CONSOLIDATED FINANCIAL STATEMENTSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESMarch 31, 2022 and 2021

1

CONSOLIDATED BALANCE SHEETSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESAt March 31, 2022 and 2021

Millions of Yen
2022
2021
ASSETS
Current assets:
Cash and bank deposits (Note 5)
Marketable securities (Note 6)
Notes and accounts receivable
Notes, accounts receivable and contract assets(Note 7)
Inventories (Note 8)
Other current assets
Allowance for doubtful accounts
Total current assets-

84,362
2,923
191,930

230,326
164,116
41,157(1,048)502,963

120,837
30,653(894)
429,8121,887,918
1,345,213
337,352(8,590)4,122,648

Property, plant and equipment (Notes 10 and 16)
Land
Buildings
Machinery and equipment
Leased assets
Right-of-use assets
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

35,935
246,887
551,148
1,273
15,07820,074
870,398(610,235)
260,163

35,127
235,399
521,457
1,257
11,39027,108
831,741(584,996)
246,744294,549
2,023,664
4,517,607
10,434
123,590
164,541
7,134,410(5,001,926)
2,132,484

Investments and other assets:
Investments and long-term loans (Notes 6 and 9)
Deferred tax assets (Note 18)
Asset for retirement benefits (Notes 2h and 11)
Other non-current assets
Allowance for doubtful accounts
Total investments and other assets

123,930
7,899
8,127
33,704(912)
172,749

113,544
6,948
6,859
29,168(1,034)
155,486

1,015,820
64,746
66,615276,262(7,475)
1,415,975

Total

\

\

2

65,153
3,257

Thousands of
U.S. dollars(Note 4)2022

935,876\\

832,044$$534,041
26,697

7,671,115-

Millions of Yen
2022
2021
LIABILITIES AND NET ASSETS
Current liabilities:
Short-term debt (Note 10)
Commercial paper (Note 10)
Notes and accounts payable
Accrued income taxes
Provision for product defectcompensation (Notes 2i and 3)
Other current liabilities
Total current liabilities
Long-term liabilities :Bonds (Note 10)Long-term debt (Note 10)
Liability for retirement benefits (Notes 2g and 11)
Provision for environmental costs (Note 2j)
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities\

115,000
54,000127,988
2,649\

103,523
30,000115,502
2,033

Thousands of
U.S. dollars(Note 4)
2022$

942,623442,623
1,049,082
21,713

3,045
77,033379,716

4,022
60,121
315,204

24,959631,418
3,112,426

40,000133,120
43,806
9,343
1,485
14,340242,097

30,000127,094
44,514
10,2291,323
12,061
225,222

327,869
1,091,148
359,066
76,582
12,172
117,541
1,984,402

69,39523,178174,346

69,39523,028
168,542

568,811
189,984
1,429,066(901)
266,018(576)
260,388(7,385)2,180,475

12,446

13,929102,016

2,963(3,024)817
13,201
34,843

2,677(3,829)(13,295)(518)
31,74724,287(24,787)
6,697
108,205
285,598

Contingent liabilities (Note 13)
Net assets
Shareholders' equity (Note 12)
Common stock
Authorized shares,
250,000 thousand in 2022 and 2021
Issued shares,
70,666 thousand in 2022 and 2021
Capital surplus
Retained earnings
Common treasury stock, at cost
49,700 in 2022
49,800 in 2021
Total shareholders' equity
Accumulated other comprehensive income
Unrealized gain (loss) on
available-for-sale securities
Deferred gain (loss) on derivatives
under hedge accounting
Adjustments for retirement benefits
Foreign currency translation adjustments
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total

\

314,062
935,876

See accompanying notes to consolidated financial statements.

3\

291,617832,044$2,574,279
7,671,115

CONSOLIDATED STATEMENTS OF INCOMEFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESFor the years ended March 31, 2022 and 2021

Net sales
Cost of sales (Notes 8 and 14)
Gross profit
Selling, general and administrative
expenses (Note 14)
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Foreign exchange gain
Equity in income of non-consolidated
subsidiaries and affiliates
Equity in loss of non-consolidated
subsidiaries and affiliates
Gain on valuation of derivatives
Loss on valuation of derivatives
Gain on sales of investment securities
Gain on disposal of property, plant andequipment (Note 17)
Loss on disposal of property, plant andequipment (Note 17)
Insurance income (Note 17)
Reimbursement of social contributions forthe past year (Note 17)
Impairment loss (Note 16)
Restructuring costs (Note 17)
Provision for product defect compensation(Note 3)
Loss on transfer of business (Note 17)
Loss on Covid-19 (Note 17)
Other, net
Profit before income taxes
Income taxes (Note 18) :Current
Deferred
Total income taxes
Profitattributable to non-controlling interests
attributable to owners of parent\\

Millions of Yen
2022
2021
930,496\
811,600
791,804
682,288
138,691
129,311

Thousands of
U.S. dollars(Note 4)2022$
7,627,016
6,490,197
1,136,811

127,263
11,428120,8818,429

1,043,139
93,672

2,160(3,375)
1,496

2,302
(3,586)502

17,705(27,664)
12,262

9,045-

74,139

72
1,859

(893)
(1,167)
9,521

590
15,2382,082

22,144

17,066(1,296)2,051(1,303)
1,281(10,623)
16,811

2,722(1,489)(2,303)(2,542)-

22,311(12,205)(18,877)

(703)
(120)
(780)
(2,420)20,430(4,820)(3,770)(1,385)(3,395)21,316(5,762)(984)(6,393)(19,836)
167,459

5,673
1,517
7,190
13,2393,145
10,093

6,047
3,171
9,219
12,0972,095
10,00146,50012,43458,934
108,516
25,77982,730\$U.S. dollars

Yen

Per share of common stock (Notes 2p and 21)
Basic profit
Diluted profit
Cash dividends applicable to the year\\\

143.40
60.00

\
\
\

See accompanying notes to consolidated financial statements.

4

141.88
60.00

$
$
$

1.18
0.49

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESFor the years ended March 31, 2022 and 2021
Thousands of
U.S. dollars(Note 4)2022

Millions of Yen
2022
2021
ProfitOther comprehensive income (Note 20)
Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Adjustments for retirement benefits
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income (loss)
Total comprehensive income (loss)
Attributable to :Owners of parent
Non-controlling interests\

13,239\$108,516(1,853)

2,945(15,189)(205)
638
10,876

4,235
8,124
244

(1,680)5,230
89,148\

5,065
14,521
27,760\294
15,84427,941$

41,516
119,025
227,541\\

23,814
3,946\\

25,888
2,053$$

195,197
32,344

See accompanying notes to consolidated financial statements.

5

12,097

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIES(For the year ended March 31, 2022)

Balance at March 31, 2021
Cumulative effect of retrospective applicationof the accounting policy change
Balance at March 31,2021,reflecting changein accounting policy
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of increase in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Net effect of change in fiscal year endof equity-method affiliates
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2022

Thousands
Number ofshares ofCommon stock
outstanding
70,495

Millions of Yen
Shareholders' equity\

70,495

Commonstock
69,395

Balance at March 31, 2021
Cumulative effect of retrospective applicationof the accounting policy change
Balance at March 31,2021,reflecting changein accounting policy
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of increase in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Net effect of change in fiscal year endof equity-method affiliates
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2022\$

Balance at March 31,2021,reflecting changein accounting policy
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of increase in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Net effect of change in fiscal year endof equity-method affiliates
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2022

$

Total
shareholders'equity\260,388

(30)

-

(30)

69,395-23,028-

168,511(4,237)
10,093(576)-

260,358(4,237)
10,093

-

-

111

-

111

-

-

56

-

56

-

(0)

(190)
-

(360)
35

(190)
(360)
35

-

150

-

-

150

69,395150
23,178

5,834
174,346

(324)
(901)

\

\

\

Millions of Yen
Accumulated other comprehensive income
Foreign
Adjustment
on derivatives
currency
for retirement
under hedgetranslation
benefits
accounting
adjustments(Note 11)\2,677\
(13,295) \(3,829)Deferred gain (loss)

5,659
266,018\

Total
accumulated othercomprehensive
income\(518)

Non-controllinginterests
31,747\\

Total net
assets291,617

-

-

-

-

-

-

(30)

13,929-2,677-(13,295)-(3,829)-(518)-

31,747-

291,587(4,237)
10,093

-

-

-

-

-

-

111

-

-

-

-

-

-

56

-

-

-

-

-

-

(190)
(360)
35

-

-

-

-

(1,483)(1,483)
12,446

286
286
2,963

14,112
14,112817

805
805(3,024)

\

\

\

-

568,811$

188,754$

1,381,492$

13,72013,72013,201\Thousands of U.S. dollars (Note 4)
Shareholders' equity
CommonRetained
Capitaltreasury
earnings
surplusstock

Commonstock
Balance at March 31, 2021
Cumulative effect of retrospective applicationof the accounting policy change\

Commontreasury
stock
(576)

-

Unrealized
gain (loss) on
available-forsale securities\
13,929\\Retainedearnings
168,542

-

(123)
12

(111)
70,384\

Capitalsurplus23,028(4,721)

$

-

(246)

568,811-

188,754-

1,381,238(34,730)
82,730(4,721)-2,134,082(34,730)
82,730

-

-

910

-

910

-

-

459

-

459

-

(0)

(1,557)-(2,951)287(1,557)(2,951)
287

-

1,230

-

-

1,230

-

1,230

47,820(2,656)$

1,429,066$

Non-controllinginterests
260,221$

Total net
assets2,390,303

2,134,328(246)

189,984\

Total
shareholders'equity-$150
16,81522,475314,062\-

568,811

3,095
3,095
34,843(7,385)46,385$2,180,475

Thousands of U.S. dollars (Note 4)

Balance at March 31, 2021
Cumulative effect of retrospective applicationof the accounting policy change
Balance at March 31,2021,reflecting changein accounting policy
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of increase in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Net effect of change in fiscal year endof equity-method affiliates
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2022

Unrealized
gain (loss) on
available-forsale securities$
114,172$

Accumulated other comprehensive income
Deferred gain (loss)
Foreign
Adjustment
on derivatives
currency
for retirement
under hedgetranslation
benefits
accounting
adjustments(Note 11)$
21,943$(108,975) $(31,385)

Total
accumulated othercomprehensive
income$(4,246)

$

-

-

-

-

-

-

(246)

114,172-

21,943-(108,975)-(31,385)-(4,246)-260,221-2,390,057(34,730)
82,730

-

-

-

-

-

-

910

-

-

-

-

-

-

459

-

-

-

-

-

-

(1,557)(2,951)
287

-

-

-

-

(12,156)(12,156)
102,016

2,344
2,344
24,287

115,672
115,672
6,697

6,598
6,598
(24,787)$$

See accompanying notes to consolidated financial statements.

6

$

-

$

112,459
112,459
108,205

$

-

1,230

25,36925,369285,598

137,828
184,2212,574,279$

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIES(For the year ended March 31, 2021)

Balance at March 31, 2020
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of decrease in consolidated
subsidiaries
Net effect of increase in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2021

Thousands
Number ofshares ofCommon stock
outstanding
70,487

Millions of Yen
Shareholders' equity
Commonstock\
69,395(0)
8Capitalsurplus22,787

Balance at March 31, 2020
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of decrease in consolidated
subsidiaries
Net effect of increase in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2021\

69,395

Total
shareholders'equity\256,685(6,002)
10,001

-

-

-

-

(239)

-

(239)

-

-

(65)

-

(65)

-

-

(253)
-

(2)
23

(253)
(2)
23

-

-

240

\

-

8
70,495

Commontreasury
stock
(598)
-

Retainedearnings\
165,101(6,002)
10,001

240

-

\

240
23,028\\

3,441
168,542

\

21
(576)

\

3,702
260,388

Millions of Yen
Accumulated other comprehensive income
Unrealized
Deferred gain (loss)
Foreign
Adjustment
Total
gain (loss) on
on derivatives
currency
for retirement accumulated otheravailable-forunder hedgetranslation
comprehensive
Non-controlling
benefits
sale securities
accounting
adjustments(Note 11)
incomeinterests\
10,950\(1,691) \(12,853) \(12,810) \(16,405) \32,750
-

-

-

-

-

-

(239)

-

-

-

-

-

-

(65)

-

-

-

-

-

-

(253)
(2)
23

-

\

2,979
2,979
13,929\Total net
assets273,030(6,002)
10,001

4,368
4,368
2,677

\

See accompanying notes to consolidated financial statements.

7

\

-

-

-

-

240

(442)
(442)
(13,295)

8,980
8,980
(3,829)15,886
15,886(518)(1,002)(1,002)
31,747

14,883
18,586291,617

\

\

\

\

CONSOLIDATED STATEMENTS OF CASH FLOWSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESFor the years ended March 31, 2022 and 2021
Thousands of
U.S. dollars(Note 4)2022

Millions of Yen
2022
2021
Cash flows from operating activities:
Profit before income taxes
Adjustments for:
Depreciation
Equity in (income) loss of non-consolidated
subsidiaries and affiliates
Gain on sales of marketable securities
and investment securities, net
Loss on transfer of business
Gain on disposal of property, plantand equipment, net
Impairment loss
Insurance income
Restructuring costs
Loss on Covid-19
Loss on write-down of inventories
Reimbursement of social contributions
for the past year
Interest and dividend income
Interest expense
Foreign exchange (gain) loss, net(Increase) in trade receivable(Increase) in trade receivable and contract assets(Increase) in inventories
Increase in trade payable(Decrease) increase in liability
for retirement benefits(Decrease) in provision for productdefect compensation
Other, net
SubtotalInterest and dividend income received
Interest expense paid
Income taxes paid
Insurance income received
Restructuring costs paid
Loss on Covid-19 paid
Net cash used in operating activities

20,430\Cash flows from investing activities:(Increase) decrease in time deposits, net
Purchases of investment securities
Proceeds from sales and redemptionof investment securities
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
Purchases of investments in subsidiaries
resulting in change in scope of consolidation
Purchases of property, plant andequipment
Purchases of intangible assets
Proceeds from sales of non-current assets
Decrease in short-term loans, net
OtherNet cash used in investing activities

8

21,316＄ 167,459

33,721

32,163

276,402(9,045)893(74,139)(1,513)120(9,166)
3,770(12,402)
984

(786)
1,489
(2,051)
2,303
780
373

(20,840)
2,542(1,281)
1,385
1,246

(6,443)
12,205(16,811)18,877
6,393
3,057(2,722)(2,160)3,375
1,309(28,208)(36,005)
11,922(2,302)
3,586
338(13,788)(13,770)
12,161(22,311)(17,705)
27,664
10,730(231,213)(295,123)
97,721(1,049)1,059(8,598)

(796)
3,333
(5,179)2,473(3,429)(6,867)2,051(1,563)(755)(13,269)(13,706)
2,245
7,852
3,287
(3,603)(8,209)1,281(1,088)(479)(6,525)27,320(42,451)
20,270(28,107)(56,287)
16,811(12,811)(6,189)(108,762)(645)(2,353)

4(2,112)(5,287)(19,287)

2,462

14,804

20,180

595

2,306

4,877

\

(266)

-

(2,180)(36,493)(3,521)2,220
72(2,144)(33,386)(7,325)22,3703,540(2,110)(299,123)(28,861)
18,197590(17,574)(40,074)(1,908)(328,475)

Millions of Yen
2022
2021
Cash flows from financing activities:
Increase in short-term debt, net
Increase in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issue of bonds
Proceeds from non-controlling shareholders
Payments for purchase of common treasury stock
Cash dividends paid
Cash dividends paid to non-controlling shareholders
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents of newly consolidated
subsidiaries
Cash and cash equivalents of de-consolidated
subsidiaries
Cash and cash equivalents of merger
Cash and cash equivalents at end of year (Note 5)

17,08524,00016,049(24,776)
10,000(359)(4,240)(825)(1,912)35,0202,008
15,00055,965(30,100)
452(9)(6,001)(521)(1,651)35,140140,041
196,721
131,549(203,082)
81,967(2,943)(34,754)(6,762)(15,672)
287,049(1,815)(20,139)
87,189(594)
32,15855,055(14,877)(165,074)
714,664

582

819

4,770

67,632\

See accompanying notes to consolidated financial statements.

