Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(Based on Japanese GAAP)
April 28, 2023
Socionext Inc.
Stock exchange listing: Tokyo
6526
URL: https://www.socionext.com/en/
Masahiro Koezuka, Representative Director, Chairman, President and CEO
Hiromasa Nakajima, General Manager, Public Relations & Investor Relations
Contact person:
Tel: +81-45-568-1000
OfficeScheduled date to commence dividend payments:
June 07, 2023
Scheduled date of ordinary general shareholders’ meeting:June 28, 2023
Scheduled filing date of Securities Report:
June 29, 2023
Supplementary materials:
Yes
Financial results presentation:
Yes (for institutional investors and analysts)
Company name:
Code number:
Representative:(Monetary amounts are rounded to the nearest millions of yen)
1. Consolidated financial results for the fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Consolidated financial results(Percentage represents change from the same period of the previous fiscal year)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

millions of yen
192,767
117,009

Operating income
%
64.7
17.3

millions of yen
21,711
8,463

Profit attributable to owners ofparentOrdinary income
%
156.5
445.3

millions of yen
23,440
9,050

%
159.0
359.6

millions of yen
19,763
7,480

%
164.2
409.2

Return on equity

Ordinary incomeon assets

Operating Margin

%
19.8
8.7

%
15.0
8.1

%
11.3
7.2

Note: Comprehensive income:For the fiscal year ended March 31, 2023: 20,255 million yen (151.9%)
For the fiscal year ended March 31, 2022: 8,040 million yen (336.2%)

Basic earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Diluted earnings per share

Yen
587.02222.18Yen
557.46-

Reference: Share of gain(losses) of associates accounted for using equity method:
For the fiscal year ended March 31, 2023: -million yen
For the fiscal year ended March 31, 2022: -million yen

Notes:
1. The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on September
5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of Type A shares andType B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for Type A shares per
share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all the shares ofType A shares and Type B shares. Basic earnings per share and diluted earnings per share are computed based on the assumptionthat the share consolidation and other events above were conducted at the beginning of the fiscal year ended March 31, 2022.
2. Diluted earnings per share for the fiscal year ended March 31, 2022 is not presented because the Company’s shares were unlisted
and therefore an average quoted stock price is not available although there are dilutive shares.
3. As the Company was listed on the Tokyo Stock Exchange Prime Market on October 12, 2022, diluted earnings per share for the
fiscal year ended March 31, 2023 is computed by deeming the average stock price during the period from the listing date toMarch 31, 2023 as the average stock price during the fiscal year.

(2) Consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022

Net assets

millions of yen
193,945
118,428

Shareholders’ equity ratio

millions of yen
109,864
89,609Net assets per share

%
56.6
75.7

Yen
3,262.93
2,661.30

Reference: Shareholder’s equity: As of March 31, 2023: 109,852 million yen As of March 31, 2022: 89,597million yen

Note: The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on
September 5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of TypeA shares and Type B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for TypeA shares per share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all theshares of Type A shares and Type B shares. Net assets per share is computed based on the assumption that the shareconsolidation and other events above were conducted at the beginning of the fiscal year ended March 31, 2022.
(3) Consolidated cash flows
Net cash provided byoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Net cash used ininvesting activities

millions of yen
18,01916,355

Net cash used infinancing activities

millions of yen

millions of yen(19,725)(7,938)

(333)
(458)

Cash and cash equivalents
at the end of the fiscal year
millions of yen
45,136
46,271

2. Dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Total dividends

Total

Fiscal year ended
March 31, 2022
March 31, 2023

yen
-

yen
0.00

yen
-

yen
210.00yen
210.00Fiscal year ending
March 31, 2024
(Forecast)-105.00-105.00210.00

Dividends on
net assets(Consolidated)
%
%
35.8
7.1

Payout ratio(Consolidated)

millions of yen
7,070

40.4

Note: Revision of the latest dividends forecast: Yes
3. Consolidated earnings forecast for the fiscal year ending March 31, 2024 (From April 1, 2023 to March 31, 2024)(Percentage represents change from the same period of the previous fiscal year)
Net sales
Fiscal year ending
March 31, 2024

millions of yen

Operating income% millions of yen
3.8
22,500

Profit attributable toowners of parent

Ordinary income% millions of yen
3.6
22,500% millions of yen
17,500%(4.0)(11.5)(1) Changes in significant subsidiaries during the current reporting period(Changes in specified subsidiaries resulting from changes in the scope of consolidation):No200,000

