Consolidated Financial Statements
USHIO INC.
Year ended March 31, 2024 with
Independent Auditor’s ReportIndependent Auditor’s Report

The Board of Directors
USHIO INC.

The Audit of the Consolidated Financial Statements
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, 2024, 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, 2024, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of theGroup in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Impairment of non-current assets in the parent company’s Photonics Solution business
Description of Key Audit Matter

Auditor’s Response

As described in (Significant Accounting
Estimates) under Notes to the Consolidated
Financial Statements, in the fiscal year ended
March 31, 2024, the Company determined that
there were indications of impairment for
property, plant and equipment amounting to4,773 million yen and for intangible assets of 3
million yen within the asset groups of the
Photonics Solution business. Consequently, an
impairment loss of 2,487 million yen wasrecorded to reflect the difference between the

We mainly performed the following audit
procedures on the net selling price used in therecognition and measurement of an impairment
loss on property, plant and equipment andintangible assets in the Photonics Solution
business.
・ We evaluated the design and operating
effectiveness of internal controls related to
the recognition and measurement of an
impairment loss.

assets' carrying values and their recoverable
amounts.
If there is an indication of impairment, such asa decline in profitability, and the total amount of
the asset group's undiscounted future cash flows
is less than its carrying value, the Company
recognizes an impairment loss. This involves
reducing the asset's carrying value to its
recoverable amount. The recoverable amount is
the higher of the net selling price or the value in
use. When determining the recoverable amountof non-current assets for an asset group in the
Photonics Solution business, the Company
measures the recoverable amount at net selling
price since the net selling price of the asset groupis greater than the value in use.
Net selling price is derived from real estateappraisal values conducted by external valuation
firms engaged by the Company. These appraisals
are based on key assumptions, such ascomparable land prices and the replacement costsof buildings.
These key assumptions involve uncertainties,
including changes in market conditions, andrequire management to exercise judgment. In
addition, since the impact on the corresponding
non-current assets is material, we determined the
impairment of non-current assets in the parent
company’s Photonics Solution business to be a
key audit matter.

・

・

・

We evaluated the competence, capabilities,
and objectivity of the external experts usedby management for the real estate appraisals
that form the basis of the net selling price.
We obtained materials prepared by theCompany to consider whether assets are
impaired, agreed the carrying values of each
asset group to the accounting books, as well
as reconciled valuation amounts to real estateappraisal values.
In examining the real estate appraisal values,
we involved valuation specialists from our
network firm, inspected real estate appraisal
records, made inquiries of external experts
used by management, and considered thepreconditions and valuation methods
adopted for these appraisal amounts.
Additionally, we reviewed the amounts
determined based on these methods.

Revenue recognition of lithography equipment in the Industrial Processes business

Description of Key Audit Matter

Auditor’s Response

As described in (Revenue Recognition) under
Notes to the Consolidated Financial Statements,
the Company’s consolidated net sales include
sales to external customers of Optical equipment(UV equipment) in the Industrial Processes
business segment of 32,910 million yen.
The aforementioned Optical equipment (UVequipment) includes projection lithographyequipment for advanced IC package substrates
and direct imaging lithography equipment for
packages and printed circuit boards, which are
manufactured and sold by the Company andcertain consolidated subsidiaries.
The sale of lithography equipment requires
high performance and stable operability poweredby cutting-edge technology. Therefore, revenue
is recognized upon confirmation of agreed
performance, such as the customer’s acceptanceof a product, as described in (Revenue

We mainly performed the following audit
procedures on the appropriateness of the timingof revenue recognition for lithographyequipment. We involved component teams inperforming audit procedures for revenue
recognition by subsidiaries.
・ We evaluated the design and operating
effectiveness of internal controls related torevenue recognition.
・ To ensure consistency with the auditors’
understanding of market and business trends,
we compared, by product type and by major
customer, net sales of lithography equipment
to external data available on trends insemiconductor-related markets and withregard to semiconductor equipment
manufacturers,
production
capacity
associated with increases in capitalRecognition) under Notes to the Consolidated
Financial Statements. As mentioned above, sincehigh performance and stable operability are ofparticular importance in the sale of lithographyequipment, it is often necessary to makejudgments depending on actual conditions inorder to satisfy performance obligations basedon the customer’s acceptance of a product.
Markets related to semiconductors, whichhave a substantial influence on sales oflithography equipment, are beginning to show
signs of a global recovery in end-user demand
for smartphones and other products associatedwith semiconductor, electronic device, andprinted circuit board markets. Currently,
however, related capital investments in thesemarkets have been restrained and operations
remain sluggish. In addition, demand remained
weak for end products related to advanced IC
package substrates, leading to temporary curbs
on capital investment.
Under these circumstances, there have been
instances where the Company’s customers
purchasing lithography equipment haverequested extensions of delivery dates. On theother hand, there is pressure to achieve
performance targets. Therefore, there is apotential risk of recording net sales in advance.
Based on the above, given that lithographyequipment has a high total sales price per unit
and materially affects the Company’s operating
results, we determined the appropriateness of thetiming of revenue recognition for these sales tobe a key audit matter.

