Annual Report 2024
Year Ended March 31, 2024

Financial Highlights
ICOM INCORPORATED AND SUBSIDIARIES
Years ended March 31, 2024, 2023 and 2022

Thousands of
U.S. dollars

Millions of yen
2024

2023

2022

2024

¥ 37,117¥ 34,174¥ 28,277$ 245,142

Operating income

3,416

2,850

1,058

22,561

Profit before income taxes

4,416

3,262

1,485

29,166

Profit

3,462

2,575

1,094

22,865

Profit attributable to owners of parent

3,462

2,575

1,094

22,865¥ 73,159¥ 67,164¥ 63,369$ 483,185

Net sales

Total assets
Amounts per share:

Yen

U.S. dollars¥ 4,580.77¥ 4,211.85¥ 4,022.67

Profit – basic

241.19179.39

76.22

1.59

Cash dividends

97.00

72.00

50.00

0.64

Net assets

$

30.25

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥151.41 = U.S.$1.00, the exchange rate prevailing on March 31, 2024.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

■ Operating Income (Million Yen)

■ Consolidated Sales (Million Yen)
40,00030,00034,174

37,1174,000

28,2773,000

20,0002,000

10,000

1,000

0

0

1,058

FY March

FY March

FY March

FY March

FY March

FY March

2022

2023

2024

2022

2023

2024

■ SG&A Expenses (Million Yen)

■ Ordinary Profit (Million Yen)

15,000

4,416

5,000
4,000

10,313

3,262

11,436

12,621

10,000

3,000
2,000

3,416
2,850

1,574

5,000

1,000
0

FY March

FY March

FY March

2022

2023

2024

©2024 ICOM INCORPORATED

01

FY March

FY March

FY March

2022

2023

2024

Operating Highlights
GEOGRAPHICAL SEGMENT INFORMATION
Years ended March 31, 2024 and 2023

Millions of yen
Net Sales

Thousands of U.S. dollars

Operating Income

Operating

Net Sales

Income

2024

2023

2024

2023

2024

2024

¥ 33,176¥ 29,081¥ 3,533¥2,406$ 219,114$ 23,334

North America

13,653

12,469541

477

90,172

3,573

Europe

2,422

2,132

195

196

15,996

1,287

Asia & Oceania

1,865

1,652

136

94

12,318899

Eliminations(13,999)(11,160)

(989)

(323)

(92,458)(6,532)

Consolidated total¥ 37,117¥ 34,174¥ 3,416¥ 2,850$ 245,142$ 22,561

Japan

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥151.41 = U.S.$1.00, the exchange rate prevailing on March 31, 2024.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales (Millions of yen)Japan
North America

40,00030,00020,000Asia & Oceania

13,653

12,46910,0002,422 1,865

2,132 1,652

0

FY March 2023

FY March 2024

Japan

Operating Income (Millions of yen)

4,000
3,000

Europe33,17629,081

North America

3,533

EuropeAsia & Oceania

2,406

2,000
1,000
0

©2024 ICOM INCORPORATED

477

196

541
94

FY March 2023

195

FY March 2024

2

136

Operating Highlights
OVERSEAS SALES

Years ended March 31, 2024 and 2023

Millions of yen

2024 (Unaudited)
North America¥ 12,032

Thousands of U.S. dollars
2024 (Unaudited)

2023

32.4%

¥ 10,944

32.0%$

79,466

Europe

6,245

16.8

5,581

16.3

41,246

Asia & Oceania

5,955

16.1

4,899

14.4

39,330

Others

1,547

4.2

1,481

4.3

10,217

Overseas total

25,77969.5

22,90567.0

170,259

Japan

11,33830.5

11,26933.0

74,883

Consolidated total¥ 37,117

100.0%¥ 34,174

100.0%$

245,142

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥151.41 = U.S.$1.00, the exchange rate prevailing on March 31, 2024.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

FY March 2023 Sales by Region
North America
32.0%

Europe
16.3%

Japan
33.0%
Overseas
67.0%
Others4.3%

Asia & Oceania
14.4%

FY March 2024 Sales by Region
North America

Europe

32.4%

16.8%

Japan
30.5%

Overseas
69.5%
Others4.2%©2024 ICOM INCORPORATED

3

Asia & Oceania
16.1%

Business Outline
Consolidated Sales Composition (FY March 2024)
Sales Composition by Product Category

Options 16.0%
Navigation 1.1%

Land Mobile 48.0%

Avionics 5.9%

FY2024 Sales
Network 1.9%

37.1
billion yen

Marine 10.9%

Amateur 16.2%

Sales by Region
Japan 30.5%

Others 4.2%
Asia & Oceania 16.1%

FY2024 Sales

37.1
billion yen

North America 32.4%

Europe 16.8%©2024 ICOM INCORPORATED

4

Consolidated Balance Sheet
March 31, 2024

Thousands of
US dollars

Millions of yen(Note１)

2024

2023

2024

Cash and deposits (Notes 6,7 and 23)¥ 27,838¥ 29,397$ 183,858

Marketable securities (Notes 7 and 8)

600

-

3,963

Trade notes (Notes 5 and 7)

212

253

1,400

Accounts receivable - trade (Note 7)

5,020

4,871

33,155

Allowance for doubtful accounts

(32)

(24)

(211)

5,200

5,100

34,344Inventories (Note 9)

14,394

12,837

95,066

Other current assets

2,046

1,833

13,51350,07849,167

330,744

Land

4,564

4,354

30,143

Buildings and structures

7,638

7,049

50,446

Machinery and equipment

14,977

14,676

98,917

Vehicles and other

320

270

2,113

Construction in progress

44

58

291

27,543

26,407

181,910(18,824)(18,668)(124,325)

8,719

7,739

57,585

127

87

839

8,066

6,215

53,273

Other investments

1,335

541

8,817

Retirement benefit asset (Note 10)

1,260

410

8,322

Deferred tax assets (Notes 3 and 11)

373

791

2,464

3,063

2,059

20,230Intangible assets (Note 18)

145

184

957

Allowance for doubtful accounts

(7)

(29)

(46)

14,362

10,25894,856¥ 73,159¥ 67,164$ 483,185

AssetsCurrent Assets:

Total current assets
Property, plant and equipment:

Property, plant and equipment, at costLess accumulated depreciation
Property, plant and equipment, net (Note 18)
Investments and other assets:
Investments in securities (Notes 7 and 8)
Investments in affiliates
Other

Guarantee deposits

Total investments and other assets
Total Assets (Note 18)
See accompanying Notes to consolidated financial statements©2024 ICOM INCORPORATED

5

Consolidated Balance Sheet
March 31, 2024

Thousands of
US dollars

Millions of yen(Note１)

2024

2023

2024

Accounts payable – trade¥ 1,383¥ 1,811$ 9,134

Accounts payable - other

982

986

6,486

1,116

723

7,371

971

810

6,413

1,085

660

7,166

Warranty reserves

139

40

918

Other current liabilities (Note 13)

313

310

2,067

5,989

5,340

39,555

Deferred tax liabilities (Notes 3 and 11)

202

240

1,334

Retirement benefit liability (Note 10)

581

550

3,837

Other long-term liabilities (Note 13)

642

583

4,240

1,425

1,373

9,411

7,081

7,081

46,767

Capital surplus

10,44910,44969,011Retained earnings (Note 19)

44,70342,275295,245(1,446)(1,446)(9,550)60,78758,359401,473

Net unrealized holding gain on securities (Note 8)

1,821

507

12,027

Translation adjustments

2,474

1,381

16,340

663

204

4,379

4,958

2,092

32,74665,74560,451

434,219¥ 73,159¥ 67,164$ 483,185

Liabilities and net assets
Current liabilities:

Accrued income taxes(Note 11)

Accrued expenses
Provision for accrued bonuses

Total current liabilities
Long-term liabilities:

Total long-term liabilities
Net assets:
Shareholders' equity: (Note 14)
Common stock
Authorized -34,000,000 shares;
Issued - 14,850,000 shares in 2024 and2023

Less treasury stock, at cost;
497,623 shares in 2024 and 497,412 sharesin 2023
Total shareholders' equity
Accumulated other comprehensive income: (Note 16)

Retirement benefit liability adjustments (Note 10)
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

See accompanying Notes to consolidated financial statements©2024 ICOM INCORPORATED

6

Consolidated Statement of Income
Year ended March 31, 2024

Thousands of
US dollars

Millions of yen(Note１)

2024

2023

2024

¥ 37,117¥ 34,174$ 245,142

Cost of sales (Note 9)

21,08019,888139,225

Gross profit

16,037

14,286

105,917

Advertising expenses

872

721

5,759

Packing and transportation costs

344

336

2,272

9

9

59

3,127

2,894

20,653Welfare expenses

896

804

5,918

Provision for bonuses

339

205

2,239

Retirement benefit expenses (Note 10)

