Toa Valve Engineering Inc.
and Subsidiaries
Consolidated Financial Statements andRelated Notes for the Year Ended September 30, 2019
and Independent Auditor's ReportToa Valve Engineering Inc. and Subsidiaries
Consolidated Balance Sheet
As of September 30, 2019 and 2018

Millions of Yen
2019
2018

ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 11)
Receivables (Note 11):
Trade notes
Electronically recorded claims
Trade accounts
Other
Inventories (Note 4)
Prepaid expenses and other current assets
Total current assets
PROPERTY, PLANT, AND EQUIPMENT (Note 5):Land
Buildings and structures
Machinery and equipment
Furniture and fixtures
Leased assets
Construction in progress
Total property, plant, and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 3 and 11)
SoftwareLeased assets
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets

Thousands of
U.S. Dollars(Note 1)2019

CURRENT LIABILITIES:Current portion of long-term debts (Notes 5, 10, and 11)
Payables (Note 11):
Trade notes
Electronically recorded obligations
Trade accounts
Other
Income taxes payable (Note 11)
Allowance for losses on contracts
Accrued expenses
Other current liabilities¥ 3,330¥ 2,718$ 30,834

272
86
2,863
5
2,210
75

377
157
3,410
2
1,665
62

2,517
795
26,51250
20,464
685

8,841

8,391

81,857

261
487
442
48
74
29

261
465
520
45
14
7

2,420
4,504
4,096
447
685
270

LONG-TERM LIABILITIES:Long-term debts (Notes 5, 10, and 11)
Liability for retirement benefits (Note 6)
Deferred tax liabilities (Note 8)
Other long-term liabilities

1,341

1,312

12,422

Total long-term liabilities

934
189
68
256
84
(11 )

768
212
24
3
76
(11 )

8,649
1,746
633
2,370
776
(99 )

1,520

1,072

14,075

Total current liabilities

¥

114

¥

97

$

1,056

343
115
368
236
172
452
497
56

229
97
273
239
76
321
483
96

3,180
1,064
3,403
2,186
1,594
4,182
4,602
516

2,353

1,911

21,783

315
727

2,918
6,729

14

41
752
135
96

1,056

1,024

9,782

1,740
2,013
5,019

1,740
2,018
4,386

16,107
18,63746,482(656 )(671 )(6,071 )

194
2
(19 )
8,293
0

328
16
(47 )
7,770
70

1,795
18
(181 )
76,787
2

8,293

7,840

76,789¥ 11,702¥ 10,775$ 108,354

135

COMMITMENTS AND CONTINGENT LIABILITIES (Notes 10 and 12)
EQUITY (Note 7):
Common stock – authorized, 10,040,000 shares;
issued, 2,678,600 shares in 2019 and 2018
Capital surplus
Retained earnings (Note 14)
Treasury stock – at cost, 394,677 shares in 2019 and 403,994
shares in 2018
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans
Total
Non-controlling interests
Total equity

TOTAL

Millions of Yen
2019
2018

LIABILITIES AND EQUITY

Thousands of
U.S. Dollars(Note 1)
2019

¥ 11,702¥ 10,775$ 108,354

TOTAL

See notes to consolidated financial statements.

-3-

Toa Valve Engineering Inc. and Subsidiaries
Consolidated Income Statement
For the Years Ended September 30, 2019 and 2018

Millions of Yen
2019
2018
SALES

Thousands of
U.S. Dollars(Note 1)
2019

¥ 8,239¥ 8,105$ 76,288

6,157

6,151

57,006

2,082

1,954

19,282

1,561

1,409

14,460Operating income

521

545

4,822

OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Loss on disposal of property, plant, and equipment
Other – net

28
(2 )
(2 )
28

22
(2 )
(2 )
17

258
(19 )
(23 )
272

Other income – net

52

35

488

INCOME BEFORE INCOME TAXES

573

580

5,310

INCOME TAXES (Note 8):
Current tax credit
Deferred tax charge (credit)

188(329 )

871

1,740(3,043 )(141 )

88(1,303 )

714

492

6,613

NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLINGINTERESTS

(0 )

12

(2 )

NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

¥ 714

¥ 480

$ 6,615

2019

2018

U.S. Dollars
2019

¥313
40

¥211
35

$2.90
0.37

COST OF SALES
Gross profit
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES(Note 9)Total income taxes
NET INCOMEYen

PER SHARE OF COMMON STOCK (Note 2.p):
Basic net income
Cash dividends applicable to the year

See notes to consolidated financial statements.

-4-

Toa Valve Engineering Inc. and Subsidiaries
Consolidated Statement of Comprehensive Income
For the Years Ended September 30, 2019 and 2018

Millions of Yen
2019
2018
NET INCOME

Thousands of
U.S. Dollars(Note 1)
2019

¥ 714

¥ 492

$ 6,613

OTHER COMPREHENSIVE INCOME (LOSS) (Note 12):
Unrealized (loss) gain on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans(134 )
(14 )
27

28
(0 )
14

(1,243 )(134 )
252

Net other comprehensive (loss) income(121 )

42(1,125 )COMPREHENSIVE INCOME

¥ 593

¥ 534

$ 5,488

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent
Non-controlling interests

¥593
(0 )

¥522
12

$5,489(1 )See notes to consolidated financial statements.

