YEAR ENDED MARCH 31, 2022

ICOM INCORPORATED

Financial Highlights
ICOM INCORPORATED AND SUBSIDIARIES
Years ended March 31, 2022, 2021 and 2020

Thousands of
U.S. dollars

Millions of yen

2022
28,277
1,058
1,485
1,094
1,094

Net sales
Operating income
Profit before income taxes
ProfitProfit attributable to owners of parent¥

Total assets¥

Amounts per share:
Net assets
Profit – basic
Cash dividends¥ 4,022.67
76.22
50.00

¥

63,3692021
27,941
1,890
2,259
1,737
1,737

¥

61,668¥¥2020
30,533
2,300
2,542
1,929
1,929

2022
$ 231,040
8,644
12,1338,939
8,939

61,704$ 517,763

Yen

U.S. dollars¥ 3,937.75
120.1750.00¥ 3,772.56
130.44
53.00

$

32.87
0.62
0.41

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥122.39 = U.S.$1.00, the exchange rate prevailing on March 31, 2022.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales

Operating Income(Millions of yen)

(Millions of yen)

33,000

2,300
2,500

30,53331,00027,941

28,277

1,890

2,000

29,0001,500

27,0001,000

25,000

500

1,058

0

23,000
2020

2021

2020

2022

Profit attributable to owners of parent

Total Assets(Millions of yen)

(Millions of yen)

2021

2022

63,369

1,929
1,737

2,000

1,094

1,500

61,704

61,6682020

2021

62,0001,000
60,000500
58,000

0
2020

2021

2022

2022

ICOM INCORPORATED ANNUAL REPORT 2022

1

Operating Highlights
GEOGRAPHICAL SEGMENT INFORMATION
Years ended March 31, 2022 and 2021
Millions of yen

Net sales2022¥ 23,336
9,599
1,886
1,383
(7,927)¥ 28,277

Japan
North America
EuropeAsia & Oceania
Eliminations
Consolidated total

2021¥ 24,584
8,087
1,820
1,202
(7,752)¥ 27,941

Thousands of U.S. dollars

Operating income
2022
2021
¥ 504
¥ 1,648
205
93
123
167
47
55
179
(73)
¥ 1,058¥ 1,890

Net sales2022$ 190,669
78,43015,41011,299(64,768)$ 231,040

Operating income2022$ 4,118
1,675
1,005
383
1,463
$ 8,644

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥122.39 = U.S.$1.00, the exchange rate prevailing on March 31, 2022.
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)

24,584

Japan

23,33625,000

North America
Europe20,000Asia & Oceania

15,000

9,599

8,087

10,0001,820 1,202

5,000

1,886 1,383

0
2021

2022

Operating Income(Millions of yen)

Japan
2,000

1,648

North America
Europe

1,500

Asia & Oceania

1,000

504
500

205
93

167 55

123
47

0
2021

2022

ICOM INCORPORATED ANNUAL REPORT 2022

2

Operating Highlights
OVERSEAS SALES
Years ended March 31, 2022 and 2021
Millions of yen

North America
EuropeAsia & Oceania
Other
Overseas total
Domestic total
Consolidated total

2022 (Unaudited)¥ 8,606
30.5%
4,468
15.8
3,853
13.6
971
3.4
17,89863.3
10,37936.7¥ 28,277
100.0%

Thousands of U.S. dollars

2021¥ 7,410
26.5%
4,038
14.5
3,611
12.9
635
2.3
15,69456.2
12,24743.8¥ 27,941
100.0%

2022 (Unaudited)$ 70,316
36,506
31,481
7,934
146,237
84,803$ 231,040

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥122.39 = U.S.$1.00, the exchange rate prevailing on March 31, 2022.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales 2021

Europe14.5%
Overseas
Sales

North America
26.5%

Domestic Sales
43.8%

Asia &
Other Oceania
2.3% 12.9%

Net Sales 2022

North America
30.5%

Europe15.8%

Overseas
Sales

Domestic Sales
36.7%

Other
3.4%

Asia &
Oceania
13.6%

ICOM INCORPORATED ANNUAL REPORT 2022

3

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheet
March 31, 2022

AssetsCurrent assets:
Cash and deposits (Notes 5 and 6)
Marketable securities (Notes 5,6 and 7)
Notes and accounts receivable (Note 6)
Trade notes (Note 6)
Accounts receivable (Notes 4 and 6)
Allowance for doubtful accounts

Millions of yen
2022
2021

Thousands of
U.S. dollars(Note 1)
2022

Total current assets¥ 27,077
–
–
330
4,386
(19)
4,697
12,4622,365
46,601¥ 26,323
302
5,955
–
–
(18)
5,937
10,7842,164
45,510$ 221,235––
2,696
35,836(155)
38,377
101,822
19,324
380,758

Property, plant and equipment:
Land
Buildings and structures
Machinery and equipment
Vehicles and otherConstruction in progress
Property, plant and equipment, at costLess accumulated depreciation
Property, plant and equipment, net (Note 16)

4,330
6,854
14,264240
112
25,800(18,163)
7,637

4,295
6,748
14,154248
126
25,571(17,719)
7,852

35,37956,001
116,546
1,961
915
210,802(148,403)
62,399

107
5,324
578
840
2,142
168
(28)
9,131
¥ 63,369

115
4,307
641
906
2,140
225
(28)
8,306
¥ 61,668

874
43,5004,723
6,863
17,502
1,373(229)
74,606$ 517,763

Inventories (Note 8)
Other current assets

Investments and other assets:
Investments in securities (Notes 6 and 7)
Investments in affiliates
Other
Other investments
Deferred income taxes (Notes 3 and 10)
Guarantee deposits
Intangible assets (Note 16)
Allowance for doubtful accounts
Total investments and other assets
Total assets (Note 16)

ICOM INCORPORATED ANNUAL REPORT 2022

4

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheet
March 31, 2022

Thousands of
U.S. dollars(Note 1)Millions of yen

Liabilities and net assets
Current liabilities:
Accounts payable - trade (Note 6)
Accounts payable – otherAccrued income taxes (Note 10)
Accrued expenses
Provision for accrued bonuses
Warranty reserves
Other current liabilities (Note 11)