9

Thousands of
U.S. dollars(Note 4)
2022

\

(866)
22
87,189＄ 554,361

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSFURUKAWA ELECTRIC CO., LTD. AND
ITS SUBSIDIARIES

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Furukawa Electric Co., Ltd. (the"Company") have been prepared in accordance with the provisions set forth in the Japanese
Financial Instruments and Exchange Act and its related accounting regulations and inaccordance with accounting principles generally accepted in Japan ("Japanese GAAP"),
which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards (“IFRS”).
In preparing these consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued domesticallyin order to present them in a form which is more familiar to readers outside Japan. In
addition, certain reclassifications have been made in the 2021 consolidated financial
statements to conform to the classifications used in 2022.
Japanese yen figures less than a thousand yen are rounded down to the nearest thousand
yen, except where otherwise indicated.

2. Significant Accounting Policiesa) Basis of consolidation(1) The consolidated financial statements as of March 31, 2022, include the accounts of theCompany and its 109 (109 in 2021) significant subsidiaries (together, the "Group").
Under the control and influence concepts, those companies in which the Company, directly
or indirectly, is able to exercise control over operations are fully consolidated, and thosecompanies over which the Group has the ability to exercise significant influence areaccounted for by the equity method.
Investments in 14 (13 in 2021) unconsolidated subsidiaries and associated companies areaccounted for by the equity method.
Investments in the remaining unconsolidated subsidiaries and associated companies arestated at cost. If the equity method of accounting had been applied to the investments inthese companies, the effect on the accompanying consolidated financial statements would
not be material.
The excess of the cost of acquisition over the fair value of the net assets of an acquired
10subsidiary at the date of acquisition is amortized over a period of 20 years.
All significant intercompany balances and transactions have been eliminated inconsolidation. All material unrealized profit included in assets resulting from transactions
within the Group is also eliminated.
(2) Fiscal year-end of the consolidated subsidiaries
There are 52 subsidiaries' fiscal year-ends that differ from that of the Company due to local
statutory requirements. Those 52 subsidiaries' fiscal year-end is December 31, and theCompany makes necessary adjustments if there are any significant transactions. There
have been no significant transactions, which would materially affect the Company's
financial position and results of operations, with such subsidiaries during the period fromtheir closing date to March 31.
(3) Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements
Under Accounting Standards Board of Japan ("ASBJ") Practical Issues Task Force("PITF") No. 18, "Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements," the accounting policies
and procedures applied to a parent company and its subsidiaries for similar transactions
and events under similar circumstances should in principle be unified for the preparationof the consolidated financial statements. However, financial statements prepared byforeign subsidiaries in accordance with either International Financial ReportingStandards or generally accepted accounting principles in the United States of America(Financial Accounting Standards Board Accounting Standards Codification) tentatively
may be used for the consolidation process, except for the following items that should be
adjusted in the consolidation process so that net income is accounted for in accordance withJapanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled
amortization of actuarial gains and losses of pensions that has been recorded in equity
through other comprehensive income; (c) expensing capitalized development costs of R&D;(d) cancellation of the fair value model of accounting for property, plant and equipment
and investment properties and incorporation of the cost model of accounting; and (e)recording a gain or loss through profit or loss on the sale of an investment in an equity
instrument for the difference between the acquisition cost and selling price, and recording
impairment loss through profit or loss for other-than-temporary declines in the fair valueof an investment in an equity instrument, where a foreign subsidiary elects to present inother comprehensive income subsequent changes in the fair value of an investment in an
equity instrument.
(4) Unification of Accounting Policies Applied to Foreign Associated Companies for the
Equity Method
ASBJ Statement No. 16, "Accounting Standard for Equity Method of Accounting forInvestments," requires adjustments to be made to conform the associate's accounting
policies for similar transactions and events under similar circumstances to those of theparent company when the associate's financial statements are used in applying the equity
method, unless it is impracticable to determine such adjustments. In addition, financial
statements prepared by foreign associated companies in accordance with either
International Financial Reporting Standards or generally accepted accounting principles
in the United States of America tentatively may be used in applying the equity method if

11the following items are adjusted so that net income is accounted for in accordance withJapanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled
amortization of actuarial gains and losses of pensions that has been recorded in equity
through other comprehensive income; (c) expensing capitalized development costs of R&D;(d) cancellation of the fair value model of accounting for property, plant and equipment
and investment properties and incorporation of the cost model of accounting; and (e)recording a gain or loss through profit or loss on the sale of an investment in an equity
instrument for the difference between the acquisition cost and selling price, and recording
impairment loss through profit or loss for other-than-temporary declines in the fair valueof an investment in an equity instrument, where a foreign associate elects to present inother comprehensive income subsequent changes in the fair value of an investment in an
equity instrument..
(5) Business Combinations
Business combinations are accounted for using the purchase method. Acquisition-related
costs, such as advisory fees or professional fees, are accounted for as expenses in the
periods in which the costs are incurred. If the initial accounting for a business combination
is incomplete by the end of the reporting period in which the business combination occurs,
an acquirer shall report in its financial statements’ provisional amounts for the items forwhich the accounting is incomplete. During the measurement period, which shall not
exceed one year from the acquisition, the acquirer shall retrospectively adjust theprovisional amounts recognized at the acquisition date to reflect new information obtained
about facts and circumstances that existed as of the acquisition date and that would haveaffected the measurement of the amounts recognized as of that date. Such adjustments
shall be recognized as if the accounting for the business combination had been completed
at the acquisition date. A parent's ownership interest in a subsidiary might change if theparent purchases or sells ownership interests in its subsidiary. The carrying amount of
noncontrolling interest is adjusted to reflect the change in the parent's ownership interest
in its subsidiary while the parent retains its controlling interest in its subsidiary. Any
difference between the fair value of the consideration received or paid and the amount bywhich the noncontrolling interest is adjusted is accounted for as capital surplus as long as
the parent retains control over its subsidiary.
b) Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of cash flows are composed of
cash on hand, bank deposits capable of being withdrawn on demand and short-term
investments with an original maturity of three months or less and subject to a minor riskof fluctuation in value.
c) Financial instruments(1) Debt and equity securities
Debt securities for which the Group has both the positive intent and ability to hold tomaturity are classified as “held-to-maturity debt securities” and mainly carried atamortized cost. Securities other than held-to-maturity debt securities and investments inequity securities of non-consolidated subsidiaries and affiliates are classified as “availablefor-sale securities” and carried at fair value with unrealized gain and loss, net of tax,
reported as a separate component of net assets. For computing gain and loss on securities
sold, the cost of these securities is determined using the moving average method. Securities

12that do not have readily determinable fair values are recorded at cost. For other-thantemporary declines in fair value, investment securities are reduced to net realizable value
by a charge to income. The Group does not hold any trading securities.
Debt securities due within one year are presented as “Marketable securities” under current
assets, and all other securities are presented as “Investments and long-term loans” in theaccompanying balance sheets.
(2) Derivatives and Hedging Activities
The Group uses derivative financial instruments to manage its exposures to fluctuations
in foreign exchange, interest rates and prices. Foreign exchange forward contracts,
currency swap, interest rate swaps and forward contracts for metal materials are utilized
by the Group to reduce foreign currency exchange and interest rate risks and pricefluctuation risk of raw materials. The Group does not enter into derivatives for trading or
speculative purposes.
Derivative financial instruments are classified and accounted for derivatives used forhedging purposes, if such derivatives qualify for hedge accounting because of highcorrelation and effectiveness between the hedging instruments and the hedged items,
gains or losses on derivatives are deferred until maturity of the hedged transactions.
Foreign currency forward contracts employed to hedge foreign exchange exposures forexport sales and purchases are measured at fair value and the unrealized gains and losses
are recognized in income.
Forward contracts applied for forecasted (or committed) transactions used are alsomeasured at fair value but the unrealized gains and losses are deferred until theunderlying transactions are completed.
Trade receivable and trade payable denominated in foreign currencies for which foreignexchange forward contracts are used to hedge the foreign currency fluctuations istranslated at the contracted rate if the forward contracts qualify for hedge accounting.
Long-term debt denominated in foreign currencies for which currency swap are used tohedge the foreign currency fluctuations is translated at the contracted rate if the forward
contracts qualify for hedge accounting. Also, those long-term debt with interest rate swaps
which qualify for hedge accounting and meet specific matching criteria are not remeasured
at market value, but the differential paid or received under the swap agreements is
recognized and included in interest expense.
d) Inventories
Inventories are stated principally at cost determined using the average method, which
requires the amount of the inventories on the balance sheets be written down when there
is a decrease in profitability.
e) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at the amount of estimated non-recoverable
receivables on an individual account basis, plus the amount calculated by applying thehistorical bad debt loss ratios to the remaining receivables.

13f) Property, plant and equipment
Property, plant and equipment, including significant capital expenditures and additions,
are stated at cost. Repairs and maintenance expense are charged to income as incurred.
Properties except for leased assets are depreciated principally using the straight-line
method.
g) Impairment of fixed assets
The Group reviews its fixed assets for impairment whenever events or changes incircumstance indicate the carrying amount of an asset or asset group may not berecoverable. An impairment loss shall be recognized in the statements of income by
reducing the carrying amount of impaired assets or a group of assets to the recoverable
amount, to be measured as the higher of net selling price or value in use.
Accumulated loss of impairment is deducted directly from the acquisition costs of therelated assets in accordance with the revised disclosure requirements.
h) Retirement benefits
Employees who terminate their service with the Company or its domestic consolidated
subsidiaries are entitled to lump-sum severance indemnities determined based on
accumulated points allocated to employees each year according to their job classificationand performance. The liability for these severance indemnities is not funded.
The retirement benefit plans of the Company and its domestic consolidated subsidiaries
have features whereby employees who retire at age 55 or over with 20 or more years ofservice may elect to receive benefits in the form of pensions. These plans, which are noncontributory and funded, generally provide for an annuity payable over a ten-year period
subsequent to retirement. The annual contributions for pension benefits include current
service costs, amortization of prior service costs and interest on the unfunded portion of
past service costs.
The Company and its domestic consolidated subsidiaries recognize retirement benefits
based on the estimated amounts of projected benefit obligation reduced by the fair value ofthe pension plan assets at each fiscal year-end.
The retirement benefit obligation for employees is attributed to each period by the benefit
formula method.
Prior service cost is being amortized as incurred by the straight-line method over periods(mainly 1 year through 10 years), which are shorter than the average remaining years ofservice of the employees.
Actuarial gains and losses are amortized in the year following the year in which the gains
and losses are recognized primarily by the straight-line method over periods (mainly 1 year
through 10 years), which are shorter than the average remaining years of service of theemployees.
Unrecognized actuarial gains and losses and unrecognized prior service cost are recorded
as adjustments for retirement benefits in accumulated other comprehensive income within
net assets after adjusting for tax effects.

14

A minimum pension liability adjustment is required for the Company’s consolidated
subsidiaries in the U.S., generally when the accumulated benefit obligation exceeds plan
assets under U.S. GAAP. The minimum liability adjustment, less allowable intangible
assets, is directly charged to retained earnings, net of tax benefit, in the accompanying
consolidated financial statements.
Certain consolidated subsidiaries use a simplified method for calculating retirement
benefit expenses and liabilities based on the assumption that the benefits payable, which
are calculated as if all eligible employees voluntarily terminated their employment at fiscal
year-end, approximates the retirement benefit obligation at year-end.
i) Provision for product defect compensation
Provision for product defect compensation is provided at an amount deemed necessary tocover possible compensation costs.
j) Provision for environmental costs
Provision for environmental costs, mainly to remove Poly Chlorinated Biphenyl (“PCB”)
and to improve soil conservation, is provided to cover estimated future costs.
k) Revenue Recognition
The Group recognizes revenue in an amount that reflects the consideration to which it
expects to be entitled in exchange for satisfying performance obligations to transfer the
goods or services promised in contracts with customers. The nature of performanceobligations for each of the Group’s major industry and when such obligations are satisfied
are as follows:(1) Manufacture and sale of products
The main business of the Group is the manufacture and sale of infrastructure products,
such as information and telecommunications network components and power cables,
electrical and electronics products such as automobile parts and copper products forelectronic equipment materials, and functional products processed from resin andnonferrous metals.
The Group has determined that its main performance obligation is to deliver finishedproducts to customer. The Group has comprehensively determined that legal title to theasset, the significant risks and rewards of ownership of the assets, transfer of physicalpossession of the assets, and the right to receive payment of consideration for the asset
shall arise at the time of delivery of the product to the customer.
For domestic transactions, control over products is transferred to customer at the time ofdelivery of the product to the customer, and a performance obligation is considered to havebeen satisfied. However, since the period from the date of shipment of the product to thedate of delivery is a normal period of time, the Group recognizes revenue when the productis shipped based on its significance as selecting the alternative treatment.
For trade transactions, the Group recognizes revenue when the risk-bearing is transferred
to customer, mainly based on the terms of trade stipulated by incoterms and otheragreements.