-5-

Toa Valve Engineering Inc. and Subsidiaries
Consolidated Statement of Changes in Equity
For the Years Ended September 30, 2019 and 2018
Shares/Millions of Yen
Common Stock Issued
Treasury Stock

BALANCE, OCTOBER 1, 2017

SharesAmountSharesAmountCapitalSurplusRetained
Earnings

2,678,600¥ 1,740

411,187¥ (683 )¥ 2,020¥ 3,973

Net income attributable to owners of the parent
Cash dividends, ¥30 per share
Purchase of treasury stock
Disposal of treasury stock
Change in unrealized gain on available-for-salesecurities
Change in foreign currency translation
adjustments
Change in defined retirement benefit plans
Change in non-controlling interests
BALANCE, OCTOBER 1, 2018

¥ 300

¥ 17

¥ (61 )

480
(67 )
263
(7,456 )

(0 )
12

(2 )
28
(1 )
14

2,678,600

1,740

Net income attributable to owners of the parent
Cash dividends, ¥40 per share
Purchase of treasury stock
Disposal of treasury stock
Change in unrealized loss on available-for-salesecurities
Change in foreign currency translation
adjustments
Change in defined retirement benefit plans
Change in non-controlling interests
BALANCE, SEPTEMBER 30, 2019

Millions of Yen
Accumulated Other Comprehensive Income
Unrealized
ForeignDefinedGain (Loss) on
Currency
Retirement
Available-for-Sale
Translation
BenefitSecurities
Adjustments
Plans
Total

403,994(671 )

2,018

4,386

328

16

(47 )

714
(81 )
209
(9,526 )

(1 )
16

(5 )
(134 )(14 )28

2,678,600¥ 1,740

394,677¥ (656 )¥ 2,013¥ 5,019

¥ 194

¥

2

¥ (19 )

Non-controlling
Interests

Total Equity¥ 58¥ 7,364¥ 7,306
480
(67 )
(0 )
10

480
(67 )
(0 )
10

28

28

(1 )
14
12

(1 )
14
12

70

7,840

7,770
714
(81 )
(1 )
11

714
(81 )
(1 )
11

(134 )(134 )

(14 )
28
(70 )

(14 )
28
(70 )

0

¥ 8,293¥ 8,293¥

Thousands of U.S. Dollars (Note 1)

BALANCE, OCTOBER 1, 2018

CommonStock Issued

TreasuryStock

AmountAmountCapitalSurplusRetained
Earnings$ 16,107$ (6,215 )$ 18,686$ 40,605

Net income attributable to owners of the parent
Cash dividends, $0.37 per share
Purchase of treasury stock
Disposal of treasury stock
Change in unrealized loss on available-for-sale securities
Change in foreign currency translation adjustments
Change in defined retirement benefit plans
Change in non-controlling interests
BALANCE, SEPTEMBER 30, 2019

Accumulated Other Comprehensive Income
Unrealized
ForeignDefinedGain (Loss) on
Currency
Retirement
Available-for-Sale
Translation
BenefitSecurities
Adjustments
Plans
Total
$ 3,038$ 152$ (432 )$ 71,941

251

6,615
(738 )(2 )97(1,243 )(134 )
2516,615(738 )
(2 )
146

(49 )
(1,243 )(134 )$ 16,107$ (6,071 )$ 18,637

See notes to consolidated financial statements.
-6-$ 46,482$ 1,795$

18$ (181 )$ 76,787

Non-controlling
Interests

Total Equity$ 650$ 72,591(648 )

6,615(738 )(2 )97(1,243 )(134 )
251(648 )

2$ 76,789$

Toa Valve Engineering Inc. and Subsidiaries
Consolidated Cash Flow Statement
For the Years Ended September 30, 2019 and 2018

Millions of Yen
2019
2018
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes – paid
Income taxes – refunded
Depreciation and amortization
Changes in assets and liabilities:
Decrease (increase) in trade receivables(Increase) decrease in inventories
Increase in trade payables
Increase (decrease) in allowance for losses on contracts
Increase (decrease) in liability for retirement benefits(Increase) decrease in advances received
Other – net
Net cash used provided by (used in) operating
activities580$ 5,310(105 )
1
293

(97 )
1
285

(974 )
12
2,711

723
(545 )
227
130
2
(86 )
(45 )

(1,527 )61
9(174 )
(14 )
49
155

6,698
(5,043 )
2,104
1,205
21
(792 )(420 )

1,168(672 )

10,832(360 )(149 )(41 )(10 )(560 )(214 )(137 )
5(346 )(3,335 )(1,382 )(375 )(95 )(5,187 )300(114 )(286 )

2,778(1,059 )

(70 )
(81 )
(1 )
(17 )
17

(68 )
(0 )
(18 )
(372 )(650 )(738 )(2 )(174 )
155

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS

(13 )

(1 )

(132 )NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS

612(1,391 )

5,668

2,718

4,109

25,166¥ 3,330¥ 2,718$ 30,834

INVESTING ACTIVITIES:Payments for purchase of marketable and investment
securities
Payments for purchases of property, plant, and equipment
Payments for purchases of intangible assets
Other
Net cash used in investing activities
FINANCING ACTIVITIES:
Decrease in short-term bank loans – net
Repayments of long-term debt
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Dividends paid
Purchase of treasury stock
Other
Net cash provided by (used in) financing activities

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR

See notes to consolidated financial statements.

-7-

¥

573

¥

Thousands of
U.S. Dollars(Note 1)2019

Toa Valve Engineering Inc. and Subsidiaries
Notes to Consolidated Financial Statements
As of and for the Years Ended September 30, 2019 and 2018
1.

BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related
accounting regulations and in accordance with accounting principles generally accepted in Japan,
which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements
have been made to the consolidated financial statements issued domestically in order to present
them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications
have been made to the 2018 consolidated financial statements to conform to the classifications usedin 2019.
The consolidated financial statements are stated in Japanese yen, the functional and presentation
currency of Toa Valve Engineering Inc. (the "Company"). The translations of Japanese yen amounts
into U.S. dollar amounts are included solely for the convenience of readers outside Japan and havebeen made at the rate of ¥108 to $1, the approximate rate of exchange at September 30, 2019.
Such translations should not be interpreted as representations that the Japanese yen amounts could
be converted into U.S. dollars at that or any other rate.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation – The consolidated financial statements as of September 30, 2019 and 2018,
include the accounts of the Company and all of its subsidiaries (together, the "Group").
All intercompany balances and transactions have been eliminated on consolidation. All material
unrealized profit included in assets resulting from transactions within the Group has also been
eliminated.

b.

