4)

¥(4)

Total
Year ended March 31, 2022

Thousands of U.S. dollars
Hedged item

Contract amountContract amountdue after one year

Unrealized gain
(loss)

Fair value

Forward foreign currency exchange contracts:
Foreign exchange contracts:
Sell: U.S. dollars
Buy: Japanese yen

Accounts receivable
Accounts payable

Total

23

$151

$－

3,189

－

(231)

(231)

$3,340$－$(233)$(233)$(2)$(2)

Derivatives for which hedge accounting is adopted at March 31, 2022 and 2021 were as follows:
Millions of yen
Year ended March 31, 2022
Hedged item

Contract amountContract amountdue after one year

Fair value

Accounted for by the deferred hedge method:
Foreign exchange contracts:
Sell: U.S. dollars

Accounts receivable

¥－

¥－

¥－

Buy: U.S. dollars

Accounts payable

－

－

－

Sell: U.S. dollars

Accounts receivable

3,212

－

*

Buy: U.S. dollars

Accounts payable

－

－

－

¥3,212¥－¥－

Accounted for by the allocation method:
Foreign exchange contracts:

Total

Millions of yen

Year ended March 31, 2021
Hedged item

Contract amountContract amountdue after one year

Fair value

Accounted for by the deferred hedge method:
Foreign exchange contracts:
Sell: U.S. dollars

Accounts receivable

¥－

¥－

¥－

Buy: U.S. dollars

Accounts payable

－

－

－

Sell: U.S. dollars

Accounts receivable

1,525

－

*

Buy: U.S. dollars

Accounts payable

－

－

－

¥1,525¥－¥－

Accounted for by the allocation method:
Foreign exchange contracts:

Total

Thousands of U.S. dollars

Year ended March 31, 2022
Hedged item

Contract amountContract amountdue after one year

Fair value

Accounted for by the deferred hedge method:
Foreign exchange contracts:
Sell: U.S. dollars

Accounts receivable

$－

$－

$－

Buy: U.S. dollars

Accounts payable

－

－

－

$26,245

－

*

－

－

－

$26,245$－$－

Accounted for by the allocation method:
Foreign exchange contracts:
Sell: U.S. dollars
Buy: U.S. dollars

Accounts receivable
Accounts payable

Total
Note:

Foreign exchange contracts are accounted for using the allocation method, which is accepted under JGAAP as ashort cut method for foreign currency translation, as part of the accounts receivable and accounts payable.
Therefore, the fair value of foreign exchange contracts is included in the fair value of the underlying accounts
receivable.

2423. Employees’ Retirement Benefits(a) Overview
The Company and certain subsidiaries have funded defined benefit plans, i.e., lump-sum payment plans and defined
benefit pension plans, and defined contribution plans for employees. Certain overseas subsidiaries have unfunded defined
benefit plans for benefit payments to their employees.
Certain domestic subsidiaries participate in multiemployer pension plans. Multiemployer pension plans, in which pension
assets belonging to the Companies are not reasonably determinable, are accounted for as if those are defined contributionplans.
Certain domestic consolidated subsidiaries have adopted the simplified method in calculating their projected benefit
obligation.
(b) Defined benefit plans①The changes in the retirement benefit obligation during the years ended March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2021

2022

¥13,362¥14,457$109,177

Service cost

820

898

6,703

Interest cost

0

0

6

Actuarial gain or loss

(112)

(46)

(920)

Retirement benefit paid

(780)

(1,949)(6,378)¥13,290¥13,362$108,587

Retirement benefit obligation at beginning of year

Retirement benefit obligation at end of year

②The changes in pension plan assets during the year ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Pension plan assets at beginning of year

¥4,843¥4,687$39,575

Expected return on pension plan assets

56

58

464

Actuarial gain or loss

21

386

174

Contribution by the Companies

176

185

1,440

Retirement benefit paid

(162)

(475)

(1,329)¥4,935¥4,843$40,324

Pension plan assets at end of year

③The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance
sheet as of March 31, 2022 and 2021 for the defined benefit plans
Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Funded retirement benefit obligation¥4,686¥4,575$38,290

Pension plan assets at fair value(4,935)(4,843)(40,324)

(248)

(268)

(2,034)

