Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
[Japanese GAAP]
April 25, 2024
Company name: TAKAOKA TOKO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6617
URL: https://www.tktk.co.jp/
Representative: Takashi Ichinose, President and Representative Director
Contact: Yasuhiro Munekawa, Executive Officer and General Manager, Finance & Accounting Department
Phone: +81-3-6371-5026
Scheduled date of annual general meeting of shareholders: June 27, 2024
Scheduled date of commencing dividend payments: June 28, 2024
Scheduled date of filing annual securities report: June 27, 2024
Availability of supplementary explanatory materials on financial results: Available
Schedule of financial results briefing session: Scheduled (for analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2024
107,378
9.8
8,247
70.1
8,017
70.4
4,668
59.9
March 31, 2023
97,752
6.3
4,847
4.8
4,704
12.8
2,919 (11.0)(Note) Comprehensive income: Fiscal year ended March 31, 2024: ¥6,447 million [70.9%]
Fiscal year ended March 31, 2023: ¥3,773 million [(1.4)%]
Ratio of ordinary
Basic earnings Diluted earnings
Return on
Ratio of operating
profit to total
per shareper share
equityprofit to net sales
assetsFiscal year ended
Yen
Yen
%
%
%
March 31, 2024
290.29
–
8.3
7.2
7.7
March 31, 2023
180.78
–
5.5
4.6
5.0
(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2024: ¥(476) million
Fiscal year ended March 31, 2023: ¥(369) million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 2024
116,627
63,839As of March 31, 2023
106,32258,460(Reference) Equity: As of March 31, 2024: ¥58,250 million
As of March 31, 2023: ¥53,785 million

49.9
50.6

3,631.96
3,329.49(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

5,938
2,245

(2,308)(1,923)

1,181(2,202)

Cash and cash
equivalents
at end of period
Million yen

15,475
10,659

2. Dividends
1stquarterend
Yen

Annual dividends
2nd
3rd
Fiscalquarter- quarteryearend
end
end
Yen

Yen

Total

Yen

Yen

Ratio of
Payout ratio dividends to(consolidated) net assets(consolidated)

Total
dividends(Annual)

%

%

30.4

1.7

20.7

1.7

Million yen

Fiscal year ended
–
30.00
–
25.00
55.00
891
March 31, 2023
Fiscal year ended
–
25.00
–
35.00
60.00
972
March 31, 2024
Fiscal year ending
March 31, 2025
–
25.00
–
25.00
50.00
(Forecast)(Note) Breakdown of the 2nd quarter-end dividends for the fiscal year ended March 31, 2023:
Ordinary dividends: 25.00 yen; 10th anniversary commemorative dividends: 5.00 yen(Note) Breakdown of the fiscal year-end dividends for the fiscal year ended March 31, 2024:
Ordinary dividends: 25.00 yen; special dividends: 10.00 yen

32.2

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March
31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentFull year

Million yen

105,000%(2.2)

Million yen%

4,000 (51.5)

Million yen%

4,200 (47.6)

Million yen%

2,500 (46.4)

Yen

155.46

* Notes:(1) Changes in significant subsidiaries during the period under review: None
(Changes in specified subsidiaries resulting in changes in scope of consolidation):
Newly included: – (), Excluded: – ()(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Total number of shares issued (common shares)
1) Total number of shares issued at the end of the period (including treasury shares):
As of March 31, 2024:
16,276,305 shares
As of March 31, 2023:
16,276,305 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2024:
238,066 shares
As of March 31, 2023:
122,164 shares
3) Average number of shares outstanding during the period:
Fiscal year ended March 31, 2024:
16,081,567 sharesFiscal year ended March 31, 2023:
16,151,104 shares(Note) The Company has introduced the Board Benefit Trust (BBT), a performance-linked stock compensation
plan for directors and other officers, and the number of treasury shares includes the Company’s shares heldby the trust.
(Reference) Overview of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2024
77,542
8.8
5,420
54.1
5,675
48.7
2,781
11.8
March 31, 2023
71,290
4.9
3,518
1.4
3,816
2.3
2,488
29.8

