[Translation]

Annual Securities Report(The 19th Business Term)
From April 1, 2022, to March 31, 2023

CYBERDYNE, INC.

This document is a partial translation of the Annual Securities Report (有価証券報告書).
The Japanese original, "Part I Information on the Company V. Consolidated Financial
Statements and Other Information 1. Consolidated Financial Statements," were auditedby Deloitte Touche Tohmatsu LLC.
CYBERDYNE filed the Annual Securities Report to the Director of the Kanto Local
Finance Bureau via Electronic Disclosure for Investor's NETwork ("EDINET") underJapan's Financial Instruments and Exchange Act.
－ 1 －Chapter 1【Information of the company】Part 1【Status of the company】
1【Changes in major management indicators】(1) Consolidated management indicators
International Financial Standards (IFRS)
Order
Date of settlement

Term 15

Term 16

Term 17

Term 18

Term 19

March 2019

March 2020

March 2021

March 2022

March 2023

Revenue

Millions of yen

1,709

1,792

1,875

2,150

3,289

Operating profit (loss)

Millions of yen(830)(1,039)

(700)

(878)

(1,145)

Profit (loss) before tax

Millions of yen

(569)

91

408

(389)

53

Millions of yen

(632)

(152)

(59)

(498)

(298)

Millions of yen(1,480)

42

(479)

(371)

(131)

Millions of yen

44,21744,26843,77643,413

42,101Millions of yen

45,74647,808

48,11949,46750,187

Equity attributable to ownersof the parent per shareYen

205.50205.71203.39201.74

199.32

Basic earnings (loss) per share

Yen(2.94)(0.71)(0.27)(2.32)(1.39)

Diluted earnings (loss) per
share

Yen

(2.94)(0.71)(0.27)(2.32)(1.39)

Ratio of equity attributable toowners of the parent

%

96.7

92.6

91.0

87.8

83.9

Return of equity attributableto owners of the parent

%

−

−

−

−

−

Price-to-earnings ratio

Ratio

−

−

−

−

−

Cash flow from operating
activities

Millions of yen

(775)

(215)

(775)

(564)

(143)

Cash flow from investing
activities

Millions of yen(1,917)(244)(2,794)(1,788)2,173

Cash flow from financing
activities

Millions of yen

670

1,304

617

1,248

14

Profit (loss) attributable to theowner of the parent
Comprehensive profit(loss)
attributable to owners of theparentEquity attributable to ownersof the parent
Total assets

Balance of cash and cash
equivalents at the end of theMillions of yen
8,796
9,636
6,704
5,677
7,801
fiscal year
Numbers of employee
84
95
96
201
257
(Average number of nonPersons
(47)
(56)
(44)
(47)
(55)
regular employees)
Note
1. The Company has prepared the consolidated financial statements under International Accounting Standards
2. The Company did not state the price-to-earnings ratio because CYBERDYNE recorded a loss attributable to the owners of theparent3. The Company did not state the return of equity attributable to the owners of the parent because CYBERDYNE recorded a loss
attributable to the owners of the parent.
4. Rounded down to the closest millions of yen (same for the following)
5. In the consolidated fiscal year, the Company finalized the provisional accounting treatment for the business combination, andthe related key management indices for the previous consolidated fiscal year are based on the amounts after the significant
revision of the initial allocation of acquisition costs due to the finalization of the provisional accounting treatment wasreflected.

－ 2 －(2) Non-consolidated management indicators
Order
Date of settlement
Net sales
Operating profit (loss)
Net profit (loss)
Share capital
Total number of issued shares
Net assets
Total assets
Net assets per share

Millionsof yenMillionsof yenMillionsof yenMillionsof yenSharesMillionsof yenMillionsof yenYen

Term 15

Term 16

Term 17

Term 18

Term 19

March 2019

March 2020

March 2021

March 2022

March 2023

1,530

1,595

1,663

1,564

1,715

(734)

(615)

(521)

(602)

(545)

(1,906)

(849)

(527)

(607)

(595)

26,77826,77810

10

10

Common Share
137,445,809
Class B Share
77,700,000

Common Share
137,445,809
Class B Share
77,700,000

44,02043,16742,70842,08040,43544,74043,89943,29542,663

41,531204.52200.56

198.43195.51

191.42

−

−

−

−

−

(−)

(−)

(−)

(−)

(−)

Common Share Common Share
137,445,809
137,445,809
Class B Share Class B Share
77,700,000
77,700,000

Common Share
137,445,809
Class B Share
77,700,000

Dividend per share(Interim dividend per share)

Yen

Net profit (loss) per share

Yen(8.86)(3.95)(2.45)(2.82)(2.77)

Diluted net income per share

Yen

−

−

−

−

−

Capital ratio

%

98.4

98.3

98.6

98.6

97.3

Return on equity

%

−

−

−

−

−

Price-to-earnings ratio

Ratio

−

−

−

−

−

Payout ratio

%

−

−

−

−

−

65

78

81

84

82

(41)

(47)

(39)

(40)

(37)

Numbers of employee(Average number of non-regular
employees)

Persons

Total shareholder return

%

45.4

40.2

42.4

24.2

18.9

(Comparative index: Tokyo Stock
Exchange Mothers Index)%(79.2)(64.9)(194.0)(65.7)(94.8)

Highest share price

Yen

1,538

753

975

695

463

Lowest share price

Yen

449

320

360

307

276

Note
1. The Company did not state diluted net income per share because, while there are diluted shares, CYBERDYNE recorded net
loss per share.
2. The Company did not state return of equity as CYBERDYNE recorded net loss attributable to owners of the parent.
3. The Company did not state price-to-earnings ratio as CYBERDYNE recorded net loss per share.
4. The highest and lowest share prices are based on the Tokyo Stock Exchange (Growth) price starting from April 4, 2022. Prices
before that date are based on the share price at Tokyo Stock Exchange (Mothers)－ 3 －Chapter 5【Status of Accounting】
1 Basis of preparation of consolidated financial statement and non-consolidated financial statement(1) The consolidated financial statements of CYBERDYNE, INC. (the “Company”) have been prepared byInternational Accounting Standards (hereafter referred to as “IFRS”) under Article 93 of the “Ordinanceon Terminology, Forms, and Preparation Methods of Consolidated Financial Statements” (Ordinance ofthe Ministry of Finance No. 28 of 1976)(2) The non-consolidated financial statements of the Company have been prepared by “Ordinance on
Terminology, Forms, and Preparation Methods of Financial Statements, etc.” (Ordinance of the Ministryof Finance No. 59 of 1963. from now on referred to as “Ordinance on Financial Statements”).
The Company is a special company submitting financial statements and preparing financial statements
under Article 127 of the Ordinance on Financial Statements.
2

Audit Certification
Under the provisions of Article 193-2 item 1 of the Financial Instruments and Exchange Law, the Company
has undergone an audit by Deloitte Touche Tohmatsu LLC of the consolidated financial statements for the
consolidated fiscal year (from April 1, 2022, to March 31, 2023) and the non-consolidated financial statements
for the business year (from April 1, 2022, to March 31, 2023).

3

Special efforts to ensure the appropriateness of consolidated financial statements, etc. and the establishmentof a system that enables the proper preparation of consolidated financial statements, etc. based on IFRSThe Company makes special efforts to ensure the appropriateness of its consolidated financial statements. It
maintains a system that prepares consolidated financial statements appropriately under IFRS. The contents are
as follows.
(1) To appropriately understand the content of accounting standards, etc., and to develop a system that canadequately respond to changes, etc., in accounting stands, etc., the Company joined Financial AccountingStandards Foundation and participated in seminars, etc., sponsored by the foundation and auditing firms,
etc.
(2) In applying IFRS, the Company obtained press releases and statements issued by the International
Accounting Standards Board from time to time to keep track of the latest standards. To prepare theappropriate consolidated financial statements by IFRS, the Group has designed its accounting policies
and guidelines and applies them to accounts processing.

－ 4 －1 【Consolidated financial statements and Notes to consolidated financial statements】(1) Consolidated financial statements① Consolidated statement of financial position
Note

Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Millions of yen

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

8, 33

5,677

Trade and other receivables

9, 33

493

540

Other financial assets

10, 3315,151

9,507

Inventories

11

1,089

991

Other current assets

12

455

308

22,865

19,147

Total current assets

7,801

Non-current assets
13, 18430

430

Property, plant and equipment

13

13,416

13,406

Right of use assets

18

499

546

Goodwill

14

2,070

2,531

Intangible assets

14

76

80

Investment accounted for using equity method

15

435

240

Other financial assets

10, 33

9,571

13,641Other non-current assets

12

105

166

26,602

31,04049,46750,187

Operating lease assets

Total non-current assets
Total assets

－ 5 －

Note

Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Millions of yen

Millions of yen

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

19, 33

Bonds and borrowings

17, 31, 33

34

89

Lease liabilities

18, 31, 33

118

147

22

259

365

828

1,291

Other current liabilities

418

Total current liabilities

690

Non-current liabilities
Bonds and borrowings

17, 31,33

34

21

Third-party interests in CEJ Fund

31, 33, 34

3,629

4,792

Lease liabilities412

18, 31, 33

389

Provisions

21

96

96

Deferred tax liabilities

16

1,040

1,577

Other non-current liabilities—

14

Total non-current liabilities

5,189

6,913

6,017

8,204

Total liabilities
EquityShare capital

23

10

10

Capital surplus

23

42,86942,877

Treasury shares

23

(0)

(1,188)Other components of equity
Retained earnings

32, 33(1,145)

(979)

23

1,679

1,381

43,413

42,101

38(118)

43,45041,98349,46750,187

Total equity attributable to owners of theparentNon-controlling interests
Total equity
Total liabilities and equity－ 6 －② 【Consolidated statement of profit or loss and consolidated statement of comprehensive income】【Consolidated statement of profit or loss】
Note

Revenue
Cost of sales

Previous consolidated fiscal year (FromApril 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

6, 25

2,150

3,289

11, 18, 20, 26(688)(1,498)

1,462

1,791

18, 20, 26

(713)

(735)

18, 20, 26(1,797)(2,406)(2,509)(3,140)175

212

Gross profit
Selling, general and administrative expenses
Research and development expenses
Other selling, general and administrative
expenses
Total selling, general and administrative
expenses
Other income
Other expenses

27
27

Operating profit (loss)

(6)

(8)

(878)

(1,145)

Finance income

28, 33398

1,312

Finance costs

33

(4)

(193)

Gains related to CEJ Fund
Share of profit (loss) of investments
accounted for using equity method

34

115

274

15

(19)

(195)

(389)

53

(133)

(446)

(522)

(393)

Owners of parent

(498)

(298)

Non-controlling interests

(24)

(95)

Profit (loss)

(522)

(393)

Profit (loss) before tax
Income tax expense

16

Profit (loss)

Profit (loss) attributable toEarnings (loss) per share
Basic earnings (loss) per share (yen)30(2.32)(1.39)

Diluted earnings (loss) per share (yen)30(2.32)(1.39)－ 7 －【Consolidated statement of comprehensive income】
Note

Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Profit (loss)

(522)

(393)

(20)

36

(20)

36

149

134

149

134

129

170

(393)

(223)

Owners of parent

(371)

(131)

Non-controlling interests

(22)

(91)

Comprehensive income

(393)

(223)

Other comprehensive income
Items that will not be reclassified to
profit or loss
Financial assets measured at fair value through othercomprehensive income
Total of items that will not be reclassified to profit orloss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operation

29,33

29

Total of items that may be reclassified to profit or loss
Total other comprehensive income, net of tax
Comprehensive income

Comprehensive income attributable to－ 8 －③ 【Consolidated statement of changes in shareholders’ equity】
Equity attributable to owners of parent
Other components of equity

Share capital

Capital surplus

Treasury shares

Millions of yen
10
－
－
－
－

Millions of yen
42,861－－－
8

Millions of yen
(0)
－
－
－
－

Financialassetsmeasured atfair value
through othercomprehensive
incomeMillions of yen(1,286)
－
(20)
(20)
－

－

－

－

－

－

－

－

－

－

－

－

－

－
10
－
－
－
－
－

8
42,869
－
－
－
8
－

－

－

－

(0)
－
－
－
－
(1,188)(1,306)
－
36
36
－
－

142
－
130
130
－
－

－
19
－
－
－
－
－

－

－

－

－

－

－

－

－

－

－

－

－

－
－
10

－
8
42,877－(1,188)(1,188)

－
－

－
－
272

－
－
19

Note

April 1, 2021
Profit (loss)
Other comprehensive income
Total comprehensive income
Share-based payment transaction
Equity transaction with noncontrolling interest
Increase (decrease) by businesscombination
Total transactions with owners
March 31, 2022
Profit (loss)
Other comprehensive income
Total comprehensive income
Share-based payment transaction
Acquisition of treasury shares
Equity transaction with noncontrolling interest
Increase (decrease) by businesscombination
Other
Total transactions with owners
March 31, 2023

32

32
23

－ 9 －

(1,270)Exchangedifferences ontranslation offoreign
operations

StockacquisitionrightsMillions of yen
(6)
－
147
147
－

Millions of yen
19
－
－
－
－

Equity attributable to owners of parent
Non-controllinginterests

Total equity

Millions of yen
10
(24)
2

Millions of yen
43,786
(522)
129

(498)
－

Millions of yen
43,776
(498)
127
(371)
8

(22)
－

(393)
8

－

－

－

8

8

－

－

－

41

41

－
(1,145)
－
166
166

－
1,679
(298)
－
(298)

8

49

58

43,413
(298)
166
(131)

38
(95)
4
(91)

43,450
(393)
170
(223)

32

－

－

8

－

8

23

－

－

(1,188)－(1,188)

－

－

－

9

9

－

－

－

(75)

(75)

－

－

－
(979)

－
1,381

－
(1,180)2(65)

2(1,244)

42,101(118)

41,983

Note

April 1, 2021
Profit (loss)
Other comprehensive income
Total comprehensive income
Share-based payment transaction
Equity transaction with noncontrolling interest
Increase (decrease) by businesscombination
Total transactions with owners
March 31, 2022
Profit (loss)
Other comprehensive income
Total comprehensive income
Share-based paymenttransaction
Acquisition of treasury shares
Equity transaction with noncontrolling interest
Increase (decrease) by businesscombination
Other
Total transaction with owners
March 31, 2023

Other
components ofequityTotal
Millions of yen(1,272)
－
127
127
－

32

Retainedearnings

Total

Millions of yen
2,177
(498)
－

－ 10 －

④ 【Consolidated statement of cash flows】
Note

Previous consolidated fiscal year
(From March 31, 2021 to March 31, 2022)

Current consolidated fiscal year
(From March 31, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
13, 14, 18
Finance income
28, 33Finance costs
33
Losses (gains) on CEJ Fund
34
Share of loss of investments accounted for using
15
the equity method
Decrease (increase) in inventories
Decrease (increase) in trade and otherreceivables
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund
Payments for administrative expenses etc.
34
related to CEJ Fund
Cash flows from operating activities
Cash flows from investing activities
Purchase of investments
Proceeds of redemption of investments
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
13
Purchase of intangible assets
14
Purchase of investment securities
33
Proceeds from sale of investment securities
33
Purchase of stock of subsidiaries with change of7
scope of consolidation
Payments for loan receivables
Collection of loans receivable
Other
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Repayments of long-term borrowings
31
Purchase of treasury shares
31
Lease liabilities paid
18, 31
Contributions into CEJ Fund from third-party
31
investors
Other
31
Net cash provided by (used in) financing
activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of fiscal
8
year
Cash and cash equivalents at end of year8

－ 11 －

(389)
482
(398)
4
(115)

53
627
(1,312)
193
(274)

19

195

(281)

98

29

(275)

(61)
187
(521)
16
(2)
53

379
261
(55)
20
(0)
2

(110)

(110)

(564)

(143)

(19,499)
26,000(2,500)－(1,770)(6)(1,848)－(15,000)
18,000(2,000)
4,500
(451)
(58)
(3,309)556(2,008)

(23)

(139)
－
(18)

(69)
13
14

(1,788)

2,173

(47)
－
(68)

(12)
(1,188)
(153)

1,360

1,380

3

(13)

1,248

14

77

80

(1,027)

