Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.

Items Disclosure on the Internet,
Pursuant to the Provisions of Laws and Regulations
and Articles of Association

Consolidated Statements of Changes in Net Assets
Basis of Preparing Consolidated Financial Statements and other Notes
Statements of Changes in Net Assets
Significant Accounting Policies and other notes
For the 47th Fiscal Year (from April 1, 2019 to March 31, 2020)

These documents, -“Consolidated Statements of Changes in Net Assets”,“Basis of Preparing Consolidated Financial Statements and other Notes”,“Statements of Changes in Net Assets” and “Significant Accounting Policies
and other notes” - are provided on YUSHIN’s website(https://www.ype.co.jp) for shareholders, pursuant to the provision of laws
and regulations and articles of association.

–1–

Consolidated Statements of Changes in Net Assets(from April 1, 2019 to March 31, 2020)(Thousands of yen)
Shareholders’ equity

Balance as of April 1, 2019

Share capital

Capital surplus

1,985,666

2,023,903

Retainedearnings

Treasury shares

Total
shareholders’equity23,579,393(1,039,026)

26,549,936

Changes in the current period
Dividends of surplus(581,027)(581,027)

Profit attributable to ownersof parent

1,532,851

1,532,851

Acquisition of treasury
shares(316,140)(316,140)

Changes in items other thanshareholders’ equity, net
Total changes in the current
periodBalance as of March 31, 2020--

951,824(316,140)

635,683

1,985,666

2,023,903

24,531,217(1,355,167)

27,185,619

Total accumulated other comprehensive income

Balance as of April 1, 2019

Valuationdifference on
availablefor-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

56,815

184,923

69,743

Total
Nonaccumulated controllinginterests
othercomprehensive
income311,482

256,066

Total net
assets27,117,484

Changes in the current period
Dividends of surplus(581,027)

Profit attributable to ownersof parent

1,532,851

Acquisition of treasury
shares(316,140)

Changes in items other thanshareholders’ equity, net(40,371)(219,411)(7,573)(267,356)(13,849)(281,206)

Total changes in the current
period(40,371)(219,411)(7,573)(267,356)(13,849)

354,476

Balance as of March 31, 2020

16,443(34,487)

62,16944,125242,216

27,471,961

–2–

1.

Basis of Preparing Consolidated Financial Statements(1) Scope of consolidation
All 13 subsidiaries of the Company, provided below, fall within the scope of consolidation.
YUSHIN EUROPE GMBH was established in June 2019 as a subsidiary of the Company and has
been included in the scope of consolidation since the current consolidated fiscal year.

List of Subsidiaries
YUSHIN AMERICA, INC.
YUSHIN KOREA CO., LTD.
YUSHIN PRECISION EQUIPMENT SDN. BHD.
YUSHIN PRECISION EQUIPMENT (TAIWAN) CO., LTD.
YUSHIN PRECISION EQUIPMENT (THAILAND) CO., LTD.
YUSHIN AUTOMATION, LTD.
YUSHIN PRECISION EQUIPMENT TRADING (SHENZHEN) CO., LTD.
YUSHIN PRECISION EQUIPMENT TRADING (SHANGHAI) CO., LTD.
YUSHIN PRECISION EQUIPMENT (INDIA) PVT. LTD.
GUANGZHOU YUSHIN PRECISION EQUIPMENT CO., LTD.
PT. YUSHIN PRECISION EQUIPMENT INDONESIAYUSHIN PRECISION EQUIPMENT (VIETNAM) CO., LTD.
YUSHIN EUROPE GMBH