15

For buy-sell transaction, no inventories are recognized because the Group does not obtain
control over raw materials and other products, but only record the net amount equivalent
to the processing fees as sales.
The Group deducts the amount of the consideration to be paid to customer, such as volume
discount and sales incentive, from the transaction price, unless such a consideration to bereceived from the customer is related to distinct goods or services received from thecustomers.
(2) Maintenance services
The Group provides chargeable maintenance support services after sales of products, inmainly the infrastructure business.
For maintenance services, the Group has determined that it has a performance obligation
to always have the services available and on standby so that customer can utilize themaintenance services when the customer desires throughout the performance period.
The Group recognizes revenue at the percentage of time elapsed to the period in which theservices are to be provided because the maintenance services are identified as distinct
performance obligations and are performed over a certain period of time, including standby
status period.
(3) Construction contract
The Group performs construction works, such as design, construction, installation, andother work based on contracts with customer in the infrastructure business.
Since the Group transfers control over underlying goods and services over time andsatisfies a performance obligation recognizes revenue over time. Measuring progress
towards satisfaction of a performance obligation is based on the proportion that the cost
incurred by the end of each reporting period to the total expected costs incurred (input
method).
In cases where the Group may not be able to reasonably measure the outcome of aperformance obligation, but expects to recover the costs incurred in satisfying theperformance obligation, the Group recognizes revenue only to the extent of the costs
incurred until such time that it can reasonably measure the outcome of the performanceobligation.
For construction contracts with short durations, the Group recognizes revenue at the pointof time when a performance obligation is fully satisfied.
(4) Transactions conducted as an agent
The Group does not manufacture products and only makes transactions of procurement
arrangements on behalf of its customers. If the Group does not control products before
transferring it to customer, revenue is recognized on the net amount received from thecustomer less the amount paid to supplier.
The following are considered in determining whether the Group controls over products orservices before these are provided to customer.
(i) Its primary responsibility for the performance of its promise to provide goods orservices16

(ii) The inventory risk before goods or services are provided to customer or after
control has been transferred to customer(iii) Discretion in establishing the price of goods or services.
The payment after satisfying the Group's performance obligation does not include any
significant financing component since the payment will be made generally within one year
from that time when such a satisfaction.
l) Research and development costs, and computer software
Research and development expenditure is charged to income when incurred. Expenditure
relating to computer software developed for internal use is charged to income whenincurred, except when it contributes to the generation of income or to future cost savings.
Such expenditure is capitalized as an asset and amortized using the straight-line method
over its estimated useful life of 5 to 10 years.
m) Leases
Finance lease transactions are capitalized by recognizing lease assets and lease obligationsin the balance sheet.
All other leases are accounted for as operating leases.
Depreciation of finance lease assets that transfer ownership of the assets is calculated by
the same method applied for property, plant and equipment.
Depreciation of finance lease assets, that do not transfer ownership of the assets, at theend of the lease term, mainly machinery and equipment, and vehicles, is calculated by thestraight-line method over the lease periods, which are deemed as the useful lives, assuming
no residual value.
Right-of-use assets are depreciated on a straight-line basis over the shorter of theirestimated useful lives or lease terms.
n) Income taxes
The provision for income taxes is computed based on the pretax income included in the
consolidated statement of income.
Deferred income taxes are recognized to reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes andthe amounts used for income tax purposes, and measured using the enacted tax rates andlaws, which will be in effect when differences are expected to reverse.
The currently effective consolidated tax regime will be replaced by a new regimen of grouptax relief from the beginning of the next fiscal year.
As for the items subjected to the transition to the group tax sharing system establishedunder the “Act on Partial Revision of the Income Tax Act, etc.” (Act No. 8 of 2020), as wellas the items reviewed under the non-consolidated taxation system in conjunction with thetransition to the group tax sharing system, the Company and certain domestic consolidated
subsidiaries have not adopted the provisions of Paragraph 44 of the “Implementation
Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, issued on February 16, 2018)
in accordance with the treatment under Paragraph 3 of the “Practical Solution on theTreatment of Tax Effect Accounting for the Transition from the Consolidated Taxation

17

System to the Group Tax Sharing System” (PITF No. 39, issued on March 31, 2020). The
amounts of deferred tax assets and deferred tax liabilities are calculated based on theprovisions of the Income Tax Act before the revision.
The Group will apply the “Practical Solution on the Accounting and Disclosure under theGroup Tax Sharing System” (PITF No. 42, issued on August 12, 2021), from the beginningof the next fiscal year, which stipulated the treatment of accounting and disclosures ofincome taxes and local income taxes as well as tax effect accounting under the group tax
sharing system.
o) Translation of foreign currency accounts
Current and non-current monetary items denominated in foreign currencies are translated
into Japanese yen at exchange rates in effect at the respective balance sheet dates.
Monetary items denominated in foreign currencies, for which foreign exchange forward
contracts are used to hedge the foreign currency fluctuation, are translated into Japanese
yen at the contracted rates. Exchange gain or loss is credited or charged to current
operations.
The Group translates the revenue and expense accounts of the overseas consolidated
subsidiaries and affiliates accounted for by the equity method at the average rates of
exchange in effect during the year. The balance sheet accounts except for the components
of net assets excluding non-controlling interests in the overseas consolidated subsidiaries
and affiliates accounted for by the equity method, are translated into Japanese yen at therates of exchange in effect at the respective balance sheet date. The components of net
assets excluding non-controlling interests in the overseas consolidated subsidiaries andaffiliates accounted for by the equity method are translated at their historical exchange
rates. Differences arising from translation where two exchange rates have been used arepresented under translation adjustments and non-controlling interests as a component of
net assets.
p) Per Share Information
Basic net income per share is computed by dividing net income attributable to commonshareholders by the weighted-average number of common shares outstanding for theperiod, retroactively adjusted for stock splits.
Diluted net income per share is not presented as the effect of including potential commonshares is anti-dilutive.
Cash dividends per share presented in the accompanying consolidated statement of income
are dividends applicable to the respective fiscal years, including dividends to be paid after
the end of the year.
q) Accounting Changes(1) Accounting Standard for Revenue Recognition(i) Overview
Effective April 1, 2021, the Group adopted ASBJ Statement No. 29, “AccountingStandard for Revenue Recognition” issued on March 31, 2020 and others, from the18

beginning of this fiscal year and recognizes revenue at the amount expected to bereceived in exchange for promised goods or services when control of the goods orservices is transferred to customers.
The adoption of this accounting standard has made the following changes.
For transactions of purchasing raw materials from customers, processing them, andthen selling them to the customers, revenue was previously recognized at the grossamount of the consideration including the purchase price of the raw materials, but
now revenue is recognized at the net amount of the consideration excluding thepurchase price of the raw materials.
For transactions in which goods or services are provided to a customer as an agent,
revenue was previously recognized at the gross amount of consideration received
from the customer, but now revenue is recognized at the net amount received fromthe customer less the amount paid to the supplier.
For export sales, the Company and its domestic consolidated subsidiaries previously
recognized revenue mainly on the date of shipment, but now revenue is recognizedwhen the risk burden is transferred to the customer based on the trade terms definedby such as Incoterms.
For construction contracts, previously, the percentage-of-completion method wasapplied when the outcome of construction contracts could be estimated withcertainty, while the completed-contract method was applied for all otherconstruction contracts.
Revenue is now recognized over a period of time as performance obligations are
satisfied.
The percentage of progress toward satisfying performance obligations is estimatedusing the ratio of actual cost to be estimated total cost (input method) if the outcomeof the performance obligations can be reasonably measured.
When the percentage of completion of performance obligations cannot be reasonably
estimated, but the costs incurred are expected to be recovered, revenue is recognizedon a cost recovery basis. For very short-term construction contracts, revenue isrecognized when the performance obligations are fully satisfied.
Certain sales rebates and other consideration paid to customers were previously
treated as selling, general and administrative expenses, but have been reduced fromnet sales.
(ii) Cumulative effect of retrospective application
In terms of applying the Accounting Standard for Revenue Recognition and others,
according to the transitional provisions described in the proviso of the paragraph 84
of the Accounting Standard for Revenue Recognition, the cumulative effect ofretrospectively applying the new accounting policy prior to the beginning of thisfiscal year, were added to, or deducted from retained earnings at the beginning of
this fiscal year.
However, in accordance with paragraph 86 of the Accounting Standard for Revenue
Recognition, the new accounting policy was not applied retrospectively to contracts
for which almost of all of the revenue amounts have had been recognized by the19previous accounting policy before the beginning of this fiscal year.
In addition, in accordance with the method prescribed in paragraph 86 note (1) of
the Accounting Standard for Revenue Recognition, contract modifications madeprior to the beginning of this fiscal year are accounted for based on the contract
terms after reflecting all of contract modifications, and the cumulative effect of suchmodifications was added to or deducted from retained earnings at the beginning of
this fiscal year.
(iii) Changes in the financial statement presentation items
In the consolidated balance sheets, “Notes and accounts receivable " under "Current
assets" reported in the previous fiscal year are reported in “Notes, accounts
receivable and contract assets” from this fiscal year.
In the consolidated statements of cash flows, "(Increase) in trade receivable" under"Cash flows from operating activities" are reported in "(Increase) in trade receivableand contract assets” from this fiscal year.
In accordance with the transitional treatment prescribed in Paragraph 89-2 of the
Accounting Standard for Revenue Recognition, the reclassification has not been
made to conform to the new presentation for the previous fiscal year(iv) Impact of adoption of accounting standard and implementation guidanceComparing with the consolidated statements of income before applying the
Accounting Standard for Revenue Recognition and others, in such consolidated
statements of income for this fiscal year, “Net sales”, “Cost of sales”, and “Selling,
general and administrative expenses” decreased by ¥52,533 million ($430,598
thousand), ¥51,805 million ($424,631 thousand), ¥342 million ($2,803 thousand),
respectively. And “Profit before income taxes” decreased by ¥386 million ($3,164
thousand).
In the consolidated balance sheet for this fiscal year, the impact was immaterial.
In the consolidated statements of cash flows for this fiscal year, “Profit before income
taxes” decreased by ¥386 million ($3,164 thousand).
In the consolidated statements of changes in net assets, the beginning balance ofretained earnings decreased by ¥30 million ($246 thousand) due to the cumulative
effect of retrospective application of the accounting policy change at the beginningof this fiscal year.
In accordance with the transitional treatment stipulated in Paragraph 89-3 of the
Accounting Standard for Revenue Recognition, the notes for the previous fiscal year
are not presented.
(2) Accounting Standard for Fair Value Measurement
The Group applied, "Accounting Standard for Fair Value Measurement" (“ASBJ
Statement No. 30” issued on July 4, 2019) from the beginning of this fiscal year.
In accordance with paragraph 19 of this accounting standard and the transitional
provisions described in the provision to paragraph 44-2 of Accounting Standard for20

Financial Instruments (“ASBJ Statement No 10“ issued on July 4, 2019), the Group
is to apply the ASBJ Statement No. 30 prospectively.
There is no impact on the consolidated financial statements.
In addition, the notes to the "Financial Instruments" include items related to thebreakdown of the fair value of financial instruments by level of fair value andrelevant information. However, in accordance with the transitional treatment
stipulated in paragraph 7-4 of Guidance on Disclosures about Fair Value of
Financial Instruments (“ASBJ Guidance No 19” issued on July 4, 2019), such notes
related to the previous fiscal year are not presented for the previous fiscal year.
r) Standards issued but not yet effective(1) The Company and its consolidated domestic subsidiaries(i) Overview"Implementation Guidance on Accounting Standard for Fair Value Measurement”（”ASBJ Guidance No. 31”issued on June 17, 2021） defines the treatment ofcalculation of the market value of investment trusts and notes to the market valueof investments in partnerships, etc., in which the net amount of equity interest isrecorded on the balance sheet.
(ii) Schedule date of adoption
This standard will be applied from the beginning of the fiscal year ending March 31,2023.
(iii) Impact of adoption of new accounting standard and implementation guidance
The effect amount is currently being evaluated in preparing its consolidated
financial statements.
(2) Overseas consolidated subsidiaries(i) Overview
Leases (US GAAP ASU 2016-02) generally requires a lessee the recognition of rightof-use assets and lease liabilities for all leases on the financial statements.
(ii) Schedule date of adoption
This standard will be applied from the beginning of the fiscal year ending March 31,2023.
(iii) Impact of adoption of accounting standard and implementation guidance
The effect amount is currently being evaluated in preparing its consolidated
financial statements.
s) Additional information
Based upon a resolution of the 194th Ordinary General Meeting of Shareholders on June27, 2016, the Company has introduced a Performance-Linked Stock Compensation System(Board Benefit Trust, hereafter the “BBT”) to a part of remuneration for the Directors
excluding the Outside Directors, and the Executive Officers other than the Directors andthe Senior Fellow (collectively the “Directors, etc.”) in order to make stronger linkage to21

the Company’s business performance and contribute to higher corporate value on a
medium - to long-term basis.
(i) Overview
In accordance with the Stock Benefit Regulations for Executives (the “Regulation”),
previously set out by the Company, points are granted to the Directors, under the
BBT during their term in office and the number of shares equivalent to theaccumulated points that are granted at the time of their retirement, are provided
after adjusting down points linked to the Company’s business performance. If the
Directors who receive the benefits meet the requirements of the Regulation, money
in an amount equivalent to a certain portion of those points granted to the Directors
shall be provided to them instead of the Company’s shares.
The shares to be provided to the Directors, including the shares to be provided fortheir future services, have been acquired using monetary assets contributed
previously by the Company to the BBT. Those shares are managed separately as an
asset in BBT.
(ii) Accounting treatment
The Gross method has been applied in accordance with “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. throughTrusts” (PITF No. 30 issued on March 26, 2015).
(iii) The Company’s shares remaining in the BBTThe Company’s shares owned by the BBT are accounted for as treasury stock in the
Net assets section at book value recorded by the BBT (excluding acquisition-related
costs). The book value and the number of shares on treasury stock are ¥605 million($4,959 thousand) and 215,500 shares on March 31, 2022, and ¥280 million and
104,900 shares on March 31, 2021, respectively.

3. Significant Accounting Estimatesa) The estimates and judgments based on the future business plan
The impact of the new coronavirus infection is expected to recover to a certain degree.
Regarding the situation in Russia and Ukraine, there was a direct impact on businessassets in Russia, and a fixed asset impairment loss of ¥673 million ($5,516 thousand) wasrecorded.
This issue has caused supply instability and price spikes for raw materials such as crude
oil and natural gas. In addition, the implementation of economic sanctions against Russia
by several countries and Russia's countermeasures against these sanctions have caused
supply chain disruptions and other diverse and complex risks.
Therefore, it is extremely difficult to predict all effects including indirect effects on theGroup’s future performance.
(i) The recoverability of deferred tax assets
Deferred tax assets are recognized based on future taxable income estimated by the
future business plan with certain assumptions as described above.
The timing and amount of taxable income may be affected by uncertain future22fluctuations in economic conditions. If the timing and amount of the deferred tax are
different from the estimation, this may have a significant impact on the amount ofdeferred tax assets recognized in the following consolidated fiscal year.
The amount of the deferred tax assets recorded in the consolidated financial
statements was ¥7,899 million ($64,746 thousand) on March 31, 2022 and was¥6,948 million on March 31, 2021, respectively.
.
(ii) Impairment of fixed assets
If any impairment indicators exist based on the operating income/loss at the end ofeach reporting period, the Group assesses whether to recognize an impairment loss.
An impairment loss is recognized if the carrying amount of an asset or asset groupexceeds the total amount of the undiscounted future cash flows generated from thecontinued use and the net selling price at disposition of the asset or asset group. If
recognition of impairment loss is deemed necessary, the carrying amount is reduced
to the recoverable amount and is recorded as an impairment loss. The net selling
value is calculated based on the amount obtained from outside experts, such as thereal estate appraisal value in a real estate appraisal report.
In the current fiscal year, the Group assessed mainly the asset group of which
operating income/loss was lower than the original budget and became negative due
to raw material shortages the rising of raw material price and transportation costs.
As a result, the Group determined that an indication of impairment existed in acertain asset group of the Infrastructure segment (¥12,214 million ($100,115
thousand) of tangible and intangible fixed assets). However, based upon a situationof improvement of productivity and other reasons, the Group concluded that therecognition of impairment loss was not necessary since the total amount of theundiscounted future cash flows generated from the asset group exceeded thecarrying amount.
In estimating the total undiscounted future cash flows, the Group used someassumptions, such as sales volumes, unit sales price, market forecast and disposal
value of the fixed assets. If the assumptions used to estimate undiscounted future
cash flows need to be revised due to uncertain future changes in economic conditions,an impairment loss may be recognized in the next fiscal year.
For the year ended March 31, 2022, the total amount of fixed assets was ¥280,684
million ($2,300,689 thousand), of which the total amount of asset groups identified
as indicative of impairment was ¥12,214 million ($100,115 thousand).
For the year ended March 31, 2021, the total amount of fixed assets, including
property, plant and equipment and intangible assets, was ¥266,994 million, of which
the total amount of asset groups identified as indicative of impairment was ¥12,400
million.
b) Provision for product defect compensation
Provision for product defect compensation is provided at an amount deemed necessary tocover possible compensation costs.
In particular, the provision in reference to the automotive parts manufactured by its
consolidated subsidiaries, vehicles in which such parts have been incorporated were being
recalled, is recognized based on the estimated loss to be incurred if the customer repairs amalfunction of the vehicle with some parts manufactured by the Company's consolidated
subsidiaries in the past.