Cash Equivalents – Cash equivalents are short-term investments that are readily convertible
into cash and are exposed to an insignificant risk of changes in value.
Cash equivalents include time deposits, certificates of deposit, commercial paper, and bondfunds, all of which mature or become due within three months of the date of acquisition.

c.

Inventories – Inventories are stated at the lower of cost and net selling value (see Note 4).
Cost is determined by the specific identification method for finished products and work inprocess and by the average cost method for raw materials and supplies.

d.

Marketable and Investment Securities – Marketable and investment securities are classified
and accounted for, depending on management's intent, as follows: (1) held-to-maturity debt
securities, for which there is a positive intent and ability to hold to maturity, are reported atamortized cost and (2) available-for-sale securities, which are not classified as either of theaforementioned securities, are reported at fair value, with unrealized gains and losses, net of
applicable taxes, reported in a separate component of equity.
Non-marketable available-for-sale securities are stated at cost, determined by the movingaverage method. For other-than-temporary declines in fair value, investment securities are
reduced to net realizable value by a charge to the income statement.

-8-

e.

Property, Plant, and Equipment – Property, plant, and equipment are stated at cost.
Depreciation of property, plant, and equipment of the Company and its consolidated domestic
subsidiaries is computed substantially by the declining-balance method based on the estimateduseful lives of the assets, except for a foreign subsidiary which uses the straight-line method.
Additionally, the straight-line method is applied to buildings acquired after April 1, 1998, leaseassets, and building improvements and structures acquired on or after April 1, 2016. The range
of useful lives is principally from 28 to 45 years for buildings and structures, from 4 to 12 years
for machinery and equipment, and from 2 to 20 years for furniture and fixtures. The useful lives
for lease assets are the terms of the respective leases.

f.

Long-Lived Assets – The Group reviews its long-lived assets for impairment whenever eventsor changes in circumstance indicate the carrying amount of an asset or cost generating unit("CGU") may not be recoverable. An impairment loss is recognized if the carrying amount of anasset or CGU exceeds the sum of the undiscounted future cash flows expected to result fromthe continued use and eventual disposal of the asset or CGU. The impairment loss would bemeasured as the amount by which the carrying amount of the asset exceeds its recoverable
amount, which is the higher of the discounted cash flows from the continued use and eventual
disposal of the asset or the net selling price at disposal.

g.

Retirement and Pension Plans – The Company and certain consolidated subsidiaries haveseverance payment plans for employees. They are contributory funded defined benefit pension
plans and defined contribution pension plans.
The Company accounts for the liability for retirement benefits based on the projected benefit
obligations and plan assets at the consolidated balance sheet date. The projected benefit
obligations are attributed to periods on a benefit formula basis. Actuarial gains and losses andpast service costs that are yet to be recognized in profit or loss are recognized within equity(accumulated within other comprehensive income), after adjusting for tax effects, and arerecognized in profit or loss over 10 years, no longer than the expected average remaining
service period of the employees. The discount rate is determined using a single weightedaverage discount rate reflecting the estimated timing and amount of benefit payment.

h.

Allowance for Losses on Contracts – To account for losses on contracts for orders received,
an amount is estimated equal to the amount of foreseeable losses that can be reasonably
estimated at the end of the fiscal year.

i.

Asset Retirement Obligations – Asset retirement obligations are recorded for future liabilities,of an uncertain timing or amount, which relate to legal or constructive obligations todecommission or retire an asset. Such obligations typically arise following the acquisition,
construction, development, or normal operation of a tangible fixed asset. The valuation of theasset retirement obligation is calculated as the sum of the discounted cash flows required forcompleting future asset retirement activities and is first recognized in the period in which the
obligation arises, provided that a reasonable estimate can be made. If a reasonable estimate of
the timing and amount of the asset retirement obligation cannot be made in the same period it
arises, the liability is recognized in the first period in which a reliable estimate can be made.
Upon initial recognition of an asset retirement obligation, the income statement expense iscapitalized, thereby increasing the value of the underlying fixed asset. The capitalized expense
is subsequently charged to the income statement via depreciation, thereby matching the useful
economic life of the asset. Over time, the liability is accreted to its present value each period,
with a finance cost recognized in the income statement. Any subsequent revisions to the timing
or amount of the cash flows are recorded as adjustments to the book value of the asset
retirement liability and the corresponding asset.

j.

Research and Development Costs – Research and development costs are charged to theincome statement as they are incurred.

-9-

k.

Leases – In March 2007, the Accounting Standards Board of Japan (ASBJ) issued ASBJ
Statement No. 13, "Accounting Standard for Lease Transactions," which revised the previous
accounting standard for lease transactions. The revised accounting standard for leasetransactions was effective for fiscal years beginning on or after April 1, 2008.
Under the previous accounting standard, finance leases that were deemed to transfer
ownership of the leased property to the lessee were capitalized. However, other finance leases
were permitted to be accounted for as operating lease transactions if certain "as-if-capitalized"
information was disclosed in the notes to the lessee's financial statements.
The Company applied the revised accounting standard effective October 1, 2008.
All other leases are accounted for as operating leases.

l.

Bonuses to Directors – Bonuses to directors are accrued for at the end of the year to which
the Directors' services relate.

m. Income Taxes – The provision for income taxes is calculated based on the 'income before
taxes' included in the consolidated statement of income. The asset and liability approach isused to recognize deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases of assets and liabilities.
Deferred taxes are measured by applying currently enacted income tax rates to the temporary
differences.
On February 16, 2018, the ASBJ issued ASBJ Statement No. 28, "Partial Amendments to
Accounting Standard for Tax Effect Accounting," which requires deferred tax assets to beclassified as investments and other assets. Deferred tax assets were previously classified as
current assets and investments and other assets under the previous accounting standard. The
revised accounting standard is effective for annual periods beginning on or after April 1, 2018.
The Company retrospectively applied the revised accounting standard effective October 1,
2018, and deferred tax assets of ¥3 million, which were previously classified as current assets,
as of September 30, 2018, have been reclassified as investments and other assets in theaccompanying consolidated balance sheet.
n.