Fiscal year ended
March 31, 2024
March 31, 2023

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

172.96154.07––(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

As of March 31, 2024
97,213As of March 31, 2023
90,440(Reference) Equity: As of March 31, 2024: ¥49,995 million
As of March 31, 2023: ¥48,077 million

Equity ratio

Net assets per share

Million yen%

Yen

49,99548,07751.4
53.2

3,117.25
2,976.16* These consolidated financial results reports are outside the scope of audit by certified public accountants or an audit
firm.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements contained in this material are based on theinformation currently available to the Company and certain assumptions deemed reasonable, and the Company does
not guarantee the achievement of these projections. In addition, actual financial results, etc. may differ significantly
due to various factors. For preconditions for the financial results forecast and precautions for using the financial

results forecast, please see “1. Overview of Operating Results, etc. (4) Future Outlook” on page 5 of theattachments.

Table of Contents - Attachments
1. Overview of Operating Results, etc. ........................................................................................................2(1) Overview of Operating Results for the Fiscal Year under Review ...................................................... 2(2) Overview of Financial Position for the Fiscal Year under Review .....................................................4(3) Overview of Cash Flows for the Fiscal Year under Review ................................................................ 4(4) Future Outlook ....................................................................................................................................5
2. Basic Policy on Selection of Accounting Standards ................................................................................5
3. Consolidated Financial Statements and Principal Notes .........................................................................6(1) Consolidated Balance Sheets ..............................................................................................................6(2) Consolidated Statements of Income and Comprehensive Income ......................................................8
Consolidated Statements of Income ........................................................................................................8
Consolidated Statements of Comprehensive Income ..............................................................................9(3) Consolidated Statements of Changes in Equity ................................................................................10(4) Consolidated Statements of Cash Flows ...........................................................................................12(5) Notes to Consolidated Financial Statements .....................................................................................14(Notes on going concern assumption) ...............................................................................................14(Changes in presentation method) .....................................................................................................14(Segment information, etc.) ..............................................................................................................14(Related party information) ...............................................................................................................16(Per share information) .....................................................................................................................18(Significant subsequent events) ......................................................................................................... 18

