Consolidated Financial Statements
USHIO INC.
Year ended March 31, 2022 with
Independent Auditor’s ReportIndependent Auditor’s Report

The Board of Directors
USHIO INC.
OpinionWe have audited the accompanying consolidated financial statements of USHIO INC. (theCompany) and its consolidated subsidiaries (the Group), which comprise the consolidatedbalance sheet as at March 31, 2022, and the consolidated statements of income, comprehensive
income, changes in net assets, and cash flows for the year then ended, and notes to theconsolidated 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, 2022, 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
the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence wehave obtained is sufficient and appropriate 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 thesematters.
Impairment of non-current assets in the imaging equipment business
Description of Key Audit Matter

Auditor’s Response

The Company and certain consolidated
subsidiaries manufacture and sell cinema andgeneral projectors (hereinafter referred to as“projectors”) to customers worldwide.
However, due to the spread of the novel
coronavirus infection (hereinafter referred toas “COVID-19”), temporary closures of movie
theaters and restrictions on events occurred
mainly in Europe and the United States ofAmerica. In the current fiscal year, theresumption of economic activities promoted

We performed the following audit
procedures on the estimates of total
undiscounted future cash flows for the purposeof determining whether it is necessary torecognize impairment losses on non-current
assets in the imaging equipment business. In
addition, we involved the work of acomponent team in the audit for the imaging
equipment business.

the resumption of movie theaters and events,
but COVID-19 affected demand at movie
theaters,
commercial
facilities,
andamusement parks.
As a result, impairment indicators wereidentified for the asset group in the imaging
equipment business, which includes projector
manufacturing facilities. In order to determine
whether it is necessary to recognize
impairment losses, estimates of future cash
flows are necessary.
Furthermore, as of the year end,
uncertainties still remain about the future
situation for energy and raw material prices.
The impact of supply chain disruptions and thesituation between Russia and Ukraine may
cause further increases in energy and raw
material prices.
External factors such as market recovery
and growth, including when COVID-19 willend, and uncertainties, such as price increases,
affect future cash flows.
As described in the Notes to Consolidated
Financial Statements (Significant Accounting
Estimates), the Company has not recognized
any impairment losses during the fiscal year
ended March 31, 2022 for the asset group of
the imaging equipment business related toproperty, plant and equipment of 7,865 million
yen and intangible assets of 782 million yen
since the total undiscounted future cash flows
generated from the asset group exceeded thenet book values of each asset group. Future
cash flows are estimated mainly based on thebusiness plans authorized by the Board of
Directors and growth rate in subsequent
periods. The key assumptions in the future
cash flows are sales growth, raw material
costs, labor costs and operating expenses suchas logistics expenses.
Projections of sales growth and operating
expenses, which are major assumptions usedby the Company, are particularly importantbecause they are significantly affected by thecontainment of COVID-19, market recovery,
and rising prices, as described above. The
estimates of future cash flows, including theseassumptions, are subject to a high degree of
uncertainty and the book values of the•We evaluated the design and operating
effectiveness of internal controls related tothe determination of the necessity ofrecognition of impairment losses.
・ To evaluate the accuracy of management’s
estimates, business plans and performancein the previous periods were compared.
・We compared periods for estimating future
cash flows to the remaining useful lives ofmajor assets.
• We evaluated the consistency of future cash
flows with the business plans authorized by
the Board of Directors.
・ Important assumptions, including theeffects of COVID-19, the situation in Russia
and Ukraine, and rising prices, werediscussed with management and comparedwith available external data.
• A sensitivity analysis was performed on
important assumptions taking into accountfuture fluctuation risks.

corresponding non-current assets are alsomaterial. Based on the above factors, we havedetermined that this is a key audit matter.
Revenue recognition in the optical equipment business of lithography equipment and EUV
light sources
Description of Key Audit Matter

Auditor’s Response

As described in the Notes to Consolidated
Financial Statements (Segment Information,etc.), the Company’s consolidated net sales
include sales to external customers in the
optical equipment business segment of 48,386
million yen, an increase of 9,387 million yen,or approximately 24%, from the previous
fiscal year.
Products in the optical equipment businessinclude split projection lithography equipment
for cutting-edge IC package substrates anddirect writing lithography equipment for
printed circuit boards manufactured and soldby the Company and certain consolidated
subsidiaries, as well as EUV light sources formask inspection required for EUV lithography
used in next-generation semiconductor
manufacturing where ultra-miniaturization isprogressing.
Sales of above-mentioned lithographyequipment and EUV light sources are affectedby the semiconductor-related market and havebeen increasing in recent years due to thegrowing demand for 5G in practicalapplications and the server demand for data
centers, and the increase in demand for nextgeneration semiconductors. On the other hand,in the fiscal year under review, due to a rapid
increase in demand, there was a supply
shortage of parts and materials, resulting in arise in raw material prices and supply chain
disruptions. However, the Company andcertain consolidated subsidiaries strengthened
their production systems by expanding
production facilities and reviewing theirprocurement and production policies.
As a result, lithography equipment and EUV
light sources are major contributors to theincrease in sales to external customers in the
optical equipment business segment and have

We performed the following audit
procedures related to the timing andappropriateness of revenue recognition in the
optical equipment business of lithographyequipment and EUV light sources . In addition,
component teams were involved concerning
revenue recognition by subsidiaries.
• The effectiveness of the development andoperation of internal controls related torevenue recognition was evaluated.
・To ensure that sales of lithography equipment
and EUV light sources were consistent withthe market and business trends consideredby auditors, such information was comparedwith the external data available on thesemiconductor market and semiconductor
equipment manufacturers, manufacturing
capacity associated with the increase ofcapital investment, and manufacturing costs
such as the purchase of raw materials.
• To identify performance obligations, productsales agreements and maintenance service
agreements with key customers were
inspected and inquiries were made of
relevant business units.
- To examine the necessity of combining
contracts and the separate selling price, we
inquired of the related business divisions
about the timing of the conclusion ofimportant contracts and selling prices werecompared with the previous period.
- To confirm that the performance obligations
relating to the sales of the products oflithography equipment and EUV lightsources were satisfied, the order forms andacceptance documents obtained from thecustomers with respect to sales having highquantitative materiality were inspected.

a significant impact on the Company’s - To confirm that additional costs for fulfilling
operating results.
the performance obligations after sales
Moreover, as product sales of theseaccounting had not been recorded, thelithography equipment and EUV light sources
details of the costs were inspected andrequire high performance and steady operation
related inquiries were made with the related
through cutting-edge technologies, revenue isdivisions.
recognized when the customer completes the ・ To assess the accuracy of the variableconfirmation of agreed performance, asconsideration for maintenance services, we
described in the note (Revenue Recognition).
made inquiries with persons responsible
In addition, after-sales maintenance services
about the status of the agreements withare recognized as revenue over time or whencustomers after the end of the period and we
maintenance services are provided, depending
inspected the operating records submitted toon the terms and conditions of the contract.
customers and the agreements based on
However, the service specifications havesuch records.
become more diverse and the terms andconditions of the contracts have become more
complex, and for some products, a variableconsideration based on the product’s capacity
utilization rate is included.
As described above, high performance andsteady operation are particularly important interms of generating sales of lithographyequipment and EUV light sources. Therefore,
in many cases, it is necessary to makejudgments in accordance with actual
conditions in order to satisfy performanceobligations through inspection of customer
acceptances. In addition, the estimation of theconsideration is subject to uncertainty and issubjective.
In addition to the above, the “AccountingStandard for Revenue Recognition” (ASBJ
Statement No. 29) was adopted effective fromthe beginning of the current fiscal year. In
order to properly implement accounting
policies in accordance with this standard, it has
become necessary to consider various types ofcontracts with customers. In particular, theexamination of whether or not combining
contracts between product sales andmaintenance services and allocating thetransaction prices, which were not stipulated
in the previous accounting standards, arenecessary, and the such examination highly
complex.
As a result, we have determined that thetiming and appropriateness of revenue
recognition in the optical equipment businessof lithography equipment and EUV lightsources are key audit matters.
Other Information
The other information comprises the information included in the disclosure document that
contains audited consolidated financial statements but does not include the consolidated
financial statements and our auditor’s report thereon.
We have concluded that the other information does not exist. Accordingly, we have not
performed any work related to the other information.
Responsibilities of Management, the Audit and Supervisory Committee for theConsolidated 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, andfor such internal 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 Audit and Supervisory Committee is responsible for overseeing the Group’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 toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
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 tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour 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 ofaccounting estimates and related disclosures made by management.

・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting 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 tocontinue 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 ourauditor’s report. However, future events or conditions may cause the Group to cease tocontinue 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 the underlying transactions and events in a manner that achieves fair presentationin accordance with accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance ofthe group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit and Supervisory Committee 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 Audit and Supervisory Committee with a statement that we have compliedwith the ethical requirements regarding independence that are relevant to our audit of theconsolidated financial statements in Japan, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
From the matters communicated with the Audit and Supervisory Committee, we determine thosematters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.
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 ofJapan.

Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2022 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 4 (10) to the consolidated financial
statements.
Ernst & Young ShinNihon LLC
Tokyo, Japan
July 28, 2022

北 本

佳永子

Designated Engagement Partner
Certified Public Accountant

須

山 誠一郎

Designated Engagement Partner
Certified Public Accountant

Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheet
As of March 31, 2021

As of March 31, 2022

(Millions of yen)

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, andcontract assets (*1)
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Property, plant and equipment, net
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities (*2)
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 1 -73,67034,024

88,687-

724,508--

35,292

288,3112,915
22,885
17,884
17,110
10,585(2,716)
176,359

4,937
26,16920,282
18,891
10,134(2,686)
201,708

40,335
213,782
165,690
154,328
82,795(21,945)
1,647,806

44,919(27,943)
16,97526,314(19,006)
7,307
8,650
2,268
38,114(28,494)
9,620
44,822

47,161(29,767)
17,39327,875(20,212)
7,662
8,630
2,708
41,498(31,730)
9,768
46,162385,274(243,180)
142,093
227,722(165,121)
62,60070,501
22,122
339,010(259,212)
79,798377,116

335
3,075
3,411

235
2,755
2,991

1,924
22,512
24,43656,364
517
1,994
5,391
1,950
(535)
65,682
113,915290,275

59,146
15
4,135
5,592
1,924
(580)
70,234
119,388
321,096

483,184
125
33,78745,685
15,724(4,745)
573,762
975,3142,623,121As of March 31, 2021

As of March 31, 2022

(Millions of yen)

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

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement
benefits
Provision for directors' stock payment
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares, at cost
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets- 2 -16,356
6,058
3,520
1,056
2,021
2,355
0
16,63948,007

21,164
2,185
16,402
3,828
14,388
2,699
2,597
9,126
72,393

172,896
17,856
133,993
31,274
117,547
22,053
21,22374,554
591,398

15,056
7,005

7,823

63,912

286

270

2,206

87
4,098
272
4,280
31,08779,094

146
4,054
302
903
13,50085,893

1,194
33,1232,469
7,381
110,288
701,687

19,556
27,727
152,448(9,055)
190,676

19,556
27,727
161,877(9,032)200,129

159,760
226,513
1,322,423(73,788)
1,634,909

18,28021,399174,821(3)
3,582(1,433)

14,186(598)

115,897(4,886)

20,42634,988285,832

77
211,180
290,27584
235,202
321,096692
1,921,434
2,623,121

2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales (*1)
Cost of sales (*2)
Gross profit
Selling, general and administrative expenses(*3, 4)
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Realized and unrealized profit on trading
securities, net
Gain on investments in investment
partnerships
Gain on specified money in trust
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using
equity method
Provision of allowance for doubtful accounts
Loss on specified money in trust
Settlement payments
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets (*5)
Gain on sales of investment securities
Gain on change in ownership interest in
equityTotal extraordinary income
Extraordinary losses
Loss on retirement of non-current assets (*6)
Loss on sales of non-current assets (*7)
Impairment loss (*8)
Loss on sales of investment securities
Loss on valuation of investment securities
Business structure improvement expenses (*9)
Loss on temporary closure (*10)
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)
118,558
78,71939,839(Millions of yen) (Thousands of U.S. dollars)
148,821
1,215,765
94,792
774,384
54,029441,381

Profit attributable to non-controlling interests
Profit (loss) attributable to owners of theparent- 3 -39,07440,960334,618764

13,068

106,762

1,010
884
-

670
914
377

5,480
7,471
3,082

284

207

1,694

129

26

219

213
1,432
447
4,402

468
338
3,004

3,825
2,768
24,542

442
1,015

329
-

2,688
-

80

86

704

6
214
1,759
3,407

101
119
240
877
15,195

832
979
1,962
7,167
124,137

53
278

1,153
17

9,421
145

507

-

-

838

1,171

9,566

121
25
143
61
320
2,129
1,312
4,115
130
1,492
(675)
817
(687)

98
11
164
15
1
161
151
603
15,7625,470(2,327)
3,143
12,619

806
91
1,341
125
8
1,321
1,239
4,934
128,769
44,687(19,009)25,677103,092

0

13

106

(687)

12,606

102,986

Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2021
Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to;

Fiscal year ended
March 31, 2022

(Millions of yen) (Millions of yen) (Thousands of U.S. dollars)(687)
12,619103,092

Owners of the parent
Non-controlling interests

- 4 -

6,405

3,119

25,484

6
4,863
2,790

3
10,553835

28
86,217
6,825

(36)

56

465

14,02913,342

14,56927,188

119,020
222,112

13,341

27,169221,950

1

19

161

3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period

Capital surplus

19,556

Retained earnings

Treasury shares, at cost

Total shareholders' equity

156,082(9,148)194,218

27,727

Changes of items during period

Dividends from surplus(3,141)(3,141)

Loss attributable toowners of the parent

(687)

(687)
(3)

Purchase of treasury shares
Disposal of treasury shares

(3)

96

Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

96

193

193
-

-

-

(3,634)93(3,541)

19,556

27,727

152,448(9,055)

190,676

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities

Balance at beginning ofcurrent period

11,874Foreigncurrencytranslation
adjustment

Deferred
gains orlosses onhedges(10)(1,242)Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests(4,223)