(2) Application of the equity method
There is no non-consolidated subsidiary or affiliate company.
(3) Accounting policies
a. Valuation of important assetsi) Securities
Available-for-sale securities classified as other securities- Securities with available fair market values are reported at fair value on the consolidated
account closing date
(Unrealized gains or losses, net of applicable taxes, reported in a separate component of equity.
The cost of securities sold is principally determined by the moving average method)ii) Inventories- Merchandise and finished goods, Work-in-process
Principally carried at cost determined by the identified cost method (the carrying value on thebalance sheet is written down to reflect the effect of lower profit margins)- Raw materials
Principally carried at cost determined by the periodic average method (the carrying value on
the balance sheet is written down to reflect the effect of lower profit margins)- Supplies
Carried by the last purchase price methodb. Depreciationi) Property, plant and equipment (excluding leased assets): Principally computed by the decliningbalance method
The range of useful lives for major assets is as follows:
Buildings:
13 - 40 years
Structures:
7 - 20 years
Machinery and equipment:
5 - 12 years
Tools, furniture and fixtures:
2 - 10 years
ii)

Intangible assets (excluding leased assets)- Software used internally: Straight-line method based on the expected useful lives–3–

- Other intangible assets: Straight-line methodiii) Leased assets: For leased assets under non-ownership transfer finance lease transactions, theCompany applies a straight-line method with the lease period as useful life and the residual valueas 0.
c. Estimation on important allowance and reservesi) Allowance for doubtful accounts:
To provide for possible bad debt losses, the amount deemed unrecoverable is accounted using theloan loss ratio based on past experience for general claims and by examining the possibility ofrecovery on an individual basis for specific claims with default possibility.
ii) Provision for bonuses:
In order to allocate the payment of employees’ bonuses, the Company provides the amount subject
to the fiscal year under review among the total estimated amount to be paid as employees’ bonuses.
iii) Provision for bonuses for directors:
The Company provides the projected payment amount to be allocated for the payment of bonuses
to Directors and Corporate Auditors.
iv) Provision for product warranties:
To provide for expenses incurred for free repairs related to product sales, an amount is accounted
based on historical experience.
v) Provision for retirement benefits for directors:
The Company provides the estimated amount of retirement benefits to Directors and Corporate
Auditors which would be required if all Directors and Corporate Auditors retired at the balance
sheet date according to internal regulations. This plan was terminated on June 29, 2006 and no
additional provision has been recorded since then. Therefore, the balance as of year-end isprovided in proportion to the term that present Directors had been in their respective positions
before June 2006.
d. Other significant matter for the preparation of Consolidated Financial Statementsi) Accounting for Retirement benefit assets and liabilities
To provide for employees’ retirement benefits, based on the projected benefit obligations at yearend and the pension asset balance, the amount of pension assets surplus to projected benefit
obligations is recorded.
The net actuarial loss or gain is subject to amortization from the next fiscal year of the recognition
thereof onward in an amount pro-rated by the straight-line method based on the average remaining
employee service period (10 to 16 years) at the time of the recognition of net actuarial loss or gainin each fiscal year.
Unrecognized actuarial differences is recorded in “Remeasurements of defined benefit plans”
under “Total accumulated other comprehensive income” in Net assets after adjusting for tax
effects.
ii) Accounting for Consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for using the tax excluded method.
2. Notes to Consolidated Balance Sheet
Accumulated depreciation of property, plant and equipment:
3.

6,257,128 thousand yen

Notes to Consolidated Statement of Changes in Net Assets(1) Total number of issued sharesClass of shares

Number of shares atthe beginning ofcurrent FY

Number of increased
shares of current FY

Number of decreased
shares of current FY

Number of shares atthe end of current FY

Common stock

35,638,066--

35,638,066(2) Number of treasury sharesClass of shares

Number of shares atthe beginning ofcurrent FY

Number of increased
shares of current FY

Number of decreased
shares of current FY

Number of shares atthe end of current FY

Common stock

1,333,548

268,906-

1,602,454

Notes: Of the increase in the number of shares of treasury shares 268,700 shares is due to the purchase based on the board of–4–

directors resolution held on February 7, 2019, and 206 shares is due to the purchase of shares of less than one unit.