2,124

6,704

5,677

5,677

7,801

【Notes to consolidated financial statements】
1. Nature of operationsCYBERDYNE, INC. (the "Company") is a company domiciled in Tsukuba, Ibaraki, Japan. The location of the Company's
headquarters and its main offices are disclosed on the Company website (https://www.cyberdyne.jp/english). The
accompanying consolidated financial statements comprise the Company, its group companies (with the Company,
collectively referred to as the "Group"), associates, and jointly controlled entities. The fiscal year is from April 1 to March
31.
The Group utilizes Cybernics to work on the entire process, from basic research of innovative technologies to theirsocial implementation, which could contribute to overcoming various problems that modern society faces. At the sametime, the Group will continue its endeavors to create new industries and nurture human resources, to induce an upward
spiral of innovation and shape the future. The Group operates under a single segment of business related to robotics,
detailed in "6. Segment information".
2. Basis of presentation(1) Conformance of consolidated financial statements with IFRS and matters regarding the first-time adoption
As the Group meets the requirement of "Specified Company Applying Designated International Reporting Standards"
under Article 1-2 of the "Ordinance on terminology, forms and preparation methods of consolidated financial
statements" (Ordinance of the Ministry of Finance No. 28 of 1976, referred to as the "Ordinance"), the consolidated
financial statements of the Group have been prepared by International Financial Reporting Standards ("IFRS") as
permitted by the provisions of Article 93 of the Ordinance.
The consolidated financial statements under review have been approved by Yoshiyuki Sankai, President and CEO of
the Company, as well as Shinji Uga, Director and Head of the Corporate Department of the Company, on June 30,2023.
(2) Basis of measurement
As detailed in Note "3. Significant accounting policies", consolidated financial statements of the Group have been
prepared based on the acquisition cost, except for specific financial instruments and others measured at fair value.
(3) Functional currency and presentation currency
The consolidated financial statements of the Group are presented in Japanese yen, which is the Company's functional
currency, rounded to the nearest million yen.
(4) Changes in Presentation Methods(Consolidated statement of financial position)
Advances received related to rental maintenance and sales contracts, which were included in "Other current liabilities"
in the previous fiscal year, are included in "Trade and other payables" in the current fiscal year to enhance clarity in the
consolidated statement of financial position. The consolidated financial statements for the previous fiscal year havebeen reclassified to reflect this change in presentation. As a result, ¥117 million included in "Other current liabilities"
in the consolidated statement of financial position for the previous fiscal year has been reclassified as "Trade and otherpayables".
(Consolidated Statement of cash flows)
Advances received related to rental maintenance and sales contracts, which were included in "Other" in "cash flow
provided by operating activities" in the previous fiscal year, are included in "Increase (decrease) in trade and otherpayables" in the current fiscal year to enhance clarity in the consolidated statements of cash flows. The consolidated
financial statements for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, ¥15 million included in "Other" under "Cash flows from operating activities" in the consolidated
statements of cash flows for the previous fiscal year has been reclassified as "Increase (decrease) in trade and otherpayables.

－ 12 －

3. Significant accounting policies(1) Basis of consolidation① Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it has exposure, or rights, tovariable returns from involvement with an investee and could affect those returns through its power over theinvestee.
The financial statements of subsidiaries are included in the consolidated financial statements of the Group from thedate the Group gains control until the date it loses control of the subsidiary.
Some of the subsidiaries has a close date of December 31. Due to the relationship with other shareholders andagreements of contract, it is impossible to practically unify the closing date for these subsidiaries. As such, thesesubsidiaries are subject to provisional settlements of accounts on March 31, and the Group utilizes these accounts for
its consolidated financial statements.
All intergroup balances, transactions, income and expenses and unrealized gains and losses arising from intergrouptransactions are eliminated in preparing the consolidated financial statements.
Comprehensive income of subsidiaries is attributed to owners of the parent and to the non-controlling interests
even if this results in the non-controlling interests having a deficit balance.
A change in the Group's ownership interest in a subsidiary, without a loss of control, is accounted for as an equity
transaction. Any difference between the amount by which the non-controlling interests are adjusted and the fair valueof the consideration paid or received is recognized directly in equity attributable to the owners of the parent.
In case of a change in the Group's ownership interest in a subsidiary, resulting a loss of control, profit or losses
arising from the loss of control is recognized as net loss.
② Associates
An associate is defined as an entity over which the Group has significant influence on financial and operating policy
decision but does not have control over the entity.
The Group is presumed to have significant influence over another entity when it holds at least 20%, but no morethan 50% of the voting rights of that entity.
Investments in associates are accounted for by equity method from the date the Group gains significant influence
until the date it loses that influence.
If the Group's share of the associates' loss (amount equivalent to equity interest) exceeds the Group’s share of theinvestment in the associate, the Group reduces the carrying amount of the investment to zero and does not recognize
any further losses unless the Group incurs or pays obligations (legal or constructive obligations) on behalf of theassociate.
Any excess of the cost of acquisition over identifiable assets, liabilities and contingent liabilities of the associates
at the date of acquisition are recognized as goodwill and it shall be included in the carrying value of the investment.
As the relevant goodwill is not recognized separately, it shall not be tested for impairment on individual basis.
However, if there is objective evidence on possibility of impaired investment, the Group shall test its investment toassociates for impairment by recognizing the investment as single asset in net amounts.
③ Joint venture
Joint venture is an entity jointly controlled by two or more parties including the Group under the contractually agreed
share of control of an arrangement over economic activity of the joint venture, which exist only when decision forstrategic, financial and operating decisions related to relevant activities require unanimous consent of the parties
sharing control. A joint venture of the Group is accounted for using the equity method.
Some of the joint venture has a close date of December 31. Due to the relationship with other shareholders andagreements of contract, it is impossible to practically unify the closing date for the said joint venture. As such, theGroup makes adjustments to important transaction and event during the period, in order to reflect the impact ofchanges caused by the difference of close dates.

－ 13 －

(2) Business combinations
Business combinations are accounted for using the acquisition method. The consideration of an acquisition is measured
as the aggregate of the acquisition-date fair value of the assets transferred, liabilities assumed, and equity securities
issued by the Group to the former owners of the acquiree in exchange for control of acquiree. Any excess of theconsideration over the net fair value of identifiable assets acquired and liabilities assumed at the acquisition date isrecognized as goodwill in the consolidated statement of financial position. Conversely, any deficit is immediately
recognized as income in the consolidated statement of income.
Costs associated with business combinations, such as advisory fees, attorney fees and due diligence costs, areexpensed as incurred.
If the initial accounting for a business combination is incomplete by the end of the fiscal year in which the
combination occurs, provisional amounts of incomplete items are measured, which are adjusted during the measurement
period within one year from the date of acquisition. During the measurement period, the Group shall retrospectively
adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts andcircumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts
recognized as of that date. If this new information brings about new recognition on assets and liabilities, it will berecognized as additional assets and liabilities. Measurement period could last no longer than one year from the date ofacquisition.
The additional acquisition of non-controlling interests is accounted for as an equity transaction, and therefore no
goodwill is recognized with respect to such transaction.
Identifiable assets and liabilities of the acquiree in business combinations are measured at their acquisition-date fairvalue, with the following exceptions:・Deferred tax assets and liabilities and assets or liabilities related to employee benefit arrangements
・Share-based payment transactions of the acquire・Non-current assets and disposal groups that are classified as held for sale in accordance with IFRS 5 “Non-current
assets held for sale and discontinued operations”
In a business combination achieved in stages, the Group re-measures its previously held equity interest at theiracquisition-date fair value and recognizes resulting gain or loss, if any, in new profit or loss.
(3) Foreign currency transaction① Foreign currency transactions
Foreign currency transactions are translated into the functional currency of each company of the Group at the spot
exchange rate at the date of the transaction, or an exchange rate that approximates the spot rate.
Foreign currency monetary items are translated into the functional currency using the rates at the end of reporting
period.
Non-monetary items that are measured at fair value in foreign currencies are translated into the functional currency
using the exchange rates at the date when the fair value was measured.
Exchange differences arising from such translations and settlements are recognized in profit or loss. However,exchange differences arising from financial assets measured at fair value through other comprehensive income arerecognized in other comprehensive income.
② Financial statements of foreign operations
Assets and liabilities of foreign operations are translated at the rate at the end of each reporting period. Income andexpenses are translated at the average exchange rates for the period, provided that there were no significant
fluctuations in the exchange rates during the period. Exchange differences arising from translation of the financial
statements of foreign operations are recognized in other comprehensive income. On the disposal of a foreign
operation, the cumulative amount of exchange differences relating to that foreign operation is reclassified fromequity to profit or loss when the gain or loss on disposal is recognized.

－ 14 －

(4) Financial instruments① Financial assets(i) Initial recognition and measurement
The Group classifies the financial assets it holds as financial assets measured at fair value through profit or loss,
financial assets measured at fair value through other comprehensive income, or financial assets measured atamortized cost. This is classified upon initial recognition.
The Group recognizes and derecognizes all financial assets on trade date where the purchase or sale of afinancial asset under a contract whose terms require delivery of the financial asset within the timeframe establishedby the market concerned, and are initially measured at fair value, plus transaction costs except for those financial
assets classified at fair value through profit or loss, which are initially measured at fair value.
Financial assets held by the Group are measured at amortized cost if both of the following conditions are met.
・The financial asset is held in a business model whose objective is to hold financial assets in order to collectcontractual cash flows
・The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
Equity instruments that are not measured through amortized cost are classified as equity instruments measured
at fair value.
Excluding equity instruments measured at fair value through profit or loss that is held for trading, for eachindividual equity items, the Group designates whether it shall be measured at fair value through profit and loss or,whether it shall be measured at fair value through comprehensive income. This designation is continuously used
after the initial designation.
(ii) Subsequent measurement
Measurement of financial assets after initial recognition is performed according to the classification of financial
asset as follows:(a) Financial assets measured at amortized cost
The carrying amounts of financial assets measured at amortized cost are recognized using the effective interest
method.
(b) Financial assets measured at fair value
These financial assets are measured at fair value after initial recognition, and changes in their fair value arerecognized in profit or loss.
However, for financial assets designated as financial assets measured at fair value through comprehensive
profit, the Group recognizes changes in their fair value as other comprehensive income. Dividends from equity
instruments measured at fair value through other comprehensive income are recognized as financial income inprofit or loss.
(iii) Derecognition of financial assets
The Group derecognizes financial assets only when the contractual rights to the cash flows from the financial
assets expire, or when the Group transfers financial assets. In cases where the Group continue to possessownership over the transferred asset, it shall be recognized as liability related to the asset within the range ofownership held, so long as this ownership continues to remain in effect.

－ 15 －

(iv) Impairment of financial assets
With respect to impairment of financial assets measured at amortized cost, the Group recognizes allowance for
doubtful accounts for expected credit losses on such financial assets.
At each reporting date, the Group assesses whether the credit risks on the financial assets have increased
significantly since initial recognition.
If credit risk on a financial instrument has not increased significantly since initial recognition, the allowance for
doubtful accounts for that financial instrument is measured at an amount equal to the 12-month expected credit
losses. If credit risk in a financial instrument has increased significantly since initial recognition, the allowance for
doubtful accounts is measured in an amount equal to the lifetime expected credit losses.
The Group determines if credit risk has increased significantly by evaluating changes in default risk withreference to factors including downgrading of internal credit ratings, the decline of counterparty results anddelinquency information.
Furthermore, if the credit risk is determined to be low as of the closing date, the Group shall assess that credit
risk on a financial instrument has not increased significantly since the initial recognition.
However, the allowance for doubtful accounts on trade receivables and others is always measured in an amountequal to the lifetime expected credit losses.
The expected credit losses of financial assets are estimated in a way that reflects the following:
・An unbiased and probability-weighted amount determined by evaluating a range of possible outcomes
・The time value of money
・Reasonable and supportable information about past events, current conditions and forecasts of economic
conditions that is available without undue cost or effort at the reporting date
The amounts of these measurements are recognized in profit or loss.
If an event that reduces an impairment loss occurs after the impairment loss has been recognized, theimpairment loss will be reversed to the extent of the decrease and credit to profit or loss.
② Financial liabilities(i) Initial recognition and measurement
The Group classifies financial liabilities as either financial liabilities measured at fair value through profit or loss,
or financial liabilities measured at amortized cost. This is classified upon initial recognition.
All financial liabilities are measured at fair value. However, financial liabilities measured at amortized cost aremeasured in the full amount after deducting directly attributable transaction costs from the fair value.
(ii) Subsequent measurement
Measurement of financial liabilities after initial recognition is performed as follows, according to the classificationof the financial liabilities.
Financial liabilities measured at amortized cost are subsequently measured at amortized cost using the effective
interest method.
Amortization using the effective interest method and gains and losses on derecognition are recognized in profit
or loss for the period.
(iii) Derecognition of financial liabilities
The Group derecognizes financial liabilities when they are extinguished (i.e., when the obligation specified in thecontract discharged or cancelled or expires).
③ Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is presented in the consolidated statement offinancial position only when the Group currently has a legally enforceable right to set off the recognized amount andintends either to settle on a net basis or realize the assets and settle the liabilities simultaneously.
④ Fair value of financial instruments
For financial instruments measured at fair value, their fair value is classified into Level 1 through Level 3 based on
the observability of inputs used for the measurement and their materiality.
Level 1: Quoted prices in active markets for identical assets or liabilities (unadjusted)
Level 2: Fair value determined using observable prices other than Level 1 for the asset or liability directly or
indirectly
Level 3: Fair value determined using the valuation technique including unobservable inputs for the asset or liability－ 16 －

(5) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments that are highly liquid
and readily convertible to known amounts of cash subject to an insignificant risk of changes in value, and that mature or
become due within three months from the date of acquisition.
Cash and cash equivalents include certificates of deposit and joint-managed money trust.
(6) Inventories
Inventories are measured at the lower of cost and net realizable value. Cost of finished goods as well as work in process
are calculated using specific identification method and purchase cost. Merchandise and raw materials are calculatedusing moving average method. These include processing cost and all other costs incurred in bringing the inventories totheir existing location. Net realize value is estimated selling price in the ordinary course of business less the estimatedcosts of completion and the estimated costs necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are carried at cost less any accumulated depreciation and impairment losses.
The cost of an item of property, plant and equipment comprises any costs directly attributable to the acquisition of theasset and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it islocated.
Depreciation of assets other than land and construction in progress is calculated on a straight-line basis over theestimated useful lives of the assets. The estimated useful lives of major asset items are as follows:
Buildings and structures:
3 to 50 years
Operating lease assets
5 years
Tools, furniture and fixtures:
2 to 20 years
The estimated useful lives, residual value and depreciation method are reviewed at each fiscal year end, and any
revisions are applied prospectively as changes in accounting estimates.
(8) Intangible assets① Goodwill
The measurement of Goodwill arising from business combination at the time of initial recognition is stated in “2.
Business combinations.”
Goodwill is not amortized but is tested for impairment annually or whenever there is an indication of impairment.
The goodwill impairment test and measurement of impairment loss are described in “10. Impairment of nonfinancial assets.”
Goodwill is presented in the consolidated statement of financial position as the amount obtained by deducting
accumulated impairment loss from the acquisition cost.
② Intangible assets
Intangible assets acquired separately are measured using acquisition cost at the initial recognition.
After initial recognition, with the exception of intangible assets with indefinite useful life, intangible assets areamortized on a straight basis over their estimated useful lives and are presented at acquisition cost reduced by theaccumulated depreciation and the accumulated impairment loss.
Expenditures related to internal generated intangible assets are recognized as expenses when incurred, with the
exception of development expenses that meet the criteria for capitalization.
The Group has no intangible assets with indefinite useful lives. The estimated useful lives of major intangible
assets are as follows:
Software5 years
Patents
8 years
Customer-related assets 3 years
The estimated useful lives, residual values and amortization method are reviewed at each fiscal year end, and any
revisions are applied prospectively as changes in accounting estimates.