2022

2022

2021

Total current liabilities¥ 1,652
768
165
780
508
39
187
4,099

Long-term liabilities:
Deferred tax liabilities (Notes 3 and 10)
Liability for retirement benefits (Note 9)
Other long-term liabilities (Note 11)
Total long-term liabilities

173
832
528
1,533

145
1,002
506
1,653

1,414
6,798
4,314
12,526

7,081
10,44940,418

7,081
10,44940,041

57,85685,375330,239(1,445)56,503(1,445)56,126(11,807)461,663

373
1,037
(176)
1,234
57,737¥ 63,369

230
375
(213)
392
56,518¥ 61,668

3,048
8,473
(1,438)10,083471,746$ 517,763

Net assets:
Shareholders’ equity (Note 12):
Common stock:34,000,000 shares;
Authorized –14,850,000 shares in 2022 and 2021
Issued –Capital surplus
Retained earnings (Note 17)
Less treasury stock, at cost:
497,178 shares in 2022 and 497,101 shares in 2021
Total shareholders’ equity
Accumulated other comprehensive income(Note 14):
Net unrealized holding gain on securities(Note 7 )Translation adjustments
Retirement benefit liability adjustments (Note 9)
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

¥

969
592
502
654
439
33
308
3,497

$

13,498
6,275
1,348
6,373
4,151
318
1,528
33,491

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2022

5

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of Income
Year ended March 31, 2022

Thousands of
U.S. dollars(Note 1)Millions of yen

Net sales (Notes 4, 11 and 16)
Cost of sales (Note 8)
Gross profit2022¥ 28,277
16,906
11,3712021¥ 27,941
16,26911,6722022$ 231,040
138,132
92,908

560
342
(1)
2,437
708
143
93
166
804
3,931
1,130
10,313
1,058

595
299
1
2,418
722
139
114
173
638
3,595
1,088
9,782
1,890

4,576
2,794
(8)
19,912
5,785
1,168
760
1,356
6,569
32,1199,233
84,264
8,644

116
10
(90)
318
–
(8)
81
427
1,485

80
22
–
288
(27)
(24)
30
369
2,259

948
82
(736)
2,598
–
(65)
662
3,489
12,133

376
15
391
1,094
1,094

591
(69)
522
1,737
1,737

3,072
122
3,194
8,939
8,939

Selling, general and administrative expenses:
Advertising expenses
Packing and transportation costs
Provision of allowance for doubtful accounts
Salaries and allowances
Welfare expenses
Provision for bonuses
Retirement benefit expenses (Note 9)
Depreciation and amortization
Commission fee
Research and development costs (Note 13)
Other
Total selling, general and administrative expenses
Operating income (Note 16)
Other income (expenses):
Interest and dividend income
Gain on sales of investments in securities, net (Note 7)
Loss on valuation of investments in securities (Note 7)
Foreign exchange gain, net
Commission for purchase of treasury stock
Equity in losses of affiliates
Other, net
Profit before income taxes
Income taxes (Notes 3 and 10):
Current
DeferredProfitProfit attributable to owners of parent (Note 15)

¥
¥

¥
¥

$
$

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2022

6

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement ofComprehensive Income
Year ended March 31, 2022

Millions of yen

Thousands of
U.S. dollars(Note 1)

ProfitOther comprehensive income (Note 14):
Net unrealized holding gain on securities
Translation adjustments
Retirement benefit liability adjustments
Total other comprehensive income
Comprehensive income2022¥ 1,0942021¥ 1,7372022$ 8,939

143
662
37
842
¥ 1,936

310
543
240
1,093
¥ 2,830

1,168
5,409
302
6,879
$ 15,818

Total comprehensive income attributable to:
Owners of parent¥ 1,936¥ 2,830$ 15,818

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2022

7

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of
Changes in Net Assets
Year ended March 31, 2022
Millions of yen

Balance at April 1, 2020
Profit attributable toowners of parent for
the year
Cash dividends
Purchases of treasury
stock
Other changes
Balance at April 1, 2021
Profit attributable toowners of parent for
the year
Cash dividends
Purchases of treasury
stock
Other changes
Balance at March 31,
2022

Net
unrealized
holdinggain
on securities

Translation
adjustments

Retirement
benefit liability
adjustments

Total net
assets(302)¥ (80)¥ (168)¥ (453)¥ 55,603

Number ofshares in
issue

Commonstock

CapitalsurplusRetainedearnings

14,850,000¥ 7,081¥ 10,449¥ 39,076

–
–

–
–

–
–

1,737
(772)

–
–

–
–

–
–

–
–

1,737
(772)

–
–

–
–

–
–

–
–

(1,143)
–

–
310

–
543

–
240

(1,143)
1,093

14,850,000¥ 7,081¥ 10,449¥ 40,041¥ (1,445)

¥ 230

375

¥ (213)¥ 56,518

–
–

–
–

–
–

1,094
(717)

–
–

–
–

–
–

–
–

1,094
(717)

–
–

–
–

–
–

–
–

(0)
–

–
143

–
662

–
37

(0)
842

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

Translation
adjustments

Retirement
benefit liability
adjustments

Total net
assetsTreasurystock, at cost¥¥Thousands of U.S. dollars (Note 1)

Balance at April 1, 2021
Profit attributable toowners of parent for
the year
Cash dividends
Purchases of treasury
stock
Other changes
Balance at March 31,
2022

Commonstock

CapitalsurplusRetainedearnings

Treasurystock, at costNet
unrealized
holdinggain
on securities$ 57,856$ 85,375$ 327,159$ (11,807)$ 1,879$ 3,064$ (1,740)$ 461,786

–
–

–
–

8,939
(5,859)

–
–

–
–

–
–

–
–

8,939
(5,859)

–
–

–
–

–
–

(0)
–

–
1,169

–
5,409

–
302

(0)
6,880

$ 57,856$ 85,375$ 330,239$ (11,807)$ 3,048$ 8,473$ (1,438)$ 471,746

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2022

8

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of Cash Flows
Year ended March 31, 2022