(3) Dividends of surplus
a. Payment of dividends
Resolution

Class of shares

Total dividend(Thousandsof yen)Dividend
per share(Yen)

Record date

The Board of Directors’Meeting on May 10, 2019

Common stock

308,740

9

March 31, 2019

June 4, 2019

The Board of Directors’Meeting on November 7,
2019

Common stock

272,2868

September 30,
2019

December 2,
2019

Effective dateb. Dividends whose record date falls within this consolidated fiscal year but comes into effect in
the next consolidated fiscal year
Resolution

Class ofsharesTotal dividend(Thousandsof yen)Dividend
funds

Dividend
per share(Yen)

The Board of
Directors’ Meetingon May 14, 2020

Commonstock

340,356

Retainedearnings

10

4.

Record date

Effective date

March 31,2020

June 5, 2020

Notes to Financial Instruments(1) Conditions of financial instruments
a. Management policy
YUSHIN Group has a policy of limiting investments of unused funds to short-term deposits,
certificates of deposits and similar instruments and never using these funds for speculation. Internal
resources are used to meet all working capital requirements. Derivative instruments may be used tohedge exposure to foreign exchange rate risk but will never be used for speculation.
b. Details of financial instruments and their risks
Operating receivables consisting of Notes and accounts receivable - trade are generally exposedto the credit risk of customers, while foreign currency denominated operating receivables at foreign
operations are exposed also to the foreign exchange risk.
Investment securities are available-for-sale securities and are exposed to risk associated withmarket price volatility.
Operating debt consisting of Notes and accounts payable - trade and Electronically recorded
obligations - operating are largely due four months or less. Accounts payable - other and Income
taxes payable are due one year or less.
c. Risk management system for financial instruments
Payment dates and balances of outstanding are supervised for each customer based on rules forthe management of trade receivables and credit. In addition, there is a system for monitoring thefinancial soundness of customers.
For Investment securities, there are measures to periodically monitor the fair values of thesesecurities and the financial soundness of issuers of these securities.
(2) Fair value of financial instruments
The carrying value on the consolidated balance sheets, fair value, and their differences as of March
31, 2020 are shown as follows.
Carrying value(thousands of yen)
(1)
(2)
(3)
(4)

(1)
(2)
(3)
(4)

Cash and deposits
Notes and accounts receivable – trade
Consumption taxes receivable
Investment securities
Other securities

8,646,219
5,410,654
19,143

Fair value(thousands of yen)

Differences(thousands of yen)

8,646,219
5,410,654
19,143-

159,973

159,973-

Assets total

14,235,991

14,235,991-

Notes and accounts payable - trade
Electronically recorded obligations - operating
Accounts payable - other
Income taxes payable

895,133
803,258
418,287
137,914895,133
803,258
418,287
137,914-

Liabilities total

2,254,593

2,254,593-–5–

Note: Matters concerning determination of fair value of financial instruments and marketable securities.

(Assets)(1) Cash and deposits, (2) Notes and accounts receivable – trade, and (3) Consumption taxes
receivable.
Fair value of the above financial instruments is deemed to be equal to their carrying value
because they are settled within a short period of time.
(4)Investment securities
Fair value of the above financial instruments such as stocks is determined by prices at stock
exchanges.
(Liabilities)(1) Notes and accounts payable - trade, (2) Electronically recorded obligations - operating, (3)Accounts payable - other and (4) Income taxes payable
Fair value of the above financial instruments is deemed to be equal to their carrying value
because they are settled within a short period of time.
5.

Per Share Information(1) Net assets per share:(2) Net income per share:

800.04 yen
45.01 yen

Note: Amounts less than one thousand yen are truncated.