－ 17 －

③ Research and development expenses
Research expenditures are expensed as incurred. Development expenditures are capitalized only if they can bemeasured reliably, future economic benefits are probably, and the Group intends to, and has sufficient resources to,complete development and to use or sell assets.
(9) Leases
The Group determines whether a contract is a lease or includes a lease at the time the contract is entered into. If thecontract conveys the right to control the use of the identified asset for a period of time in exchange for consideration, thecontract is considered to be a lease or to contain a lease.
Leases as lessee
Right-of-use assets and lease liabilities are recognized at the start date of the lease.
Right-of-use assets are initially measured at acquisition cost, which is obtained by adjusting the amount of the initial
measurement of the lease liability according to any lease payments made at or before the commencement date, any initial
direct costs that were incurred, etc.
After initial recognition, right-of-use assets are depreciated using the straight-line method over the shorter period of
the following, useful lives or lease terms. The lease term is measured as the period that includes the non-cancelable
period of the lease, the extended option period if it is reasonably certain that the lease will be exercised, and thecancellation option period if it is not reasonably certain that the lease will be exercised.
Lease liabilities are initially measured at the present value, which is the total amount of lease payments payable
discounted at the rate of interest on the lease or the rate of interest on additional borrowings of the lessee.
Lease payments are allocated to finance costs and the repayment of lease liabilities using the interest method, withfinance costs recognized in the consolidated statement of profit or loss.
For short-term leases with 12 months or less or leases with small underlying assets, right-of-use assets and leaseliabilities are not recognized, and lease payments are amortized over the lease term by the straight-line method or otherregular methods.
Leases as lessor
Leases for which the Group is the lessor are classified as finance leases or operating leases at the point where the lease
contract becomes effective.
When the Group classifies leases, the Group conducts comprehensive evaluates whether all of the risks and economic
values associated with ownership of the underlying asset are substantially transferred. If they are transferred, the lease isclassified as a finance lease and if they are not transferred, the lease is classified as an operating lease. As part of thisevaluation, the Group considers certain indicators, such as whether the lease period based on the non-cancelable period
accounts for the majority of the economic useful life of the underlying asset.
Lease payments under operating leases are recognized as revenue in the consolidated statement of profit or loss on astraight-line basis over the lease term. Units such as HAL that are leased as operating leases are presented as operatinglease assets in the consolidated statement of financial position. Please refer to Note "3. Significant accounting policies, 7.
Property, plant and equipment" for further details.
In finance lease transactions, when the Group becomes a lessor who is a manufacturer or a seller, the Group
recognizes income, cost of sales, and gains or losses on sales, in accordance with its policy for outright sales to which
IFRS 15 applies, on the commencement date. Please refer to Note "25. Revenue".
Leases are classified as finance leases when substantially all the risks and rewards incidental to ownership of assets
are contractually transferred to the Group. All the other leases are classified as operating leases.

－ 18 －

(10) Impairment of non-financial assets
Non-financial assets excluding inventories are assessed at the end of each reporting period to determine whether there is
any indication of impairment. If there is an indication of impairment, the recoverable amount of the asset is estimated.
A cash-generating unit, which is a unit for conducting impairment testing, is the smallest group of assets that generates
cash inflows that are generally independent of cash flows of other assets or groups of assets.
Recoverability is measured, first by using the higher of fair value after deducting disposal costs and value in use as
recoverable amount. If the recoverable amount is less than the carrying amount, the carrying amount is reduced to therecoverable amount and the amount is recognized as an impairment loss in profit or loss. When testing goodwill for
impairment, the cash-generating units to which goodwill is allocated are consolidated so that impairment is tested toreflect the smallest unit to which goodwill relates. Goodwill acquired through a business combination is allocated to
cash-generating units that are expected to generate synergies from the combination. An impairment loss recognized inconnection with a cash-generating unit is allocated first to reduce the carrying amount of goodwill allocated to that unit,
and then to reduce the carrying amount of other assets in the cash-generating unit proportionally. Value in use is thepresent value of future cash flows expected to accrue from the asset or cash-generating unit.
Impairment losses related to goodwill have not been reversed. As for the reversal of impairment losses on the otherassets or cash-generating units, if there is an indication at the end of each reporting period that an asset or cashgenerating unit that has incurred an impairment loss in a prior period may have either disappeared or decreased, therecoverability of the asset or cash-generating unit is assessed. In cases where the recoverable amount exceeds the
carrying amount of assets or cash generating units, the Group shall reverse the impairment loss at the maximum of theamount calculated by deducting the depreciation and amortization necessary from the carrying amount that would havebeen determined if no impairment loss had previously been recognized in the prior year.
(11) Employee benefits
Short term employee benefit obligations are measured on an undiscounted basis and are recognized as an expense when
the related services are rendered. For bonuses, when there is a present legal or constructive obligation to make paymentsof bonuses, and a reliable estimate of the obligation can be made, the estimated amount to be paid is accounted for as aliability.
Paid leave expenses are recognized as expenses when labor that grants an employee with additional rights to paid
leave are incurred.
(12) Share-based payment① Stock options
The Company has a stock option scheme accounted for as an equity-settled share-based payment scheme. Equitysettled share-based payment scheme is estimated at fair value of the date of allotment, taking estimated number ofsubscription rights to share that is likely to be vested into the account. It is recognized as an expense in the
consolidated statement of profit or loss from the date of allotment through the vesting period and the same amount as
an increase in asset in the consolidated statement of profit and loss. Fair value of the allotted option is calculated
mainly by Black-Scholes Model, taking the conditions of the option into the account. Furthermore, the conditions ofstock options are reviewed on regular basis and estimate of subscription rights to share are adjusted where necessary.
② Shares with transfer restriction
The Group has adopted shares with transfer restriction as compensation plan for its employees.
Consideration received for services is recognized as an expense by straight-line method over certain period from theday of allotment and an equal amount is recognized as an increase in capital.
(13) Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a
reliable estimate can be made of the amount of obligation. Where time value of money is material, a provision ismeasured by its present value to which estimated future cash flows are discounted using a pre-tax discount rate thatreflects the risks specific to the provision. Interest cost associated with the passage of time is recognized as finance costs.

－ 19 －

(14) Revenue
The Group recognizes revenue based on the following five-step model, excluding revenue from dividend and interest
income based on IFRS 9 "Financial Instruments".
Step 1: Identify the contract 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 the entity satisfies a performance obligation
Details on recognition of revenue are stated in Note "25. Revenue".
(15) Government grants
Government grants are measured and recognized at fair value, when there is reasonable assurance that the Group willcomply with the conditions attaching to them and that the grants will be received. Group fulfills the incidental condition
for grants and receives reasonable assurance that the grants are scheduled for delivery.
For government grants related to expenses items, related costs that will be compensated by grants are recognized over
the recognized term as revenue on regular basis. Grants related to assets is calculated by deducting the amount ofrelevant grants from the acquisition cost of assets.
(16) Income taxes
Income taxes consist of current income taxes and deferred income taxes. Income taxes are recognized as income or
expenses and included in profit or loss, except for taxes related to business combinations and taxes related to items thatare recognized directly in equity or in other comprehensive income.
Current income taxes are recognized in the amount of the expected taxes payable to or receivable from the taxation
authorities. Calculation of the amount of tax is based on the tax rates and tax laws enacted or substantively enacted by
the end of the reporting period in countries.
Deferred tax assets and liabilities are recognized for temporary differences between the carrying amounts of assets or
liabilities at the end of the reporting period and its tax base, and for tax loss carryforwards and tax credits.
Deferred tax assets and liabilities are recognized for the following temporary differences:
・Taxable temporary differences arising from initial recognition of goodwill
・Temporary differences arising from initial recognition of assets and liabilities from transactions that are notbusiness combinations and affect neither accounting income nor taxable income
・Taxable temporary differences associated with investments in subsidiaries and associates where the timing of thereversal of the temporary differences will not reverse in the foreseeable future or where it is no longer probable thatsufficient tax profit subject to taxable temporary difference will be available.
・Taxable temporary differences associated with investments in subsidiaries and associates where the timing of thereversal of the temporary differences can be controlled and it is probable that the temporary differences will notreverse in the foreseeable future.
The carrying amount of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be
recovered. Unrecognized deferred tax assets are reassessed at each reporting period and are recognized to the extent thatit has become probable that future taxable profits will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rate that are expected to apply to the period when the assets
are realized or the liabilities are settled, based on the tax rates and tax laws enacted or substantively enacted by the endof the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same tax authority, or on different
taxable entities that intend either to settle current tax assets and liabilities on a net basis, or to realize the assets and settle
the liabilities simultaneously.

－ 20 －

(17) Earnings per share
Basic earnings per share are calculated by dividing profit (loss) attributable to owners of the parent by the weighted
average number of ordinary shares outstanding during the period, adjusted for treasury shares held. Diluted earnings per
share are calculated by adjusting the effects of all dilutive potential ordinary shares.
(18) Equity and other capital① Common shares
Common shares issued by the Company are recognized in share capital and capital surplus at their issue price. Shareissuance costs are deducted from the issue price.
② Treasury shares
When a treasury share is acquired, consideration received including direct transaction cost is recognized as deducted
items from equity. When a treasury share is sold or re-issued, consideration received is recognized as increase incapital. Surplus and deficit generated by this transaction are presented as capital surplus.

－ 21 －

(19) Significant accounting policy related to Cybernic Excellence Japan Fund 1 Investment Limited Partnership① Consolidation of Cybernic Excellence Japan Fund 1 Investment Limited Partnership by the Company
The Company consolidates Cybernic Excellence Japan Fund 1 Investment Limited Partnership (“CEJ Fund”) due to thefollowing reasons.
The Company practically makes decision of investment of CEJ Fund through the Companies consolidated subsidiary
CEJ Capital, Inc. (general partner "GP" of CEJ Fund) thus the Company has the control. As an GP, CEJ Capital, Inc.
receives the performance fee and the Company receives returns based on the performance according to its contribution
as Limited Partner ("LP") of CEJ Fund. As the Company has the power over the CEJ Fund to influence the return, theCompany has the control based on IFRS 10 "Consolidated Financial Statements".
Inter-company transactions such as management fees and performance fees to CEJ Capital, Inc., GP of CEJ Fund, tobe paid from CEJ Fund are eliminated in consolidation.
② Investment by CEJ FundFor financial instruments measured at fair value, with the exception of financial assets that are held for trading purposesthat must be measured at fair value through profit or loss, for each individual financial instruments, the Group classifies
each individual capital-based financial assets to either financial assets measured at fair value through profit or loss or
financial assets measured at fair value through other comprehensive income. The same classification is applied
continuously.
③ Contribution from Limited Partners (“LP”) to CEJ FundCEJ Fund will issue capital calls for its respective LP ("Capital Call")(a) Contribution from LP other than the Company
The term of existence (up to 12 years from the effective date) is prescribed in the investment limited partnershipagreement of the CEJ Fund. In this agreement, it is stated that equity interests in the CEJ Fund held by LPs otherthan the Company (hereinafter, “Third-Party Investors”) that invest in CEJ Fund shall be distributed and refunded.
As such it is recorded as a liability under “Third-party interests in CEJ Fund” in the consolidated statement offinancial position and classified as “financial liabilities measured at amortized cost”. The carrying amounts of theliabilities is the amount of equity vested in Third-Party Investors under the limited partnership agreement forinvestment assuming that the Fund was liquidated at the end of each quarter.
“Third-party interests in CEJ Fund” is subject to change depending on payments from Third-Party Investors basedon Capital Call, distributions and refunds to Third-Party Investors, and the performance of the CEJ Fund. Changes
in the performance of the CEJ Fund are included in “Gains (losses) related to CEJ Fund” in the consolidated
statement of profit or loss. “Gains (losses) related to CEJ Fund” includes the costs of establishing and managing the
CEJ FundContribution from Third-Party Investors are presented as "Contribution into CEJ Fund from third-party investors"
under cash flows from financing activities in consolidated statement of cash flow. Distribution and refunds to ThirdParty Investors are presented as "Amount distributed and refunded to Third-Party Investors" under cash flow fromfinancing activities.
(b) Contribution from the Company
Contribution from the Company to CEJ Fund as a LP is eliminated in consolidation.

－ 22 －

4. Significant accounting estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimatesand assumptions that affect the application of policies and reported amounts of assets, liabilities, income, expenses andrelated disclosures. Due to uncertain nature of estimates, in some cases actual results may vary from initial estimates.
The estimates and their underlying assumptions are reviewed by management on an ongoing basis. The effects ofrevisions to accounting estimates and assumptions are recognized in the period when the estimates are revised and in future
periods.
Estimates and assumptions that significantly affect the amounts recognized in the Group's consolidated financial
statements are as follows:・ Matters concerning financial instruments (Notes "3. Significant accounting policies, (4) Financial instruments", Notes"3. Significant accounting policies, (19) Significant accounting policy related to Cybernic Excellence Japan Fund 1
Investment Limited Partnership", Notes "10. Other financial assets", "33. Financial instruments" as well as "34. CEJ
Fund”)
15. Impairment of non-financial assets (“Note 3. Significant accounting policies, (10) Impairment of non-financial
assets)”, “13. Property, plant and equipment”, “14. Goodwill and intangible assets”, “15. Investments accounted forusing equity method”)
・ Useful lives of property, plant, and equipment, estimation of residual value (Note "3. Significant accounting policies,(7) Property, plant and equipment" as well as Note "13. Property, plant and equipment")・ Collectability of deferred tax assets (Note "16. Income taxes")
・Recognition of revenue (Note "3. Significant accounting policies, (14) Revenue", Note "25. Revenue")・Measurement of share-based payments (Note "32. Share-based payment")
・Equity interests in CEJ
・Estimates of measurement of equity from Third-Party in CEJ Funds (Note "3. Significant accounting policies, (19)Significant accounting policy related to Cybernic Excellence Japan Fund 1 Investment Limited Partnership")－ 23 －

5. New standards and interpretations not yet adopted
The following new or revised standards and interpretations were issued mainly by the date of approval of the consolidated
financial statements, but the Group has not early adopted any of them.
The impact of the application of these accounting standards is still being calculated.

IFRS

IAS 12

Income taxes

Mandatory effective date（start date）

Effective date for
the Group

Outline of
the establishment and revision

January 1, 2023

Clarify accounting for deferredFiscal year ending
taxes on leases and disposal
Marcch 31, 2023
obligations

6. Segment information(1) Summary of reportable segments
The Group's reportable segments are the components of the Group for which discrete financial information is available
and which are regularly reviewed by the Board of Directors in deciding how to allocate resources and in assessing theirperformance.
Since the Group operates under a single segment of business related to robotics, segment information is omitted.
(2) Revenue and results of reportable segments
Since the Group operates under a single segment, segment information is omitted.
(3) Information about Products and Services
Since the revenue of a single classification of products and services to outside clients exceed 90% of revenue in the
consolidated statement of profit or loss, segment information by product and service is omitted.
Note "25. Revenue" presents the details of revenue.
(4) Geographical information
Revenue to customers and non-current assets by region consist of the following:
Revenue to customers
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Japan

1,496

1,547

US

245

1,102

EMEA (Europe, Middle East and Africa)

191

271

APAC
Total

219

370

2,150

3,289

(Note) Revenue is classified by country or region based on the location of customers.

Non-current assets
Since the majority of non-current assets located in Japan the amount of non-current assets in the consolidated financial
position, non-current assets information by geographical area is omitted.
(5) Information about major customers
Information about major customers has been omitted as the revenue from each customer is less than 10% of the Group's
revenue.

－ 24 －

7. Business combination
The previous fiscal year (from April 1, 2021 to March 31, 2022)
there were no item to report(Acquisition of C2, Inc.)(1) Outline of business combination① Name of the acquired company and its business
Name of the acquired company
C2, Inc.
Outline of the business
Development / operation of in-house smartphone app "JUKUSUI”
Planning/ development / operation of web solution for smartphone② Acquisition dateAugust 31, 2021
③ Percentage of voting equity interest acquired
100%④ Main reason of the business combination
C2 Inc. is strong in the planning and development of healthcare applications for smartphones, and its self-developed
application "JUKUSUI". The app has been downloaded more than 3.2 million times and has 300,000 active users permonth, maintaining a high ranking among healthcare applications in Japan, with more than 75 million pieces ofaccumulated sleep data.
In addition to the wearable cyborg HAL, the Company has been working on functional expansion andcommercialization of its small vital sensors. The technology is for the prevention and early detection of various
diseases. The Company decided on this acquisition because adding C2 to its group will accelerate its business andincrease its corporate value in the healthcare field through the linkage of Cybernics Devices with C2's healthcare
applications, especially by utilizing the user base of "JUKUSUI. "⑤ Method of obtaining control of the acquired company
Acquisition of shares by cash(2) Fair value of the consideration paid, assets acquired, and liabilities assumed as of the acquisition dateAmountMillions of yen
Fair value of the consideration paid
Fair value of assets acquired and liabilities assumed
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Fair value of assets acquired and liabilities assumed (net)
Goodwill

731
116
91
(49)
(71)
88
643

(note) 1. Amount of acquisition-related expenses related to the business combination was ¥16 million. The entire amount
was recorded in "Selling, general and administrative expenses" in the consolidated statements of income.
2. Goodwill was generated from synergies with existing businesses and excess earning power expected from futurebusiness development.

