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

May 15, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

IWATSU ELECTRIC CO., LTD.
Tokyo Stock Exchange
6704
https://www.iwatsu.co.jp
Shogo Kimura, President
Hidenori Tokida, Director & Executive Officer, General Manager of Management
Division
Telephone:+81-3-5370-5111
Scheduled date of annual general meeting of shareholders:June 28, 2023
Scheduled date to commence dividend payments:–
Scheduled date to file annual securities report:
June 28, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (April 1, 2022-March 31,
2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Revenue
Fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen% Millions of yen

22,90323,182

Note: Comprehensive income

(1.2)
6.8

Reference:% Millions of yen

(983)
501

Diluted earnings
per shareYen(118.64)
59.96

Profit attributable toowners of parent

Ordinary profit––

For the fiscal year ended March 31, 2023
For the fiscal year ended March 31, 2022

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

Operating profit

(905)
590

%

(1,181)595–(88.6)––¥(957) million [–%]
¥772 million [(86.0)%]

Return on equity

Yen

–
–

% Millions of yen

Ordinary profit/
total assets

Operating profit/
net sales

%

%

%

(4.8)
2.4

(2.5)
1.6

(4.3)
2.2

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023¥– million
For the fiscal year ended March 31, 2022¥– million(2) Consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

35,31636,441

24,17625,35968.5
69.6

2,425.27
2,551.64

Reference:

EquityAs of March 31, 2023
As of March 31, 2022

¥24,176 million¥25,359 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

(439)
1,318

(467)
(549)

(211)
(409)

4,668
5,755

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

Total cash
dividends(Total)Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

0.00

–

25.00

25.00

251

41.7

1.0

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

25.00

25.00

49.9

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (April 1, 2023March 31, 2024)
Revenue

Full year(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen

23,600

3.0

500

%

–

Millions of
yen

600

%

–

Millions of
yen

500

%

–

Yen

50.15

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

10,080,344 shares

As of March 31, 2022

10,080,344 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

111,661 shares

As of March 31, 2022

141,711 shares(iii) Average number of shares during the period
Fiscal year ended March 31, 2023

9,958,449 sharesFiscal year ended March 31, 2022

9,934,209 shares[Reference] Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended March 31, 2023 (April 1, 2022-March 31,2023)(1) Non-consolidated operating results
Revenue
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Millions of yen

16,62017,064

Ordinary profit% Millions of yen

(2.6)
3.3

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

(Percentages indicate year-on-year changes.)% Millions of yen(1,158)81––

Diluted earnings per
share

Yen

(85.08)
34.54

Profit

Yen

–
–

(936)
288

–
–

% Millions of yen

%

(847)
343

–
(93.4)

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

33,741
34,06821,37522,26963.4
65.4

2,144.31
2,240.71

EquityAs of March 31, 2023
As of March 31, 2022

¥21,375 million¥22,269 million* These financial statements are not subject to audit by a certified public accountant or an auditing firm.
* Explanation of appropriate use of earnings forecasts and other special notes
Forward-looking statements in this document, including earnings forecasts, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, andare not intended to be a guarantee that it will achieve these forecasts. Actual results may differ
significantly due to various factors. Please refer to “Overview of Operating Results, etc.” on page 2 of
the attached materials for assumptions, etc. underlying the earnings forecasts.

Attached Materials
Index
Overview of operating results, etc. .................................................................................................................. 2
Overview of operating results, etc. ........................................................................................................... 2
Future outlook ........................................................................................................................................... 4
Basic approach to selection of accounting standards ...................................................................................... 4
Notes to consolidated financial statements ............................................................................................. 12
Notes on going concern assumption ................................................................................................. 12
Segment information ........................................................................................................................ 12
Notes on per share information ........................................................................................................ 13
Notes on significant subsequent events ............................................................................................ 14-1-