・

・

・

investment, and manufacturing costs, such as
the cost of purchased components.
We analyzed changes in net sales and grossprofit margin by customers for the previous
fiscal year and the current fiscal year, as well
as daily fluctuations in net sales during thelast month of the current fiscal year.
To determine whether the performanceobligations relating to the sales oflithography equipment have been satisfied,
we inspected the purchase orders andacceptance certificates obtained fromexternal customers with respect to material
sales and sales identified by the analysis
mentioned above.
To determine whether or not additional costs
for satisfying performance obligations wererecorded after recording sales, we inspected
cost breakdowns by product and madeinquiries of related divisions regarding
details of the costs.

Other Information
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, and for suchinternal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.

The 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 to issue an auditor’sreport that includes our opinion. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation in accordancewith accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with the 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, actions taken to eliminate threats or safeguards applied to reduce threats to an
acceptable level.

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.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2024 are presented solely for convenience. Our audit also included thetranslation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made on the basis described in Note 4 (9) to the consolidated financial
statements.

Fee-related Information
The fees for the audits of the financial statements of USHIO INC. and its subsidiaries and otherservices provided by us and other EY member firms for the year ended March 31, 2024 are 372
million yen and 37 million yen, respectively.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Ernst & Young ShinNihon LLC
Tokyo, Japan
August 2, 2024

Ryo Kayama
Designated Engagement Partner
Certified Public Accountant

Yukitaka Makino
Designated Engagement Partner
Certified Public Accountant

Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheet
As of March 31, 2023

As of March 31, 2024

(Millions of yen)

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

AssetsCurrent assets
Cash and deposits
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
Land
Right of use assets
Accumulated depreciation
Right of use assets, net
Construction 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－ 2 －64,21965,651

433,630

38,49139,753

262,570

2,591
31,481
25,101
26,872
11,787(2,025)
198,519

4,120
37,03825,03029,982
11,607(1,683)
211,501

27,216244,641
165,326
198,034
76,669(11,118)
1,396,969

48,513(31,365)
17,14728,146(21,058)
7,087
8,684
3,589
(783)
2,806
3,363
42,767(31,377)
11,38950,48052,543(34,143)
18,40027,049(22,981)
4,067
9,062
5,022
(1,365)3,657
2,106
35,849(27,288)
8,560
45,854

347,053(225,515)
121,537
178,659(151,792)
26,86659,85633,174(9,020)24,154
13,911
236,786(180,243)
56,543302,870

252
2,782
3,034

780
7,816
8,596

5,153
51,62856,78258,484
20
4,333
6,647
2,224
(121)
71,588125,103
323,62254,30528
4,211
10,6822,502(136)
71,593126,045
337,546

358,691
190
27,81370,557
16,528(904)
472,878
832,5312,229,501

As of March 31, 2023

As of March 31, 2024

(Millions of yen)

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

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Lease liabilities
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (andother officers)
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease liabilities
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets－ 3 －26,205
3,921
796
3,210
11,731
2,530

21,648
2,455
940
4,362
11,294
2,616

142,991
16,216
6,214
28,816
74,601
17,278

-

77

508

3,775
0
10,23962,410

4,068
11,78859,252

26,874
77,862
391,364

1,410
2,189
7,997

26,4103,046
6,706

174,438
20,121
44,297

237

159

1,053

193
3,839
318
921
17,106
79,517

298
3,654
326
717
41,318100,571

1,969
24,1342,158
4,736
272,911664,275

19,556
27,767
164,332(8,733)202,922

19,556
27,767140,163(9,155)
178,331

129,169
183,406
925,780(60,474)
1,177,881

19,86920,146

133,066

20,779520

35,004
3,481

231,205
22,994

41,17058,632387,26612
244,105
323,62211
236,975
337,54676
1,565,225
2,229,501

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
Fair value adjustment of contingent
consideration
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of securities
Share of loss of entities accounted for using
equity method
Loss on valuation of securities
Loss on specified money in trust
Commission expenses
Loss on tax purpose reduction entry of noncurrent assets
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 sale of businesses (*9)
Total 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
Loss on sale of shares of subsidiaries andassociates
Business structure improvement expenses (*10)
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitLoss attributable to non-controlling interests

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)
175,025
111,809
63,215(Millions of yen) (Thousands of U.S. dollars)
179,420
1,185,079
114,504
756,306
64,916
428,772