Foreign Currency Transactions – All short-term and long-term monetary receivables andpayables denominated in foreign currencies are translated into Japanese yen at the exchange
rates at the balance sheet date. The foreign exchange gains and losses from translation arerecognized in the consolidated statement of income to the extent that they are not hedged byforward exchange contracts.

o.

Foreign Currency Financial Statements – The balance sheet accounts of the consolidated
foreign subsidiary are translated into Japanese yen at the prevailing exchange rate at thebalance sheet date, except for equity accounts, which are translated at the historical rate.
Differences arising on translation are shown as "Foreign currency translation adjustments"
under accumulated other comprehensive income in a separate component of equity. Income
and expense accounts of the foreign subsidiary are translated into yen at the average exchange
rate during the year.

p.

Per Share Information – Basic net income per share is computed by dividing net income
attributable to common shareholders by the weighted-average number of common shares
outstanding for the period.
Cash dividends per share presented in the accompanying consolidated income statement are
dividends applicable to the respective fiscal years, including dividends to be paid after the endof the year.
The weighted-average number of common shares outstanding for the years ended September
30, 2019 and 2018, were 2,280,343 and 2,272,458, respectively.

- 10 -

q.

Accounting Changes and Error Corrections – Under ASBJ Statement No. 24, "AccountingStandard for Accounting Changes and Error Corrections" and ASBJ Guidance No. 24,"Guidance on Accounting Standard for Accounting Changes and Error Corrections," accounting
treatments are required as follows: (1) Changes in Accounting Policies – When a new
accounting policy is applied following revision of an accounting standard, the new policy isapplied retrospectively, unless the revised accounting standard includes specific transitional
provisions, in which case the entity shall comply with the specific transitional provisions.
(2) Changes in Presentation – When the presentation of financial statements is changed, priorperiod financial statements are reclassified in accordance with the new presentation.
(3) Changes in Accounting Estimates – A change in an accounting estimate is accounted for in
the period of the change if the change affects that period only and is accounted forprospectively if the change affects both the period of the change and future periods.
(4) Corrections of Prior-Period Errors – When an error in prior-period financial statements is
discovered, those statements are restated.

r.

New Accounting Pronouncements – On March 30, 2018, the ASBJ issued ASBJ Statement
No. 29, "Accounting Standard for Revenue Recognition," and ASBJ Guidance No. 30,"Implementation Guidance on Accounting Standard for Revenue Recognition." The core
principle of the standard and guidance is that an entity should recognize revenue to depict thetransfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. An entity
should recognize revenue in accordance with that core principle by applying the following steps:
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 accounting standard and guidance are effective for annual periods beginning on or after
April 1, 2021. Earlier application is permitted for annual periods beginning on or after April 1,
2018.
The Company expects to apply the accounting standard and guidance for annual periods
beginning on or after October 1, 2021, and is in the process of measuring the effects of applying
the accounting standard and guidance in future applicable periods.

3

MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of September 30, 2019 and 2018, consisted of thefollowing:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Non-current:
Marketable equity securities
Trust fund investments and other

¥ 908
26

¥ 740
28

$ 8,405
244

Total

¥ 934

¥ 768

$ 8,649

The costs and aggregate fair values of marketable and investment securities at September 30, 2019and 2018, were as follows:

September 30, 2019
Securities classified as:
Available-for-sale:
Equity securities
Other

Cost

¥633
23
- 11 -

Millions of Yen
Unrealized
Unrealized
Gains
Losses¥320
4¥(48 )
(1 )

Fair
Value

¥905
26

September 30, 2018

Cost

Securities classified as:
Available-for-sale:
Equity securities
Other

¥274
23

September 30, 2019

Cost

Securities classified as:
Available-for-sale:
Equity securities
Other$5,863
211

Millions of Yen
Unrealized
Unrealized
Gains
Losses

¥463
7

¥(0 )
(1 )

¥737
28

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses$2,96341$(445 )
(8 )

Fair
Value

Fair
Value

$8,381
244

Investments in equity instruments that do not have a quoted market price were ¥3 million ($24
thousand) and ¥3 million as of September 30, 2019 and 2018, respectively.
4.

INVENTORIESInventories at September 30, 2019 and 2018, consisted of the following:

Millions of Yen
2019
2018

5.

Thousands of
U.S. Dollars
2019

Finished products
Work in process
Raw materials and supplies

¥ 175
1,474
561

¥

54
991
620

$ 1,621
13,648
5,195

Total

¥ 2,210¥ 1,665$ 20,464

SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Long-term debt at September 30, 2019 and 2018, consisted of the following:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Loans from banks and other financial institutions,due serially to 2019 with interest rates of 0.8%:
Collateralized
Unsecured
Lease obligations
Total
Less current portion

¥ 270
13
146
429
(114 )

¥ 96
41
137
(97 )

$ 2,500
118
1,356
3,974
(1,056 )Long-term debt, less current portion

¥ 315

¥ 40

$ 2,918- 12 -

Annual maturities of long-term debt at September 30, 2019, were as follows:
Millions ofYen

Thousands of
U.S. Dollars

2020
2021
2022
2023
2024

¥ 114
93
85
84
53

$ 1,056
858
777
779
504

Total

¥ 429

$ 3,974

Years Ending September 30

The carrying amounts of assets pledged as collateral for the collateralized long-term debt at
September 30, 2019, were as follows:

Property, plant, and equipment – net of accumulated
depreciation

Millions ofYen

Thousands of
U.S. Dollars¥690$6,385General agreements with respective banks provide, as is customary in Japan, that additional
collateral must be provided under certain circumstances if requested by such banks and that certain
banks have the right to offset cash deposited with them against any long-term or short-term debt or
obligation that becomes due and, in case of default and certain other specified events, against allother debt payable to the banks. The Company has never been requested to provide any additional
collateral.
6.