Basic earnings per shareyen
519.80※ Notes(2) Changes in accounting policies, accounting estimates and retrospective restatements for consolidated financial statements
Yes① Changes in accounting policies due to revisions of the accounting standards and other regulations:No② Changes arising from factors other than ①:No③ Changes in accounting estimates:
No④ Retrospective restatements:(3) Number of issued shares (Common stock)① Number of shares issued at the end of theperiod (including treasury stock)

Fiscal year ended② Number of treasury stock held at the end of
the period

Fiscal year ended③ Average number of shares during the period

March 31, 2023

March 31, 2023
Fiscal year ended
March 31, 2023

33,666,666-

33,666,666

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2022

33,666,666-

33,666,666

Note: The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on
September 5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of TypeA shares and Type B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for TypeA shares per share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all theshares of Type A shares and Type B shares. The “Number of shares issued at the end of the period” and “Average number ofshares during the period” are computed based on the assumption that the share consolidation was conducted at the beginning of
the fiscal year ended March 31, 2022.
(Reference) Non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Non-consolidated financial results(Percentage represents change from the same period of the previous fiscal year)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

millions of yen
191,830
116,096

Operating income
%
65.2
17.1

Basic earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

millions of yen
18,986
6,744

Ordinary income
%
181.5
876.0

millions of yen
21,393
7,775

Profit
%
175.2
304.7

millions of yen
18,078
6,489

%
178.6
306.3

Diluted earnings per shareyen
536.99192.77yen
509.95-

Notes:
1． The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on September
5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of Type A shares andType B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for Type A shares per
share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all the shares ofType A shares and Type B shares. Basic earnings per share and diluted earnings are computed based on the assumption that theshare consolidation and other events above were conducted at the beginning of the fiscal year ended March 31, 2022.
2． Diluted earnings per share for the fiscal year ended March 31, 2022 is not presented because the Company’s shares were unlisted
and therefore an average quoted stock price is not available although there are dilutive shares.
3． As the Company was listed on the Tokyo Stock Exchange Prime Market on October 12, 2022, diluted earnings per share for the
fiscal year ended March 31, 2023 is computed by deeming the average stock price during the period from the listing date toMarch 31, 2023 as the average stock price during the fiscal year.
(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022

millions of yen
184,664
112,223

Net assets

Shareholders’ equity ratio

millions of yen
103,351
85,272

%
56.0
76.0

Net assets per shareyen
3,069.48
2,532.49

Reference: Shareholder’s equity: As of March 31, 2023: 103,339 million yen As of March 31, 2022: 85,260 million yen

Note: The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on
September 5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of TypeA shares and Type B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for TypeA shares per share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all
the shares of Type A shares and Type B shares. Net assets per share is computed based on the assumption that the shareconsolidation was conducted at the beginning of the fiscal year ended March 31, 2022.
※ These fiscal consolidated financial results are not subject to the audit procedure of external audit.
※ Explanation of the proper use of earnings forecast and other special notes
These materials may contain forward-looking statements that are based on management’s current information, actual results may
differ materially from these forward-looking statements for various reasons. For information regarding the assumptions used toprepare the forecast and cautionary note of the forecast, please refer to “1. Overview of operating results (4) Outlook” on page 4 formore details.

Attachment contents
1.Overview of operating results…………………………………………………………………………………………………

2(1) Overview of operating results for the fiscal year ended March 31, 2023…………………………………………………
(2) Overview of financial position for the fiscal year ended March 31, 2023………………………………………………

2
3(3) Overview of cash flows for the fiscal year ended March 31, 2023 ………………………………………………………
(4) Outlook……………………………………………………………………………………………………………………

3
4

2.Basic policy regarding selection of accounting standards……………………………………………………………………
3.Consolidated financial statements and principal notes ………………………………………………………………………

4
5(1) Consolidated balance sheets ……………………………………………………………………………………………
(2) Consolidated statements of income and comprehensive income ………………………………………………………

5
6

Consolidated statements of income …………………………………………………………………………………
Consolidated statements of comprehensive income …………………………………………………………………

67(3) Consolidated statements of changes in net assets…………………………………………………………………………
(4) Consolidated statements of cash flows……………………………………………………………………………………

810(5) Notes to consolidated financial statements ………………………………………………………………………………
Assumptions of a going concern ………………………………………………………………………………………

11
11

Changes in accounting policies…………………………………………………………………………………………
Additional information …………………………………………………………………………………………………

11
11

Segment information ……………………………………………………………………………………………………
Per share information……………………………………………………………………………………………………