23

This amount is calculated by multiplying each of the following factors:(i) Number of target vehicles(ii) Repair costs per unit(iii) Expected rate of market recovery measures (recall)(iv) Customer burden rate for repair costsii) and iii) are estimated based on past recall results and iv) are estimated based on thestatus of negotiations with customers. These estimates contain uncertainty, and as a resultof the situation changes, an additional or reversal of provision may be required.
No significant new projects were identified.
The amount recorded in the consolidated financial statements was ¥3,045 million ($24,959
thousand) on March 31, 2022 and was ¥4,022 million on March 31, 2021, respectively.

4. U.S. Dollar Amounts
The consolidated financial statements are stated in Japanese yen, the currency of the country
in which the Group is incorporated and operates. The translations of Japanese yen amountinto U.S. dollar amounts are included solely for the convenience of readers outside Japan andhave been made at the rate of ¥ 122 to $1, the approximate rate of exchange as of March 31,
2022. Such translations should not be construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or any other rate.

5. Cash Flow Informationa) Cash and cash equivalents as of March 31, 2022 and 2021 consisted of:Millions of Yen
2022
2021
Cash and bank deposits
Less, time deposits with an
original maturity of more than 3monthsHighly liquid securities
Cash and cash equivalents

Thousands
ofU.S. dollars
2022¥ 65,153¥ 84,362$ 534,041

(778)

(96)

(6,377)

3,257

2,923

26,697¥ 67,632¥ 87,189$ 554,361b) The summary of assets and liabilities which were transferred due to business transfer(For the year ended March 31, 2022)
The following is the summary of the assets and liabilities of Furukawa Logistics Corp. andits subsidiary, Yokohama Drum Manufacturing Co., Ltd, which ceased to be a consolidated
subsidiary as a result of the sale of shares, as well as the sales price and proceeds from thesale of shares
24

Millions of Yen
2022

Thousands
ofU.S. dollars
2022

Current assets¥ 3,862$ 31,656

Non-current assets
Current liabilities
Non-current liabilities
Foreign currency translation adjustments
Gain on sales of subsidiaries and affiliates'
sharesSales amount of those shares
Cash and cash equivalents
Proceeds from sales of those shares

1,552(3,987)
(300)
(376)

12,721(32,680)(2,459)(3,082)

115
865
(270)
¥ 595

943
7,090
(2,213)$ 4,877(For the year ended March 31, 2021)
The following is the summary of the assets and liabilities of Daishin P&T Corporation and
Furukawa Metal (Thailand) Public Co., Ltd., which ceased to be a consolidated subsidiaryas a result of the sale of shares, as well as the sales price and proceeds from the sale ofshares.
Millions of Yen
2021
Current assets¥ 12,562

Non-current assets
Current liabilities
Non-current liabilities
Foreign currency translation adjustments
Deferred loss on derivatives under hedge
accounting
Unrealized loss on available-for-salesecurities
Non-controlling interests
Investment account after sales of shares
Decrease in retained earnings resulting
from exclusion of subsidiaries fromconsolidation
Loss on business transfer
Sales amount of those shares
Accounts payable - otherCash and cash equivalents
Proceeds from sales of those shares

6. Debt and Equity Securities

25

3,179
(6,158)
(548)
473
(21)
(21)
(3,077)(52)(65)(3,770)
2,500
114
(309)
¥ 2,306

Investments in debt and equity securities that have a readily determinable fair value as ofMarch 31, 2022 and 2021 included in “Marketable securities” (Current assets) and in“Investments and long-term loans” (Non-current assets) are summarized as follows:
Millions of Yen
2022

Held-to-maturity debt securities:
Government bonds, municipal bonds
and other
Other debt securities
Total held-to-maturity debt securities
Available-for-sale securities:
Marketable equity securities
Other securities
Total available-for-sale securities

Cost

Fair valueGrossunrealized
gain

Gross
unrealized
loss¥ 3,257¥ 3,257¥ -¥ -¥ 3,257¥ 3,257¥ -¥ -¥ 8,871¥ 8,871¥ 27,115¥ 27,115¥ 18,456¥ 18,456¥ (212)¥ (212)Thousands of U.S. dollars
2022

Held-to-maturity debt securities:
Government bonds, municipal bonds
and other
Other debt securities
Total held-to-maturity debt securities
Available-for-sale securities:
Marketable equity securities
Other securities
Total available-for-sale securities

Cost

Fair valueGrossunrealized
gain

Gross
unrealized
loss$ 26,697$ 26,697$ -$ -$ 26,697$ 26,697$ -$ -$ 72,713$ 72,713$ 222,254$ 222,254$ 151,279$ 151,279$ (1,738)$ (1,738)

Millions of Yen
2021

Held-to-maturity debt securities:
Government bonds, municipal bonds
and other
Other debt securities
Total held-to-maturity debt securities

Cost

Fair valueGrossunrealized
gain¥ 2,923¥ 2,923¥ -¥ -¥ 2,923¥ 2,923

¥ -

¥ -

26

Gross
unrealizedloss

Available-for-sale securities:
Marketable equity securities
Other securities
Total available-for-sale securities¥ 9,1254¥ 9,131¥ 29,9174¥ 29,923¥ 20,985¥ 20,985¥ (193)¥ (193)

Proceeds from sales of available-for-sale securities for the years ended March 31, 2022 and2021 were ¥2,047 million ($16,779 thousand) and ¥9,518 million, respectively.
The gross realized gains on those sales for the years ended March 31, 2022 and 2021 were
¥1,744 million ($ 14,295 thousand) and ¥8,431 million, respectively. The gross realized losseson those sales for the year ended March 31, 2022 and 2021 were ¥3 million ($25 thousand)and ¥31 million, respectively.
Impairment loss on available-for-sale securities with fair value for the years ended March 31,
2022 and 2021 amounted to ¥32 million ($262 thousand) and ¥236 million, respectively.

7. Notes, accounts receivable and contract balances
Notes, accounts receivable and contract assets as of March 31, 2022 consisted of the following:Notes receivable
Accounts receivable
Contract assets
OthersMillions of
Yen
2022

Thousands of
U.S. dollars
2022¥ 20,539
202,980
6,797
230,3169¥ 230,326$ 168,352
1,663,770
55,713
1,887,836
74$ 1,887,918

In addition, contract liabilities of ¥2,807 million ($23,008 thousand) is included in “Other
current liabilities” on its balance sheet as of March 31, 2022.

8. Inventories
Inventories as of March 31, 2022 and 2021 consisted of the following:
Millions of Yen
2022
2021
Merchandise and finished goods
Work in process
Raw materials and supplies¥ 59,932
40,11664,067¥ 164,116

27¥ 38,210
34,512
48,114¥ 120,837

Thousands of
U.S. dollars
2022$ 491,246
328,820
525,139$ 1,345,213

The amounts of inventories for normal sales that were written down due to a decrease ofprofitability are ¥373 million ($3,391 thousand), and ¥1,246 million for the years ended
March 31, 2022 and 2021, respectively, and are charged to cost of sales.

9. Investments and Long-term Loans
Investments and long-term loans as of March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars
2022

Millions of Yen
2022
2021
Non-consolidated subsidiaries
and affiliates
Others¥ 89,981
33,949¥ 123,930¥ 77,204
36,340¥ 113,544$ 737,549
278,270$ 1,015,820

10. Short-term Debt, Commercial paper, Bonds and Long-term Debt
Short-term debt, commercial paper, long-term debt and bonds as of March 31, 2022 and 2021
consisted of the following:Thousands of
U.S. dollars
2022

Millions of Yen
2022
2021
Short-term loans, principally from banks,
the weighted average effective interest
rate 1.6%
Commercial paper, the weighted average
effective interest rate 0.0%
0.43% unsecured bonds due 2026
0.53% unsecured bonds due 2027
0.44% unsecured bonds due 2029
0.30% unsecured bonds due 2031
Unsecured Loans, principally from banks,
due from 2023 to 2030, the weighted
average effective interest rate 0.7%
Less: portion due within one year

¥ 102,820¥ 78,149$ 842,787

54,00010,00010,00010,00010,00030,00010,00010,00010,000-442,623
81,967
81,967
81,967
81,967145,299
342,119(168,999)¥ 173,120

152,467
290,616(133,522)¥ 157,094

1,190,975
2,804,254(1,385,238)$ 1,419,016

As of March 31, 2022, the following assets were pledged as collateral for short-term debt of¥144 million ($1,180 thousand):Millions of Yen
2022
¥ 366

Property, plant and equipment
28

Thousands of
U.S. dollars
2022$ 3,000As of March 31, 2021, the following assets were pledged as collateral for short-term debt of¥127 million:

Property, plant and equipment

Millions of Yen
2021
¥ 362

The aggregate annual maturities of the non-current portion of long-term debt and bonds asof March 31, 2022 were as follows:Year ending March 31
2024
2025
2026
2027
2028 and thereafter

Millions of Yen¥ 28,240
21,15828,72127,00068,000¥ 173,120

Thousands of
U.S. dollars$ 231,475
173,426
235,418
221,311557,377$ 1,419,016

11. Severance and Retirement Plansa) Overview
The Company and its consolidated subsidiaries have funded and/or unfunded defined benefit
pension plans and/or defined contribution plans. The defined benefit plans consist of
Employees’ Pension Fund Plan, defined benefit corporation pension plan and lump-sum
severance indemnity plan.
There are cases where additional retirement benefits are paid at the time of retirement of
employees. The Company has established an employees’ retirement benefit trust and certain
consolidated subsidiaries have joined multi-employer employees’ pension fund.
The plans, which are not possible to reasonably compute the amounts of plan assets
corresponding to their own contribution amounts, are accounted for in the same way as thedefined contribution plan.
Liability for retirement benefits and net periodic benefit costs are, however, calculated by thesimplified method under the defined benefit corporation pension plans and the lump-sum
severance indemnity plans set up by a part of consolidated subsidiaries.
On the defined-benefit pension plans and lump-sum payment plans of certain consolidated
subsidiaries, liabilities for retirement benefits and retirement benefit expenses are calculated
by using the simplified method.
b) Defined benefit plans29(1) The changes in defined benefit obligation for the years ended March 31, 2022 and 2021
were as follows:
Millions of Yen
2022
2021
¥ 104,922¥ 105,230
4,067
4,007
970
1,008
(1,122)
1,056(6,959)(6,341)

Balance at beginning of year
Current service cost
Interest cost
Actuarial gains and losses
Benefits paid
Net effect resulting from businesscombinations
Foreign currency transaction
adjustments
Balance at end of year

Thousands of
U.S. dollars
2022$ 860,016
33,336
7,951(9,197)(57,041)

-

(442)

-

1,823
¥ 103,702

403¥ 104,922

14,943$ 850,016(2) The changes in plan assets for the years ended March 31, 2022 and 2021 excluding
pension plans applying the simplified method, were as follows:
Millions of Yen
2022
2021
¥ 68,943¥ 59,373
1,782
1,611
(572)
10,061
1,286
1,327(3,322)(3,789)Balance at beginning of year
Expected return on plan assets
Actuarial gains and losses
Contributions from the Company
Benefits paid
Foreign currency transaction
adjustments
Balance at end of year

1,462
¥ 69,580

358¥ 68,943

Thousands of
U.S. dollars
2022$ 565,107
14,607(4,689)10,541(27,230)
11,984$ 570,328(3) The changes in net liability for retirement benefits using a simplified method for theyears ended March 31, 2022 and 2021, were as follows:
Millions of Yen
2022
2021
¥ 1,675¥ 1,704
628
389
(360)
(318)
(202)
(220)

Balance at beginning of year
Retirement benefit expenses
Benefits paid
Contributions to fundNet effect resulting in change inscope of consolidation
Net effect resulting from businesscombinations
Balance at end of year

30

Thousands of
U.S. dollars
2022$ 13,730
5,148(2,951)(1,656)(184)-(1,508)¥ 1,556120¥ 1,675$ 12,754

(4) Reconciliation between the liabilities recorded in the consolidated balance sheet andthe balances of defined benefit obligation and plan assets as of March 31, 2022 and 2021,
were as follows:

Funded defined benefit obligation
Plan assets
Unfunded defined benefit obligation
Net liability for defined benefit
obligation
Liability for retirement benefits
Asset for retirement benefits
Net liability for defined benefit
obligation

Millions of Yen
2022
2021
¥ 98,046¥ 99,706(73,857)(73,176)
24,18926,530
11,48911,124

Thousands of
U.S. dollars
2022$ 803,656(605,385)
198,270
94,17235,67837,654292,443

43,806(8,127)44,514(6,859)359,066(66,615)¥ 35,678¥ 37,654$ 292,443

Note: The above items include the part used a simplified method.

(5) The components of retirement benefit expenses for the years ended March 31, 2022 and
2021, were as follows:
Thousands ofMillions of Yen
U.S. dollars
2022
2021
2022
Service cost
¥ 4,067¥ 4,007$ 33,336Interest cost
970
1,008
7,951
Expected return on plan assets(1,782)(1,611)(14,607)
Amortization of actuarial gains andlosses
496
1,456
4,066
Amortization of prior service cost
21
59
172
Retirement benefit expenses
calculated on a simplified method
628
389
5,148
Total retirement benefit expenses¥ 4,401¥ 5,310$ 36,074(6) The components of adjustments for retirement benefits in other comprehensive income(before tax effects) for the years ended March 31, 2022 and 2021, were as follows:
Millions of Yen
2022
2021
¥ 66
¥ 95
622
10,478

Prior service cost
Actuarial gains and losses
Total

¥ 689

¥ 10,573

Thousands of
U.S. dollars
2022
$ 541
5,098
$ 5,648(7) The components of adjustments for retirement benefits in accumulated othercomprehensive income (before tax effects) for the years ended March 31, 2022 and 2021,
were as follows:31

Unrecognized prior service cost
Unrecognized actuarial gains
losses
Total

Millions of Yen
2022
2021
¥ (120)¥ (54)

Thousands of
U.S. dollars2022$ (984)

and
3,692

4,315

30,262¥ 3,571¥ 4,260$ 29,270(8) Plan assets as of March 31, 2022 and 2021
(i) Components of plan assets
Plan assets consisted of the followings:
Equity investments
Debt investments
Assets in a life-insurer's general accountCash and deposits
Others
Total

2022
36%
30%
18%
3%
13%
100%

2021
41%
22%
18%
2%
16%
100%

Note: The above plan assets included 17% and 16% of assets held by the retirement benefit
trust set up for the retirement benefit plan as of March 31, 2022 and 2021, respectively.