6,397

89

Total net
assets200,705

Changes of items during period

Dividends from surplus(3,141)

Loss attributable toowners of the parent(687)

Purchase of treasury shares(3)
96

Disposal of treasury shares

Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

193
6,405

6

4,825

2,790

14,028(12)

14,016

6,405

6

4,825

2,790

14,028(12)

10,474

18,280(3)

3,582(1,433)

20,426

77

211,180- 5 -Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies

Capital surplus

19,556

Retained earnings

Treasury shares, at cost

Total shareholders' equity

152,448(9,055)

190,676

27,727(35)

Restated balance

19,556

27,727(35)

152,412(9,055)

190,641

Changes of items during period

Dividends from surplus(3,141)(3,141)

Profit attributable toowners of the parent

12,606

12,606

Purchase of treasury shares

(5)

(5)

Disposal of treasury shares

28

28

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

-

-

9,465

22

9,487

19,556

27,727

161,877(9,032)200,129

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

18,280

Deferred
gains orlosses onhedges(3)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

3,582(1,433)

20,426

77

Total net
assets211,180(35)

18,280(3)

3,582(1,433)

20,42877

211,145

Changes of items during period

Dividends from surplus(3,141)

Profit attributable toowners of the parent

12,606

Purchase of treasury shares(5)

Disposal of treasury shares

28

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

3,119

3

10,603835

14,562

6

14,5693,119

3

10,603835

14,562

6

24,057

21,399-14,186(598)

34,98884

235,202- 6 -Fiscal year ended March 31, 2022
(Thousands of U.S. dollars)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

159,760

Retained earnings

Treasury shares, at cost

Total shareholders' equity

1,245,388(73,973)

1,557,688

226,513(287)
159,760

226,513(287)

1,245,101(73,973)

1,557,401

Changes of items during period

Dividends from surplus(25,663)(25,663)

Profit attributable toowners of the parent

102,986

102,986

Purchase of treasury shares

(43)

(43)

Disposal of treasury shares

228

228

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period--

77,322

185

77,507

159,760

226,513

1,322,423(73,788)

1,634,909

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

149,337

Deferred
gains orlosses onhedges(28)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

29,270(11,711)

166,867

635

Total net
assets1,725,192(287)

149,337(28)

29,270(11,711)

166,867635

1,724,904

Changes of items during period

Dividends from surplus(25,663)

Profit attributable toowners of the parent

102,986

Purchase of treasury shares(43)

Disposal of treasury shares

228

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

25,48428

86,626

6,825

118,96456

119,02125,48428

86,626

6,825

118,96456

196,529

174,821-

115,897(4,886)285,832692

1,921,434- 7 -4) Consolidated Statement of Cash Flows
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)

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

Operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in net defined benefit liability
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Business structure improvement expenses
Interest and dividend income
Subsidies for employment adjustment
Loss (gain) on change in ownership interest
in equity
Interest expenses
Loss (gain) on trading securities
Share of loss (profit) of entities accounted
for using equity method
Settlement payments
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade

130
6,988
143
41
359

15,762
6,939
164
(55)
163

128,769
56,692
1,341
(453)
1,332

592

(360)

(2,941)2,129(1,895)(1,432)161(1,585)
(468)

1,321
(12,952)(3,825)

(507)

-

-

442
(284)

329
(207)

2,688
(1,694)

80

86

704

(27)
121
(216)
320

119
(1,142)
98
(2)
1

979
(9,329)
806
(19)
8

6,880

474

3,878

(472)

(4,329)(35,371)(2,446)

4,142

33,842

-

673

5,498

Increase (decrease) in advances received

1,873

-

-

Other
SubtotalInterest and dividends received
Interest paid
Subsidy income for employment adjustment
Payment of business structure improvement expenses
Income taxes paid
Net cash provided by (used in) operating activities

1,166
13,988
2,054
(437)
1,272
(776)
(1,584)
14,517641
21,607
1,641
(333)
688
(495)
(1,479)21,6285,243
176,519
13,406(2,722)
5,621(4,051)(12,085)
176,688

Increase (decrease) in contract liabilities- 8 -Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)

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

Investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Payments for acquisition of business
Payments of long-term loans receivableCollection of long-term loans receivable
Other
Net cash provided by (used in) investing activities
Financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Proceeds from issuance of new shares of
consolidated subsidiaries to a third party
Net cash provided by (used in) financing
activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries fromconsolidation
Cash and cash equivalents at end of year (*)- 9 -(6,819)
5,448
(10)
30
(85)
1,835
(6,304)94(483)(2,395)(10,449)
7,329
(38)
326
(89)
1,472
(5,958)1,545(235)(3,652)(85,364)
59,874
(316)
2,667
(729)
12,027(48,672)
12,628(1,923)(29,837)

5,255

3,903

31,892

-

(52)

(425)

(17)
0
31
(3,418)

(10)
370
18
(5,519)

(89)
3,028
150
(45,089)

2,646(3,960)(32,354)

5,778(6,564)(3)(3,141)(3,520)(5)(3,139)(28,755)(43)(25,649)

500

-

-

(784)

(10,625)(86,803)

1,575

5,717

46,707

11,890

11,20091,50359,04670,418575,267

(517)

-

-

70,41881,619666,770

Notes to Consolidated Financial Statements(Significant Matters Forming the Basis of Preparation of Consolidated Financial Statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 50(2) The changes in the scope of consolidation for the fiscal year ended March 31, 2022 are as
follows:(Exclusion)・ One company excluded from the scope of consolidation due to mergers between
consolidated subsidiaries
CHRISTIE TRADE DEVELOPMENT (SHANGHAI) CO., LTD.

2. Application of equity method(1) Number of associates under equity method: One
Name of major company:
KA Imaging Inc.
(2) The associate that is not accounted for using the equity method (Hokkaido Saladpaprika Co.,
Ltd.) is excluded from the scope of the equity method since such exclusion has an immaterial
effect on the consolidated financial statements of USHIO INC. (the “Company”) in terms of
profit or loss (amount corresponding to the Company’s equity position), retained earnings(amount corresponding to the Company’s equity position) and others, and the entity, as a whole,is not material.
(3) The fiscal year-end dates of certain companies accounted for using the equity method are
different from the consolidated fiscal year-end date. In preparing the consolidated financial
statements, the Company uses the financial statements of these companies as of their fiscal yearend.
3. Fiscal years, etc. of consolidated subsidiaries
The consolidated subsidiaries whose fiscal year end is different from the consolidated fiscal
year end are as follows:
Company nameFiscal year-end date

USHIO (SUZHOU) CO., LTD.
USHIO SHANGHAI, INC.

December 31*1
December 31*1

USHIO (GUANGZHOU) CO., LTD.
USHIO (SHAOGUAN) CO., LTD.

December 31*1
December 31*1

USHIO MEDICAL TECHNOLOGY (SUZHOU) CO., LTD.
CHRISTIE DIGITAL SYSTEMS (SHANGHAI) Co., LTD.

December 31*1
December 31*1

USHIO SHENZHEN, INC.
CHRISTIE DIGITAL SYSTEMS (SHENZHEN) CO., LTD.

December 31*1
December 31*1

United Designers of Architectural Lighting, Inc. December 31*1
*1 Provisional financial statements as of the consolidated fiscal year-end date are used forthese companies.

- 10 -

4. Accounting policies(1) Valuation bases and methods for significant assets(a) Securities
1) Trading securities
Carried at fair value (the cost of securities sold is calculated by the moving-averagemethod)2) Held-to-maturity securities
Carried at amortized cost (straight-line method)3) Available-for-sale securities
Other than stocks, etc. without market prices:
Carried at fair value (Valuation difference is stated as a component of net assets in the
consolidated balance sheets, the cost of securities sold is calculated by the movingaverage method.)
Stocks, etc. without market prices:
Carried at cost using the moving-average method
4) Investments in an investment limited partnership and other similar partnerships (deemed as
securities according to Article 2, paragraph 2 of the Financial Instruments and Exchange
Act)
Carried at their corresponding equity value, based on the latest financial statements
available prepared on the financial reporting dates as specified in the respective
partnership agreements.
(b) Derivatives
Carried at fair value(c) Money held in trust for investment purposes
Carried at fair value(d) Inventories
1) Merchandise and finished goods, and work in process
Merchandise and finished goods, and work in process are stated principally at cost
determined by the gross average method (balance sheet amounts are determined based on themethod of writing down book value in accordance with decreased profitability) for theCompany and its domestic consolidated subsidiaries and at the lower of cost or market, cost
being determined by the first-in, first-out method for overseas consolidated subsidiaries.
2) Raw materials
Raw materials are stated principally at cost determined by the moving-average method(balance sheet amounts are determined based on the method of writing down book value inaccordance with decreased profitability) for the Company and its domestic consolidated
subsidiaries and at the lower of cost or market, cost being determined by the first-in,
first-out method for overseas consolidated subsidiaries.
(2) Accounting policy for depreciation of significant assets(a) Property, plant and equipment (excluding leased assets)
Depreciation of property, plant and equipment is calculated principally by the straight-line
method.
The estimated useful lives of the major assets are as follows:
Buildings and structures:
2 to 50 years
Machinery, equipment and vehicles: 3 to 15 years
Others:2 to 15 years(b) Intangible assets (excluding leased assets)
Amortization of intangible assets is calculated by the straight-line method.
In addition, amortization of software for internal use is calculated by the straight-line
method based on the estimated useful life of five years.

- 11 -

(c) Leased assets
Leased assets related to finance lease transactions that transfer ownership
Leased assets related to finance lease transactions that transfer ownership are depreciatedby the same approach as the depreciation method applied to self-owned non-current assets.
Leased assets related to finance lease transactions that do not transfer ownership
Leased assets related to finance lease transactions that do not transfer ownership are
depreciated by the straight-line method over the lease period that is deemed as the usefullife, assuming no residual value.
(3) Accounting policy for significant allowances(a) Allowance for doubtful accounts(i) The Company and its domestic consolidated subsidiaries
To prepare for losses from bad debts, an estimated uncollectible amount is provided
either by making an estimation using the historical rate of credit loss in the case ofgeneral receivables, or based on individual consideration of collectibility in the caseof specific receivables such as highly doubtful receivables.
(ii) Overseas consolidated subsidiaries
To prepare for losses from bad debts, an estimated uncollectible amount is provided
based on consideration of collectibility for individual receivables.
(b) Provision for bonuses
The provision for bonuses represents the amounts for future payments of employees’ bonuses.
The provision is recognized in the amount that is expected to be paid.
(c) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries recognize provision for retirement benefits for
directors, corporate auditors and others in the full amount that would have to be paid if all
the directors and corporate auditors resigned at the balance sheet date based on theirinternal regulations.
(d) Provision for directors’ stock payment
Provision for directors’ stock payment represents the amounts for future payments of theCompany’s stock to directors. The provision is recognized based on the amount that is
expected to be paid, which is determined using points allocated to each director as prescribedin the share granting rules.
(e) Provision for product warranties
Provision for product warranties is recognized for expenses for after-sales service and free
repairs for products sold by the Company and its consolidated subsidiaries in the estimatedamount to be incurred in the future.
(f) Provision for loss on orders received
To provide for future losses on contracted orders received, the Company recognizes aprovision for loss on orders received equal to the amount of losses it anticipates after the
year-end. Such a provision is recognized when losses on orders received are probable andreasonably estimated at the end of the current fiscal year.
(4) Accounting treatment of retirement benefits
1) Method for attribution of estimated retirement benefits to periods
In the calculation of retirement benefit obligations, the expected retirement benefits
attributed to the period up to the end of current fiscal year are based on the benefit formula
method.
2) Accounting method for actuarial gains or losses and past service costs
Past service costs are amortized by the straight-line method over a certain period (mainly
12 years) that is within the average remaining years of service of the eligible employees when
the costs are incurred.
Actuarial gains or losses are amortized in the year following the year in which the gains orlosses are recognized by the straight-line method over a certain period (mainly 12 years) thatis within the average remaining years of service of the eligible employees when the gains orlosses are recognized.

- 12 -

(5) Standards for the recognition of significant revenues and expenses(a) Sales of products
For halogen lamps, discharge lamps and solid-state light sources, this is primarily the
manufacturing and sales of various lamps. For the sales of these products, the control of the
products is deemed to be transferred upon delivery to the customer, so revenue is recognizedat the time of delivery. The alternative treatment prescribed in Paragraph 98 of the
Implementation Guidance on Accounting Standard for Revenue Recognition has been applied for
products sold in Japan, and revenue is recognized when products are shipped provided that
there is an ordinary length of time between shipping and when the control is transferred tocustomers.
For UV equipment, optical equipment and other, this is primarily the manufacturing and salesof various lithography equipment. For the sales of these products, where there is installationof such products based on a contract with the customer, customers generally do not receive
benefits without the installation, so the products and installation are identified as a single
performance obligation. In such case, the control of the assets is transferred to the customer
when the confirmation of agreed performance such as the customer’s acceptance of the producthas been completed, so that is when revenue is recognized. In addition, for some products that
do not include installation work, the control of the products is deemed to be transferred upondelivery to the customer, so revenue is recognized at the time of delivery.
For cinema equipment and general imaging equipment, this is primarily the manufacturing andsales of various projectors. For the sales of these products, the control of the products isdeemed to be transferred upon delivery to the customer, so revenue is recognized at the timeof delivery.
(b) Provision of maintenance services
For UV equipment, optical equipment and other, maintenance services are provided for the
products sold based on a separate contract. Maintenance services primarily guarantee thesteady operations of products, including the replacement of maintained items. For theidentification of performance obligations, for contracts that provide for performanceobligations to be satisfied over time, revenue is recognized according to the contract period.
For contracts where the performance obligations are primarily satisfied when the provision ofmaintenance ends, revenue is recognized at such time. In addition, for optical equipment andsome other products, this includes variable consideration corresponding to the product’s
capacity utilization rate.
For cinema equipment and general imaging equipment, maintenance services are provided forthe products sold based on a separate contract. Maintenance services primarily guarantee thesteady operations of products, including the replacement of maintained items. For theidentification of performance obligations, for contracts that provide for performanceobligations to be satisfied over time, revenue is recognized according to the contract period.