RETIREMENT AND PENSION PLANS
The Company and certain consolidated subsidiaries have severance payment plans for employees.
They are contributory funded defined benefit pension plans and defined contribution pension plans.
Under most circumstances, employees of the Company terminating their employment are entitled toretirement benefits determined based on post, grade, years of service, and certain other factors.
Such retirement benefits are made in the form of a lump-sum severance payment from the Company
and a lump-sum severance payment or annuity payments from a trustee and specified retirement
allowance mutual aid.
Employees of certain consolidated subsidiaries are also entitled to retirement benefits under mostcircumstances. Such retirement benefits are made in the form of a lump-sum severance payment
from the subsidiaries and a lump-sum severance payment or annuity payments from smaller
enterprise retirement allowance mutual aid.
Years Ended September 30, 2019 and 2018
(1) The changes in defined benefit obligation for the years ended September 30, 2019 and 2018
were as follows:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Balance at beginning of year (as restated)
Current service cost
Interest cost
Actuarial losses
Benefits paid

¥ 1,83396
11(17 )(102 )¥ 1,87970
11
16(143 )$ 16,973
887
105(159 )(943 )

Balance at end of year

¥ 1,821¥ 1,833$ 16,863- 13 -

(2) The changes in plan assets for the years ended September 30, 2019 and 2018 were as follows:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Balance at beginning of year
Expected return on plan assets
Actuarial losses
Contributions from the employer
Benefits paid

¥ 1,081
16
(0 )
56
(59 )

¥ 1,099
16
(5 )
56
(85 )

$ 10,014
150
(1 )
521
(550 )

Balance at end of year

¥ 1,094¥ 1,081$ 10,134(3) Reconciliation between the liability recorded in the consolidated balance sheets and thebalances of defined benefit obligation and plan assets was as follows:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Defined benefit obligation
Plan assets
Total
Unfunded defined benefit obligation¥ 1,245(1,094 )151
576¥ 1,280(1,081 )199
553$ 11,529(10,134 )
1,395
5,334

Net liability arising from defined benefit
obligation

¥

¥

$

727

752

Millions of Yen
2019
2018

6,729

Thousands of
U.S. Dollars
2019

Liability for retirement benefits

¥ 727

¥ 752

$ 6,729

Net liability arising from defined benefit
obligation

¥ 727

¥ 752

$ 6,729(4) The components of net periodic benefit costs for the years ended September 30, 2019 and2018 were as follows:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial losses

¥ 96
11
(16 )
10

¥ 70
11
(16 )
35

$ 887
105
(150 )
94

Net periodic benefit costs

¥ 101

¥ 100

$ 936

- 14 -

(5) Amounts recognized in other comprehensive income (before income tax effect) in respect ofdefined retirement benefit plans for the years ended September 30, 2019 and 2018, were as
follows:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Actuarial (gains) losses¥ 27¥ (13 )

$ 252

Total

¥ 27

¥ (13 )$ 252

(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in
respect of defined retirement benefit plans as of September 30, 2019 and 2018, were as
follows:

Millions of Yen
2019
2018

Thousands of
U.S. Dollars
2019

Unrecognized actuarial losses

¥ 19

¥ 47

$ 181

Total

¥ 19

¥ 47

$ 181

(7) Plan assetsa.

Components of plan assets
Plan assets as of September 30, 2019 and 2018, consisted of the following:

b.

2019

2018

General accountSpecial account:
Domestic bonds
Domestic stocks

70 %

70 %

27
3

26
4

Total

100 %

100 %

Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates ofreturn, which are expected currently and in the future from various components of the plan
assets.

(8) Assumptions used for the years ended September 30, 2019 and 2018, were as follows:

Discount rate
Expected rate of return on plan assets

2019

2018

0.6 %
1.5 %

0.6 %
1.5 %

(9) Defined contribution pension plan
Required contributions to the defined contribution pension plan of the Company and certain
consolidated subsidiaries were ¥19 million ($180 thousand) and ¥19 million as at September
30, 2019 and 2018, respectively.

- 15 -

7.

EQUITYJapanese companies are subject to the Companies Act of Japan (the "Companies Act"). The
significant provisions in the Companies Act that affect financial and accounting matters are
summarized below:a.

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders' meeting. Additionally, forcompanies that meet certain criteria including (1) having a board of directors, (2) having
independent auditors, (3) having an audit and supervisory board, and (4) the term of service ofthe directors being prescribed as one year rather than the normal two-year term by their articles
of incorporation, the board of directors may declare dividends (except for dividends in kind) at
any time during the fiscal year if a company has prescribed so in its articles of incorporation.
With respect to the third condition above, the board of directors of companies with (a) board
committees (namely, appointment committee, compensation committee, and audit committee)or (b) an audit and supervisory committee (as implemented under the Companies Act effective
May 1, 2015) may also declare dividends at any time because such companies, by nature, meetthe criteria under the Companies Act. The Company was organized as a company with an audit
and supervisory committee effective December 22, 2016, however, the Company cannot do so
because it does not meet the above criteria.
Semiannual interim dividends may also be paid once a year upon resolution by the board of
directors if the articles of incorporation of a company so stipulate. The Companies Act provides
certain limitations on the amounts available for dividends or the purchase of treasury stock. The
limitation is defined as the amount available for distribution to the shareholders, but the amountof net assets after dividends must be maintained at no less than ¥3 million.

b.