(ii) Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term
rates of return, which are expected currently and in the future from the various
components of the plan assets.
(9) Assumptions used for the years ended March 31, 2022 and 2021 were set forth asfollows:
Discount rate
Expected rate of return on plan assets

2022
0.4-6.9%
1.0-5.0%2021
0.3-6.8%
1.0-5.0%b) Defined contribution plans
Required contributions for defined contribution plans for the years ended March 31, 2022
and 2021 were ¥500 million ($4,098 thousand) and ¥522 million, respectively.
c) The multi-employer plan which contributions necessary is treated as net periodic pension
costs is as follows:(1) The funded status of the multi-employer plan as of March 31, 2022 and 2021, was asfollows:
Thousands ofMillions of Yen
U.S. dollars
2022
2021
2022
32

Plan assets
Sum of actuarial liabilities of pension
plan and minimum actuarial reserve
Net balance¥ 85,944¥ 74,174$ 704,459

90,34591,645740,533¥ (4,401)¥ (17,471)$ (36,074)(2) The contribution ratio of the Group in the multi-employer plan for the years ended
March 31, 2022 and 2021, was as follows:
2022
2021
The contribution ratio of the Group in the
0.7%
0.7%
multi-employer plan

(3) Supplementary explanation
The above net balance resulted mainly from past service cost under the plan in pension
actuarial valuation and special reserve.
The ratios above do not represent the actual actuarial liability ratio of the Group.

12. Shareholders’ Equitya) Overview
Japanese companies are subject to the Companies Act of Japan (the "Companies Act").
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders' meeting. Additionally,for companies that meet certain criteria including (i) having a Board of Directors, (ii) having
independent auditors, (iii) having an Audit & Supervisory Board, and (iv) the term of serviceof the directors being prescribed as one year rather than the normal two-year term by its
articles of incorporation, the Board of Directors may declare dividends (except for dividendsin-kind) at any time during the fiscal year if the company has prescribed so in its articles ofincorporation.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of
Directors if the articles of incorporation of the company so stipulate. The Companies Act
provides certain limitations on the amounts available for dividends or the purchase oftreasury stock. The limitation is defined as the amount available for distribution to theshareholders, but the amount of net assets after dividends must be maintained at no lessthan ¥3 million.
The Companies Act also provides for companies to purchase treasury stock and dispose ofsuch treasury stock by resolution of the Board of Directors. The amount of treasury stock
purchased cannot exceed the amount available for distribution to the shareholders which isdetermined by a specific formula.
b) Dividends
Dividends whose record date is attributable to the year ended March 31, 2021 but to beeffective in the following year.

33

(1) Dividend payment
Approvals by shareholders’ meeting held on June 24, 2021 are as follows:
Type of shares
Common stock
Total amount of dividends¥4,237 million
Funds for dividends
Retained earnings
Dividends per share¥60.00Record date
March 31, 2021
Effective dateJune 25, 2021
Note: Total amount of dividend payments include dividends of ¥5 million paid for the Company’s
shares held in BBT.

(2) Dividends whose record date is attributable to the year ended March 31, 2022 but to beeffective in the following year.
Approvals by shareholders’ meeting held on June 23, 2022 are as follows:
Type of shares
Common stock
Total amount of dividends¥4,237 million ($ 34,730 thousand)Funds for dividends
Retained earnings
Dividends per share¥60.00 ($0.49)
Record date
March 31, 2022
Effective dateJune 24, 2022
Note: Total amount of dividend payments include dividends of ¥12 million ($98 thousand) paid
for the Company’s shares held in BBT.

13. Contingent Liabilities(1) Contingent liabilities as of March 31, 2022 and 2021 are as follows:
Millions of Yen
2022
2021
Loans guaranteed (principally for
non-consolidated subsidiaries andaffiliates)
Repurchase obligation of the
securitization of receivables
Total

Thousands of
U.S. dollars
2022¥ 5,977¥ 5,332$ 48,992

4,729

4,863

38,762¥ 10,706¥ 10,195$ 87,754(2) Other
The Company and its related companies are now negotiating compensations for damage
with a part of automobile manufacturers in connection with the violation of theCompetition Act by automobile wire harness cartels.

14. Selling, General and Administrative Expenses
The components of selling, general and administrative expenses for the years ended March
31, 2022 and 2021 were as follows:34

Freightage and packing expenses ¥Sales commissions
Salaries and wages
Retirement benefit expenses
Depreciation
Research and development costs
Other
Total

¥

Millions of Yen
2022
2021
21,050 ¥18,113
1,582
1,965
46,433
43,597
1,829
1,950
3,771
4,300
17,213
16,33834,61834,618127,263¥

120,881

Thousands of
U.S. dollars
2022$
172,541
12,967
380,598
14,99230,910141,090283,754$

1,043,139

Research and development costs charged to“Selling, general and administrative expenses”
and manufacturing costs for the years ended March 31, 2022 and 2021 amounted to ¥20,761
million ($170,172 thousand) and ¥20,217 million, respectively.

15. Leases
The minimum rental commitments under noncancelable operating leases for the years ended
March 31, 2022 and 2021 were as follows:
Thousands ofMillions of Yen
U.S. dollars
2022
2021
2022
Due within one year¥
2,322 ¥
749 $
19,033Due after one year
10,985
2,063
90,041
Total¥

13,308

¥

2,812

$

109,082

16. Impairment Loss
(For the year ended March 31, 2022)
The Group has recognized impairment loss of the following asset groups in this fiscal year.
The Group classifies fixed assets into groups by company, business or business unit, eachof which is deemed to generate independent cash flows, and idle properties into individual
independent groups.
Impairment loss by type of assets for the year ended March 31, 2022 consisted of thefollowing:
Location
Voronezh,RussiaUsage
Fixed assets forbusiness use in the“Infrastructure”
segment

Type of asset
Buildings
Machinery andequipment
Others
Total

35

Millionsof Yen¥ 417

Thousands of
U.S. dollars$ 3,418

189

1,549

66
673

541
5,516

Haryana,
India

Fixed assets for otheruse in the “Electronics& Automotive
Systems” and othersegments

Goodwill

471

3,861

Jiangsu
Province,
China

Fixed assets forbusiness use in the“Infrastructure”
segment

Buildings

204

1,672

Other

Fixed assets forbusiness use in the“Infrastructure”
segment

Buildings,
Machineryand equipment,
and others¥ 139$ 1,139

Voronezh, Russia
The carrying amount of the asset was reduced to its recoverable amount due to a significant
deterioration in the business environment, resulting in a decline in profitability anduncertainty about the prospects for future recovery.
Haryana, India
The unamortized balance of goodwill incurred at the time of acquisition of the subsidiary
was recorded as an impairment loss due to the decline in collectability to generate theanticipated earnings.
Jiangsu Province, China
Its recoverable amounts were less than their carrying amounts due to continuing negative
cash flow generated from operating activities and the likelihood of the carrying amounts
not being recoverable by future cash flows. Accordingly, the carrying amounts of such
assets were reduced to the recoverable amounts.
The recoverable amounts of the asset groups were mainly evaluated based on the appraisal
value.
(For the year ended March 31, 2021)
The Group has recognized impairment loss of the following asset groups in this fiscal year.
The Group classifies property, plant and equipment into groups by company, business orbusiness unit, each of which is deemed to generate independent cash flows, and idle
properties into individual independent groups.
Impairment loss by type of assets for the year ended March 31, 2021 consisted of thefollowing:
Location
Nikko-city,
Tochigi
prefecture

Usage
Fixed assets forbusiness use in the“Functional
products” segment

Type of asset
Buildings
Machinery andequipment
Land
Others
Total

36

Millionsof Yen
¥ 24
644
248
71
988

Jiangsu
Province, China

Fixed assets forbusiness use in the“Infrastructure”
segment

Hiratsuka-city,
Kanagawa
prefecture

Fixed assets forbusiness use in the“Infrastructure”
segment

Other

Fixed assets forbusiness use in the“Electronics &Automotive
Systems” and othersegments

Buildings
Machinery andequipment
Others
Total

488

Buildings

60

Machinery andequipment
Others
Total

152
28
668
288
70
417

Buildings,
Machineryand equipment,
and others¥ 467

It has been decided that recoverable amounts of fixed assets for business use in Tochigi
prefecture, Jiangsu Province, and Kanagawa prefecture, were less than their carrying
amounts due to continuing negative cash flow generated from operating activities and thelikelihood of the carrying amount not being recoverable by future cash flows. Accordingly,
the carrying amounts of such assets were reduced to the recoverable amounts.
The recoverable amounts of the asset groups were mainly evaluated based on the appraisal
value.

17. Other income (expenses):a) Gain on disposal of property, plant and equipment(For the year ended March 31, 2022)
Gain on disposal of property, plant and equipment resulted primarily from the sale ofdormitories and company owned houses at the Company.
(For the year ended March 31, 2021)
The Company transferred the business related to the development, manufacture and salesof copper tubes, copper tube components and copper plates, and all of the outstanding
shares issued by Okumura Metals Co., Ltd. (hereinafter “Okumura Metals”), the whollyowned subsidiary of the Company to Daishin P&T Co., Ltd. established by the Company
through an absorption-type company split on April 1,2020, and transferred all of theoutstanding shares issued by Daishin P&T Co., Ltd. and the Company’s equity share in
the consolidated subsidiary Furukawa Metal (Thailand) Public Co., Ltd. to CTJ Holdings
2 LLC, which is SPC and indirectly capitalized by Japan Industry No. 5 Investment
Limited Partnership managed by Japan Industrial Partners, Inc. on June 1, 2020.
The Company recognized “Gain on disposal of property, plant and equipment” by the asset
transfer which is subject to the execution condition of the business transfer.
The land has been leased back from the third party for up to 3 years and 9 months after
the sale and has been subleased to CTJ Holdings 2 LLC.
Overview of the Land37

Address: 7-6 and other, Doicho, Amagasaki City, Hyogo Prefecture
Registration area: 162,739.87 square meter
Applications: Factory
Gain on disposal of property, plant and equipment: ¥22,078 million
The effective date of the transfer: June 30, 2020
Note: The transfer price and book value will not be disclosed due to the intention of thetransferee.

b) Loss on disposal of property, plant and equipment(For the year ended March 31, 2022)
Loss on disposal of property, plant and equipment consisted of machinery and equipment,
and vehicles of ¥322 million ($2,639 thousand), and building of ¥103 million ($844
thousand).
(For the year ended March 31, 2021)
Loss on disposal of property, plant and equipment consisted of land of ¥452 million andmachinery and equipment, and vehicles of ¥234 millionc) Insurance Income
Insurance income in the previous fiscal year and this fiscal year is mainly the insuranceincome for the fire accident in its consolidated subsidiary, Furukawa Circuit Foil Taiwan
Corporation on June 18, 2019.
d) Reimbursement of social contributions for the past year
Furukawa Electric LatAm S.A., a consolidated subsidiary in Brazil, was in dispute for arefund of social contributions owed by a company in Brazil. As a result of a court ruling on
the tax base amount, a refund of the overpaid social contributions and the amountequivalent to the interest was recorded as income in this fiscal year.
e) Restructuring costs
Restructuring costs are mainly special severance payments and other payments associatedwith personnel rationalization implemented at overseas consolidated subsidiaries as partof business restructuring mainly in the Information Technology & Telecommunication
Solutions business and loss on write-down of inventories due to withdrawal from some of
the Company’s businessesf) Loss on transfer of business
The loss in the previous year resulted from the transfer of all of the outstanding shares of
the wholly owned subsidiary, Daishin P&T Co., Ltd., and all of the direct equity interest
in Furukawa Metal (Thailand) Public. Co., Ltd., our consolidated subsidiary, on June 1,
2020.
The loss for this year were recorded based on the final transfer price determined.
g) Loss on Covid-19
Some fixed costs incurred in the previous fiscal year and this fiscal year, at the Group's
overseas consolidated subsidiaries for the period when some production plants were shut

38

down based on direct orders from the governments of various countries to prevent the
spread of the new coronavirus were recorded.

18. Income Taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries consistof corporation tax, inhabitants’ tax and enterprise tax, which in the aggregate would resultin a statutory income tax rate of approximately 30.6% for the years ended March 31, 2022
and 2021. Overseas consolidated subsidiaries are subject to income taxes in the countries inwhich they operate.
Summarized below is a reconciliation of the statutory income tax rate and the effective
income tax rate for the years ended March 31, 2022 and 2021:

Japanese statutory income tax rate
Entertainment expense and other
Equity in income (loss) of non-consolidated
subsidiaries and affiliates
Research and development cost
Valuation allowance
Difference of applicable tax rate of overseas
consolidated subsidiaries
Amortization of goodwill
Undistributed earnings of subsidiaries andaffiliates
Unrecognized tax effects related to unrealized
gain (loss)
Expiration of net operating loss carryforwards
Other, net
Effective income tax rate

2022
30.6%
2.5

2021
30.6%
3.6

(15.8)
(0.6)
9.4

1.0
(2.8)
10.0

(6.1)
0.7

(3.3)
0.8

8.4

2.6

1.9
3.5
0.6
35.2%

(0.1)
0.2
0.4
43.2%

Note: To reflect the change in the quantitative materiality, " Unrecognized tax effects related tounrealized gain (loss)" and “Expiration of net operating loss carryforwards“ are presented
independently as these were included in "Other, net" in the previous consolidated fiscal
year.