－ 25 －

(3) Cash flows from acquisition
AmountMillions of yen
Consideration for acquisition of subsidiary731

Accounts payable - other(100)

Cash and cash equivalents paid for acquisition

631

Cash and cash equivalents in assets at acquisition of control
Payments for acquisition of subsidiaries

(70)
561

(4) Cash flows from acquisition
The Group's consolidated statements of profit or loss include revenue and net profit of ¥151 million and ¥4 million,
respectively, generated from C2, Inc. after the acquisition date.
(Acquisition of RISE Healthcare Group, Inc.)(1) Outline of business combination
Through its wholly owned U.S. subsidiary CYBERDYNE USA Inc., the Company acquired 80% of the outstanding
shares of RISE Healthcare Group, Inc, making the company consolidated subsidiary. Through RISE Healthcare Group,
Inc., the Company controls and manages RISE Physical Therapy, Inc., SoCal Elite Physical Therapy, Inc., and Tyler
Physical Therapy, Inc, making them consolidated subsidiary.
① Name of the acquired company and its business
Name of the acquired company RISE Healthcare Group, Inc.
Outline of the businessControl and manage RISE Physical Therapy, Inc., etc.
② Name of transferred subsidiary and its business
Name of the acquired company RISE Physical Therapy, Inc.
SoCal Elite Physical Therapy, Inc.
Tyler Physical Therapy, Inc.
Outline of the business
Medical institute (operation of outpatient physiotherapy clinic)③ Acquisition date
December 29, 2021
④ Percentage of voting equity interest acquired
80%⑤ Main reason of business combination
The Company conducted the business combination with RISE Healthcare Group, Inc. to develop a treatment service
business using HAL and speed up the dissemination of innovative Cybernics Treatment in the U.S., which is known tobe the largest market in the world.
⑥ Method of obtaining control of the acquired company
Acquisition of shares by cash

－ 26 －

(2) Fair value of the consideration paid, assets acquired, and liabilities assumed as of the acquisition dateAmountMillions of yen
Fair value of the consideration paid
Fair value of assets acquired and liabilities assumed
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Fair value of assets acquired and liabilities assumed (net)Non-controlling interests
Goodwill

1,380
172
219
(71)
(157)
163
(67)
1,285

(note) 1. Amount of acquisition-related expenses related to the business combination was ¥59 million. The entire amount
was recorded in "Selling, general and administrative expenses" in the consolidated statements of income.
2. Non-controlling interests are measured by the proportionate share of the acquiree's identifiable net assets at the dateof acquisition.
3. Goodwill was generated from synergies with existing businesses and excess earning power expected from futurebusiness development.
(3）Cash flows from acquisition
AmountMillions of yen
Cash and cash equivalents paid for acquisition

1,380

Cash and cash equivalents in assets at acquisition of control
Payments for acquisition of subsidiaries

(33)
1,347

(4）Impact on the business performance
The Group’s consolidated statement of profit or loss includes ¥225 million of revenue and ¥2 million of net profit
generated from the acquired company after the acquisition date.
Assuming that the business combination of C2, Inc., RISE Healthcare Group, Inc. and business transfer of each of thesubsidiaries had been executed at the beginning of the fiscal year, the revenue and net loss of the Group for the fiscal
year would have been ¥2,830 million and ¥436 million (loss), respectively. Please note that the pro forma
information is unaudited.
(Provisional accounting treatment for business combinations)With respect to C2, Inc., the allocation of acquisition cost was not completed in the previous consolidated fiscal year
and the amount was tentative but was finalized in the current consolidated fiscal year.
In accordance with the finalization of this provisional accounting treatment, the consolidated financial statements
for the previous consolidated fiscal year have been retrospectively adjusted. As a result, non-current assets and noncurrent liabilities increased by ¥52 million and ¥18 million, respectively, and goodwill decreased by ¥34 million,
compared with those before the retroactive adjustment.
The effect of the finalization of this provisional accounting treatment on profit and loss is immaterial.
The allocation of acquisition costs had not been completed for RISE Healthcare Group, Inc. acquired in theprevious fiscal year, and each subsidiary to be transferred in conjunction with the acquisition, and the amounts weretentative.
There are no revisions due to the finalization of this provisional accounting treatment.

－ 27 －

The current fiscal year (from April 1, 2022 to March 31, 2023)(Acquisition of LeyLine GmbH)(1) Outline of business combination(1) Name of the acquired company and its business
Name of the acquired company
LeyLine, GmbH.
Outline of the business
Operation/management of PETRONAS MIE Racing Honda Team
(Competing team in the World Superbike Championship)(2) Acquisition date
March 31, 2023
(3) Percentage of voting equity interest acquired
63.6%(4) Main reason of business combination
LeyLine, the Company that operates the PETRONAS MIE Racing Honda Team, has constantly been innovating inmotorcycle competitions such as the Superbike World Championship, utilizing the development, prototyping,
manufacturing, and operation skills under extreme racing conditions that CEO Midori Moriwaki has cultivated indomestic and international motorcycle competitions. The company continues to innovate in motorcycle competitions
such as the World Superbike Championships.
The Group's Cybernics Technologies include IoH/IoT sensing, artificial intelligence autonomous robot technology,
Cybernic mobility technology, environmental awareness, big data, AI analysis, cloud computing, and other advanced
elemental technologies and human-robot integration technologies. The Group is working toward deployment in mobility,
including robots and next-generation Cybernics mobility. In September 2021, the Company Group entered into a
strategic partnership with LeyLine, and in addition to the development of the autonomous robots and cybernetic mobility
described above, the Group has been developing technologies to ensure driver safety in the area of top athletes and toacquire and analyze cranial neuromuscular system information and has been developing key parts to be mounted on EV
motorcycles. The Group has also been developing key parts for EV bikes. The related parties have reached thisagreement because they expect it will accelerate their business and increase our corporate value in mobility.
(5) Method of obtaining control of the acquired company
Acquisition of shares by cash(2) Fair value of the consideration paid, assets acquired, and liabilities assumed as of the acquisition dateAmountMillions of yen
Fair value of the consideration paid
Fair value of assets acquired and liabilities assumed
Current assets
Non-current assets
Current liabilities
Fair value of assets acquired and liabilities assumed (net)Non-controlling interests
Goodwill

414
420
20
(379)
60
(75)
278

(note) 1. Amount of acquisition-related expenses related to the business combination was ¥4 million. The entire amount wasrecorded in "Selling, general and administrative expenses" in the consolidated statements of income.
2. Non-controlling interests are measured by the proportionate share of the acquiree's identifiable net assets at the dateof acquisition.
3. Goodwill was generated from synergies with existing businesses and excess earning power expected from futurebusiness development.
4.The assets acquired and liabilities assumed are provisionally calculated based on the information available at thetime of acquisition since the allocation of acquisition costs has not been completed as of the end of the current fiscalyear.

－ 28 －

(3）Cash flows from acquisition
AmountMillions of yen
Cash and cash equivalents paid for acquisition

414

Accounts payable - other

(210)
203

Cash and cash equivalents in assets at acquisition of control
Payments for acquisition of subsidiaries

(180)
23

(4）Impact on the business performance
The Group's consolidated statements of profit or loss do not include revenue and net income generated by theacquired entity after the acquisition date.
If the business combination of LeyLine GmbH. had been executed at the beginning of the fiscal year, the revenue andnet loss of the Group for the fiscal year would have been ¥3,517 million and ¥583 million (loss), respectively. Please
note that the pro forma information is unaudited.

－ 29 －

8. Cash and cash equivalents
Cash and cash equivalents consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2022)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Millions of yen

Millions of yen

Cash and cash equivalents
Cash and deposits

5,677

7,801

Total

5,677

7,801

The balance of cash and cash equivalents presented in the consolidated statement of financial position is equal to thebalance of cash equivalents presented in the consolidated statement of cash flows.
9. Trade and other receivables
Trade and other receivables consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2022)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Millions of yen

Millions of yen

Accounts receivable-trade

482

531

Accounts receivable-other14

14

Allowance for doubtful accounts

(3)

(4)

Total

493

540

Trade and other receivables are classified into the financial assets measured at amortized cost.

－ 30 －

10. Other financial assets(1) Other financial assets
Other financial assets consist of the following:
Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Millions of yen

Millions of yen

Other financial assets
Financial assets measured at amortized cost:
Bonds

15,0009,500

Leasehold and guarantee deposits

82

87

Other

180

30

Equity securities

7,059

8,136

Convertible bonds

1,304

4,141

7

7

1,091

1,246

24,722

23,148Financial assets measured at fair value through profit or loss:

Other
Financial assets measured at fair value through other comprehensive income:Equity securities
Total

Current assets

15,151

9,507

Non-current assets

9,571

13,641

24,722

23,148Total(2) Financial assets measured at fair value through other comprehensive income
Names and fair values of major financial assets measured at fair value through other comprehensive income are as
follows:

Trading name

Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Millions of yen

Millions of yen

ListedKringle Pharma, Inc.

162

195

−

117

162

312

WHILL, Inc.

626

626

Materials Innovation Tsukuba Co. Ltd.

100

100

Other

202

207

929

933

Cyfuse Biomedical K.K.
Total
Not-listed

Total

Equity securities are held mainly for strengthening relationships with investees. As such, the shares are designated to befinancial assets measured at fair value through other comprehensive income.
No dividend income was recognized from financial assets measured at fair value through other comprehensive income in
the previous or current consolidated fiscal year.

－ 31 －

11. Inventories
Inventories consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2022)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Millions of yen

Millions of yen

Merchandise and finished goods

322

229

Work in process

26

24

741

738

1,089

991

Raw materials
Total

The amount of inventories recognized as expenses and included in the cost of sales for the previous consolidated fiscal
year and the current consolidated fiscal year were ¥533 million and ¥436 million, respectively.
Loss on devaluation of inventory recognized as expenses and included in the cost of sales for the previous
consolidated fiscal year and current consolidated fiscal year were ¥3 million and ¥16 million, respectively.
12. Other assets
Other assets consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2022)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Millions of yen

Millions of yen

Other current assets
Prepaid expenses

143

179

Consumption taxes receivable

306

25

6

104

455

308

Other
Total
Other non-current assets
Long-term prepaid expenses

60

52

Other

45

114

105

166

Total

－ 32 －

13. Property, plant and equipment(1) Change in property, plant and equipment
The following tables present changes in acquisition costs, accumulated depreciation, and impairment losses, andcarrying amounts of property, plant and equipment.
Property plant and equipment
Operatinglease assets

Other

Construction inprogress

Subtotal

Millions of yen
1,836
1,319
－

Tools,
furniture andfixtures
Millions of yen
1,356
101
(10)

Millions of yen
272
3
(5)

Millions of yen
1,254
1,562
－

Millions of yen
14,591
2,984
(15)

－

0

－

0

－

1

1

－
1,226

－
9,872

17
3,172

7
1,453

3
274

(1,568)
1,248(1,541)
16,019(1,541)
17,245Acquisition

172

－

50

147

5

614

817

989

Sales and disposals
Exchange differences ontranslation of foreign operations
Other

(14)

－

－

(19)

(3)

－

(23)

(37)

－

－

1

2

0

－

4

4

9,872

860
4,083

－
1,583

－
276

(1,401)461(541)
16,276(541)
17,660Acquisition costs
April 1, 2021
Acquisition
Sales and disposals
Exchange differences ontranslation of foreign operations
Other
March 31, 2022

March 31, 2023

Land

Buildings andstructures

Millions of yen
1,140
114
(29)

Millions of yen
9,872
－
－

－

－
1,384

Total
Millions of yen
15,731
3,099(44)

Property plant and equipment
Accumulated depreciation andimpairment losses

Operatinglease assets

Land

Total

Buildings andstructures

Tools,
furniture andfixtures

Other

Construction inprogress

Subtotal

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

April 1, 2021

(665)

－

(1,018)(1,103)(264)－(2,385)(3,050)Depreciation

(156)

－

(92)

(124)

(4)

－

(219)

(375)

25

－

－

11

4

－

14

40

－

－

－

－

(0)

－

(0)

(0)

－

－

(7)

(3)

(3)

－

(14)

(14)

March 31, 2022

(796)

－

(1,117)(1,219)(268)－(2,603)(3,399)Depreciation

(171)

－

(162)

(123)

(1)

－

(287)

(459)

14

－

－

19

3

－

22

36

－

－

(1)

(1)

(0)

－

(2)

(2)

(954)

－

(1,279)(1,325)(266)－(2,870)(3,823)

Sales and disposals
Exchange differences ontranslation of foreign operations
Other

Sales and disposals
Exchange differences ontranslation of foreign operations
March 31, 2023

(Note) Depreciation of property, plant and equipment is included in cost of sales, research and development expenses
and other selling, general and administrative expenses in the consolidated statement of income.

Property plant and equipment
Operatinglease assets
Millions of yen

Millions of yen

Millions of yen

Tools,
furniture andfixtures
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

April 1, 2021

475

9,872

818

253

8

1,254

12,206

12,680March 31, 2022

430

9,872

2,055

234

7

1,247

13,416

13,846

March 31, 2023

430

9,872

2,804

258

11

461

13,406

13,837

Carrying amounts

Land

Buildings andstructures－ 33 －

Other

Total

Construction inprogress

Subtotal(2)Impairment loss
As the Group's operating results are still in the negatives, the Group has identified indications of impairment in the
cash-generating units to which the assets in (1) above belong. In performing the impairment test, the recoverable
amount of the cash-generating units is measured by the higher amount between the fair value after deducting thecost of disposal and value in use. The value in use is calculated as the discounted present value of the estimatedfuture cash flows. The future cash flows are based on the business plan approved by the management. To calculate
the future cash flow after the period covered by the business plan, the Group calculates its growth rate, taking into
account future uncertainties.
The key assumptions used in estimating the value in use are the estimated future cash flows in the business planand the discount rate. The discount rate (12.3% for the previous fiscal year and 10.3% for the current fiscal year) isbased on the weighted average cost of capital. In addition, business plans and subsequent future cash flows areprimarily affected by the timing and certainty of medical device approvals and insurance coverage, as well as thenumber of facilities where the product will be introduced and the expected unit sales price.
The projections mentioned above are subject to a high degree of uncertainty. As such, the predictions may
significantly impact estimates of value in use.

14. Goodwill and intangible assets(1) The following tables present changes in acquisition costs, accumulated amortization and impairment losses andcarrying amounts of intangible assets.
Intangible assets
Acquisition cost
April 1, 2021
Acquisition
Acquisition through business combination
Sales and disposals
Exchange difference on translation of foreign
operations
Other
March 31, 2022
Acquisition
Acquisition through business combination
Sales and disposals
Exchange difference on translation of foreign
operations
March 31, 2023

Goodwill

SoftwarePatents

Other

Total

Millions of yen
57
－
2,013
－

Customer-related
assetsMillions of yen
－
－
52
－

Millions of yen
149
15
7
－

Millions of yen
20
－
－
－

Millions of yen
10
7
2
－

Millions of yen
178
22
61
－

－

－

－

－

0

0

－
2,070
－
336
－

－
52
－
26
－

－
171
2
－
－

－
20
－
－
－

(9)
10
9
－
－

(9)
252
11
26
－

125

－

0

－

0

0

2,531

77

173

20

19

289

Intangible assets
Accumulated amortization and impairment losses
April 1, 2021
Amortization
Sales and disposals
Exchange difference on translation of foreign
operations
Other
March 31, 2022
Amortization
Sales and disposals
Exchange difference on translation of foreign
operations
March 31, 2023

Goodwill

SoftwarePatents

Other

Total

Millions of yen－－－

Customer-related
assetsMillions of yen
－
(10)
－

Millions of yen
(120)
(21)
－

Millions of yen
(18)
(1)
－

Millions of yen
(3)
(0)
－

Millions of yen
(141)
(32)
－

－

－

－

－

(0)

(0)

－
－
－
－

－
(10)
(18)
－

－
(142)
(14)
－

－
(19)
(0)
－

(2)
(5)
(1)
－

(2)
(176)
(33)
－

－

－

0

－

(0)

(0)

－

(27)

(156)

(19)

(6)

(209)

(Note) Amortization of intangible assets is included in cost of sales, research and development expenses and other selling, general andadministrative expenses in the consolidated statement of income.