92

93

608

Depreciation and amortization

257

193

1,697

Commission fees

1,039

974

6,862

Research and development costs (Note 15)

3,963

3,862

26,174

93

3

614

Other

1,590

1,342

10,501

Total selling, general and administrative
expenses

12,621

11,436

83,356

Operating income (Note 18)

3,416

2,850

22,561

Net sales (Notes 13 and 18)

Selling, general and administrative expenses

Provision of allowance for doubtful accounts
Salaries and allowances

Provision for products warranties

See accompanying Notes to consolidated financial statements©2024 ICOM INCORPORATED

7

Consolidated Statement of Comprehensive Income
Year ended March 31, 2024

Thousands of
U.S. dollars

Millions of yen
2024(Note１)

2024

2023

Other income (expenses):
Interest and dividend income

280

216

1,849

Interest expenses

(2)

-

(13)

16

6

106

Foreign exchange gain, net

659

179

4,353

Other, net

47

11

310

1,000

412

6,605

4,416

3,262

29,166

Current

1,365

800

9,015

Deferred

(411)

(113)

(2,714)

954

687

6,301

Profit¥ 3,462¥ 2,575$ 22,865

Profit attributable to owners of parent: (Note 17)¥ 3,462¥ 2,575$ 22,865

Gain on sales of investments in securities, net(Note 8)

Profit before income taxes
Income taxes: (Notes 3 and 11)

Millions of yen

Thousands of
U.S. dollars(Note１)

2024

2023

2024

¥ 3,462¥ 2,575$ 22,865

Net unrealized holding gain on securities

1,314

134

8,678

Translation adjustments

1,093

344

7,219

459

380

3,032

2,866

858

18,929Comprehensive income¥ 6,328¥ 3,433$ 41,794

Total comprehensive income attributable to owners ofparent:¥ 6,328¥ 3,433$ 41,794

ProfitOther comprehensive income (Note 16)

Retirement benefit liability adjustments
Total other comprehensive income

See accompanying Notes to consolidated financial statements©2024 ICOM INCORPORATED

8

Consolidated Statement of Changes in Net Assets
Year ended March 31, 2024

Millions of yen
Net

Number ofshares on
issue
Balance atApril 1, 2022

Retirement

CommonCapitalRetained

Treasury

unrealized

Translation

benefit

Total netstock

surplusearnings

stock, at cost

holding gain

adjustments

liability

assetson securities

adjustments

14,850,000¥ 7,081¥ 10,449¥ 40,418¥ (1,445)¥ 373¥ 1,037¥ (176)¥ 57,737

Profit attributableto owners of parent
for the year

-

-

-

2,575

-

-

-

-

2,575

Cash dividends

-

-

-

(718)

-

-

-

-

(718)

Purchases oftreasury stock

-

-

-

-

(1)

-

-

-

(1)

Other changes

-

-

-

-

-

134

344

380

858

14,850,000¥7,081¥10,449¥42,275¥(1,446)¥507¥1,381¥204¥60,451

-

-

-

3,462

-

-

-

-

3,462

-

-

(1,034)

-

-

-

-

(1,034)

Balance atApril 1, 2023
Profit attributableto owners ofparent for the year
Cash dividends
Purchases oftreasury stock

-

-

-

-

(0)

-

-

-

(0)

Other changes

-

-

-

-

-

1,314

1,093

459

2,866

Balance at
March 31, 2024

14,850,000¥ 7,081¥ 10,449¥ 44,703¥ (1,446)¥ 1,821¥ 2,474¥ 663¥ 65,745

Thousands of US dollars (Note 1)
Commonstock
Balance atApril 1, 2023

CapitalsurplusRetainedearnings

Treasurystock, at costNet
unrealized
holding gain
on securities

Translation
adjustments

Retirement
benefitliability
adjustments

Total net
assets$ 46,767$ 69,011$ 279,209$ (9,550)$ 3,349$ 9,121$ 1,347$ 399,254

Profit attributable toowners of parent for
the year--

22,865----22,865

Cash dividends--(6,829)

-

-

-

-

(6,829)Purchases oftreasury stock

-

-

-

(0)

-

-

-

(0)

Other changes

-

-

-

-

8,678

7,219

3,032

18,929Balance at
March 31, 2024

$ 46,767$ 69,011$ 295,245$ (9,550)$ 12,027$ 16,340$ 4,379$ 434,219

See accompanying Notes to consolidated financial statements©2024 ICOM INCORPORATED

9

Consolidated Statement of Cash Flows
Year ended March 31, 2024

Thousands of
US dollars

Millions of yen(Note１)

2024

2023

2024

¥ 4,416¥ 3,262$ 29,166

Operating activities:
Profit before income taxes
Adjustments for:
Depreciation and amortization

1,164

856

7,688

Interest and dividend income

(280)

(216)

(1,849)Foreign exchange gain, net

(31)

(198)

(205)

Decrease (increase) in notes and accounts receivable

165

(261)

1,089

(1,044)(189)(6,895)

(433)

157

(2,860)

Increase in inventories(Decrease) increase in accounts payable – trade
Other, net

(733)

284

(4,841)

Subtotal

3,224

3,695

21,293(1,016)(276)(6,710)

2,208

3,419

14,583

(823)

3,146

(5,436)(1,866)(694)(12,324)

Purchases of intangible assets

(127)

(32)

(839)

Purchases of investments in securities

Income taxes paid
Net cash provided by operating activities
Investing activities:(Increase) decrease in time deposits with original
maturities in excess of three months
Purchases of property, plant and equipment

(680)

(906)

(4,491)

Proceeds from sales and redemption of investments
in securities

136

212

898

Interest and dividend income received

273

215

1,803

Other, net
Net cash (used in) provided by investing activities

(588)

543

(3,883)(3,675)2,484(24,272)

(0)

(0)

(0)

(1,034)(718)(6,829)

(91)

-

(601)

(1,125)(718)(7,430)Financing activities:
Purchase of treasury stock
Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents

607

305

4,009

Net (decrease) increase in cash and cash equivalents(1,985)

5,490(13,110)

Cash and cash equivalents at beginning of year

27,97922,489184,790

Cash and cash equivalents at end of year (Note 6)¥ 25,994¥ 27,979$ 171,680

See accompanying Notes to consolidated financial statements©2024 ICOM INCORPORATED

10ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
1. Basis of Preparation
The accompanying consolidated financial statements of ICOM INCORPORATED (the “Company”) and its
consolidated subsidiaries (the “Group”) are prepared on the basis of accounting principles generally accepted inJapan, which are different in certain respects as to the application and disclosure requirements of International
Financial Reporting Standards (“IFRS”), and have been compiled from the consolidated financial statements
prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued domestically in order to present
them in a format which is more familiar to readers outside Japan. In addition, the notes to the consolidated
financial statements include certain information which is not required under accounting principles generally
accepted in Japan but is presented herein as additional information. The translation of yen amounts into U.S.
dollar amounts is included solely for the convenience of readers outside Japan, as a matter of arithmetic
computation only, and has been made at ¥151.41 = U.S.$1.00, the approximate rate of exchange in effect on
March 31, 2024. This translation should not be construed as a representation that yen have been, could havebeen, or could in the future be, converted into U.S. dollars at the above or any other rate.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and thecompanies which it controls directly or indirectly. Two companies over which the Company exercises
significant influence in terms of their operating and financial policies have been included in the accompanying
consolidated financial statements on an equity basis.
All significant intercompany balances and transactions have been eliminated in consolidation. All material
unrealized intercompany gains and losses among the Company and the subsidiaries have been entirely
eliminated.
The financial statements of one consolidated subsidiary whose fiscal year end is December 31 and one
consolidated subsidiary whose fiscal year end is September 30 have been included in consolidation on thebasis of a full fiscal year closing on March 31 for consolidation purposes.
(b) Cash and cash equivalents
For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash on
hand, deposits with banks withdrawable on demand, and short-term investments which are readily
convertible to cash subject to an insignificant risk of any changes in their value and which were purchasedwith an original maturity of three months or less.
(c) Foreign currency translation
The balance sheet accounts of the overseas subsidiaries are translated into yen at the rates of exchange in
effect at the balance sheet date except that the components of net assets are translated at their historicalexchange rates. Adjustments resulting from translating accounts denominated in foreign currencies are notincluded in the determination of profit in the accompanying consolidated financial statements, but arereported as “Translation adjustments,” a component of net assets.
Revenue and expense accounts of the overseas subsidiaries are translated at the average rates of exchange
in effect during the year.
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of
exchange in effect at the balance sheet date, except that receivables hedged by qualified forward foreignexchange contracts are translated at the corresponding contract rates. Gain or loss on each translation iscredited or charged to income.
(d) Marketable securities and investments in securities
In general, securities are classified into three categories: trading securities, held-to-maturity debt securities
or other securities.
Trading securities, consisting of debt and marketable equity securities, are stated at fair value. Gain or loss,
both realized and unrealized, are credited or charged to income. Held-to-maturity debt securities are statedat their amortized cost. Marketable securities classified as other securities are carried at fair value with any
changes in unrealized holding gain or loss, net of the applicable income taxes, included directly in net assets.
Cost of securities sold is determined by the moving average method. Unquoted securities classified as othersecurities are carried at cost determined by the moving average method.
Securities held by the Company and its subsidiaries including investments in securities, which are notaccounted for on an equity basis, are all classified as “other securities” and have been accounted for as
outlined above.