11
12

Significant subsequent events …………………………………………………………………………………………

13

- 1 -

1. Overview of operating results(1) Overview of operating results for the fiscal year ended March 31, 2023
During the fiscal year ended March 31, 2023, the global economy has shown a recovery from COVID-19 in terms of both supply anddemand, with a gentle upward trend. However, the economic recovery slowed down in the latter half of the year due to high inflation
rates and monetary policy tightening. Regarding exchange rates, Japanese yen has been appreciating from November 2022 onward,
however depreciated comparing to the previous fiscal year. Additionally, the prolongation of the conflict in Ukraine, US-China trade
frictions, and new COVID-19 variants have further increased uncertainties regarding future economic developments.
Under such circumstances, the growth of global semiconductor market slowed down significantly in 2022 compared to the previous
year, due to the weakening demand for products such as smartphones, PCs, and consumer electronics. On the other hand,manufacturing capacity constraints of manufacturers (foundries as well as OSAT) that led to limitations in semiconductor supply havebeen easing from the latter half of the year.
The Group (“the Group”, “the Company”, “we” and “our” refer to Socionext Inc., and its consolidated subsidiaries) has been acquiring
more design wins in our focus areas including automotive, data centers & networking, and smart devices. This is due to transformationof our business model, shift of focus areas to high-growth and cutting-edge business areas where more global large-scale business is
expected, as well as structure reform including bold transformation in business structure, all implemented by current CEO since his
appointment in April 2018. We have acquired design wins amounting to roughly 200 billion yen during each of the fiscal years ended
March 31, 2020, 2021 and 2022, an increase from the design win amount of roughly 100 billion yen for the fiscal year ended March
31, 2019 through the transformation. Furthermore, for the current fiscal year ended March 31, 2023, we have achieved design wins
amounting to 250 billion yen.
To improve design and development efficiency, we also implemented transformation to rebuild optimized R&D structure
corresponding to our distinctive “Solution SoC” business model. We established a global R&D leading team with engineers having a
deep understanding of advanced technologies including SoC system architecture, IP and design methodologies, to develop strong
relationships with partners in global semiconductor industry ecosystem, and to strengthen our R&D competitive position. In addition,
we established a three-tiered organizational structure, including project management division to manage R&D projects based on
defined SoC specifications, and teams responsible for specific development tasks. Through the R&D structure, we are able tostrengthen the relationship with customers at the early stage of the projects and meet customer needs on SoC development.
Our research and development costs consist of both upfront investments in advanced technologies for acquiring design wins in our
focus areas and investments in product development linked to acquired design wins. For the current fiscal year ended March 31, 2023,
our research and development costs increased by 14.2% to 49,324 million yen, mainly due to increasing acquired design wins.
Because the ecosystem continues to grow in complexity and flexibly, and to utilize the latest advanced technologies, we regularly
work with multiple partners and actively invest in advanced technologies including 3nm and finer process nodes, advanced packaging
technologies such as chiplet, application of latest EDA tools as well as platformization. For investments in product development, we
completed tape out of 5nm generation products in ADAS area in the first quarter of current fiscal year ended March 31, 2023. We also
started mass production for 7nm products in data center & networking area in the current fiscal year. Furthermore, 7nm products in
automotive area will enter the mass production stage in next fiscal year ending March 31, 2024.
Our net sales consist of NRE revenue received from customers based on costs incurred in scheduled milestones during the design anddevelopment process, and product revenue from the applicable products which entered the mass production stage. Under thecircumstances of technology advancements in semiconductor industry, NRE revenue was 34,867 million yen in the current year ended
March 31, 2023, an increase of 24.0% from the year ended March 31, 2022. Besides, product revenue increased significantly by
85.3% from the previous fiscal year ended March 31, 2022., to 156,751million yen. This is due to the large-scale design wins acquired
from 2019 has sequentially entered the mass production stage and production volume increased especially in cutting-edge processes,
as well as manufacturing capacity constraints has been eased. In addition, considering an increase in revenue from overseas customers(approximately 55.6% are from outside of Japan), we have established a new branch in Taiwan for global supply chain management.