8,603

8,786

70,297

8,354

8,518

68,263

8,354

8,518

68,263¥8,354¥8,518$68,263

Unfunded retirement benefit obligation
Net retirement benefit liability recognizedin the consolidated balance sheet
Retirement benefit liability
Net retirement benefit liability recognizedin the consolidated balance sheet

25

④The components of retirement benefit expense for the years ended March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022
Service cost

2021
¥820

Interest assets

2022
¥898

$6,7030

0

6Expected return on pension assets

(56)

(58)

(464)

Actuarial gain or loss

140

200

1,145

Retirement benefit expense¥904¥1,040$7,390Note:

Other than the retirement benefit expense above, ¥264 million is posted in extra retirement payments under otherexpenses and losses for the years ended March 31, 2021.

⑤Remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for the years ended
March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Actuarial gain or loss

¥273

¥632

$2,238

Total

¥273

¥632

$2,238⑥Remeasurements of defined benefit plans included in accumulated other comprehensive income (before tax effect) as ofMarch 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Unrecognized actuarial loss

¥259

¥533

$2,117

Total

¥259

¥533

$2,117⑦The fair value of pension plan assets, by major category, as a percentage of total plan assets as of March 31, 2022 and2021 were as follows:
2022

2021

Domestic bonds

51%

52%

Domestic equity securities

13

12

Foreign bonds

14

14

Foreign equity securities

13

13

Insurance assets (General accounts)

7

7

Other

2

2

Total

100%

100%

The expected return on pension plan assets has been estimated based on the anticipated allocation to each asset classand the expected long-term returns on assets held in each category.
⑧The assumptions used in accounting for the above plans were as follows:
2022

2021

Discount rate

0.1%

0.0%

Expected rate of return on pension plan assets

0.8

1.2

Expected rate of salary increase

9.0

9.4

The expected rate of salary increase was the rate of increase points calculated using the age specific index of the expected
rate of salary increase under the retirement benefits point system.

26

(c) Defined contribution plans
The required contributions to defined contribution plans of the Company and certain domestic consolidated subsidiaries
for the years ended March 31, 2022 and 2021 were ¥152 million ($1,246 thousand) and ¥159 million, respectively.
(d) Multiemployer pension plans
The required contributions to the multiemployer pension plans for the years ended March 31, 2022 and 2021 were ¥27
million ($222 thousand) and ¥30 million, respectively.
①Funded status of the multiemployer pension plans as of the most recent calculation dates
Thousands of
U.S. dollars

Millions of yen
2022
Amount of pension assets

2021

2022

¥129,661¥119,769$1,059,409

132,336

136,406

1,081,269¥(2,675)¥(16,637)$(21,860)

Total amount of actuarial obligations and minimum reservein the pension financial calculation (Note)
Difference

Note: This item was presented as “Amount of obligations” in the previous fiscal year.
②The Companies’ portion of contributions in multiemployer pension plans
2022

2021

The Companies’ portionin the total contributions of the multiemployer plans

0.571%

0.630%The difference above was principally attributable to the differences in retained earnings of ¥－ million ($－ thousand)and ¥(4,405) million in the pension financial calculation, at March 31, 2022 and 2021, respectively special reserve of ¥10,143
million ($82,881 thousand) and ¥2,524 million at March 31, 2022 and 2021 and unrecognized prior service cost of ¥12,819
million ($104,741 thousand) and ¥14,756 million at March 31, 2022 and 2021, respectively.
Prior service cost of the plans is amortized by the straight-line method over 20 years. The Companies paid and recognizedpremium contributions of ¥24 million ($197 thousand) and ¥27 million for amortization of prior service cost in the
consolidated financial statements for the years ended March 31, 2022 and 2021, respectively.
The Companies’ portion of contributions described above was not equal to the actual share to be allocated to theCompanies.