–6–

Statements of Changes in Net Assets(from April 1, 2019 to March 31, 2020)(Thousands of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital Legal capitalsurplus
Balance as ofApril 1, 2019
Changes in thecurrent period
Dividends ofsurplus1,985,666

2,023,903

Total capitalsurplusLegalretainedearnings

2,023,903

286,314

Reserve fordividend
equalization

Generalreserve

Retainedearnings
brought
forward

Total retained
earnings

1,000,000

8,700,000

11,760,730

21,747,045(581,027)(581,027)

1,213,679

1,213,679

ProfitAcquisition oftreasury shares
Changes in items
other thanshareholders’equity, net
Total changes in thecurrent period
Balance as ofMarch 31, 2020

-

-

-

-

-

-

632,652

632,652

1,985,666

2,023,903

2,023,903

286,3141,000,000

8,700,000

12,393,383

22,379,698

Shareholders’ equity
Treasury shares
Balance as of April 1, 2019

(1,039,026)

Valuation and translation adjustments

Totalshareholders’equity24,717,588

Valuationdifference on
available-for-salesecurities

Total valuation andtranslation
adjustments

56,81556,815

Total net assets

24,774,404

Changes in the current period
Dividends of surplus(581,027)(581,027)

Profit

1,213,679

1,213,679(316,140)(316,140)

Acquisition of treasury shares(316,140)

Changes in items other thanshareholders’ equity, net
Total changes in the current period
Balance as of March 31, 2020

(40,371)(40,371)(40,371)(316,140)

316,511(40,371)(40,371)

276,140(1,355,167)

25,034,100

16,443

16,44325,050,544–7–

1. Significant Accounting Policies(1) Valuation of important assets
a. Stocks of subsidiaries and affiliates
Carried at cost determined by the moving average method
b. Available-for-sale securities classified as other securities- Securities with available fair market values are reported at fair value on the closing date
(Unrealized gains or losses, net of applicable taxes, reported in a separate component of equity.
The cost of securities sold is principally determined by the moving average method)c. Inventories- Merchandise and finished products, Work in process:
Carried at cost determined by the identified cost method (the carrying value on the balance
sheet is written down to reflect the effect of lower profit margins).
- Raw materials:
Carried at cost determined by the periodic average method (the carrying value on the balance
sheet is written down to reflect the effect of lower profit margins)- Supplies:
Carried by the last purchase price method(2) Depreciationa. Property, plant and equipment (excluding leased assets): Declining balance method
The range of useful lives for major assets is as follows:
Buildings:
13 - 38 years
Structures:
7 - 20 years
Machinery and equipment:
12 years
Tools, furniture and fixtures:
2 -10 years
b. Intangible assets (excluding leased assets)- Software used internally: Straight-line method based on the expected useful lives- Other intangible assets: Straight-line method
c. Leased assets: For leased assets under non-ownership transfer finance lease transactions, theCompany applies a straight-line method with the lease period as useful life and the residual valueas 0.
(3) Estimation on allowance and reserves
a. Allowance for doubtful accounts:
To provide for possible bad debt losses, the amount deemed unrecoverable is accounted using theloan loss ratio based on past experience for general claims and by examining the possibility ofrecovery on an individual basis for specific claims with default possibility.
b. Provision for bonuses:
In order to allocate the payment of employees’ bonuses, the Company provides the amount subject
to the fiscal year under review among the total estimated amount to be paid as employees’ bonuses.
c. Provision for bonuses for directors:
The Company provides the projected payment amount to be allocated for the payment of bonuses
to Directors and Corporate Auditors.
d. Provision for product warranties:
To provide for expenses incurred for free repairs related to product sales, an amount is accounted
based on historical experience.
e. Provision for retirement benefits for directors:
The Company provides the estimated amount of retirement benefits to Directors and Corporate
Auditors which would be required if all Directors and Corporate Auditors retired at the balance
sheet date according to internal regulations. This plan was terminated on June 29, 2006 and no
additional provision has been recorded since then. Therefore, the balance as of year-end isprovided in proportion to the term that present Directors had been in their respective positions
before June 2006.