©2024 ICOM INCORPORATED

11

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
2. Summary of Significant Accounting Policies (continued)(e) Inventories
Inventories are mainly stated at the lower of cost or net selling value, cost being determined by the moving
average method ,except for inventories held by certain overseas subsidiaries which are valued at the lower ofcost or net selling value, cost being determined by the moving average method.
(f) Property, plant and equipment (except for leased assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment in the
Company and its domestic subsidiaries is computed principally by the declining-balance method over theestimated useful lives of the respective assets as prescribed in the Corporation Tax Law of Japan, exceptthat the straight-line method is applied to buildings (other than structures attached to the buildings)
acquired on or after April 1,1998 and structures attached to buildings and other structures acquired on orafter April 1, 2016. The overseas consolidated subsidiaries calculate depreciation by the straight-line method.
(g) Intangible assets (except for leased assets)
Amortization of intangible assets is calculated by the straight-line method over the estimated useful livesof the respective assets as prescribed in the Corporation Tax Law of Japan. Expenditures related to thedevelopment of computer software intended for internal use are charged to income when incurred, except
if it is anticipated that this software will contribute to the generation of income or to future cost savings.
Such expenditures are capitalized as assets and amortized by the straight-line method over an estimateduseful life of 3 or 5 years.
(h) Leased assets
Leased assets are depreciated by the straight-line method over respective lease periods with no residual
value.
(i) Allowance for doubtful accounts
The allowance for doubtful accounts is computed based on the historical ratio of bad debts and an estimateof certain uncollectible amounts determined after an analysis of specific individual receivables.
(j) Accrued bonuses
Accrued bonuses are calculated based on the estimated amount to be paid to employees and directors after
the balance sheet date, which are attributable to the current fiscal year.
(k) Warranty reserves
Warranty reserves are provided for anticipated future repair costs based on the historical ratio calculatedusing product repair costs against net sales, which are attributable to the current fiscal year. In addition, theCompany records the estimated amount of costs to be incurred that can be individually estimated.
The warranties generally guarantee to customers the performance of the products sold according to productspecifications which the Group and its customers have mutually agreed and thus, is recognized as provisions
for product warranties.
(l) Retirement benefit liability
Retirement benefit liability is provided mainly at an amount calculated based on the retirement benefit
obligation less the fair value of the pension plan assets. The retirement benefit obligation is attributed to eachperiod by the straight-line method over the estimated remaining years of service of the eligible employees.
Actuarial gain or loss is being amortized in the year following the year in which the gain or loss isrecognizedby the straight-line method over ten years, which is within the average remaining years of service of eligible
employees.

©2024 ICOM INCORPORATED

12

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
2. Summary of Significant Accounting Policies (continued)(m) Significant revenues and expensesi) Revenues from sales of goods and products
Revenues from sales of goods and products, which mainly include sales of land mobile radios,amateur radios, marine radios, other radios, and information and telecommunication equipment
such as networking facilities. Revenue is recognized at the time of delivery since it is consideredthat the control of the goods and products is transferred to the customer and the performanceobligation is satisfied at the time of delivery.
For sales of goods and products within Japan, revenue is recognized at the time of shipment if theperiod from the time of shipment to the time when control of the goods and products is transferred tothe customer is a normal period of time.
ii) Revenues from sales of services and other sales
Revenues from sales of services and other sales, which mainly include revenues fromtelecommunication services and revenues from product-related services such as warranty, repairs
and maintenance. If the performance obligation is satisfied at a point in time, revenue is recognizedwhen the service is completed. If the performance obligation is satisfied over time, revenue isrecognized uniformly over the period during which the services are provided.
(n) Hedge accounting
The Company utilizes derivative transactions in order to manage the risks arising from adverse fluctuation
in foreign currency exchange rates. In accordance with internal management rules, the Company enters into
forward foreign exchange contracts which fall within the Company’s foreign currency or foreign currency
receivables holding limits. Derivative transactions are not entered into for speculative purposes.
Under the accounting standard for financial instruments, gain or loss on derivatives designated as hedging
instruments is deferred until the loss or gain on the underlying hedged items is recognized. Forward foreignexchange contracts which meet certain conditions are accounted for by a method under which the foreign
currency deposits and receivables are translated at their corresponding forward foreign exchange contract
rates (“Allocation method.”)
The evaluation of effectiveness of such forward foreign exchange contracts is omitted because significant
terms of the hedging instruments and underlying hedged items are the same and the Company assumes
that movements in cash flows are completely offset.
Hedging instruments and hedged items are as follows:
Hedging instruments
Hedged items

Foreign exchange contracts
Foreign currency deposits and foreign currency trade receivables(o) Distribution of retained earnings
Under the Companies Act of Japan and the Company’s Articles of Incorporation, the distribution of retained
earnings with respect to a given fiscal year end is made by resolution of the shareholders at a general
meeting held subsequent to the close of the financial period. The distribution of retained earnings with respect
to interim financial periods is made by resolution of the board of directors. (Please refer to Note 19.)(p) Accounting standards issued but not yet effective
The Accounting Standards Board of Japan issued the following revised accounting standards and revised
implementation guidance:・ “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)
・ “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28,
2022)
・ “Guidance on Accounting Standard for Tax Effect Accounting “(ASBJ Guidance No. 28, October 28, 2022),(1) Overview
The revised standards and revised implementation guidance provide for the classification of income
taxes when taxes are imposed on other comprehensive income and for the treatment of tax effects related
to the sale of shares of subsidiaries when the corporate group tax system is applied.
(2) Scheduled date of adoption
The Company expects to adopt the accounting standards and related implementation guidance fromthe beginning of the fiscal year ending March 31, 2025.
(3) Impact of adoption of revised accounting standard and related implementation guidance
The Company is currently evaluating the effect of the adoption of the accounting standards and related
implementation guidance on its consolidated financial statements.
©2024 ICOM INCORPORATED

13

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
3. Significant Accounting Estimates（１）Recoverability of Deferred Tax Assetsi) Recoverability of deferred tax assets as of March 31, 2024 and 2023:
Thousands of
U.S. dollars

Millions of yen

Deferred tax assets (net amount)

2024

2023

2024

¥ 373

¥ 791

$ 2,464ii) Information on significant accounting estimates for identified items(a) Calculation method
The Group evaluates the recoverability of deferred tax assets for deductible temporary
differences based on the tax planning opportunities available to it and estimated future taxable
income that depends on future profitability. In estimating future taxable income, the Company
and its subsidiaries evaluate probable future taxable income by reasonably estimating the timing
and amount of expected future taxable income based on supporting materials such as thebusiness plan.
(b) Significant assumptions
The significant assumptions underlying the business plan to evaluate the estimate of futuretaxable income are sales growth rate and gross profit ratio.
The sales growth rate and the gross profit ratio are determined mainly by using a forecast ofcustomer demand and the latest actual sales results.
(c) Impact on consolidated financial statements for the following fiscal year
In the event the actual sales growth rate and gross profit ratio as significant assumptions fall
below expectations due to market trends such as innovation or a decrease in production resulting
from an adverse procurement situation of key components, which are mainly semiconductors,some deferred tax assets may be reversed in the following fiscal year.
4. Changes in Presentation
Consolidated Statement of Income“Provision for products warranties” included in “Other” under “Selling, general and administrative expenses” inthe previous fiscal year is separately stated from the current fiscal year because of its increased significance. The
consolidated financial statements for the previous fiscal year have been reclassified to reflect this change inpresentation.
As a result, ¥1,345 million stated in “Other” under “Selling, general and administrative expenses” in theConsolidated Statement of Income for the previous fiscal year was reclassified as ¥3 million in “Provision for
products warranties” and ¥1,342 million in “Other.”
5. Trade Notes
The balance sheet date for the year ended March 31, 2024 fell on a bank holiday. Consequently, the following
trade notes with the due date of March 31 were included in the respective balances and settled on the next
business day.
Thousands of
U.S. dollars

Millions of yen

2024
¥ 11

Trade notes©2024 ICOM INCORPORATED

14

2023
¥ -

2024
$ 79

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024

6. Cash and Cash Equivalents
In the preparation of the consolidated statements of cash flows, the relationship between the items included
in cash and cash equivalents and the corresponding amounts reflected in the consolidated balance sheets at
March 31, 2024 and 2023 is summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Cash and deposits
Marketable securities
Subtotal