- 13 -

(6) Significant hedge accounting(a) Hedge accounting
Deferral hedge is applied. When hedging foreign currency risk, certain domestic consolidated
subsidiaries apply the foreign exchange rate designated in the forward contract when thetransaction qualifies for such treatment.
(b) Hedging instruments and hedged items
Hedging instruments: Forward foreign exchange contracts and interest rate swaps
Hedged items:

Monetary receivables and payables denominated in foreign currencies,
forecasted transactions denominated in foreign currencies, securities
and loans payable denominated in foreign currencies(c) Hedging policy
The Company and its consolidated subsidiaries (collectively, the “Group”) hedge the risksof fluctuation in foreign currencies and interest rates in accordance with internal management
rules on financial market risk and derivative transactions.
(d) Method of assessing the hedge effectivenessThe hedge effectiveness is assessed by comparing the cumulative changes in fair value orcash flows of the hedged items and those of the hedging instruments during the period from theinception of the hedge to the time of determining the effectiveness, and based on therespective amount of changes.
(7) Method and period for amortization of goodwill
Goodwill is amortized using the straight-line method over a period representing its useful life.
(8) Scope of cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investmentsthat are readily convertible to known amounts of cash and subject to insignificant risk of change
in value and due within three months from the date of acquisition.
(9) Other significant matters forming the basis of preparing the consolidated financial statements
Accounting method for consumption taxes
The consumption taxes are accounted for using the tax exclusion method.
(10) U.S. Dollar Amounts
For the readers’ convenience, the accompanying consolidated financial statements with respect
to the fiscal year ended March 31, 2022 have been presented in U.S. dollars by translating all yen
amounts at ¥122.41 = U.S. $1.00, the exchange rate prevailing on March 31, 2022. This translation
should not be construed as a representation that the yen amounts have been, could have been, or
could in the future be converted into U.S. dollars at the above or any other rate.

- 14 -

(Significant Accounting Estimates)
1. Impairment of non-current assets(1) Amount recorded in the consolidated financial statements for the fiscal year ended March 31,
2022
In the fiscal year ended March 31, 2022, the Company recognized indications of impairment for
the asset group comprising assets of some consolidated subsidiaries within the “Imaging
equipment business.” As a result, the Company reviewed the necessity of recording an
impairment loss.
As a result of the review, no impairment loss was recognized because the undiscounted future
cash flows exceeded the book values of each asset group.
Fiscal year ended
March 31, 2021

Fiscal year ended March 31, 2022

(Millions of yen) (Millions of yen) (Thousands of U.S. dollars)“Imaging equipment
business” asset group

Property, plant andequipment
Intangible assets

7,072

7,865

64,254

911

782

6,395

(2) Information on the nature of significant accounting estimates for identified items
1) Method of calculating the amount recorded in the consolidated financial statements for the
fiscal year ended March 31, 2022
For non-current assets or asset groups for which there is an indication of impairment, if thetotal undiscounted future cash flows from the asset or asset group is less than the book value,
the Group writes down the book value to the recoverable amount and records the amount of thewrite-down as an impairment loss.
2) Key assumptions used to calculate the amount recorded in the consolidated financial statements
for the fiscal year ended March 31, 2022(“Imaging equipment business” asset group)
Although severe business conditions continue for movie theaters due to the impact of COVID-19,
we forecast movie theaters to resume and operations to recover with the resumption of economic
activity around the world. We forecast sales of digital cinema projectors to increase due to therecovery in capital investment demand. We also forecast sales of related imaging equipment toincrease due to the resumption of commercial facilities and recovery in events, etc.
However, supplies of components are being delayed by the global semiconductor shortage. There
are also supply chain disruptions, the Russia-Ukraine situation, and the consequent surge inenergy and raw material prices. Given the difficulties of accurately predicting the timing forthese issues to be contained, the Group has assumed these impacts will continue during the fiscal
year ending March 31, 2023.
We have estimated the undiscounted future cash flows based on the value in use calculated byfactoring in the impact of these issues on the net sales growth rate for major products and risein operating expenses, such as raw material costs, labor costs and logistics costs.
3) Effect on the consolidated financial statements for the next fiscal year
If the impacts on the net sales growth rate and rise in operating expenses, such as raw
material costs, labor costs and logistics costs from factors including the protracted delays insupplies of components from suppliers and the surge in energy and raw material prices exceed
expectations, and the future differs from our assumptions in 2) above, impairment losses on noncurrent assets may be recorded in the next fiscal year.

- 15 -

2. Recoverability of deferred tax assets(1) Amount recorded in the consolidated financial statements for the fiscal year ended March 31,
2022
Fiscal year ended
March 31, 2021

Fiscal year ended March 31, 2022

(Millions of yen) (Millions of yen) (Thousands of U.S. dollars)
1,994
4,135
33,787

Deferred tax assets
Deferred tax assets (Before offsetting
against deferred tax liabilities)

5,628

9,102

74,360(2) Information on the nature of significant accounting estimates for identified items
1) Method of calculating the amount recorded in the consolidated financial statements for the
fiscal year ended March 31, 2022
The Group determines the recoverability of deferred tax assets by making reasonable estimatesof future taxable income for mainly each tax jurisdiction. For certain consolidated subsidiaries,
the recoverability of deferred tax assets is determined by analyzing the cumulative profit orloss before income taxes for each company over a three-year period.
2) Key assumptions used to calculate the amount recorded in the consolidated financial statements
for the fiscal year ended March 31, 2022
The estimate of taxable income and profit or loss before income taxes is mainly based on thebusiness plan used by the Group.
Supplies of components are being delayed by the global semiconductor shortage. There are also
supply chain disruptions, the Russia-Ukraine situation, and the consequent surge in energy andraw material prices. Given the difficulties of accurately predicting the timing for these issues
to be contained, the Group has assumed these impacts will continue during the fiscal year ending
March 31, 2023. The impact of these changes on the net sales growth rate for major products andon the rise in operating expenses, such as raw material costs, labor costs, and logistics costs,
is factored into the business plan, which is the basis for the estimates.
In the imaging equipment business, although challenging business conditions have continued formovie theaters due to the impact of the spread of COVID-19, sales of digital cinema projectors
are expected to increase due to the projected recovery of the desire for capital investment as
the worldwide resumption of economic activities and the resumption and recovery of operations ofmovie theaters are expected. Furthermore, due to the resumption of commercial facilities,
recovery of events, etc., sales of related imaging equipment are also expected to increase, andthe impact of this is also included in the business plan.
3) Effect on the consolidated financial statements for the next fiscal year
If the impacts on the net sales growth rate and rise in operating expenses, such as raw
material costs, labor costs and logistics costs from factors including the protracted delays insupplies of components from suppliers and the surge in energy and raw material prices exceed
expectations, and the future differs from our assumptions in 2) above, there is a risk that
estimates for taxable income and profit or loss before income taxes will decrease, and thejudgment of recoverability of deferred tax assets will be significantly impacted.

- 16 -

(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards
Board of Japan (ASBJ) Statement No. 29, issued on March 31, 2020) and relevant ASBJ regulations fromthe beginning of the fiscal year ended March 31, 2022, and revenue is recognized at the time thecontrol of promised goods or services is transferred to the customer at the amount expected to bereceived upon exchange of said goods or services. Consequently, while revenue for some transactions
involving subsidiaries was previously recognized over a certain period of time, now the method has
been changed and revenue is recognized at a point in time.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations
is subject to the transitional treatment provided for in the proviso to paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the fiscal
year ended March 31, 2022 was added to or deducted from the opening balance of retained earnings ofthe fiscal year, and thus the new accounting policy was applied from such opening balance.
The impact of this application on the opening balance of retained earnings and profit or loss inthe current fiscal year is immaterial.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “Notes andaccounts receivable-trade” under current assets of the consolidated balance sheet as of the end of
the previous fiscal year has been included in “Notes and accounts receivable - trade, and contract
assets” under current assets from the current fiscal year. In addition, “Other” under current
liabilities as well as “Other” under non-current liabilities have been included in “Contract
liabilities” and “Other” under current liabilities from the current fiscal year. However, in
accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard
for Revenue Recognition, figures for the previous fiscal year have not been restated in accordancewith the new method of presentation.
In accordance with the transitional treatment provided for in paragraph 89-3 of the AccountingStandard for Revenue Recognition, notes to revenue recognition for the previous fiscal year have notbeen described.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, issued on July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year
ended March 31, 2022, and it has applied the new accounting policy set forth in the AccountingStandard for Fair Value Measurement, etc. prospectively in accordance with the transitional
treatment provided for in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
issued on July 4, 2019). Consequently, for stocks other than those without market prices, etc.,classified as available-for-sale securities, previously a fair value method based on the average
market price in the one-month period prior to the fiscal year end was used, however, the method waschanged from the current fiscal year to one in which the market price, etc. as of the fiscal year
end is used.
In addition, the notes on “Financial Instruments” have included notes on matters related to thebreakdown of fair values of financial instruments by levels and other matters. However, in
accordance with the transitional treatment provided for in paragraph 7-4 of the “Implementation
Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19, issued on
July 4, 2019 ), such notes for the previous fiscal year have been omitted.

- 17 -

(Accounting Standards Issued but Not Yet Applied)(Leases)・Leases (ASU No. 2016-02 (Topic 842))(1) Overview
This accounting standard and relevant regulations in principle require that recognition ofassets and liabilities arising from all leases to be conducted by the lessee of a lease. There
are no significant changes to the accounting requirements of the lessor.
(2) Date of application
ASU No. 2016-02 (Topic 842) will be applied from the end of the fiscal year ending March 31,
2023.
(3) Impact of application
The impact of this standard on the consolidated financial statements is currently being
evaluated.
(Accounting Standard for Fair Value Measurement, etc.)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,
issued on June 17, 2021)(1) Overview
When the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31) was announced on July 4, 2019, it was thought that consideration concerning the“the determination of the fair value of investment trusts” would require a certain amount oftime for discussion with relevant parties, while certain considerations were also necessary in
relation to the notes on the fair value of “investments in partnerships, etc. that are carriedon the balance sheet at the net value of the equity interest,” so these items were determinedfollowing consideration undertaken during a period of about one year following the announcementof the Accounting Standard for Fair Value Measurement, and the revised implementation guidancereflecting those considerations were announced in June 17, 2021.
(2) Date of application
These standards will be applied from the beginning of the fiscal year ending March 31, 2023.
(3) Impact of application
The impact of applying the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” on the consolidated financial statements is currently being evaluated.
(Changes in Accounting Estimates)(Change in amortization period for actuarial gains and losses in accounting for retirement benefits
and past service costs)
The amortization period for actuarial gains and losses in accounting for retirement benefits andpast service costs had been over a certain period (mainly 15 years) that is within the averageremaining years of service of the eligible employees. However, because the average remaining yearsof service fell below this period, the Company changed the amortization period to mainly 12 years
from the current fiscal year.
As a result of this change, operating profit, ordinary profit, and profit before income taxes fell
¥520 million ($4,253 thousand), respectively, in the current fiscal year.

- 18 -

(Additional Information)(Stock remuneration plan for directors)
The Company has introduced a stock remuneration plan for directors of the Company (excluding
outside directors) and executive officers who have entered into an engagement agreement with theCompany (excluding overseas residents, hereinafter “Directors, et al.”), in order to raise the
incentive to contribute to improving the Company’s medium- to long-term business performance and toincreasing enterprise value.
(1) Overview
The Company entrusts money equivalent to remuneration of Directors, et al. The Company’s
shares will be acquired using the entrusted money and the Company’s shares and the cash
equivalent of the conversion value of the Company’s shares will be delivered and paid to
Directors, et al. based on his or her position and the degree of accomplishment of businessperformance. Directors, et al. are eligible to receive the Company’s shares and the cash
equivalent of the conversion value of the Company’s shares, in principle after retiring fromthe position of Director, et al. In order to maintain neutrality toward management of theCompany, the voting rights of the Company’s shares in the trust may not be exercised during
the trust period.
(2) The Company’s shares in the trust
The Company’s shares in the trust were recorded as treasury shares in net assets on the
consolidated balance sheet with the carrying value in the trust (excluding ancillary
expenses). The carrying value and number of treasury shares in the trust were ¥409 million and
251,200 shares as of March 31, 2021 and ¥381 million ($3,112 thousand) and 234,000 shares asof March 31, 2022, respectively.

- 19 -

(Consolidated Balance Sheet)*1 The amounts of receivables from contracts with customers within notes and accounts receivable trade, and contract assets are as follows.
As of March 31, 2022
(Millions of yen)
Notes receivable-trade

3,622(Thousands of U.S. dollars)
29,954

Accounts receivable-trade

30,793

251,557*2 Investments in associates are as follows:
As of March 31, 2021
Investment securities (stocks)(Millions of yen)221

As of March 31, 2022
(Millions of yen)
191

(Thousands of U.S. dollars)
1,565(Consolidated Statement of Income)*1 Revenue from contracts with customers
Revenue from contracts with customers and revenue from other sources this are not presented
separately in net sales. The amount of revenue from contracts with customers is presented in “Notes
to Consolidated Financial Statements (Revenue Recognition) 1. Information on disaggregation ofrevenue from contracts with customers.”*2 The ending inventory balance is the amount after write-downs of book value due to declines in
profitability, and the loss on valuation of inventories included in cost of sales is as follows:
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)

(Millions of yen)
2,117

(Thousands of U.S. dollars)
370

3,023

*3 The main components of selling, general and administrative expenses are as follows:
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)

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

10,695

11,201

91,511

Provision for bonuses

594

913

7,460

Retirement benefit expenses

534

691

5,651

Provision for directors' retirement benefits

59

40

333

Provision for directors' stock payment

-

86

705

Research and development expenses

10,093

10,54386,134631(278)(2,273)

Salaries and wages

Provision of allowance for doubtful accounts*4 Research and development expenses included in general and administrative expenses are as follows:
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)

(Millions of yen)
10,093(Thousands of U.S. dollars)
10,543- 20 -

86,134

*5 The breakdown of gain on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2021
(Millions of yen)

Fiscal year ended
March 31, 2022
(Thousands of(Millions of yen)
U.S. dollars)

Buildings and structures

28

756

6,183

Machinery, equipment and vehicles

22

12

102

Land

-

369

3,020

Other

2

14

114

53

1,153

9,421

Total

- 21 -

*6 The breakdown of loss on retirement of non-current assets is as follows:
Fiscal year ended
March 31, 2021
(Millions of yen)

Fiscal year ended
March 31, 2022
(Thousands of(Millions of yen)
U.S. dollars)

Buildings and structures

18

24

201

Machinery, equipment and vehicles

35

42

346

Construction in progress

5

6

49

Other

61

25

208

121

98

806

Total

*7 The breakdown of loss on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2021
(Millions of yen)

Fiscal year ended
March 31, 2022
(Thousands of
U.S. dollars)(Millions of yen)

Machinery, equipment and vehicles

5

8

66

Other

20

3

24

25

11

91

Total
*8 Impairment loss
Fiscal year ended March 31, 2021
Location
California, U.S.A.