27

24. Income Taxes
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries generally comprise
corporation, enterprise and prefectural and municipal inhabitants taxes. The statutory tax rates for both years ended March
31, 2022 and 2021 were approximately 29.9%, respectively.
The reconciliation between the statutory tax rate and effective tax rate for the years ended March 31, 2022 and 2021 wereas follows:
2022

2021

Statutory tax rate

29.9%

29.9%

Per-capita portion of inhabitant tax

0.9

13.1

Permanently non-deductible expenses

0.5

2.3

Permanently non-taxable revenue such as dividends income(0.7)(29.0)

Change in valuation allowance(5.3)

1,087.5

Effects of elimination in consolidation

0.2

2.4

Difference in statutory tax rates for foreign subsidiaries

(0.2)

5.0

Expiration of loss carryforward

0.6

41.1

Tax on pensions

6.3

18.4

Effects of Accounting policy changes(20.9)－

Others

(2.6)

11.2

Effective tax rate

8.7%

1,181.9%The significant components of deferred tax assets and liabilities at March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2021

2022

Deferred tax assets:
Tax loss carry forwards (Note)¥1,884¥1,932$15,398

439

402

3,594

Net defined benefit liability

2,430

2,347

19,860Devaluation of inventories

905

906

7,395

Unrealized intercompany profit on inventories

603

341

4,934

Provision for bonuses

580

375

4,742

Devaluation of securities

256

175

2,097

Enterprise taxes payable

90

24

737

1,539

1,715

12,577¥8,730¥8,220$71,333

Valuation allowance of tax loss carry forwards(1,436)(1,904)(11,733)

Valuation allowance of deductible temporary difference(4,158)(3,907)(33,975)

Subtotal Valuation allowance(5,594)(5,812)(45,708)

Net deferred tax assets¥3,136¥2,408$25,624Deferral of gain on sale of fixed assets

(80)

(84)

(660)

Unrealized holding gain on securities(1,823)(1,567)(14,897)

Allowance for doubtful receivables

Other
Total deferred tax assets

Deferred tax liabilities:

Asset retirement obligations

(104)

(24)

(852)

Foreign consolidated subsidiaries’ retained earnings

(983)

(728)

(8,038)Enterprise taxes receivable

(0)

(126)

(1)

Others

(18)

(38)

(154)

¥(3,011)¥(2,569)$(24,602)¥125¥(160)$1,022

Total deferred tax liabilities
Net deferred tax assets

28Note:

A breakdown of tax loss carryforwards and valuation allowance by expiry date as of March 31, 2022 and 2021 wereas follows:
Millions of yen

Tax loss carryforwards

Due in one
years or lessDue after one
year throughtwo years

¥34

¥19

2022
Due after two Due after three Due after four
year through year through year through After five years
three years
four years
five years
¥28

¥23

Total

¥17

¥1,760¥1,884

Valuation allowance

(34)

(19)

(28)

(23)

(17)

(1,311)(1,436)

Deferred tax assets

¥－

¥－

¥－

¥－

¥－

¥448

¥448

Millions of yen
2021
Due after two Due after three Due after four
year through year through year through After five years
three years
four years
five years

Due in one
years or lessDue after one
year throughtwo years

Tax loss carryforwards

¥65

¥17

¥19

¥51

¥45

¥1,733¥1,932

Valuation allowance

(65)

(17)

(19)

(51)

(45)

(1,705)(1,904)

Deferred tax assets

¥－

¥－

¥－

¥－

¥－

¥28

¥28

Total

Thousands of U.S. dollars
2022
Due after two Due after three Due after four
year through year through year through After five years
three years
four years
five years

Due in one
years or lessDue after one
year throughtwo years

Tax loss carryforwards

$284

$162

$232

$191

$146

$14,383$15,398

Valuation allowance

(284)

(162)

(232)

(191)

(146)

(10,719)(11,733)

Deferred tax assets

$－

$－

$－

$－

$－

$3,664$3,664

25. Asset Retirement Obligations
This disclosure has been omitted for the year ended March 31, 2022 based on immateriality.

26. Rental Property
This disclosure has been omitted for the year ended March 31, 2022 based on immateriality.

29

Total

27. Revenue(a) Breakdown of revenue from contracts with customers
Sales revenue breakdown by destination (location of external customers) and relationships between sales revenue
breakdown and each business segment for the year ended March 31, 2022 are as follows:Year ended
March 31, 2022