－ 34 －

Intangible assets
Goodwill

Carrying amount
April 1, 2021
March 31, 2022
March 31, 2023

Millions of yen
57
2,070
2,531

Customer-related
assetsMillions of yen－
42
50

SoftwarePatents

Other

Total

Millions of yen
29
29
17

Millions of yen

Millions of yen

Millions of yen
38
76
80

2
0
0

7
5
13

(2) Significant goodwill
The carrying amounts of goodwill recognized in the Group's consolidated statement of financial position for theprevious and current fiscal years are as follows. Goodwill arising from business combinations is allocated to the
cash-generating units that will benefit from the business combination at the acquisition date.
Previous fiscal year
(Fiscal year ended
March 31, 2022)

Current fiscal year
(Fiscal year ended
March 31, 2023)

RISE Healthcare Group, Inc.
C2, Inc.
Other

1,370
643
57

1,497
643
391

Total

2,070

2,531

(3) Impairment test of goodwill
The Group tests goodwill for impairment each period and whenever there is an indication of impairment. The
recoverable amount of the impairment test is based on a value in use. Value in use is calculated as the discounted
present value of estimated future cash flows based on business plans and growth rates for the next five years,
reflecting past performance and future projections.
The discount rates used to calculate the value in use of the cash-generating units to which significant goodwill was
allocated in the previous consolidated fiscal year and the current consolidated fiscal year were 15.04% and 10.31%,
respectively, for RISE Healthcare Group, Inc. and 17.82% and 13.85% respectively for C2, Inc. The growth rate isdetermined by considering the average long-term growth rate in the industry to which the cash-generating unit
belongs.
These projections are subject to a high degree of uncertainty and can have a significant impact on value-in-use
estimates. No impairment loss on goodwill was recognized in the previous or current fiscal years. Although there is arisk of impairment if the key assumptions used in the impairment testing were to change, the value in use is well inexcess of the carrying amount of the cash-generating unit group concerned and it is considered unlikely that the value
in use would be less than the carrying amount even if the key assumptions used in the impairment testing changed
within a reasonably foreseeable range.
No impairment losses on intangible assets other than goodwill were recognized in the previous or current fiscal
years. The status of impairment testing and value-in-use assumptions are described in Note "13. Property, Plant andEquipment.

－ 35 －

15.

Investments accounted for using equity method
Investments in associates are accounted for using equity method in the Group's consolidated financial statements.
There are no associates or joint ventures that are individually material for the Group.

(1) Investments in associates
The carrying amount of investments in associates that are not individually material is as follows:
Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Millions of yen

Millions of yen

Total carrying amount188

0

Changes in the Group's share of profit and other comprehensive income of associates that are not individuallymaterial are as follows:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

The Group’s share of profit

(11)

(22)

－

－

(11)

(22)

The Group's share of other comprehensive income
The Group's share of comprehensive income

In addition to the above, the Company recognized an impairment loss of 166 million yen on its investment in Shisei
Datum, Ltd. accounted for using equity method in the current fiscal year, which is included in "investment loss
accounted for using equity method " in the consolidated statements of profit or loss.
(2) Investments in joint venture
The carrying amount of investments in joint venture that are not individually material is as follows:
Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 20233)

Millions of yen

Millions of yen

Total carrying amount

247

240

Changes in the Group's share of profit and other comprehensive income of joint venture that are not individuallymaterial are as follows:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen(9)

The Group’s share of profit(7)

The Group's share of other comprehensive income－－

The Group's share of comprehensive income

(9)

(7)

－ 36 －

16. Income taxes(1) Deferred tax assets and liabilities
Derails of major causes of occurrence and changes in deferred tax assets and liabilities consist of the following:
Previous consolidated fiscal year (April 1, 2021 to March 31, 2022)
April 1, 2021

Recognizedthrough profit
or loss

Recognizedthroughcomprehensive
incomeMarch 31, 2022

Millions of yen

Millions of yen

Millions of yen

Millions of yen

－

45

－

45

－

45

－

45

630

174

－

805

167

－

5

172

Property, plant and equipment

50

(0)

－

49

Other

0
847

14
188

－
5

15
1,040

April 1, 2022

Recognizedthrough profit
or loss

Recognizedthroughcomprehensive
incomeMarch 31, 2023

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Loss carried forward

45

48

－

93

Other

－

21

－

21

45

69

－

114

805

482

－

1,287

172

－

72

244

49

(12)

－

37

15
1,040

(6)
465

－
72

9
1,577

Deferred tax assets
Loss carried forward
Total
Deferred tax liabilities
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive
incomeTotal

Current consolidated fiscal year (April 1, 2022 to March 31, 2023)

Deferred tax assets

Total
Deferred tax liabilities
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive
incomeProperty, plant and equipment
Other
Total

Tax loss carryforwards and deductible temporary differences for which deferred tax assets have not been recognized
are as follows:
Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Millions of yen

Millions of yen

Tax losses carryforwards

6,876

6,957

Deductible temporary differences

2,413

2,689

9,288

9,646

Total

(Note) Tax loss carryforwards and deductible temporary differences are based on the Company’s income.

－ 37 －Tax loss carryforwards for which deferred tax assets have not been recognized are scheduled to expire as follows:
Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Millions of yen

Millions of yen

Expires within 1 year

559

921

Expires between 1 and 2 years

921

596

Expires between 2 and 3 years

596

503

Expires between 3 and 4 years

503

474

4,296

4,461

6,876

6,957

Expire after 4 years
Total

The aggregate amounts of taxable temporary differences associated with investments in subsidiaries and associates
for which deferred tax liabilities were not recognized at the previous consolidated fiscal year and current
consolidated fiscal year were not material.
The Group did not recognize deferred tax liabilities for these temporary differences because it was able to control
the timing of the reversal of these temporary differences, and it was probable that the temporary difference will notreverse in the foreseeable future.
(2) Income tax expense
Income tax expense consists of the following:

Current taxes
Deferred taxes
Total

Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)
Millions of yen
6
127
133

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)
Millions of yen
9
437
446

(3) Reconciliation of effective tax rate
The details of difference between the effective statutory tax rate and the Group's average tax rate consist of thefollowing:

Effective statutory tax rate
Expenses not deductible for taxable income
calculation purposes
Earnings that are not added to the calculation of
taxable income
Non-deductible expenses
Inhabitant tax equalization rate
Differences in overseas tax rates
Unrecognized differed tax asset
Share of profit (loss) of investments accounted
for using equity method
Gains (losses) related to CEJ Fund
Other
Average actual tax rate

Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)%
34.26

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)%
34.26(0.14)

0.63−(36.72)(0.84)(1.52)(4.18)(59.86)

−
11.39
60.28
401.72(1.76)

125.62

3.31(4.25)(34.98)247.73(4.58)
840.33

Income tax, inhabitant tax and business tax are the main components of income tax expense imposed on the Group,and the effective statutory tax rate based on those taxes was 34.26% in the previous consolidated fiscal year and34.26% in the current consolidated fiscal year. Foreign subsidiaries are subject to income taxes in the countries
where they are located.

－ 38 －

17. Bonds and borrowings
Bonds and borrowings consist of the following:
Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Averageinterest rate

Millions of yen

Millions of yen%

Repayment
period－Short-term loans payables

19

73

0.02

Long-term loans payable due within one year

14

15

1.03

－

Long-term loans payable

34

21

1.54

2024 to 2027

Total

68

110

－

－

Current liabilities

34

89

－

－

Non-current liabilities

34

21

－

－

68

110

－

－

Total

18.

Leases(1) Leases as lessee
As a lessee the Group leases primarily land and buildings with a contractual term of 2 to 20 years. The Group has nocovenants such as restrictions on renewable option, purchase option, escalation clauses and lease contracts.
Gains (losses) related to leases consists of the following:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Depreciation of right-of-use assets
Land and buildings

60

139

Vehicles0-

Tools, furniture and fixtures

9

8

70

147

Interest expense on lease liabilities

3

13

Short-term lease expenses

18

45

Lease expenses under small assets

00Variable lease payments (note)

4

5

Total

(Note) This item is expenses related to variable lease payments not included in the measurement of lease liabilities.
Carrying amount of right-of-use asset consists of the following:
Previous consolidated fiscal year
(As of March 31, 2022)

Current consolidated fiscal year
(As of March 31, 2023)

Millions of yen

Millions of yen

Right-of-use-assets
Land and buildings

485

541

Tools, furniture and fixtures

14

5

499

546

Total

The increase in right-of-use assets for the previous fiscal year and the current fiscal year was ¥241 million and ¥362
million respectively
The total amount of cash outflows related to leases for the previous consolidated fiscal year and the current
consolidated fiscal year was ¥68 million and ¥153 million respectively.
Maturity analysis of lease liabilities is presented in Note “33. Financial Instruments (2) Risk management for financial
instruments ② Liquidity risk management.”－ 39 －

(2) Operating leases (as lessor)
As a lessor, the Group leases products such as HAL. The Group has no covenants such as restrictions on renewable
option, purchase option, escalation clauses and lease contracts.
As a lessor of operating leases, the Group leases HAL etc. Risk of the underlying asset is reduced by conducting
monitoring via the internet and designating the place of use in the contract.
Lease income for the previous consolidated fiscal year and the current consolidated fiscal year was ¥1,203 millionand ¥1,595 million respectively.
The total of future minimum lease payment under non-cancellable operating lease contracts consists of thefollowing:
Previous consolidated fiscal year
(March 31, 2022)
Millions of yen
689

Current consolidated fiscal year
(March 31, 2023)
Millions of yen
1,163

More than 1 year, 2 years or less

375

695

More than 2 years, 3 years or less

310

465

More than 3 years, 4 years or less

187

217

More than 4 years, 5 years or less

10

75

1,572

2,616

Not later than 1 year

Total(3) Finance lease (as lessor)
In cases where the Group acts as a lessor of right-of-use for devices such as HAL, if the lease transfers substantially
all the risks and reward of ownership to the lessee, the Group classifies such lease as financial lease.
As a lessor of finance leases, the Group leases HAL etc. Risk of the underlying asset is reduced by conducting
monitoring via the internet and designating the place of use in the contract.
As the Group manufactures devices such as HAL, the Group recognizes the revenue from the asset as asset
transferred at a point of time in the same way the Group recognizes regular purchase transactions, and the profit fromsales under finance leases for the previous consolidated fiscal year and the current consolidated fiscal year was ¥23
million and ¥43 million respectively. As finance income and variable lease payments on the net investment in leases
based on finance lease contracts does not occur, related statement is omitted.
19.

Trade and other payables
Trade and other payables consist of the following:
Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Millions of yen

Millions of yen

Accounts payable-trade

29

112

Accounts payable-other

266

227

Advance received

117

346

Other

5

5

418

690

Current liabilities

418

690

Non-current liabilities

－

－

418

690

Total

Total

Trade and other payables are classified into the financial liabilities measured at amortized cost.

－ 40 －

20. Employee benefits
The Company and certain subsidiaries adopted defined contribution pension plans covering substantially all of theiremployees for their employees’ retirement benefits. Defined contribution pension plans are exposed to generalinvestment risk, interest rate risk, inflation risk, etc., but are judged to be immaterial.
The amount recognized as an expense for the defined contribution pension plan for the previous consolidated fiscal
year and the current consolidated fiscal year was ¥7 million and ¥30 million respectively.
21. Provisions
Changes in provisions consist of following:
Asset retirement
obligations
Millions of yen
As of April 1, 2021
Increase
Interest expense on discount provision
Decrease (other)
As of March 31, 2022
Increase
Interest expense on discount provision
Decrease (other)
As of March 31, 2023

93
3
－
－
96
－
－
－
96

Asset retirement obligations are provided based on or pursuant to reasonably estimated future expenditures using
historical experience and other factors when the Group has a legal or contractual obligation associated with theretirement of buildings and land etc.
Provisions consist of the following:
Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Millions of yen

Millions of yen
－

－

96

96

96

96

Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Millions of yen

Millions of yen

Current liabilities
Non-current liabilities
Total

22. Other liabilities
Other liabilities consist of the following:

Other current liabilities
Accrued vacation payable35

35

Accrued expenses

31

54

Accrued consumption taxes

69

Deposits received

33

51

Other tax liabilities

97

101

Other

56

116

259

365

−

14

−

14

Total
Other non-current liabilities
Other
Total

－ 41 －

23. Share capital and other equity items(1) Total numbers of authorized shares and issued shares
The total numbers of authorized shares and issued shares are as follows.
Previous consolidated fiscal year
(From April 1, 2021
to March 31, 2022)
SharesCurrent consolidated fiscal year
(From April 1, 2022
to March 31, 2023)
SharesCommon Shares

618,300,000

618,300,000

Class B Shares

77,700,000

77,700,000

Total

696,000,000

696,000,000

137,445,809

137,445,809

Number of authorized shares: (Note 1)

Number of issued shares:
Common Shares:
Beginning balance
Change during the year
Ending balance－－

137,445,809

137,445,809

77,700,000

77,700,000

Class B Shares:
Beginning balance
Change during the year
Ending balance－－

77,700,000

77,700,000(Note) Information concerning authorized shares is as follows:
1. Information concerning the scheme of Common Shares and Class B shares is set out below as defined by theCompany's Articles of Incorporation.
(i) Dividends of surplus and distribution of residual assets
Common Shareholders and Class B Shareholders will receive the same amount of distribution of surplus per sharein the same rank.
(ii) Voting rights
Common Shareholders and Class B Shareholders are both eligible to exercise their voting rights for all items
resolved at the Meeting of Shareholders.
(iii) Restriction on the transfer of Class B Shares
Approval of the Board of Directors is required upon transfer of Class B Share. However, if Class B Shares aretransferred to Class B Shareholders, it will be deemed that the Board of Directors approved the transfer according
to Article 136 or Article 137, Paragraph 1 of the Companies Act.
(iv) Cases where resolution of the Meeting of Class Shareholders are not required
Upon conducting acts stated in the items of Article 322, Paragraph 1 of the Companies Act, unless stated otherwise
by related law or the Company's Articles of Incorporation, resolution of General Meeting of Class Shareholders for
Common Shares shall not be required.
(v) Conversion of Common Shares at the option of the shareholders.
Holders of Class B Shares may request that the Company acquire Class B Shares held by such shareholders, inwhole or in part, at any time. In exchange for the acquisition of one Class B Share, one Common Share shall bedelivered to such shareholders.
(vi) Compulsory conversion
a. Upon occurrence of any event described below, all outstanding Class B Shares shall be acquired, either at thedate stated below or any date before if designated by the Board of Director. In these cases, in exchange for theacquisition of one Class B Share, one Common Share shall be delivered to such shareholders.
① A resolution at the General meeting of Shareholders (or the Board of Directors of the Company if aresolution at the General Meeting of Shareholders is not required) for (a) a merger of the Company into
any other corporation, (b) share exchange by which the Company becomes a wholly-owned subsidiary of
another corporation or (c) share transfer that is effected jointly with any other corporation is passed, andthe day before the effective date of such merger, share exchange or share transfer has occurred.
② As a result of a tender offer, if the offeror holds three-quarters or more of the total number of theCompany's outstanding shares and 90 days have passed after the tender offer report regarding such tender
offer was filed.
"Hold", "offeror" and "tender offer report" means hold, offeror and tender offer report defined in Chapter
II-2, Section 1 of the Financial Instruments and Exchange Act. In addition, "tender offer" means tender－ 42 －

offer defined in Article 27-3 Paragraph 1 of the Financial Instruments and Exchange Act.
③ Consent (a "Shareholders' Consent") is obtained for the acquisition by the Company of all of theCompany's outstanding Class B Shares in exchange for the same number of Common Shares in aconfirmation process (the "Shareholders' Confirmation Process") and 90 days have passed since then.
Under the Company's Article of Incorporation, the Shareholders' Confirmation Process must be
implemented (a) before the conclusion of the General Ordinary Meetings of the Shareholders for the last
fiscal year which ends within one year from the time of retirement of Yoshiyuki Sankai, the President andCEO of the Company, from a member of the Board of Directors and (b) before the conclusion of theGeneral Ordinary Meeting of the Shareholders for the last fiscal year which ends within five years from thetime of the last Shareholders' Confirmation Process. Under the Company's Article of Incorporation, thequorum for a Shareholders' Consent is one-third of the total number of voting rights of the shareholders
who are entitled to exercise their voting rights (100 shares constitute one unit of both Common Shares andClass B Shares for the calculation. Same calculation shall be applied for the entire item a-3) and theconsent of at least two-thirds of the voting rights represented in the Shareholders' Confirmation Process isrequired for a Shareholders' Consent.
b. If any of the events set forth in the following items occurs with respect to Class B Shareholders, the Company
will, on the date prescribed in Article 170, item 1, acquire Class B Shares specified in each of said items anddeliver one share of Common Share to said Class B Shareholders in exchange for acquiring said one share ofClass B Shares.
① the Company is requested to approve the acquisition of Class B Shares by any person other than theholders of Class B Shares, Class B Shares with respect to which approval for the acquisition was requested
based on Article 136 or Article 137 of the Companies Act; and② a holder of the Class B Shares died, and 90 days have passed without succession or transfer to any otherholder of the Class B Shares, all Class B Shares held by such departed shareholder.
(vii)
Share split and share consolidation etc.
a. When the Company splits or consolidate its Common Shares or Class B Share, the Company shall split orconsolidate its other share type at the same ratio, simultaneously.
b. When the Company allocates subscribed shares to Common Shareholders or Class B Shareholders, theCompany shall allocate shares to the shareholders of another share type at the same ratio, simultaneously.
c. When the Company allocates stock acquisition rights to Common Shareholders or Class B Shareholders,the Company shall allocate stock acquisition rights to shareholders of another share type at the same ratio,
simultaneously.
d. When the Company distributes shares for free to Common Shareholders or Class B Shareholders, theCompany shall distribute shares for free to shareholders of another share type at the same ratio,
simultaneously.
e. When the Company distributes stock acquisition rights for free to Common Shareholders or Class B

Shareholders, the Company shall distribute stock acquisition rights for free to shareholders of another sharetype at the same ratio, simultaneously.
f. When the Company transfers its shares (excluding cases where the share transfer is conducted together
with other companies), the Company shall substitute the shares held by shareholders with the shares of the
new company set up after the transfer, granting shareholders same numbers of shares and same class ofshares at the same ratio.
g. When the Company plans to change its calculation of share units stated in the Articles of Incorporation, it
shall be executed at the same timing and same ratio.