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
For the fiscal year ended March 31, 2024 (the “fiscal year under review”), we achieved a record operating
profit, as in the previous fiscal year. Meanwhile, incidents of impropriety regarding extra-high-voltage
transformer products (announced on January 22, 2024)*1 were identified in the course of performing the total
quality inspection for all products of the Company following the announcement of incidents of impropriety
regarding certain instrument transformer products made in May 2023 (announced on May 16, 2023)*2. We
would like to once again express our deepest apologies to our customers and other stakeholders for any
inconvenience and concern these may have caused.
The total quality inspection is still ongoing, and in parallel, an independent investigation and verificationcommittee with no vested interest in the Company is investigating the incidents and analyzing the causes. The
results of the total quality inspection and recurrence prevention measures will be announced promptly once all
work and verification are completed. We will identify the true causes of the series of incidents of impropriety
and ensure the thorough implementation of recurrence prevention measures while doing all in our power toregain our customers’ trust by striving to further strengthen the compliance systems across the entire Group.
*1: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/tdnet/2382637/00.pdf (available in Japanese)*2: Published on the Company’s website:
https://www.tktk.co.jp/en/news/assets/pdf/news_e20230516.pdf
Under these circumstances, as announced today, we have decided to postpone the formulation of the next
medium-term management plan for one year. This is based on our recognition that the most important issue isto become a company that places the highest priority on safety, quality, and compliance, and our judgment that
we should focus on addressing this issue and define our direction before formulating the next medium-term
management plan for sustainable growth and presenting it to all stakeholders.
Regarding the overall situation for the Group, the business environment is changing significantly andbecoming increasingly severe in the electric power industry, which is our largest customer. Global fuel prices
have risen rapidly and competition has further intensified in the retail business amid growing demands forrealizing carbon neutrality, ensuring stable electricity supply and demand, strengthening disaster preventionfunctions and resilience within local communities, and a revenue cap system—a new system for wheelingcharges. Against this background, companies in the industry are working to improve productivity andthoroughly reduce business costs. Meanwhile, the Japanese government has declared its intention to makeJapan carbon neutral by 2050 as part of its efforts to realize a decarbonized society. In Japan, this has
encouraged the further spread of distributed energy-related equipment, including renewable energy, and there
are signs of nascent demand for fast chargers for electric vehicles.
Meanwhile, in April 2021, the Group formulated its 2030 VISION. Based on the three pillar policies ofdeepening and transforming our core businesses, transforming the structure of our business foundations, andtaking on challenges to cultivate the future vision for 2030, we have been pursuing an ambidextrous
management style that strives to simultaneously transform existing businesses and develop new businesses.
As announced on December 22, 2023, we also identified our materiality; key issues that we should
address on a priority basis to realize a sustainable society and achieve sustainable enhancement of corporate
value.
Prior to the identification of materiality, we formulated the Basic Policy on Sustainability*3, as announcedon December 27, 2021. Our basic policy on sustainability is to implement the TAKAOKA TOKO Group
Charter of Corporate Behavior, which was formulated with the aim of achieving sustainable growth incooperation with society while fulfilling the two-fold mission of “unchanging mission” and “new mission.” In2accordance with this basic policy, we are working on various sustainability issues.
As we advance these initiatives, we held repeated rounds of discussions until we identified and verbalizedmaterial issues that we should address on a priority basis, in an effort to further deepen coordination between
our management strategies and initiatives taken in line with the Basic Policy on Sustainability, while seeking torealize a sustainable society and sustainably enhance corporate value. We also discussed, determined, andverbalized what we want our company to be over the long term when we will have successfully addressed ourmateriality. Our materiality identified is as follows. For details, please see the announcement made on
December 22, 2023*4.
■ Contribution to stable supply and advanced use of electricity■ Contribution to realization of carbon neutrality■ Creation of an organization where diverse people are motivated to co-create and keep challenging
themselves■ Stakeholder engagement■ Ensuring of safety, quality, compliance, and enhancement of governance*3: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/ir_material/174838/00.pdf (available in Japanese)*4: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/ir_material/220287/00.pdf (available in Japanese)
Currently, our Sustainability Committee, which was established on September 25, 2023 to further
strengthen the sustainability management promotion system, is working on concrete numerical targets andinitiatives, which will be disclosed once they are fixed.
At the end of March 2023, the Tokyo Stock Exchange issued a notice titled, “Action to Implement
Management that is Conscious of Cost of Capital and Stock Price.” The Company’s ROE for the fiscal year
ended March 31, 2024 was 8.3% (up 2.8 percentage points year on year) reflecting an improving trend in
profits, whereas the PBR remained below 1.0x at 0.71x (unchanged year on year). In light of this performance,
we are discussing the current status for fiscal years 2021 through 2023 as well as policies and targets for
improvement, which will be disclosed in the FY2023 Supplementary Briefing Material on Financial Results.
Despite a decline in sales for general plant projects and 3D inspection systems, net sales for the fiscal year
under review increased significantly to 107,378 million yen (up 9.8% year on year), mainly due to increases insales across the entire Metering Business segment and power distribution equipment.
On the profit front, as is the case with net sales, a decline in profit for general plant projects and 3D
inspection systems was more than offset by an increase in profit across the entire Metering Business segment
and power distribution equipment. As a result, profit grew on every level, with operating profit reaching 8,247
million yen (up 70.1% year on year), ordinary profit 8,017 million yen (up 70.4% year on year), and profit
attributable to owners of parent 4,668 million yen (up 59.9% year on year), all achieving record highs.
The operating results for each business segment are detailed below.
In the Electric Equipment Business segment, net sales for the segment as a whole increased to 62,120
million yen (up 9.1% year on year) due to the increase in sales for certain power distribution equipment such as
distribution transformers. Segment profit increased to 6,978 million yen (up 33.8% year on year) as well.
In the Metering Business segment, net sales for the segment as a whole rose to 30,601 million yen (up9.5% year on year) due to increases in sales for replacement of expired meters, smart meters, and various typesof instrument transformer products, with segment profit increasing to 4,659 million yen (up 99.4% year onyear).
In the GX Solution Business segment, net sales for the segment as a whole increased to 10,334 million
yen (up 34.0% year on year) due to an increase in sales volume for fast chargers owing to an improvement in3