Millions of yen
Reportable segments
Molding
MachineryControl
Systems

Machine Tools

Sub total

Other Products

Total

Japan

¥18,685¥11,161¥5,671¥35,517¥972¥36,490

United states

11,2992,706

55

14,0610

14,062

China

22,747

7,411

1,414

31,573－31,573

Other Asia

19,525

1,669

444

21,6391

21,640

3,297

623

82

4,003

6

4,010

¥75,554¥23,572¥7,669¥106,796¥981¥107,777

Revenue from other sources

¥－

¥－

¥－

¥－

¥－

¥－

Sales to external customers¥75,554¥23,572¥7,669¥106,796¥981¥107,777

Other
Revenue from contracts
with customers

Year ended
March 31, 2022

Thousands of U.S. dollars
Reportable segments
Molding
MachineryJapan

Control
Systems

Machine Tools

Sub total

Other Products

Total$152,670$91,193$46,340$290,203$7,949$298,152

United states

92,324

22,113455

114,8924

114,895

China

185,859

60,56011,557257,976－

257,976

Other Asia

159,531

13,643

3,633

176,80712

176,819

26,944

5,095

676

32,71552

32,767$617,329$192,604$62,661$872,593$8,017$880,611

Revenue from other sources

$－

$－

$－

$－

$－

$－

Sales to external customers$617,329$192,604$62,661$872,593$8,017$880,611

Other
Revenue from contracts
with customers

Note:“Other products” is a business segment that is not included in the reportable segments. It included businessactivities related to casting, machining and environmental measurements, etc.

(b) Underlying information in understanding revenue from contracts with customers
Underlying information in understanding revenue is as presented in Note 2, “Summary of Significant Accounting Policies”,“(o) Method of significant revenue and expense recognition standards.”

30

(c) Reconciliation of satisfaction of performance obligations within contracts with customers and cash flows
arising from such contracts, and the amount and timing of revenue arising from contracts with customers
existing at the end of the fiscal year expected to be recognized in and after the following fiscal year
①Balance of contract assets and contract liabilities, etc.
Millions of yen

Year ended March 31, 2022

Beginning balance
Receivables arising from contracts with customers

Ending balance¥19,812¥22,618

Contract assets

1,985

995

Contract liabilities

18,59028,887

Thousands of U.S. dollars

Year ended March 31, 2022

Beginning balance
Receivables arising from contracts with customers

Ending balance$161,877$184,805

Contract assets

16,226

8,131

Contract liabilities

151,898

236,032

Contract liabilities are mainly advances received from customers in relation to product purchases and are reversed uponrecognition of revenue. Revenue recognized in the fiscal year ended March 31, 2022 and included in the contract liability
balance at the beginning of the fiscal year amounted to ¥16,601 million. ($135,642 thousand).
The amount of revenue recognized in the fiscal year ended March 31, 2022 from performance obligations that weresatisfied (or partially satisfied) in previous fiscal years is immaterial.
②Transaction price allocated to the remaining performance obligations
The total transaction price allocated to the remaining performance obligations and the time frame the Companies expect
to recognize the amount as revenue are as follows:
Millions of yen

Thousands of
U.S. dollars

2022

2022

Due in one years or less

¥93,460$763,630

Due after one year through two years

46,670381,325

Due after two year through three years

657

5,373

1

12

¥140,790$1,150,340

More than three years
Total

28. Segment Information(a) General information on reportable segments
The reportable segments of the Companies are the business units for which the Company is able to obtain respective
financial information separately in order for Board of Directors to conduct periodic assessments to determine distribution ofmanagement resources and evaluate their business results.
The Companies’ business is classified into certain segments based on the types of products and services. The Companies’
segments are categorized into the following three reportable segments: “Molding Machinery”, “Machine Tools” and “Control
Systems” based on the similarities of the economic nature, type of business and manufacturing method:
Molding Machinery:

Injection molding machines, Die casting machines, Plastic extrusion

Machine Tools:

Large size machine tools, Portal type machine tools, Machining centers, Horizontal boringmachines, High-precision machines

Control Systems:

Controller, Industrial robot, Servo motor, Servo amplifier(b) Basis of measurement for reportable segment profit or loss, segment assets and other material items
The accounting treatment for the reportable business segments is generally the same as described in Note 2, “Summaryof Significant Accounting Policies.” Reportable segment income is calculated on the basis of operating income. The prices ofintersegment transactions and transfers are calculated based on the market prices.