Certain reclassifications have been made in the 2021 financial statements to conform to theclassifications used in 2022.
Deferred tax assets (liabilities) as of March 31, 2022 and 2021 consisted of the following:Thousands ofMillions of Yen
U.S. dollars
2022
2021
2022
Liability for retirement benefits¥ 15,719¥ 15,798$ 128,844
Provision for environmental costs
2,926
3,132
23,984
Loss carryforwards
47,01245,372
385,344
Accrued bonus
3,173
3,091
26,008Depreciation
2,956
1,226
24,230
Provision for product defect compensation
888
1,095
7,279

39

Impairment loss
Loss on write-down of inventories
Unrealized loss on available-for-salesecurities
Other
Gross deferred tax assets
Less valuation allowance for loss
carryforwards
Less valuation allowance for total of
future deductible temporary differences,etc.
Valuation allowance
Total deferred tax assets
Unrealized gain on available-for-salesecurities
Undistributed earnings of subsidiaries
and affiliates
Revaluation difference on landDeferred gain on derivatives under hedge
accounting
Other
Total deferred tax liabilities
Net deferred tax assets

8,010
1,103

7,368
1,320

65,656
9,041

1,223
13,15496,1701,469
12,44792,325

10,025
107,820
788,279(41,319)(40,807)(338,680)(26,117)(67,436)
28,734(23,630)(64,438)
27,887(214,074)(552,754)
235,525(5,464)(6,305)(44,787)(10,776)(708)(9,218)(708)(88,328)(5,803)(1,413)(5,034)(23,397)¥5,336(1,447)(4,646)(22,326)¥5,560(11,582)(41,262)(191,779)$ 43,738(For the year ended March 31, 2022)
The expiration of loss carryforwards, the related valuation allowances and the resulting net
deferred tax assets as of March 31, 2022 was as follows:
Millions of Yen

March 31, 2022
Deferred tax assets
relating to loss
carryforwards (*1)
Less valuation
allowances for loss
carryforwards
Net deferred tax
assets relating to loss
carryforwards (*2)

March 31, 2022

1 Yearor LessAfter
1 Yearthrough
2 YearsAfter
2 Years
through
3 YearsAfter
3 Years
through
4 Years

After
4 Years
through
5 Years

After
5 Years

Total¥ 1,576¥ 5,837¥ 5,890¥ 5,305¥ 633¥ 27,768¥ 47,012(874)(3,997)(5,011)(3,986)(377)(27,074)(41,319)¥ 702¥ 1,839¥ 879¥ 1,319

¥ 256

¥ 694

¥ 5,693

1 Yearor LessAfter
1 Yearthrough
2 YearsAfter
2 Years
through
3 Years

Thousands of U.S. dollars

40

After
3 Years
through
4 Years

After
4 Years
through
5 Years

After
5 Years

Total

Deferred tax assets
relating to loss
carryforwards (*1)
Less valuation
allowances for loss
carryforwards
Net deferred tax
assets relating to loss
carryforwards (*2)

$ 12,918$ 47,844$ 48,279$ 43,484$ 5,189$ 227,607$ 385,344(7,164)(32,762)(41,074)(32,672)(3,090)(221,918)(338,680)$ 5,754 $ 15,074$ 7,205 $ 10,811$ 2,098$ 5,689$ 46,664
Note(*1): Deferred tax assets relating to loss carryforwards are calculated using the effective
income tax rate.
Note(*2): In terms of deferred tax assets relating to loss carryforwards of ¥47,012 million($385,344 thousand), net deferred tax assets relating to loss carryforwards of ¥5,693
million ($46,664 thousand) were recognized. No valuation allowance was recognized ona recoverable part of it, based on the estimated future taxable income. The estimatesand assumptions used in determining future taxable income is consistent with thosedescribed in 3.Significant Accounting Estimates.

(For the year ended March 31, 2021)
The expiration of loss carryforwards, the related valuation allowances and the resulting net
deferred tax assets as of March 31, 2021 was as follows:
Millions of Yen

March 31, 2021
Deferred tax assets
relating to loss
carryforwards (*1)
Less valuation
allowances for loss
carryforwards
Net deferred tax
assets relating to loss
carryforwards (*2)

1 Yearor LessAfter
1 Yearthrough
2 YearsAfter
2 Years
through
3 YearsAfter
3 Years
through
4 Years

After
4 Years
through
5 Years¥ 1,662¥ 989¥ 6,866¥ 6,442¥ 4,816 ¥ 24,595 ¥ 45,372(1,224)(823)(5,716)(5,385)(3,647)After
5 Years(24,009)

Total(40,807)

¥ 438
¥ 165
¥ 1,149¥ 1,056¥ 1,168¥ 585¥ 4,564
Note (*1): Deferred tax assets relating to loss carryforwards are calculated using the effective
income tax rate.
Note (*2): In terms of deferred tax assets relating to loss carryforwards of ¥45,372 million, netdeferred tax assets relating to loss carryforwards of ¥4,564 million were recognized. No
valuation allowance was recognized on a recoverable part of it, based on the estimatedfuture taxable income.

19. Revenuea) Disaggregation of Revenue
Revenues from contracts with customers on a disaggregated basis for the year ended March
31, 2022, were as follows:41

Infrastructure
EnergyCommunications
infrastruct- Subtotal
Solutionsure
Revenues fromcontracts with customers
Other revenue(*)
Total¥189,062
44¥189,106¥104,666¥104,666¥293,729
44¥293,773

Millions of Yen
Electronics & Automotive Systems
Automotive Electronics
Products & Component
Batteries
Materials¥254,422
408¥254,831¥234,018¥234,018

Subtotal¥488,441
408¥488,849

Functional
products

ServiceandDevelopment, etc.

¥123,697
17¥123,715¥23,905
252¥24,157

Total¥929,773
722¥930,496

Thousands of U.S. dollars

Revenues fromcontracts with customers
Other revenue(*)
Total

Infrastructure
EnergyCommunications
infrastruct- Subtotal
SolutionsureElectronics & Automotive Systems
Automotive Electronics
Products & Component
Batteries Materials$1,549,689
361$1,550,049$$2,085,426
3,344$2,088,779$857,918$857,918$2,407,615
361$2,407,975$1,918,180$1,918,180

Subtotal

Functional
products

Service andDevelopment, etc.

$4,003,615
3,344$4,006,959$1,013,910
139$1,014,057$195,943
2,066$198,008

Total$7,621,090
5,918$7,627,016

Note(*): Rent income of real estateb) Basic Information to Understand Revenues from Contracts with Customers
Notes are omitted because the same information is presented in “2.Significant Accounting
Policies j) Revenue recognition” above.
c) Contract Balances
Information about the relationship between the satisfaction of performance obligations
under contracts with customers and cash flows arising from such contracts, and theamount and timing of revenue expected to be recognized in subsequent periods fromcontracts with customers that existed at the end of this fiscal year are follows.
(1) Receivables from contract with customers, contract assets and contract liabilities at the
beginning and end of the year
(For the year ended March 31, 2022)

2022

Thousands
ofU.S. dollars
2022¥ 187,580$ 1,537,541

223,520

1,832,131

4,759

39,008

6,797

55,7132,290

18,770¥ 2,807$ 23,008

Millions ofYen
Receivables from contract withcustomers at the beginning of the year
Receivables from contract withcustomers at the end of the year
Contract assets at the beginning of theyear
Contract assets at the end of the year
Contract liabilities at the beginning of
the yearContract liabilities at the end of the
year

42

“Contract assets“ is a right to the consideration in exchange for performance obligations
satisfied, which are calculated by degree of progress, as of the end of the reporting period
in connection mainly with construction contracts, excluding receivables. “Contract
assets“ is reclassified to receivables at the time when the right to considerations of theCompany and its consolidated subsidiaries become unconditional only with the passage oftime.
“Contract liabilities“ is the portion of a liability for which consideration has been received
from customers but performance obligations have not been satisfied. It increases when
consideration is received from customer before transferring goods or services to customer
under contracts with customer, such as construction contracts, and decreases when theperformance obligations are satisfied.
The amount of revenue recognized in the current fiscal year that was included in thecontract liability balance at the beginning of the period was ¥2,105 million ($17,254
thousand).
The main reason for the increase in contract assets in the current fiscal year was due tothe recognition of revenue under construction contracts.
There were no material changes in contractual liabilities during the current fiscal year.
The amount of revenue recognized in the current fiscal year resulting from performanceobligations satisfied in prior periods was ¥612 million ($5,016 thousand).
(2) Transaction amount allocated to remaining performance obligations
The total transaction amount allocated to performance obligations that have not beensatisfied as of the end of this fiscal year was ¥38,402 million ($314,770 thousand), whichis expected to be recognized as revenue generally within 11 years.
The contracts that have original expected duration of one year or less are not included in
the scope of the note, applying the simplified method.

20. Other Comprehensive Income (Loss）(For the year ended March 31, 2022)(1) The following table presents components of recycled amounts of other comprehensive
income (loss) for the year ended March 31, 2022:
Millions of Yen
Unrealized gain (loss) on available-for-salesecurities
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Deferred gain (loss) on derivatives underhedge accounting
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
43¥ (942)(1,739)6,015(11)(2,682)

Adjustments for amounts transferred toassets’ acquisition costs
Foreign currency translation adjustments
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for retirement benefits
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Subtotal before tax effects
Tax effects
Total(6,285)(281)

10,876-

10,876

231
457

689

5,196
(131)

5,065
13,667854¥ 14,521

Thousands of U.S. dollars
Unrealized gain (loss) on available-for-salesecurities
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Deferred gain (loss) on derivatives underhedge accounting
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for amounts transferred toassets’ acquisition costs
Foreign currency translation adjustments
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for retirement benefits
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Subtotal before tax effects
Tax effects
Total

44

$ (7,721)(14,254)$ (21,984)

49,303(90)(51,516)(2,303)89,148-89,148

1,893
3,746

5,648

42,590(1,074)41,516
112,025
7,000$ 119,025

(2) Deferred tax of other comprehensive income (loss) for the year ended March 31, 2022:
Millions of Yen
Tax
Before-tax
Net-of-tax(expense)amounts
amounts
Benefits
Unrealized gain (loss) on available-for-salesecurities¥ (2,682)¥ 828¥ (1,853)
Deferred gain (loss) on derivatives under hedge
accounting
(281)
75
(205)
Adjustments for retirement benefits
10,876
10,876
Foreign currency translation adjustments
689
(50)
638
Share of other comprehensive income ofaffiliates accounted for by the equity method
5,065
5,065
Total
¥ 13,667¥ 854¥ 14,521
Thousands of U.S. dollars
Tax
Before-tax
Net-of-tax
benefits
amounts
amounts(expense)
Unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedge
accounting
Adjustments for retirement benefits
Foreign currency translation adjustments
Share of other comprehensive income ofaffiliates accounted for by the equity method
Total$ (21,984)$ 6,787$ (15,189)(2,303)89,148
5,648

615
(410)

(1,680)89,1485,230

41,516$ 112,025$ 7,000

41,516$ 119,025(For the year ended March 31, 2021)(1) The following table presents components of recycled amounts of other comprehensive
income (loss) for the year ended March 31, 2021:
Millions of Yen
Unrealized gain (loss) on available-for-salesecurities
Amount arising during the year
¥ 12,488
Reclassification adjustments for gains andlosses included in profit(8,417)
4,070
Deferred gain (loss) on derivatives underhedge accounting
Amount arising during the year
8,243
Reclassification adjustments for gains andlosses included in profit(66)
Adjustments for amounts transferred toassets’ acquisition costs(2,072)
6,103
Foreign currency translation adjustments
Amount arising during the year
(1,885)
Reclassification adjustments for gains andlosses included in profit
2,130
244
45

Adjustments for retirement benefits
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Subtotal before tax effects
Tax effects
Total

9,033
1,539

10,573249
45

294
21,287(5,442)¥ 15,844(2) Deferred tax of other comprehensive income (loss) for the year ended March 31, 2021:
Millions of Yen
Tax
Before-tax
Net-of-tax(expense)amounts
amounts
Benefits
Unrealized gain (loss) on available-for-salesecurities¥ 4,070¥ (1,125)¥ 2,945
Deferred gain (loss) on derivatives under hedge
accounting
6,103(1,868)4,235
Adjustments for retirement benefits
244
244
Foreign currency translation adjustments
10,573(2,448)
8,124
Share of other comprehensive income ofaffiliates accounted for by the equity method
294
294
Total ¥ 21,287¥ (5,442) ¥ 15,844

21. Amount Per ShareYen
Profit attributable to owners ofparent per share:
Basic
Diluted

2022

2021

¥ 143.40¥ -¥ 141.88¥ -Yen
Net assets per share

2022

2021

¥ 3,967.08¥ 3,686.36

U.S. dollars
2022$ 1.18$ U.S. dollars
2022$ 32.52

Basic profit attributable to owners of parent per common stock (the “Basic profit per share”)
is calculated by dividing profit attributable to owners of parent by the weighted average
number of shares of common stock outstanding during the respective years (the “Weighted
average number of shares”), adjusted for treasury stock held.

46

Diluted profit attributable to owners of parent per common stock has not been presented forthe years ended March 31, 2022 and 2021, since the Company has issued no dilutive potential
shares.
Net assets per share are computed based on the net assets excluding non-controlling interests,
and the number of shares of common stock outstanding at the year end.
The Company’s shares held in Board Benefit Trust (See in Note 2s), which are treated astreasury stock, are deducted from the number of shares at the end of the fiscal year, used in
the calculation of the net asset per share, and also deducted from the weighted average
number of shares used in the calculation of basic profit per share.
The number of shares of the above treasury stock deducted as of March 31, 2022 and 2021
are 215,500 and 104,900 shares, respectively. The weighted average number of shares of theabove treasury stock deducted during the fiscal year ended March 31, 2022 and 2021 are
208,383 and 107,050 shares, respectively.
The bases for “Amount Per Share” calculation are as follows:(1) Basic profit attributable to owners of parent per share
Thousands of shares
2022
2021
Weighted average number of shares of common stockduring the fiscal year

70,391Thousands of
U.S. dollars
2022

Millions of Yen
2022
2021
Profit attributable to owners ofparentProfit not attributable to owners ofparentProfit attributable to owners ofparent related to common stock

70,493¥ 10,093¥ 10,001$ 82,730---¥ 10,093¥ 10,001$ 82,730(2) Net assets per share
Thousands of shares
2022
2021
Number of shares of common stock at the end of the
fiscal year

Total net assets
Amounts deducted from total net
assets:Non-controlling interests
Net assets attributable to shares ofcommon stock

70,49570,384

Millions of Yen
2022
2021
¥ 314,062¥ 291,617

Thousands of
U.S. dollars
2022$ 2,574,279(34,843)(31,747)(285,598)¥ 279,219¥ 259,870$ 2,288,680

47

22. Financial Instruments and Related Disclosuresa) Conditions of Financial instruments(1) Policy for financial instruments
The fund management policy of the Group (the Company and its consolidated subsidiaries)
has been set up to put its operating funds in deposits or investments that are assured of
no impairment in the principal and the necessary fund is obtained through borrowings
from banks and other financial institutions and bond issuances.
Derivative transactions are not entered into for speculative purposes.
(2) Details of financial instruments and associated risks and risk management system
Trade notes and accounts receivable arising from operation are exposed to credit risk ofcustomers. The Group carries out the practice of keeping track of due dates andoutstanding balances of each customer under the credit management rules, as well as
monitoring major customers’ credit status on a regular basis in order to minimize credit
risk.
Marketable securities and investment securities are mainly equity securities and exposedto the risk of changes in market value. These securities are primarily the shares ofcompanies with which the Group has business relationship, and the fair value of thesesecurities are evaluated on a regular basis.
Trade notes and accounts payable arising from operations normally have payment termsof less than one year.
Short-term and long-term debt are mainly utilized for working capital and capital
investments. The interest rate risk of a certain portion of those loans payable is hedgedusing interest rate swaps as hedging instruments.
On derivative transactions, foreign exchange forward contracts are used for hedge of
foreign currency risk associated with receivables and payables arising from operations anddenominated in foreign currency, interest rate swaps are used for hedge of interest raterisk associated with loans payable, metal forward contracts are used for hedge of price riskof raw materials and work in process. Execution and management of derivativetransactions are subject to related internal rules.
In relation to accounting for hedge transactions, hedging instruments and hedged items,
hedging policy, and effectiveness of hedge transactions are set out in the Company’s
internal rules.
Although trade payable and short-term and long-term debt are exposed to liquidity risk,these payables are managed by such means as cash flow projections prepared in a timely
manner.
(3) Supplementary information on the fair value of financial instruments
The estimated fair values of financial instruments would not be fixed due to variety offactors and assumptions. In addition, the contractual amounts of the derivativetransactions set out in “b) Fair value of financial instruments” as below are not an indicatorof the market risk associated with derivative transactions.
b) Fair value of financial instruments48