1. Overview of operating results, etc.
(1) Overview of operating results, etc.
(i) Operating results
Although our country’s economy during the current fiscal year showed progress in transitioning to
the with-Corona era, and had signs of recovery in socioeconomic activities, the situation remains
uncertain due to ongoing factors such as the prolonged Russia-Ukraine situation, the impact ofdepreciation of the yen leading to increased fuel prices, and the continued shortage of parts supply.
In such circumstances, the Group is actively promoting comprehensive management reforms toachieve thorough fixed cost reduction and accelerate the implementation of growth strategies, inaccordance with the fundamental principles of our medium-term management plan, “REBORN.”
As a specific initiative for revenue reform within the three-tier structure of our medium-term
management plan, under the first tier “Thorough reduction of fixed costs,” we established Iwatsu
Chemical Cross Co., Ltd. in October 2022 to conduct a review of our printing business operations,aiming to reduce operational costs and expand into new businesses by applying chemical
technologies developed through our printing business. Furthermore, to enhance profitability
through improved production efficiency, we have decided to transfer all shares of our overseas
production subsidiary, Iwatsu (Malaysia) Sdn. Bhd., to Silitech Technology Corporation in Marchof this year. This was part of our ongoing efforts to consolidate domestic production bases andexplore opportunities for expanding electronic component adoption, stabilizing the supply chain,and seeking synergy through business collaboration with the Walsin Group to which the shares arebeing transferred.
Regarding the second tier, “Promotion of growth strategy through business selection, concentration,
and alliances,” we have entered into a capital and business alliance with Nextgen Inc. in December
2022 to strengthen our subscription business, and in April of this year, we released our in-housecommunication platform-based cloud service called “Blue Commpaas.” With the aim of enhancing
the profitability of our real estate business, we executed a silent partnership investment in a special
purpose company in March of this year to purchase three rental apartment properties in the next
fiscal year, leading to its consolidation as a subsidiary. As stated above, the initiatives for the firstyear of the medium-term management plan are progressing steadily.
For the current fiscal year, due to one-time expenses incurred for the implementation of themedium-term management plan, the impact of the depreciation of the yen, and the increase ininventory resulting from advanced arrangement of parts to address long-term supply difficulties,
there was an increase in inventory valuation loss. As a result, the revenue for the current fiscal year
amounted to ¥22,903 million (a decrease of 1.2% from the end of the previous fiscal year), with anoperating loss of ¥983 million (compared to an operating profit of ¥501 million in the previous
fiscal year) and an ordinary loss of ¥905 million (compared to an ordinary profit of ¥590 million in
the previous fiscal year). As a result of recording an extraordinary loss of ¥270 million due to thedecision to transfer shares of Iwatsu (Malaysia) Sdn. Bhd., the loss attributable to owners of parent
amounted to ¥1,181 million (compared to a profit of ¥595 million attributable to owners of parent
in the previous fiscal year).
The following is a breakdown by segment.
Business communication systems
In business communication systems, revenue increased mainly due to an increase in orders for cloudservices in contact center solutions and large-scale contract projects by subsidiaries. However, revenue
from contract manufacturing in the production subsidiary and sales of business phones decreased due todifficulties in procuring parts and project postponement or cancellation. As a result, the overall revenue
amounted to ¥17,632 million (a decrease of 1.6% from the end of the previous fiscal year), andsegment profit/loss was a profit of ¥758 million (a decrease of 52.5% from the end of the previous
fiscal year), primarily due to an increase in valuation and disposal of inventories resulting from theadvanced arrangement of parts to prepare for rising raw material sourcing costs and procurement
difficulties and the streamlining of sales inventory.