Increases/Decreases and Transfer of Common Stock, Reserve, and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated asa legal reserve (a component of retained earnings) or as additional paid-in capital (a componentof capital surplus), depending on the equity account charged upon the payment of such
dividends, until the aggregate amount of legal reserve and additional paid-in capital equals 25%of the common stock. Under the Companies Act, the total amount of additional paid-in capitaland legal reserve may be reversed without limitation. The Companies Act also provides that
common stock, legal reserve, additional paid-in capital, other capital surplus, and retained
earnings can be transferred among the accounts within equity under certain conditions upon
resolution of the shareholders.

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose ofsuch treasury stock by resolution of the board of directors. The amount of treasury stock
purchased cannot exceed the amount available for distribution to the shareholders, which isdetermined by a specific formula. Under the Companies Act, stock acquisition rights arepresented as a separate component of equity. The Companies Act also provides thatcompanies can purchase both treasury stock acquisition rights and treasury stock. Suchtreasury stock acquisition rights are presented as a separate component of equity or deducted
directly from stock acquisition rights.

8.

INCOME TAXESThe Company and its consolidated domestic subsidiaries are subject to Japanese national and local
income taxes, which, in the aggregate, resulted in normal effective statutory tax rates ofapproximately 30.6% and 30.8% for the years ended September 30, 2019 and 2018, respectively.

- 16 -

The tax effects of significant temporary differences and tax losses carried forward, which resulted indeferred tax assets and liabilities at September 30, 2019 and 2018, were as follows:

Millions of Yen
2019
2018
Deferred tax assets:
Accrued bonuses
Allowance for losses on contracts
Liability for retirement benefits
Property, plant, and equipment
Inventories
Tax losses carried forward
Other
Less valuation allowance
Total

¥ 104
138
216
156
137
30
49
(492 )
338

¥ 100
98
230
164
165
50
49
(847 )
9

Net deferred tax assets

256

Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Total

(82 )
(82 )

(141 )(141 )-¥ (132 )Net deferred tax liabilities¥

Thousands of
U.S. Dollars
2019
$

961
1,279
2,002
1,449
1,266
282
452
(4,566 )
3,125
2,370

(755 )(755 )$-The expiration of tax losses carried forward, the related valuation allowances and the resulting net
deferred tax assets as of September 30, 2019 and 2018, were as follows:

September 30, 2019
Deferred tax assets
relating to tax losses
carried forward
Less valuation
allowances for tax
losses carriedforward
Net deferred tax assets
relating to tax losses
carried forward

1 Yearor LessAfter
1 Yearthrough
2 Years¥ 16

Millions of Yen
After
After
After
2 Years
3 Years
4 Years
throughthroughthrough
3 Years
4 Years
5 Years

After
5 Years

Total

¥ 9

¥ 64

¥ 89

(16 )

(9 )

(64 )

(89 )

¥ 8

¥ 13

¥ 9

¥ 129

¥ 159

(8 )

(13 )

(9 )

(129 )(159 )

September 30, 2018
Deferred tax assets
relating to tax losses
carried forward
Less valuation
allowances for tax
losses carriedforward
Net deferred tax assets
relating to tax losses
carried forward- 17 -

September 30, 2019
Deferred tax assets
relating to tax losses
carried forward
Less valuation
allowances for tax
losses carriedforward
Net deferred tax assets
relating to tax losses
carried forward

1 Yearor LessAfter
1 Yearthrough
2 Years$ 146(146 )

Thousands of U.S. Dollars
After
After
After
2 Years
3 Years
4 Years
throughthroughthrough
3 Years
4 Years
5 Years

After
5 Years

Total

$ 85

$ 598

$ 829

(85 )

(598 )(829 )A reconciliation between the normal effective statutory tax rates and the actual effective tax rates
reflected in the consolidated income statement for the year ended September 30, 2019, with thecorresponding figures for 2018, is as follows:

9.

2019

2018

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Change in valuation allowance for deferred tax assets
Inhabitant tax on per capita basis
Difference in tax rates between foreign subsidiaries
Other – net

30.6 %
2.9(59.4 )
2.6
(0.8 )(0.5 )

30.8 %
3.2(21.3 )
2.7
(0.9 )
0.6

Actual effective tax rate

(24.6 )%

15.1 %RESEARCH AND DEVELOPMENT COSTS
Research and development costs expensed to the income statement were ¥143 million ($1,326
thousand) and ¥44 million for the years ended September 30, 2019 and 2018, respectively.

10.

LEASESThe Group leases certain computer equipment and software.
Total lease payments under finance leases for the years ended September 30, 2019 and 2018, were
¥18 million ($163 thousand) and ¥16 million, respectively.

11.

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group mainly consists of two businesses. One area is the maintenance of valves, for which
the average receivable collection period is a few months. The other area of business is the
manufacture and sale of valves, for which the average receivable collection period iscomparatively longer than for valve maintenance revenue. The Group's investment and financing
operations are governed by the board ratified business plans.
Cash surpluses, if any, are invested in low-risk and highly liquid financial assets. Short-term bankloans are used to finance current operations. Long-term bank loans and leases are used for bothcurrent operations and capital investment. The Group sometimes hedges the risk of floatinginterest rates of long-term bank loans via interest rate swaps.