(As of March 31, 2022)
Millions of Yen
Carrying
amountMarketable securities and investments
securities
Held-to-maturity debt securities
Available-for-sale securities
Unconsolidated subsidiaries
and affiliated companies
Total of assets
Bonds (including current portion)
Long-term debt
Total of liabilities
Derivative transactions
Derivative transactions for which
hedge accounting does not apply
Derivative transactions for which
hedge accounting apply
Total of derivative transactions

Fair value

Difference¥ 3,257
27,115¥ 3,257
27,115¥ -74,68065,118(9,561)

105,054(40,000)(133,120)

95,492(39,641)(132,332)(9,561)358
787(173,120)(171,974)

1,145(1,091)(1,091)

-

4,198

4,198

-

¥ 3,106¥ 3,106¥ -Thousands of U.S. dollars
Carrying
Fair value
Difference
amountMarketable securities and investments
securities
Held-to-maturity debt securities
Available-for-sale securities
Unconsolidated subsidiaries andaffiliated companies
Total of assets
Bonds (including current portion)
Long-term debt
Total of liabilities
Derivative transactions
Derivative transactions for which
hedge accounting does not apply
Derivative transactions for which
hedge accounting apply
Total of derivative transactions$ 26,697
222,254$ 26,697
222,254$ -612,131533,754(78,369)

861,098(327,869)(1,091,148)

782,721(324,926)(1,084,689)(78,369)
2,934
6,451

(1,419,016)(1,409,623)

9,385(8,943)(8,943)-34,41034,410-$ 25,459$ 25,459$ -(As of March 31, 2021)
Millions of Yen
Carrying
amountMarketable securities and investments
49

Fair value

Differencesecurities
Held-to-maturity debt securities
Available-for-sale securities
Unconsolidated subsidiaries andaffiliated companies
Total of assets
Bonds (including current portion)
Long-term debt
Total of liabilities¥ 2,923
29,923¥ 2,923
29,923¥ -60,072

54,736(5,336)92,920(30,000)(127,094)

87,583(29,772)(127,044)(5,336)228
50(157,094)(156,816)

278

(647)

(647)

-

4,461

4,461

-

¥ 3,814¥ 3,814¥ -Derivative transactions
Derivative transactions for which
hedge accounting does not apply
Derivative transactions for which
hedge accounting apply
Total of derivative transactions

Note: Carrying amount of investments in equity instruments that do not have aquoted market price in an active market
ThousandsofMillions of Yen
U.S. dollars
2022
2021
2022
Unlisted investment securities¥ 14,971¥ 11,712$ 122,713
Investments in capital¥ 6,082¥ 8,965$ 49,852

Maturity analysis for financial assets and securities with contractual maturities(As of March 31, 2022)
Within 1year¥ 62,160
223,535

Millions of Yen
Over 1
Over 5year to 5
year toyears
10 years¥ ¥ -Over 10years

Bank deposits
Trade receivable
Marketable securities andinvestments securities
Held-to-maturity debt securities:
1) Government bonds,
municipal bonds and other2) Other debt securities
Total

3,257
-

-

-

-

¥ 288,953

¥ -

¥ -

¥ -

Bank deposits

Thousands of U.S. dollars
Over 1
Over 5
Within 1
Over 10year to 5 year to 10
year
years
years
years
$ 509,508$ $ $ 50¥ -

Trade receivable
1,832,254
Marketable securities andinvestments securities
Held-to-maturity debt securities:
1) Government bonds,
municipal bonds and other
26,6972) Other debt securities
Total $ 2,368,467

-

-

-

$ -

$ -

$ -

(As of March 31, 2021)
Within 1
year
Bank deposits¥ 82,734
Trade receivable
191,930
Marketable securities andinvestments securities
Held-to-maturity debt securities:
1) Government bonds,
municipal bonds and other
2,9232) Other debt securities
Total ¥ 277,589

Millions of Yen
Over 1
Over 5year to 5 year to 10
years
years
¥ ¥ -

Over 10
years
¥ -

-

-

-

¥ -

¥ -

¥ -

The redemption schedule for long-term debt and other interest-bearing debt withmaturity date subsequent to the consolidated balance sheets date are described in“Note 10. Short-term Debt, Commercial paper, Bonds and Long-term Debt”.
c) Financial Instruments Categorized by Fair Value Hierarchy
The fair value of financial instruments is categorized into the following three levels,
depending on the observability and significance of the inputs used in making fairvalue measurements:
Level 1: Fair values measured by using quoted prices (unadjusted) in
active markets for identical assets or liabilities.
Level 2: Fair values measured by using inputs other than quoted prices
included within Level 1 that are observable for the assets or
liabilities, either directly or indirectly.
Level 3: Fair values measured by using unobservable inputs for the assets
or liabilities.
If multiple inputs are used that have a significant impact on the measurement of fairvalue, fair value is categorized at the lowest level in the fair value measurement
among the levels to which each of these inputs belongs.
(1) The financial assets and liabilities measured at the fair values in the consolidatedbalance sheet
51

Millions of Yen
Level 1

(As of March 31, 2022)
Marketable and investment securities:
Available-for-sale securities:
Equity securities
Derivative transactions:
Foreign currency forward contracts
Interest rate swaps
Total assets

Level 2

Level 3

Total

¥ 27,115¥-¥-¥ 27,115¥ 27,115

1,554
4,081
¥ 5,635

¥-

1,554
4,081
¥ 32,751

Derivative transactions:
Foreign currency forward contracts
Interest rate swaps¥-¥ (1,762)
(766)

¥-

¥ (1,762)(766)

Total liabilities¥-¥ (2,529)¥-¥ (2,529)

Thousands of U.S. dollars
Level 1

(As of March 31, 2022)
Marketable and investment securities:
Available-for-sale securities:
Equity securities
Derivative transactions:
Foreign currency forward contracts
Interest rate swaps
Total assets

Level 2

Level 3Total

$ 222,254$-$-$ 222,254-

12,73833,451-

12,73833,451$ 222,254$ 46,189$-$ 268,443

Derivative transactions:
Foreign currency forward contracts
Interest rate swaps$-$ (14,443)(6,279)$-$ (14,443)(6,279)Total liabilities$-$ (20,730)$-$ (20,730)(2) The financial assets and liabilities not measured at the fair values in the
consolidated balance sheet
Millions of Yen
Level 1

(As of March 31, 2022)
Marketable and investment securities:
Held-to-maturity securities:
Government and municipal bonds
Shares of unconsolidated
subsidiaries and affiliates
Total assets

Level 2

Level 3Total¥-

¥ 3,257¥-¥ 3,257

65,118¥ 65,118¥ 3,257¥-

65,118¥ 68,376

Unsecured bonds
Long-term debt¥-

¥ (39,641)(132,332)¥-¥ (39,641)(132,332)

Total liabilities¥-¥ (171,974)¥-¥ (171,974)

52

Thousands of U.S. dollars
Level 1

(As of March 31, 2022)
Marketable and investment securities:
Held-to-maturity securities:
Government and municipal bonds
Shares of unconsolidated
subsidiaries and affiliates
Total assets

Level 2

Level 3$-

$ 26,697$-

533,754$ 533,754$ 26,697

$-

Total

$ 26,697$

533,754
560,459

Unsecured bonds
Long-term debt

$ - $ (324,926)(1,084,689)$ - $ (324,926)(1,084,689)

Total liabilities$ - $ (1,409,623)$ - $ (1,409,623)

The following is a description of valuation methodologies and inputs used formeasurement of the fair value of assets and liabilities:
Marketable and Investment Securities
The fair values of listed equity securities are measured at the quoted market
prices. Since listed equity securities are traded in active markets, the fairvalues of listed equity securities are categorized as Level 1. As the quoted
market prices of municipal bonds and corporate bonds are not considered to bein active markets due to low market transactions, the fair values of municipal
bonds and corporate bonds are measured by using discounted present value
techniques considering observable inputs such as interest rates, andcategorized as Level 2.
Derivatives
The fair values of interest rate swaps, foreign currency forward contracts andforeign currency swaps and commodity forward contracts are measured byusing prices quoted by counterparty financial institutions and brokers, and are
categorized as Level 2.
Unsecured bonds
Bonds issued by the Company are measured by using discounted present value
techniques considering assumptions including expected future cash flows anddiscount rates taking into account maturity and credit risk, and are
categorized as Level 2.
Long-Term Debt
The fair values of long-term debt are measured by using discounted present
value techniques considering assumptions including expected future cash
flows and discount rates taking into account maturity and credit risk, and are
categorized as Level 2.

23. Additional Information on Derivatives

53a) Derivative transactions for which hedge accounting does not apply(1) Foreign currency related transactions
Millions of Yen
2022(As of March 31, 2022)

Portionover
1 yearNotional
AmountForeign currency
forward contracts:
Sell:
U.S.$
Yen
Euro
Taiwan Dollar
Indonesian Rupiah
Chinese Yuan (Note2)
Other
Buy
U.S.$
Taiwan Dollar
Other
Currency Swaps
Receiving Yen, paying
Philippine peso
Total

Unrealized
gain(loss)

8,104
1,455
3,837
4,735
2,853
1,298
1,708

¥ -

¥ (615)
16
(206)
(39)
(32)
(20)
(136)

¥ (615)
16
(206)
(39)
(32)
(20)
(136)

2,907
326

-

223
3

223
3

747
¥ 27,974¥-(86)¥ (892)(86)¥ (892)Thousands of U.S. dollars
2022(As of March 31, 2022)

Portionover
1 yearNotional
AmountForeign currency
forward contracts:
Sell:
U.S.$
Yen
Euro
Taiwan Dollar
Indonesian Rupiah
Chinese Yuan (Note2)
Other
Buy
U.S.$
Taiwan Dollar
Other
Currency Swaps
Receiving Yen, paying
Philippine peso
Total

Fair
value
(Note1)

Fair
value(Note1)

Unrealized
gain(loss)$ 66,426
11,926
31,451
38,811
23,385
10,63914,000$ -$ (5,041)
131(1,689)
(320)
(262)
(164)
(1,115)$ (5,041)
131(1,689)
(320)
(262)
(164)
(1,115)23,828
2,672

-

1,828
25

1,828
25

6,123
$ 229,295

$ -

(705)
$ (7,311)(705)$ (7,311)

54

Millions of Yen
2021(As of March 31, 2021)

Portionover
1 yearNotional
AmountForeign currency
forward contracts:
Sell:
U.S.$
Yen
Euro
Taiwan Dollar
Indonesian Rupiah
Chinese Yuan (Note2)
Other
Buy:
U.S.$
Taiwan Dollar
Other
Currency Swaps:
Receiving Yen, paying
Philippine peso
Total

Fair
value
(Note1)

Unrealized
gain(loss)¥ 8,670
1,271
3,238
6,819
2,013
1,202
1,171

¥ -

¥ (443)
15
(134)
(33)
19
(7)
(35)

¥ (443)
15
(134)
(33)
19
(7)
(35)

2,516
2,749
539

-

118
(29)
(1)

118
(29)
(1)

747
747
(83)
(83)
¥ 30,939¥ 747¥ (616)¥ (616)Note1: Fair value is determined by prices obtained from foreign exchange market.
Note2: To reflect the change in the quantitative materiality, "Chinese Yuan" is presented
independently in "Sell" as this was included in "Other" of "Sell" in the previous
consolidated fiscal year.

(2) Commodity related transactions(As of March 31, 2022)
Millions of Yen
2022
Portionover
1 yearNotional
Amount

Fair
value
(*)

Unrealized
gain(loss)

Market transaction:
Forward contracts:
Sell
Buy
Total

¥ 10,497
4,722¥ 15,219¥ ¥-¥ (309)109¥ (199)¥ (309)109¥ (199)Thousands of U.S. dollars
2022
Portionover
1 yearNotional
AmountMarket transaction:
55

Fair
value
(*)

Unrealized
gain(loss)

Forward contracts:
Sell
Buy
Total

$ 86,041
38,705$ 124,746$ (2,533)
893$ (1,631)$ $-$ (2,533)
893$ (1,631)(As of March 31, 2021)
Millions of Yen
2021
Portionover
1 yearNotional
Amount

Fair
value
(*)

Unrealized
gain(loss)

Market transaction:
Forward contracts:
Sell
Buy

¥ 7,807¥ ¥ (44)¥ (44)
4,080
13
13
Total
¥ 11,888¥¥ (31)¥ (31)
Note(*): Fair value is determined by prices obtained from commodity exchange market.

b) Derivative transactions for which hedge accounting apply(1) Foreign currency related transactions(As of March 31, 2022)
Millions of Yen
2022
Notional
AmountHedged item

Normal accounting method:
Foreign currency forward contracts:
Sell:
Trade Receivable
U.S.$(Forecast transactions)Euro

Trade Receivable

Other

Trade Receivable

Buy
U.S.$

Trade payableEuro

Trade payable

Taiwan Dollar

Trade payable

Other

Trade payable(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)

Portion over 1
year

Fair value(Note1)¥ 14,507¥ 1,718¥ (599)

267

2

(20)

819

-

(2)

23,507

881

1,140

172

-

23

6,863

-

140

¥ 76

¥-

¥2

Assignment accounting (special treatment for foreign exchange forward contracts)
Foreign currency forward contracts:
Sell:
U.S.$
¥ 7,211¥¥Trade Receivable
Other
362
Trade Receivable
Buy
56

U.S.$
Trade payable
Currency Swaps
Receiving U.S.$,
paying Yen
Long-term debt
Total

50

-

-

¥ 53,839¥ 2,601¥ 684

Thousands of U.S. dollars
2022
Notional
AmountHedged item

Normal accounting method:
Foreign currency forward contracts:
Sell:
Trade Receivable
U.S.$(Forecast transactions)Euro

Trade Receivable

Other

Trade Receivable

Buy
U.S.$

Trade payableEuro

Trade payable

Taiwan Dollar

Trade payable

Other

Trade payable(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)

Portion over 1
year

Fair value(Note1)$ 118,910$ 14,082$ (4,910)

2,189

16

(164)

6,713

-

(16)

192,680

7,221

9,344

1,410

-

189

56,254

-

1,148

$ 623

$-

$ 16

Assignment accounting (special treatment for foreign exchange forward contracts)
Foreign currency forward contracts:
Sell:$ 59,107
U.S.$$$Trade Receivable
2,967
Other
Trade Receivable
Buy
410
U.S.$
Trade payable
Currency Swaps
Receiving U.S.$,
paying Yen
Long-term debt
Total
$ 441,303$ 21,320$ 5,607(As of March 31, 2021)
Millions of Yen
2021
Notional
AmountHedged item

Normal accounting method:
Foreign currency forward contracts:
Sell:
Trade Receivable
U.S.$(Forecast transactions)Euro

Trade Receivable

Other

Trade Receivable(Forecast transactions)(Forecast transactions)57

Portion over 1
year

Fair value(Note1)¥ 10,113¥ 649¥ (351)

660

266

(22)

71

-

(0)

Buy
U.S.$

Trade payableEuro

Trade payable

Taiwan Dollar

Trade payable

Other

Trade payable(Forecast transactions)(Forecast transactions)(Forecast transactions)(Forecast transactions)

18,384

1,607

514

931

-

77

5,480

-

184

¥ 786

¥-

¥ (4)

Assignment accounting (special treatment for foreign exchange forward contracts)
Foreign currency forward contracts:
Sell:
U.S.$
¥ 3,424¥¥Trade Receivable
Other
59
Trade Receivable
Buy
U.S.$
368
Trade payable
Currency Swaps
Receiving U.S.$,
paying Yen
3,000
Long-term debt
Total
¥ 43,282¥ 2,523¥ 397
Note1: The fair value of foreign currency related transactions subject to Normal accounting
method is calculated based on forward exchange rates.
Note2: The fair value of foreign currency related transactions subject to assignment
accounting (special treatment for foreign exchange forward contract) is accounted
for together with the underlying trade receivable or trade payable subject to hedging.