Profit attributable to owners of the parent－ 4 －47,35351,939343,062

15,861

12,97685,710

1,602
1,051
1,909

1,581
1,111
560

10,443
7,339
3,704

10

-

-

24

29

197

-

195

1,288

353
4,951

145
447
4,070

959
2,952
26,885

218
57

305
14

2,017
93

115

164

1,088

80
87
22

6
167

45
1,109

-

120

797

87
668
20,144

178
958
16,0881,180
6,332
106,264

216
963
360
1,539

1
7,006
7,007

8
46,276
46,284

81
9
588
35
212

189
0
7,171
18
34

1,253
2
47,367
120
228

188

-

-

348
1,463
20,220
6,432
93
6,526
13,693(6)

7,414
15,681
7,075(2,177)
4,898
10,783(1)

48,972
103,576
46,734(14,382)
32,351
71,224(12)

13,69910,785

71,237

Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
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, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)
13,693(Millions of yen) (Thousands of U.S. dollars)
10,78371,224

Owners of the parent
Non-controlling interests－ 5 －(1,529)

276

1,825

6,558
1,118

14,1682,960

93,584
19,557

41

57

376

6,188
19,881

17,46328,246

115,344
186,568

19,88028,247

186,575

1

(1)

(6)

3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2023
(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

161,877(9,032)200,129

27,727

Changes of items during period
Dividends from surplus(6,041)(6,041)

Profit attributable toowners of the parent

13,69913,699Purchase of treasury shares(5,004)(5,004)

Disposal of treasury shares

6

6

5,296

-

Cancellation of treasury
sharesPurchase of shares of
consolidated subsidiaries
Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period(5,296)
40

40
92

92
-

-

40

2,454

299

2,793

19,556

27,767

164,332(8,733)202,922

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
availablefor-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

21,39914,186(598)

34,98884

Total net
assets235,202

Changes of items during period
Dividends from surplus(6,041)

Profit attributable toowners of the parent

13,699Purchase of treasury shares(5,004)

Disposal of treasury shares
Cancellation of treasury
sharesPurchase of shares of
consolidated subsidiaries
Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

6
(73)

(33)
92

(1,529)

6,592

1,118

6,181

1

6,182

(1,529)

6,592

1,118

6,181

(72)

8,902

19,86920,779520

41,17012

244,105－ 6 －Fiscal year ended March 31, 2024
(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

164,332(8,733)202,922

27,767

Changes of items during period
Dividends from surplus(5,895)(5,895)

Profit attributable toowners of the parent

10,785

10,785Purchase of treasury shares
Disposal of treasury shares

122

Cancellation of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period(122)(29,058)(30,486)(30,486)

881

1,004

29,181---(24,168)(422)(24,591)

19,556

27,767140,163(9,155)

178,331

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
availablefor-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

19,86920,779520

41,17012

Total net
assets244,105

Changes of items during period
Dividends from surplus(5,895)

Profit attributable toowners of the parent

10,785Purchase of treasury shares(30,486)

Disposal of treasury shares
Cancellation of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

1,004
276

14,2242,960

17,462(0)

17,461276

14,2242,960

17,462(0)(7,130)20,14635,004

3,481

58,632

11

236,975－ 7 －Fiscal year ended March 31, 2024
(Thousands of U.S. dollars)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period

Capital surplus

129,169

Retained earnings

Treasury shares, at cost

Total shareholders' equity

1,085,416(57,683)

1,340,308

183,406

Changes of items during period
Dividends from surplus(38,938)(38,938)

Profit attributable toowners of the parent

71,237

71,237Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period(201,361)(201,361)

5,823

6,635

192,746

-

811
(811)

(191,934)--(159,635)(2,790)(162,426)

129,169

183,406

925,780(60,474)

1,177,881

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
availablefor-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

131,241

137,250

3,437

271,928

83

Total net
assets1,612,320

Changes of items during period
Dividends from surplus(38,938)

Profit attributable toowners of the parent

71,237Purchase of treasury shares(201,361)

Disposal of treasury shares
Cancellation of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

6,635
1,825

93,955

19,557

115,338(6)

115,331

1,825

93,955

19,557

115,338(6)(47,095)

133,066

231,205

22,994387,26676

1,565,225－ 8 －4) Consolidated Statement of Cash Flows
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

(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
Fair value adjustment of contingent
consideration
Subsidy income
Interest expenses
Commission fee
Loss (gain) on trading securities
Share of loss (profit) of entities accounted
for using equity method

20,220
7,615
588
(141)
169

15,681
8,325
7,171
(283)
115

103,576
54,98747,367(1,873)
760

(58)

(483)

(3,196)348(2,653)(2,692)(17,783)-(195)(1,288)

218
(10)

(145)
305
167
-

(959)
2,017
1,109
-

115

164

1,088

Loss (gain) on sales of non-current assets

(206)

(0)

(5)

Loss on retirement of non-current assets
Loss on tax purpose reduction entry of noncurrent assets