Thousands of
U.S. dollars(Note 1)Millions of yen

2022
Operating activities:
Profit before income taxes
Adjustments for:
Depreciation and amortization
Interest and dividend income
Foreign exchange gain, net
Decrease in notes and accounts receivable
Increase in inventories
Increase (decrease) in accounts payable - trade
Loss on valuation of investments in securities
Other, net
Subtotal
Income taxes paid
Net cash provided by operating activities
Investing activities:(Increase) decrease in time deposits with original
maturities in excess of three months
Proceeds from sales of marketable securities
Purchases of property, plant and equipment
Purchases of intangible assets
Purchases of investments in securities
Proceeds from sales and redemption of investments insecurities
Interest and dividend income received
Other, net
Net cash (used in) provided by investing activities
Financing activities:
Purchases of treasury stock
Cash dividends paid
Net cash used in 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 at end of year (Note 5)

¥

1,485

2021

2022

2,259

$ 12,133

1,014
(116)
(76)
1,402
(1,457)
679
90
(261)
2,760
(676)
2,084

1,236
(80)
(66)
1,049
(1,346)
(811)
–
983
3,224
(253)
2,971

8,285
(948)
(621)
11,455(11,904)
5,548
735(2,132)
22,551(5,523)17,028(2,308)
300
(630)
(21)
(1,137)

3,509–(1,254)(33)(2,021)(18,858)
2,451(5,147)(171)(9,290)

247
134
(21)
(3,436)

89
81
362
733

2,018
1,095
(172)
(28,074)

(0)
(717)
(717)

(1,169)(772)(1,941)(0)(5,859)(5,859)433(1,636)24,125¥ 22,489

210
1,973
22,152¥ 24,125

3,538(13,367)
197,116$ 183,749¥

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2022

9

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2022

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 in Japan, 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 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 matterof arithmetic computation only, and has been made at ¥122.39 = U.S.$1.00, the approximate rate of exchange in effect on March 31,
2022. This translation should not be construed as a representation that yen have been, could have been, 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 the companies which it controls
directly or indirectly. Two companies over which the Company exercises significant influence in terms of their operating andfinancial 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 unrealizedintercompany gains and losses among the Company and the subsidiaries have been entirely eliminated.
The financial statements of certain consolidated subsidiary whose fiscal year end is December 31 has been included inconsolidation on the basis 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 withbanks withdrawable on demand, and short-term investments which are readily convertible to cash subject to an insignificant riskof any changes in their value and which were purchased with 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 historical exchange rates. Adjustments resulting fromtranslating accounts denominated in foreign currencies are not included in the determination of profit in the accompanying
consolidated financial statements, but are reported 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 theyear.
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of exchange in effect atthe balance sheet date, except that receivables hedged by qualified forward foreign exchange contracts are translated at thecorresponding contract rates. Gain or loss on each translation is credited 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 andunrealized, are credited or charged to income. Held-to-maturity debt securities are stated at their amortized cost. Marketablesecurities classified as other securities are carried at fair value with any changes in unrealized holding gain or loss, net of theapplicable income taxes. Cost of securities sold is determined by the moving average method. Unquoted securities classified asother securities are carried at cost determined by the moving average method.
Securities held by the Company and its subsidiaries including investments in securities, which are not accounted for on an equity
basis, are all classified as “other securities” and have been accounted for as outlined above.

ICOM INCORPORATED ANNUAL REPORT 2022

10

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
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 of cost 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 the estimated useful lives of the respective assets asprescribed in the Corporation Tax Law of Japan, except that the straight-line method is applied to buildings (other than structuresattached to the buildings) acquired on or after April 1, 1998 and structures attached to buildings and other structures acquired on
or after 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 lives of the respective assets
as prescribed in the Corporation Tax Law of Japan. Expenditures related to the development of computer software intended forinternal use are charged to income when incurred, except if it is anticipated that this software will contribute to the generation ofincome or to future cost savings. Such expenditures are capitalized as assets and amortized by the straight-line method over an
estimated useful 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 estimate of 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 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 calculated using product repair
costs against net sales, which are attributable to the current fiscal year.
The warranties generally guarantee to customers the performance of the products sold according to product specifications which
the Group and its customers have mutually agreed and thus, is recognized provisions for product warranties.

(l) Liability for retirement benefits
Liability for retirement benefits is provided mainly at an amount calculated based on the retirement benefit obligation less thefair value of the pension plan assets. The retirement benefit obligation is attributed to each period by the straight-line method overthe 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 is recognized by the straightline method over ten years, which is within the average remaining years of service of eligible employees.

ICOM INCORPORATED ANNUAL REPORT 2022

11

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(m) Significant revenues and expenses
The Company and its domestic consolidated subsidiaries apply “Accounting Standard for Revenue Recognition” (AccountingStandards Board of Japan (“ASBJ”) Statement No. 29, March 31, 2020). Revenue is recognized at the amount expected to bereceived in exchange for applicable goods or services when the control of the promised goods or services is transferred to thecustomer.
i)

Revenues from sales of goods and products
Revenues from sales of goods and products, which mainly include sales of land mobile, amateur radios, marine radios,other radios, and information and communication equipment such as networking facilities. Revenue is recognized at the timeof delivery since it is considered that 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 the period from the time of
shipment to the time when control of the goods and products is transferred to the customer is a normal period of time.

ii)

Revenue from sales of services and other sales
Revenues from sales of services and other sales, which mainly include revenues from telecommunication services andrevenues from product-related services such as warranty, repairment and maintenance. If the performance obligation issatisfied at a point in time, revenue is recognized when the service is completed. If the performance obligation is satisfied
over time, revenue is recognized 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 whichfall within the Company’s foreign currency or foreign currency receivables holding limits. Derivative transactions are not enteredinto for speculative purposes.
Under the accounting standard for financial instruments, gain or loss on derivatives designated as hedging instruments isdeferred until the loss or gain on the underlying hedged items is recognized. Forward foreign exchange contracts which meetcertain conditions are accounted for by a method under which the foreign currency deposits and receivables are translated at theircorresponding 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 withrespect to a given fiscal year end is made by resolution of the shareholders at a general meeting held subsequent to the close of thefinancial period. The distribution of retained earnings with respect to interim financial periods is made by resolution of the boardof directors. (Please refer to Note 17.)ICOM INCORPORATED ANNUAL REPORT 2022

12

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
3. Significant Accounting Estimates(1) Recoverability of Deferred Tax Assetsi)

Recoverability of deferred tax assets as of March 31, 2022 and 2021:

Deferred tax assets (net amount)ii)

