[Translation]

Annual Securities Report(The 20th Business Term)
From April 1, 2023, to March 31, 2024

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," was audited by
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 16

Term 17

Term 18

Term 19

Term 20

March 2020

March 2021

March 2022

March 2023

March 2024

Revenue

Millions of yen

1,792

1,875

2,150

3,289

4,354

Operating profit (loss)

Millions of yen-1,039-700-878-1,145-2,018

Profit (loss) before tax

Millions of yen

91

408

-389

53

-1,141Millions of yen

-152

-59

-498

-298

-1,476

Millions of yen

42

-479

-371

-131

-1,284

Millions of yen

44,26843,77643,413

42,10140,752Millions of yen

47,808

48,11949,46750,18749,999Equity attributable to ownersof the parent per shareYen

205.71203.39201.74

199.32

192.93

Basic earnings (loss) per share

Yen

-0.71

-0.27

-2.32

-1.39

-6.99

Diluted earnings (loss) per
share

Yen

-0.71

-0.27

-2.32

-1.39

-6.99

Ratio of equity attributable toowners of the parent

%

92.6

91.0

87.8

83.9

81.5

Return of equity attributableto owners of the parent

%

−

−

−

−

−

Price-to-earnings ratio

Ratio

−

−

−

−

−

Cash flow from operating
activities

Millions of yen

-215

-775

-564

-143

-850

Cash flow from investing
activities

Millions of yen-244-2,794-1,7882,173-2,075

Cash flow from financing
activities

Millions of yen

1,304

617

1,248

14

160

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
9,636
6,704
5,677
7,801
5,155
fiscal year
Numbers of employee
95
96
201
257
227
(Average number of nonPersons
(56)
(44)
(47)
(55)
(54)
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 theparent.
3. 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 term 19, the Company finalized the provisional accounting treatment for the business combination, and the related key
management indices for term 18 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.

－ 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 16

Term 17

Term 18

Term 19

Term 20

March 2020

March 2021

March 2022

March 2023

March 2024

1,595

1,663

1,564

1,715

1,835

-615

-521

-602

-545

-269

-849

-527

-607

-595

-1,431

26,778

10

10

10

10

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

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

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

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

43,16742,70842,08040,43538,87443,89943,29542,663

41,531

39,717200.56

198.43195.51

191.42184.03

−

−

−

−

−

(−)

(−)

(−)

(−)

(−)

Dividend per share(Interim dividend per share)

Yen

Net profit (loss) per share

Yen

-3.95

-2.45

-2.82

-2.77

-6.78

Diluted net income per share

Yen

−

−

−

−

−

Capital ratio

%

98.3

98.6

98.6

97.3

97.8

Return on equity

%

−

−

−

−

−

Price-to-earnings ratio

Ratio

−

−

−

−

−

Payout ratio

%

−

−

−

−

−

78

81

84

82

83

(47)

(39)

(40)

(37)

(36)

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

Persons

Total shareholder return

%

88.5

93.4

53.2

41.5

31.1

(Comparative index: Tokyo Stock
Exchange Mothers Index)%(64.9)(125.9)(82.7)(78.4)(98.1)

Highest share price

Yen

753

975

695

463

357

Lowest share price

Yen

320

360

307

276

196

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 the return of equity as CYBERDYNE recorded a net loss attributable to owners of the parent.
3. The Company did not state the price-to-earnings ratio, as CYBERDYNE recorded a 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 the 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 that submits and prepares financial statements under Article 127of 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, 2023, to March 31, 2024) and the non-consolidated financial statements
for the business year (from April 1, 2023, to March 31, 2024).

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 in accounting standards, etc., the Company joined the Financial
Accounting Standards Foundation and participated in seminars 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 occasionally to keep track of the latest standards. To prepare the appropriate
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, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

8, 33

7,801

Trade and other receivables

9, 33

540

674

Other financial assets

10, 33

9,507

11,504Inventories

11

991

997

Other current assets

12

308

139

19,147

18,469Total current assets

5,155

Non-current assets
13, 18430

359

Property, plant and equipment

13

13,406

13,237Right of use assets

18

546

482

Goodwill

14

2,531

2,134

Intangible assets

14

80

48

Investment accounted for using equity method

15

240

261

Other financial assets

10, 33

13,641

14,814

Other non-current assets

12

166

196

31,04031,53050,18749,999Operating lease assets

Total non-current assets
Total assets

－ 5 －

Note

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

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

19, 33

Bonds and borrowings

17, 31, 33

89

84

Lease liabilities

18, 31, 33

147

160

Other current liabilities

690

22

Total current liabilities

606

365

386

1,291

1,236

Non-current liabilities
Bonds and borrowings

17, 31,33

21

22

Third-party interests in CEJ Fund

31, 33, 34

4,792

5,733

Lease liabilities366

18, 31, 33

412

Provisions

21

96

96

Deferred tax liabilities

16

1,577

2,040

Other non-current liabilities

14

30

Total non-current liabilities

6,913

8,286

8,204

9,523

Total liabilities
EquityShare capital

23

10

10

Capital surplus

23

42,87742,811

Treasury shares

23-1,188-1,18832, 33

-979

-787

23

1,381

-95

42,10140,752-118-275

41,983

41,47750,18749,999Other components of equity
Retained earnings
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
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

6, 25

3,289

4,354

11, 18, 20, 26-1,498-1,961

1,791

2,393

18, 20, 26

-735

-877

18, 20, 26-2,406-3,251-3,140-4,129212

424

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)

-8

-707

-1,145-2,018Finance income

28, 33

1,312

543

Finance costs

33

-193

-482

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

34

274

796

15

-195

21

53

-1,141

Profit (loss) before tax
Income tax expense

16

-446

-50

-393

-1,648

Owners of parent-298-1,476

Non-controlling interests

-95

-172

Profit (loss)-393-1,648

Profit (loss)

Profit (loss) attributable toEarnings (loss) per share
Basic earnings (loss) per share (yen)

30

-1.39

-6.99

Diluted earnings (loss) per share (yen)

30

-1.39

-6.99

－ 7 －

【Consolidated statement of comprehensive income】
Note

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

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Profit (loss)-393-1,648

36

-59

36

-59

134

231

134

231

170

172

-223

-1,477

Owners of parent-131-1,284Non-controlling interests

-91

-193

Comprehensive income-223-1,477

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
42,869－－－8－

Millions of yen
-0
－
－
－
－
-1,188Financialassetsmeasured atfair value
through othercomprehensive
incomeMillions of yen-1,306
－
36
36
－
－

－

－

－

－

－

－

－

－

－

－

－

－

－
－
10
－
－
－
－
－

－
8
42,877－－－
7－－-1,188-1,188
－
－
－
－
-0

－
－
-1,270
－
-59

－
－
272
－
251

-59
－
－

251
－
－

－
－
19
－
－
－
－
－

－

-73

－

－

－

－

－

－

－

－

－

－

－
－
10

－
-66
42,811－-0-1,188－－-1,329

－
－
523

－
－
19

Note

April 1, 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
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, 2024

32
23

32
23

－ 9 －

Exchangedifferences ontranslation offoreign
operations

StockacquisitionrightsMillions of yen
142
－
130
130
－
－

Millions of yen
19
－
－
－
－
－

Equity attributable to owners of parent
Note

April 1, 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
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, 2024

32
23

32
23

Other
components ofequityTotal
Millions of yen-1,145
－
166
166
－
－

Retainedearnings

Total

Millions of yen
1,679
-298
－
-298
－
－

－

Non-controllinginterests

Total equity

Millions of yen
43,413
-298
166
-131
8
-1,188Millions of yen
38
-95
4
-91
－
－

Millions of yen
43,450
-393
170
-223
8
-1,188

－

－

9

9

－

－

－

-75

-75

－
－
-979
－
192
192
－
－

－
－
1,381
-1,476－-1,476－－－-1,18023,101-1,476
192-1,284
7
-0

2
-65
-118
-172
-21
-193
－
－

2
-1,244
41,983-1,648172-1,477
7
-0

－

－

-73

31

-42

－

－

－

5

－

－
－
-787

－
－
-95

－
-66

2
36

5
-30

40,752-275

40,477－ 10 －

④ 【Consolidated statement of cash flows】
Note

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

Current consolidated fiscal year
(From March 31, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
13, 14, 18
Impairment losses
14
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 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
Distributions and redemptions from CEJ Fund
into third-party 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 the beginning of the
8
fiscal year
Cash and cash equivalents at the end of the year
8

11

53
627
－
(1,312)
193(274)(1,141)
677
660
(543)
482
(796)

195

(21)

98

(6)

(275)

(134)

379
261
(55)
20
(0)
－
2

(85)
88
(819)
27
(0)
(7)
－

(110)

(52)

(143)

(850)

(15,000)
18,000(2,000)
4,500
(451)
(58)
(3,309)556(20,000)
18,000
－
－
(216)
(8)
(455)
572

(23)

－

(69)
13
14

(3)
5
29

2,173

(2,075)(12)(1,188)
(153)

(10)
(0)
(174)

1,380

680

－

-320

(13)

(16)

14

160

80

120

2,124

-2,646

5,677

7,801

7,801

5,155

【Notes to consolidated financial statements】
1. Nature of operationsCYBERDYNE, INC. (the "Company") is 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, and Shinji Honda, Director and COO of the Company, on June 24, 2024.
(2) Basis of measurement
As described 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 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
The Group adopted the following standards beginning from the fiscal year under review
IFRS
Summary of new and revised
IAS 12

Income Taxes

Clarify accounting for deferred taxes on leases and disposal obligations

Adopting the above standards did not have a material impact on the Group's consolidated financial statements.