-2-

Printing systems
In the printing system business, amidst a stagnant overall market, domestic consumables decreased dueto the backlash of pre-price revision rush demand from the previous period. As a result, revenue
amounted to ¥1,532 million (a decrease of 17.1% from the end of the previous fiscal year), andsegment profit/loss resulted in a loss of ¥166 million (a profit of ¥20 million in the previous fiscal
year), primarily due to increased disposal of inventories associated with business restructuring.
Test and measurement equipment
In the test and measurement equipment business, overall revenue amounted to ¥3,189 million (anincrease of 8.0% from the end of the previous fiscal year) as sales were influenced by the previous
year’s backlog of orders for electronic components, which increased as a result of global difficulties inprocuring parts. However, the segment profit/loss recorded a profit of ¥121 million (a decrease of
43.4% from the end of the previous fiscal year) primarily due to the increased valuation and disposal of
inventories resulting from advanced procurement of parts to prepare for supply difficulties and theconsolidation of sales inventory to align with market convergence.
Property leasing
In the property leasing business, revenue increased as a result of improved occupancy rates in rental
properties. As a result, sales revenue amounted to ¥549 million (an increase of 19.2% from the end of
the previous fiscal year), and the segment profit/loss recorded a profit of ¥158 million (an increase of
52.8% from the end of the previous fiscal year), primarily driven by the increase in revenue.
(ii) Financial position
Total assets at the end of the fiscal year under review were ¥35,586 million, a decrease of ¥854
million from the end of the previous fiscal year. Current assets were ¥16,878 million, down of ¥354
million from the end of the previous fiscal year, mainly due to an increase of ¥647 million in raw
materials and supplies and ¥371 million in work in process, while cash and deposits decreased by¥1,036 million, and accounts receivable-trade decreased by ¥440 million.
Non-current assets were ¥18,708 million, down ¥499 million from the end of the previous fiscal
year, due to decreases in intangible assets by ¥408 million and tangible fixed assets by ¥281
million, in spite of an increase of ¥190 million in investments and other assets.
Total liabilities at the end of the fiscal year under review were ¥11,139 million, an increase of ¥58
million from the end of the previous fiscal year.
Current liabilities were ¥4,129 million, down ¥146 million from the end of the previous fiscal year,
mainly due to decreases of ¥223 million in accounts payable and ¥181 million in notes andaccounts payable-trade, despite of an increase of ¥259 million in contract liabilities.
Non-current liabilities were ¥7,010 million, up ¥204 million from the end of the previous fiscal
year, mainly due to increases of ¥130 million in retirement benefit liability and ¥48 million indeferred tax liabilities.
Net assets at the end of the fiscal year under review were ¥24,446 million, a decrease of ¥912
million from the end of the previous fiscal year, mainly due to a decrease of ¥911 million in loss
attributable to owners of parent and a decrease of ¥1,159 million in retained earnings due to thedividends surplus of ¥248 million, and an increase of ¥179 million in valuation difference on
available-for-sale securities.
(iii) Cash flows
Cash and cash equivalents at the end of the fiscal year under review were ¥4,668 million, adecrease of ¥1,086 million from the previous fiscal year.
Cash flows from operating activities
Net cash used in operating activities was ¥439 million, a decrease of ¥1,758 million from the previous
fiscal year. This was mainly due to expenses of ¥1,157 million for loss before income taxes and an-3-increase of ¥1,039 million in inventories for ¥1,061 million from depreciation and a decrease of ¥603
million in accounts receivable.
Cash flows from investing activities
Net cash used in investing activities was ¥467 million, an increase of ¥82 million from the previous
fiscal year. This was mainly due to ¥293 million for the purchase of property, plant and equipment and¥190 million for time deposits.
Cash flows from financing activities
Net cash used in financing activities was ¥211 million, an increase of ¥197 million from the previous
fiscal year. This was mainly due to dividends paid of ¥247 million.
(2) Future outlook
The Group has formulated a four-year medium-term management plan, “REBORN,” with fiscal 2022
as the starting point, and is promoting with unwavering resolve bold cost structure reforms with noreservations, growth strategies that contribute to the realization of a carbon-neutral society throughenergy conservation and efficiency improvements, and ESG management.
With regard to future outlook, while it is anticipated that there will be further recovery insocioeconomic activities, as the COVID-19 pandemic transitions to the fifth category, concerns overgeopolitical risks such as the situation between Russia and Ukraine, as well as the impact on production
activities due to difficulties in obtaining parts, are expected to continue, and there are concerns about
the impact on business activities in FY2023 and beyond.
In light of such conditions, for the next consolidated fiscal year, we forecast revenue of ¥23,600
million, operating profit of ¥500 million, ordinary profit of ¥600 million, and profit attributable toowners of parent of ¥500 million, as we expect to produce and sell inventories that incurred valuation
losses in the current period in terms of profit.