Classification by use
Business assets

Osaka, Osaka,
Nagoya, Aichi,
Fukuoka, Fukuoka

Buildings and structures(Millions of yen)

445

Buildings and structures,
Business assets

Kanzaki-Gun,
Hyogo,

Fukaya, Saitama,
Taito-ku, Tokyo

Type of assets

Other (Property, plant andequipment), Machinery,85

equipment and vehicles
Buildings and structures,
Machinery, equipment andBusiness assets

vehicles, Other (Property,
plant and equipment), Other

81(Intangible assets)
Chiyoda-ku, Tokyo
Kawasaki, Kanagawa
Takasago, Hyogo

Buildings and structures,
Business assets

and others
Steinhöring,
Germany

Machinery, equipment andvehicles, Other (Property,

54

plant and equipment)
Business assets

Other (Property, plant andequipment)

3

In principle, the Group’s business assets are grouped according to division or to whom assets arelent, assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets andassets planned to be sold are grouped on an individual asset basis.
The book values of business assets are written down to zero or the net selling values due to adecrease in the recoverability of the assets, and the write-downs are recorded as impairment loss in
extraordinary losses.
Regarding the business assets of California, U.S.A., the book values were written down to zeroaccompanying the business structure improvement of CHRISTIE Group, and the write-downs wererecognized as business structure improvement expenses under extraordinary losses.
The book values of business assets of Fukaya, Saitama and Taito-ku, Tokyo were written down to zero

- 22 -

because these assets are not expected to be used in the future, with the resolution to dissolve WACOM
ELECTRIC CO., LTD., and the write-downs were recorded as business structure improvement expenses
under extraordinary losses.
* Breakdown of impairment loss by location is as follows:・Impairment loss of \445 million recognized for California, U.S.A. is for buildings and structures.
・Impairment loss of ¥85 million recognized for Osaka, Osaka, etc. includes ¥65 million forbuildings and structures, ¥16 million for other (property, plant and equipment), and ¥3 million
for machinery, equipment and vehicles.
・Impairment loss of ¥81 million recognized for Fukaya, Saitama, etc. includes ¥51 million forbuildings and structures, ¥17 million for machinery, equipment and vehicles, ¥6 million for other(property, plant and equipment), and ¥5 million for other (intangible assets).
・Impairment loss of \54 million recognized for Chiyoda-ku, Tokyo, etc. includes ¥28 million forbuildings and structures, ¥13 million for machinery and equipment, and ¥12 million for other(property, plant and equipment).
・Impairment loss of \3 million recognized for Steinhöring, Germany is for other (property, plantand equipment).

- 23 -

Fiscal year ended March 31, 2022
Location

Kitchener, Canada

Classification by use

Idle assets

Type of assets
Buildings and structures
and Machinery, equipment(Millions of yen)(Thousands of
U.S. dollars)

54

441

37

302

58

474

14

122

and vehicles
Shenzhen, China
Chiyoda-ku, Tokyo
Takasago, Hyogo
Takasago, Hyogo
Himeji, Hyogo

Idle assets
Business assets

Idle assets

Machinery, equipment andvehiclesOther (Property, plant andequipment)
Buildings and structures
and Machinery, equipment
and vehicles

In principle, the Group’s business assets are grouped according to division or to whom assets arelent, assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets andassets planned to be sold are grouped on an individual asset basis.
The book value of a group of idle assets not used for business operations and not expected to be
used in the future are reduced to zero, and the write-downs are recorded as impairment loss in
extraordinary losses.
The book values of business assets are written down to zero or the net selling values due to adecrease in the recoverability of the assets, and the write-downs are recorded as impairment loss in
extraordinary losses.
* Breakdown of impairment loss by location is as follows:・Impairment loss of \54 million ($441 thousand) recognized for Kitchener, Canada includes \47
million ($385 thousand) for machinery, equipment and vehicles and ¥6 million ($55 thousand) for
buildings and structures.
・Impairment loss of ¥37 million ($302 thousand) recognized for Shenzhen, China includes ¥37
million ($302 thousand) for machinery, equipment and vehicles.
・Impairment loss of \58 million ($474 thousand) recognized for Chiyoda-ku, Tokyo, etc. includes\58 million ($474 thousand) for other (property, plant and equipment).
・Impairment loss of \14 million ($122 thousand) recognized for Takasago, Hyogo, etc. includes \14
million ($115 thousand) for machinery, equipment and vehicles and \0 million ($6 thousand) for
buildings and structures.

- 24 -

*9 Business structure improvement expenses
Fiscal year ended March 31, 2021
Business structure improvement expenses were incurred in implementing the business structure
improvement to maintain and improve the profitability of the Company’s businesses. The major
components in the breakdown of these expenses were \1,490 million of expenses for personnel
downsizing, etc. due to the restructuring of CHRISTIE Group and Ushio Germany GmbH as well as theresolution to dissolve WACOM ELECTRIC CO., LTD., and \526 million of impairment loss, etc. due tothe reorganization of unprofitable businesses.
Fiscal year ended March 31, 2022
Business structure improvement expenses were incurred in implementing the business structure
improvement to maintain and improve the profitability of the Company’s businesses. The major
components in the breakdown of these expenses were \118 million ($965 thousand) of expenses for
personnel downsizing due to the restructuring of USHIO EUROPE B.V., Ushio Germany GmbH and USHIOFRANCE S.A.R.L. , loss due to the office relocation of USHIO EUROPE B.V. and USHIO FRANCE S.A.R.L.
was ¥43 million ($356 thousand).
*10 Loss on temporary closure
Fiscal year ended March 31, 2021
In response to requests from national governments regarding COVID-19, the Group has suspended
operations of factories and temporarily closed part of the imaging equipment business after taking
regulations in each country and prevention of the spread of infection into consideration.
As a result, fixed expenses (labor costs, depreciation, etc.) incurred during the period ofsuspension or closure are recorded as extraordinary losses due to closure of business, etc.
Fiscal year ended March 31, 2022
In response to requests from national governments regarding COVID-19, the Group has temporarilyclosed part of the imaging equipment business after taking regulations in each country andprevention of the spread of infection into consideration.
As a result, fixed expenses (labor costs, depreciation, etc.) incurred during the period ofsuspension or closure are recorded as extraordinary losses due to closure of business, etc.

- 25 -

(Consolidated Statement of Comprehensive Income)
Reclassification adjustments and income tax effect allocated to each component of othercomprehensive income are as follows:
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)

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

Valuation difference on available-for-salesecurities:
Amount arising during the year

8,814

4,522

Reclassification adjustments

197

(16)

(135)

Amount before income tax effect

9,012

4,505

36,806

Income tax effect(2,606)(1,385)(11,322)

Valuation difference on available-for-salesecurities

6,405

3,119

25,484

1

1

9

7

3

31

Amount before income tax effect

9

5

41

Income tax effect

(2)

(1)

(12)

Deferred gains or losses on hedges

6

3

28

4,863
-

10,553-86,217-

Amount before income tax effect
Income tax effect

4,863
-

10,553-86,217-

Foreign currency translation adjustment

4,863

10,55386,217

3,396

196

1,606

628

1,027

8,391

Amount before income tax effect

4,024

1,223

9,998

Income tax effect(1,234)(388)(3,173)Remeasurements of defined benefit plans

2,790

835

6,825

(36)

56

465

(36)

56

465

14,02914,569119,020

Deferred gains or losses on hedges:
Amount arising during the year
Reclassification adjustments

36,942Foreign currency translation adjustment:
Amount arising during the year
Reclassification adjustments

Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments

Share of other comprehensive income of entities
accounted for using equity method:Amount arising during the year
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income- 26 -

(Consolidated Statement of Changes in Net Assets)
Fiscal year ended March 31, 2021
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2020

Increase

Number ofshares as ofMarch 31, 2021

Decrease

Shares issued:
Common shares
Total

127,000,000--

127,000,000

127,000,000--

127,000,000

6,480,983

2,574

59,2506,424,307

6,480,983

2,574

59,2506,424,307

Treasury shares
Common shares (Note)
Total(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (310,450 shares and 251,200 shares at the beginning and end of the current fiscal
year, respectively).
2. The increase of 2,574 shares of treasury shares is due to purchase of shares of less thanstandard unit.
3. The decrease of 59,250 shares of treasury shares is due to issuance from the trust to eligible
persons according to the stock remuneration plan for directors.
2. Dividends(1) Dividends paid

Resolution

Type ofsharesAnnual general meetingof the shareholders on

CommonJune 26, 2020

sharesTotal
dividends(Millionsof yen)Dividends
per share
(Yen)

3,141

26

Cut-off
date

Effective
date

March 31,

June 29,

2020

2020

(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 26,
2020 include ¥8 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.

- 27 -

(2) Dividends with the cut-off date in the fiscal year ended March 31, 2021 and the effective datein the fiscal year ended March 31, 2022

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Sourceofdividends

Dividends
per share(Yen)

Cut-off
date

Effective
date

Commonshares3,141

Retainedearnings

26

March 31,2021

June 30,2021

Annual general
meeting of theshareholders on
June 29, 2021

(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,
2021 include ¥6 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.

- 28 -

Fiscal year ended March 31, 2022
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2021

Increase

Number ofshares as ofMarch 31, 2022

Decrease

Shares issued:
Common shares
Total

127,000,000--

127,000,000

127,000,000--

127,000,000

6,424,307

2,726

17,2006,409,833

6,424,307

2,726

17,2006,409,833

Treasury shares
Common shares (Note)
Total(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (251,200 shares and 234,000 shares at the beginning and end of the current fiscal
year, respectively).
2. The increase of 2,726 shares of treasury shares is due to purchase of shares of less thanstandard unit.
3. The decrease of 17,200 shares of treasury shares is due to issuance from the trust to eligible
persons according to the stock remuneration plan for directors.
2. Dividends(1) Dividends paid

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Total
dividends(Thousands of
U.S. dollars)

Dividends
per share(Yen)

Dividends
per share(U.S.
dollars)Cut-off
date

Effective
date

Commonshares3,141

25,66326

0.21

March 31,2021

June 30,2021

Annual general
meeting of theshareholders on
June 29, 2021

(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,
2021 include ¥6 million ($53 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

- 29 -

(2) Dividends with the cut-off date in the fiscal year ended March 31, 2022 and the effective datein the fiscal year ending March 31, 2023

Resolution

Type ofshares

Total
Total
dividends
Sourcedividends(Thousandsof(Millionsof U.S.
dividendsof yen)dollars)

Dividends
per share(Yen)

Dividends
per share(U.S.
dollars)Cut-off
date

Effective
date

Retainedearnings

50

0.41

March 31,2022

June 30,2022

Annualgeneralmeeting of
theshareholders

Commonshares

6,041

49,352

on June 29,
2022(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,
2022 include ¥11 million ($95 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

- 30 -

(Consolidated Statement of Cash Flows)*

Reconciliation between cash and cash equivalents at end of period and the amount on the
consolidated balance sheet
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(Millions of yen)
73,670Cash and deposits
Time deposits with a maturity of morethan three months
Money management funds and others
included in securities
Cash and cash equivalents(Millions of yen)
88,687(Thousands of U.S. dollars)
724,508(3,423)(7,067)(57,737)

171

-

-

70,41881,619666,770(Lease Transactions)1. Finance lease transactions
Finance lease transactions that do not transfer ownership
1) Leased assets
・Property, plant and equipment
These leases are mainly production facilities (machinery, equipment and vehicles) andinspection instruments (other) of the Company.
・Intangible assets
These leases are mainly software (other) of the Company’s consolidated subsidiaries.
2) Depreciation of leased assets
Leased assets are depreciated by the straight-line method over the lease period that is deemedas the useful life, assuming no residual value.
2. Operating lease transactions
Future minimum lease payments under non-cancelable operating leases
As of March 31, 2021