31

(c) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2022 and 2021 were as follows:Year ended
March 31, 2022

Millions of yen
Reportable segments
Molding
Machinery

Net sales:
Externalcustomers

Machine
Tools

Control
Systems

Sub total

Other
Products

Total

Adjustments Consolidated¥75,554¥23,572¥7,669¥106,796¥981¥107,777¥－¥107,777

－

47

1,550

1,598

372

1,971

(1,971)－

Total

75,554

23,6209,219

108,395

1,354

109,749(1,971)

107,777

Segment income¥3,683¥7¥425¥4,117¥78¥4,196¥40¥4,236

Segment assets¥91,097¥29,612¥11,313¥132,023¥3,759¥135,782¥31,207¥166,989¥1,231¥525¥171¥1,928¥24¥1,952¥－¥1,952

958

246

46

1,252

557

1,810

－

1,810

Inter-segment

OthersDepreciation
Capitalexpenditures
Year ended
March 31, 2021

Millions of yen
Reportable segments
Molding
Machinery

Net sales:
Externalcustomers

Machine
Tools

Control
Systems

Sub total

Other
Products

Total

Adjustments Consolidated¥64,308¥20,866¥5,838¥91,014¥1,620¥92,635¥－¥92,635

－

19

1,555

1,575

405

1,980

(1,980)－Total

64,30820,886

7,394

92,5892,026

94,615(1,980)92,635

Segment income¥1,157¥(828)

¥(39)

¥289

¥35

¥325

¥56

¥381

Segment assets¥67,308¥29,191¥9,254¥105,754¥4,762¥110,516¥23,779¥134,296¥1,045¥479¥186¥1,711¥44¥1,755¥－¥1,755

510

181

242

935

863

1,799

－

1,799

Inter-segment

OthersDepreciation
Capitalexpenditures
Year ended
March 31, 2022

Thousands of U.S. dollars
Reportable segments
Molding
Machinery

Net sales:
Externalcustomers

Machine
Tools

Control
Systems

Sub total

Other
Products

Total

Adjustments Consolidated$617,329$192,604$62,661$872,593$8,017$880,611$－$880,611－

390

12,672

13,062

3,048

16,109(16,109)－

Total

617,329

192,994

75,333885,655

11,065896,720(16,109)880,611

Segment income$30,097$64$3,481$33,641$644$34,285$330$34,615

Segment assets$744,321$241,948$92,440$1,078,709$30,714$1,109,423$254,986$1,364,409$10,063$4,297$1,399$15,759$198$15,957$－$15,957

7,834

2,016

383

10,233

4,556

14,789－14,789Inter-segment

OthersDepreciation
Capitalexpenditures

Note:“Other products” is a business segment that is not included in the reportable segments. It included businessactivities related to casting, machining and environmental measurements, etc.
32

(d) Difference between total reportable segments and consolidated financial statements
The main differences between total reportable segments and consolidated financial statements for the years ended March
31, 2022 and 2021 were as follows:
Sales

Thousands of
U.S. dollars

Millions of yen
2022

Total reportable segments

2021

2022

¥108,395¥92,589$885,655

Other products

1,354

2,026

11,065

Eliminations(1,971)(1,980)(16,109)¥107,777¥92,635$880,611

Net sales in the consolidated financial statements
IncomeThousands of
U.S. dollars

Millions of yen
2022

Total reportable segments

2021

2022

¥4,117¥289$33,641

Other products

78

35

644

Eliminations

40

56

330

¥4,236¥381$34,615

Operating income in the consolidated financial statements
AssetsThousands of
U.S. dollars

Millions of yen
2022

Total reportable segments

2021¥132,023

2022¥105,754$1,078,709

Other products

3,759

4,762

30,714Company-wide assets

31,474

24,126257,169

(267)

(347)

(2,183)¥166,989¥134,296$1,364,409

Eliminations
Net assets in the consolidated financial statements
Note:

Company-wide assets are mainly cash and cash equivalents, securities and investment securities that are notallocated to the reportable segments.

(e) Other information①Information on products and services
Information on products and services is not disclosed because reportable segment information is based on products andservices.
②Information on geographical areas
Sales information by country or geographical areas for the years ended March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2021

2022

Japan

¥36,490¥40,850$298,152

United States

14,062

12,042

114,895

China

31,573

21,976257,976

Other Asia

21,64014,093

176,819

Other

4,010

3,671

32,767

Total¥107,777¥92,635$880,611

Note:

Sales figures are classified based on customer locations.