longer delivery lead times for parts procurement, and an increase in sales related to the data business, which
was newly launched. Segment profit was 313 million yen (compared to segment loss of 207 million yen in theprevious fiscal year), making a return to profitability.
In the Applied Optics Inspection System Business segment, sales of 3D inspection system decreased due
to lower investment in the semiconductor industry. As a result, net sales for the segment as a whole decreased
to 3,346 million yen (down 19.4% year on year) and segment profit also decreased to 775 million yen (down
48.2% year on year).
In Other Businesses segment, a decline in real estate leasing revenue resulted in a decline in net sales forthe segment as a whole to 975 million yen (down 1.7% year on year) and a contraction in segment profit to 648
million yen (down 2.9% year on year).

(2) Overview of Financial Position for the Fiscal Year under Review
Summary of assets, liabilities, and net assets
Total assets at the end of the fiscal year under review increased by 10,304 million yen compared to the end of
the previous fiscal year to 116,627 million yen. This was primarily due to increases in cash and deposits, tradereceivables, and inventories.
Liabilities increased by 4,926 million yen from the end of the previous fiscal year to 52,788 million yen.
This was primarily due to increases in short-term borrowings, income taxes payable, and long-termborrowings, despite decreases in notes and accounts payable - trade and retirement benefit liability.
Net assets increased by 5,378 million yen from the end of the previous fiscal year to 63,839 million yen.
This was primarily due to an increase in retained earnings owing to the recording of profit attributable toowners of parent and an increase in non-controlling interests, despite decreases resulting from dividends paid
and purchase of treasury shares.
(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (“net cash”) at the end of the fiscal year under review amounted to 15,475 million yen(compared to 10,659 million yen at the end of the previous fiscal year).
Net cash provided by operating activities amounted to 5,938 million yen (2,245 million yen provided for theprevious fiscal year). This was primarily due to the recordings of profit before income taxes of 7,592 million
yen and depreciation of 2,431 million yen, despite an increase in trade receivables of 1,663 million yen and anincrease in inventories of 2,424 million yen.
Net cash used in investing activities amounted to 2,308 million yen (1,923 million yen used for the previous
fiscal year). This was primarily due to the purchase of property, plant and equipment and intangible assets of
2,367 million yen.
Net cash provided by financing activities amounted to 1,181 million yen (compared to 2,202 million yen used
for the previous fiscal year). This was primarily due to proceeds from borrowings of 3,150 million yen, which
was partially offset by repayments of borrowings of 900 million yen and dividends paid of 810 million yen.

4

(Reference) Trends in Cash Flow Indicators
Year ended
Year ended
Year ended
Year ended
Year ended
March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024
47.3
48.7
51.3
50.6
49.9

Equity ratio (%)
Equity ratio based on market
15.2
25.2
23.8
35.7
35.4
value (%)
Interest-bearing debt to cash
490.4
135.5
111.1
146.5
93.3
flows ratio (%)
Interest coverage ratio
25.3
108.3
68.7
71.7
249.3
(times)Equity ratio: Equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flows ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payment(Notes) 1. Each indicator is calculated based on figures on a consolidated basis.
2. Market capitalization is calculated based on the number of shares issued excluding treasury shares.
3. Operating cash flow is used for cash flows.
4. Interest-bearing debt includes all liabilities on the consolidated balance sheets for which interest is paid.

(4) Future Outlook
As for the future outlook, net sales and each level of profit in the fiscal year ending March 31, 2025 are
expected to decrease from the fiscal year ended March 31, 2024 due to the costs incurred to address the series
of incidents of impropriety and the possible impact of suspending bids for certain products.
We will continue with the total quality inspection while identifying the true causes of the series ofincidents of impropriety and ensuring the thorough implementation of recurrence prevention measures, and wewill do our utmost to regain our customers’ trust.
For the consolidated financial results forecast for the fiscal year ending March 31, 2025, we expect net
sales of 105,000 million yen, operating profit of 4,000 million yen, ordinary profit of 4,200 million yen, andprofit attributable to owners of parent of 2,500 million yen.