－ 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 it loses control of the subsidiary.
Some of the subsidiaries have a close date of December 31. Due to the relationship with other shareholders andcontract agreements, practically unifying these subsidiaries' closing dates is impossible. As such, these subsidiaries
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 when preparing the consolidated financial statements.
Comprehensive income of subsidiaries is attributed to owners of the parent and 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 in a loss of control, profit or losses
arising from the loss of control are recognized as net loss.
② Associates
An associate is defined as an entity over which the Group significantly influences financial and operating policy
decisions 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 at most
50% of the voting rights of that entity.
Investments in associates are accounted for by the equity method from the date the Group gains significant
influence to the date it loses that influence.
Suppose the Group's share of the associates' loss (amount equivalent to equity interest) exceeds the Group’s shareof the investment in the associate. In that case, the Group reduces the carrying amount of the investment to zero. It
does not recognize any further losses unless the Group incurs or pays obligations (legal or constructive obligations)on behalf of the associate.
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 shall be included in the carrying value of the investment.
The relevant goodwill is not recognized separately, so it shall not be tested for impairment individually.
However, suppose there is objective evidence on the possibility of impaired investment. In that case, the Groupshall test its investment to associates for impairment by recognizing the investment as a single asset in net amounts.
③ Jointly controlled company
A jointly controlled company is an entity jointly controlled by two or more parties, including the Group under thecontractually agreed share of control of an arrangement over the economic activity of the jointly controlled company,
which exists only when the decision for strategic, financial, and operating decisions related to relevant activities
require unanimous consent of the parties sharing control. A jointly controlled company of the Group is accounted forusing the equity method.
Some of the jointly controlled company has a close date of December 31. Due to the relationship with othershareholders and agreements of contract, it is impossible to practically unify the closing date for the said jointly
controlled company. As such, the Group adjusts important transactions and events during the period to reflect the
impact of changes caused by the difference in 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 the 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.
Suppose the initial accounting for a business combination is incomplete by the end of the fiscal year in which the
combination occurs. In that case, provisional amounts of incomplete items are measured and adjusted during themeasurement period within one year from the date of acquisition. During the measurement period, the Group shallretrospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained
about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurementof the amounts recognized as of that date. If this new information brings about new recognition of assets and liabilities, itwill be recognized as additional assets and liabilities. The measurement period could last up to one year from the date ofacquisition.
The additional acquisition of non-controlling interests is accounted for as an equity transaction; therefore, no goodwill
is recognized for such a 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 classified as held for sale under IFRS 5 “Non-current assets held for sale anddiscontinued operations.”
In a business combination achieved in stages, the Group re-measures its previously held equity interest at its
acquisition-date fair value. It recognizes the resulting gain or loss, if any, in net 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 functional currency using the rates at the end of the reporting
period.
Non-monetary items measured at fair value in foreign currencies are translated into the functional currency using
the exchange rates when the fair value was measured.
Exchange differences 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 are recognizedin 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 there were no significant fluctuationsin the exchange rates. Exchange differences arising from the 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 from equity to profit or loss when thegain or loss on disposal is recognized.

－ 14 －

(4) Financial instruments① Financial assets(i) Initial recognition and measurement
The Group classifies its financial assets 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 at amortized cost.
The classification of measurements is conducted at 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 conditions are met.
・The financial asset is held in a business model whose objective is to hold financial assets to collect contractual
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 not measured through amortized cost are classified as equity instruments measured at fairvalue.
Excluding equity instruments measured at fair value through profit or loss that is held for trading, for each
equity item, 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
assets as follows:(a) Financial assets measured at amortized cost
The effective interest method recognizes the carrying amounts of financial assets measured at amortized cost.
(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 continues 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
For impairment of financial assets measured at amortized cost, the Group recognizes an 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.
Suppose credit risk on a financial instrument has not increased significantly since initial recognition. In thatcase, the allowance for doubtful accounts for that financial instrument equals the 12-month expected credit losses.
If credit risk in a financial instrument has increased significantly since initial recognition, the allowance for
doubtful accounts equals the lifetime expected credit losses.
The Group determines if credit risk has increased significantly by evaluating changes in default risk concerning
factors such as downgrading internal credit ratings, declining counterparty results, and delinquency information.
Furthermore, suppose the credit risk is determined to be low as of the closing date. In that case, the Group shallassess 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 always equals 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 financial liabilities measured at fair value through profit or loss or atamortized cost. This classification is conducted upon initial recognition.
All financial liabilities are measured at fair value. However, financial liabilities measured at amortized cost aremeasured in the total amount after deducting directly attributable transaction costs from the fair value.
(ii) Subsequent measurement
Financial liabilities are measured according to the classification of the financial liabilities after initial recognition.
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 is discharged, canceled, 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 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 trusts.
(6) Inventories
Inventories are measured at the lower value between cost and net realizable value. The cost of finished goods and workin process are calculated using specific identification methods and purchase costs. Merchandise and raw materials arecalculated using the moving average method. These include processing costs and all other costs incurred in bringing theinventories to their existing location. Net realize value is the estimated selling price in the ordinary course of businessminus the estimated completion costs and the costs necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are presented at a cost calculated by deducting accumulated depreciation and impairment
losses from the purchase cost.
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 straight-line over the assets' estimateduseful lives. 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, except for intangible assets with an indefinite useful life, intangible assets are amortizedon a straight basis over their estimated useful lives. After deducting the accumulated depreciation and impairment
loss, they are presented at acquisition cost.
Expenditures related to internally generated intangible assets are recognized as expenses when incurred, except
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 if they can be measured
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. In these cases, lease payments are amortized over the lease term by the straight-line orother regular methods.
Leases as lessor
Leases for which the Group is the lessor are classified as finance or operating leases when the lease contract becomes
effective.
When the Group classifies leases, the Group conducts comprehensive evaluations of whether all of the risks andeconomic values associated with ownership of the underlying asset are substantially transferred. If they are transferred,
the lease is classified as a finance lease; if not, it is classified as an operating lease. As part of this evaluation, the Groupconsiders specific 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 under 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 impairment is indicated, the asset's recoverable amount is estimated.
A cash-generating unit, which is a unit for conducting impairment testing, is the smallest group of assets that generates
cash inflows, which are generally independent of cash flows of other assets or groups of assets.
Recoverability is measured using the higher of the following: fair value after deducting disposal costs or 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 recognized as an impairment loss in profit or loss. When testing goodwill for impairment, thecash-generating units to which goodwill is allocated are consolidated so that impairment is tested to reflect the smallest
unit to which goodwill relates. Goodwill acquired through a business combination is allocated to cash-generating units
expected to generate synergies from the combination. An impairment loss recognized in connection with a cashgenerating unit is allocated first to reduce the carrying amount of goodwill allocated to that unit and then to reduce thecarrying amount of other assets in the cash-generating unit proportionally. Value in use is the present 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 expenses whenrelated services are rendered. For bonuses, when there is a legal or constructive obligation to make payments of bonuses,
and a reliable estimate of the obligation can be made, the estimated amount to be paid is accounted for as a liability.
Paid leave expenses are recognized when labor that grants an employee additional rights to paid leave is incurred.
(12) Share-based payment① Stock options
The Company has a stock option scheme accounted for as an equity-settled share-based payment scheme. The equitysettled share-based payment scheme is estimated at the fair value of the date of allotment, taking the estimated numberof subscription rights to share that are 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. The fair value of the allotted option is calculated
mainly by the Black-Scholes Model, considering the conditions of the option. Furthermore, the conditions of stock
options are reviewed regularly, and estimates of subscription rights to share are adjusted where necessary.
② Shares with transfer restriction
The Group has adopted shares with transfer restrictions as a compensation plan for its employees.
Consideration received for services is recognized as an expense by a straight-line method over a certain period fromthe day of allotment. 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 due to a past event, an outflow
of resources embodying economic benefits will probably be required to settle the obligation, and a reliable estimate canbe made of the obligation amount. Where the time value of money is material, a provision is measured by its present
value, to which estimated future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to
the provision. Interest costs associated over time are 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 revenue recognition 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 attached to them and that the grants will be received. The Group fulfills the incidental
condition for grants and receives reasonable assurance that the grants are scheduled for delivery.
For government grants related to expense items, related costs that grants will compensate are regularly recognizedover the recognized term as revenue. Grants related to assets are calculated by deducting the amount of relevant 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
recognized directly in equity or 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 laws enacted or substantively enacted by theend 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, as well as 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 the initial recognition of assets and liabilities from transactions that are notbusiness combination transactions, that do not affect accounting profit or taxable income (loss) at the time of thetransaction, and that do not give rise to an equal amount of future additional temporary differences and future
subtractive temporary differences at the time of the transaction
・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, probably, the temporary differences will not reverse in
the foreseeable future.
The carrying amount of deferred tax assets is 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. They are recognized to the extent
that it 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 expected to apply when the assets are realized, or theliabilities are settled based on the tax rates and laws enacted or substantively enacted by the end of 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 it meets any of the following conditions: If it relates to income taxes levied by thesame tax authority, if different taxable entities intend to settle current tax assets and liabilities on a net basis, or if therealization of assets and settlement of liabilities are done 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 an increase incapital. The 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 is consolidating Cybernic Excellence Japan Fund 1 Investment Limited Partnership (“CEJ Fund”) for thefollowing reasons.
The Company practically decides on the investment of CEJ Fund through its consolidated subsidiary CEJ Capital, Inc.
(general partner "GP" of CEJ Fund), which gives the Company control. As a GP, CEJ Capital, Inc. receives theperformance fee, and the Company gets returns based on the performance according to its contribution as a Limited
Partner ("LP") of CEJ Fund. As the Company has the power over the CEJ Fund to influence the return, the Company
has the control based on IFRS 10 "Consolidated Financial Statements."
Inter-company transactions such as management and performance fees to CEJ Capital, Inc., GP of CEJ Fund, to be
paid from CEJ Fund are eliminated in consolidation.
② Investment by CEJ FundFor financial instruments measured at fair value, except financial assets that are held for trading purposes that must be
measured at fair value through profit or loss, for each financial instruments, the Group classifies each capital-based
financial asset to either financial assets measured at fair value through profit or loss or financial assets measured at fairvalue 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. This agreement states that equity interests in the CEJ Fund held by LPs other than the
Company (from now on, “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 of financial
position and classified as “financial liabilities measured at amortized cost.” The carrying amounts of the liabilities isthe amount of equity vested in Third-Party Investors under the limited partnership agreement for investment,
assuming that the Fund was liquidated at the end of each quarter.
“Third-party interests in CEJ Fund” are subject to change depending on payments from Third-Party Investors
based on Capital Calls, 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 Fund.
Contributions from Third-Party Investors are presented as "Contribution into CEJ Fund from third-party investors"
under cash flows from financing activities in the consolidated statement of cash flow. Distribution and refunds tothird-party investors are presented as "Amounts distributed and refunded to third-party investors" under cash flowfrom financing activities.
(b) Contribution from the Company
Contribution from the Company to CEJ Fund as an LP is eliminated in consolidation.