81

189

1,253

-

120

797

Loss (gain) on sales of investment securities(927)(6,987)(46,155)

Loss (gain) on valuation of investment securities

212

34

228

188

-

-

(360)

-

-

(2,696)

1,340

8,854

(16,549)(3,000)(19,818)

4,356(5,698)(37,641)

Increase (decrease) in contract liabilities(3,369)(1,563)(10,328)

Other
SubtotalInterest and dividends received
Interest paid
Payment of business structure improvement expenses
Income taxes paid
Settlement paid

(1,070)
6,069
2,662
(210)
(170)
(7,346)(131)

146
12,711
2,726
(259)
(307)
(5,904)-969
83,95918,009(1,713)(2,030)(38,998)-

Net cash provided by (used in) operating activities

871

8,966

59,226

Loss (gain) on sale of shares of subsidiaries
and associates
Loss (gain) on sale of businesses
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade－ 9 －Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)

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

Investing activities
Payments into time deposits(28,066)(8,188)(54,086)

31,074

12,45382,256

Payments of short-term loans receivable

(37)

(52)

(347)

Collection of short-term loans receivable

50

42

279

Proceeds from sales and redemption of securities

3,887

3,237

21,382

Purchase of property, plant and equipment(7,767)(7,936)(52,418)

423

239

1,580

(348)
(3,207)(2,070)(533)(13,676)(3,523)

2,733

9,898

65,379Payments for acquisition of business (*2)(210)

(1,286)(8,494)

Proceeds from sale of businesses

360

-

-

Payments of long-term loans receivable

(23)

(26)

(178)

Collection of long-term loans receivable

2

-

-

-

(526)

(3,477)

(47)

-

-

0
(1,175)

145
(0)
5,394

959
(6)
35,628

1,591(1,910)(12,617)

1,410(18,770)(5,004)(6,037)25,000(30,654)(5,891)

165,125(202,470)(38,912)

-

(33)

(224)

(26,811)(13,489)(89,099)

3,011

4,110

27,153(24,103)

4,982

32,90881,61957,51657,51662,498379,894
412,802

Proceeds from withdrawal of time deposits

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of
investment securities

Purchase of shares of subsidiaries resulting
in change in scope of consolidation
Payments for sale of shares of subsidiaries
resulting in change inscope of consolidation
Subsidies received
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
Purchase of shares of subsidiaries not
resulting in change in scope of consolidation
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
Cash and cash equivalents at end of year (*1)

－ 10 －

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: 45(2) The changes in the scope of consolidation for the fiscal year ended March 31, 2024 are as
follows:(Addition) ・Two companies included in the scope of consolidation due to acquisition of shares
YANAKA Holdings Co., Ltd. (currently YANAKA ADTEC Precision Co., Ltd.),
YANAKA Co., Ltd.
(Exclusion) ・One company excluded from the scope of consolidation due to merger between
consolidated subsidiaries
YANAKA Co., Ltd.
・Two companies excluded from the scope of consolidation due to liquidation
Japan Digital Cinema Support Inc., Scrabble Ventures LLC
2. Application of equity method(1) Number of associates under equity method: One
Name of major company:
KA Imaging Inc.
(2) One company that was an associate that is not accounted for using the equity method until theprevious fiscal year (Hokkaido Saladpaprika Co., Ltd.) is excluded from the scope of the equity
method due to sale of the associate’s interests in the current fiscal year.
(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.
USHIO (GUANGZHOU) CO., LTD.
USHIO (SHAOGUAN) CO., LTD.
CHRISTIE DIGITAL SYSTEMS (SHANGHAI) Co., LTD.
USHIO SHENZHEN, INC.
CHRISTIE DIGITAL SYSTEMS (SHENZHEN) CO., LTD.
United Designers of Architectural Lighting, Inc.

December 31*1
December 31*1
December 31*1
December 31*1
December 31*1
December 31*1
December 31*1
December 31*1

*1 Provisional financial statements as of the consolidated fiscal year-end date are used forthese companies.

－ 11 －

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 and right-of-use 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 (five to seven years).

－ 12 －

(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.
(d) Right-of-use assets
Right-of-use assets are depreciated by the straight-line method over the lease period thatis deemed as the useful life, 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 bonuses for directors (and other officers)
The provision for bonuses for directors (and other officers) represents the amounts for
future payments of directors’ bonuses. The provision is recognized in the amount that is
expected to be paid.
(d) 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.
(e) 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.
(f) 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.
(g) 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 the current fiscal year are based on the benefit
formula method.