This has contributed to cost reduction through timely product supply and shortened lead times.
As a result of the above-mentioned factors including increased product revenue as well as the depreciation of Japanese yen, theconsolidated net sales for the year ended March 31, 2023 were 192,767 million yen, an increase of 64.7% compared to the previous
fiscal year, cost of sales was 103,922 million yen, selling, general and administrative expenses were 67,134 million yen, leading to a156.5% increase in operating income to 21,711 million yen compared to the previous fiscal year. Ordinary income was 23,440 million- 2 -yen included foreign exchange gain, increased by 159.0% from the previous fiscal year. Profit attributable to owners of parent was
19,763 million yen, increased by 164.2% from the previous fiscal year. The depreciation of Japanese yen has led to increases of 25.6
billion yen in net sales, 9.8 billion yen in operating income, and 10.6 billion yen in ordinary income, compared to the previous fiscal
year.
The Group has a single segment of Solution SoC business.
(2) Overview of financial position for the fiscal year ended March 31, 2023
(Assets)
Current assets as of March 31, 2023 increased by 65,451 million yen from the end of the previous fiscal year ended March 31,2022 to
156, 067 million yen. This is due mainly to the increases in customer-requested wafer inventories against wafer shortage as well as
accounts receivable-other related to those securing activities. In addition, there are increases in accounts receivable as well as
inventories in accordance with the increased product revenue. Non-current assets as of March 31, 2023 increased by 10,066 million
yen from the end of the previous fiscal year to 37,878 million yen. The increase is due mainly to the acquisition of reticles, IP, etc. inconnection with products development of acquired design wins, and the expansion of data centers in accordance with increasing
development scale. As a result, total assets as of March 31, 2023 increased by 75,517 million yen from the end of the previous fiscal
year to 193,945 million yen.
(Liabilities)
Current liabilities as of March 31, 2023 increased by 54,897 million yen from the end of the previous fiscal year to 82,338 million yen.
This is due mainly to the increases in accounts payable, liabilities related to chargeable subcontracting as well as
accounts payable-other resulted from increased purchases from manufacturers in accordance with increasing product revenue, andupfront procurement on customer-requested wafer inventories.
As a result, total liabilities as of March 31, 2023 increased by 55,262 million yen from the end of the previous fiscal year to 84,081
million yen.
(Net assets)
Net assets as of March 31, 2023 increased by 20,255 million yen from the end of the previous fiscal year to 109,864 million yen. The
primary increase was 19,763 million yen in profit attributable to owners of parent for the year ended March 31, 2023.
As a result, the shareholders’ equity ratio has been 56.6%. The ratio dropped temporarily due to upfront procurement on customersrequested wafer inventories.
(3) Overview of cash flows for the fiscal year ended March 31, 2023
Cash and cash equivalents as of March 31, 2023 decreased by 1,135 million yen from the end of the previous fiscal year ended March
31,2022 to 45,136 million yen.
Net cash provided by operating activities was 18,019 million yen for the fiscal year ended March 31, 2023. This is due mainly to anincrease in accounts receivable of 15,162 million yen resulting from product sales increase, towards profit before income taxes of
23,440 million yen. The increase in inventories is due mainly to upfront procurement on customer-requested inventories, meanwhilecustomers afford such costs. As a result, the transactions above are included in both “Decrease (increase) in other assets” and“Increase (decrease) in other liabilities” of consolidated statements of cash flows, which had almost no impact on our overall cash
flows.
Net cash used in investing activities was 19,725 million yen for the year ended March 31, 2023. This is due mainly to purchases ofproperty, plant and equipment of 12,629 million yen including reticles and test boards for products development related to acquired
design wins, as well as those for improving design and development environment, and the purchases of intangible assets of 7,144
million yen including IP.
Net cash used in financing activities was 333 million yen and this is due to repayments of lease obligations.
Besides, in respond to increasing needs on working capital related to increasing product revenue, as well as to address global
economic slowdown and geopolitical risks, the Company entered another commitment line agreement of 10 billion yen on December
27, 2022 besides existing commitment line agreement of 10 billion yen. As a result, the maximum amount for the commitment lines
has been 20 billion yen. As of March 31, 2023, the commitment lines of total 20 billion yen were unused.