－ 22 －

4. Significant accounting estimates and judgments
Preparing the consolidated financial statements in conformity with IFRS requires management to make estimates andassumptions that affect the application of policies and reported amounts of assets, liabilities, income, expenses, and related
disclosures. Due to the uncertain nature of estimates, in some cases, actual results may vary from initial estimates.
Management reviews the estimates and their underlying assumptions continuously. The effects of revisions to accounting
estimates and assumptions are recognized from the accounting period when the estimates are revised and all accounting
periods after that point.
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”
・ 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")
・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 are the standards and interpretations issued before the approval date for the consolidated financial statements
but have not yet been adopted by the Group.
The impact of the application of these accounting standards is still being calculated.
Mandatory effective date（start date）

IFRS

IFRS 18

Presentationand disclosure
January 1, 2027
in Financial
Statements

Effective date for
the Group

Outline of
the establishment and revision

A new standard that will replace
Fiscal year ending the current standard IAS 1 about
March 31, 2028
presentation and disclosure in
financial statements

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 assess 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
Please refer to Note "25. Revenue" on information related to products and services.
(4) Geographical information
Revenue to customers and non-current assets by region consists of the following:
Revenue to customers
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Japan

1,547

1,457

US

1,102

1,521

EMEA (Europe, Middle East and Africa)

271

908

APAC

370

468

3,289

4,354

Total

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

Non-current assets
Since most non-current assets are in Japan, the amount of non-current assets in the consolidated financial position andinformation on non-current assets by geographical area are omitted.
(5) Information about major customers(Unit: Millions of yen)
Name of customer
Petroliam Nasional Berhad

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

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)－－ 24 －

Related segments
440

Business related to robots

7. Business combination
The previous fiscal year (from April 1, 2022 to March 31, 2023)(Acquisition of LeyLine GmbH)(1) Outline of business combination① Name of the acquired company and its business
Name of the acquired company
LeyLine GmbH
Outline of the business
Management of PETRONAS MIE Racing Honda Team, Development,
Production, developing human resources② Acquisition date
March 31, 2023
③ Percentage of voting equity interest acquired
63.6%④ The main reason for the business combination
LeyLine’s philosophy is to continue innovating in motorcycle racing by leveraging the development, prototyping,
manufacturing, and management skills under extreme racing conditions that CEO Midori Moriwaki has cultivatedthrough domestic and international motorcycle competitions such as the World Superbike Championship.
The Company group’s Cybernics Technologies include IoH/IoT sensing, artificial intelligence autonomous robot
technology, Cybernics mobility technology, advanced elemental technologies such as environmental awareness, Big
Data, AI analysis, cloud computing, and human-robot integration technologies, and is working toward deployment in
the mobility field, including autonomous robots for cleaning and transportation and next-generation Cybernics
mobility. In September 2021, the Company group entered a strategic partnership with LeyLine. In addition todeveloping self-driving robots and Cybernic mobility, the Group has been developing technologies to ensure driversafety and acquire and analyze cranial neuromuscular system information and critical parts to be used in EV bikes. The
Company has reached this agreement because LeyLine is expected to accelerate the business and increase theCompany’s corporate value in the field of 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
The 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 interest
Goodwill

414
420
20
-379
60
-75
278

Note
1. The acquisition-related expenses related to the business combination were ¥4 million. The entire amount wasrecorded in "Selling, general and administrative expenses" in the consolidated statements of income.
2.Non-controlling interests are measured as the non-controlling interest's proportionate share of the acquiree's
identifiable net assets at the date of acquisition of control.
3.Goodwill was generated from synergies with existing businesses and excess earning power expected from futurebusiness development.
4.The allocation of acquisition cost was tentatively accounted for, but the allocation of acquisition cost was finalized at
the end of the fiscal year under review. No revision has been made to the amount of goodwill.

25

(3) Cash flows from acquisition
AmountMillions of yen
Consideration for acquisition of subsidiary414

Accounts payable - other-210

Cash and cash equivalents paid for the acquisition

203

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

-180
23

(4) Cash flows from acquisition
The Group's consolidated statements of profit or loss do not include revenue and net profit generated from LeyLine
GmbH after the acquisition date.
Assuming that the business combination had taken place at the beginning of the fiscal year, the Group's revenue andnet loss for the fiscal year would have been 3,517 million yen and -583 million yen, respectively. This pro forma
information is unaudited by the audit corporation.
The current fiscal year (From April 1, 2023 to March 31, 2024)
There was no applicable item

－ 26 －

8. Cash and cash equivalents
Cash and cash equivalents consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2024)

Millions of yen

Millions of yen

Cash and cash equivalents
Cash and deposits

7,801

5,155

Total

7,801

5,155

The balance of cash and cash equivalents presented in the consolidated statement of financial position is equal to that 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, 2023)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2024)

Millions of yen

Millions of yen

Accounts receivable-trade531

Accounts receivable-other

14

34

Allowance for doubtful accounts

-4

-23

Total

540

674

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

27

663

10. Other financial assets(1) Other financial assets
Other financial assets consist of the following:
Previous consolidated fiscal year
(As of March 31, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

Other financial assets
Financial assets measured at amortized cost:
Bonds

9,500

11,500

Leasehold and guarantee deposits

87

89

Other

30

22

Equity securities

8,136

9,276

Convertible bonds

4,141

4,266

7

11

1,246

1,154

23,14826,318Financial 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

9,507

11,504Non-current assets

13,641

14,814

23,14826,318Total(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, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

ListedKringle Pharma, Inc.