2. Basic Policy on Selection of Accounting Standards
The Group adopts a policy to prepare its consolidated financial statements in accordance with the Japanese
GAAP for the time being, taking into account the time-series and cross-sectional comparability of theconsolidated financial statements.
Meanwhile, regarding the adoption of the International Financial Reporting Standards (IFRS), we intend
to address the matter appropriately, factoring in various conditions in Japan and overseas.

5

3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
Contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of March 31, 2024

10,659470
2,016
22,312
3,241
2,508
15,419
7,304
1,851
(4)
65,78015,475519
1,976
23,4393,790
2,475
17,434
7,668
1,952
(46)
74,68733,010(21,998)
11,012
22,035(19,850)
2,184
11,547(10,822)725
20,490330
34,74233,099(22,667)
10,432
22,765(20,353)
2,412
11,865(10,971)894
20,490378
34,607

1,971
1,971

1,943
1,943

1,614
36
746
598
832
–
3,828
40,542
106,322

1,372
110
1,739
1,298
868
(0)
5,389
41,940116,627

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for repairs
Provision for environmental measures
Provision for product warranties
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of March 31, 2023

As of March 31, 2024

15,992
65
1,990
1,125
2,346
2,067
–
5,428
29,015

15,451
84
2,740
2,323
3,010
2,674
0
5,599
31,884

1,300
1,175
1,302
171
1,314

2,800
1,385
1,340
93
2,090

122

156

12,710750
18,84747,862

12,285751
20,90352,7888,000
7,408
38,063(195)
53,2758,000
7,408
41,920(454)
56,874

185
35
397
(108)
509
4,675
58,460106,322

391
30
452
501
1,375
5,588
63,839116,627

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income from facilities
Sold power
Insurance claim income
Compensation received
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sold power expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of businesses
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Impairment losses
Office relocation expenses
Loss on valuation of investment securities
Loss on valuation of investments in capital of subsidiaries
and associates
Compensation expenses
Loss on liquidation of subsidiaries
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

For the fiscal year ended
March 31, 2023
97,752
76,202
21,55016,702
4,847

For the fiscal year ended
March 31, 2024
107,378
80,961
26,41618,169
8,247

2
33
93
72
53
19
–
70
344

5
25
68
73
35
34
42
53
339

29
28
369
61
487
4,704

31
34
476
26
569
8,017

8
34
–
42

4
–
110
114

38
–
11
1

22
174
15
67

26

–

257
–
335
4,411
1,343
(407)
935
3,476
556
2,919

–
258
539
7,592
2,854
(846)
2,008
5,584
915
4,668

Consolidated Statements of Comprehensive Income(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the fiscal year ended
March 31, 2023
3,476

For the fiscal year ended
March 31, 2024
5,584

23
(0)
24
37

205
(12)
21
610

211

38

296
3,773

863
6,447

3,203

5,534

570

913

9

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity
Capitalsurplus

Share capital
Balance at beginning of period

8,000

Retainedearnings

7,408

Treasury shares

Total
shareholders’equity(216)

51,22636,035

Changes during period
Dividends of surplus

(891)

(891)

Profit attributable to owners ofparent

2,919

2,919

Purchase of treasury shares

(1)

(1)

Disposal of treasury shares

21

21

Net changes in items other thanshareholders’ equity

–

–

2,027

20

2,048

8,000

7,408

38,063(195)

53,275

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

161

Deferred
gains orlosses onhedges42

Total
NonForeign Remeasureaccumulated
controllingcurrency
ments ofotherinterests
translation
definedcomprehenadjustment benefit plans
sive income
168

(146)

226

4,105

Total net
assets55,558Changes during period
Dividends of surplus(891)

Profit attributable to owners ofparent2,919

Purchase of treasury shares(1)

Disposal of treasury shares

21

Net changes in items other thanshareholders’ equity

23

(7)

229

37

283

570

853

Total changes during period

23

(7)

229

37

283

570

2,902

Balance at end of period

185

35

397

(108)