2024

2023

2024

¥ 27,838¥ 29,397$ 183,858

600

-

3,963

¥ 28,438¥ 29,397$ 187,821(1,844)(1,418)(12,178)(600)-(3,963)¥ 25,994¥ 27,979$ 171,680

Time deposits with original maturities in excess of
three months
Marketable securities with original maturities inexcess of three months
Cash and cash equivalents
7. Financial Instruments(1) General informationi)

Policy for financial instruments
In consideration of plans for capital investment, which is mainly centered on radio manufacturing
and sales, the Group obtains necessary financing through its own funds. The Group manages surplus
funds through financial assets that have high levels of liquidity. The Group uses derivatives for the
purpose of reducing risk and does not enter into derivatives for speculative purposes.

ii) Types of financial instruments and related risk
Notes and accounts receivable are exposed to credit risk in relation to customers. In addition,accounts receivable denominated in foreign currencies are exposed to exchange rate fluctional risk.
Marketable securities and investments in securities are exposed to market risk. Those securities arecomposed of mainly debt securities classified as other securities and equity securities of othercompanies with which it has business relationships.
Fair values of those securities are periodically reported to the meetings of the board of directors.
Most of trade accounts payable have payment due dates within two months. Those denominated inforeign currencies are exposed to exchange rate fluctional risk.
Regarding derivatives, the Group enters into forward foreign exchange contracts to reduce theforeign currency exchange rate fluctuation risk arising from cash and deposits and receivables
denominated in foreign currencies, and utilizes compound financial instruments for the purpose of
efficient management of surplus funds. Further information regarding the method of hedge
accounting, hedging instruments and hedged items, hedging policy, and the assessment of theeffectiveness of hedging activities can be found in “(n) Hedge accounting” in Note 2 “Summary of
Significant Accounting Policies”.

©2024 ICOM INCORPORATED

15

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024

7. Financial Instruments (continued)(1) General information (continued)iii) Risk management for financial instruments(a) Monitoring of credit risk (the risk that customers or counterparties may default)
In accordance with the internal policies for managing credit risk of the Group arising from tradereceivables, the sales department monitors credit worthiness of main customers periodically, inprinciple, and monitors due dates and outstanding balances by customer. In addition, the Group ismaking efforts to early identify and mitigate risks of bad debt from customers who have financial
difficulties.
In accordance with the internal policies for security management, the Group only acquires debt
securities classified as other securities with high credit ratings. Accordingly, the Group believes thatthe credit risk deriving from such debt securities is insignificant.
The Group also believes that the credit risk of derivatives is insignificant as the Group enters into
derivative transactions only with financial institutions with high credit ratings.
(b) Monitoring of market risks (the risks arising from fluctuations in foreign exchange rates, interest
rates and others)
For cash and deposits denominated in foreign currencies, in principle, for a portion of receivables
denominated in foreign currencies, the Group identifies the foreign currency exchange risk by eachcurrency and enters into forward foreign exchange contracts to hedge such risk.
For marketable securities and investments in securities, the Group periodically reviews the fairvalues of such financial instruments and the financial position of the issuers. In addition, the Group
continuously evaluates whether securities should be maintained taking into account their fair values
and the relationships with the issuers.
For derivative transactions, the accounting department of the Company enters into and manages
transactions, and a respective director, in advance, approves them within the limits reported at themeeting of the board of directors. Results of derivative transactions are reported at the monthly
meetings of the board of directors. The consolidated subsidiaries do not enter into derivativetransactions.
(c) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on thescheduled due dates)
Based on reports from each division, the accounting department of the Company prepares andupdates its cash flow plans on a timely basis and maintains liquidity of assets for payment tomanage liquidity risk. The consolidated subsidiaries monitor liquidity risk in the same manner.
iv)

Supplementary explanation of the estimated fair value of financial instruments
Since various assumptions and factors are reflected in estimating the fair value, different
assumptions and factors could result in different fair values.

©2024 ICOM INCORPORATED

16

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
7. Financial Instruments (continued)

March 31, 2024

(2) Estimated fair value of financial instruments
The carrying value of financial instruments on the consolidated balance sheets at March 31, 2024 and2023, the estimated fair value and the difference between them are shown in the following table. For cash
and deposits, trade notes, accounts receivable trade and accounts payable trade, they are not on the tablebelow as most of them are settled within a short term and their fair value approximates carrying value.
Millions of yen

2024
Carrying
value

Fair value

Difference

AssetsMarketable securities and investments in securities
Total assets¥ 8,590¥ 8,590¥-¥ 8,590¥ 8,590

¥

-

-

-

Derivative transactions (*)-

Millions of yen

2023
Carrying
value

Fair value

Difference

AssetsMarketable securities and investments in securities
Total assets¥ 6,206¥ 6,206¥-¥ 6,206¥ 6,206

¥

-

-

-

Derivative transactions (*)-

Thousands of U.S. dollars

2024
Carrying
value

Fair value

Difference$ 56,733$ 56,733$-$ 56,733$ 56,733

$

-

-

-

AssetsMarketable securities and investments in securities
Total assets
Derivative transactions (*)-(*) The value of assets and liabilities arising from derivative transactions is shown at net value.
Unquoted securities as of March 31, 2024 and 2023 are as follows. They are not included in the table
above.
Thousands of
U.S. dollars

Millions of yen

Unlisted equity securities©2024 ICOM INCORPORATED

17

2024

2023

¥

¥

203

2024
96

$ 1,341ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024

7. Financial Instruments (continued)(2) Estimated fair value of financial instruments (continued)i)

Redemption schedule
The redemption schedule for monetary assets, marketable securities and investments in securities withmaturity dates is summarized as follows:
Millions of yen

2024
Due within
one year¥ 27,838

Cash and deposits
Trade notes
Accounts receivable
trade

Due after
one yearthroughfive years

¥

-

2023

Due after
five years
throughten years

Due after
ten years

Due within
one year¥¥-¥ 29,397-

Due after
one yearthroughfive years¥-

Due after
five years
throughten years¥-

Due after
ten years

¥

-

212

-

-

-

253

-

-

-

5,020

-

-

-

4,871

-

-

-

600

1,100

2,100

-

-

1,100

2,300

100

-

-

-

-

-

-

-

-

¥ 33,670¥ 1,100¥ 2,100-¥ 34,521¥ 1,100¥ 2,300

Marketable securities
and investments insecurities:
Other securities
with maturity dates
Corporate bonds
Other
Total

¥

Thousands of U.S. dollars

2024
Due within
one year

Due after
one yearthroughfive years$ 183,858$

Cash and deposits-

Due after
five years
throughten years$

Due after
ten years-$-

Trade notes

1,400

-

-

-

Accounts receivabletrade

33,155

-

-

-

3,963

7,265

13,870

-

-

-

-

-

$222,376$ 7,265$13,870

Marketable securities
and investments insecurities:
Other securities
with maturity dates
Corporate bonds
Other
Total

©2024 ICOM INCORPORATED

$

18

-

¥

100

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
7. Financial Instruments (continued)(3) Breakdown of fair value of financial instruments by level
Fair values of financial instruments are categorized into three levels as described below on the basis of
the observability and the materiality of the inputs used in the fair value measurement.
Level 1: Fair values measured using quoted prices of identical assets or liabilities in active markets amongobservable valuation inputs
Level 2: Fair values measured using inputs other than inputs included within Level 1 among observablevaluation inputs
Level 3: Fair values measured using unobservable valuation inputs
When several inputs that have significant impact on fair value measurement are used and those inputs
are categorized into different levels, the fair value is categorized into the lowest hierarchy level for fair value
measurement among those in which each of the inputs belongs.
Financial instruments measured at fair value
Millions of yen

2024
Level 1

Level 2Equity securities¥ 4,851¥

Corporate bonds

-

3,739

¥ 4,851¥ 3,739

2023

Level 3

Total

Level 1

Level 2-

¥ 4,851¥ 2,755

¥

-

3,739

-

3,451

-

¥ 8,590¥ 2,755¥ 3,451

Level 3

Total

Marketable securities
and investments insecurities:
Other securities

Total

-

¥

¥

-

¥

¥

-

¥ 2,755

-

3,451

-

¥ 6,206

Thousands of U.S. dollars

2024
Level 1

Level 2

Level 3Equity securities＄ 32,039＄

Corporate bonds-

24,694＄ 32,039＄ 24,694

Total

Marketable securities
and investments insecurities:
Other securities

Total

-

＄

＄

-

＄ 32,039-

24,694-＄ 56,733

Notes: Explanation of valuation techniques used and inputs related to the calculation of fair valueMarketable securities and investments in securities
Fair values of listed equity securities and corporate bonds are determined by using quoted prices. Fair values oflisted equity securities are categorized as Level 1 since they are traded in active markets. Fair values of corporate
bonds are categorized as Level 2 because the frequency of market transactions is low and they are not recognized
as having quoted prices in active markets.