Millions of yen
2022
2021
¥
840
¥
906

Thousands of
U.S. dollars
2022
$
6,863

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 byreasonably estimating the timing and amount of expected future taxable income based on supporting materials such as
the business plan.
(b) Significant assumptions
The significant assumptions underlying the business plan to evaluate the estimate of future taxable 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 of customer demand and thelatest 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 Accounting Policies
Accounting Standard for Revenue Recognition“Accounting Standard for Revenue Recognition” ((ASBJ Statement No. 29, March 31, 2020), hereinafter “Revenue Recognition
Standard”) has been adopted from the beginning of the year ended March 31, 2022, and revenue is recognized in the amount expected
to be received in exchange for applicable goods or services when control of the promised good or service is transferred to the customer.
The Revenue Recognition Standard has been applied effective from the beginning of the year ended March 31, 2022 in accordancewith the transitional treatment prescribed in Paragraph 84 of the Accounting Standard for Revenue Recognition. However, there is no
impact on the beginning balance of retained earnings as a result of the adoption.
In addition, in the consolidated balance sheet at March 31, 2021, “trade notes and accounts receivable” presented in current assets
are presented as “trade notes” and “accounts receivable”. However, in accordance with the transitional treatment provided for in
Paragraph 89-2 of the Revenue Recognition Standard, no reclassification has been made for the previous fiscal year using the newpresentation method. In accordance with the transitional treatment provided for in Paragraph 89-3 of the Revenue Recognition Standard,notes related to revenue recognition for the prior fiscal year are omitted.

ICOM INCORPORATED ANNUAL REPORT 2022

13

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
4. Changes in Accounting Policies (continued)
Accounting Standard for Fair Value Measurement“Accounting Standard for Fair Value Measurement” ((ASBJ Statement No. 30, July 4, 2019) hereinafter “Fair Value Measurement
Standard”) has been adopted from the beginning of the year ended March 31, 2022. In accordance with the transitional treatment set
forth in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10, July 4, 2019), new accounting policies set forth in the Fair Value Measurement Standard will
also be applied prospectively. In addition, notes regarding the breakdown of fair value of financial instruments by level have been
included in Note 6, “Financial Instruments.” However, notes for the prior fiscal year have been omitted in accordance with thetransitional treatment prescribed in Paragraph 7-4 of the Implementation Guidance on Disclosures about Fair Value of Financial
Instruments (ASBJ Guidance No. 19, July 4, 2019).
(Additional Information)
Effect of COVID-19 pandemic on accounting estimates
The impact of the COVID-19 pandemic has been limited and no significant events have occurred although it has had a certain impact
on the business activities of the Group. For the recoverability of deferred tax assets, the Company made estimates assuming that certain
effects will continue to exist but will gradually diminish during the fiscal year ending March 31, 2023 based on the information available
at the time of preparation of the consolidated financial statements.

5. 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, 2022 and 2021 is summarized asfollows:

Cash and deposits
Marketable securities
SubtotalTime deposits with original maturities in excess of
three months
Marketable securities with original maturities inexcess of three months
Cash and cash equivalents¥¥

Millions of yen
2022
2021
27,077¥ 26,323–
302
27,077¥ 26,625(4,588)¥–22,489Thousands of
U.S. dollars
2022$ 221,235–$ 221,235(37,486)(2,198)¥(302)
24,125$–
183,749

6. 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 Groupobtains necessary financing through its own funds. The Group manages surplus funds through financial assets that have highlevels of liquidity. The Group uses derivatives for the purpose of reducing risk and does not enter into derivatives for
speculative purposes.

ICOM INCORPORATED ANNUAL REPORT 2022

14

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Financial Instruments (continued)(1) General information (continued)ii)

Types of financial instruments and related risk
Notes and accounts receivable are exposed to credit risk in relation to customers. In addition, trade receivables denominatedin foreign currencies are exposed to exchange rate fluctional risk.
Marketable securities and investments in securities are exposed to market risk. Those securities are composed of mainly
debt securities classified as other securities and equity securities of other companies with which it has business relationships.
Fair values of those securities are periodically reported to the meetings of board of directors.
Guarantee deposits are mostly related to lease deposit with office renting.
Most of trade accounts payable have payment due dates within two months. Those denominated in foreign currencies are
exposed to exchange rate fluctional risk.
Regarding derivatives, the Group enters into forward foreign exchange contracts to reduce the foreign 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 ofhedge accounting, hedging instruments and hedged items, hedging policy, and the assessment of the effectiveness of hedging
activities can be found in “(n) Hedge accounting” in Note 2 “Summary of Significant Accounting Policies”.

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 trade receivables, the sales
department monitors credit worthiness of main customers periodically, in principle, and monitors due dates andoutstanding balances by customer. In addition, the Group is making 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 asother securities with high credit ratings. Accordingly, the Group believes that the 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 derivativetransactions 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 inforeign currencies, the Group identifies the foreign currency exchange risk by each currency and enters into forward
foreign exchange contracts to hedge such risk.
For marketable securities and investments in securities, the Group periodically reviews the fair values 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 arespective director, in advance, approves them within the limits reported at the meeting of board of directors. Results ofderivative transactions are reported at the monthly meetings of board of directors. The consolidated subsidiaries do notenter into derivative transactions.
(c) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on the scheduled due dates)
Based on reports from each division, the accounting department of the Company prepares and updates its cash flowplans on a timely basis and maintains liquidity of assets for payment to manage liquidity risk. The consolidated
subsidiaries monitor liquidity risk in the same manner.
iv) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market
price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fairvalue, different assumptions and factors could result in different fair values.