As of March 31, 2022

Due within one year

(Millions of yen)
936

(Millions of yen)
1,245

(Thousands of U.S. dollars)
10,172

Due after one year

1,679

1,939

15,843

Total

2,616

3,184

26,016- 31 -

(Financial Instruments)
1. Overview of financial instruments(1) Basic policy on managing financial instruments
The Group invests temporary surplus funds and funds reserved for future business expansion
mainly in highly safe financial assets, according to the Group’s cash management plan. The methodof fund raising is determined based upon the use of funds and financing environment. The Grouputilizes derivative transactions only to hedge foreign exchange rate fluctuation risk and interest
rate fluctuation risk, and does not use them for trading or speculative purposes.
(2) The nature and risk of financial instruments
Notes and accounts receivable – trade, which are operating receivables, are exposed to customer
credit risk. Operating receivables denominated in foreign currencies are also exposed to foreignexchange risk; however, such risk is hedged by using forward foreign exchange contracts.
Securities and investment securities consist mainly of equity securities issued by companies
with whom the Group has business alliances and equity or debt securities held for the purpose of
short-term investment of temporary surplus funds and reserved funds. Investments in money held in
trust are also held for the purpose of investment of reserved funds. These investments are exposed
to market risk. A part of securities, investment securities, and investments in money held in
trust are denominated in foreign currencies, and they are exposed to foreign exchange risk;
however, such risk is hedged by using forward foreign exchange contracts.
Notes and accounts payable – trade, which are operating payables, are mostly due within one
year. Some of them are denominated in foreign currencies and exposed to foreign exchange risk;
however, such risk is hedged by using forward foreign exchange contracts.
Short-term loans payable, which are made to obtain working capital, are due within one year
after the end of the current fiscal year.
As for derivative transactions, forward foreign exchange contracts are entered into for the
purpose of hedging foreign exchange risk deriving from operating receivables and payables
denominated in foreign currencies, loans payable denominated in foreign currencies and securities
denominated in foreign currencies. For the hedging instruments and hedged items under the hedge
accounting, hedging policy, and the method of assessing the hedge effectiveness, please refer to“Significant Matters Forming the Basis of Preparation of Consolidated Financial Statements, 4.
Accounting policies, (6) Significant hedge accounting” prescribed above.
(3) Risk management structure regarding financial instruments
1) Management of credit risk (customers’ default risk, etc.)
For operating receivables, the Company reviews the creditworthiness of customers by monitoring
their financial status on a daily and continuous basis in accordance with the internal regulations
for credit exposure management. At the same time, it endeavors to early identify and mitigate any
concern on the collection of receivables due to deteriorated financial conditions by managing due
dates and balances for each customer and appropriately reviewing the credit lines. The Company’s
consolidated subsidiaries also manage operating receivables in the same manner in accordance with
the Company’s internal rules for credit exposure management. The credit risk associated with debt
securities is immaterial since the Group invests mainly in debt securities with high credit
ratings.
Derivative transactions are entered into only with highly rated financial institutions in orderto mitigate counterparty risk.
As of the end of the current fiscal year, the maximum credit risk amount is presented as theconsolidated balance sheet amounts of financial assets that are exposed to credit risk.
2) Management of market risk (fluctuation risk of foreign currency exchange and interest rates,
etc.)
The Company utilizes forward foreign exchange contracts for foreign exchange risk identified bycurrency and by month in relation to operating receivables and payables denominated in foreign
currencies, loans payable denominated in foreign currencies and securities denominated in foreign
currencies in accordance with the internal rules for market risk management. Some of theCompany’s consolidated subsidiaries also manage market risk in the same manner in accordance with- 32 -

the Company’s internal rules for market risk management.
For securities and investment securities, market prices and the financial position of theissuers are periodically monitored and reported to directors in charge in accordance with theinternal rules for market risk management. In addition, the holding status of shares issued bycompanies with business relationships is continuously reviewed in consideration of therelationships with those companies.
Derivative transactions are reported to directors in charge on a daily basis as well as to theBoard of Directors in accordance with the internal rules for derivative transactions that define
the authorization policy and limits of transactions. The Company’s consolidated subsidiaries also
manage derivative transactions in the same manner in accordance with the Company’s internal
rules.
3) Management of liquidity risk associated with fund raising (risk of inability to pay on due
date)
Liquidity risk of the Company and its consolidated subsidiaries is managed by the Finance andTreasury Departments, preparing and updating the cash management plan based upon reports from eachdepartment as well as by maintaining certain level of liquidity.
(4) Supplementary explanation concerning fair values of financial instruments, etc.
The notional amounts of derivative transactions in Note“Derivative Transactions” do not, inthemselves, indicate the market risk associated with the derivative transactions.

- 33 -

2. Fair value of financial instruments
The table below presents the amounts of financial instruments recorded in the consolidated balance
sheet and their fair values, as well as their differences.
As of March 31, 2021
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

(1) Cash and deposits

73,67073,670-(2) Notes and accounts receivable-trade34,024

Allowance for doubtful accounts (*1)(2,510)31,51431,514-

Trading securities

1,307

1,307

-

Available-for-sale securities

55,98755,987-(4) Investments in money held in trust

1,812

1,812

-

164,293

164,293-(1) Notes and accounts payable-trade

16,356

16,356-(2) Short-term loans payable

6,058

6,058

-

(3) Securities and investment securities(*3)

Assets, total(3) Current portion of long-term loans payable

3,520

3,519

(0)

(4) Long-term loans payable

15,056

14,740(315)

40,991

40,674(316)

for which hedge accounting is not applied

(62)

(62)

-

for which hedge accounting is applied

(5)

(5)

-

Liabilities, total
Derivative transactions (*2)(*1): The deducted amount includes general and specific allowance for doubtful accounts relating tonotes and accounts receivable – trade.
(*2): Assets and liabilities arising from derivative transactions are stated in the net amount. The
figures in brackets indicate net liabilities.
(*3): The following financial instruments are not included in “(3) Securities and investment
securities” because their market prices are not available and their fair values cannot be
reliably determined. The recorded amounts of those financial instruments on the consolidatedbalance sheet are as follows.
Classification

As of March 31, 2021
(Millions of yen)

Unlisted shares and investments
in business partnerships withlimited liability

1,984- 34 -

As of March 31, 2022
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

32,847

32,847

-

598

598

-

Available-for-sale securities

61,46961,469-(3) Investments in money held in trust

1,712

1,712

-

96,626

96,626-(1) Notes and accounts payable-trade21,164

21,164-(2) Short-term loans payable

2,185

2,185

-

(3) Current portion of long-term loans payable

16,402

16,433

31

-

-

-

39,75239,783

31

(72)

(72)

-

Consolidated balance
sheet amount(Thousands of U.S. dollars)

Fair value(Thousands of U.S. dollars)(1) Notes and accounts receivable - trade, and contract assets

35,292

Allowance for doubtful accounts (*3)

(2,445)(2) Securities and investment securities (*2)
Trading securities

Assets, total(4) Long-term loans payable
Liabilities, total
Derivative transactions (*4)
for which hedge accounting is not applied

As of March 31, 2022

(1) Notes and accounts receivable - trade, and contract assets

288,311

Allowance for doubtful accounts (*3)

(19,974)

Difference(Thousands of U.S. dollars)

268,336

268,336

-

4,890

4,890

-

Available-for-sale securities

502,158

502,158-(3) Investments in money held in trust

13,986

13,986-789,371789,371-(1) Notes and accounts payable-trade

172,896

172,896-(2) Short-term loans payable

17,856

17,856-(3) Current portion of long-term loans payable

133,993

134,253

259

-

-

-

324,746

325,005

259

(590)

(590)

-

(2) Securities and investment securities (*2)
Trading securities

Assets, total(4) Long-term loans payable
Liabilities, total
Derivative transactions (*4)
for which hedge accounting is not applied(*1): “Cash and deposits” are omitted because they are cash and because fair values of deposits
approximate their book values since deposits are settled in a short period of time.
(*2): Stocks, etc. without market prices and investments in business partnerships with limited
liability are not included in “(2) Securities and investment securities.” The recorded
amounts of those financial instruments on the consolidated balance sheet are as follows.
Classification
Unlisted shares
Investments in business
partnerships with limited
liability

As of March 31, 2022
(Millions of yen)
1,454
561

- 35 -(Thousands of U.S. dollars)
11,8864,584

(*3): The deducted amount includes general and specific allowance for doubtful accounts relating tonotes and accounts receivable - trade, and contract assets.
(*4): Assets and liabilities arising from derivative transactions are stated in the net amount. The
figures in brackets indicate net liabilities.
(Notes) 1. Redemption schedule for monetary receivables and securities with maturity dates after the
consolidated balance sheet date
As of March 31, 2021
Due within one year
(Millions of yen)

Due after one
year and up to
five years(Millions of yen)

Due after five
years and up to Due after ten years
ten years(Millions of yen)
(Millions of yen)

Cash and deposits

73,670---Notes and accounts
receivable-trade33,965

58

-

-

-

-

-

-

555

8,142

1,539

1,771

108,192

8,201

1,539

1,771

Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds(2) Corporate bonds
Total

As of March 31, 2022
Due within one year
(Millions of yen)
Cash and deposits
Notes and accounts
receivable-trade,and
contract assets
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds

Due after one
year and up to
five years(Millions of yen)

Due after five
years and up to Due after ten years
ten years(Millions of yen)
(Millions of yen)

88,687---35,202

89

-

-

-

-

-

-

(2) Corporate bonds

1,539

7,941

2,793

1,958

(3) Other

1,468

367

367

-

126,897

8,398

3,160

1,958

Total

- 36 -

As of March 31, 2022
Due within one year
(Thousands of
U.S. dollars)

Due after one
year and up to
five years(Thousands of
U.S. dollars)

Due after five
years and up toten years(Thousands of
U.S. dollars)

Due after ten years(Thousands of
U.S. dollars)

Cash and deposits
Notes and accounts
receivable-trade,and
contract assets
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds

724,508---

287,578

732

-

-

-

-

-

-

(2) Corporate bonds

12,57464,872

22,816

16,000(3) Other

12,000

3,000

3,000

-

1,036,660

68,60525,816

16,000Total

2. Redemption schedule for bonds, long-term loans payable, lease obligations and other interest
bearing debts after the consolidated balance sheet date
As of March 31, 2021
Due within one year
(Millions of yen)

Due after one year
and up to two years(Millions of yen)

Short-term loans payable

6,058

-

Long-term loans payable

3,520

Total

9,578

Due after two years
Due after three
Due after four years
and up to three
years and up to fourand up to five years
years
years
(Millions of yen)
(Millions of yen)
(Millions of yen)

-

-

-

15,056---

15,056---

As of March 31, 2022
Due after two years
Due after three
Due after four years
and up to three
years and up to fourand up to five years
years
years
(Millions of yen)
(Millions of yen)
(Millions of yen)

Due within one year
(Millions of yen)

Due after one year
and up to two years(Millions of yen)

Short-term loans payable

2,185

-

-

-

-

Long-term loans payable

16,402

-

-

-

-

Total

18,587----

As of March 31, 2022
Due within one year
(Thousands of U.S. dollars)

Due after one year and up to Due after two years and up Due after three years and up Due after four years and up
two years
to three years
to four years
to five years(Thousands of U.S. dollars) (Thousands of U.S. dollars) (Thousands of U.S. dollars) (Thousands of U.S. dollars)

Short-term loans payable

17,856----Long-term loans payable

133,993

-

-

-

-

Total

151,849

-

-

-

-

- 37 -

3. Matters related to the breakdown of fair values of financial instruments by levels and othermatters
Fair values of financial instruments are categorized into the following three levels inaccordance with observability and significance of inputs used to measure fair value.
Level 1 fair value:
Fair value measured by quoted prices for assets and liabilities subject to the measurement offair value formed in active markets that are observable inputs related to fair value
measurement
Level 2 fair value:
Fair value measured by using observable inputs related to fair value measurement other than
inputs related to Level 1 fair value measurement
Level 3 fair value:
Fair value measured by using unobservable inputs related to fair value measurement
If multiple inputs are used that significantly affect the measurement of fair value, the fairvalue is categorized into the lowest priority level in fair value measurement among levels of
those inputs.
(1) Financial instruments recorded on the consolidated balance sheet at fair value
As of March 31, 2022
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Securities and investment securities
Trading securities

598

-

-

598

Available-for-sale securities
Stocks41,333--

41,333

Corporate bonds-

16,704-

16,704

Other

-

891

1,219

2,111

-

2

-

2

41,932

17,5981,219

60,750

-

(74)

-

(74)

-

(74)

-

(74)

Derivative transactions
Currency-related transactions
Assets, total
Derivative transactions
Currency-related transactions
Liabilities, total

As of March 31, 2022
Classification

Fair value (Thousands of U.S. dollars)
Level 1

Level 2

Level 3

Total

Securities and investment securities
Trading securities

4,890

-

-

4,890

337,664--

337,664

Corporate bonds-

136,464-

136,464

Other

-

7,284

9,962

17,247

-

20

-

20

342,555

143,769

9,962

496,287

-

(611)

-

(611)

-

(611)

-

(611)

Available-for-sale securities
StocksDerivative transactions
Currency-related transactions
Assets, total
Derivative transactions
Currency-related transactions
Liabilities, total(*1): Assets and liabilities arising from derivative transactions are stated in the net amount. The
figures in brackets indicate net liabilities.

- 38 -

(2) Financial instruments other than financial instruments recorded on the consolidated balance
sheet at fair value
As of March 31, 2022
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Notes and accounts receivable - trade, and contract assets-

32,847-

32,847

Assets, total-

32,847-

32,847

Notes and accounts payable-trade-21,164-

21,164

Short-term loans payable

-

2,185

-

2,185

Current portion of long-term loans payable-

16,433-

16,433Liabilities, total-

39,783-39,783As of March 31, 2022
Classification

Fair value (Thousands of U.S. dollars)
Level 1

Level 2

Level 3

Total

Notes and accounts receivable - trade, and contract assets-

268,336-

268,336

Assets, total-

268,336-

268,336

Notes and accounts payable-trade-

172,896-

172,896

Short-term loans payable-

17,856-

17,856

Current portion of long-term loans payable-

134,253-

134,253

Liabilities, total-

325,005-

325,005(Notes) 1. Valuation techniques used in measurement of fair value and explanation of inputs pertaining to
the measurement of fair value(1) Securities and investment securities
Listed shares, corporate bonds and other bonds are valued using quoted prices. Since listed
shares are transacted in active markets, their fair value is categorized as Level 1 fair value.
On the other hand, corporate bonds and other bonds held by the Company and its consolidated
subsidiaries are categorized as Level 2 fair value since the frequency of transactions in themarket is low and their quoted prices cannot be recognized as being in active markets. Notethat some other bonds are measured at prices using significant unobservable inputs andcategorized as Level 3 fair value.
(2) Derivative transactions
The fair value is measured based on the prices provided by counterparty financial institutions
and categorized as Level 2 fair value.
(3) Notes and accounts receivable - trade, and contract assets
The fair value of these approximates their book value because these are settled in a shortperiod of time. Thus, the fair value is presented as their book value, measured based on credit
risk and the historical rate of credit loss, and categorized as Level 2 fair value.
(4) Notes and accounts payable-trade, and short-term loans payable
The fair value of these approximates their book value because these are settled in a shortperiod of time. Thus, the fair value is presented as their book value, and categorized as Level
2 fair value.
(5) Current portion of long-term loans payable
The fair value of these is measured using the discounted present value method based on the
total amount of principal and interest and at an interest rate that takes account of the term
to maturity and credit risk of such liabilities, and is categorized as Level 2 fair value.