©2024 ICOM INCORPORATED

19

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
8. Marketable Securities and Investments in Securities
Marketable securities and investments in securities classified as other securities at March 31, 2024 and 2023
are summarized as follows:
Millions of yen

2024
Carrying

Acquisition

value

cost

2023
Difference

Carrying

Acquisition

value

cost

¥

Difference

Securities whose carrying value
exceeds their acquisition cost:
Equity securities¥ 4,851¥ 2,163¥ 2,688¥ 1,827

Corporate bonds

504

500

4

502

501

1

Subtotal

5,355

2,663

2,692

2,329

1,470

859

Equity securities

-

-

-

928

1,001

(73)

Corporate bonds

3,235

3,301

(66)

2,949

3,002

(53)

Subtotal

3,235

3,301

(66)

3,877

4,003

(126)

¥ 8,590¥ 5,964¥ 2,626¥ 6,206¥ 5,473

¥ 733

969

¥

858

Securities whose carrying value
does not exceed their acquisition cost:

Total

Thousands of U.S. dollars

2024
Carrying

Acquisition

value

cost

Equity securities$ 32,039$ 14,286$ 17,753

Corporate bonds

3,328

3,302

26

Subtotal

35,367

17,588

17,779Corporate bonds

21,36621,802(436)

Subtotal

21,36621,802(436)$ 56,733$ 39,390$ 17,343

Difference

Securities whose carrying value
exceeds their acquisition cost:

Securities whose carrying value
does not exceed their acquisition cost:
Equity securities

Total

Sales of other securities for the years ended March 31, 2024 and 2023 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2024
¥

Sales

2024

2023
36

¥

12

$

238

Aggregate gain

16

6

106

Aggregate loss

-

-

-

©2024 ICOM INCORPORATED

20

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
9. Inventories
Inventories at March 31, 2024 and 2023 are consisted of the following:Thousands of
U.S. dollars

Millions of yen

Goods and finished products
Work in process
Raw materials and supplies
Total

2024

2023

2024

¥ 7,175¥ 4,482$ 47,388

108

88

713

7,111

8,267

46,965¥ 14,394¥ 12,837$ 95,066

Cost of sales include a loss on devaluation of inventories of ¥259 million ($1,711 thousand) and ¥363 million forthe years ended March 31, 2024 and 2023, respectively.
10. Retirement Benefit Plans(1) Outline of retirement benefits for employees
The Company and its domestic subsidiaries have defined benefit corporate pension plans and lump-sum
payment plans and also the small-and medium-size enterprises’ retirement allowance mutual aid system as adefined contribution plan for employees.
The Company and its domestic subsidiaries may pay additional retirement benefits to employees undercertain circumstances.
For the calculation of retirement benefit liabilities and retirement benefit expenses, certain consolidated
subsidiaries have adopted method, which deems term-end amounts payable for voluntary retirement related
to retirement benefits as retirement benefit obligations.
(2) Retirement benefit liability for the years ended March 31, 2024 and 2023
i) The changes in retirement benefit obligation are outlined as follows (except for retirement benefit
obligation calculated by the simplified method):Thousands ofMillions of yen
U.S. dollars

2024

2023

2024

¥ 6,519¥ 7,074$ 43,055

Service cost

191

215

1,262

Interest cost

98

59

647

Actuarial loss

153

(692)

1,011

(127)

(137)

(839)

¥ 6,834¥ 6,519$ 45,136

Retirement benefit obligation at beginning of year

Retirement benefits paid
Retirement benefit obligation at end of yearii) The changes in plan assets at fair value are outlined as follows (except for retirement benefit
obligation calculated by simplified method):Thousands ofMillions of yen
U.S. dollars

2024

2023

2024

¥ 6,929¥ 6,768$ 45,763

Expected return on plan assets

49

45

324

Actuarial gain

812

(170)

5,363

Contributions by the employer

431

423

2,847

(127)

(137)

(839)

¥ 8,094¥ 6,929$ 53,458

Plan assets at fair value at beginning of year

Retirement benefits paid
Plan assets at fair value at end of year
©2024 ICOM INCORPORATED

21

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
10. Retirement Benefits Plans (continued)(2) Retirement benefit liability for the years ended March 31, 2024 and 2023 (continued)iii) The changes in retirement benefits obligation calculated by the simplified method are outlined asfollows:
Thousands ofMillions of yen
U.S. dollars

2024
Retirement benefit obligation at beginning of year

2023

2024

¥ 550

¥ 525

$ 3,632

54

49

357

(23)

(24)

(152)

¥ 581

¥ 550

$ 3,837

Retirement benefits expenses
Retirement benefits paid
Retirement benefit obligation at end of yeariv) The balance of retirement benefit obligation and plan assets at fair value, liabilities and assets
recognized in the consolidated balance sheets are outlined as follows:
Thousands ofMillions of yen
U.S. dollars

2024

2023

Funded retirement benefit obligation¥ 6,834¥ 6,519

Plan assets at fair value(8,094)(6,929)(53,458)(1,260)(410)(8,322)

581

550

3,837

¥ (679)¥ 140$ (4,485)

581

550

3,837

Retirement benefit asset(1,260)(410)(8,322)

Net amount of liabilities and assets recognized inconsolidated balance sheets¥ (679)¥ 140$ (4,485)

Unfunded retirement benefit obligation
Net amount of liabilities and assets recognized inconsolidated balance sheets
Retirement benefit liability

2024$

45,136v) The components of retirement benefit expenses for the years ended March 31,2024 and 2023 areoutlined as follows:
Thousands of
U.S. dollars

Millions of yen

Service cost

2024

2023

2024

¥

¥

264

$ 1,612

98

59

647

(49)

(45)

(324)

2

27

14

295

¥ 305

$ 1,949

Interest cost
Expected return on plan assets
Amortization:
Actuarial loss
Retirement benefit expenses©2024 ICOM INCORPORATED

¥

22

244

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
10. Retirement Benefits Plans (continued)(2) Retirement benefit liability for the years ended March 31, 2024 and 2023 (continued)vi) The component of retirement benefit liability adjustments included in other comprehensive
income before tax effects are outlined as follows:
Thousands of
U.S. dollars

Millions of yen

2024

2023

2024

Actuarial gain

¥

661

¥

548

$ 4,366

Total

¥

661

¥

548

$ 4,366vii) The balance of retirement benefit liability adjustments recognized in accumulated othercomprehensive income before tax effects is outlined as follows:
Thousands of
U.S. dollars

Millions of yen

2024

2023

2024

Unrecognized actuarial loss

¥

955

¥ 294

$ 6,307

Total

¥

955

¥ 294

$ 6,307viii) The plan assets by major category consist of the following:

2024

2023

Debt securities

52%

59%

Equity securities

35

29

Cash and deposits

1

1

Other

12

11

Total

100%

100%

The expected long-term rate of return on plan assets is determined as a result of consideration of boththe portfolio allocation to each class at present and in the future, and long-term expected rate of returnfrom multiple plan assets at present and in the future.
ix) The assumptions used in accounting for the defined benefit plans for the years ended March 31,
2024 and 2023 are as follows:

2024

2023

Discount rates

1.5%

1.5%

Expected long-term rates of return on plan assets

0.7

0.7

Expected rate of compensation increases

1.3

1.3

Total contributions paid by a consolidated subsidiary to the defined contribution pension plans for the years
ended March 31, 2024 and 2023 amounted to ¥2 million ($13 thousand) and nil, respectively.

©2024 ICOM INCORPORATED

23

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
11. Income Taxes
Income taxes applicable to the Company and its domestic subsidiaries comprise corporation, enterprise andinhabitants’ taxes which, in the aggregate, resulted in statutory tax rate of approximately 30.6% for the years
ended March 31, 2024 and 2023. The overseas subsidiaries are subject to income taxes of the respective
countries in which they operate.
Reconciliations of the statutory tax rate and effective tax rate for the years ended March 31, 2024 and 2023
as a percentage of profit before income taxes are as follows:

2024

2023

30.6%

30.6%

Non-deductible entertainment expenses and other forincome tax purposes

0.5

1.2

Per capita portion of inhabitants’ taxes

0.6

0.7

Tax credit for experimentation and research expenses(10.1)(9.0)

Differences in tax rates applicable to overseas
subsidiaries

(1.3)

(1.5)

Equity in earnings of affiliates

(0.3)

0.2

Valuation allowance

0.0

(0.4)

Effect of Tax Cuts and Jobs Act in U.S.