- 18 -

(2) Nature and Extent of Risks Arising from Financial Instruments and Risk Management for
Financial Instruments
Trade notes and trade accounts receivable are exposed to customer credit risk. However, theGroup trades almost half of its products and services through Japanese major 'sōgō shōsha'(approximate translation is a 'general trading company') which are diversified, stable and areeasily able to trade on credit. The group trades the other half of its products and services withfinancially stable, non-sōgō shōsha companies, such as Japanese plant makers.
Most of the companies the Group trades with are long-term customers whom the Group haveestablished as having relatively low credit risk. The Group conducts effective credit exposure
management with a focus on newer customers. Furthermore, the Group frequently makes useof letters of credit when trading with customers based outside of Japan.
Marketable and investment securities are exposed to market price fluctuations. Marketablesecurities are low-risk and highly liquid money market funds and corporate bonds which will be
redeemed in less than one year. Investment securities consist mainly of equity securities ofcompanies related to the Group's business.
Payment terms of trade notes payable, trade accounts payable, and income taxes payable areless than one year. Short-term bank loans are used to fund current operations and the interest
rate is fixed. Long-term bank loans are used for current operations and equipment investment,
and interest rates are fixed and floating. Payables, short-term bank loans, and long-term bankloans with fixed interest rates are exposed to liquidity risk, which the Group manages by making
monthly collection forecasts and holding a cash surplus.
(3) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in active markets. If a quoted
price is not available, another rational valuation technique is used instead.
(a) Fair value of financial instruments

Carrying
AmountSeptember 30, 2019
Cash and cash equivalents
Receivables:
Trade notes
Electronically recorded monetary claims
Trade accounts
Investment securities
Total
Short-term bank loans
Payables:Trade notes
Electronically recorded obligations
Trade accounts
Income taxes payable
Lease obligations
Long-term debt
Total

- 19 -

Millions of Yen
Fair
Unrealized
Value
Gain/Loss¥ 3,330¥ 3,330

¥

272
86
2,863
931

272
86
2,863
931

¥ 7,482¥ 7,482

¥

¥ 343
115
368
172
146
283

¥ 343
115
368
172
141
281

¥ (5 )(2 )¥ 1,427¥ 1,420¥ (7 )

CarryingAmountSeptember 30, 2018
Cash and cash equivalents
Receivables:
Trade notes
Electronically recorded monetary claims
Trade accounts
Investment securities
Total
Short-term bank loans
Payables:Trade notes
Electronically recorded obligations
Trade accounts
Income taxes payable
Long-term debt
Total

Millions of Yen
Fair
Unrealized
Value
Gain/Loss¥ 2,718¥ 2,718

¥

377
157
3,410
765

377
157
3,410
765

¥ 7,427¥ 7,430

¥

¥ 229
97
273
76
97

¥ 229
97
273
76
96

¥ (1 )

¥ 772

¥ 771

¥ (1 )

Thousands of U.S. Dollars
Carrying
Fair
Unrealized
AmountValue
Gain/Loss

September 30, 2019
Cash and cash equivalents
Receivables:
Trade notes
Electronically recorded monetary claims
Trade accounts
Investment securities
Total
Short-term bank loans
Payables:Trade notes
Electronically recorded obligations
Trade accounts
Income taxes payable
Lease obligations
Long-term debt
Total

$ 30,834$ 30,834

$

2,517
795
26,512
8,625

2,517
795
26,512
8,625$ 69,283$ 69,283$$ 3,180
1,064
3,403
1,594
1,356
2,618

$ 3,180
1,064
3,403
1,594
1,306
2,604

$ (50 )(14 )$ 13,215$ 13,151$ (64 )

Cash, Cash Equivalents, and Receivables
The carrying amounts of cash, cash equivalents, and receivables approximate to their fairvalue because of their short maturities.
Marketable and Investment Securities
The fair values of marketable and investment securities are measured at the quoted market
price of the stock exchange for the equity instruments and at the quoted price obtained
from the financial institution for certain debt instruments. Fair value information formarketable and investment securities by classification is included in Note 4.

- 20 -

Short-Term Bank Loans, Payables, and Income Taxes Payable
The carrying values of short-term bank loans, payables, and income taxes payable
approximate to their fair value because of their short maturities.
Long-Term Debt and Lease Obligations
The fair values of long-term debt and lease obligations are determined by discounting the
cash flows related to the debt at the Group's assumed corporate borrowing rate for the
fiscal year ended September 30, 2019.
(b) Carrying amount of financial instruments whose fair value cannot be reliably determined

Millions of Yen
2019
2018
Investments in equity instruments that do nothave a quoted market price in an active
market¥3

Thousands of
U.S. Dollars
2019

¥3

$24

(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities

September 30, 2019
Cash and cash equivalents
Receivables:
Trade notes
Electronically recordedmonetary claims
Trade accounts
Total

September 30, 2018
Cash and cash equivalents
Receivables:
Trade notes
Electronically recordedmonetary claims
Trade accounts
Total

Due in1 Year or
Less

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years¥ 3,330¥¥¥¥ 6,551¥¥¥

Due in1 Year or
Less

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years¥ 2,718

¥

¥

¥

¥

¥

¥

Due after
10 Years

272
86
2,863

Due after
10 Years

377
157
3,410
¥ 6,662- 21 -

September 30, 2019
Cash and cash equivalents
Receivables:
Trade notes
Electronically recordedmonetary claims
Trade accounts
Total

Due in1 Year or
Less$ 30,834

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

$

$

$

$

$

$

2,517
795
26,512$ 60,658

Please see Note 5 for annual maturities of long-term debt.
12.

OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended September 30, 2019 and2018, were as follows:
Thousands of
U.S. Dollars
2019

Millions of Yen
2019
2018
Unrealized (loss) gain on available-for-sale securities:(Losses) gains arising during the year
RecyclingAmount before income tax effect
Income tax effect¥ (194 )1(193 )
59

¥ 40
40
(12 )

$ (1,800 )9(1,791 )548(134 )

28(1,243 )Foreign currency translation adjustments:
Adjustments arising during the year

(14 )

(0 )

(134 )

Defined retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect

17
10
27

(21 )
35
14

157
95
252

Total

27

14

252

Total other comprehensive income¥ (121 )¥ 42$ (1,125 )

Total

13.

SUBSEQUENT EVENTSa.

Proposed Appropriation of Retained Earnings
For the general shareholders' meeting to be held on December 24, 2019, the board of directorsof the Company proposed the following appropriation of retained earnings:

Cash dividends, ¥25 ($0.23) per share- 22 -

Millionsof YenThousands of
U.S. Dollars

¥57

$529

b.