509

4,675

58,46010For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Shareholders’ equity
Capitalsurplus

Share capital
Balance at beginning of period

8,000

Retainedearnings

7,408

Treasury shares

Total
shareholders’equity(195)

53,27538,063

Changes during period
Dividends of surplus

(810)

(810)

Profit attributable to owners ofparent

4,668

4,668

Purchase of treasury shares

(272)

(272)

Disposal of treasury shares

13

13

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

–

–

3,857

(258)

3,599

8,000

7,408

41,920(454)

56,874

Accumulated other comprehensive income
Valuation
Total
NonDeferred
Foreign Remeasuredifference on
accumulated
controlling
gains orcurrency
ments ofavailableotherinterests
losses ontranslation
definedfor-salecomprehenhedges
adjustment benefit planssecurities
sive income
Balance at beginning of period

185

35

397

(108)

509

4,675

Total net
assets58,460Changes during period
Dividends of surplus(810)

Profit attributable to owners ofparent

4,668

Purchase of treasury shares(272)

Disposal of treasury shares

13

Net changes in items other thanshareholders’ equity

205

(5)

55

610

866

913

1,779

Total changes during period

205

(5)

55

610

866

913

5,378

Balance at end of period

391

30

452

501

1,375

5,588

63,83911

(4) Consolidated Statements of Cash Flows(Million yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Loss on liquidation of subsidiaries
Gain on transfer of business
Loss on abandonment of non-current assets
Loss (gain) on sale of non-current assets
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Compensation expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in contract liabilities
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for repairs
Increase (decrease) in provision for environmental
measures
Increase (decrease) in provision for share awards for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment
and intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Proceeds from sale of businesses
Other, net
Net cash provided by (used in) investing activities

12

For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

4,411
2,346
–
–
–
38
(8)
1
(34)
(13)
(35)
29
257

(95)

7,592
2,431
174
258
(110)
22
(4)
67
–
42
(30)
31
–
(7)

369

476

(4,033)(4,124)
2,279
252
(358)
(178)

(1,663)(2,424)
(534)
136
664
607

–

0

564
10

775
38

(27)

(77)

10

33

(97)
196
955
2,718
116
(31)
(557)
2,245

456
(992)
(373)
7,592
59
(23)
(1,689)5,938(2,094)(2,367)

8

7

(19)
217
(132)
162
–
(64)
(1,923)

–
–
(237)
91
196
–
(2,308)(Million yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13

For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

(410)
–
(900)
(891)
(1)
(2,202)91(1,789)12,44810,659

150
3,000
(900)
(810)
(258)
1,181
4
4,815
10,65915,475(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in presentation method)(Consolidated statements of income)“Insurance claim income,” which was included in “Other” under “Non-operating income” in the fiscal year
ended March 31, 2023, is presented separately from the fiscal year ended March 31, 2024 as the amountbecame material. To reflect this change in presentation, the consolidated financial statements for the fiscal
year ended March 31, 2023 have been reclassified.
As a result, 89 million yen of “Other” under “Non-operating income” on the consolidated statementof income for the fiscal year ended March 31, 2023, has been reclassified as “Insurance claim income” of
19 million yen and “Other” of 70 million yen.
(Segment information, etc.)(Segment information)
1. Overview of reportable segments(1) Method of determining reportable segments
The Company’s reportable segments are components of the Company for which separate financial
statements are available and which are subject to periodic review by the Board of Directors to determine
the allocation of management resources and evaluate their performance.
The Company has established business divisions by product and service, and each division formulates
comprehensive strategies and develops business activities for the products and services it handles.
Accordingly, the Company is composed of products/service segments based on each business, andthus designates the following four businesses as reportable segments: “Electric Equipment Business,”“Metering Business,” “GX Solution Business,” and “Applied Optics Inspection System Business.”(2) Type of products and services belonging to each reportable segment
In the Electric Equipment Business segment, the Company manufactures, sells, and installs equipment for
power receiving, transforming and distribution, and monitoring and control system.
In the Metering Business segment, the Company manufactures and sells instrument transformer andvarious types of meters and undertakes replacement of expired meters, etc.
In the GX Solution Business segment, the Company manufactures and sells energy metering andcontrol equipment, fast chargers for electric vehicles, embedded software, and thin client systems. The
Company also engages in smart grid business and PPP/PFI business.
In the Applied Optics Inspection System Business segment, the Company manufactures and sells 3D
inspection systems, etc.
2.