0.0

0.1

Accumulated earnings tax

0.6

(0.5)

Amortization of goodwill

0.5-

Statutory tax rate

Other
Effective tax rate

©2024 ICOM INCORPORATED

24

0.5

(0.3)

21.6%

21.1%

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
11. Income Taxes (continued)
The significant components of deferred tax assets and liabilities at March 31, 2024 and 2023 are summarized
as follows:
Thousands ofMillions of yen
U.S. dollars

2024

2023

2024

¥

¥

314

$ 4,082

Deferred tax assets:
Unrealized gain on inventories

618

Long-term accounts payable - other

139

139

918

Provision for accrued bonuses

327

200

2,160

Accrued enterprise tax

75

62

495

Deferred revenue

8

8

53

Retirement benefit liability

174

165

1,149

Allowance for doubtful accounts

23

14

152

Loss on valuation of investments in securities

25

25

165

Accrued legal welfare expense on bonuses

52

32

344

Net operating loss carryforward

47

32

310

Warranty reserves

39

-

258

Loss on devaluation of inventories

174

176

1,149

Other

75

73

495

Gross deferred tax assets

1,776

1,240

11,730

Valuation allowance

(45)

(34)

(297)

Total deferred tax assets

1,731

1,206

11,433

Unrealized holding gain on securities

(802)

(223)

(5,297)

Gain on sales of property, plant and equipment

(208)

(179)

(1,374)

Accumulated earnings tax

(141)

(115)

(931)

Retirement benefit asset

(385)

(125)

(2,543)

Other

(24)

(13)

(158)

Deferred tax liabilities:

Total deferred tax liabilities(1,560)(655)(10,303)

Net deferred tax assets

¥ 171

¥ 551

$ 1,130©2024 ICOM INCORPORATED

25

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
12. Derivatives and Hedging Activities
There were no outstanding derivatives positions not designated as hedging instruments as of March 31, 2024
and 2023.
There were no derivatives positions outstanding which qualify for hedge accounting at March 31, 2023.
The estimated fair value of the derivatives positions outstanding which qualify for hedge accounting at March
31, 2024 is summarized as follows:

Millions of yen
2024
Method of hedge accounting

Transaction

Major hedged item

Allocation method for

Forward foreign

Foreign currency

forward foreign exchange

exchange contracts

deposits

NominalMore thanamountone year

Fair value

contracts
Sell:
USD

¥ 300

¥

-

¥

-

¥ 300

¥

-

¥

-

Thousands of U.S. dollars
2024
Method of hedge accounting

Transaction

Major hedged item

Allocation method for

Forward foreign

Foreign currency

forward foreign exchange

exchange contracts

deposits

NominalMore thanamountone year

Fair value

contracts
Sell:
USD

$ 1,981

$

-

$

-

$ 1,981

$

-

$

-

The forward foreign exchange contracts that qualify for the allocation method and the underlying foreign
currency deposits are accounted for as a unit. Therefore, the fair value of the forward foreign exchange
contracts is included in cash and deposits.

©2024 ICOM INCORPORATED

26

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
13.Revenue Recognition(1) Information on disaggregated revenue arising from contracts with customers
Millions of yen

2024
Japan

North
America

EuropeAsia &
Oceania

Subtotal

Goods or services transferred at a point
in time¥ 16,940¥ 13,363¥

2,228¥ 1,553¥ 34,084

Goods or services transferred over time

2,538

286

194

15

3,033

Revenue from contracts with customers

19,47813,649

2,422

1,568

37,117

-

-

-

-

-

¥ 19,478¥ 13,649¥ 2,422¥ 1,568¥ 37,117

¥

¥

¥

¥

¥

Sales

Other revenue
Sales to external customers
Sales to government offices

713

355

1

12

1,081

Millions of yen

2023
Japan

North
America

EuropeGoods or services transferred at a point
in time¥ 15,898¥ 12,188¥

Goods or services transferred over time

2,206

Revenue from contracts with customers

Asia &
Oceania

Subtotal

Sales

2,025

¥ 1,461¥ 31,572

277

107

12

2,602

18,104

12,465

2,132

1,473

34,174

-

-

-

-

-

¥ 18,104¥ 12,465¥ 2,132¥ 1,473¥ 34,174

¥

¥

¥

¥

¥

Other revenue
Sales to external customers
Sales to government offices

1,678

561

2

14

2,255

Thousands of U.S. dollars

2024
Japan

North
America

EuropeAsia &
Oceania

Subtotal

Goods or services transferred at a point
in time$111,882$ 88,257$ 14,715$ 10,257$225,111

Goods or services transferred over time

16,762

1,889

1,281

99

20,031

Revenue from contracts with customers

128,644

90,14615,996

10,356245,142

-

-

-

-

-

$128,644$ 90,146$ 15,996$ 10,356$245,142

$

$

$

$

$

Sales

Other revenue
Sales to external customers
Sales to government offices©2024 ICOM INCORPORATED

4,709

27

2,345

7

79

7,140

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
13.Revenue Recognition (continued)(2) Information providing a basis for understanding revenue arising from contracts with customers.
Basic information for understanding revenue arising from contracts with customers is shown in “(m)Significant revenues and expenses ” of Note 2 “Summary of Significant Accounting Policies”.
(3) Information about the amount of revenue from contracts with existing customers at the end of the fiscal
year that are expected to be recognized in the following fiscal year or beyondi) Balance of contract assets and contract liabilities

Thousands of
U.S. dollars

Millions of yen

2024

2024

2023

Contract liabilities (Beginning balance)¥ 177

Advance payments received¥

78$ 1,169

Unearned revenue

50

26

330

Long-term unearned revenue

92

48

608

¥ 319

¥ 152

$ 2,107

Total

Thousands of
U.S. dollars

Millions of yen

2024

2024

2023

Contract liabilities (Ending balance)
¥ 114

¥ 177

Unearned revenue

72

50

476

Long-term unearned revenue

111

92

733

¥ 297

¥ 319

$ 1,962

Advance payments received

Total

$

753

Note:
1. Contract liabilities consist of advances received from customers on sales of goods and products andunearned revenue and long-term unearned revenue from customers on sales of services and other sales.
Contract liabilities are reversed as revenue is recognized.
2. Contract liabilities are included in “Other current liabilities” under current liabilities and “Other long-term
liabilities” under long-term liabilities in the consolidated balance sheet at March 31, 2024 and 2023.
3. The amount of revenue recognized for the years ended March 31, 2024 and 2023 that were included in
the balance of contract liabilities at the beginning of the years were ¥219 million ($1,446 thousand) and¥91 million, respectively.
ii) Transaction price allocated to remaining performance obligations
Since there were no significant transactions in which the originally expected contract period exceeded
one year, the practical expedient is applied and information related to amount of remaining performanceobligations and period in which revenue is expected to be recognized has been omitted.

©2024 ICOM INCORPORATED

28

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
14. Shareholders’ Equity
The Companies Act (the “Act”) provides that an amount equal to 10% of the amount to be disbursed as
distributions of capital surplus (other than the capital reserve) and retained earnings (other than the legal
reserve) be transferred to the capital reserve and the legal reserve, respectively, until the sum of the capitalreserve and the legal reserve equals 25% of the capital stock account. Such distributions can be made at any
time by resolution of the shareholders, or by the board of directors if certain conditions are met.
The Company’s legal reserve included in retained earnings at March 31, 2024 and 2023 amounted to ¥293
million ($1,935 thousand).
In addition, upon the issuance and sale of new shares of capital stock, the entire amount of the proceeds isrequired to be accounted for as capital stock, although a company may, by resolution of the board of directors,
account for an amount not exceeding one-half of the proceeds of the sale of new shares as additional paid-in
capital included in capital surplus.
Movements in treasury stock for the years ended March 31, 2024 and 2023 are summarized as follows:
Number of shares

2024
April 1, 2023

Increase

Decrease

March 31, 2024

Shares issued:
Common stock

14,850,000--

14,850,000

Treasury stock:
Common stock

497,412211-

497,623

The increase in treasury stock of 211 shares is due to purchases of 211 shares of less than one voting unit for
the year ended March 31, 2024.
Number of shares

2023
April 1, 2022

Increase

Decrease

March 31, 2023

Shares issued:
Common stock

14,850,000--

14,850,000

Treasury stock:
Common stock

497,178234-

497,412The increase in treasury stock of 234 shares is due to purchases of 234 shares of less than one voting unit for
the year ended March 31, 2023.