－ 43 －

2.

3.

Class B Shares differ from Common Shares in traded units. Common Shares are traded in units of 100
shares, and Class B Shares are traded in units of 10 shares. This scheme that grants 10 times as many
voting rights to Class B Share was adopted to has been adopted to concentrate the voting rights to
Yoshiyuki Sankai and the foundations of which Yoshiyuki Sankai serves as Representative Director(hereinafter referred to collectively as "the Foundation"), so that the Group's innovative technologies
can be used solely for peaceful purpose and avoid being used for non-peaceful purposes such as lethal
weaponry in the military industry (the scheme involving the Company's Class B Shares is hereafterreferred to as "Scheme").
Furthermore, the Group has a vision for the future to create a human-assistive industry- a new
industrial field that will support people by solving issues directly faced by aging and declining birthrate.
To realize this vision, the Group must coordinate business management with R&D of Cybernic
Technology. Yoshiyuki Sankai created the Group's Cybernics Technologies and continues to be a central
figure in Cybernic research. He is also a business leader who seeks to make this innovative technology
widely available for the benefit of the society. For the Group to increase corporate value (i.e., common
interest of shareholders), Yoshiyuki Sankai must be a stable leadership figure in the management of theCompany in the future. This scheme has been adopted to ensure he remains so.
In order to preserve continuity of this Scheme, Yoshiyuki Sankai plans on transferring part of the ClassB Shares he holds as of this submission date to the Foundation at no cost. Furthermore, there are noplans for the Foundations to release the Class B Shares in their possession.
As a shareholder of Class B Shares, the Foundations established guidelines on the exercise of theirvoting rights, to prevent the Group's technologies from being used to harm people or to create military
weapons, damaging the Group's corporate value.
The Foundations will exercise its voting rights related to the Class B Shares they hold against
resolutions in the General Meetings of Shareholders and General Meeting of Class Shareholders in thecases stated below. Furthermore, a resolution of the board meeting of the Foundations will be required
to alter these guidelines, and the change will be announced by a method determined by theFoundations:a. if in resolutions for the dismissal or appointment of Directors will lead to the misuse of theGroup's innovative technology or damage the Group's corporate value
b. for all other resolutions, if the passing of the resolution leads to the prevention of peacefulutilization of the Group's innovative technologies or damage to the Group's corporate value

At the extraordinary general meeting of shareholders held on March 4, 2021, the Group approved the
reduction of capital stock and the appropriation of retained earnings, which became effective on the samedate.
The amount of capital stock was reduced to ¥10 million, the entire amount of the reduction wastransferred to capital surplus, and of the transferred capital surplus, ¥10,355 million was transferred toretained earnings brought forward to cover the deficit.
(2) Treasury shares
The changes in treasury shares are as follows
Number of shares

AmountSharesMillions of yen

April 1, 2021
Change during the year
March 31, 2022
Change during the year
March 31, 2023

8,771

0

2,900

-

11,67104,000,002

1,188

4,011,673

1,188(Note) The increase is mainly due to the acquisition of treasury shares through off-auction own share repurchasetrading on the Tokyo Stock Exchange (ToSTNeT-3).
(3) Capital surplus
The Companies Act stipulates that over half of the capital contributed from the issue of shares must be included inshare capital and that the remainder must be included in the legal capital surplus. Moreover, legal capital surplus may－ 44 －

be included in share capital by resolution of the General Meeting of Shareholders.
(4) Retained earnings
The Companies Act stipulates that an amount equal to one-tenth of dividends must be appropriated as legal capitalsurplus or as legal retained earnings until the total of the aggregate amount of legal capital surplus and legal retained
earnings equals a quarter of share capital. Legal retained earnings may be appropriated to reduce a deficit, and also
may be reversed by resolution of the General Meeting of Shareholders.

－ 45 －

24.

Dividends
Dividends paid are as follows:
Previous consolidated fiscal year (From April 1, 2021 to March 31, 2022)
There are no items to report.
Current consolidated fiscal year (From April 1, 2022 to March 31, 2023)
There are no items to report.
Dividends with an effective date after the fiscal year ended are as follows:
Previous consolidated fiscal year (From April 1, 2021 to March 31, 2022)
There are no items to report.
Current consolidated fiscal year (From April 1, 2022 to March 31, 2023)
There are no items to report.

－ 46 －

25. Revenue(1) Disaggregation of revenue
Details of disaggregation of revenue are set forth below.
Previous consolidated fiscal year
(From April 1, 2021
to March 31, 2022)
Millions of yen
Timing of revenue recognition
Service transferred over time
Asset transferred at a point of time
Service transferred at a point of time
Total

1,457
169
524
2,150

Current consolidated fiscal year
(From April 1, 2022
to March 31, 2023)
Millions of yen
1,666
202
1,421
3,289

(Note) Since the Group operates under a single segment of business related to robotics, segment information on revenue isomitted.
Service transferred over time
Service transferred over time includes rental income based on the individual rental contract, maintenance income basedon the maintenance contract of finance lease income where the Group acts as a lessor of the right-of-use asset, andsubscription fees from the provision and operation of smartphone applications.
The Group recognizes rental income as income generated throughout the rental period after the customer accepts therelevant product by either of the following methods. Pay-per-use model is based on times of product usage each month,and the base fee model is based on the fixed monthly price.
The Group recognizes maintenance income as a performance obligation satisfied over time. The Company records thisrevenue during this contract period based on the average amount.
The Group recognizes usage fee revenue from the provision and operation of smartphone applications over time, asservices are provided through the applications over a fixed period.
Asset transferred at a point of time
The asset transferred at a point of time includes revenue from sales of commodities and products based on the sales
contract.
The Group mainly determines the performance obligation of sales of commodities and when the customer accepts therelevant product. The Group receives most of the payment within one month from the point of satisfying theperformance obligation. Regarding the transaction price, there is no significance in the amount of sales revenue that
includes variable consideration. Furthermore, there are no significant financial components in the amount ofpromised consideration.
Furthermore, if the Group acts as a lessor of right-of-use of its devices such as HAL, it classifies the relevant lease asa finance lease. Finance lease income is processed in the same way as cases where the Group acts as a lessor of
manufacturer or distributor of sales of goods. The Group determines that performance obligation is satisfied at the
point of customer acceptance, and the Group recognizes the revenue simultaneously.
Service transferred at a point of time
Service transferred at a point of time includes revenue from offering Cybernic Treatment and training service at
Cybernic Treatment Center and Robocare Centers, to end users (such as patients). It also includes revenue received inreturn of providing outcomes of consigned development projects.
The Group determines that performance obligation of Cybernic Treatment as well as training services are
satisfied at the point of completion of such services. The Group determines that performance obligation of providing
outcomes of consigned development projects are satisfied at the point when the customer inspects and accepts theoutcome.

－ 47 －

(2) Changes in the contract
Receivables and contract liabilities from contracts with customers are as follows:
Accounts receivable arising from contracts
with customers
Millions of yen
353
482
530

April 1, 2021
March 31, 2022
March 31, 2023

Advances received oncontractual liabilities
Millions of yen
54
117
346

(Note) The amount of revenue recognized out of the balance of advances received in the previous consolidated fiscal year
and the current consolidated fiscal year was ¥38 million and ¥42 million, respectively. In addition, the amount ofrevenue recognized from performance obligations satisfied in prior periods was not material for the previous
consolidated fiscal year and the current consolidated fiscal year.
(3) Timing of performance obligations satisfaction
Recognition of revenue arising from maintenance contracts that occur incidental to sales of commodities are as
follows:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Not later than 1 year

81

More than 1 year, 5 years or less

170

74

251

133

Total

59

26. Selling, general and administrative expenses
Other selling, general and administrative expenses consist of the following:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)
Millions of yen

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)
Millions of yen

Personnel expenses

586

791

Taxes and dues

105

109

Commission expenses

366

400

Depreciation

209

300

Advertising expenses

169

271

Other

361

535

1,797

2,406

Total

Personnel expenses included in cost of sales, research and development, and other selling, general and administrative
expenses in the consolidated statement of profit or loss for the previous consolidated fiscal year and the current
consolidated fiscal year were ¥989 million and ¥1,424 million, respectively.
27. Other income and other expenses
Other income consists of the following:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Grants52Consigned research income

3645

Foreign exchange gains

81

96

Other

52

69

175

212

Total

Other expenses consist of the following:－ 48 －

Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Miscellaneous losses

5

7

Other

1

1

6

8

Total

－ 49 －

28. Financial income
Financial income consists of the following:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Interest income:Financial assets measured at amortized cost
Financial assets measured at fair value through profit or loss
Total

19
379
398

26
1,286
1,312

29. Other comprehensive income
Amount incurred during the fiscal year, reclassifications to profit or loss and tax effects including non-controllinginterests for each item of other comprehensive income are as follows:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Gains (losses) arising for the year
Tax effects
Financial assets measured at fair value through othercomprehensive income
Items that may be reclassified to profit or loss

(15)

55

(5)

(19)

(20)

36

149

134

Exchange differences on translation of foreign operations
Gains (losses) arising for the year
Reclassifications－－

Before tax

149

134

Tax effects－－

Exchange differences on translation of foreign operations

149

134

129

170

Total

－ 50 －

30. Earning per share(1) The basis for calculating basic earnings per share
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

(498)

(298)

－

－

(498)

(298)

215,134,862

214,706,740(2.32)(1.39)

Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

(498)

(298)

Gain (loss) attributable to owners of parent (Millions of yen)
Gain not attributable to common shareholders of the parent(Millions of yen)
Gain (loss) used to calculate basic earnings per share(Millions of yen)
Weighted average number of common shares and sharesequivalent to common shares (Shares)
Basic earnings (loss) per share (Yen)(2) The basis for calculating diluted earnings per share

Gain (loss) used to calculate basic earnings per share(Millions of yen)
Adjustments to loss (Millions of yen)
Gain (loss) used to calculate diluted earnings per share(Millions of yen)
Weighted average number of common shares and sharesequivalent to common shares (Shares)
Adjustment *Note
Weighted average number of diluted common shares andshares equivalent to common shares (Shares)

－

－

(498)

(298)

215,134,862

214,706,740－－

215,134,862

214,706,740(2.32)(1.39)

Diluted earnings (loss) per share (Yen)(Note) Summary of potential shares not included in the calculation of diluted earnings per share as it does not havedilutive effects
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

SharesShares2015 1st Series Stock Option of CYBERDYNE, INC.

(Common share)

7,800(Common share)

7,800

2016 1st Series Stock Option of CYBERDYNE, INC.

(Common share)

4,600(Common share)

4,600

2017 1st Series Stock Option of CYBERDYNE, INC.

(Common share)

10,500(Common share)

10,500－ 51 －

31. Cash flow information
Changes in liabilities arising from financing activities are as follows:
Previous consolidated fiscal year (From April 1, 2021 to March 31, 2022)
April 1, 2021

Short-term loans payable
Long-term loans payable(Note 1)
Lease liabilities
Third-party interests in
CEJ Fund
Total

Fluctuations
accompanied
by cash flows

Fluctuations not accompanied by cash flows
March 31, 2022

Change inscope ofconsolidation

Exchange
fluctuation

New lease

Other

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

19

7

－

－

－

(6)

19

61

(47)

35

－

－

－

49

340

(68)

224

－

－

10

506

2,429

1,360

－

－

－

(159)

3,629

2,849

1,252

259

－

(155)

4,204

－

(Note) Includes Long-term loans payable due within 1 year
Current consolidated fiscal year (From April 1, 2022 to March 31, 2023)
April 1, 2022

Short-term loans payable
Long-term loans payable(Note 1)
Lease liabilities
Third-party interests in
CEJ Fund
Total

Fluctuations
accompanied
by cash flows

Fluctuations not accompanied by cash flows
March 31, 2023

Change inscope ofconsolidation

Exchange
fluctuation

New lease

Other

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

19

－

60

－

－

(6)

73

49

(12)

－

－

－

－

36

506

(153)

－

33

175

(2)

559

3,629

1,360

－

－

－

(197)

4,792

4,204

1,195

60

33

175

(206)

5,461

(Note) Includes Long-term loans payable due within one year

－ 52 －

32. Share-based payments(1) Outline of share-based payments
The Company adopted an equity-settled share-based payment (stock option) as well as shares with restrictions ontransfer as remuneration for the Company employees.
The stock option is allotted to external consultant for the purpose of boosting his/her motivation and moral towards
the growth of the Company's corporate value. The stock option is issued based on the resolution at the Meeting of
Shareholders and approval by the Meeting of Board of Directors of the Company. Exercise period of the stockacquisition rights that is included in the stock option is determined by the allotment contract and if the stockacquisition rights is not exercised by the holder of the stock acquisition rights during this period, stock acquisitionrights will lose its effect.
Shares with restrictions on transfer as remuneration for the Company employees are allotted to the Company
employees for the purpose of boosting his/her motivation and morale towards the growth of the Company's corporate
value. The issuance of these shares is approved by the Meeting of the Board of Directors of the Company.
Outlines of the Company stock options issued are as follows:
Class and number of shares
covered by the stock option

Allottee

Date ofallotment

ExerciseperiodConditions for determination ofrights2015 1st Series Stock Option of
CYBERDYNE, INC. (Note 1)

Common Share
7,800 shares

1 external
consultant

August 12,
2015

July 28, 2025

Conditions on determination ofrights are not attached (Note 2)2016 1st Series Stock Option of
CYBERDYNE, INC.

Common Share
4,600 shares

1 external
consultant

June 8, 2016

May 24, 2026

Conditions on determination ofrights are not attached (Note 2)2017 1st Series Stock Option of
CYBERDYNE, INC.

Common Share
10,500 shares

1 external
consultant

August 8,
2017

July 25, 2027

Conditions on determination ofrights are not attached (Note 2)(Notes)1 This stock acquisition right was determined before the date of transition to IFRS (April 1, 2016). As such, IFRS 2"Share-based Payment" has not been applied.
2 This stock acquisition right has no conditions for determination of rights attached. As such, related expenses areprocessed at once when the rights are allotted.