2. Basic approach to selection of accounting standards
For the time being, the Group intends to prepare its consolidated financial statements in accordance withJapanese GAAP, taking into account the comparability of the consolidated financial statements between
periods and between companies.
With regard to the adoption of IFRS, the Group will take appropriate action after considering the situationin Japan and overseas.

-4-

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits

5,927

4,890

514
578

386
567

Accounts receivable - trade
Merchandise and finished goods

4,555
1,732

4,115
1,796

Work in process
Raw materials and supplies

725
3,044

1,097
3,692

154
(0)

333
(1)

17,232

16,878

Buildings and structures, net
Machinery, equipment and vehicles, net

5,377
615

5,052
485

Tools, furniture and fixtures, net
Land

562
10,032

544
9,963

15

5

16,603

16,051

Software
Other

911
45

502
45

Total intangible assets

956

548

Investments and other assets
Investment securities

Notes receivable - trade
Electronically recorded monetary claims - operating

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets

1,149

1,456

Other
Allowance for doubtful accounts

533
(34)

414
(31)

Total investments and other assets

1,648

1,838

19,20818,43836,44135,316

Total non-current assets
Total assets-5-

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

1,764

1,582

Short-term borrowings
Accounts payable - other

75
933

80
710

Contract liabilities
Income taxes payable

375
95

635
77

Provision for bonuses
Provision for product warranties

520
65

540
76

Other

444

426

4,275

4,129

Deferred tax liabilities
Provision for share awards

3,226
56

3,274
42

Retirement benefit liability
Other

2,966
557

3,097
596

Total non-current liabilities

6,805

7,010

11,081

11,139

Share capital
Capital surplus

6,025
6,948

6,025
6,948

Retained earnings
Treasury shares

11,977(135)

10,547(112)

Total shareholders’ equity

24,81523,408

304

483

0
239

124
160

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-6-

544

768

25,35924,17636,44135,316

(2) Consolidated statements of income and comprehensive Income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Revenue
Cost of sales

23,182
15,21722,90316,098Gross profit

7,964

6,805

Selling, general and administrative expenses

7,463

7,788

501

(983)

Interest income
Dividend income

5
42

20
48

Gain on investments in capital
Rental income from land and buildings

20
36

–
36

Insurance claim income
Other

4
25

27
34

Total non-operating income

135

167

Operating profit (loss)
Non-operating income

Non-operating expenses
Interest expenses23Foreign exchange losses
Loss on retirement of non-current assets

15
21

41
23

Other

6

21

Total non-operating expenses

45

90

590

(905)

Gain on sale of investment securities
Subsidy income

87
102

3
15

Total extraordinary income

189

18

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Impairment losses–

270

Loss on valuation of investment securities
Loss on disaster

112
15

–
–

Total extraordinary losses

127

270

Profit (loss) before income taxes

652(1,157)

Income taxes - current
Income taxes - deferred

105
(48)

67
(43)

Total income taxes

56

23

Profit (loss)

595(1,181)

Profit (loss) attributable to owners of parent

595(1,181)-7-

(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2022
ProfitFiscal year ended
March 31, 2023
595

(1,181)Other comprehensive income
Valuation difference on available-for-sale securities

35

179

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

130
10

124
(79)

Total other comprehensive income

176

223

Comprehensive income

772

(957)

Comprehensive income attributable to
Owners of parent

772

(957)

-8-

(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Share capital

Capital surplus

6,025

6,948

Retained earnings
11,776

Treasury shares
(147)

1
6,025

6,948

11,778

Total shareholders’equity24,603
1(147)

24,604

Changes during period
Profit attributable toowners of parent
Dividends of surplus
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

595

595

(396)

(396)
(0)

(0)

12

12

–

–

198

11

210

6,025

6,948

11,977(135)

24,815

Accumulated other comprehensive income
Valuation
Total accumulated
Foreign currency Remeasurements
difference onothertranslationof defined benefit
available-for-salecomprehensive
adjustment
plans, net of tax
securities
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

268

(130)

229

367

Total net assets

24,971
1

268

(130)

229

367

24,972

Changes during period
Profit attributable toowners of parent
Dividends of surplus
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