－ 13 －

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 from the fiscal year following the fiscal year inwhich the gains or losses are recognized 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 gains or losses are recognized.
(5) Standards for the recognition of significant revenues and expenses(a) Sales of products
The Group is primarily engaged in the manufacturing and sales of products in the Industrial
Processes business, Visual Imaging business, Life Sciences business and Photonics Solutions
business.
For the sales of various lamps, etc., in each business, the control of the products isdeemed to be transferred upon delivery to the customer, so revenue is recognized at the timeof 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.
For the sales of a variety of optical equipment in the Industrial Processes business, where
there is installation of 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 istransferred to the customer when the confirmation of agreed performance such as thecustomer’s acceptance of the product has been completed, so that is when revenue isrecognized. In addition, for some products that do not include installation work, the controlof the products is deemed to be transferred upon delivery to the customer, so revenue isrecognized at the time of delivery.
For the sales of a variety of imaging equipment in the Visual Imaging business, the controlof the products is deemed to be transferred upon delivery to the customer, so revenue isrecognized at the time of delivery.
(b) Provision of maintenance services
For a variety of optical equipment in the Industrial Processes business, maintenanceservices 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 thecontract period. For contracts where the performance obligations are primarily satisfied when
the provision of maintenance ends, revenue is recognized at such time. For some products of
optical equipment, variable consideration corresponding to the product’s capacity utilization
rate is included in the transaction price only to the extent that it is highly probable that amaterial reversal of the cumulative amount of revenues recognized will not occur when theuncertainty associated with the variable consideration is subsequently resolved.
For a variety of imaging equipment in the Visual Imaging business, maintenance services areprovided 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 performanceobligations to be satisfied over time, revenue is recognized according to the contract period.

－ 14 －

(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) U.S. Dollar Amounts
For the readers’ convenience, the accompanying consolidated financial statements with respect
to the fiscal year ended March 31, 2024 have been presented in U.S. dollars by translating all yen
amounts at ¥151.40 = U.S. $1.00, the exchange rate prevailing on March 31, 2024. 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.

－ 15 －

(Significant Accounting Estimates)
1. Impairment of non-current assets in the Photonics Solutions business(1) Amount recorded in the consolidated financial statements for the fiscal year ended March 31,
2024
In the fiscal year ended March 31, 2024, the Company recognized indications of impairment for
the asset groups comprising assets of the Company within the “Photonics Solutions business.”
As a result, the Company reviewed the necessity of recognizing an impairment loss.
As a result of the review, ¥2,487 million ($16,430 thousand) of impairment loss was recorded
because the recoverable amount was less than the book values.
Book value at end of the
Fiscal year ended
Fiscal year ended March 31, 2024
periodMarch 31, 2023
(Millions of yen)
Property, plant andequipment(Millions of yen)(Thousands of U.S. dollars)

4,934

2,286

15,1007324Intangible assets(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, 2024
When the recoverable amount of the relevant asset groups is less than the book value, the Group
writes down the book value to the recoverable amount and records the write-down amount as an
impairment loss. For the recoverable amount, we adopt the higher of the value in use or the net
selling price.
2) Key assumptions used to calculate the amount recorded in the consolidated financial statements
for the fiscal year ended March 31, 2024
The recoverable amount for land and buildings is the net selling price reasonably calculatedusing appraisal values based on real estate appraisal standards by external real estateappraisers, and the key assumptions in the real estate appraisal are the comparable price forland and the replacement cost for buildings.
3) Effect on the consolidated financial statements for the next fiscal year
If the recoverable amount should change for reasons such as a decline in real estate appraisal
values due to a downturn in the economy or the real estate market, additional impairment losses
of non-current assets may be recorded in our consolidated financial statements from the next
fiscal year onwards.

－ 16 －

2. Impairment of non-current assets in the Visual Imaging business(1) Amount recorded in the consolidated financial statements for the fiscal year ended March 31,
2024
In the fiscal year ended March 31, 2024, the Company recognized indications of impairment forsome asset groups comprising assets of consolidated subsidiaries within the “Visual Imaging
business.” As a result, the Company reviewed the necessity of recognizing an impairment loss.
As a result of the review, no impairment loss was recognized because the total undiscounted
future cash flows exceeded the book values said asset groups.
Book value at end of the
Fiscal year ended
Fiscal year ended March 31, 2024
periodMarch 31, 2023
(Millions of yen)

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

Property, plant andequipment

6,935

4,436

29,305Intangible assets

951

5,636

37,228(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, 2024
If the total undiscounted future cash flows from the 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, 2024
In the general imaging field, we expect sales to increase thanks to steady demand. However, we
expect sales of digital cinema projectors and projector lamps to decrease due to the impact of
declining investment appetite and reduced operations at movie theaters.
In addition, although the impact of soaring raw material prices is easing, we are stillaffected by geopolitical risks such as the situation in Ukraine and the prolonged slowdown in
Chinese economic growth. Although it is difficult to accurately forecast when these issues will
be resolved, the Group expects them to continue through the fiscal year ending March 31, 2025.
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.
3) Effect on the consolidated financial statements for the next fiscal year
If the impacts on the net sales growth rate and rise in raw material costs and other operating
expenses from factors including worsening geopolitical risks or a further prolonged slowdown in
the Chinese economy exceed expectations, and future events differ from our assumptions in 2)
above, impairment losses on non-current assets may be recorded in our consolidated financial
statements from the next fiscal year onwards.