©2024 ICOM INCORPORATED

29

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
15. Research and Development Costs
Research and development costs included in selling, general and administrative expenses for the years ended
March 31, 2024 and 2023 are as follows:
Thousands of
U.S. dollars

Millions of yen

Research and development costs

2024

2023

2024

¥ 3,963¥ 3,862$ 26,174

16. Other Comprehensive Income
Reclassification adjustments and tax effects of other comprehensive income for the years ended March 31,
2024 and 2023 are as follows:
Thousands of
U.S. dollars

Millions of yen

2024

2023

2024

¥ 1,909¥193$ 12,608

(16)

-

(106)

Before tax effects

1,893

193

12,502

Tax effects

(579)

(59)

(3,824)

1,314

134

8,678

2

-

13

(2)

-

(13)

-

-

-

1,093

344

7,219

-

-

-

1,093

344

7,219

659

522

4,352

2

26

14

661

548

4,366

(202)

(168)

(1,334)

459

380

3,032

¥ 2,866¥ 858$ 18,929

Net unrealized holding gain on securities:
Amount arising during the year
Reclassification adjustments

Net unrealized holding gain on securities
Deferred gain on hedges:
Amount arising during the year
Reclassification adjustments
Deferred gain on hedges
Translation adjustments:
Amount arising during the year
Reclassification adjustments
Translation adjustments
Retirement benefit liability adjustments:
Amount arising during the year
Reclassification adjustments
Before tax effects
Tax effects
Retirement benefit liability adjustments
Total other comprehensive income©2024 ICOM INCORPORATED

30

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
17. Amounts Per Share
Amounts per share at March 31, 2024 and 2023 and for the years then ended are as follows:
Yen

U.S. dollars

2024

2023

¥ 4,580.77¥ 4,211.85

Basic

241.19179.39

1.59

Cash dividends

72.00

50.00

0.48

Net assets per share

2024
$

30.25

Profit attributable to owners of parent:

Net assets per share is computed based on net assets and the number of shares of common stock
outstanding at the respective year end.
Basic profit attributable to owners of parent per share is computed based on the profit attributable to ownersof parent available for distribution to shareholders of common stock and the weighted-average number ofshares of common stock outstanding during each year. Cash dividends per share represent the cash dividends
declared as applicable to the respective fiscal years.
Profit per share for the years ended March 31, 2024 and 2023 are calculated based on the following:Thousands of
U.S. dollars

Millions of yen

2024

2023

2024

Profit attributable to owners of parent¥ 3,462¥ 2,575$ 22,865

Amounts not attributable to commonshareholders

-

-

-

3,462

2,575

22,865

Profit attributable to owners of parent forcommon stockThousands of shares

2024
Average number of common stock during
the fiscal year

©2024 ICOM INCORPORATED

31

14,3522023
14,352ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
18. Segment Informationi) Outline of segment information
The Group’s reporting segments are divisions of the Group for which separate financial information isavailable, and whose operating results are reviewed regularly by the board of directors meeting of theGroup in order to allocate management resources and assess performance of operations.
The Group are primarily engaged in the manufacture and sale of telecommunication equipment. The
subsidiaries are independent business units and formulate comprehensive strategies for products andoperate business geographically.
Therefore, the Group consists of four segments based on sales by region. The four segments are“Japan” , “North America,” which primarily includes the United States and Canada; “Europe,” whichprimarily includes Germany and Spain; and “Asia & Oceania,” which primarily includes Australia, China andVietnam as of March 31, 2024 and 2023.
ii) Calculation methods used for sales, income or loss, assets and other items on each reporting
segment
The accounting policies of the segments are substantially the same as those described in the significant
accounting policies in Note 2. Segment performance is evaluated based on operating income or loss.
Intersegment sales are recorded at the same prices applied in transactions with third parties.
iii) Information as to sales, income or loss, assets and other items on each reporting segment
Information by reporting segment for the years ended March 31, 2024 and 2023 are as follows:
Millions of yen

2024
Japan

North

Asia &

EuropeAmerica

Subtotal

Oceania

Adjustments

Consolidated

I. Segment income
Sales to third parties¥ 19,478¥ 13,649¥ 2,422¥ 1,568¥ 37,117Intersegment sales

13,6984-297

Net sales

33,176

13,653

2,422

Operating income¥ 3,533¥¥ 62,852¥ 11,317¥ 1,017¥

II. Segment assets

541-¥ 37,117

13,999(13,999)-

1,865

51,116(13,999)¥ 37,117

136¥ 4,405¥ (989)¥ 3,416¥ 1,966¥ 2,413¥78,548¥(5,389)¥73,159¥¥

14¥ 1,164¥-¥ 1,164

¥

195

¥

¥

III. Other items
Depreciation and amortization
Investments in affiliates
Increase in property, plantand equipment / intangible
assets

104

29

127

-

-

-

127

-

127

1,204

121

600

16

1,941

-

1,941

Notes:
1. Segment income is reconciled with operating income booked in the Consolidated Statement of Income.
2. Adjustments for segment income were mainly related to elimination of intersegment transactions. There are no
expenses that cannot be allocated to segments.
3. Adjustments for segment assets was mainly related to unrealized gain adjustment and elimination of intersegment
transactions.

©2024 ICOM INCORPORATED

32

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
18. Segment Information (continued)iii) Information as to sales, income or loss, assets and other items on each reporting segment(continued)
Millions of yen

2023
North

Japan

Asia &

EuropeAmerica

Subtotal

Oceania

Adjustments

Consolidated

I. Segment income
Sales to third parties¥ 18,104¥ 12,465¥ 2,132¥ 1,473¥ 34,174Intersegment sales

10,9774

0179

Net sales

29,081

12,4692,132

Operating income¥ 2,406¥¥58,272¥ 8,948¥¥

II. Segment assets

477-¥ 34,174

11,160(11,160)-

1,652

45,334(11,160)¥ 34,17494¥ 3,173¥¥¥ 1,709¥ 2,196¥71,125¥(3,961)¥ 67,164

¥

¥

¥

¥

¥

¥

196

¥

¥

(323)

2,850

III. Other items
Depreciation and amortization

759

80

5

12

856

-

856

Investments in affiliates

87

-

-

-

87

-

87

Increase in property, plantand equipment / intangible
assets

721

103

14

9

847

-

847

Thousands of U.S. dollars

2024
Japan

North

Asia &

EuropeAmerica

Oceania

Subtotal

Adjustments$

Consolidated

I. Segment income$ 128,644$ 90,146$ 15,996$ 10,356$ 245,142-$ 245,142

Intersegment sales

90,470

26

-

1,962

92,458(92,458)-

Net sales

219,114

90,172

15,996

12,318337,600(92,458)$ 245,142

Operating income$ 23,334$

899$ 29,093$(6,532)$$ 415,111$ 74,744$ 12,985$ 15,937$518,777$ (35,592)$ 483,185

$

$

$

$

$

$

$

Sales to third parties

II. Segment assets

3,573

$

1,287

$

22,561

III. Other items
Depreciation and amortization
Investments in affiliates
Increase in property, plantand equipment / intangible
assets©2024 ICOM INCORPORATED

6,717

687

192

92

7,688

-

7,688

839

-

-

-

839

-

839

7,952

799

3,963

106

12,820-12,82033

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024

18. Segment Information (continued)iv) Geographical information(a) Sales
Sales categorized by country and region based on locations of customers by the Group for the years
ended March 31, 2024 and 2023 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2024
¥

Japan

11,338

2023
¥

2024

11,269$ 74,883

USA

8,564

8,451

56,562

North America (except for the USA)

3,468

2,493

22,904

Europe

6,245

5,581

41,246

Asia & Oceania

5,955

4,899

39,330

Others

1,547

1,481

10,217

Total¥ 37,117

34,174$ 245,142©2024 ICOM INCORPORATED

34¥

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
18. Segment Information (continued)iv) Geographical information(b) Property, plant and equipment
Thousands of
U.S. dollars

Millions of yen

2024

2023

2024

Japan

¥ 6,420¥

6,201$ 42,401

USA

1,525

1,325

10,072

North America (except for the USA)

19

20

125

Europe

565

19

3,732

Asia & Oceania

190

174

1,255

Others

-

-

-

Total

¥ 8,719¥ 7,739$ 57,585

Disclosure of the information by product and service for the years ended March 31, 2024 and 2023
has been omitted as sales of products and services to external customers in a single segment accountfor more than 90% of net sales in the consolidated statement of income.
Sales information by major customers for the years ended March 31, 2024 and 2023 was omitted as no single
customer accounted for 10% or more of consolidated net sales.
v) Information about amortization of goodwill and unamortized balance by reportable segment
Millions of yen

2024
North

Japan
Amortization

Asia &

EuropeAmerica

Oceania

Adjustments

Consolidated

¥ 79

¥ -

¥ -

¥ -

¥ -

¥ 79

-

-

-

-

-

-

Unamortized balance

Thousands of U.S. dollars

2024
North

Japan
Amortization
Unamortized balance©2024 ICOM INCORPORATED

Asia &

EuropeAmerica

Oceania

Adjustments

Consolidated

$ 522

$-

$-

$-

$-

$ 522

-

-

-

-

-

-

35

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2024
19. Subsequent Events
The following distribution of retained earnings of the Company, which has not been reflected in theaccompanying consolidated financial statements for the year ended March 31, 2024, was approved at theCompany’s general shareholders’ meeting held on June 25, 2024:

Cash dividends (¥72 = U.S. $0.48 per share)©2024 ICOM INCORPORATED

36

Millions of yen

Thousands of
U.S. dollars

2024

2024

¥

$

1,033

6,823

Independent Auditor’s Report

The Board of Directors
ICOM INCORPORATED

The Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of ICOMINCORPORATED and its consolidated subsidiaries (the Group), which comprise theconsolidated balance sheet as at March 31, 2024, and the consolidated statements of income,comprehensive income, changes in net assets, and cash flows for the year then ended, and notes
to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2024, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of theGroup in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Appropriateness of sales cut-off of ICOM INCORPORATED
Description of Key Audit Matter

Auditor’s Response

ICOM INCORPORATED (the “Company”)
and its consolidated subsidiaries are mainly
engaged in the sale of telecommunicationequipment. The sale of telecommunicationequipment in the Japan segment is classified as
goods or services transferred at a point in time

We mainly performed the following audit
procedures in examining the appropriatenessof the Company’s sales cut-off.