Establishment of Subsidiary
On October 1, 2019, the Company established a new subsidiary.
(1) Reason for establishment
The Group is established for the purpose of conducting a metal recycling business(production of cast steel valve parts, ingot manufacturing, storage business, etc).
(2) Overview of established subsidiary
①

Name:

TVE Refine Metal Co., Ltd.

②

Location:

119-2-4, Hongo ,Ooi-cho, Ooi-gun, Fukui Japan③

Capital:¥49 million④

Shareholders:Toa Valve Engineering Co., Ltd.
Toa Service Co., Ltd.

14.

1,959 shares (99.9%)
1 share

(0.1%)⑤

Date of establishment:

October 1, 2019⑥

Representative:

Toshiyuki Miyake⑦

Main business:

Manufacturing and sale of various cast steel products,
worker dispatching, and research support fordecommissioning of nuclear power plants, etc.

⑧

Business start date:

October 1, 2019

SEGMENT INFORMATION(1) Description of Reportable Segments
The Group's reportable segments are those for which separate financial information is available
and regular evaluation by the Company's management is performed in order to decide how
resources are allocated among the Group.
The main business of the Group is to manufacture and sell valves and their parts, to repair andmaintain valves, and to manufacture and sell cast metal. The manufacture and sale of valves
and their parts and repair and maintenance of valves are closely related. The Group administers
these businesses and plots strategies for them as a whole.
Therefore, the Group consists of Business A, Business B, and Business C. Business A consistsof the valve business. Business B consists of the cast metal business. Business C consists ofthe decontamination business.
The cast metal manufacturing division of the Company deals in the manufacture and sale ofcast metal parts for valves in the Group and the manufacture and sale of cast metal mainly forconstruction machinery outside of the Group.
Segment amounts for Business B relate only to the manufacture and sale of cast metal toexternal customers. Amounts related to the manufacture of cast metal for the manufacture ofvalves within the Group are aggregated to Business A.

- 23 -

(2) Methods of Measurement for the Amounts of Sales, Profit (Loss), Assets, Liabilities, and Other Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, "Summary of Significant Accounting Policies." Thecomponents of segment profit are consistent with the components of operating income in the consolidated statement of income.
(3) Information about Sales, Profit (Loss), Assets, and Other Items
Millions of Yen
2019
ASales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit or (loss)
Segment assets
Other:
Depreciation
Increase in property, plant, and equipment andintangible assets

Reportable Segments
BC¥ 6,694
7
6,701
1,540
6,293

¥ 1,053

237

39

1,053
(213 )
807

¥ 492
492
(48 )
187

213

Total
¥ 8,239
7
8,246
1,279
7,287

Reconciliations

Consolidated¥ 8,239

¥

(7 )
(7 )
(758 )
4,415

8,239
521
11,702

276

17

293

213

2

215

Millions of Yen
2018
ASales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit or (loss)
Segment assets
Other:
Depreciation
Increase in property, plant, and equipment andintangible assets

Reportable Segments
BC¥ 6,674
7
6,681
1,334
6,736

¥ 855

228

40

855
(209 )
548

¥ 576
576
44
232

214

A
Sales:
Sales to external customers$ 61,989
Intersegment sales or transfers
68
Total
62,057
Segment profit or (loss)
14,262
Segment assets
58,268Other:
Depreciation
2,195
Increase in property, plant, and equipment andintangible assets
1,974

Total
¥ 8,105
7
8,112
1,169
7,516

Reconciliations

Consolidated¥ 8,105

¥

(7 )
(7 )
(624 )
3,259

8,105
545
10,775

268

17

285

214

1

215

Thousands of U.S. Dollars
2019
Reportable Segments
B
C
Total
Reconciliations

Consolidated$ 9,747$ 76,288

9,747(1,970 )7,476
362- 24 -$ 4,5524,552(454 )
1,732$ 76,288
68
76,356
11,83867,476

$

(68 )
(68 )
(7,016 )40,87876,288
4,822
108,354

2,557

154

2,711

1,974

14

1,988

Associated Information
1.

Information about Products and Services

Sales to externalcustomers

Sales to externalcustomers

Sales to externalcustomers
2.

Sale of
ValvesSale ofParts¥2,907¥1,021

Sale of
ValvesSale ofParts¥2,560¥855

Sale of
ValvesSale ofParts$26,920$9,453

Millions of Yen
2019
Maintenanceof Valves in
Maintenance
Nuclearof Valves inPower Plants
Other Plants

¥895

Other

Total

¥1,537¥8,239

Other

Total

¥1,424¥8,105

Other

Total

$14,231$76,288¥1,879Millions of Yen
2018
Maintenanceof Valves in
Maintenance
Nuclearof Valves inPower Plants
Other Plants¥1,332¥1,934

Thousands of U.S. Dollars
2019
Maintenanceof Valves in
Maintenance
Nuclearof Valves inPower Plants
Other Plants$8,282$17,402

Information about Geographical Areas(1) Sales
Geographical sales information for the years ended September 30, 2019 and 2018, is notshown since sales to overseas customers are not material in the context of theconsolidated financial statements.
(2) Property, plant, and equipment
Geographical property, plant, and equipment information is not shown since overseas
property, plant, and equipment is not material in the context of the consolidated financial
statements.

3.

Information about Major Customers
2019
Sales

Name of Customer

Millions ofYen

Thousands of
U.S. Dollars

Related
Segment
Name

Mitsubishi Corporation Power Systems, Inc.
Mitsubishi Corporation¥2,775
1,177$25,694
10,899Business A
Business A- 25 -

2018
Sales

Name of Customer

Millions ofYen

Related
Segment
Name

Mitsubishi Corporation Power Systems, Inc.
Mitsubishi Corporation
Seika Corporation¥1,8471,563
1,202

Business A
Business A
Business A******- 26 -