ICOM INCORPORATED ANNUAL REPORT 2022

15

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Financial Instruments (continued)(2) Estimated fair value of financial instruments
The carrying value of financial instruments on the consolidated balance sheets at March 31, 2022 and 2021, the estimated fairvalue and the difference between them are shown in the following table. For cash and deposits, trade notes, accounts receivable
and accounts payable, they are not on the table below as most of them are settled within a short term and their fair value
approximates carrying value.
Millions of yen
2022
Carrying
value
AssetsMarketable securities andinvestments in securities
Total assets
Derivative transactions (*)

¥
¥
¥

5,315
5,315
–

Fair value

Difference

¥
¥
¥

¥
¥
¥

5,315
5,315
–

–
–
–

Thousands of U.S. dollars
2022
Carrying
Fair value
Difference
value
AssetsMarketable securities andinvestments in securities
Total assets
Derivative transactions (*)$$$

43,42743,427–$$$43,42743,427
–

$
$
$

–
–
–

(*) The value of assets and liabilities arising from derivative transactions is shown at net value.
Unquoted securities as of March 31, 2022 are as follows. They are not included in the table above.
Millions of yen
2022
¥ 116

Unlisted equity securities

Thousands of U.S. dollars
2022
$ 948

Millions of yen
2021
Carrying
value
AssetsMarketable securities andinvestments in securities
Total assets
Derivative transactions (*)

¥
¥
¥

4,601
4,601
–

Fair value

Difference

¥
¥
¥

¥
¥
¥

4,601
4,601
–

–
–
–

Financial instruments for which it is extremely difficult to determine the fair value are as follows:

Unlisted equity securities
Guarantee deposits

Millions of yen
2021
¥
123
2,140

ICOM INCORPORATED ANNUAL REPORT 2022

16

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Financial Instruments (continued)(2) Estimated fair value of financial instruments (continued)
Since there is no market price for unlisted equity securities and it is difficult to determine the fair value, they are not included
in marketable securities and investments in securities in the preceding table estimated fair value.
For guarantee deposits with no fixed repayment date, there are no market price and their future cash flow cannot be estimated.
Furthermore, as their fair value is recognized as extremely difficult to determine, they are not subject to disclosure of fair value.
i)

Redemption schedule

The redemption schedule for monetary assets, marketable securities and investments in securities with maturity dates issummarized as follows:
Millions of yen

Due within
one year
Cash and deposits¥
Note and accounts
receivable
Trade notes
Accounts receivable
Marketable securities
and investments insecurities:
Other securities
with maturity dates
Corporate bonds
Other
Total
¥

27,077

Due after
ten years¥–

Due within
one year¥

26,3232021
Due after
Due after
one yearfive years
through five through ten
years
years
¥
–
¥
–

Due after
ten years
¥

–

–

–

–

–

5,955

–

–

–

330
4,386

–
–

–
–

–
–

–
–

–
–

–
–

–
–

–
–
31,793

1,100
–
1,100

1,900
–
1,900

–
–
–

300
–
32,578

600
–
600

1,500
–
1,500

–
–
–

Due within
one year
Cash and deposits$
Trade notes l
Accounts receivable
Marketable securities
and investments insecurities:
Other securities withmaturity dates
Corporate bonds
Other
Total
$

2022
Due after
Due after
one yearfive years
throughthrough ten
five years
years
¥
–
¥
–

221,235
2,696
35,836––
259,767

¥

¥

¥

¥

¥

¥

¥

Thousands of U.S. dollars
2022
Due after
Due after
one yearfive years
Due after ten
throughthrough ten
years
five years
years
$
–
$
–
$
–
–
–
–
–
–
–

$

8,988
–
8,988

$

15,524–
15,524$–––ICOM INCORPORATED ANNUAL REPORT 2022

17

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. 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 themateriality 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 among observable valuation
inputsLevel 2: Fair values measured using inputs other than inputs included within Level 1 among observable valuation 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 eachof the inputs belongs.
Financial instruments measured at fair value
Millions of yen
2022
Level 2
Level 3

Level 1Marketable securities
and investments insecurities:
Other securities
Equity securities
Corporate bonds
Total

¥
¥

2,327
–
2,327

¥
¥

–
2,988
2,988

¥
¥

–
–
–

Total

¥
¥

2,327
2,988
5,315

Level 1$$

19,013–19,013Thousands of U.S. dollars
2022
Level 2
Level 3$$–
24,414
24,414

$
$

–
–
–

Total

$
$

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 ashaving quoted prices in active markets.

ICOM INCORPORATED ANNUAL REPORT 2022

18

19,013
24,41443,427

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
7. Marketable Securities and Investments in Securities
Marketable securities and investments in securities classified as other securities at March 31, 2022 and 2021 are summarized asfollows:
Millions of yen
Carrying
value
Securities whose carrying value
exceeds their acquisition cost:
Equity securities
Corporate bonds
Subtotal
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
Corporate bonds
Subtotal
Total

¥

¥

2,236
604
2,840

90
2,385
2,475
5,315

2022
Acquisition
cost

¥

¥

1,679
601
2,280

90
2,403
2,493
4,773

Carrying
value

Difference

¥

¥

557
3
560

¥

–
(18)
(18)
542

¥

2,089
807
2,896

112
1,593
1,705
4,601

2021
Acquisition
cost

¥

¥

1,679
804
2,483

180
1,602
1,782
4,265

Difference

¥

¥

410
3
413

(68)
(9)
(77)
336

Thousands of U.S. dollars
2022
Carrying
Acquisition
Difference
value
cost
Securities whose carrying value
exceeds their acquisition cost:
Equity securities
Corporate bonds
Subtotal
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
Corporate bonds
Subtotal
Total$ 18,270
4,935
23,205$ 13,718
4,910
18,628735
19,487
20,222$ 43,427

735
19,634
20,369$ 38,997

$

$

4,552
25
4,577

–
(147)
(147)
4,430

Since there is no market price for unlisted equity securities and it is difficult to determine the fair value, unlisted equity securities of¥123 million at March 31, 2021, are not included in the above table.
Sales of other securities for the years ended March 31, 2022 and 2021 are summarized as follows:

Sales
Aggregate gain
Aggregate loss¥

Millions of yen
2022
2021
45
¥
91
10
22
0
–

Thousands of
U.S. dollars
2022
$
368
82
0

In the year ended March 31, 2022 loss on valuation of investments in securities of ¥90 million (¥90 million for securities classified
as other securities) was recognized.
The Company recognizes loss on valuation of investments in securities in cases where the fair value at the balance sheet date of asecurity declines by more than 50% from its carrying value. The Company also recognizes loss on valuation of investments in securities
by considering the recoverability of fair value and so forth when the fair value at the balance sheet date declines by more than 30% andless than 50% from its carrying value.