Calculation of net sales, profit or loss, and other items by reportable segment
The accounting methods used for the reported business segments are the same as those used in the preparationof the consolidated financial statements. Segment profit or loss is based on operating profit or loss. Intersegment
net sales and transfers are based on prevailing market prices.

14

3.

Information on net sales, profit or loss, and other items by reportable segment
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Electric
Equipment
Business

Reportable segment
Applied Optics
Metering
GX Solution
Inspection
Business
Business
SystemBusiness

Total

Other

Total

Net sales
Net sales to outside
56,94427,953
7,711
4,150
96,760992
97,752
customers
Inter-segment net
1,461
4,711
1,108
–
7,281
502
7,783
sales or transfers
Total
58,40532,6648,819
4,150
104,041
1,494
105,536
Segment profit (loss)
5,214
2,337
(207)
1,496
8,841
667
9,508
Other items:
Depreciation
852
626
72
51
1,603
267
1,871
(Notes) 1. The “Other” includes a real estate leasing business.
2. Depreciation includes amortization of long-term prepaid expenses.
3. Segment assets, segment liabilities, increase or decrease of property, plant and equipment and intangible assets areomitted because the Company does not allocate them to reportable segments.

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Electric
Equipment
Business

Reportable segment
Applied Optics
Metering
GX Solution
Inspection
Business
Business
SystemBusiness

Total

Other

Total

Net sales
Net sales to outside
62,12030,601
10,334
3,346
106,403
975
107,378
customers
Inter-segment net
1,638
5,409
1,382
–
8,429
498
8,927
sales or transfers
Total
63,75836,01011,717
3,346
114,833
1,473
116,306
Segment profit (loss)
6,978
4,659
313
775
12,727648
13,375
Other items:
Depreciation
856
678
87
60
1,682
262
1,945
(Notes) 1. The “Other” includes a real estate leasing business.
2. Depreciation includes amortization of long-term prepaid expenses.
3. Segment assets, segment liabilities, increase or decrease of property, plant and equipment and intangible assets areomitted because the Company does not allocate them to reportable segments.

15

4.

Differences between reportable segments total and amounts in financial statements and main details(Description of adjustments)(Million yen)
For the fiscal year ended
March 31, 2023
104,041
1,494(7,783)97,752

Net sales
Reportable segments total
Net sales classified as “Other”
Elimination of intersegment transactions
Net sales in the consolidated financial statements

For the fiscal year ended
March 31, 2024
114,833
1,473(8,927)
107,378(Million yen)

ProfitTotal segment profit of reportable segments
Segment profit of “Other”
Elimination of intersegment transactions
Corporate expenses (Note)
Other adjustments
Operating profit in the consolidated financial
statements(Note)For the fiscal year ended
March 31, 2023
8,841
667
36
(4,686)(11)

For the fiscal year ended
March 31, 2024
12,727648
24(5,149)
(3)

4,847

8,247

Corporate expenses mainly represent general and administrative expenses not attributable to any reportable segments.

(Million yen)

Other items

Depreciation

Reportable segment
total
Fiscal
2023
1,603

Fiscal
2024
1,682

Other
Fiscal2023
267

Adjustments
Fiscal2024
262

Fiscal2023
475

Fiscal2024
486

Amounts in the
consolidated financial
statements
FiscalFiscal
2023
2024
2,346
2,431

(Notes) 1. Adjustments mainly represent general and administrative expenses not attributable to any reportable segments.
2. Depreciation includes amortization of long-term prepaid expenses.