–8–

(4) Retirement benefits
To provide for employees’ retirement benefits, based on the projected benefit obligations at yearend and the pension asset balance, the amount of pension assets surplus to projected benefit
obligations (Prepaid pension costs) is recorded in the “Other” field under “Investments and otherassets.” The net actuarial loss or gain is subject to amortization from the next fiscal year of therecognition thereof onward in an amount pro-rated by the straight-line method based on the averageremaining employee service period (10 to 16 years) at the time of the recognition of net actuarial
loss or gain in each fiscal year.
(5) Other basic significant matter for the preparation of Financial Statements
Consumption tax and local consumption tax are accounted for using the tax excluded method.
2. Notes to Balance Sheet(1) Accumulated depreciation of property, plant and equipment:(2) Monetary credit and debts to affiliates
a. Short-term monetary credit:b. Short-term monetary debts:
3. Notes to Statements of Income
Transactions with subsidiaries and affiliates
a. Net sales:b. Purchases:c. Selling, general and administrative expenses:
d. Non-operating transactions:
4. Notes to Statement of Changes in Net Assets
Number of treasury shares

5,336,810 thousand yen
1,672,779 thousand yen
221,725 thousand yen

3,993,494 thousand yen
71,102 thousand yen
239,065 thousand yen
363,976 thousand yen

Class of shares

Number of shares atthe beginning ofcurrent FY

Number of increased
shares of current FY

Number of decreased
shares of current FY

Number of shares atthe end of current FY

Common stock

1,333,548

268,906-

1,602,454

Notes: Of the increase in the number of shares of treasury shares 268,700 shares is due to the purchase based on the board of
directors resolution held on February 7, 2019, and 206 shares is due to the purchase of shares of less than one unit.

–9–5. Notes on Tax-effect Accounting(1) Breakdown by cause of deferred tax assets and liabilities
Deferred tax assets
Inventories
Excess depreciation of property, plant and equipment
Excess intangible assets depreciation
Provision for bonuses
Provision for product warranties
Provision for retirement benefits for directors
Other
Total deferred tax assets
Deferred tax liabilities
Prepaid pension costs
Valuation difference on available-for-sale securities
Total deferred tax liabilities
Net deferred tax assets– 10 –(Thousands of yen)
52,777
297,993
133,828
80,215
19,52020,367
39,774644,476
59,811
7,216
67,028577,448

6. Transactions with Related Parties
Subsidiaries, etc.
Type

Subsidiary

Name

% of
voting rights
held

YUSHINAMERICA,
INC.

100%
Directly
held by theCompany

YUSHINKOREA CO.,
LTD.

100%
Directly
held by theCompany

YUSHINAUTOMATION
LTD.

95.6%
Directly
held by theCompany

GUANGZHOUYUSHINPRECISION
EQUIPMENT
CO., LTD.

100%
Directly
held by theCompany

Relationship
Concurrent
Business
Directors,
relationshipetc.
Sales andmaintenance &repair of theCompany
products.
Concurrent
Manufacturing,
Directors: 3
sales andmaintenance &repair ofcustom-ordered
equipment
Sales andmaintenance &repair of theCompany
products.
Concurrent
Manufacturing,
Directors: 1
sales andmaintenance &repair ofcustom-ordered
equipment

Type oftransacttions

Transactio
n amount(thousandsof yen)Year-endbalance

Account(thousandsof yen)Sale ofproducts

1,136,802

Accounts
receivable- trade333,256

Sale ofproducts

658,376

Accounts
receivable- trade202,835

Concurrent
Directors: 1

Sales andmaintenance &repair of theCompany
products.

Sale ofproducts

935,095

Accounts
receivable- trade175,276

Concurrent
Directors: 3

Manufacture of
the Company
products

Sale ofproducts

402,473

Accounts
receivable- trade616,836

Transaction terms or method of determining transaction terms(Note) For sale of products, prices are determined by negotiations considering local market prices.

7. Per Share Information(1) Net assets per share:(2) Net income per share:

736.01 yen
35.64 yen

Note: Amounts less than one thousand yen are truncated.

– 11 –