－ 53 －

(2) Number of stock options and weighted average exercise pricePrevious consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Beginning balance of outstanding

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Number of shares

Weighted average exercise
price

Number of shares

Weighted average exercise
price

SharesYen

SharesYen

22,9002,050

22,9002,050

Granted

－

－

－

－

Exercised

－

－

－

－

Expired

－

－

－

－

－

－

－

－

Ending balance of outstanding

22,9002,050

22,9002,050

Ending balance of exercisable

22,9002,050

22,9002,050

Expired at maturity(Notes)1. Exercise price of stock options that is not yet exercised for the previous consolidated fiscal year and the current
consolidated fiscal year were between ¥1,788 to ¥3,060 and ¥1,788 to ¥3,060, respectively.
2. Weighted average remaining contractual life of stock options that is not yet exercised for the previous consolidated
fiscal year and the current consolidated fiscal year were four years and three years, respectively.
(3) The assumption used to measure the fair value of stock options weighted average fair value of the stock options
allotted in the fiscal year, are measured through Black-Scholes Model using the following assumptions
Previous consolidated fiscal year (from April 1, 2021 to March 31, 2022)
There were no items to report.
Current consolidated fiscal year (from April 1, 2022 to March 31, 2023)
There were no items to report.
(4) Shares with restrictions on transfer as remuneration for the Company employees
The Group has introduced a restricted share payment scheme under which it provides remuneration to Company
employees, by way of shares with restrictions on transfer until the rights are vested. The scheme is accounted forusing a means of equity settlement. Under this scheme, the transfer of shares becomes possible when therequirements of the service conditions are met. In principle, the vesting period is five years.
The fair value of such shares are measured based on observable market prices.

－ 54 －

33. Financial instruments(1) Capital management
The Group is a company centered on research and development of innovative devices. It promotes clinical research,
verification and endeavors to obtain approvals from various regulators, in order to introduce the Group's product into
the market and services, which will realize sustainable growth. In line with these challenges, the Group manages its
financial instruments to maximize its corporate value.
There are no capital restrictions that affect the Group.
(2) Risk management for financial instruments
In the process of its operation, the Group is exposed to various financial risks such as, credit risk, liquidity risk andexchange rate risk. In order to mitigate these financial risks, the Group selects financial instruments with very low
risk. For financing, the Group either borrows from the bank or issue bonds.
On derivative transaction, the Group has a policy not to conduct any speculative transactions.
① Credit risk management
Credit risk is the risk that a counterparty to financial assets held by the Group is unable to fulfil its contractual
obligations, resulting in a financial loss for the Group.
a. Trade and other receivables
Accounts receivable-trade expose the Group to customer credit risk. The Group manages that risk with aninternal audit process for investigating and approving customer credit on initial transaction. Furthermore,according to Customer Credit Management protocol, the Group also manages due dates and outstandingbalances by customer, in order to mitigate any concerns about collection due to deterioration in their financial
positions and other reasons.
Accounts receivables-other expose the Group to business partner credit risk, but these receivables arealmost entirely settled in the short term.
b. Short-term investments
Short-term investments are recognized in cash and cash equivalents and other financial assets and are highly
safe and liquid financial instruments.
The carrying amount after impairment of financial assets in the consolidated statement of financial position
represents the Group's maximum exposure to the credit risk of financial assets. The Group is not exposed toexcessive credit risk associated with a particular customer that requires exceptional management.
The Group recognizes allowance for doubtful accounts for trade receivables and other financial assets measured
at amortized cost by estimating future credit losses in consideration of recoverability and significant increases incredit risk. The Group determines if credit risk has increased significantly by evaluating changes in default risk
with reference to factors including the decline of counterparty results, and delinquency information.
Accounts receivable-trade are particularly important financial assets for the Group. The Group collectively
measures expected credit losses of the financial assets for the entire period to recognize the allowance for
doubtful accounts. In the following situations, that would adversely affect future cash flows, however, the Groupmeasures expected credit losses individually by treating each receivable as a credit-impaired financial asset:
・ Where the customer has serious financial difficulties
・ Where the customer defaults or becomes delinquent in accounts receivable payments despite repeateddemands for payment
・ Where it is more likely that the customer will go into bankruptcy or face a situation that forces it toreconstruct its business
The Group directly writes down the carrying amount if it does not reasonably expect to recover all or part of
the trade receivables, following an internal process of investigation and approval.
The Group is not exposed to excessive credit risk associated with a particular customer that requires
exceptional management. Furthermore, the customers of the Group are highly creditworthy, and the credit risk islimited. As the customer of the Group are highly credit worthy, there are very few delinquents in accounts
receivables and impact towards impairments in accounts receivable-trade and allowance for doubtful accounts
are insignificant.
－ 55 －

The Group always sets allowance for doubtful accounts for trade receivables without a significant financial
component. This amount is designated as an amount equal to the expected credit loss for the entire period.
The carrying amounts for trade receivable for the previous consolidated fiscal year and the current consolidated
fiscal year were ¥496 million and ¥544 million, respectively.
Changes in the related allowance for doubtful accounts are as follows:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Beginning balance

3

3

Increase during the year
Decrease during the year due to settlement for
intended purposes

3

4

－

－

Decrease during the year due to reversal

(3)

(3)

Other changes－－

Ending balance

3

4② Liquidity risk management
Liquidity risk is the risk that an entity is unable to make a payment by its due date in performing its repayment
obligations for financial liabilities that become due.
The Corporate Unit of the Group renews the funding plans where necessary and maintains the level of liquidity
on hand above certain level, in order to manage liquidity risk.
The Group prepares appropriate funds for repayment, secures credit line from the financial institute where
necessary, constantly monitors the plans of cash flows and its performance in order to manage liquidity risk.
Financial liabilities by maturity date consist of the following:
Fiscal year ended March 31, 2022
Carrying amountContract amountNot later than 1 year

Later than 1 year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Non-derivative financial liabilities
Trade and other payables

418

418

－

418

Bonds and borrowings

68

68

34

34

Lease liabilities

506

506

118

389

3,629

(note) 3,629

－

3,629

4,621

4,621

569

4,052

Third-party interests in CEJ Fund
Total

(Note) This amount is the amount of equity vested to third-party investors if the fund was liquidated on March 31, 2022
Fiscal year ended March 31, 2023
Carrying amountContract amountNot later than 1 year

Later than 1 year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Non-derivative financial liabilities
Trade and other payables

690

690

690

－

Bonds and borrowings

110

110

89

21

Lease liabilities

559

559

147

412

4,792

(note) 4,792

－

4,792

6,151

6,151

926

5,226

Third-party interests in CEJ Fund
Total

(Note) This amount is the amount of equity vested to third-party investors if the fund was liquidated on March 31, 2023

－ 56 －

Total amounts of commitment lines and their usage are as follows:
Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Millions of yen

Millions of yen

Total commitment lines

800

800

Balance of executed loans

－

－

800

800

Undrawn③ Exchange rate risk management
The Group also operates outside Japan, and therefore is exposed to the risks of exchange rate fluctuations
associated with transactions conducted in foreign currencies etc.
As the impact of changes in exchange rate is insignificant, related information is omitted.
Furthermore, translation of the financial statements of the subsidiaries operating outside of Japan affects theamount of other comprehensive income. However, the Group does not regard this impact to be material.
(3) Fair value of financial instruments
For financial instruments measured at fair value, their fair values are classified into Level 1 through Level 3 based on
the observability of inputs used for the measurement and their materiality.
Level 1: Quoted prices in active markets for identical assets or liabilities (unadjusted)
Level 2: Fair value determined using observable prices other than Level 1 for the asset or liability directly or
indirectly
Level 3: Fair value determined using the valuation technique including unobservable inputs for the asset or liability① Measurement methods of the fair value
The Group adopts the following measurement methods for the main financial instruments measured at fair value:(Cash and cash equivalents, trade and other receivables, other financial assets (current), trade and other payables)
Carrying amounts approximate fair values because these are settled in the short-term.
(Other financial assets (non-current))
The fair value of listed shares is measured based on the observable market price
The fair value of unlisted stocks and other securities is determined using the most appropriate valuation
technique among the following methods: using the most recently traded prices, the comparable companies
method, the method based on the equity in net assets based on the most recently available information, and themethod based on the discounted present value of future cash flows.
Fair value of leasehold and guarantee deposits is measured by present value obtained through discounting yield
to maturity of long term bonds with high security by planned schedule of redemption.
(Third-party interests in CEJ Fund)The carrying amount of the third-part interests in CEJ Fund is the amount of equity interest attributable to thirdparty investors assuming that the fund is liquidated at the end of each quarter. As such the fair value of the equity
interest is determined based on the carrying amount of the equity interest.

－ 57 －

② Financial instruments measured at amortized cost
The following tables present the measurement techniques for measuring the fair value of major financial
instruments measured at amortized cost. Financial instruments for which carrying amounts are a reasonableapproximation of fair value or financial instruments that are not material are not included in the tables.
Previous consolidated fiscal year
(March 31, 2022)

Current consolidated fiscal year
(March 31, 2023)

Carrying amount

Fair value

Carrying amount

Fair value

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Financial assets:
Financial assets measured at amortized cost
Leasehold and guarantee deposits
Total

82

87

87

91

82

87

87

91

(Notes)1 The fair value of leasehold and guarantee deposits is classified into Level 2.
2 There were no transfers between Level 1, Level 2 and Level 3 during the previous fiscal year and the current fiscal
year－ 58 －

③ Financial instruments measured at fair value
The carrying amount and fair value of financial instruments measured at fair value are as follows:
Previous consolidated fiscal year (March 31, 2022)
Fair value
Carrying amountFinancial assets:
Financial assets measured at fair value
through profit or loss
Other financial assets
Financial assets measured at fair value
through other comprehensive income
Other financial assets
Total

Level 1

Level 2

Level 3

Total

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,370

54

－

8,316

8,370

1,091

162

－

929

1,091

9,460

216

－

9,245

9,460

Current consolidated fiscal year (March 31, 2023)
Fair value
Carrying amountFinancial assets:
Financial assets measured at fair value
through profit or loss
Other financial assets
Financial assets measured at fair value
through other comprehensive income
Other financial assets
Total

Level 1

Level 2

Level 3

Total

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

12,285233－

12,052

12,285

1,246

312

－

933

1,246

13,531545－

12,986

13,531

Transfers between levels of the fair value hierarchy shall be recognized at the date of the event or change incircumstances that caused the transfer. The reclassification from Level 3 to Level 1 was made in the previous
consolidated fiscal year as a company which CYBEDYNE invested in was listed on the stock market. No otherreclassifications were made.
④ Assessment procedures
Assessment of financial instruments classified as Level 3 is measured by the responsible person in the Corporate
Department. Responsible person conducts assessment and analysis of the assessment based on the Group's accounting
policies and procedures that is approved by the head of Corporate Department. Results of assessment are thanreviewed and approved by the Head of Corporate Department.

－ 59 －

⑤ Quantitative information with regards to financial instruments classified as Level 3
Fair value of financial asset classified as Level 3 is measured by responsible person in the Corporate Department, eachquarter using recently available data according to the Group accounting policy. Any changes in fair value and reasons
are reported to the department manager, and to the President and CEO as necessary. Upon measurement of the fairvalue, inputs are reasonably estimated, and most suitable valuation model is selected based on the nature of the asset.
Determination of the suitable valuation model will be verified by the most appropriate internal approval process, inorder to ensure the validity.
Financial instruments classified as Level 3 are not subject to transfer between the fair value hierarchy levels.
⑥ Changes in financial instruments classified as Level 3 during the period
Changes in financial instruments classified as Level 3 are as follows:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Beginning balance

6,908

9,245

Profit or loss (Note 1)

469

1,286

Other comprehensive income (Note 2)

20

5

Total gains and losses

Purchases

1,848

3,309

Sales

－

(614)

Reclassification to level 1 (Note 3)

－

(245)

9,245

12,986469

998

Ending balance
Changes of unrealized profit related to possessed assets
posted at the end of reported period (Note 1)(Notes)1 Gains and losses included in finance income or finance costs in the consolidated statement of profit or loss
2 Gains and losses included in financial assets measured at fair value through other comprehensive income in the
consolidated statement of comprehensive income.
3 Reclassification to level 1 was due to the listing of stocks held.

－ 60 －

34. CEJ Fund
Gains (losses) related to CEJ Fund consists of the following:
Previous consolidated fiscal year
(From April 1, 2020 to March 31, 2021)

Current consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Millions of yen

Millions of yen

Gains (losses) related to CEJ Fund
Gains of CEJ Fund
Unrealized gains (losses) on investments
Administrative expenses

78

199

(123)

(122)

Subtotal(45)

77

Amount reclassified to third-party equity

159

197

Total

115

274

Changes in Third-party interests in CEJ Fund are as follows:
Third-party interests
Millions of yen
April 1, 2021
Contributions into CEJ Fund from third-party
investors
Change in third-party interests in CEJ Fund

2,429

March 31, 2022

3,629

1,360
(159)

Contributions into CEJ Fund from third-party
investors

1,360

Change in third-party interests in CEJ Fund

(197)

March 31, 2023

4,792

35. Related parties(1) Major subsidiaries and associates etc.
Please refer to "Appendix 1 Outline of the Company 4 Status of associated companies" for major subsidiaries andassociates etc. Information on transactions and balance of receivables or payables between the Group and relatedparties are omitted as this information is not material.
(2) Compensation to main executives
Compensation to main executives consists of the following:
Previous consolidated fiscal year
(From April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Millions of yen

Millions of yen

Basic remuneration:
Member of the Board of Directors (excluding outside
members of Board of Directors)
Outside members of the Board of Directors andoutside members of the Audit and Supervisory Board
Total

36. Subsequent events
There are no items to report- 61 -

44

44

9

9

53

53

(２)【Other】
Quarterly information for the current fiscal year, etc.
(Accumulated period)

Q1

Q1-Q2

Q1-Q3

Q1-Q4

Revenue (Millions of yen)

751

1,542

2,374

3,289

Profit (loss) before tax (Millions of yen)

372

373

112

53

Profit (loss) attributable to owners of the parent(Millions of yen)

241

268

68

(298)

Profit (loss) per share (Yen)

1.12

1.25

0.32

(1.39)(Accounting period)
Quarterly profit (loss) per share (Yen)

Q1

Q2
1.12

－ - 62 - －

Q3
0.12

Q4
(0.93)(1.72)

２【Financial statement etc.】(１)【Financial statement】①【Non-consolidated balance Sheet】(Unit: Millions of yen)Previous fiscal year
(March 31,2022)
AssetsCurrent assets
Cash and cash equivalents
Accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials
Accounts receivable-other
Other
Allowances for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net
Machinery & equipment, net
Vehicles & delivery equipment, net
Tools, furniture & fixtures, net
Rental assets, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Patents
Software
Other
Total intangible assets
Investments and other assets
Bonds of affiliated companies
Investment securities
Shares of affiliated companies
Investments in capitals of subsidiaries andassociates
Long-term prepaid expenses
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Current fiscal year
(March 31,2023)

6,596

6,419

*２ 357*２ 387

12,500
320
26
741
*２ 20
*２ 703(3)
21,260

9,500
224
20
738
*２ 54
*２ 140(4)
17,478*１ 1,901*１ 2,62434*１ 1
4*１ 180423*１ 9,872
1,248
13,662- 63 -

65*１ 1

4*１ 217426*１ 9,872

460
13,670

1

0

*１ 24

*１ 16

5
29

5
21

53
3,077
2,989

53
4,298
3,167

1,427

1,947

66

47

*２ 190*２ 939(91)
7,712
21,403
42,663(91)
10,362
24,053
41,531

(Unit: Millions of yen)Previous fiscal year
(March 31,2022)
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-otherAccured expenses
Unearned revenue
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation & translation adjustments
Valuation differences on available-for-salesecurities
Total valuation & translation adjustments
Stock acquisition rights
Total net assets
Total liabilities and equity－ - 64 - －Current fiscal year
(March 31,2023)

26

26*２ 185*２ 42111
122
5*２ 117467

1480
5*２ 347
893

36
81
116
583

106
83
14
203
1,096

10

10

26,714
16,413
43,12826,714
16,413
43,12800(1,133)(1,133)(0)42,004(1,728)(1,728)(1,188)40,222

57

195

57
19
42,08042,663195
1940,43541,531

②【Non-consolidated statement of profit or loss】（Unit: Millions of yen）
Previous fiscal year
(From April 1, 2021
to March 31, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Subsidy income
Consigned research income
Outsourcing service fee
OtherTotal non-operating income
Non-operating expenses
Loss on investments in capital
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Total extraordinary loss
Profit (loss) before provision of income tax
Income taxes – current
Income taxes – deferred
Total income taxes
Net profit (loss)- 65 -

Current fiscal year
(From April 1, 2022
to March 31, 2023)*２ 1,564*２ 1,715*２ 396*２ 465

1,168*１,*２ 2,023
(856)

1,250
*１,*２ 2,076
(826)

*２ 19

*２ 31

11
36
*２ 180*２ 106353

945*２ 166*２ 108
359

93
7
100
(602)

72
6
79
(545)

-

371
371

-

165

-

252

(602)
5
(1)
4
(607)

416
(591)
5
(1)
4
(595)

【Statement of production cost】
Previous fiscal year
(From April 1, 2021
to March 31, 2022)
Classification

Note

Amount (Millions of yen)

Current fiscal year
(From April 1, 2022
to March 31, 2023)
Ratio
(％)

Amount (Millions of yen)

Ratio
(％)

Ⅰ Material cost

256

70.9

250

68.6

Ⅱ Labor cost

60

16.7

66

18.2

45

12.4

48

13.2

362

100.0

364

100.0

Ⅲ Other expenses*１

Total manufacturing costs for theperiodInventory of work in process at the
beginning of the year
Total
Inventory of work in process at theend of the year
Transfer to other accounts*２

Cost of products manufactured in
the current fiscal year

34

29

395

393

29

23

211

254

156

115

The Company uses a standard cost accounting method based on specific cost accounting to calculate the production
cost. Cost variances are allocated to products, work in process, cost of sales, and fixed assets at the end of the period.
Note） *１ Detail of the cost are stated below
Item

Previous fiscal year
(Millions of yen)

Current fiscal year
(Millions of yen)Communication expenses

8

11

Depreciation and amortization

7

8

Storage fee

66Travel expenses

4

4

Expenses for rent of space, land, etc.