195

105

Cyfuse Biomedical K.K.

117

69

312

174

WHILL, Inc.

626

626

Materials Innovation Tsukuba Co. Ltd.

100

100

Other

207

254

933

980

Total
Not-listed

Total

As equity securities are held mainly to strengthen relationships with investees, the shares are considered financial 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.

－ 28 －

11. Inventories
Inventories consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2024)

Millions of yen

Millions of yen

Merchandise and finished goods

229

259

Work in process

24

75

738

663

991

997

Raw materials
Total

The inventories recognized as expenses and included in the cost of sales for the previous consolidated fiscal year andthe current consolidated fiscal year were ¥436 million and ¥377 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 ¥16 million and ¥7 million, respectively.
12. Other assets
Other assets consist of the following:
Previous consolidated fiscal year
(Fiscal year ended
March 31, 2023)

Current consolidated fiscal year
(Fiscal year ended
March 31, 2024)

Millions of yen

Millions of yen

Other current assets
Prepaid expenses

179

121

Consumption taxes receivable

25

3

Other

104

15

308

139

Total
Other non-current assets
Long-term prepaid expenses

52

55

Other

114

141

166

196

Total

29

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

Other

Construction inprogress

Subtotal

Millions of yen
3,172
50
－

Tools,
furniture andfixtures
Millions of yen
1,453
147
-19

Millions of yen
274
5
-3

Millions of yen
1,248
614
－

Millions of yen
16,019
817
-23

－

0

2

0

－

4

4

－
1,384

－
9,872

860
4,083

－
1,583

－
276

-1,401461-541
16,276-541
17,660Acquisition

117

－

3

83

7

9

103

220

Sales and disposals
Exchange differences ontranslation of foreign operations
Other

-22

－

－

-6

－

－

-6

-28

－

－

4

23

1

－

28

28

－
1,479

－
9,872

－
4,090

－
1,683

－
285

-4
467

-4
16,397-4
17,877

Acquisition costs
April 1, 2022
Acquisition
Sales and disposals
Exchange differences ontranslation of foreign operations
Other
March 31, 2023

March 31, 2024

Land

Buildings andstructures

Millions of yen
1,226
172
-14

Millions of yen
9,872
－
－

－

Total
Millions of yen
17,245989-37

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, 2022

-796

－

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

-171

－

-162

-123

-1

－

-287

-459

Sales and disposals

14

－

－

19

3

－

22

36

Exchange differences ontranslation of foreign operations

－

－

-0

－

-2

-2

March 31, 2023

-954

－

-1,279-1,325-266－-2,870-3,823

Depreciation

-168

－

-167

-104

-5

－

-275

-444

2

－

－

5

－

－

5

7

－

－

-3

-17

-0

－

-20

-20

-1,120－-1,449-1,440-271－-3,161-4,280

Sales and disposals
Exchange differences ontranslation of foreign operations
March 31, 2024

-1

-1

(Note) Depreciation of property, plant and equipment is included in the 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

Land

Buildings andstructures

Millions of yen

Millions of yen

Millions of yen

Tools,
furniture andfixtures
Millions of yen

April 1, 2022

430

9,872

2,055

March 31, 2023

430

9,872

2,804

March 31, 2024

359

9,872

2,640

Carrying amounts－ 30 －

Total

Other

Construction inprogress

Subtotal

Millions of yen

Millions of yen

Millions of yen

Millions of yen

234

7

1,247

13,416

13,846

258

11

461

13,406

13,837

243

14

467

13,237

13,596(2)Impairment loss
As the Group's operating results are still negative, the Group has identified indications of impairment in the cashgenerating units to which the assets in (1) above belong. In performing the impairment test, the recoverable amountof the cash-generating units is measured by the higher amount between the fair value after deducting the cost of
disposal and the value in use. The value in use is calculated as the discounted present value of the estimated future
cash flows. The future cash flows are based on the business plan approved by the management. To calculate thefuture cash flow after the period covered by the business plan, the Group calculates its growth rate, considering
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 (10.3% for the previous fiscal year and 8.9% 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 probability of medical device approvals and insurance coverage, the numberof 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, 2022
Acquisition
Acquisition through business combination
Sales and disposals
Exchange difference on translation of foreign
operations
March 31, 2023
Acquisition
Acquisition through business combination
Sales and disposals
Exchange difference on translation of foreign
operations
Other
March 31, 2024

Goodwill
Millions of yen
2,070
－
336
－

Customer-related
assetsMillions of yen
52
－
26
－

SoftwarePatents

Other

Total

Millions of yen
171
2
－
－

Millions of yen
20
－
－
－

Millions of yen
10
9
－
－

Millions of yen
252
11
26
－

125

－

0

－

0

0

2,531
－
－
－

77
－
－
－

173
－
－
－

20
－
－
－

19
－
－
－

289
0
－
－

250

3

0

－

2

5

－

－

－

－

－

－

2,781

81

173

20

21

294

Intangible assets
Accumulated amortization and impairment losses
April 1, 2022
Amortization
Sales and disposals
Exchange difference on translation of foreign
operations
March 31, 2023
Amortization
Impairment losses
Sales and disposals
Exchange difference on translation of foreign
operations
Other
March 31, 2024

Goodwill
Millions of yen－－－

Customer-related
assetsMillions of yen
-10
-18
－

SoftwarePatents

Other

Total

Millions of yen
-142
-14
－

Millions of yen
-19
-0
－

Millions of yen-5-1－

Millions of yen
-176
-33
－

－

－

－

－

-0

-0

－
－
-643
－

-27
-11
-17
－

-156
-6
－
－

-19
-0
－
－

-6
-3
－
－

-209
-20
-17
－

－

-0

－

－

-0

-1

-4

－

－

－

－

－

-647

-55

-162

-20

-9

-247

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

31

Intangible assets
Goodwill

Carrying amount
April 1, 2022
March 31, 2023
March 31, 2024

Millions of yen
2,070
2,531
2,134

Customer-related
assetsMillions of yen
42
50
26

SoftwarePatents

Other

Total

Millions of yen
29
17
10

Millions of yen

Millions of yen

0
0
－

5
13
12

Millions of yen
76
80
48

(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 from business combinations is allocated to the cashgenerating units that will benefit from the business combination at the acquisition date.
Previous fiscal year
(Fiscal year ended
March 31, 2023)

Current fiscal year
(Fiscal year ended
March 31, 2024)

RISE Healthcare Group, Inc.
C2, Inc.
LeyLine GmbH
Other

1,526
643
301
61

1,731
―

Total

2,531

2,134

347
57

(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 for RISE Healthcare Group, Inc. in the current consolidated fiscal year and the previous consolidated fiscal
year were 9.8% and 10.3% respectively, and 10.9% and 17.4% respectively for LeyLine GmbH. The growth rate isdetermined by considering the average long-term growth rate in the market or the country to which the cashgenerating unit belongs.
These projections are subject to a high degree of uncertainty and can significantly impact value-in-use estimates.
No impairment loss on goodwill was recognized in the previous fiscal year.
In the current fiscal year, based on a review of the future recoverability of fixed assets such as goodwill and otherassets of the Group's consolidated subsidiaries, an impairment loss of ¥660 million (including ¥643 million for
goodwill and ¥17 million for intangible assets) was recorded under "Other expenses" in the consolidated statements
of profit or loss.
The Company acquired C2, Inc. (“C2”), a developer and operator of the “JUKUSUI” healthcare application for
smartphones, in 2021 to expand its business in the healthcare field. Through aggressive investment in advertising
after the acquisition, the number of paid service users of “JUKUSUI” has doubled to over 30,000.
However, after reviewing the cost-effectiveness of C2’s advertising investment and its impact on the Company’s
consolidated performance, it was decided to reduce the scale of advertising investment to prioritize improving
operating profit, resulting in the posting of impairment losses in the current fiscal year.
In other cases, although there is a risk of impairment if the assumptions used in the impairment testing were tochange, the value in use is well over the carrying amount of the cash-generating unit group concerned. It isconsidered unlikely that the value in use would be less than the carrying amount, even if the assumptions used in the
impairment testing changed within a reasonably foreseeable range.