Ernst & Young ShinNihon LLC(1) Evaluation of internal controls• In order to evaluate the design andand amounted to ¥16,940 million ($111,882
thousand) (*) as described in Note 13 of thenotes to the consolidated financial statements,
which accounted for 45.6% of net sales on the
consolidated financial statements. In addition,
the Company recognizes sales that arequantitatively material in the Japan segment.

operating effectiveness of certain internal
controls over the appropriateness of thesales cut-off, we performed inspections of
relevant documents, made inquiries withthe related person in charge andconducted examinations of internal
control implementation records, based on
samples we selected.

As described in i) “Revenues from sales ofgoods and products” (m) “Significant (2) Substantive procedures
revenues and expenses” under Note 2 • In order to understand trends of the“Summary of Significant Accounting
industry’s market environment andPolicies”, the Company recognizes revenue ofbusiness activities, we held discussions
telecommunication equipment at the time ofwith management and the responsibledelivery when control over merchandise andperson in sales department.
finished products is transferred to the customer
and the Company’s performance obligation is • In order to examine whether sales arerecorded in the appropriate accounting
satisfied. For sales of goods and products
period, we selected transactions above a
within Japan, revenue is recognized at the timecertain threshold and at random from salesof shipment if the period from the time ofdata over a certain period of time before
shipment to the time when control of the goods
and after the fiscal year end and traced
and products is transferred to the customer is ashipping invoices issued by distributors,
normal period of time.
product acceptance receipts and bill ofIn this respect, there is a risk that sales are notlading.
recorded in the appropriate accounting period,• In order to examine whether sales aremainly due to the following reasons.
recorded in the appropriate accounting• The Company handles a wide variety of
period, we performed a balancetelecommunicationequipment
andconfirmation of accounts receivable fortransacts throughout the year with a large
selected samples based on the risk using
amount of transactions in the fourth
the end of the fiscal year as thequarter of the fiscal year in particular.
confirmation date.
• Although the transaction amount per • In order to examine that there were notransaction for merchandise and finishedtransactions that should be accounted for as
products is relatively small, the impact ofsales cancellations for the current fiscal
incorrect processing could be material
year, we inspected sales data over a certain
due to the large volume of transactions.
period of time after the fiscal year end and•

The Company has a sales target for amanagement goal, and since Company’ssales in the core Japan segment are an
important management indicator for
management and financial statement
users, an error in the timing of sales
reporting would have a significant impact
on the consolidated financial statements.

Ernst & Young ShinNihon LLC

reviewed whether there were any returns or
discounts above a certain threshold.

We, therefore, determined that theappropriateness of the Company’s sales cutoff in the Japan segment was the mostsignificant in our audit of the consolidated
financial statements for the current period, andaccordingly, a key audit matter.
(*)The translation of Japanese yen amounts into U.S. dollar amounts has been made on the basis
described in Note 1 to the consolidated financial statements.
Other Information
The other information comprises the information included in the Annual Report that contains
audited consolidated financial statements, but does not include the consolidated financial
statements and our auditor’s report thereon. Management is responsible for preparation anddisclosure of the other information. The Corporate Auditor and the Board of Corporate Auditors
are responsible for overseeing the Group’s reporting process of the other information.
Our opinion on the consolidated financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is toread the other information and, in doing so, consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management, the Corporate Auditor and the Board of Corporate
Auditors for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for suchinternal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Corporate Auditor and the Board of Corporate Auditors are responsible for overseeing theGroup’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated financial statements.
Ernst & Young ShinNihon LLC

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation in accordancewith accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with the Corporate Auditor and the Board of Corporate Auditors regarding,among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Corporate Auditor and the Board of Corporate Auditors with a statementthat we have complied with the ethical requirements regarding independence that are relevant toour audit of the consolidated financial statements in Japan, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, actions taken to eliminate threats or safeguards applied to reduce threats to an
acceptable level.
From the matters communicated with the Corporate Auditor and the Board of Corporate
Auditors, we determine those matters that were of most significance in the audit of theconsolidated financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Ernst & Young ShinNihon LLC

Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2024 are presented solely for convenience. Our audit also included thetranslation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made on the basis described in Note 1 to the consolidated financial
statements.

Fee-related Information
The fees for the audits of the financial statements of ICOM INCORPORATED and its
subsidiaries and other services provided by us and other EY member firms for the year ended
March 31, 2024 are 36 million yen and 1 million yen, respectively.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Ernst & Young ShinNihon LLC
Osaka, Japan
August 9, 2024

堀川 紀之
Noriyuki Horikawa
Designated Engagement Partner
Certified Public Accountant

高田 康弘
Yasuhiro Takata
Designated Engagement Partner
Certified Public Accountant

Ernst & Young ShinNihon LLC

Other Information
BOARD OF DIRECTORSAND AUDITORS(As of Jun 25, 2024)
Tokuzo Inoue

Chairman and Representative Director

Hiroshi Nakaoka

President and Representative Director

Yoshiki Enomoto

Director

Haruyuki Yoshizawa

External Director

Akifumi Honda
External Director

Yoko Murakami
External Director

Takayuki Seto
AuditorHiroshi Umemoto

External Auditor

Katsunori Sugimoto
External Auditor

EXECUTIVE OFFICERS(As of Jun 25, 2024)
Shigeyoshi Tanabe
Kenichi Noda
Mitsuhiro Nakatani
Masahiro Hasegawa
Aaron Camp
Kazuo Tabe

SUBSIDIARIES(As of March 31, 2024)

TRANSFER AGENT(As of March 31, 2024)

Icom America, Inc.
Icom (Europe) GmbH
Icom (Australia) Pty., Ltd.
Icom Spain, S.L.
PURECOM CO., LTD
ICOM ASIA COMPANY LIMITED
Wakayama Icom Inc.
Icom Information Products Inc.
Icom America License Holding LLC
ICOM CANADA HOLDINGS INC.
ICOM DO BRASIL
RADIOCOMUNICACAO LTDA.
ICOM CENTRAL AMERICA, S.DE
R.L.DE C.V.
Macrotechnos Co., Ltd.

Mitsubishi UFJ Trust and Banking
Corporation
Tokyo Office:4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-8212,
Japan
Osaka Office:6-3, Fushimimachi 3-chome,
Chuo-ku, Osaka, 541-0044,
Japan

AFFILIATES
Comforce, Inc.
Position Co., Ltd.
HEAD OFFICE DIRECTORY
1-1-32, Kamiminami, Hirano-ku,
Osaka, 547-0003, Japan
Phone: 81-6-6793-5301
Fax: 81-6-6793-5305
URL http://www.icom.co.jp/

INVESTOR RELATIONS(As of March 31, 2024)
Yoshiki Enomoto
Director
Accounting Department
1-1-32, Kamiminami, Hirano-ku,
Osaka, 547-0003, Japan
Phone: 81-6-6793-5301
Fax: 81-6-6793-5305
CORPORATE FACTS(As of March 31, 2024)
Established: July 1964
Employees: HQ 610 /Group 1,034
Paid-in capital: ¥7,081 million
Authorized shares: 34,000,000
Issued and outstanding shares:
14,850,000
Shareholders: 12,738
Stock listing: Tokyo Stock Exchange

STOCK STATUS (As of March 31, 2024）

Major shareholders

Thousands of shares%

Tokuzo Inoue

2,049

14.28

Gigapalace Inc.

1,472

10.26

UHPartners2. INC

1,379

9.61

HIKARI TSUSHIN. INC

1,185

8.26

The Icom Foundation

1,000

6.97

The Master Trust Bank of Japan, Ltd. (Trust account)

655

4.57

JVC KENWOOD Corporation

445

3.10

Custody Bank of Japan, Ltd. (Trust account)

434

3.03

Sumitomo Realty & Development Co., Ltd

357

2.49

ICOM Employee Shareholding Association

343

2.39

©2024 ICOM INCORPORATEDContact:
Icom Incorporated
CEO’s OfficeTel: +81 (0)6-6793-5301
Email: BMD＠icom.co.jp
URL:https://www.icomjapan.com/●Icom Incorporated, Icom and the ICOM logo are registered trademarks of Icom Incorporated.