－ 17 －

(Changes in Accounting Policies)(Application of Accounting Standard for Financial Instruments - Credit Losses (ASU No. 2016-13(Topic 326)))
Foreign subsidiaries that have adopted Generally Accepted Accounting Principles in the UnitedStates applied the Accounting Standards Update (ASU) 2016-13 Financial Instruments – Credit Losses(Topic 326) at the beginning of the fiscal year under review. the Company accordingly reviews its
classification and measurement approaches for financial instruments, and uses the expected credit
loss model to recognize impairment losses for financial assets.
In applying this accounting standard, the Company has adopted the method that the cumulative
effect of this change in accounting policy, permitted as a transitional treatment, is recognized asof the first day of the application.
The impact of this application on the consolidated financial statements is immaterial.

－ 18 －

(Accounting Standards Issued but Not Yet Applied)・Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, issued on October 28, 2022)
・Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25, issued on
October 28, 2022)
・Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, issued on October28, 2022)(1) Overview
In February 2018, ASBJ Statement No. 28 “Partial Amendments to Accounting Standard for Tax
Effect Accounting” and relevant ASBJ guidances were issued, and the practical guidelines on tax
effect accounting issued by the Japanese Institute of Certified Public Accountants (JICPA) weretransferred to the Accounting Standards Board of Japan (ASBJ). However, over the course of therelated deliberations, it was decided to reconsider the following two issues after ASBJ
Statement No. 28 and relevant ASBJ guidances were issued, and the issues were subsequently
deliberated and issued.
・Classification for recording tax expense (taxation relating to other comprehensive income)・Tax effects of sales of shares of subsidiaries, etc. (shares of subsidiaries and shares ofassociates) when the group taxation system is adopted(2) Date of application
These standards and guidance will be applied from the beginning of the fiscal year ending
March 31, 2025.
(3) Impact of application
The impact of applying the “Accounting Standard for Current Income Taxes” and otheraccounting standard and guidance on the consolidated financial statements is currently being
evaluated.
・Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules (Practical
Solution No. 46, issued on March 22, 2024, the Accounting Standards Board of Japan)(1) Overview
This practical solution clarifies the accounting for and disclosure of current taxes related
to the Global Minimum Tax rules.
(2) Date of application
This practical solution will be applied from the beginning of the fiscal year ending March 31,
2025.
(3) Impact of application
The impact of applying the “Accounting for and Disclosure of Current Taxes Related to the
Global Minimum Tax Rules” on the consolidated financial statements is currently underevaluation.

－ 19 －

(Changes in Presentation)(Consolidated Statement of Income)“Commission expenses,” which were included in “Other” under “Non-operating expenses” for theprevious fiscal year, have been presented separately from the current fiscal year, since thesignificance of the amount has increased. To reflect this change in presentation, the amounts in the
consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥109 million presented in “Other” under “Non-operating expenses” in the
consolidated statement of income for the previous fiscal year has been reclassified into ¥22 millionof “Commission expenses” and ¥87 million of “Other.”－ 20 －

(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 ¥374 million and
230,100 shares as of March 31, 2023 and ¥843 million ($5,569 thousand) and 475,680 shares asof March 31, 2024.
(Disposal of treasury shares to employee stockholding association using restricted stocks)
Based on a restricted stock grant system (hereinafter, the “System (I)”) which grants restricted
stocks to employees of the Company and its subsidiaries in Japan (hereinafter, collectively, the“Domestic Group”) through the employee stockholding association, the Company disposed of its
treasury shares as restricted stock (hereinafter, the “Treasury Stock Disposal (I)”), with theStockholding Association of the Company (hereinafter, the “Association”), which is an employee
stockholding association of the Company, as the allottee, as described below.
(1) Overview of the disposal
1)Date of payment

August 31, 2023

2)Class and number of shares to bedisposed of

338,760 shares of common stock of the Company

3)Disposal price

1,905 yen per share ($12 per share)4)Total value of disposal

645,337,800 yen ($4,262 thousand)5)Method of disposal

Third-party allotment

6)Other

The Company submitted a Securities Registration
Statement for the Treasury Stock Disposal (I) as
required by the Financial Instruments and Exchange Act.