－ 32 －

15.

Investments accounted for using the equity method
Investments in associates are accounted for using equity method in the Group's consolidated financial statements.
No associates or jointly controlled companies 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, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

Total carrying amount0

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, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

The Group’s share of profit-22－

The Group's share of other comprehensive income－－

The Group's share of comprehensive income-22－

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 the equity method in the previous fiscal year, which is included in "investment loss
accounted for using equity method " in the consolidated statements of profit or loss.
(2) Investments in a jointly controlled company
The carrying amount of investments in jointly controlled companies that are not individually material is as follows:
Previous consolidated fiscal year
(As of March 31, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

Total carrying amount

240

261

Changes in the Group's share of profit and other comprehensive income of jointly controlled companies that are notindividually material are as follows:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

The Group’s share of profit-7

21

The Group's share of other comprehensive income－－

The Group's share of comprehensive income

-7

21

33

16. Income taxes(1) Deferred tax assets and liabilities
Details of significant causes of occurrence and changes in deferred tax assets and liabilities consist of the following:
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
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

April 1, 2023

Recognizedthrough profit
or loss

Recognizedthroughcomprehensive
incomeMarch 31, 2024

Millions of yen

Millions of yen

Millions of yen

Millions of yen

93

12

－

106

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

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)

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

21

15

－

36

114

27

－

142

1,287

535

－

1,822

244

－

-58

185

37

-5

－

33

9
1,577

-9
521

－
-58

0
2,040

Property, 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, 2023)

Current consolidated fiscal year
(March 31, 2024)

Millions of yen

Millions of yen

Tax losses carryforwards

6,957

6,300

Deductible temporary differences

2,689

4,645

9,646

10,944

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

－ 34 －Tax loss carryforwards for which deferred tax assets have not been recognized are scheduled to expire as follows:
Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Millions of yen

Millions of yen

First year

921

595

Second year

596

503

Third year

503

474

Fourth year

474

598

4,461

4,129

6,957

6,300

Fifth year and onwards
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 and current consolidated fiscal year were notmaterial.
The Group did not recognize deferred tax liabilities for these temporary differences because it could control thetiming of the reversal of these temporary differences, and it was probable that the temporary difference would 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, 2022 to March 31, 2023)
Millions of yen
9
437
446

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)
Millions of yen
6
501
507

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

The 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, 2022 to March 31, 2023)%
34.26

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)
%
34.26

0.63

-0.15

-36.72

−

−
11.39
60.28
401.72

-0.11
-0.51
-2.80
-54.53125.620.62

247.73-4.58
840.3320.63-0.58-44.43

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

35

17. Bonds and borrowings
Bonds and borrowings consist of the following:
Previous consolidated fiscal year
(As of March 31, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Averageinterest rate

Millions of yen

Millions of yen%

Short-term loans payables

73

Long-term loans payable due within one year
Long-term loans payable
Total

Repayment
period

－

80

0.00

15

5

1.22

－

54

22

1.40

2025 to 2027

110

106

－

－

Current liabilities

89

84

－

－

Non-current liabilities

21

22

－

－

110

106

－

－

Total

18.

Leases(1) Leases as lessee
As a lessee, the Group primarily leases land and buildings for a contractual term of 2 to 20 years. The Group has nocovenants such as restrictions on renewable options, purchase options, escalation clauses, and lease contracts.
Gains (losses) related to leases consist of the following:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Depreciation of right-of-use assets
Land and buildings

139

Tools, furniture and fixtures
Total

168

8

5

147

174

Interest expense on lease liabilities

13

16

Short-term lease expenses

45

205

Lease expenses under small assets

00Variable lease payments (note)

5

6(Note) This item is expenses related to variable lease payments that are 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, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Millions of yen

Millions of yen

Right-of-use-assets
Land and buildings
Tools, furniture and fixtures
Total

541

482

5

―

546

482

The increase in right-of-use assets for the previous and current fiscal years was ¥362 million and ¥75 million,
respectively.
The total amount of cash outflows related to leases for the previous and current consolidated fiscal year was ¥153
million and ¥174 million, respectively.
The maturity analysis of lease liabilities is presented in Note “33. Financial Instruments (2) Risk management for
financial instruments ② Liquidity risk management.”－ 36 －

(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
options, purchase options, escalation clauses, or lease contracts.
As a lessor of operating leases, the Group leases HAL, etc. The 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 and current consolidated fiscal year was ¥1,595 million and ¥1,493 million,
respectively.
The total future minimum lease payment under non-cancellable operating lease contracts consists of the following:Within one year

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

Current consolidated fiscal year
(March 31, 2024)
Millions of yen
1,189

One to two years

695

625

Two to three years

465

368

Three to four years

217

239

Four to five years

75

45

2,616

2,466

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 a financial lease.
As a lessor of finance leases, the Group leases HAL, etc. The 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 an 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 ¥43
million and ¥48 million respectively. As finance income and variable lease payments on the net investment in leases
based on finance lease contracts do not occur, the related statement is omitted.
19.

Trade and other payables
Trade and other payables consist of the following:
Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Millions of yen

Millions of yen

Accounts payable-trade

112

83

Accounts payable-other

227

243

Advance received

346

280

5

－

690

606

Current liabilities

690

606

Non-current liabilities

－

－

690

606

Other
Total

Total

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

3720. Employee benefits
The Company and certain subsidiaries adopted defined contribution pension plans covering substantially all of theiremployees’ retirement benefits. Defined contribution pension plans are exposed to general investment risk, interest raterisk, inflation risk, etc., but are judged to be immaterial.
The amount recognized as an expense for the defined contribution pension plan for the previous and current
consolidated fiscal year was ¥30 million and ¥48 million, respectively.
21. Provisions
Changes in provisions consist of the following:
Asset retirement
obligations
Millions of yen
As of April 1, 2022
Increase
Interest expense on the discount provision
Decrease (other)
As of March 31, 2023
Increase
Interest expense on the discount provision
Decrease (other)
As of March 31, 2024

96
－
－
－
96
－
－
－
96

Asset retirement obligations are provided based on or under reasonably estimated future expenditures using historicalexperience and other factors when the Group has a legal or contractual obligation to restore buildings and land to their
original condition. The timing of expenditures is affected by future business plans and other factors.
Provisions consist of the following:
Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Millions of yen

Millions of yen

Current liabilities－－

Non-current liabilities

96

96

96

96

Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Millions of yen

Millions of yen

Total

22. Other liabilities
Other liabilities consist of the following:

Other current liabilities
Accrued vacation payable3545

Accrued expenses

54

66

Accrued consumption taxes

924

Deposits received

51

54

Other tax liabilities

101

103

Other
Total

116

95

365

386

14

30

14

30

Other non-current liabilities
Other
Total

－ 38 －

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, 2022
to March 31, 2023)
SharesCurrent consolidated fiscal year
(From April 1, 2023
to March 31, 2024)
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 Common Shares and Class B shares scheme is defined by the Company's Articles ofIncorporation, and its details are set forth below.
(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 and Class B Shareholders can 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, suppose Class B Sharesare transferred to Class B Shareholders. In that case, it will be deemed that the Board of Directors approved thetransfer according to Article 136 or Article 137, Paragraph 1 of the Companies Act.
(iv) Cases where resolution of the Meeting of Class Shareholders is not required
Upon conducting acts stated in the items of Article 322, Paragraph 1 of the Companies Act, unless otherwise
indicated 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) Put option
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. One Common Share shall be delivered to such shareholders in exchange for acquiring
one Class B Share.
(vi) Compulsory conversion
a. Upon the occurrence of any event described below, all outstanding Class B Shares shall be acquired, either atthe date stated below or any date before if designated by the Board of Directors. In these cases, one Common
Share shall be delivered to such shareholders in exchange for acquiring one Class B Share.
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 in39

Chapter II-2, Section 1 of the Financial Instruments and Exchange Act. In addition, "tender offer" means
tender offer described 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. Suppose any of the following events occur to Class B Shareholders. In that case, the Company will, on the dateprescribed in Article 170, item 1, acquire Class B Shares specified in each item and deliver one share ofCommon Share to said Class B Shareholders in exchange for one share of Class B Shares.
① When the Company is requested to approve the transfer of Class B Shares from a Class B Shareholder tosomeone else, according to Article 136 or Article 137 of the Companies Act, the requested number of ClassB Shares will be exchanged for Common Shares② When a holder of the Class B Shares dies, and 90 days pass without succession or transfer to any otherholder of the Class B Shares, all Class B Shares held by such departed shareholder will be exchanged toCommon Share(vii)
Share split and share consolidation, etc.
a. When the Company splits or consolidates its Common Shares or Class B Shares, the Company shall split
or consolidate 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 simultaneously allocate shares to the shareholders of another share type at the same ratio.
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 the same numbers of shares and the sameclass of shares 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 exact timing and the same ratio.