(2) Interest-rate related transactions(As of March 31, 2022)
None(As of March 31, 2021)
Millions of Yen
2021
Notional
AmountHedged item

Portion over 1
year

Fair value(*)

Special treatment interest rate swap:

Interest rate swaps
Receiving floating
rates and paying
Long-term
fixed rates
debt
Total

¥ 10,500¥¥¥ 10,500¥¥Note (*) The fair value of interest rate swaps subject to special treatment embeds in longterm debt subject to hedging included in the fair value of the corresponding longterm debt.

(3) Commodity related transactions(As of March 31, 2022)
Millions of Yen
2022
Hedged item

Notional

58

Portion over 1

Fair value

Amount

year(*)

Normal accounting method:
Forward contracts for metal materials:
Raw materials andwork in process
Raw materials andwork in process

Sell
Buy
Total

¥ 5,459¥-¥ (316)23,861¥ 29,320

492
¥ 492

3,830
¥ 3,514

Thousands of U.S. dollars
2022
Notional
AmountHedged item

Portion over 1
year

Fair value(*)$ 44,746$-$ (2,590)

195,582$ 240,328

4,033$ 4,033

31,393$ 28,803

Normal accounting method:
Forward contracts for metal materials:
Raw materials andwork in process
Raw materials andwork in process

Sell
Buy
Total

(As of March 31, 2021)
Millions of Yen
2021
HedgedNotional
Amountitem

Portion over 1
year

Fair value(*)¥-¥ (416)

Normal accounting method:
Forward contracts for metal materials:
Raw materials andwork in process
Raw materials andwork in process

Sell
Buy

¥ 3,855
15,805¥ 19,661

179
4,481
¥ 179
¥ 4,064
Note (*): The fair value of forward contracts for metal materials is calculated based on
forward price quote for metal materials.

Total

24. Segment Informationa) Outline of reportable segments
The reportable segments of the Company are components for which the financial
information can be obtained separately from its other components, and the Board of
Directors reviews such reportable segments on a regular basis in order to decide
allocations of managerial resources and evaluate business performance.
The Group establishes divisions by type of product and service, and each division draws
up their comprehensive strategy on the products sold and services performed indomestic and overseas market.
Products and services of main business on each segment are as follows;(1) Infrastructure
59

Optical fiber, optical fiber cable, optical components, semiconductor optical devices,material communication cable, fusion splicer, industrial lasers, network equipment,
CATV system, radio products, power transmission cable, power transmission cable
accessories and insulations, industrial wire, electrical insulation tape, electronicmaterial products, etc.
(2) Electronics & Automotive Systems
Automotive components (wire harness, steering roll connector, battery state sensor,
perimeter monitoring radar, etc.), automatic batteries/batteries for industrial use,
copper/aluminum wires, magnet wires, copper and copper alloy products, functionalsurface products (plating), processed products for electronic parts (leading frame,etc.), special metal materials (shape-memory/super-elastic alloys), etc.
(3) Functional Products
Cable conduits, water-feeding pipe materials, foaming products, UV tapes forsemiconductor manufacturing, electronic components materials, heat-dissipation
products, hard disc drive (HDD) aluminum blank material , electrodeposited copper
foils, etc.
(4) Service and Development, etc.
Supporting service for each business of the Group such as hydraulic power generation,
driving of R&D for new products, real-estate leasing and logistics.
b) Segment income(loss) is based on operating income. In addition, intersegment sales
or transfers are based on market prices.
As described in “q)Accounting Changes in the section of 2.Significant Accounting
Policies”, the Group changed its accounting method in accordance with the revenue
recognition accounting standard and implementation guidance from the current
fiscal year, and similarly changed the calculation method of profit or loss for thebusiness segment.
The effects of this accounting change for this fiscal year, “Sales to external customers”
decreased by ¥7,210 million ($59,098 thousand) in Infrastructure, ¥38,815 million($318,156 thousand) in Electronics & Automotive Systems, ¥6,155 million ($50,451
thousand) in Functional products, ¥352 million ($2,885 thousand) in Service andDevelopment, etc., respectively. “Segment income” increased by ¥30 million ($246
thousand) in Infrastructure and 8 million ($66 thousand) in Functional products,
respectively, and decreased by ¥362 million ($2,967 thousand) in Electronics &Automotive Systems. “Segment loss” increased by ¥62 million ($508 thousand) in
Service and Development, etc.

60c) Segment information on sales and income (loss), identifiable assets and other items by business for the years ended March 31,
2022 and 2021 is summarized as follows:(For the year ended March 31, 2022)
Millions of Yen
Infrastructure

Net sales
Outside customers
Inter-segment sales
Total
Segment income (loss)
Segment assets
OthersDepreciation
Amortization of goodwill
Investments in affiliates
accounted for by the equity
methodTangible/intangible fixed
assets increased

Electronics &Automotive
Systems

Service andDevelopment,etc.

Functional
products

Sub-total

Adjustments*

Total

.
488,849 \
11,863500,713123 \
348,381 \

123,715 \
6,283
129,998
7,583 \
120,729 \24,157 \10,321
34,479(1,368) \110,487 \930,496 \
31,645962,141
11,522 \862,881 \- \(31,645)(31,645)(94) \
72,994 \930,496\\

293,773 \
3,177
296,950
5,184 \
283,283 \\\11,046 \- \13,715 \122 \5,341 \
38 \

1,524 \
345 \

31,628 \505 \2,093 \
- \33,721505\

8,122 \

9,323 \

9,781 \

58,360 \85,588 \- \85,588\

11,384 \15,494 \5,790 \

1,415 \

34,085 \\

4,059

930,496
11,428935,876-

38,144

Thousands of U.S. dollars
Infrastructure

Net sales
Outside customers
Inter-segment sales
Total
Segment income (loss)
Segment assets.

Electronics &Automotive
Systems

Service andDevelopment,etc.

Functional
products

Adjustments*

Total

$
$

2,407,975 $
26,041
2,434,016
42,492 $2,321,992 $OthersDepreciation
Amortization of goodwill$$

90,541 $- $112,418 $
1,000 $

43,779 $311 $12,492 $2,828 $

259,246 $
4,139 $

17,156 $- $276,402
4,139

Investments in affiliates
accounted for by the equity
method$66,574 $76,418 $80,172 $478,361 $

701,541 $- $701,541

Tangible/intangible fixed
assets increased$

93,311 $127,000 $47,459 $11,598 $279,385 $33,270 $

312,656$

4,006,959 $ 1,014,057 $
97,23851,5004,104,205
1,065,557
1,008 $
62,156 $2,855,582 $ 989,582 $Sub-total

198,008 $84,598282,615(11,213) $905,631 $7,627,016 $
259,3857,886,402
94,443 $7,072,795 $- $(259,385)(259,385)(770) $
598,311 $7,627,016
7,627,016
93,672
7,671,115-*1 Adjustments for Segment income (loss) of ¥94 million ($770 thousand) includes the elimination of unrealized profit and others.
*2 Adjustments for Segment income (loss) is adjusted to the operating income in Consolidated statement of income.
*3 Adjustments for Assets of ¥72,994 million ($598,311 thousand) includes corporate assets of ¥81,558 million ($668,508 thousand)that are not allocated to each segment, and △¥8,564 million (△$70,197 thousand) for the elimination of receivables and payables.
*4 Adjustments for Depreciation of ¥2,093 million ($17,156 thousand) includes depreciation of corporate assets and others.
*5 Adjustments for Tangible/intangible fixed assets increased of ¥4,059 million ($33,270 thousand) includes corporate
Tangible/intangible fixed assets increased and others.

(For the year ended March 31, 2021)
Millions of Yen
Infrastructure

Net sales
Outside customers
Inter-segment sales
Total
Segment income (loss)
Segment assets
OthersDepreciation
Amortization of goodwill
Investments in affiliates
accounted for by the equity
methodTangible/intangible fixed
assets increased

Electronics &Automotive
Systems

Functional
products

Service andDevelopment,
etc.

Sub-total

Adjustments*

Total

.
423,026 \10,013433,0395,858 \
292,796 \108,648 \6,031
114,680
6,298 \
103,915 \

24,412 \14,30038,712(1,707) \100,332 \811,600 \34,018845,619
8,319 \
747,921 \- \(34,018)(34,018)
110 \
84,122 \811,600\\

255,513 \3,673
259,186(2,129) \250,876 \\\10,244 \41 \13,195 \117 \4,843 \
115 \

1,592 \
345 \

29,876 \620 \2,286 \
- \32,163620\

7,365 \

9,791 \

7,494 \

47,010 \71,662 \- \71,662\

10,329 \15,492 \6,708 \

1,940 \

34,471 \5,492 \

39,963\

811,600
8,429
832,044*1 Adjustments for Segment income (loss) of ¥110 million includes the elimination of unrealized profit and others.
*2 Adjustments for Segment income (loss) is adjusted to the operating income in Consolidated statement of income.
*3 Adjustments for Assets of ¥84,122 million includes corporate assets of ¥100,938 million that are not allocated to each segment,
and △¥16,815 million for the elimination of receivables and payables.
*4 Adjustments for Depreciation of ¥2,286 million includes depreciation of corporate assets and others.
*5 Adjustments for Tangible/intangible fixed assets increased of ¥5,492 million includes corporate Tangible/intangible fixed assets
increased and others.

61-

<Related information>
Information by regions(For the year ended March 31, 2022)

Net sales\

Property, plant and equipment,
net of accumulated depreciation

Net sales

\

$

China

461,450 \100,457 \$

190,877 \Millions of Yen
North
middleAmerica

Japan

Asia

140,983 \

74,411 \33,290 \91,716 \China

3,782,377 $

823,418 $

1,564,566 $

11,477 \609,926 $

Japan

China

435,195 \

82,777 \272,869 $Total

85,994 \930,496

260,163

Other

751,770 $Total

704,869 $ 7,627,016

Thousands of U.S. dollars
North
Asia
middleOther
America

1,155,598 $

Other

Total

Other

Thousands of U.S. dollars
North
Other
middleAsian areas
America

Japan

Japan
Property, plant and equipment,
net of accumulated depreciation

Millions of Yen
North
middleAmerica

Other
Asian areas

Japan

Total

94,074 $ 2,132,484(For the year ended March 31, 2021)

Net sales\

Property, plant and equipment,
net of accumulated depreciation\

Millions of Yen
North
middleAmerica

Other
Asian areas

141,029 \Millions of Yen
North
middleAmerica

Japan

Asia

138,220 \65,845 \33,299 \78,179 \

Other

Total

74,418 \811,600

Total

Other

9,378 \

246,744<Information of impairment loss by reportable segments>(For the year ended March 31, 2022)
Millions of Yen
Infrastructure

Electronics &Automotive
Systems

Impairment loss\

1,017 \

471 \Impairment$

8,336 $

3,861 $

loss

Service andDevelopment,etc.

Functional
products- \Sub-total- \Adjustment

Total

1,489 \-\

1,489

Thousands of U.S. dollars- $- $12,205 $- $12,205(For the year ended March 31, 2021)
Millions of Yen
Infrastructure

Impairment

loss

\

1,085 \

Electronics &Automotive
Systems

Service andDevelopment,etc.

Functional
products

289 \

990 \

Sub-total

176 \2,542 \

Adjustment

-\

Total

2,542

<Information of goodwill by reportable segments>(For the year ended March 31, 2022)
Millions of Yen
Infrastructure

Electronics &Automotive
Systems

Service andDevelopment,etc.

Functional
products

Amortization of goodwill
Goodwill as of March 31

\
\

- \
- \

122 \
- \

Amortization of goodwill
Goodwill as of March 31

$
$

- $
- $

1,000 $
- $

38 \
84 \

Sub-total

345 \
489 \

Thousands of U.S. dollars
311 $
2,828 $
689 $
4,008 $

Adjustment

Total

505 \
573 \

- \
- \

505
573

4,139 $
4,697 $

- $
- $

4,139
4,697

(For the year ended March 31, 2021)
Millions of Yen
Infrastructure

Amortization of goodwill
Goodwill as of March 31

\
\

41 \
- \

Electronics &Automotive
Systems

Functional
products

117 \
589 \

62

115 \
25 \

Service andDevelopment,
etc.

345 \
835 \

Sub-total

620 \1,450 \

Adjustment

- \
- \

Total

620
1,450

25. Related Party Transactionsa) Related Party Transactions(1) Transactions of the Company with related companies and others(For the year ended March 31, 2022)
None.
(For the year ended March 31, 2021)
None.

(2) Transactions of the subsidiaries with related companies and others(For the year ended March 31, 2022)
None.
(For the year ended March 31, 2021)
None.

b) Information on the parent company and significant affiliate companies(For the years ended March 31, 2022 and 2021)(1) Information on the parent company
None.
(2) Financial statements of a significant affiliate company
Significant affiliate companies are UACJ Corporation and Asia Vital Components
Co.,Ltd.. Summarized aggregate financial statement data of each company is as follows.

Millions of Yen

UACJ Corporation
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Net assets
Sales
Profit before income taxes
Profit attributable to owners of parent\

2022
394,618 \434,111322,136
259,004
247,589
782,91150,11432,054 \\569,756
3,473(3,269) ＄Millions of Yen

Asia Vital Components Co.,Ltd.
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Net assets

Thousands of U.S.
dollars
2021
2022
294,502 ＄3,234,574
438,457
3,558,287
251,150
2,640,459
285,365
2,122,984
196,4452,029,418\

2022
160,319 \
50,770116,099
36,53758,4522021

6,417,303
410,770
262,738

Thousands of U.S.
dollars2022-＄
1,314,090
416,148
951,631
299,484
479,115

Sales
185,998
1,524,574
Profit before income taxes
18,736
153,574\
Profit attributable to owners of parent
11,398 \-＄93,426Note:
To reflect the change in the quantitative materiality, Asia Vital Components Co.,Ltd." is classified as
significant affiliate companies from this fiscal year.

63