- 39 -

2. Matters concerning Level 3 fair value for financial instruments recorded at fair value on the
consolidated balance sheet(1) Reconciliation between the balance at beginning of period and end of period(Millions of yen)

Securities and investment securities
Available-for-sale securities
Other

Balance at beginning of period

Total

1,131

1,131

Profit (loss) or other comprehensive income

Recorded in profit (loss)--

Recorded in other comprehensive income

88

88

Purchase, sales, issuance and settlement--

Transfer to Level 3--

Transfer from Level 3
Balance at end of period

-

-

1,219

1,219
(Thousands of U.S. dollars)

Securities and investment securities
Available-for-sale securities
Other

Balance at beginning of period

Total

9,243

9,243

-

-

719

719

-

-

-

-

Profit (loss) or other comprehensive income

Recorded in profit (loss)
Recorded in other comprehensive
income(*1)
Purchase, sales, issuance and settlement
Transfer to Level 3
Transfer from Level 3
Balance at end of period

-

-

9,962

9,962

(*1) Included in “Valuation difference on available-for-sale securities” in “Other
comprehensive income” in the consolidated statement of comprehensive income.
(2) Description of method of measuring fair value
The Company and its consolidated subsidiaries evaluate fair value using quoted prices obtained
from third parties. The Finance and Treasury Departments confirm the valuation techniques andinputs that are used, compare the movements in fair value of similar observable inputs andverify the appropriateness of the price.
3. Transitional measures were applied in line with paragraph 26 of the “Implementation Guidance on
Accounting Standard for Fair Value Measurement,” so investment trusts, etc. (carrying value on
the consolidated balance sheet: ¥3,031 million ($24,767 thousand)) are not included in“Available-for-sale securities” under securities and investment securities.

- 40 -

(Securities and Investment Securities)
1. Trading securities
As of March 31, 2021
(Millions of yen)
Valuation difference included in
profit or loss

As of March 31, 2022
(Thousands of U.S. dollars)(Millions of yen)

(119)

(72)

(595)

Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

35,584

9,259

26,325---

11,00910,606402

2. Available-for-sale securities
As of March 31, 2021

Securities whosecarrying value
exceeds theiracquisition cost(2) Bonds:
1) National
and local
government
bonds2) Corporatebonds(3) Other
Subtotal

1,212

774

437

47,806

20,64027,166

237

384

(146)

-

-

-

7,771

7,926

(154)

171

171

-

8,180

8,481

(300)

55,987

29,121

26,865(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities whosecarrying value
does not exceed
theiracquisition cost(3) Other
Subtotal
Total(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on
the consolidated balance sheet: ¥1,984 million) are not included in the above table of “Availablefor-sale securities” as their market prices are not available and their fair values cannot be
reliably determined.

- 41 -

As of March 31, 2022

Securities whosecarrying value
exceeds theiracquisition cost

Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

41,0089,258

31,749

-

-

-

2,250

2,228

21

(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

612

612

0

1,319

856

462

45,19012,95532,235

325

407

(82)

-

-

-

14,454

15,409

(955)

1,498

1,591

(92)

-

-

-

16,27817,408(1,130)61,46930,364

31,1043) Other(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities whosecarrying value
does not exceed
theiracquisition cost3) Other(3) Other
Subtotal
Total
As of March 31, 2022
Type(1) Shares

Carrying value(Thousands of
U.S. dollars)

Acquisition cost(Thousands of
U.S. dollars)

Difference(Thousands of
U.S. dollars)

335,006

75,632

259,374---

18,384

18,205179(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities whosecarrying value
exceeds theiracquisition cost3) Other(3) Other
Subtotal(1) Shares

Securities whosecarrying value
does not exceed
theiracquisition cost(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds3) Other

5,001

5,000

1

10,781

7,000

3,781

369,174

105,837

263,336

2,658

3,331

(672)

-

-

-

118,080

125,887(7,806)

12,24513,000

(754)

-

-

-

132,984

142,218(9,234)502,158

248,055

254,102(3) Other
Subtotal
Total(Note) Shares, etc. without market prices (carrying value on the consolidated balance sheet: ¥1,454- 42 -

million ($11,886 thousand)) and investments in business partnerships with limited liability(carrying value on the consolidated balance sheet: ¥561 million ($4,584 thousand)) are not includedin the above table of “Available-for-sale securities.”
3. Available-for-sale securities soldFiscal year ended March 31, 2021
Type

Sales proceeds(Millions of yen)

(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds

Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

329

255

-

-

-

-

4,891

22

61

-

-

-

5,220

278

61

Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

(3) Other
Total
Fiscal year ended March 31, 2022
Type

Sales proceeds(Millions of yen)

(1) Shares

30

10

-

(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds

-

-

-

1,085

7

15

189

-

-

1,304

17

15

Sales proceeds(Thousands of U.S. dollars)

Aggregate gains on sales(Thousands of U.S. dollars)

Aggregate losses on sales(Thousands of U.S. dollars)

248

82

-

(3) Other
Total
Fiscal year ended March 31, 2022
Type(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds

-

-

-

8,864

62

125

(3) Other

1,544

-

-

Total

10,658145

125

4. Impairment loss recognized on securities
Fiscal year ended March 31, 2021
For the fiscal year ended March 31, 2021, impairment loss of ¥320 million was recognized for
securities for available-for-sale securities - bonds.
Fiscal year ended March 31, 2022
For the fiscal year ended March 31, 2022, impairment loss of ¥1 million ($8 thousand) was
recognized for securities (¥1 million ($8 thousand) for available-for-sale securities – shares).
Impairment loss is recognized for all the securities whose fair value at the end of the fiscal
year declines by 50% or more of their acquisition cost. It is also recognized when the fair value
declines by approximately 30% to 50% of the acquisition cost at the amount deemed necessary
considering the recoverability of the fair value of the security.

- 43 -

(Derivative Transactions)
1. Derivative transactions for which hedge accounting is not applied
Currency-related transactions:
As of March 31, 2021
Classification

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

USD

966

-

(28)

(28)

EUR

147

-

(8)

(8)

USD

59

-

0

0

JPY

933

-

(24)

(24)

2,106

-

(62)

(62)

Type of transaction
Forward foreignexchange contracts:
Sell:

Off-market
transactions

Buy:

Total

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2022
Classification

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

606

-

(4)

(4)

USD

132

-

2

2

JPY

1,503

-

(69)

(69)

2,242

-

(72)

(72)

Notional
amounts(Thousands of
U.S. dollars)

Maturing
after one year
(Thousands of
U.S. dollars)

4,957

-

(39)

(39)

USD

1,081

-

20

20

JPY

12,279

-

(571)

(571)

18,318

-

(590)

(590)

Type of transaction
Forward foreignexchange contracts:
Sell:

Off-market
transactions

USD
EUR
Buy:

Total
As of March 31, 2022
Classification

Type of transaction

Estimated
fair value(Thousands of
U.S. dollars)

Valuation
gain (loss)(Thousands of
U.S. dollars)

Forward foreignexchange contracts:
Sell:
Off-market
transactions

USD
Buy:

Total

- 44 -

2. Derivative transactions for which hedge accounting is applied
Interest-rate-related transactions:
As of March 31, 2021
Hedge accounting

Type oftransaction

Hedged item

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)Interest rate
swaps:
Deferred hedge
Receiveaccounting
Long-term
floating/ Pay
3,450
－
(5)
loans payable
fixed(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2022
Not applicable.

- 45 -

(Retirement Benefit Plans)
1. Overview of retirement benefit plan adopted by the Company
To prepare for the payment of employees’ retirement benefits, the Company and its consolidated
subsidiaries adopted funded and unfunded defined benefit plans, and a defined contribution plan.
Under the defined benefit corporate pension plans, all of which are funded, the Company provides
lump-sum or pension benefits based on salaries and length of service.
In addition, retirement benefit trusts are set up for said corporate pension plans of the Company.
Under the lump-sum retirement benefit plans, which are principally unfunded and partially funded asa result of the setup of retirement benefit trusts, the Company provides lump-sum benefits based onsalaries and length of service.
Since the end of the current fiscal year, certain consolidated subsidiaries have changed thecalculation method of the retirement benefit obligations from the simplified method to the principle
method. This change was made in order to improve the accuracy of the calculation of the amount of
retirement benefit obligations and to enable more appropriate periodic accounting of profit and lossof retirement benefit expenses, following an increase in the number of employees.
Under the defined benefit corporate pension plans and the lump-sum retirement benefit plans forcertain consolidated subsidiaries, net defined benefit liability and retirement benefit expenses arecalculated by the simplified method.
2. Defined benefit plan
(1) Reconciliation between retirement benefit obligations at beginning of period and end of period
Fiscal year ended
March 31, 2021
Retirement benefit obligation at beginning of period

Current service costs(Millions of yen)
23,523Fiscal year ended March 31, 2022
(Millions of yen)
24,001(Thousands of U.S. dollars)
196,075

1,191

1,207

9,860

Interest costs

150

176

1,437

Actuarial gains and losses arising during period

(302)

(142)

(1,167)Retirement benefits paid

(611)

(852)

(6,960)

-

97

794

-

229

1,876

-

(223)

(1,823)

50

27

223

24,001

24,520200,317

Past service costs
Amount transferred due to change from
simplified accounting method to principle
methodExpenses associated with change from
simplified accounting method to principle
methodEffect of exchange rate changes
Retirement benefit obligation at end of period- 46 -

(2) Reconciliation between plan assets at beginning of period and end of period (excluding plans towhich simplified method is applied stated in (3))
Fiscal year ended
March 31, 2021
Plan assets at beginning of period(Millions of yen)
21,924

Expected return on plan assets

Fiscal year ended March 31, 2022
(Millions of yen)
25,756(Thousands of U.S. dollars)
210,413

318

365

2,989

3,093

53

439

Contributions from employer

894

905

7,395

Retirement benefits paid

(487)

(787)

(6,435)

13

(9)

(81)

25,756

26,283214,720

Actuarial gains and losses arising during period

Effect of exchange rate changes
Plan assets at end of period(3) Reconciliation between net defined benefit liabilities for plans to which simplified method isapplied at beginning of period and end of period
Fiscal year ended
March 31, 2021
Net defined benefit liability at beginning of period(Millions of yen)
281

Fiscal year ended March 31, 2022
(Millions of yen)
462

(Thousands of U.S. dollars)
3,778

Retirement benefit expenses

52

33

273

Retirement benefits paid

(19)

(240)

(1,965)

-

(97)

(794)

Extra retirement payments

157

-

-

Other

(15)

55

453

5

11

95

462

225

1,841

Amounts transferred due to change from
simplified accounting method to principle
methodEffect of exchange rate changes
Net defined benefit liability at end of period- 47 -

(4) Reconciliation between retirement benefit obligation and plan assets at end of period, anddefined benefit liability and defined benefit asset for retirement recognized on the
consolidated balance sheet
As of March 31, 2021
Retirement benefit obligation for funded plans

Plan assets(Millions of yen)
24,001(Millions of yen)
24,520(Thousands of U.S. dollars)
200,317(25,756)(26,283)(214,720)(1,755)(1,763)(14,403)

462

225

1,841

(1,292)(1,537)(12,562)

Retirement benefit obligation for unfunded plans

Net balance of liability and asset
recognized on the consolidated balance sheet

As of March 31, 2022

Net defined benefit liability

4,098

4,054

33,123Net defined benefit asset(5,391)(5,592)(45,685)

Net balance of liability and asset
recognized on the consolidated balance sheet(1,292)(1,537)(12,562)(5) Retirement benefit expenses and their breakdown
Fiscal year ended
March 31, 2021
Current service costs(Millions of yen)
1,191

Fiscal year ended March 31, 2022
(Millions of yen)
1,207

(Thousands of U.S. dollars)
9,860Interest costs

150

176

1,437

Expected return on plan assets

(318)

(365)

(2,989)Amortization of actuarial gains and losses

628

1,044

8,530

Amortization of past service costs

(0)

(17)

(139)

-

229

1,876

Other

(47)

(53)

(436)

Retirement benefit expenses applying
simplified method

52

33

273

1,657

2,254

18,413

Expenses associated with change from
simplified accounting method to principle
methodRetirement benefit expenses under defined
benefit plans(Note) In addition to the above, for the fiscal year ended March 31, 2021, ¥1,490 million in extra
retirement payments and other was recorded as part of business structure improvement expenses under
extraordinary losses.
In addition to the above, for the fiscal year ended March 31, 2022, ¥118 million ($965 thousand) in
extra retirement payments and other was recorded as part of business structure improvement expenses
under extraordinary losses.

- 48 -

(6) Remeasurements of defined benefit plans
The breakdown of the amount recognized in remeasurements of defined benefit plans (before tax
effect) in the consolidated statement of comprehensive income is as follows:
Fiscal year ended
March 31, 2021
(Millions of yen)0

Past service costs
Actuarial gains and losses
Total

Fiscal year ended March 31, 2022
(Millions of yen)
17

(Thousands of U.S. dollars)
139(4,025)(1,240)(10,137)(4,024)(1,223)(9,998)(7) Accumulated remeasurements of defined benefit plans
The breakdown of the amount recognized in accumulated remeasurements of defined benefit plans(before tax effect) on the consolidated balance sheet is as follows:
As of March 31, 2021
(Millions of yen)(73)

Unrecognized past service costs
Unrecognized actuarial gains and losses
Total

As of March 31, 2022
(Millions of yen)
(56)

(Thousands of U.S. dollars)
(464)

2,093

866

7,075

2,019

809

6,610

(8) Plan assets
1) Breakdown of plan assets
Percentage of each main category to total plan assets is as follows:
As of March 31, 2021

As of March 31, 2022

Bonds

31%

29%

Securities

35%

35%

Cash and deposits

6%

6%

Alternative investments (Note 1)

23%

25%

Other

5%

5%

100%

100%

Total (Note 2)(Notes) 1. Alternative investments mainly consist of investment to hedge funds.
2. Total plan assets include retirement benefit trusts of 7% and 7% that are set up for a
corporate pension plan as of March 31, 2021 and 2022, respectively.
2) Determination of expected long-term rate of return on plan assets
In determining the expected long-term rate of return on plan assets, the Company takes into
consideration the current and future plan asset allocation, and the current and expected longterm rate of return on various asset categories comprising plan assets.
(9) Actuarial assumptions
Major bases for actuarial calculation
Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
Discount rate

0.5～0.6%

0.5～0.7%

Long-term expected rate of return

1.5%

1.5%

Expected rate of salary increase

2.9%

2.9%

3. Defined contribution plan
The required contribution to the defined contribution plan amounts to \356 million and \372 million($3,038 thousand) for the fiscal years ended March 31, 2021 and 2022, respectively.