－ 40 －

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 ten 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(from now on 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. This new
industrial field will support people by solving emerging issues associated with the aging population anddeclining birthrate. To realize this vision, the Group must promote business management and researchand development of Cybernics at the same time. Yoshiyuki Sankai is the creator of Cybernics
Technologies and is still a central figure in the research of this new field of academia. He is also abusiness leader who seeks to make this innovative technology widely available for the benefit ofsociety. For the Group to increase corporate value (i.e., the common interest of shareholders), Yoshiyuki
Sankai must be a stable leadership figure in the management of the Company in the future. This scheme
has been adopted to ensure he remains so.
To preserve the continuity of this Scheme, Yoshiyuki Sankai plans on transferring part of the Class B
Shares he holds as of this submission date to the Foundation at no cost. Furthermore, there are no plans
for the Foundations to release the Class B Shares in their possession.
As a shareholder of Class B Shares, the Foundations established guidelines on exercising their voting
rights to prevent the Group's technologies from being used to harm people or create military weapons,damaging the Group's corporate value.
The Foundations will exercise their 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. The Foundation will announce any changes to the guideline with acommunication method they choose:a. In case of resolutions for dismissal or appointment of Directors that may lead to the misuse of theGroup's advanced technology or damage the Group's corporate valueb. In case of other resolutions, which may lead to the misuse of the Group's advanced technology ordamage 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

April 1, 2022
Change during the year
March 31, 2023
Change during the year
March 31, 2024

Number of shares

AmountSharesMillions of yen
11,67104,000,002

1,188

4,000,673

1,188

2,901

0

4,014,574

1,188(Note) The increase is mainly due to acquiring treasury shares through off-auction own share repurchase trading on
the Tokyo Stock Exchange (ToSTNeT-3).
41

(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, the legal capital surplus
may 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 a legal capitalsurplus or legally retained earnings until 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 reversed byresolution of the General Meeting of Shareholders.

－ 42 －

24.

Dividends
Dividends paid are as follows:
Previous consolidated fiscal year (From April 1, 2022 to March 31, 2023)
There are no items to report.
Current consolidated fiscal year (From April 1, 2023 to March 31, 2024)
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, 2022 to March 31, 2023)
There are no items to report.
Current consolidated fiscal year (From April 1, 2023 to March 31, 2024)
There are no items to report.

43

25. Revenue(1) Decomposition of revenue
Details of the decomposition of revenue are set forth below.
Previous consolidated fiscal year
(From April 1, 2022
to March 31, 2023)
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

Current consolidated fiscal year
(From April 1, 2023
to March 31, 2024)
Millions of yen

1,666
202
1,421
3,289

2,301
273
1,779
4,354

(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, operation of smartphone applications, and sponsor revenue.
The Group recognizes rental income as income generated throughout the rental period after the customer accepts therelevant product using the following methods. The 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
this revenue based on the average amount during this contract period.
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.
The Group recognizes sponsorship revenue over time by entering into a title sponsorship agreement and providing
rights, etc., that allow the sponsor to be represented as a sponsor over the term of the agreement.
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 commodities sales 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 the right-of-use of its devices, such as HAL, it classifies the relevant
lease as a finance lease. Finance lease income is processed in the same way as cases where the Group acts as a lessorof 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 services at
Cybernic Treatment Center and Robocare Centers to end users (such as patients). It also includes revenue received
for providing outcomes of consigned development projects.
The Group determines that the performance obligation of Cybernic Treatment and training services are satisfied
at the completion point of such services. The Group determines that the performance obligation of providing
outcomes of consigned development projects is satisfied when the customer inspects and accepts the outcome.

－ 44 －

(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
482
530
663

April 1, 2022
March 31, 2023
March 31, 2024

Advances received oncontractual liabilities
Millions of yen
117
346
280

(Note) The amount of revenue recognized from the balance of advances received in the previous consolidated fiscal year andthe current consolidated fiscal year was ¥42 million and ¥161 million, respectively. In addition, the amount ofrevenue recognized from performance obligations satisfied in prior periods was not material for the previous andcurrent consolidated fiscal year.
(3) Transaction price allocated to remaining performance obligations
Recognition of revenue arising from maintenance contracts that occur incidental to sales of commodities are as
follows:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Not later than one year
More than one year, five years, or less
Total

59

29

74

27

133

55

26. Selling, general and administrative expenses
Other selling, general and administrative expenses consist of the following:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)
Millions of yen

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)
Millions of yen

Personnel expenses

791

1,219

Taxes and dues

109

65

Commission expenses

400

439

Depreciation

300

365

Advertising expenses

271

217

Other

535

949

2,406

3,251

Total

Personnel expenses included in the cost of sales, research and development, and other selling, general andadministrative expenses in the consolidated statement of profit or loss for the previous consolidated fiscal year and thecurrent consolidated fiscal year were ¥1,424 million and ¥1,735 million, respectively.
27. Other income and other expenses
Other income consists of the following:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Grants2

1Consigned research income

45

222

Foreign exchange gains

96

75

Other

69

126

212

424

Total

(note) Contract research income primarily includes government subsidies for research and development

45

Other expenses consist of the following:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Impairment losses―

660

Miscellaneous losses

7

41

Other

1

5

8

707

Total

－ 46 －

28. Financial income
Financial income consists of the following:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

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

26
1,286
1,286
1,312

25
363
155
543

29. Other comprehensive income
The 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, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

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

55

-90

-19

31

36

-59

Gains (losses) arising for the year

134

231

Reclassifications－－

Before tax

134

231

Tax effects－－

Exchange differences on translation of foreign operations

134

231

170

172

Financial assets measured at fair value through othercomprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations

Total

47

30. Earning per share(1) The basis for calculating basic earnings per share
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

298-1,476－－298-1,476

214,706,740

211,131,236

-1.39

-6.99

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

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

-298

1,476

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)

－

－

-298

-1,476

214,706,740

211,131,236－－

214,706,740

211,131,236

-1.39

-6.99

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, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

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－ 48 －

31. Cash flow information
Changes in liabilities arising from financing activities are as follows:
Previous 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

1,36

－

－

－

-197

4,793

4,204

1,195

259

33

175

-206

5,461

(Note) Includes Long-term loans payable due within one year
Current consolidated fiscal year (From April 1, 2023 to March 31, 2024)
April 1, 2023

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
Change inscope ofconsolidation

Exchange
fluctuation

March 31, 2024
New lease

Other

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

73

-0

－

7

－

-1

80

36

-10

－

－

－

－

26

559

-174

－

36

100

5

526

4,792

680

－

－

－

261

5,733

5,461

496

－

43

100

265

6,365

(Note) Includes Long-term loans payable due within one year49

32. Share-based payments(1) Outline of share-based payments
The Company adopted an equity-settled share-based payment (stock option) and shares with restrictions on transfer
as remuneration for the Company employees.
The stock option is allotted to an external consultant to boost their motivation and morale towards the Company's
corporate value growth. The stock option is issued based on the resolution at the Meeting of Shareholders andapproval by the Meeting of the Board of Directors of the Company. The allotment contract determines the exercise
period of the stock acquisition rights included in the stock option. If the stock acquisition rights are not exercised by
the holder of the stock acquisition rights during this period, stock acquisition rights will lose their effect.
Shares with restrictions on transfer as remuneration for the Company employees are allotted to the Company
employees to boost their motivation and morale towards the growth of the Company's corporate value. The Meetingof the Company's Board of Directors approved the issuance of these shares.
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

One external
consultant

August 12,
2015

July 28, 2025

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

Common Share
4,600 shares

One external
consultant

June 8, 2016

May 24, 2026

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

Common Share
10,500 shares

One external
consultant

August 8,
2017

July 25, 2027

Conditions on the determinationof rights are not attached (Note 2)(Notes)1 This stock acquisition right was determined before the 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 determining rights attached. Related expenses are processed at once
when the rights are allotted.