(2) Purpose and the reasons for the disposal
On May 11, 2023, the Company announced a new medium-term management plan as its “Vision2030” with the objective of becoming a “light solutions company”. The Company resolved to
introduce the System (I) in order that management and employees will work together to achieve
the new medium-term management plan, in which the Company will prepare for growth for three
years to evolve into a true “light solutions company” and will aim to improve medium-to-longterm corporate value. The Company also expects that the System (I) will further encourage theemployees of the Group to join the Association and help them build their assets. In addition,
the restricted stock will be granted only to a person (hereinafter, the “Subject Employee”)
who has consented to the acquisition of the interest in stock allotted to the Association, is－ 21 －

not a non-resident of Japan, is a member of the Association and is an employee of the Group.
Further, the Company resolved to implement the Treasury Stock Disposal (I) based on a meetingof the Board of Directors held on May 11, 2023, and completed the payment on August 31, 2023.
(Disposal of treasury shares by granting stocks to employee stockholding association)
Based on a stock grant system (hereinafter, the “System (II)”) which grants stocks to employeesof the Domestic Group through the employee stockholding association, the Company disposed of its
treasury shares (hereinafter, the “Treasury Stock Disposal (II)”) with the Association as theallottee, as described below.
(1) Overview of the disposal
1)Date of payment

August 31, 2023

2)Class and number of shares to bedisposed of

182,300 shares of common stock of the Company

3)Disposal price

1,905 yen per share ($12 per share)4)Total value of disposal

347,281,500 yen ($2,293 thousand)5)Method of disposal

Third-party allotment

6)Other

The Company submitted a Securities Registration
Statement for the Treasury Stock Disposal (II) as
required by the Financial Instruments and Exchange Act.

(2) Purpose and the reasons for the disposal
Since FY2020, the Company has been working on its three-year medium-term management plan toachieve sustainable growth with the objective of becoming a “light solutions company”asdescribed in its “Vision 2030.” Having achieved all of the specified targets set forth in
the medium-term management plan and largely completed the foundation for the transformation of
the profit structure, the Company resolved to grant the Company’s common stock (hereinafter,
the “Company’s shares”) to the members of the Association as a special incentive to returnthe results of these efforts to the employees of the Group. The Company also expects that the
Scheme will increase the interest of employees of the Group in corporate value, renew theirawareness of the need to work with management to contribute to improving medium-to-long term
corporate value, further encourage them to join the Association, and help them build theirassets. Further, the Company’s shares will be granted only to the Subject Employee. The
Company resolved to implement the Treasury Stock Disposal (II) based on a meeting of the Boardof Directors held on May 11, 2023, and completed the payment on August 31, 2023.

－ 22 －

(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, 2023
(Millions of yen)

As of March 31, 2024
(Millions of yen)(Thousands of U.S. dollars)

Notes receivable-trade

3,681

3,249

21,459Accounts receivable trade33,722

34,943230,805*2 Investments in associates are as follows:
As of March 31, 2023
Investment securities (stocks)(Millions of yen)117

As of March 31, 2024
(Millions of yen)
10

(Thousands of U.S. dollars)
66(Consolidated Statement of Income)*1 Revenue from contracts with customers
Revenue from contracts with customers and revenue from other sources 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 of revenue 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, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)

(Millions of yen)
2,299

(Thousands of U.S. dollars)
1,164

7,694

*3 The main components of selling, general and administrative expenses are as follows:
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)

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

13,117

14,573

96,261

755

845

5,582

-

77

508

Retirement benefit expenses

475

345

2,278

Provision for directors' retirement benefits

57

26

174

Provision for directors' stock payment

52

114

755

Research and development expenses

11,46012,93985,465649

328

Salaries and wages
Provision for bonuses
Provision for bonuses for directors (and otherofficers)

Provision of allowance for doubtful accounts－ 23 －

*4 Research and development expenses included in general and administrative expenses are as follows:
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)

(Millions of yen)
11,460(Thousands of U.S. dollars)
12,93985,465*5 The breakdown of gain on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024
(Millions of yen)(Thousands of
U.S. dollars)(Millions of yen)

Buildings and structures

182

-

-

Machinery, equipment and vehicles

30

0

3

Other

2

0

5

216

1

8

Total

*6 The breakdown of loss on retirement of non-current assets is as follows:
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024
(Millions of yen)(Thousands of
U.S. dollars)(Millions of yen)

Buildings and structures

16

1

10

Machinery, equipment and vehicles

25

53

350

Construction in progress

6

4

28

Other

32

130

865

81

189

1,253

Total

*7 The breakdown of loss on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2023
(Millions of yen)

Fiscal year ended
March 31, 2024
(Thousands of(Millions of yen)
U.S. dollars)

Machinery, equipment and vehicles

0

-

-

Land

7

-

-

Other

1

0

2

9

0

2

Total

－ 24 －

*8 Impairment loss
Fiscal year ended March 31, 2023
Location

Classification by use

Type of assets(Millions of yen)

Idle assets

Machinery, equipment andvehicles, Other (Property,
plant and equipment) andConstruction in progress

34

Idle assets

Buildings and structures,
Machinery, equipment andvehicles, Other (Property,
plant and equipment) and
Other (Intangible assets)