- 3 -(4) Outlook
The Company have acquired more designs wins in focus areas including automotive, data centers & networking, as well as smart
devices as a result of business model transformation and shift to growth areas since 2018. As design wins sequentially entering mass
production stage from development, we expect consolidated net sales for the next fiscal year ending March 31, 2024 to be 200,000
million yen, an increase of 3.8% compared to the current fiscal year ended March 31, 2023. Consolidated operating income isexpected to be 22,500 million yen, with an increase of 3.6% from the current fiscal year. Profit attributable to owners of parent is
expected to be 17,500 million yen, a decrease of 11.5% resulting from foreign exchange gain decrease in non-operating income.
Besides, our outlook is based on foreign exchange assumption of 115 yen per U.S. dollar and 125 yen per Euro.
The forecast above may contain forward-looking statements that are based on management’s current information, actual results may
differ materially for various reasons including actual operating conditions and exchange rates fluctuation.

2. Basic policy regarding selection of accounting standards
The Group will prepare consolidated financial documents in accordance with Japanese GAAP, with consideration for comparability
across multiple reporting periods and multiple entities.
We will work on the adoption of International Financial Reporting Standards (IFRS), taking various domestic and internationalsituation into consideration.

- 4 -3. Consolidated financial statements and principal notes(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash on hand and in banks
Accounts receivable-trade, net
Finished goods
Work in process
Accounts receivable-other
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment, net
Intangible assets
Technology assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-otherAccrued expenses
Income taxes payable
Liabilities related to chargeable subcontracting
Other current liabilities
Total current liabilities
Long-term liabilities
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustments
Total accumulated other comprehensive income
Share subscription rights
Total net assets
Total liabilities and net assets- 5 -As of March 31, 2023

46,271
25,053
1,488
14,921914
1,969
90,61645,13640,8098,187
39,528
16,2096,198
156,067

2,371
11
8,159
800
287
11,6282,583
813,438800
351
17,18011,172
1,076
12,248

11,494
1,468
12,962

0
3,098
838
3,936
27,812
118,428

0
6,897
839
7,736
37,878
193,945

16,609
2,054
4,865
2,609
1,304
27,441

23,421
24,551
5,755
6,942
18,8692,800
82,338

316
1,062
1,378
28,819

343
1,400
1,743
84,08130,20030,20028,86789,26730,20030,20048,630109,030330
330
1289,609118,428822
822
12
109,864
193,945

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31,2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Foreign exchange gain
Other income
Total non-operating income
Non-operating expenses
Other expenses
Total non-operating expenses
Ordinary income
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 6 -Fiscal year ended
March 31,2023

117,00949,751
67,25858,795
8,463

192,767
103,92288,845
67,134
21,711

589
14
603

1,601
165
1,766

16
16
9,050
9,050
2,347
(777)
1,570
7,480
0
7,480

37
37
23,44023,4407,382(3,705)
3,677
19,763
19,763

Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31,2022
ProfitOther comprehensive income
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of parent
Non-controlling interests- 7 -Fiscal year ended
March 31,2023
7,480

19,763

560
560
8,040

492
492
20,2558,037
320,255-

(3) Consolidated statements of changes in net assets
For the fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Commonstock
Balance as of April 1, 2021

Capitalsurplus30,200Retainedearnings

30,200Total
shareholders’ equity
21,387

81,787

7,480

7,480

Changes during the year
Profit attributable to ownersof parent
Net changes in items otherthan those in shareholders’equity-Total changes during the year

-

-

7,480

7,480

Balance as of March 31, 2022

30,20030,20028,86789,267

Accumulated other comprehensive income

Balance as of April 1, 2021

Foreign currencytranslation
adjustments

Total accumulated
other comprehensive
income

(227)

(227)

Share subscription
rightsNon-controllinginterests

12

Total
net assets

104

81,676

Changes during the year
Profit attributable to ownersof parent

7,480

Net changes in items otherthan those in shareholders’equity557

557

Total changes during the year

557

557

Balance as of March 31, 2022

330

330

- 8 -

(104)

453

-

(104)

7,933

12

-

89,609

For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Commonstock
Balance as of April 1, 2022

Capitalsurplus30,200Retainedearnings

30,200Total
shareholders’ equity

Treasury stock

28,867-89,267

Changes during the year
Issuance of new shares-

Profit attributable to ownersof parent

19,763

19,763Acquisition of treasury
stock
Cancellation of treasury
stock

(0)

Transfer from retained
earnings to capital surplus

0

(0)

(0)

0

-

(0)

-

Net changes in items otherthan those in shareholders’equity-Total changes during the year--

19,763-

19,763

Balance as of March 31, 2023

30,20030,20048,630-109,030

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustments
incomeBalance as of April 1, 2022

330

330

Share subscription
rightsTotal
net assets

12

89,609Changes during the year
Issuance of new shares-

Profit attributable to ownersof parent

19,763Acquisition of treasury
stock

(0)