595
(396)
(0)
12
35

130

10

176

176

35

130

10

176

387

304

0

239

544

25,359-9-

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodChanges during period

Share capital

Capital surplus

6,025

6,948

Loss attributable toowners of parent
Dividends of surplus
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

11,977

Treasury shares(135)

24,815(1,181)(1,181)

(248)

(248)
(0)

(0)

23

23

–

(1,429)23(1,406)

6,025

6,948

10,547(112)

23,408304

Accumulated other comprehensive income
Total accumulated
Foreign currency Remeasurements
othertranslationof defined benefit
comprehensive
adjustment
plans, net of tax
income0239

544

Loss attributable toowners of parent
Dividends of surplus
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

Total shareholders’equity–Valuationdifference on
available-for-salesecurities
Balance at beginning of
periodChanges during period

Retained earnings

Total net assets

25,359(1,181)
(248)
(0)
23
179

124

(79)

223

223

179

124

(79)

223

(1,183)

483

124

160

768

24,176- 10 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation

652
1,081

(1,157)
1,061

Impairment losses
Interest and dividend income

–
(48)

270
(69)

Interest expenses
Decrease (increase) in trade receivables

2
109

3
603

Decrease (increase) in inventories
Increase (decrease) in trade payables

(852)
(168)

(1,039)(202)

Other, net

591

136

Subtotal

1,368

(392)

48

69

(2)
(195)

(2)
(129)

99

15

1,318

(439)

Purchase of property, plant and equipment
Payments into time deposits

(526)
(120)

(293)
(190)

Proceeds from withdrawal of time deposits
Other, net

120
(22)

140
(123)

Net cash provided by (used in) investing activities

(549)

(467)

(394)

(247)

Interest and dividends received
Interest paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Dividends paid
Other, net

(15)

35

Net cash provided by (used in) financing activities

(409)

(211)

Effect of exchange rate change on cash and cash equivalents

30

31

Net increase (decrease) in cash and cash equivalents

390(1,086)

Cash and cash equivalents at beginning of period

5,364

5,755

Cash and cash equivalents at end of period

5,755

4,668

- 11 -

(5) Notes to consolidated financial statements
Notes on going concern assumption
Not applicable.
Segment information
a. Reportable segments
1. Method of determining reportable segments
Reportable segments of the Company are determined as segments which separate financial
information is accessible from among the constituent units of the Company and are subject toperiodic examinations to enable the Company’s Board of Directors to decide how to allocate
management resources and assess performance.
The Company has business divisions or business subsidiaries for each product or service,formulates comprehensive strategies for products and services that they handle in domestic andoverseas, and conducts business activities.
Accordingly, the Company consists of segments based on product and service, and are divided
into four reportable segments: “Business communication systems,” “Printing systems,” “Testand measurement equipment,” and “Property leasing.”
2. Types of products and services that belong to each reportable segment“Business communication systems” manufactures and sells communication equipment.
“Printing systems” manufactures and sells printing and plate-making equipment. “Test andmeasurement equipment” manufactures and sells electronic measurement equipment. “Property
leasing” engages in the leasing, etc. of real estate.
b. Method for calculating revenue, profit or loss, assets, liabilities and other items by reportablesegment
The accounting methods for the reportable segments are, in general, the same as those used toprepare consolidated financial statements.
c. Information on revenue, profit or loss, assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment

Revenue
Revenues from externalcustomers
Transactions with othersegments

Business
communicat
ion systems

Printing
systems

Test andmeasurement equipment

Property
leasing

Adjustment

Carrying
amount17,917

1,849

2,953

460

–

23,182

–

–

–

–

–

–

Total

17,917

1,849

2,953

460

–

23,182

Segment profit (loss)

1,596

20

215

103

(1,434)

501

Segment assets

13,985

1,418

2,163

12,651

6,222

36,441

722
287

46
28

68
41

155
31

87
183

1,081
572

Other items
Depreciation
Increase in property, plant andequipment and intangible assets
Notes: 1. Adjustments made are as follows:- 12 -

(1) Adjustments of ¥(1,434) million in segment profit (loss) include ¥(1,434) million in corporate expenses notallocated to reportable segments. Corporate expenses are mainly general administrative expenses that are not
attributable to reportable segments.
(2) Adjustments of ¥6,222 million in segment assets include ¥6,222 million in corporate assets not allocated toreportable segments. Corporate assets are mainly surplus funds that are not attributable to reportable segments.
(3) Adjustments of ¥183 million in increase in property, plant and equipment and intangible assets are capital
investments for headquarter departments.
2. Segment profit (loss) is adjusted with operating profit (loss) in the consolidated statement of income.