33

Property, plant and equipment information by country or geographical areas as of March 31, 2022 and 2021 were as
follows:
Thousands of
U.S. dollars

Millions of yen
2022
Japan

2021

¥18,453

North America

2022¥18,214$150,776

181

175

1,480

Asia

2,511

2,369

20,522

Total¥21,146¥20,758$172,778③Information on major customers
Information on major customers is not disclosed, because net sales to any customer did not exceed 10% of theconsolidated net sales for the years ended March 31, 2022 and 2021.
(f)

Information on impairment loss on fixed assets for each reportable segment

Information on impairment loss on long-lived assets for the years ended March 31, 2022 and 2021 were as follows:
Thousands ofMillions of yen
U.S. dollars
2022

2021

2022

Molding Machinery

¥－

¥371

$－

Machine Tools

－

－

－

Control Systems

－

－

－

Other products

－

－

－

Adjustments

40

－

331

Total

¥40

¥371

$331

(g) Information on amortization of goodwill and unamortized balance for each reportable segment
There was no amortization of goodwill for the year ended March 31, 2022 and 2021.
(h) Information on gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2022 and 2021.

29. Related Party Transactions(a) Transactions with related parties
This disclosure has been omitted for the year ended March 31, 2022 and 2021 based on immateriality.
(b) Summary of financial information for significant affiliate company
There was no applicable matter for the years ended March 31, 2022 and 2021.

34

30. Net Income and Net Assets per Share
Net income and net assets per share as of and for the years ended March 31, 2022 and 2021 were as follows:
Yen
2022

U.S. dollars
2021

2022

Net income (loss) per share¥154.27¥(120.05)$1.26

Net assets per share

3,457.58

3,402.36

28.25

Basic information for the calculation of net income per share was as follows:
Thousands of shares
2022
Weighted-average number of shares of common stock

2021

24,151

24,141Thousands of
U.S. dollars

Millions of yen
2022
Net income (loss)

2022¥3,725¥(2,898)$30,442－－－¥3,725¥(2,898)$30,442

Net income not applicable to shareholders of common stock
Net income (loss) applicable to shareholders of common stock

2021

Basic information for the calculation of net income per share was as follows:
Thousands of shares
2022
Number of shares at year-end

2021

24,154

24,145
Thousands of
U.S. dollars

Millions of yen
2022
Net assets
Non-controlling interests in consolidated subsidiaries
Net assets applicable to shareholders of common stock

2021

2022

¥83,515¥82,152$682,374－－－¥83,515¥82,152$682,374

The Company has adopted the “Application of Accounting Standard for Revenue Recognition, etc.” as described in Note 5,“Accounting Changes”. As a result of this change, net asset per share decreased by ¥105.99 ($0.87) and net income pershare increased by ¥20.70 ($0.17) for the year ended March 31, 2022.

35

31. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding as of March 31, 2022 and 2021 ranged
principally from 0.49% to 3.62% and 0.50% to 0.58%, respectively. Long-term debt as of March 31, 2022 and 2021 consistedof the following:Thousands of
U.S. dollars

Millions of yen
2022

2021

2022

Loans, principally from Japanese banks and insurance companies:
maturing 2023, interest 0.53% - 0.85%
Less current portion¥3,800¥4,300$31,048

3,300

4,300

31,048

500

500

4,085

¥3,300¥3,800$26,963

The aggregate annual maturities of long-term debt at March 31, 2022 were as follows:Year ending March 31

Millions of yen

Thousands of
U.S. dollars

2023

¥500

$4,085

2024

3,300

26,963

2025

－

－

2026

－

－

2027 and later－－¥3,800$31,048

Total

The aggregate annual maturities of finance lease obligations at March 31, 2022 were as follows:
Thousands ofYear ending March 31
Millions of yen
U.S. dollars
2023

¥94

$772

2024

71

584

2025

36

298

2026

18

151

2027 and later

15

128

¥236

$1,934Total

32. Subsequent Event
Cash dividends
The following appropriation of retained earnings, which has not been reflected in the accompanying consolidated
financial statements for the year ended March 31, 2022, was approved at the meeting of the Board of Directors held on May
26, 2022.
Type of shares
Meeting of the Board of
Directors held on May 26, 2022

Common stock

Cash dividends

Cash dividends
per share¥905¥37.50($7,401)($0.31)

36

Record date

Effective date

March 31, 2022

June 16, 2022