- 49 -(Tax Effect Accounting)
1. Breakdown of major reasons for deferred tax assets and deferred tax liabilities
As of March 31, 2021
(Millions of yen)
Deferred tax assets:
Net losses carried forward (Note 2)
Allowance for doubtful accounts
Provision for bonuses
Provision for product warranties
Net defined benefit liability
Provision and accrual for directors'
retirement benefits
Loss on valuation of inventories
Research and development expenses
Impairment loss
Deferred revenue
Elimination of unrealized income oninventories
Other
Total gross deferred tax assets
Valuation allowance for tax losses carriedforward (Note 2)
Valuation allowance for total amount of
deductible temporary differences
Valuation allowance (Note 1)
Total deferred tax assets
Deferred tax liabilities:
Net defined benefit asset
Valuation difference on available-for-salesecurities
Retained earnings of subsidiaries andassociates
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)

As of March 31, 2022
(Millions of yen)(Thousands of U.S. dollars)

4,549
560
617
309
1,182

4,577
574
776
357
1,294

37,390
4,693
6,341
2,921
10,571

100

95

778

1,390
1,362
371
444

1,582
1,761
275
416

12,931
14,392
2,252
3,402

659

925

7,557

3,387

4,743

38,755

14,935

17,380141,987(4,431)(3,664)(29,936)(4,875)(4,613)(37,690)(9,306)
5,628(8,278)9,102(67,627)
74,360(1,130)(1,274)(10,414)(8,089)(9,765)(79,777)(1,386)(1,723)(14,079)

(32)

(26)

(214)

(10,638)(5,010)(12,790)(3,687)(104,485)(30,125)(Notes) 1. There is no significant change in the valuation allowance.
2. The amounts of tax losses carried forward and deferred tax assets by carry-forward expiry
period are as follows:
As of March 31, 2021
Due after
Due after
Due after
Due after
one year
two years
three years four years
Due after
Total
and up toand up toand up toand up to
five years
two years
three years four years
five years(Millions of (Millions of (Millions of (Millions of (Millions of (Millions of (Millions of
yen)
yen)
yen)
yen)
yen)
yen)
yen)
Due within
one yearTax losses
carriedforward (*1)
Valuation
allowance
Deferred tax
assets

109

399

114

212

252

3,459

4,549

45

399

114

212

252

3,406

4,431

64

-

-

-

-

53

117

- 50 -

As of March 31, 2022
Due after
Due after
Due after
Due after
one year
two years
three years four years
Due after
Total
and up toand up toand up toand up to
five years
two years
three years four years
five years(Millions of (Millions of (Millions of (Millions of (Millions of (Millions of (Millions of
yen)
yen)
yen)
yen)
yen)
yen)
yen)
Due within
one yearTax losses
carriedforward (*1)
Valuation
allowance
Deferred tax
assets

347

86

215

259

329

3,337

4,577

184

7

44

105

40

3,282

3,664

163

79

171

154

289

54

912

Due after
one yearand up totwo years(Thousandsof U.S.
dollars)

Due after
two years
and up tothree years(Thousandsof U.S.
dollars)

Due after
three years
and up tofour years(Thousandsof U.S.
dollars)

Due after
four years
and up to
five years(Thousandsof U.S.
dollars)

As of March 31, 2022
Due within
one year(Thousandsof U.S.
dollars)

Due after
five years

Total(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)

Tax losses
carried
2,841
708
1,763
2,118
2,693
27,264
forward (*1)
Valuation
1,504
61
362
857
332
26,817
allowance
Deferred tax
1,337
647
1,401
1,260
2,361
446
assets(*1) The amounts of tax losses carried forward are multiplied by the statutory tax rate.

37,39029,936
7,454

2. Reconciliation of significant difference between statutory tax rate and effective tax rate after
application of tax effect accounting
As of March 31, 2021 As of March 31, 2022
Statutory tax rate
Reconciliation:
Increase (decrease) in valuation allowancefor deferred tax assets
Non-taxable income for income tax purposes(e.g. dividend income)Non-deductible expenses for income tax
purposes (e.g. entertainment expenses)
Inhabitant tax on per capita basis
Tax deductions related to R&D activities
Different tax rates applied to consolidated
subsidiaries
Amortization of goodwill
Share of profit (loss) of entities accounted
for using equity method
Retained earnings of subsidiaries andassociates
Gain on change in ownership interest in
equityOther
Effective tax rate after application of tax
effect accounting

30.6%

30.6%

(236.2)(6.5)(67.6)

(0.5)

606.7

2.6

39.6
(132.4)

0.3
(5.2)

293.3

(3.2)

81.9

0.3

20.9

0.2

109.1

2.1

(117.3)

-

(2.2)

(0.6)

626.5

19.9

- 51 -

(Revenue Recognition)
1. Information on disaggregation of revenue from contracts with customers
Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment
Light sourcesbusiness

Opticalequipment
business

Imagingequipment
business

Otherbusinesses(Note)

Total

Total

Halogen lamps

10,450--10,450-10,450Discharge lamps

38,334--38,334-38,334

Solid-state light sources

9,026

-

-

9,026

-

9,026

UV equipment-

28,812-

28,812-

28,812

Optical equipment and other-

19,293-

19,293-

19,293Cinema equipment--

17,017

17,017-

17,017

General imaging equipment--

19,72919,729-19,729

Other
Revenue from contracts with customers

Other revenue
Sales to external customers

-

-

-

-

3,450

3,450

57,811

48,10536,746142,6633,450

146,114

-

280

2,426

2,707

-

2,707

57,811

48,386

39,173

145,3713,450

148,821(Thousands of U.S. dollars)
Reportable segment
Light sourcesbusiness

Opticalequipment
business

Imagingequipment
business

Otherbusinesses(Note)

Total

Total

Halogen lamps

85,373--85,373-85,373

Discharge lamps

313,161--

313,161-

313,161

Solid-state light sources

73,740--73,740-73,740UV equipment-

235,377-

235,377-

235,377

Optical equipment and other-

157,610-

157,610-

157,610

Cinema equipment--

139,019

139,019-

139,019

General imaging equipment--

161,176

161,176-

161,176

Other
Revenue from contracts with customers

Other revenue
Sales to external customers

-

-

-

-

28,18928,189472,275

392,988

300,195

1,165,459

28,1891,193,649

-

2,292

19,823

22,116-

22,116472,275

395,281

320,019

1,187,576

28,1891,215,765(Note) “Other businesses” represents business segments that are not included in other reportable segments
and other revenue-generating business activities, including industrial machinery and fund management
activities.
2. Information that forms the basis for understanding revenue from contracts with customers(1) Sales of products
For halogen lamps, discharge lamps and solid-state light sources, this is primarily the
manufacturing and sales of various lamps. For the sales of these products, the control of the
products is deemed to be transferred upon delivery to the customer, so revenue is recognized at
the time of delivery. The alternative treatment prescribed in Paragraph 98 of the Implementation
Guidance on Accounting Standard for Revenue Recognition has been applied for products sold inJapan, and revenue is recognized when products are shipped provided that there is an ordinarylength of time between shipping and when the control is transferred to customers. In addition,
consideration for transactions is generally received within four months after delivery of the
product.
For UV equipment, optical equipment and other, this is primarily the manufacturing and sales ofvarious lithography equipment. For the sales of these products, where there is installation ofsuch products based on a contract with the customer, customers generally do not receive benefits- 52 -

without installation, so the products and installation are identified as a single performanceobligation. In such case, the control of the assets is transferred to the customer when theconfirmation of agreed performance such as the customer’s acceptance of the product has been
completed, so that is when revenue is recognized. In addition, for some products that do notinclude installation work, the control of the products is deemed to be transferred upon delivery
to the customer, so revenue is recognized at the time of delivery. Further, consideration fortransactions is primarily received in stages according to the payment terms of the contract.
For cinema equipment and general imaging equipment, this is primarily the manufacturing andsales of various projectors. For the sales of these products, the control of the products isdeemed to be transferred upon delivery to the customer, so revenue is recognized at the time ofdelivery. Significant financing components exist when part of the payments represent receivables
over a long period, but this is immaterial. In addition, consideration for transactions isgenerally received within two months after delivery of the product. For some customers,
consideration is received in stages according to the payment terms of the contract.
(2) Provision of maintenance services
For UV equipment, optical equipment and other, maintenance services are provided for the
products sold based on a separate contract. Maintenance services primarily guarantee the steady
operations of products, including the replacement of maintained items. For the identification of
performance obligations, for contracts that provide for performance obligations to be satisfied
over time, revenue is recognized according to the contract period. For contracts where theperformance obligations are primarily satisfied when the provision of maintenance ends, revenue isrecognized at such time. In addition, for optical equipment and some other products, variableconsideration corresponding to the product’s capacity utilization rate is included in thetransaction price only to the extent that it is highly probable that a material reversal of the
cumulative amount of revenues recognized will not occur when the uncertainty associated with thevariable consideration is subsequently resolved. Further, consideration for transactions isreceived in stages, generally corresponding to the progress of performance obligations inaccordance with the terms of the contract.
For cinema equipment and general imaging equipment, maintenance services are provided for the
products sold based on a separate contract. Maintenance services primarily guarantee the steady
operations of products, including the replacement of maintained items. For the identification of
performance obligations, for contracts that provide for performance obligations to be satisfied
over time, revenue is recognized according to the contract period. In addition, consideration fortransactions is primarily received in stages according to the payment terms of the contract.
3. Information concerning the satisfaction of performance obligations based on contracts withcustomers and the relationship with the cash flows that arise from such contracts as well as theamount of revenue and timing forecast to be recognized in or after the next fiscal year fromcontracts with customers that are in place at the end of the current fiscal year
(1) Balance of contract assets and contract liabilities
Fiscal year ended March 31, 2022
Receivables from contracts with customers (at beginning of period)(Millions of yen)
33,806

Receivables from contracts with customers (at end of period)

34,415281,151--

Contract assets (at beginning of period)
Contract assets (at end of period)(Thousands of U.S. dollars)
276,177--

Contract liabilities (at beginning of period)

12,280100,319

Contract liabilities (at end of period)

14,388

117,547

Contract liabilities for UV equipment, optical equipment and other are related to advances
received from customers according to the payment terms of the contract for products that include
installation work and for which revenue is recognized when the confirmation of agreed performance- 53 -

such as the customer’s acceptance of the product has been completed. For cinema equipment andgeneral imaging equipment, this primarily refers to advances received from customers according to
the payment terms of the contract for maintenance services contracts. Contract liabilities arereversed on recognition of revenue.
The amount of revenue recognized in the current fiscal year that was included in the balance ofcontract liabilities as of the beginning of the period is ¥8,362 million ($68,311 thousand).
The change in contract liabilities was due to a decrease from the reversals associated with therecognition of revenue and an increase from the receipts from customers. There were no changes interms causing significant change in the balance.
There was no revenue (primarily, change in transaction price) recognized in the current fiscal
year arising from performance obligations satisfied (or partially satisfied) in past periods.
(2) Transaction price allocated to remaining performance obligations
The Company and its consolidated subsidiaries apply the practical expedient in describing thetransaction price allocated to remaining performance obligations and do not include notes oncontracts where the initially expected contract period is one year or less.
(Light sources business)
For the light sources business segment, the initially planned contract period with customers is
one year or less, so the total amount of transaction price allocated to remaining performanceobligations and the period forecast for recognizing revenue are omitted.
(Optical equipment business)
Performance obligations that have not yet been satisfied (or partially not yet satisfied) were¥18,864 million ($154,111 thousand) at the end of the current fiscal year. Such performanceobligations are related to the manufacturing and sales of products that include installation workin UV equipment, optical equipment and other. Approximately 60% of the revenue is forecast to berecognized within one year from the end of the period, with approximately 30% recognized within
two years and the remaining 10% recognized within three years.
(Imaging equipment business)
Such performance obligations are related to the manufacturing and sales of various projectors incinema equipment and general imaging equipment, with the total amount of transaction priceallocated to remaining performance obligations and the period forecast for recognizing revenue asfollows.
Fiscal year ended March 31, 2022
(Millions of yen)547

Due within one year

(Thousands of U.S. dollars)
4,472

Due after one year and up to two years

712

5,824

Due after two years and up to three years

647

5,288

Due after three years and up to four years

566

4,624

Due after four years and up to five years

411

3,360

Due after five years
Total- 54 -

747

6,107

3,632

29,677

(Segment Information, etc.)
Segment information
1. Summary of reportable segments
The Company defines a reportable segment as a component of the Company for which discrete financial
information is available and whose operating results are regularly reviewed by the Board of Directors
to assess its business performance and make decisions about resources to be allocated to the segment.
The Company has a division system based on product type and similarity in sales market, etc., andeach division develops and implements comprehensive domestic and overseas strategies for its
development, manufacturing and sales of products and service, and engages in its business activities
globally.
Thus, reportable segments of the Company are divided into three categories based on product typeand sales market.
“Light sources business” conducts manufacturing and sales of halogen lamps and discharge lamps,
etc.
“Optical equipment business” conducts manufacturing and sales of optical equipment, etc.
“Imaging equipment business” conducts manufacturing and sales of imaging equipment, etc.
2. Methods of determining the amounts of net sales, profit or loss, assets, liabilities, and otheritems by reportable segment
Accounting policies for business segment reported are generally consistent with those given in“Significant Matters Forming the Basis of Preparation of Consolidated Financial Statements.”
Segment profit presents the operating profit of the segment.
Intersegment sales and transfers are recognized based on the market price.