33*２ Details of transfers to other accounts are as follows.
Previous fiscal year
Item
(Millions of yen)

Current fiscal year
(Millions of yen)

Property, plant and equipment

102

137

Other

109

117

211

254

Total

－ - 66 - －③ 【Non-consolidated statements of changes in shareholders’ equity】
Previous fiscal year (From April 1,2021 to March 31, 2022）(Unit: Millions of yen)
Equity attributable to owners of parent
Capital Surplus

Retained earnings

Capital reserve

Other capitalreserve

Total capitalreserve

Legal retained
earnings

Otherretainedearnings
Retainedearnings
brought
forward10

26,714

16,413

43,128

0

(527)

(526)

(0)

－

－

－

－

－

(607)

(607)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(607)

(607)

－

10

26,714

16,413

43,1280(1,133)(1,133)(0)

Valuation and translation
adjustments
Valuation
Total
difference on valuation andavailable-fortranslation
sale securities
adjustments

StockacquisitionrightsTotal net assets

Share capital

April 1, 2021

Total retained
earnings

Treasury stock

Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthen shareholders equity(net)
Total changes during the
fiscal year
March 31, 2022

Shareholders’equityTotal
shareholders’equityApril 1, 2021

42,61178

78

19

42,708

(607)

－

－

－

(607)

－

－

－

－

－

－

(21)

(21)

－

(21)

(607)

(21)

(21)

－

(627)

42,00457

57

19

42,080Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthen shareholders equity(net)
Total changes during the
fiscal year
March 31, 2022

- 67 -

Current fiscal year (From April 1,2022 to March 31, 2023）(Unit: Millions of yen)
Equity attributable to owners of parent
Capital Surplus

Retained earnings

Capital reserve

Other capitalreserve

Total capitalreserve

Legal retained
earnings

Otherretainedearnings
Retainedearnings
brought
forward10

26,714

16,413

43,1280(1,133)(1,133)

(0)

－

－

－

－

－

(595)

(595)

－

－

－

－

－

－

－

－

(1,188)

－

－

－

－

－

－

－

－

－

－

－

－

－

(595)

(595)

(1,188)10

26,714

16,413

43,1280(1,728)(1,728)(1,188)Valuation and translation
adjustments
Valuation
Total
difference on valuation andavailable-fortranslation
sale securities
adjustments

StockacquisitionrightsTotal net assets

Share capital

April 1, 2021

Total retained
earnings

Treasury stock

Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthen shareholders equity(net)
Total changes during the
fiscal year
March 31, 2022

Shareholders’equityTotal
shareholders’equityApril 1, 2021

42,00457

57

19

42,080Changes during the period
(595)

－

－

－

(595)

Acquisition of treasury
stock
Changes in items otherthen shareholders equity(net)
Total changes during the
fiscal year

(1,188)－－－(1,188)

－

138

138

－

138

(1,783)

138

138

－

(1,645)

March 31, 2022

40,222

195

195

19

40,435

Net profit (loss)－ - 68 - －【Notes to non- consolidated financial statements】(Important items that form the basis for preparing “non-consolidated financial statements”)
1 Evaluation standards and method for important assets(1) Valuation standards and methods for securities
Bonds held to maturity........................................................Amortized cost method (straight-line method)
Other securities
Securities with market value.........................................Market value method
Securities without market value....................................Moving average cost method
Shares or investment in subsidiaries and associates ...........Moving average cost method(2) Valuation standards and methods for inventories
Finished goods, work in process........................................Specific cost method
Raw materials and merchandises.......................................Moving average cost method
Supplies..............................................................................Last purchase price method
Inventories with reduced profitability were devalued.
2 Depreciation methods of non-current assets(1) Property, plant and equipment
The declining-balance method is adopted. However, the straight-line method is applied to buildings (excluding attachedfacilities), building fixtures and structures acquired on or after April 1, 2016, assets for lease, and specific tools,
furniture, and fixtures.
The useful lives for major assets are as follows.
Buildings....................................................................3 to 50 years
Structure...................................................................10 to 20 years
Machinery and equipment............................................5 to 7 years
Vehicles........................................................................2 to 6 years
Tools, furniture and fixtures.......................................2 to 20 years
Assets for rent......................................................................5 years(2) Intangible assets
The straight-line method was adopted. Software for internal use is amortized using the straight-line method over theestimated useful lives (within five years)
Software...............................................................................5 years
Patent rights.........................................................................8 years(3) Long-term prepaid expenses
Depreciated in equal amounts.
3 Basis for recording allowances
Allowance for doubtful accounts
To prepare for potential credit losses on receivables, the Group records an estimated amount that CYBERDYNE can’t collectthrough calculating the historical rate of credit losses for standard receivables and the amount determined in considerationof the collectability of individual receivables for doubtful accounts and certain other receivables.
4 Basis for recording revenue
The Group recognizes revenue by applying the following steps.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Calculate the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation
Further details are stated in "notes on revenue recognition"- 69 -

5 Other material information regarding the preparation of financial statements(1) Basis for translating foreign-currency-denominated assets and liabilities into Japanese yen
The Group translates foreign-currency-denominated assets and liabilities based on the spot exchange rate at the date ofannouncement of financial statements. The Group processes translated differences as profit and losses.
Furthermore, Foreign-currency-denominated securities (other securities) are converted into Japanese yen at the spot
exchange rates and the valuation difference is included in the net assets as valuation difference on available-for-salesecurities.
(2) Processing deferred assets
Share issuance cost The entire amount is processed as expenditure at the timing of the issuance(Notes to accounting estimates)
The following is a list of items recorded in the financial statements for the fiscal year under review that may have a material
impact on the next fiscal year.
1 Valuation of property, plant and equipment(1) Amount recorded in the financial statements for the current fiscal year
(Unit: Millions of yen)Previous fiscal year
Property, plant and equipment
Intangible assets

Current fiscal year
13,662

13,6702921(2) Information that contributes to understanding the content of accounting estimates
For property, plant and equipment listed in (1), the Company searches for an indication that the assets or asset group may
be impaired as of the end of each reporting period. If so, the Company determines whether to recognize an impairment
loss on the asset or asset group by comparing the carrying amount of the asset or asset group with the total undiscounted
future cash flows from the asset or asset group.
As the Group's operating results are still in the negatives, the Group has identified signs of impairment in assets listedin (1). To determine whether an impairment loss should be recognized, the Company estimates the total undiscounted
future cash flows based on the business plan approved by the management.
The projections are subject to a high degree of uncertainty. Because of such nature, it may significantly impact estimatesof total undiscounted future cash flow.
2 Impact of the new type of coronavirus infection
The impact of the spread of new coronavirus infections is described in Note 4 " Significant accounting estimates andjudgments" of the Notes to Consolidated Financial Statements.
(Change in accounting policy)
Application of "Accounting Standard for Fair Value Measurement ", etc.
The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 31, July 17, 2021. Hereinafter referred to as"Accounting Standard for Calculation of Fair Value") are applied from the beginning of the current fiscal year. In accordancewith the transitional treatment set forth in paragraph 27-2 of the Accounting Standard for Calculation of Fair Value, theCompany has decided to apply the new accounting policies prospectively. This change has no impact on the financial
statements.

－ - 70 - －(Notes to non-consolidated balance sheet)*1 Reduction entry amountThe amount of reduction entry deducted from the acquisition cost by government subsidies, etc. is as follows
Previous fiscal year
(March 31,2022)
Buildings
Machinery & equipment
Tools, furniture & fixtures
Land
Software¥631 Million¥145 Million¥211 Million¥96 Million¥6 Million

Current fiscal year
(March 31, 2023)¥631 Million¥145 Million¥211 Million¥96 Million¥6 Million*2 Money claims and liabilities towards affiliated companies
Monetary claims and monetary obligations to affiliated companies other than those presented separately are as follows。
Previous fiscal year
(March 31,2022)
Short-term money claims
Long-term money claims
Short-term money liabilities¥320 Million¥109 Million¥19 Million

Current fiscal year
(March 31, 2023)¥183 Million¥858 Million¥241 Million*3 The Company have entered an overdraft agreement with a correspondent bank in order to raise working capital efficiently.
Unused lines of credit related to overdraft agreements are as follows.
Previous fiscal year
(March 31,2022)
Maximum limit of total line of credit
Balance of used line of credit
Balance of unused line of credit¥800 Millions－¥800 Millions- 71 -

Current fiscal year
(March 31, 2023)¥800 Millions－¥800 Millions

（Notes to non-consolidated statement of profit or loss）*１Main items, amounts and approximate percentages of other selling, general and administrative expenses are as follows
Previous fiscal year
(From April 1,2021
To March 31,2022)
Salaries
Depreciation and amortization
Research and development expenses
Taxes and dues

Current fiscal year
(From April 1,2022
To March 31,2023)¥309 Million¥125 Million¥723 Million¥104 Million¥295 Million¥128 Million¥692 Million¥113 Million

20.1%
79.9%

23.2%
76.8%

Approximate Percentage
selling expenses
general management expenses*2 Transactions with subsidiaries and affiliates
Previous fiscal year
(From April 1,2021
To March 31,2022)
Transaction volume from business transactions
Net sales
Other business transaction
Non-operating transactions¥47 Million¥48 Million¥181 Million

Current fiscal year
(From April 1,2022
To March 31,2023)¥60 Million¥120 Million¥173 Million(Notes to Marketable Securities)
Previous fiscal year (March 31, 2022)
Shares in affiliated companies and investments in affiliated companies (balance sheet amount: shares in affiliates ¥2,989
million and investments in affiliates ¥1,427 million) are not stated because they do not have market prices and it is extremely
difficult to determine their fair value.
Current fiscal year (March 31, 2023)
Shares in affiliated companies and investments in affiliated companies (balance sheet amount: shares in affiliates ¥3,167
million and investments in affiliates ¥1,947 million) are not stated as it does not have a market price.

－ 72 －(Tax effect accounting)
１ Main components of deferred tax assets and deferred tax liabilities related to tax effect accounting(Unit: Millions of yen)Previous fiscal year
(Ended March 31,2022)
Deferred tax assets
Tax loss carryforwards
Research and development expenses
Loss on revaluation of inventories
Lump-sum depreciable assets deduction limit excess
amountAccumulated impairment loss
Depreciation limit excess
Asset retirement obligations
Loss on valuation of investment securities
Loss on valuation of affiliated company stock andinvestment
Allowance for doubtful accounts
Accrued business tax
Other
Deferred tax asset subtotal
Valuation allowance for tax loss carryforwards
Valuation allowance for the total of future subtraction
temporary differences, etc.
Valuation reserve subtotal
Total deferred tax assets
Deferred tax liability
Removal costs corresponding to asset retirement
obligations
Valuation difference on other securities

Current fiscal year
(Ended March 31,2023)

2,232
98
34

2,114
71
38

6

4

1
202
27
−

1
219
28
56

20

112

31
1
30
2,683
(2,232)

31
1
43
2,717
(2,114)

(451)

(603)

(2,683)－(2,717)
－

6

5

30

101

Total deferred tax liabilities

36

106

Deferred tax liabilities, net

36

106

2 Reconciliation between the statutory tax rate and the effective income tax rate after the application of tax effect accounting
Previous fiscal year (March 31, 2022)
Information is omitted because a loss before income taxes was recorded
Current fiscal year (March 31, 2023)
Information is omitted because a loss before income taxes was recorded73

(revenue recognition)
Basic information to understand earnings
Service transferred over time
Service transferred over time includes rental income based on the individual rental contract and maintenance income based on
the maintenance contract of finance lease income where the Company acts as a lessor of the right-of-use asset.
The Company recognizes rental income as income generated throughout the rental period after the customer accepts therelevant product by either of the following methods. Pay-per-use model is based on times of product usage each month, andthe base fee model is based on the fixed monthly price.
The Group recognizes maintenance income as a performance obligation satisfied over time. The Company records thisrevenue during this contract period based on the average amount.
Asset transferred at a point of time
The asset transferred at a point of time includes revenue from sales of commodities and products based on the sales contract.
The Company mainly determines the performance obligation of sales of commodities and when the customer accepts therelevant product. The Company receives most of the payment within one month from the point of satisfying the performanceobligation. Regarding the transaction price, there is no significance in the amount of sales revenue that includes variableconsideration. Furthermore, there are no significant financial components in the amount of promised consideration.
Furthermore, if the Company acts as a lessor of right-of-use of its devices such as HAL, it classifies the relevant lease as afinance lease. Finance lease income is processed in the same way as cases where the Company acts as a lessor of
manufacturer or distributor of sales of goods. The Company determines that performance obligation is satisfied at the pointof customer acceptance, and the Company recognizes the revenue simultaneously.
Service transferred at a point of time
Service transferred at a point of time includes revenue from offering Cybernic Treatment and training services at Cybernics
Treatment Center and Robocare Centers to end-users (such as patients).
The Company determines the performance obligation of Cybernics Treatment, as well as training services when theprovision of such services is completed.
The basis for recognizing revenues is stated in the "(4) Accounting policy Standards for recording revenue" in the
Important items that form the basis for preparing the Consolidated Financial Statements section.
(Business Combinations, etc.)
Business Combination through Acquisition
Notes are omitted because the same information is presented in "7. Business Combinations" in the notes to the consolidated
financial statements.

－ 74 －

(Significant subsequent events)
Not applicable.

75

④【Supplementary schedule】【Schedule of Tangible Fixed Assets, etc.】

Type of assets

Accumulated
Balance at theAmount ofAmount ofBalance at the depreciation or
Balance at the
Amortization for
beginning of the increase during decrease during end of the fiscal amortization at
end of current
the yearfiscal year
the fiscal year
the fiscal year
year
the end of fiscal
period(millions of yen)(millions of yen) (millions of yen) (millions of yen) (millions of yen)year
(millions of yen)(millions of yen)

Property, plant and equipment
Buildings, net

3,045

861

－

3,905

1,281

135

2,624

Structures, net

82

37

－

119

54

5

65

Machinery & equipment, net

230

－

－

230

229

0

1

Vehicles & delivery
equipment, net

37

2

2

37

33

2

4

Tools, furniture & fixtures,
net

1,393

130

19

1,504

1,287

95

217

Rental assets, net

1,208

172

14

1,366

939

165

426

Land

9,872

－

－

9,872

－

－

9,872

Construction in progress

1,248

613

1,401

460

－

－

460

Total property, plant and equipment

17,115

1,814

1,436

17,493

3,823

403

13,670Patents

20

－

16

4

3

0

0

Software

104

2

16

90

73

9

16

Other

6

－

－

6

2

0

5

129

2

32

100

78

10

21

Intangible assets

Total intangible assets

Note 1. "Accumulated depreciation or amortization at the end of fiscal year" includes accumulated impairment loss.
2. "Balance at the beginning of the fiscal year" and "Balance at the end of the fiscal year" are stated at acquisition cost.
【Allowance Schedule】
Type of assets
Allowance for doubtful accounts

Balance at the beginning of
the fiscal year
(millions of yen)Amount of increase during
the fiscal year
(millions of yen)Amount of decrease during
the fiscal year
(millions of yen)

Balance at the end of the
fiscal year
(millions of yen)

94

4

3

94

－ 76 －

(2) 【Details of main assets and liabilities】
Details are omitted since consolidated financial statements are prepared.
(3) 【Other】
Not applicable.

77