ICOM INCORPORATED ANNUAL REPORT 2022

19

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
8. Inventories
Inventories at March 31, 2022 and 2021 are consisted of the following:

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

¥

¥

Millions of yen
2022
2021
4,728
¥
5,170
63
66
7,671
5,548
12,462¥ 10,784

Thousands of
U.S. dollars
2022$
38,631
515
62,676$ 101,822

Cost of sales are included loss on devaluation of inventories of ¥477 million ($3,897 thousand) and ¥220 million for the years ended
March 31, 2022 and 2021, respectively.

9. 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 for
employees.
The Company and its domestic subsidiaries may pay additional retirement benefits to employees under certain circumstances.

(2) Liability for retirement benefits for the years ended March 31, 2022 and 2021
i) The changes in retirement benefit obligation are outlined as follows (except for retirement benefit obligation calculated
by simplified method):

Retirement benefit obligation at beginning of year
Service cost
Interest cost
Actuarial loss
Retirement benefits paid
Retirement benefit obligation at end of year¥¥

Millions of yen
2022
2021
6,903
¥
6,528
218
224
57
54
8
192
(112)
(95)
7,074
¥
6,903

Thousands of
U.S. dollars
2022$
56,402
1,781
466
65
(915)
$
57,799ii) The changes in plan assets at fair value are outlined as follows (except for retirement benefit obligation calculated bysimplified method):Plan assets at fair value at beginning of year
Expected return on plan assets
Actuarial gainContributions by the employer
Retirement benefits paid
Plan assets at fair value at end of year¥¥

Millions of yen
2022
2021
6,392
¥
5,619
40
45
39
497
409
326
(112)
(95)
6,768
¥
6,392

Thousands of
U.S. dollars
2022$
52,226
327
319
3,342
(915)
$
55,299ICOM INCORPORATED ANNUAL REPORT 2022

20

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
9. Retirement Benefits Plans (continued)(2) Liability for retirement benefits for the years ended March 31, 2022 and 2021 (continued)iii) The changes in retirement benefits obligation calculated by simplified method are outlined as follows:

Retirement benefit obligation at beginning of year
Retirement benefits expenses
Retirement benefits paid
Retirement benefit obligation at end of year¥¥

Millions of yen
2022
2021
491
¥
467
48
46
(13)
(22)
526
¥
491

Thousands of
U.S. dollars
2022
$
4,012
392
(106)
$
4,298

iv) 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:

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net amount of liabilities and assets recognized inconsolidated balance sheets
Liability for retirement benefits
Net amount of liabilities and assets recognized inconsolidated balance sheetsv)¥

Millions of yen
2022
2021
7,074
¥
6,903
(6,768)(6,392)
306
511
526
491
832
832

¥

832

Thousands of
U.S. dollars
2022$
57,799(55,299)
2,500
4,298
6,798
6,798

1,002
1,002
¥

1,002

$

6,798

The components of retirement benefit expenses for the years ended March 31, 2022 and 2021 are outlined as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization:
Actuarial loss
Retirement benefit expenses¥¥

Millions of yen
2022
2021
266
¥
270
57
54
(40)
(45)
22
305

¥

40
319

Thousands of
U.S. dollars
2022
$
2,173
466
(327)

$

180
2,492

ICOM INCORPORATED ANNUAL REPORT 2022

21

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
9. Retirement Benefits Plans (continued)(2) Liability for retirement benefits for the years ended March 31, 2022 and 2021 (continued)vi) The component of retirement benefit liability adjustments included in other comprehensive income before tax effects
are outlined as follows:

Actuarial gain
Total

¥
¥

Millions of yen
2022
2021
53
¥
346
53
¥
346

Thousands of
U.S. dollars
2022
$
433
$
433

vii) The balance of retirement benefit liability adjustments recognized in accumulated other comprehensive income before
tax effects is outlined as follows:

Unrecognized actuarial loss
Total

¥
¥

Millions of yen
2022
2021
254
¥
307
254
¥
307

Thousands of
U.S. dollars
2022
$
2,075
$
2,075

viii) The plan assets by major category consist of the following:
2022

2021

Debt securities
Equity securities
Cash and deposits
Other

60.0%
28.0
1.0
11.0

60.0%
26.0
3.0
11.0

Total

100.0%

100.0%The expected long-term rate of return on plan assets is determined as a result of consideration of both the portfolio allocation
to each class at present and in the future, and long-term expected rate of return from 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, 2022 and 2021 are as
follows:

Discount rates
Expected long-term rates of return on plan assets
Expected rate of compensation increases

2022

2021

0.8%
0.6
1.3

0.8%
0.8
1.4

ICOM INCORPORATED ANNUAL REPORT 2022

22

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
10. Income Taxes
Income taxes applicable to the Company and its domestic subsidiaries comprise corporation, enterprise and inhabitants’ taxes which,in the aggregate, resulted in statutory tax rate of approximately 30.6% for the years ended March 31, 2022 and 2021. 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 rates for the years ended March 31, 2022 and 2021 as a percentage of profit
before income taxes are as follows:
2022
30.6%
0.9
1.5
(5.5)
(1.8)
0.0
0.2
0.1
0.4
1.0
(1.1)
26.3%

Statutory tax rate
Non-deductible entertainment expenses and other for income tax purposes
Per capita portion of inhabitants’ taxes
Tax credit for experimentation and research expenses
Differences in tax rates applicable to overseas subsidiaries
Unrealized gain on inventories
Equity in earnings of affiliates
Valuation allowance
Effect of Tax Cuts and Jobs Act in U.S.
Accumulated earnings tax
Other
Effective tax rates

2021
30.6%
0.5
1.0
(6.3)
(0.6)
(0.4)
0.3
(0.5)
(1.2)
0.1
(0.4)
23.1%

The significant components of deferred tax assets and liabilities at March 31, 2022 and 2021 are summarized as follows:

Millions of yen
2022
2021
Deferred tax assets:
Unrealized gain on inventories
Long-term accounts payable - other
Provision for accrued bonuses
Accrued enterprise tax
Deferred revenue
Liability for retirement benefits
Allowance for doubtful accounts
Loss on valuation of investments in securities
Accrued legal welfare expense on bonuses
Net operating loss carryforward
Loss on devaluation of inventories
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Gain on sales of property, plant and equipment
Accumulated earnings tax
Unrealized holding gain on securities
Other
Total deferred tax liabilities
Net deferred tax assets