Cancellation of treasury
stock

-

Transfer from retained
earnings to capital surplus-

Net changes in items otherthan those in shareholders’equity492

492

Total changes during the year

492

492

-

20,255

Balance as of March 31, 2023

822

822

12

109,864

- 9 -

492

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31,2022
Operating activities
Profit before income taxes
Depreciation and amortization
Interest and dividend income
Foreign exchange (gain) loss
Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets
Decrease (increase) in accounts receivable
Decrease (increase) in inventories
Increase (decrease) in accounts payable
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other
SubtotalInterest and dividends received
Income taxes paid
Net cash provided by operating activities
Investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Proceeds from sales of non-current assets
Net decrease in time deposits
Other
Net cash used in investing activities
Financing activities
Repayments of lease obligations
Repayments to non-controlling shareholders
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
year
Cash and cash equivalents at the end of the fiscal year

Fiscal year ended
March 31,2023

9,050
8,819
(6)
(5)
1,060
0
4,301
(9,720)
3,599
(171)
(467)
244
16,704
6(355)
16,355- 10 -

23,44012,075
(141)
-

2,172
(29)
(15,162)(31,301)
5,880(19,309)
43,077527
21,229141(3,351)18,019(7,544)(5,234)
0
5,000
(160)
(7,938)(12,629)(7,144)
29

(329)
(129)
(458)

(333)

647

904

8,606

(1,135)37,66546,271

46,27145,136-

19(19,725)-(333)

(5) Notes to consolidated financial statements
Assumptions of a going concern
None.
Changes in accounting policies
Implementation Guidance on Accounting Standard for Fair Value Measurement
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan(“ASBJ”) Guidance No. 31, June 17, 2021; the “Fair Value Measurement Guidance”) has been applied from the beginning of the
fiscal year ended March 31, 2023. In accordance with the transitional treatment stipulated in the Paragraph 27-2 of the Fair Value
Measurement Guidance, the Company has applied the new accounting policies stipulated in the Fair Value Measurement Guidance
prospectively.
The application of the Fair Value Measurement Guidance has no impact on consolidated financial statements of the current fiscal
year.
Additional information
Accounting estimates related to the impact of the novel coronavirus (COVID-19)
Accordingly, the Group determines that the impact of COVID-19 will not significantly affect accounting estimates in the fiscal
year ended March 31, 2023.
Segment information(From April 1, 2022 to March 31, 2023)
The Group has a single segment of Solution SoC business.

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Per share information(Yen)
Fiscal year ended
March 31,2022
Net assets per share
Basic earnings per share

Fiscal year ended
March 31,2023

2,661.30

3,262.93

222.18587.02-557.46

Diluted earnings per share

Notes:
1. The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on September
5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of Type A shares andType B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for Type A shares per
share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all the shares ofType A shares and Type B shares. Net assets per share, basic earnings per share and diluted earnings per share are computed
based on the assumption that the share consolidation and other events above were conducted at the beginning of the fiscal year
ended March 31, 2022.
2. Diluted earnings per share for the fiscal year ended March 31, 2022 is not presented because the Company’s shares were unlisted
and therefore an average quoted stock price is not available although there are dilutive shares.
3. As the Company was listed on the Tokyo Stock Exchange Prime Market on October 12, 2022, diluted earnings per share for the
fiscal year ended March 31, 2023 is computed by deeming the average stock price during the period from the listing date toMarch 31, 2023 as the average stock price during the fiscal year.
4. The bases for calculation of net assets per share:(Millions of yen, unless otherwise stated)
As of March 31, 2022
Total net assets

As of March 31, 2023

89,609109,864

Deductions from total net assets

12

12(Of which, share subscription rights)

(12）

(12）

Net assets attributable to common stock at the end of the
fiscal year
Number of shares of common stock at the end of the fiscal
year used for the calculation of net assets per share
5.

89,597

109,852

33,666,666

33,666,666

The bases for calculation of net income per share:(Millions of yen, unless otherwise stated)
Fiscal year ended
March 31,2022

Fiscal year ended
March 31,2023

Basic earnings per share
Basic profit attributable to owners of parent

7,480

19,763

-

-

7,480

19,763

33,666,666

33,666,666

Adjustment to profit attributable to owners of parent--

Number of shares of common stock increased-

1,785,320

8 series ofshare subscription rights-

Profit not attributable to common shareholders
Profit attributable to common shareholders of parent
Average number of shares of common stock during theperiodDiluted earnings per share

Summary of potential shares not included in the calculationof diluted earnings per share due to their anti-dilutive effect(10,501,400 units)- 12 -

Significant subsequent events
None.

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