－ 50 －

(2) Number of stock options and weighted average exercise pricePrevious consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Beginning balance of outstanding

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

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. The exercise price of stock options that were not yet exercised for the previous consolidated fiscal year and thecurrent consolidated fiscal year were between ¥1,788 to ¥3,060 and ¥1,788 to ¥3,060, respectively.
2. The weighted average remaining contractual life of stock options not yet exercised for the previous and current
consolidated fiscal year were three 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 is measured through the Black-Scholes Model using the following assumptions
Previous consolidated fiscal year (from April 1, 2022 to March 31, 2023)
There were no items to report.
Current consolidated fiscal year (from April 1, 2023 to March 31, 2024)
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 an equity settlement. Under this scheme, the transfer of shares becomes possible when the requirements ofthe service conditions are met. In principle, the vesting period is five years.
The fair value of such shares is measured based on observable market prices.

51

33. Financial instruments(1) Capital management
The Group is a company centered on research and development of innovative devices. It promotes clinical researchand verification and endeavors to obtain approvals from various regulators to introduce the Group's product andservices into the market, which will realize sustainable growth. In line with these challenges, the Group manages its
financial instruments to maximize its corporate value.
The Group treats the portion of equity attributable to owners of the parent company as equity capital.
There are no capital restrictions that affect the Group.
(2) Risk management for financial instruments
In its operation, the Group is exposed to various financial risks, such as credit, liquidity, and exchange rate risks. The
Group selects financial instruments with low risk to mitigate these financial risks. For financing, the Group either
borrows from the bank or issue bonds.
On derivative transactions, the Group has a policy not to conduct any speculative transactions.
① Credit risk management
Credit risk is when a counterparty (the party to whom the Group holds its financial assets) cannot fulfill its
contractual obligations, resulting in a financial loss for the Group.
a. Trade and other receivables
Accounts receivable-trade exposes the Group to customer credit risk. The Group manages that risk with aninternal audit process for investigating and approving customer credit on initial transactions. Furthermore,according to Customer Credit Management protocol, the Group manages customers' due dates andoutstanding balances 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 the 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 customer requiring 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 considering recoverability and significant increases in credit
risk. The Group determines if credit risk has increased significantly by evaluating changes in default risk
concerning factors, including the decline of counterparty results and delinquency information.
Accounts receivable-trade are significant 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 Group measures
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 investigation and approval process.
The Group is not exposed to excessive credit risk associated with a customer requiring exceptional
management. Furthermore, the customers of the Group are highly creditworthy, and the credit risk is limited. As
the customer of the Group is highly creditworthy, there are very few delinquents in accounts receivables, and theimpact towards impairments in accounts receivable-trade and allowance for doubtful accounts are insignificant.
－ 52 －

The Group always sets allowances for doubtful accounts for trade receivables without a significant financial
component. This amount is equal to the expected credit loss for the entire period.
The carrying amounts for trade receivable for the previous and current consolidated fiscal years were ¥544
million and ¥697 million, respectively.
Changes in the related allowance for doubtful accounts are as follows:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Beginning balance

3

4

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

4

23

－

－

Decrease during the year due to reversal-3-4

Other changes－－

Ending balance

423② Liquidity risk management
Liquidity risk is the risk that an entity cannot pay by its due date when performing its repayment obligations forfinancial liabilities that become due.
The Corporate Unit of the Group renews the funding plans where necessary and maintains the level of liquidity
above a certain level to manage liquidity risk.
The Group prepares appropriate funds for repayment, secures credit lines from the financial institute where
necessary, and constantly monitors the plans of cash flows and its performance to manage liquidity risk.
Financial liabilities by maturity date consist of the following:
Fiscal year ended March 31, 2023
Carrying amountContract amountNot later than one year

Later than one 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

6,152

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
Fiscal year ended March 31, 2024
Carrying amountContract amountNot later than one year

Later than one year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Non-derivative financial liabilities
606

606

Bonds and borrowings

106

106

84

22

Lease liabilities

526

526

160

366

5,733

(note) 4,792

－

5,733

6,970

6,970

850

6,120

Third-party interests in CEJ Fund
Total

606

－

Trade and other payables(Note) This amount is the amount of equity vested to third-party investors if the fund was liquidated on March 31, 2024

53

The total amounts of commitment lines and their usage are as follows:
Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

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 the exchange rate is insignificant, related information is omitted.
Furthermore, the 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)
Cash and cash equivalents, trade and other receivables, other financial assets (current), and trade and otherpayables are stated at their carrying amounts because their fair values approximate their carrying amounts due totheir short maturities.
(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.
The fair value of leasehold and guarantee deposits is measured by the present value obtained throughdiscounting yield to maturity of long-term bonds with high security by the planned redemption schedule.
(Third-party interests in CEJ Fund)The carrying amount of the third-party interests in CEJ Fund is the equity interest attributable to third-party
investors, assuming 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.

－ 54 －

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, 2023)

Current consolidated fiscal year
(March 31, 2024)

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

87

91

89

92

87

91

89

92

(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

55

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, 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

Current consolidated fiscal year (March 31, 2024)
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

13,553

134－

13,41913,553

1,154

174

－

980

1,154

14,707308－

14,40014,707

Transfers between levels of the fair value hierarchy shall be recognized at the event date or change in circumstancesthat caused the transfer. The reclassification from Level 3 to Level 1 was made in the previous consolidated fiscal year
as a company in which CYBEDYNE invested was listed on the stock market. No other reclassifications were made.
④ Assessment procedures
The assessment of financial instruments classified as Level 3 is done by the person responsible for the Corporate
Department. A responsible person conducts assessments and analyses based on the Group's accounting policies andprocedures, which are approved by the head of the Corporate Department. The Head of the Corporate Department
reviews and approves the assessment results.

－ 56 －

⑤ Quantitative information concerning financial instruments classified as Level 3
The fair value of financial assets classified as Level 3 is measured by the person responsible for the Corporate
Department each quarter using recently available data according to the Group accounting policy. Any changes in fairvalue and reasons are reported to the department manager and the CEO as necessary. Upon fair value measurement,
inputs are reasonably estimated, and the most suitable valuation model is selected based on the nature of the asset. The
determination of the suitable valuation model will be verified using the most appropriate internal approval process toensure its validity.
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, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Beginning balance

9,245

12,986

1,286

1,378

5

47

Total gains and losses
Profit or loss (Note 1)
Other comprehensive income (Note 2)
Purchases

3,309

455

Sales

-614

-465

Reclassification to level 1 (Note 3)

-245

―

12,986

14,400998

1,157

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

57

34. CEJ Fund
Gains (losses) related to CEJ Fund consist of the following:
Previous consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

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

199

1,487

Administrative expenses

-122

-106

Subtotal

77

1,376

Amount reclassified to third-party equity

197

-581

Total

274

796

Changes in Third-party interests in CEJ Fund are as follows:
Third-party interests
Millions of yen
April 1, 2022
Contributions into CEJ Fund from third-party
investors
Change in third-party interests in CEJ Fund

3,629

March 31, 2023

4,792

1,360
-197

Contributions into CEJ Fund from third-party
investors

680

Change in third-party interests in CEJ FundDistributions and redemptions to external
investors

581
-320

March 31, 2024

5,733

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,
associates, 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, 2022 to March 31, 2023)

Current consolidated fiscal year
(From April 1, 2023 to March 31, 2024)

Millions of yen

Millions of yen

Basic remuneration:
Member of the Board of Directors (excluding outside
members of the 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－ - 58 - －

44

42

9

8

53

50

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

Q1

Q1-Q2

Q1-Q3

Q1-Q4

Revenue (Millions of yen)

1,035

2,104

3,219

4,354

Profit (loss) before tax (Millions of yen)

767

-180

-566

-1,141

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

330

-603

-951

-1,476

Profit (loss) per share (Yen)

1.56

-2.85

-4.51

-6.99

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

Q1

Q2
1.56

- 59 -

Q3
-4.42

Q4
-1.65

-2.49

２【Financial statement etc.】(１)【Financial statement】①【Non-consolidated balance Sheet】(Unit: Millions of yen)Previous fiscal year
(March 31, 2023)
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－ - 60 - －Current fiscal year
(March 31, 2024)

6,419

3,465

*２ 387*２ 417

9,500
224
20
738
*２ 54
*２ 140-4
17,478

11,500
254
27
663
*２ 81
*２ 112-73
16,446*１ 2,624*１ 2,48865*１ 1
4*１ 217426*１ 9,872
460
13,67059*１ 1

2*１ 216357*１ 9,872

467
13,462

0

―

*１ 16

*１ 10

5
21

5
15

53
4,298
3,167

53
3,762
2,477

1,947

2,149

47

39

*２ 939*２ 1,522-91
10,362
24,053
41,531-211
9,793
23,27039,717

(Unit: Millions of yen)Previous fiscal year
(March 31, 2023)
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-otherAccrued 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- 61 -