(Related party information)
Related party transaction
1. Transaction between the Company and its related party
The Company’s parent company and major shareholders (limited to corporates), etc.
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Attribution

Other
affiliate
company

Name

Location

TEPCO Power
Grid, Incorporated

Chiyodaku,
Tokyo

Capital(Millionyen)

Description ofbusiness

80,000Generalelectricity
transmission
anddistribution

Equityownership(%)

Relationshipwithrelated party
Businesstransaction

Direct35.2

Concurrent
directors andofficers

Descriptionoftransaction

Transaction
amount(Millionyen)

Account

Year-endbalance(Millionyen)

Sale ofelectric
equipment
and meters,
etc.

27,600Accounts
receivable- trade4,581(Notes) 1. The transaction amount represents net of consumption tax, but the year-end balance includes consumption tax.
2. Transaction terms and policy for determining transaction terms and others
They are determined based on the price negotiation after considering market price and other conditions.

16

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)
Attribution

Other
affiliate
company

Name

Location

TEPCO Power
Grid, Incorporated

Chiyodaku,
Tokyo

Capital(Million
Yen)

Descriptionof business

80,000Generalelectricity
transmission
anddistribution

Equityownership(%)

Relationshipwith therelated party
Businesstransaction

Direct35.2

Concurrent
directors
and officers

Descriptionoftransaction

Transaction
amount(Millionyen)

Account

Yearendbalance(Millionyen)

Sale ofelectric
equipment
and meters,
etc.

33,014

Accounts
receivable- trade5,601(Notes) 1. The transaction amount represents net of consumption tax, but the year-end balance includes consumption tax.
2. Transaction terms and policy for determining transaction terms and others
They are determined based on the price negotiation after considering market price and other conditions.

2. Transaction between the Company’s consolidated subsidiaries and its related party
The Company’s parent company and major shareholders (limited to corporates), etc.
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Attribution

Other
affiliate
company

Name

Location

TEPCO Power
Grid, Incorporated

Chiyodaku,
Tokyo

Capital(Millionyen)

Description ofbusiness

80,000Generalelectricity
transmission
anddistribution

Equityownership(%)

Relationshipwith therelated party

Descriptionoftransaction

Transaction
amount(Millionyen)

Account

Yearendbalance(Millionyen)

Sale ofmeters, etc.

11,220Accounts
receivable- trade2,280

Businesstransaction
Direct35.2

Concurrent
directors
and officers(Notes) 1. The transaction amount represents net of consumption tax, but the year-end balance includes consumption tax.
2. Transaction terms and policy for determining transaction terms and others
They are determined based on the price negotiation after considering market price and other conditions.

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)
Attribution

Other
affiliate
company

Name

Location

TEPCO Power
Grid, Incorporated

Chiyodaku,
Tokyo

Capital(Millionyen)

Description ofbusiness

80,000Generalelectricity
transmission
anddistribution

Equityownership(%)

Relationshipwith therelated party

Descriptionoftransaction

Transaction
amount(Millionyen)

Account

Yearendbalance(Millionyen)

Sale ofmeters, etc.

12,646

Accounts
receivable- trade1,737

Businesstransaction
Direct35.2

Concurrent
directors
and officers(Notes) 1. The transaction amount represents net of consumption tax, but the year-end balance includes consumption tax.
2. Transaction terms and policy for determining transaction terms and others
They are determined based on the price negotiation after considering market price and other conditions.

17(Per share information)
For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

3,329.49

3,631.96

180.78290.29Net assets per share (yen)Basic earnings per share (yen)(Notes) 1. Diluted earnings per share is not stated as there are no shares with a dilutive effect.
2. The basis for calculation of net assets per share is as follows.

(Million yen, unless otherwise stated)
As of March 31, 2023

As of March 31, 2024

Total net assets

58,46063,839Deduction from net assets

4,675

5,588

[of which non-controlling interest][4,675][5,588]

Net assets applicable to common stock at end of
period53,78558,250

Number of common shares at end of period used for
calculation of net assets per share (Thousand shares)

16,154

16,038

3. The basis for calculation of basic earnings per share is as follows.

(Million yen, unless otherwise stated)
For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

2,919

4,668

Amount not attributable to common shareholders––

Profit attributable to owners of parents relating tocommon shares

2,919

4,668

Average number of common shares outstanding
during the period (Thousand shares)

16,151

16,081

Profit attributable to owners of parent(Significant subsequent events)
Not applicable.

18