¥

¥

208
139
153
25
7
251
13
25
24
127
151
42
1,165
(46)
1,119

(156)
(131)
(164)
(1)
(452)
667

¥

¥

278
140
133
37
8
304
12
25
21
98
62
42
1,160
(42)
1,118

(137)
(116)
(102)
(2)
(357)
761

Thousands of
U.S. dollars
2022
$

$

1,699
1,136
1,250
204
57
2,051
106
204
196
1,038
1,234
343
9,518
(376)
9,142

(1,275)(1,070)(1,340)(8)(3,693)5,449

ICOM INCORPORATED ANNUAL REPORT 2022

23

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
11. Revenue Recognition(1) Information on disaggregated revenue arising from contracts with customers
Millions of yen
2022
North
America

Japan
Sales
Goods or services transferred at a point in
time
Goods or services transferred over time
Revenue from contracts with customers
Other revenue
Sales to external customers
Sales to government offices¥

13,621

¥

9,412

¥

1,969
15,590–15,590¥734

Asia &
Oceania

Europe

¥

1,849

¥

1,199

¥

184
9,596
–
9,596

¥

37
1,886
–
1,886

¥

237

¥

1

Subtotal¥

26,081

¥

6
1,205
–
1,205

¥

2,196
28,277–28,277

¥

16

¥

988

Thousands of U.S. dollars
2022
North
America

Japan
Sales
Goods or services transferred at a point in
time
Goods or services transferred over time
Revenue from contracts with customers
Other revenue
Sales to external customers
Sales to government offices$

111,292$

76,902$

16,088
127,380–
127,380$

5,997

Asia &
Oceania

Europe$15,108

$

9,797

$

1,503
78,405–78,405$302
15,410–15,410

$

1,936

$

8

Subtotal$

213,099

$

48
9,845
–
9,845

$

17,941
231,040–
231,040

$

131

$

8,072

(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) Revenue Recognition” ofNote 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 tobe recognized in the following fiscal year or beyond
Balance of contract assets and contract liabilities
Thousands of
U.S. dollars
2022

Millions of yen
2022
Contract liabilities (Beginning balance)
Advance payments received
Deferred revenue
Long-term deferred revenue
Total
Contract liabilities (Ending balance)
Advance payments received
Deferred revenue
Long-term deferred revenue
Total

¥

¥

¥

¥

102
9
24
135

$

78
26
48
152

$

$

$

833
74
196
1,103

637
213
392
1,242

ICOM INCORPORATED ANNUAL REPORT 2022

24

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
11. Revenue Recognition (continued)
Note:
1. Contract liabilities consist of advances received from customers on sales of goods and products and deferred revenue and longterm deferred 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 longterm liabilities in the consolidated balance sheet at March 31, 2022.
3. The amount of revenue recognized for the year ended March 31, 2022 that was included in the balance of contract liabilities at the
beginning of the year was ¥103 million yen ($842 thousand).

12. Shareholders’ Equity
The Companies Act (the “Act”) provides that an amount equal to 10% of the amount to be disbursed as distributions of capitalsurplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve and thelegal reserve, respectively, until the sum of the capital reserve 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, 2022 and 2021 amounted to ¥293 million ($2,394 thousand).
In addition, upon the issuance and sale of new shares of capital stock, the entire amount of the proceeds is required 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 ofthe 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, 2022 and 2021 are summarized as follows:
Number of shares
2022
Shares issued:
Common stock
Treasury stock:
Common stock

April 1, 2021

Increase

Decrease

March 31, 2022

14,850,000––

14,850,000

497,101

77–

497,178

The increase in treasury stock of 77 shares is due to purchases of 77 shares of less than one voting unit for the year ended March 31,
2022.
Number of shares
2021
Shares issued:
Common stock
Treasury stock:
Common stock

April 1, 2020

Increase

Decrease

March 31, 2021

14,850,000––

14,850,000

111,063

386,038–

497,101

The increase in treasury stock of 386,038 shares is due to purchases of 385,900 shares by the resolution of the board of directors andpurchases of 138 shares of less than one voting unit for the year ended March 31, 2021.

ICOM INCORPORATED ANNUAL REPORT 2022

25

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
13. Research and Development Costs
Research and development costs included in selling, general and administrative expenses for the years ended March 31, 2022 and2021 are as follows:¥

Research and development costs

Thousands of
U.S. dollars
2022$
32,119Millions of yen
2022
2021
3,931
¥
3,595

14. Other Comprehensive Income
Reclassification adjustments and tax effects of other comprehensive income for the years ended March 31, 2022 and 2021 are as
follows:

Millions of yen
2022
2021
Net unrealized holding gain on securities:
Amount arising during the year
Reclassification adjustments
Before tax effects
Tax effects
Net unrealized holding gain on securities

¥

116
90
206
(63)
143

¥

447
–
447
(137)
310

Thousands of
U.S. dollars
2022
$

948
735
1,683
(515)
1,168

Translation adjustments:
Amount arising during the year
Reclassification adjustments
Translation adjustments

662
–
662

579
(36)
543

5,409
–
5,409

Retirement benefit liability adjustments:
Amount arising during the year
Reclassification adjustments
Before tax effects
Tax effects
Retirement benefit liability adjustments
Total other comprehensive income

31
22
53
(16)
37
842

306
40
346
(106)
240
1,093

253
180
433
(131)
302
6,879

¥

¥

$

15. Amounts Per Share
Amounts per share at March 31, 2022 and 2021 and for the years then ended are as follows:Yen
Net assets
Profit attributable to owners of parent:
BasicCash dividends¥

2022
4,022.67
76.22
50.00

¥

2021
3,937.75
120.17
50.00

U.S. dollars
2022
$
32.87
0.62
0.41

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 owners of parent available for
distribution to shareholders of common stock and the weighted-average number of shares of common stock outstanding during eachyear. Cash dividends per share represent the cash dividends declared as applicable to the respective fiscal years.

ICOM INCORPORATED ANNUAL REPORT 2022

26

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Informationi)Outline of segment information
The Group’s reporting segments are divisions of the Group for which separate financial information is available, and whose
operating results are reviewed regularly by the board of directors meeting of the Group in order to allocate management resources
and assess performance of operations.
The Group are primarily engaged in the manufacture and sale of telecommunications equipment. The subsidiaries are
independent business units and formulate comprehensive strategies for products and operate 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,” which primarily includes Germany and Spain; and “Asia &Oceania,” which primarily includes Australia, China and Vietnam as for March 31 2022 and 2021.