Fiscal year ended March 31, 2023
(Millions of yen)
Reportable segment

Revenue
Revenues from externalcustomers
Transactions with othersegments
Total

Business
communicat
ion systems

Printing
systems

Test andmeasurement equipment

Property
leasing

Adjustment

Carrying
amount17,632

1,532

3,189

549

–

22,903

–

–

–

–

–

–

17,632

1,532

3,189

549

–

22,903

Segment profit (loss)
Segment assets

758

(166)

121

158

(1,855)(983)

13,516

1,432

2,459

12,4935,414

35,316

714
239

38
11

61
34

157
0

87
78

1,059
364

Other items
Depreciation
Increase in property, plant andequipment and intangible assets

Notes: 1. Adjustments made are as follows:(1) Adjustments of ¥(1,855) million in segment profit (loss) include ¥(1,855) million in corporate expenses notallocated to reportable segments. Corporate expenses are mainly general administrative expenses that are not
attributable to reportable segments.
(2) Adjustments of ¥5,414 million in segment assets include ¥5,414 million in corporate assets not allocated toreportable segments. Corporate assets are mainly surplus funds that are not attributable to reportable segments.
(3) Adjustments of ¥78 million in increase in property, plant and equipment and intangible assets are capital
investments for headquarter departments.
2. Segment profit (loss) is adjusted with operating profit (loss) in the consolidated statement of income.

Notes on per share information
a. Net assets per share
(Yen)
Item

As of March 31, 2022

As of March 31, 2023

2,551.64

2,425.27

Net assets per share

Note: The Company’s own shares that remain in the stock-granting ESOP trust and are recorded as treasury shares inshareholders’ equity are included in the number of treasury shares deducted from the total number of issued
shares at the end of the fiscal year for the purpose of calculating net assets per share. The number of treasury
shares at the end of the fiscal year was 103,900 shares for the previous fiscal year and 72,900 shares for thecurrent fiscal year.

- 13 -

b. Basic earnings (loss) per share
As of March 31, 2022

As of March 31, 2023

Item
Basic earnings (loss) per share

59.96(118.64)(Basis of calculation)
Profit (loss) attributable to ownersof parent (Millions of yen)595

(1,181)

Amount not attributable tocommon shareholders (Millions of
yen)

–

–

Profit (loss) attributable to ownersof parent related to common share(Millions of yen)595

(1,181)

Average number of commonshares during the period (Shares)

9,934,209

9,958,449

Notes: 1. Diluted earnings per share is not presented because there are no potential shares.
2. The Company’s own shares that remain in the stock-granting ESOP trust and are recorded as treasury sharesin shareholders’ equity are included in the treasury shares deducted in the calculation of the average numberof shares during the fiscal year for the purpose of calculating basic earnings per share. The average numberof treasury shares during the fiscal year was 108,650 shares for the previous fiscal year and 83,600 shares forthe current fiscal year.

Notes on significant subsequent events
Significant capital expenditures
The silent partnerships, operated by KRO Investment LLC, acquired non-current assets (beneficial
interests in trust) on April 6, 2023.
(1) Purpose of acquisition
To further strengthen the property leasing business.
(2) Details of acquired assets
Type of acquired assets The beneficial interests in trust consist of three rental apartment
properties as subject assets.
Names and locations
Tokyo

Land and buildings of three rental apartments located in the 23 wards ofAcquisition cost

¥8,770 million

Financing method
Investments in silent partnerships, including the Company, andborrowings from external parties(3) Impact on consolidated financial statements
The impact on performance due to this capital expenditure is forecasted to be effective from thefiscal year ending in March 2024 onwards.

- 14 -