Current fiscal year
(March 31, 2024)26

35*２ 421*２ 2341480
5*２ 347893

1974
5*２ 324
691

106
83
14
203
1,096

38
84
30
152
842

10

10

26,714
16,413
43,12826,714
16,413
43,12800-1,728-1,728-1,18840,222-3,159-3,159-1,18838,790

195

65

195
19
40,43541,53165
19
38,87439,717

②【Non-consolidated statement of profit or loss】（Unit: Millions of yen）
Previous fiscal year
(From April 1, 2022
to March 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Profit distribution
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
Provision for doubtful accounts of subsidiaries andaffiliates
Total extraordinary loss
Profit (loss) before provision of income tax
Income taxes – current
Income taxes – deferred
Total income taxes
Net profit (loss)－ - 62 - －Current fiscal year
(From April 1, 2023
to March 31, 2024)*２ 1,715*２ 1,835*２ 465*２ 5381,250*１,*２ 2,076
-826

1,297
*１,*２ 2,351-1,055

*２ 31

*２ 62

―

9
45
*２ 166*２ 108
359

141
33
222
*２ 106*２ 317
880

72
6
79
-545

93
2
95
-269

371
371

107
107

165

393

252

751

―

120

416
-591
5
-1
4
-595

1,265
-1,4215-1
4-1,431

【Statement of production cost】
Previous fiscal year
(From April 1, 2022
to March 31, 2023)
Classification

Note

Amount (Millions of yen)

Current fiscal year
(From April 1, 2023
to March 31, 2024)
Ratio
(％)

Amount (Millions of yen)

Ratio
(％)

Ⅰ Material cost

250

68.6

251

67.0

Ⅱ Labor cost

66

18.2

73

19.5

48

13.2

51

13.5

364

100.0

374

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

29

23

393

398

23

31

254

233

115

135

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 Details of the cost are stated below
Item

Previous fiscal year
(Millions of yen)

Current fiscal year
(Millions of yen)Communication expenses

11

12

Depreciation and amortization

8

7

Storage fee

66Travel expenses

45Consumable expenses

3

3*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

137

115

Other

117

118

254

233

Total

- 63 -

③ 【Non-consolidated statements of changes in shareholders’ equity】
Previous 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

-1,18810

26,714

16,413

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

StockacquisitionrightsTotal net assets

Share capital

April 1, 2022

Total retained
earnings

Treasury stock

Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthan shareholders equity(net)
Total changes during the
fiscal year
March 31, 2023

Shareholders’equityTotal
shareholders’equityApril 1, 2022

42,61157

57

19

42,080

-595

－

－

－

-595

-1,188－－－-1,188

－

138

138

－

138

-1,783

138

138

－

-1,64540,222

195

195

19

40,435

Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthan shareholders equity(net)
Total changes during the
fiscal year
March 31, 2023

－ - 64 - －The current fiscal year (From April 1, 2023 to March 31, 2024）(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

43,1280-1,728-1,728-1,188

－

－

－

－

－

-1,431-1,431

－

－

－

－

－

－

－

－

-0

－

－

－

－

－

－

－

－

－

－

－

－

－

-1,431-1,431-0

1026,714

16,413

43,1280-3,159-3,159-1,188Valuation and translation
adjustments
Valuation
Total
difference on valuation andavailable-fortranslation
sale securities
adjustments

StockacquisitionrightsTotal net assets

Share capital

April 1, 2023

Total retained
earnings

Treasury stock

Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthan shareholders equity(net)
Total changes during the
fiscal year
March 31, 2024

Shareholders’equityTotal
shareholders’equityApril 1, 2023

40,222

195

195

19

40,435-1,431－－－-1,431

-0

－

－

－

-0

－

-130

-130

－

-130

-1,431

-130

-130

－

-1,56138,79065

65

1938,874

Changes during the period
Net profit (loss)
Acquisition of treasury
stock
Changes in items otherthan shareholders equity(net)
Total changes during the
fiscal year
March 31, 2024

- 65 -

【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."－ - 66 - －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 of
the announcement 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 the 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
13,67013,46221

15(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 negative, the Group has identified signs of impairment in assets listed in (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 total
undiscounted future cash flow estimates.
(Change in accounting policy)
There is no applicable item.

- 67 -

(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, 2023)
Buildings
Machinery & equipment
Tools, furniture & fixtures
Land
Software¥631 Million¥145 Million¥211 Million¥96 Million¥6 Million

Current fiscal year
(March 31, 2024)¥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, 2023)
Short-term money claims
Long-term money claims
Short-term money liabilities¥183 Million¥858 Million¥241 Million

Current fiscal year
(March 31, 2024)¥208 Million¥1,443 Million¥30 Million*3 The Company has entered an overdraft agreement with a correspondent bank to raise working capital efficiently.
Unused lines of credit related to overdraft agreements are as follows.
Previous fiscal year
(March 31, 2023)
Maximum limit of total line of credit
Balance of used line of credit
Short-term money liabilities¥800 Million－¥800 Million－ - 68 - －Current fiscal year
(March 31, 2024)¥800 Million－¥800 Million

（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, 2022
To March 31, 2023)
Salaries
Depreciation and amortization
Research and development expenses
Taxes and dues
Approximate Percentage
selling expenses
general management expenses

Current fiscal year
(From April 1, 2023
To March 31, 2024)¥295 Million¥128 Million¥692 Million¥113 Million¥316 Million¥122 Million¥801 Million¥130 Million

23.2%
76.8%

21.1%
78.9%

*2 Transactions with subsidiaries and affiliates
Previous fiscal year
(From April 1, 2022
To March31, 20233)
Transaction volume from business transactions
Net sales
Other business transaction
Non-operating transactions¥60 Million¥120 Million¥173 Million

Current fiscal year
(From April1, 20233
To Marc31, 202424)¥54 Million¥180 Million¥287 Million(Notes to Marketable Securities)
Previous 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 because they do not have market prices, and it is difficult todetermine their fair value.
The current fiscal year (March 31, 2024)
Shares in affiliated companies and investments in affiliated companies (balance sheet amount: shares in affiliates ¥2,477
million and investments in affiliates ¥2,149 million) are not stated as it does not have a market price.

69

(Tax effect accounting)
１ Main component of deferred tax assets and deferred tax liabilities related to tax effect accounting(Unit: Millions of Yen)
Previous fiscal year
(Ended March 31, 2023)

Current fiscal year
(Ended March 31, 2024)

2,114
71
38

1,827
92
42

4

3

1
219
28
56

0
235
29
172

112

368

31
1
43
2,717
-2,114

96
1
42
2,906
-1,827-603-1,079-2,717－-2,906－

5

4

Deferred tax assets
Tax loss carryforwards
Research and development expenses
Loss on revaluation of inventories
Lump-sum depreciable assets deduction limits 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

101

34

Total deferred tax liabilities

106

38

Deferred tax liabilities, net

106

38

2 Reconciliation between the statutory tax rate and the effective income tax rate after the application of tax effect accounting
The previous fiscal year (March 31, 2023)
Information is omitted because a loss before income taxes was recorded
The current fiscal year (March 31, 2024)
Information is omitted because a loss before income taxes was recorded－ 70 －

(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 using the following methods. The pay-per-use model is based on times of product usage each month, and thebase 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 based on the average amount during this contract 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 Company mainly determines the performance obligation of commodities sales 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 the right-of-use of its devices, such as HAL, it classifies the relevant leaseas a finance 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 and training services when the provision ofsuch 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.

71

(Significant subsequent events)
Not applicable.

－ 72 －

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 theperiod(Millions of yen)
(Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen)fiscal year
(Millions of yen)
(Millions of yen)

Property, plant and equipment
Buildings, net

3,905

1

－

3,907

1,418

137

2,488

Structures, net

119

－

－

119

59

5

59

Machinery & equipment, net

230

－

－

230

229

0

1

Vehicles & delivery
equipment, net

37

－

－

37

35

2

2

Tools, furniture & fixtures,
net

1,504

120

1

1,622

1,406

105

216

Rental assets, net

1,366

109

39

1,436

1,079

162

357

Land

9,872

－

－

9,872

－

－

9,872

Construction in progress

460

9

3

467

－

－

467

Total property, plant and equipment

17,493239

43

17,6894,227

411

13,462

Patents

4

－

－

4

4

0

－

Software

90

－

47

43

32

6

10

Other

6

0

－

7

2

0

5

100

0

47

53

38

6

15

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

199

10

284

73

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

－ 74 －