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 inNote 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, 2022 and 2021 are as follows:

North
AmericaJapan
I. Net sales and operating income
Sales to third parties
Intersegment sales
Net sales
Operating income
II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliates
Increase in property, plant andequipment / intangible assets¥ 15,590
7,746
23,336
¥
504

¥

¥

¥

9,596
3
9,599
205

¥

1,886
0
1,886
123

¥ 55,323

¥

7,610

¥

¥

¥

68
–

¥

929
107
530

70

II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliates
Increase in property, plant andequipment / intangible assets¥ 16,924
7,660
24,584¥ 1,648¥ 54,884
¥

1,159
115
1,181

¥

¥

¥ 28,277
7,927
36,204
¥
879

¥

¥

1,205
178
1,383
47

1,410

¥

2,042

6
–

¥

11
–

¥

¥
¥

6,779

¥

63
–

¥

28,277–28,277
1,058¥ 66,385¥(3,016)¥63,369

¥

¥

–
–

¥

1,014
107

1,014
107
629

Millions of yen
2021
Asia &
Oceania
Subtotal
¥

¥

1,820
–
1,820
167

¥

1,178

¥

5
–
8

¥

–
(7,927)(7,927)179

23

Europe

8,077
10
8,087
93

40

Eliminations Consolidated

6

North
AmericaJapan
I. Net sales and operating income
Sales to third parties
Intersegment sales
Net sales
Operating income

EuropeMillions of yen
2022
Asia &
Oceania
Subtotal

¥

¥

1,120
82
1,202
55

¥

1,915

¥

9
–
3

¥

27,941
7,752
35,693
1,963¥

64,756

¥

1,236
115
1,232

¥

–

629

Eliminations Consolidated¥¥–(7,752)(7,752)(73)¥¥

27,941–
27,941
1,890¥(3,088)¥61,668

¥

–
–

¥

1,236
115

–

ICOM INCORPORATED ANNUAL REPORT 2022

1,232

27

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)iii) Information as to sales, income or loss, assets and other items on each reporting segment (continued)

North
AmericaJapan
I. Net sales and operating income
Sales to third parties
Intersegment sales
Net sales
Operating income
II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliates
Increase in property, plant andequipment / intangible assets

Thousands of U.S. dollars
2022
Asia &
EuropeOceania
Subtotal$ 127,380
63,289190,669$
4,118$$ 15,410
015,410$ 1,005$$

78,40525
78,4301,675$ 452,022$

62,178

$

$

556
–

7,590
874
4,330

Eliminations

Consolidated

$

$

$

–
(64,768)(64,768)
1,463$

231,040–
231,040
8,644

$

$

9,845
1,454
11,299383$

231,040
64,768295,808
7,181$ 11,521$

16,684$542,405$(24,642)$

517,763

$

$

90
–

$

8,285
874

$

–
–

$

8,285
874

49
–

572

49

188

5,139

–

5,139

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, 2022
and 2021 were summarized as follows:

2021
12,247
6,184

Thousands of
U.S. dollars
2022$
84,80356,353

1,226
4,038
3,611
635
27,941

13,96336,506
31,481
7,934
231,040

Millions of yen
Japan
USA
North America(except for the USA)
EuropeAsia & Oceania
Other
Total

¥

¥

2022
10,379
6,897
1,709
4,468
3,853
971
28,277¥¥$ICOM INCORPORATED ANNUAL REPORT 2022

28

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)iv) Geographical information(b) Property, plant and equipment

2021
6,621
1,053

Thousands of
U.S. dollars
2022$
51,230
9,527

8
12
158
7,852

65
90
1,487
62,399Millions of yen
Japan
USA
North America(except for the USA)
EuropeAsia & Oceania
Total

¥

¥

2022
6,270
1,166
8
11
182
7,637

¥

¥

$

Disclosure of the information by product and service for the years ended March 31, 2022 and 2021 has been omitted as
sales of products and services to external customers in a single segment account for more than 90% of net sales in the
consolidated statement of income.
Sales information by major customer for the years ended March 31, 2022 and 2021 was omitted as no single customer accounted for
10% or more of consolidated net sales.

17. Subsequent Events
The following distribution of retained earnings of the Company, which has not been reflected in the accompanying consolidated
financial statements for the year ended March 31, 2022, was approved at the Company’s general shareholders’ meeting held on June
28, 2022:

Cash dividends (¥25 = U.S.$0.20 per share)

Millions of yen
2022
¥
359

Thousands of
U.S. dollars
2022
$
2,933

ICOM INCORPORATED ANNUAL REPORT 2022

29BOARD OF DIRECTORSAND AUDITORSTokuzo Inoue
Chairman and Representative Director

Hiroshi Nakaoka
President and Representative Director

Kenichi Kojiyama
Director

Haruyuki Yoshizawa
Outside Director

Akifumi Honda
Outside Director

Yoko Murakami
Outside Director

Takayuki Seto
AuditorHiroshi Umemoto
Outside Auditor

SUBSIDIARIESTRANSFER AGENT

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.

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

Outside Auditor

Comforce Inc.
Position Co., Ltd.

EXECUTIVE OFFICERS

HEAD OFFICE DIRECTORY

Shigeyoshi Tanabe
Yoshiki Enomoto
Kenichi Noda
Mitsuhiro Nakatani
Masahiro Hasegawa

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/

Katsunori Sugimoto

INVESTOR RELATIONS
Keiichi Uehata
General Manager of Business
Management 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, 2022)
Established: July 1964
Employees: 596
Paid-in capital: ¥7,081 million
Authorized shares: 34,000,000
Issued and outstanding shares:
14,850,000
Shareholders: 12,554
Stock listing: Tokyo Stock Exchange(As of March 31, 2022)
Major shareholders
Tokuzo Inoue
Gigapalace Inc.
HIKARI TSUSHIN, INC.
UHPartners2, INC.
The Icom Foundation
The Master Trust Bank of Japan, Ltd. (Trust account)
JVC KENWOOD Corporation
Sumitomo Realty & Development Co., Ltd.
Meiji Yasuda Life Insurance Company
ICOM Employee Shareholding Association

Thousands of shares
2,049
1,472
1,446
1,379
1,000
681
445
357
326
319