- 55 -

3. Information about net sales, segment profit or loss, assets, liabilities and other items byreportable segment
Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segment

Other
businesses(Note 1)Eliminations
orunallocatedamounts(Note 2)

Amounts on
consolidated
financialstatements(Note 3)Light
sourcesbusiness

Opticalequipment
business

Imagingequipment
business

Total

Sales to external customers
Intersegment sales or transfers

45,77458

38,99942

31,052
10

115,826
111

2,732
31

118,558
143- 118,558(143)(143) 118,558

Total

Net sales

Total

45,83339,041

31,063

115,938

2,763

118,701

Segment profit (loss)

3,232

845

(3,491)

587

56

644

120

764

Segment assets

98,804

68,18349,424

216,41260,439276,852

13,422

290,275

Other items:
Depreciation

2,775

2,053

2,124

6,953

35

6,988

-

6,988

Amortization of goodwill
177
182
359
359
359
Investment in associates
221
221
221
221
under equity method
Increase in property,
plant and equipment and
2,031
3,977
459
6,468
417
6,886
6,886
intangible assets(Note 4)(Notes) 1. “Other businesses” represents business segments that are not included in other reportablesegments and other revenue-generating business activities, including industrial machinery andfund management activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to \120 million,
include elimination of intersegment transactions totaling \150 million.
(2) Eliminations or unallocated amounts of segment assets, amounting to \13,422 million, include
elimination of intersegment receivables and payables totaling ¥(10,250) million and corporate
assets not allocable to any reportable segment or other revenue-generating businessactivities totaling ¥23,786 million that consists primarily of surplus funds (cash andsecurities) and long-term investments (investment securities), etc.
3. Segment profit (loss) is reconciled to operating profit on the consolidated statement ofincome.
4. The increase in long-term prepaid expense is included in increases in property, plant andequipment and intangible assets.

- 56 -

Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment

Other
businesses(Note 1)Eliminations
orunallocatedamounts(Note 2)

Amounts on
consolidated
financialstatements(Note 3)Light
sourcesbusiness

Opticalequipmentbusiness

Imagingequipmentbusiness

Total

Intersegment sales or transfers

57,811
9

48,38624

39,173
7

145,371
41

3,450
36

148,82177

Total

57,82048,41039,180145,4123,486

148,899(77) 148,821

Segment profit (loss)

8,288

4,620

(53)

12,855112

12,968100

13,068101,016

84,88851,325237,230

67,260304,490

16,605321,096

3,025

2,206

1,671

6,903

36

6,939

－

6,939

52

110

－

163

－

163

－

163

－

191

－

191

－

191

－

191

1,831

3,600

1,673

7,104

274

7,378

－

7,378

Net sales
Sales to external customers

Segment assets

Total－ 148,821(77)－

Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property,
plant and equipment andintangible assets (Note 4)

Fiscal year ended March 31, 2022
(Thousands of U.S. dollars)
Reportable segment
Lightsourcesbusiness

Opticalequipment
business

Imagingequipment
business472,275

395,281

320,019 1,187,576

79

199

Total

Other
businesses(Note 1)

Total

Eliminations
orunallocatedamounts(Note 2)

Amounts on
consolidated
financialstatements(Note 3)

Net sales
Sales to external customers
Intersegment sales or transfers

58

337

28,189 1,215,765
295

632

- 1,215,765
(632)

-

Total

472,355

395,480

Segment profit (loss)

67,71037,742

Segment assets

825,227

693,478

419,293 1,937,999

Other items:
Depreciation

24,71418,025

13,65656,396295

56,692-

56,692

427

904

-

1,332

-

1,332

-

1,332

-

1,565

-

1,565

-

1,565

-

1,565

14,95929,41013,66958,0392,239

60,278-60,278

Amortization of goodwill
Investment in associates
under equity method
Increase in property,
plant and equipment andintangible assets(Note 4)

320,077 1,187,913(433)

105,020

28,484 1,216,398
920

105,940

549,465 2,487,465(632) 1,215,765
822

106,762

135,656 2,623,121(Notes) 1. “Other businesses” represents business segments that are not included in other reportablesegments and other revenue-generating business activities, including industrial machinery andfund management activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to \100 million ($822
thousand), include elimination of intersegment transactions totaling \107 million ($876
thousand).
(2) Eliminations or unallocated amounts of segment assets, amounting to \16,605 million ($135,656
thousand), include elimination of intersegment receivables and payables totaling ¥(9,597)
million ($(78,403) thousand) and corporate assets not allocable to any reportable segment orother revenue-generating business activities totaling ¥26,321 million ($215,030 thousand)that consists primarily of surplus funds (cash and securities) and long-term investments(investment securities), etc.
3. Segment profit (loss) is reconciled to operating profit on the consolidated statement of- 57 -

income.
4. The increase in long-term prepaid expense is included in increases in property, plant andequipment and intangible assets.
Related information
Fiscal year ended March 31, 2021
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
35,385

North America
U.S.A.
19,289Asia

Europe

Other
851

China

8,553

Other areas

Other

29,614

24,112

751

Total
118,558(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
32,179North America
U.S.A.
6,780

Canada1,698

Europe
1,157

Asia
3,004

Other areas

Total
2

44,822

3. Information about major customers
Information about major customers has been omitted since there is no external customer who accounts
for 10% or more of net sales in the consolidated statement of income.

- 58 -

Fiscal year ended March 31, 2022
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
39,955

North America
U.S.A.

EuropeOther28,296

Asia

1,278

China

11,244

Other areas

Other

37,36430,054

Total

627

148,821(Thousands of U.S. dollars)Japan
326,404

North America
U.S.A.

EuropeOther

231,165

Asia

10,442

91,862Other areas

China

Other

305,242

245,527

Total

5,122

1,215,765(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
32,502

North America
U.S.A.

Canada7,470

Europe

1,430

Asia

1,366

Other areas

3,391

Total
-

46,162(Thousands of U.S. dollars)Japan
265,525

North America
U.S.A.

Canada61,026

11,689EuropeAsia

11,160

Other areas

27,707Total
6377,116

3. Information about major customers
Information about major customers has been omitted since there is no external customer who accounts
for 10% or more of net sales in the consolidated statement of income.
Information on impairment loss on non-current assets by reportable segment
Fiscal year ended March 31, 2021
(Millions of yen)

Impairment loss

Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
111
112
445

Total
669

Other
businesses

Eliminations
orunallocatedamounts

-

-

Total
669

(Note) The impairment losses recorded in the consolidated statement of income as business structure
improvement expenses are as follows.
"Optical equipment business""Imaging equipment business"\81 million\445 million

Fiscal year ended March 31, 2022
(Millions of yen)

Impairment loss

Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
14
58
91- 59 -

Total
164

Other
businesses

Eliminations
orunallocatedamounts

-

-

Total
164

Fiscal year ended March 31, 2022
(Thousands of U.S. dollars)

Impairment loss

Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
122
474
744

Total
1,341

Other
businesses

Eliminations
orunallocatedamounts

-

-

Total
1,341

Information on amortization and unamortized balance of goodwill by reportable segment
Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness

Total

Other
businesses

Eliminations
orunallocatedamounts

Total

Amortization forthe year

177

182

-

359

-

-

359

Balance

126

208

-

335

-

-

335

Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness

Total

Other
businesses

Eliminations
orunallocatedamounts

Total

Amortization forthe year

52

110

-

163

-

-

163

Balance

137

97

-

235

-

-

235

Fiscal year ended March 31, 2022
(Thousands of U.S. dollars)
Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
Amortization forthe year
Balance

Total

Other
businesses

Eliminations
orunallocatedamounts

Total

427

904

-

1,332

-

-

1,332

1,126

797

-

1,924

-

-

1,924

Information on gain on negative goodwill by reportable segment
Fiscal year ended March 31, 2021
Not applicable.
Fiscal year ended March 31, 2022
Not applicable.

- 60 -

Related party information
Fiscal year ended March 31, 2021
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
Fiscal year ended March 31, 2022
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
(Per Share Information)
Fiscal year ended March 31, 2021
Net assets per share

Fiscal year ended March 31, 2022

¥1,750.79

Net assets per share¥1,949.73

Net assets per share$15.92

Basic loss per share(¥5.70)
Diluted earnings per share is not

Basic earnings per share¥104.54
Diluted earnings per share is not

Basic earnings per share$0.85
Diluted earnings per share is notpresented since the Company
posted a basic loss per share andpresented since no potential
shares exist.

presented since no potential
shares exist.

no potential shares exist.
(Notes) 1. The basis used for calculating basic earnings (loss) per share is as follows:
Fiscal year ended
March 31, 2021

Fiscal year ended March 31, 2022

(Millions of yen)
Profit (loss) attributable to owners of
the parent(Thousands of U.S. dollars)(687)

12,606

102,986

-

-

-

(687)

12,606

102,986

120,551,331

120,586,712

120,586,712

Profit (loss) not attributable tocommon shareholders
Profit (loss) attributable to owners of
the parent attributable to commonsharesAverage number of common shares
outstanding during the year (Shares)(Millions of yen)

2. The Company’s shares held by the trust for the stock remuneration plan for directors arerecorded as treasury shares in shareholders’ equity which are deducted from the total numberof shares issued at the balance sheet date for the purpose of calculating net assets per share(251,200 shares and 234,000 shares as of March 31, 2021 and 2022, respectively).
The Company’s shares held by the trust for the stock remuneration plan for directors arerecorded as treasury shares in shareholders’ equity which are deducted from the weightedaverage number of shares outstanding during the year for the purpose of calculating the basic
earnings (loss) per share (276,995 shares and 238,895 shares for the fiscal years ended March
31, 2021 and 2022, respectively).

- 61 -

(Subsequent Events)
Purchase of treasury shares
In accordance with the resolution by the Board of Directors meeting held on May 11, 2022 to purchasetreasury shares pursuant to the provisions of Article 156 of the Companies Act, as applied mutatis
mutandis pursuant to the provisions of Article 165, paragraph 3 of the Companies Act, the Company has
made the purchase of treasury shares as follows:(1) Reason for purchase of treasury shares
To raise capital efficiency and enable the implementation of an agile capital policy.
(2) Details of purchase
Type of shares to be purchased:
Total number of shares to be purchased:

Common shares of the Company
3,000,000 shares (maximum)

Total amount of shares to be purchased:
Purchase period:\5,000,000,000 ($40,846 thousand) (maximum)
May 12, 2022 to December 23, 2022

(3) Results of purchase
Type of shares purchased:

Common shares of the Company

Total number of shares purchased:
Total amount of shares purchased:

1,865,000 shares\3,170,865,000 ($25,903 thousand)Purchase period:
Purchasing method:

May 12, 2022 to June 23, 2022
Market purchase on the Tokyo Stock Exchange- 62 -

5) Annexed Consolidated Detailed Schedules
Annexed detailed schedule of corporate bonds
Not applicable.
Annexed detailed schedule of borrowings

Classification

Balance atBalance at
beginning
Balance atof current
beginning of
end of current
current
periodperiod(Thousands
period(Millions of yen)
(Millions of yen)of U.S.
dollars)

Balance at
end ofcurrent
period(Thousandsof U.S.
dollars)

Averageinterest
rate(%)

Repayment
term

Short-term loans payable

6,058

2,185

49,491

17,856

0.3-

Current portion of long-termloans payable

3,520

16,40228,755

133,993

1.8

-

80

12

654

105

0.0

-

Long-term loans payable(excluding current portion)

15,056-

123,001---

Lease obligations (excluding
current portion)

191

61

1,562

501

0.0

From 2023
to 2035

24,906

18,662

203,465

152,457--

Current portion of leaseobligations

Total(Notes) 1. The average interest rate represents the weighted-average interest rate over the year-end
balance of loans.
2. The average interest rates on lease obligations are omitted for lease obligations which arerecorded in the consolidated balance sheet at the amount before deducting interest equivalents
included in the total lease payment. The average interest rates of lease obligations for which
the standard method is applied is shown on the table above.
3. The redemption schedule for long-term loans payable and lease obligations (excluding current
portions) for the five years after the consolidated balance sheet date is as follows:
Due after one year
and up to two years(Millions of yen)
Lease obligations

6

Due after one year
and up to two years(Thousands of U.S. dollars)

Lease obligations

Due after two years
and up to three years(Millions of yen)

4

Due after two years
and up to three years(Thousands of U.S. dollars)

55

39

Due after three years
and up to four years(Millions of yen)

4

Due after three years
and up to four years(Thousands of U.S. dollars)

39

Due after four years
and up to five years(Millions of yen)
4

Due after four years
and up to five years(Thousands of U.S. dollars)

39

Annexed detailed schedule of asset retirement obligations
Information is omitted because the amounts of asset retirement obligations at the beginning and theend of the current fiscal year are not more than 1% of the total amounts of liabilities and net assets
at the beginning and the end of the current fiscal year, in accordance with the provision under Article
92-2 of the Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial
Statements.

- 63 -

(2) Other Information
Quarterly information for the fiscal year ended March 31, 2022
First three months

First six months

First nine months

Fiscal year ended
March 31, 2022

Net sales (Millions of yen)

34,981

71,594

109,714

148,821

Profit before income
taxes (Millions of yen)

4,214

8,468

13,284

15,762

Profit attributable toowners of the parent(Millions of yen)

3,378

6,506

10,187

12,606

Basic earnings per share (Yen)

28.02

53.96

84.48

104.54(Cumulative period)(Accounting period)
Basic earnings per share (Yen)First quarter

Second quarter

28.02

25.94

Third quarter

Fourth quarter

30.52

20.06

Quarterly information for the fiscal year ended March 31, 2022
First three months

First six months

First nine months

Fiscal year ended
March 31, 2022

Net sales(Thousands of U.S. dollars)

285,773584,877

896,288

1,215,765

Profit before income taxes(Thousands of U.S. dollars)

34,43069,184

108,524

128,769

Profit attributable to ownersof the parent(Thousands of U.S. dollars)

27,59653,153

83,222102,986

Basic earnings per share(U.S. dollars)

0.22

0.44

0.69

0.85

(Cumulative period)(Accounting period)
Basic earnings per share(U.S. dollars)First quarter

Second quarter

0.22

0.21

- 64 -

Third quarter
0.24

Fourth quarter
0.16