508

Business assets

Other (Property, plant andequipment) and Other(Intangible assets)

10

Suzhou, China

Business assets

Machinery, equipment andvehicles, Other (Property,
plant and equipment) and
Other (Intangible assets)

28

Blonie, Poland

Idle assets

Machinery, equipment andvehicles7

Shenzhen, China

Takasago, Hyogo
Himeji, Hyogo

Chiyoda-ku, Tokyo
Takasago, Hyogo

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 ¥34 million recognized for Shenzhen, China, includes ¥22 million for
construction in progress, ¥8 million for other (property, plant and equipment) and ¥3 million formachinery, equipment and vehicles.
・Impairment loss of ¥508 million recognized for Takasago, Hyogo, etc. includes ¥445 million formachinery, equipment and vehicles, ¥33 million for buildings and structures, ¥23 million for other(property, plant and equipment) and ¥6 million for other (intangible assets).
・Impairment loss of ¥10 million recognized for Chiyoda-ku, Tokyo, etc. includes ¥8 million forother (property, plant and equipment) and ¥1 million for other (intangible assets).
・Impairment loss of ¥28 million recognized for Suzhou, China, includes ¥21 million for machinery,equipment and vehicles, ¥5 million for other (property, plant and equipment) and ¥0 million forother (intangible assets).
・Impairment loss of ¥7 million recognized for Blonie, Poland, includes ¥7 million for machinery,equipment and vehicles.

－ 25 －

Fiscal year ended March 31, 2024
Location

Classification by use

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

Business assets

Other (Property, plant andequipment), Machinery,equipment and vehicles,
Other (Intangible assets),
Buildings and structures,and Construction inprogress

4,487

29,638Business assets

Machinery, equipment andvehicles, Buildings andstructures, Other(Property, plant andequipment), Land and Other(Intangible assets)

2,487

16,430Takasago, Hyogo
Chiyoda-ku, Tokyo
Himeji, Hyogo

Business assets

Other (Property, plant andequipment), Machinery,equipment and vehicles, andBuildings and structures

126

835

Taipei, Taiwan

Idle assets

Other (Property, plant andequipment)

1066

California, U.S.A.

Business assets

Other (Intangible assets)

29

193

Kitchener, Canada

Assets planned tobe sold

Machinery, equipment andvehicles and Other(Property, plant andequipment)

23

152

Suzhou, China

Assets planned tobe sold

Machinery, equipment andvehicles7

50

Gotemba, Shizuoka,
Takasago, Hyogo
Nagaoka, Niigata,
Oregon Plant, USA

Gotemba, Shizuoka,
Kyoto, Kyoto
Saku, Nagano
Takasago, Hyogo
Himeji, Hyogo

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 ¥4,487 million ($29,638 thousand) recognized for Gotemba, Shizuoka, etc.
includes ¥2,433 million ($16,073 thousand) for other (property, plant and equipment), ¥1,684
million ($11,124 thousand) for machinery, equipment and vehicles, ¥178 million ($1,179 thousand)for other (intangible assets), ¥109 million ($725 thousand) for buildings and structures, and ¥81
million ($535 thousand) for construction in progress.
･Impairment loss of ¥2,487 million ($16,430 thousand) recognized for Gotemba, Shizuoka, etc.
includes ¥1,710 million ($11,296 thousand) for machinery, equipment and vehicles, ¥435 million($2,875 thousand) for buildings and structures, ¥190 million ($1,260 thousand) for construction in－ 26 －

progress, ¥130 million ($864 thousand) for other (property, plant and equipment), ¥19 million($132 thousand) for land, and ¥0 million ($0 thousand) for other (intangible assets).
･Impairment loss of ¥126 million ($835 thousand) recognized for Takasago, Hyogo, includes ¥69
million ($455 thousand) for other (property, plant and equipment), ¥48 million ($320 thousand) for
machinery, equipment and vehicles, and ¥8 million ($58 thousand) for buildings and structures.
･Impairment loss of ¥10 million ($66 thousand) recognized for Taipei, Taiwan, includes ¥10 million($66 thousand) for other (property, plant and equipment).
･Impairment loss of ¥29 million ($193 thousand) recognized for California, U.S.A., includes ¥29
million ($193 thousand) for other (intangible assets).
･Impairment loss of ¥23 million ($152 thousand) recognized for Kitchener, Canada, includes ¥22
million ($149 thousand) for machinery, equipment and vehicles, and ¥0 million ($3 thousand) for
other (property, plant and equipment).
･Impairment loss of ¥7 million ($50 thousand) recognized for Shenzhen,China, includes ¥7 million($50 thousand) for machinery, equipment and vehicles.

－ 27 －

*9 Gain on sale of businesses
Fiscal year ended March 31, 2023
The gain on sale of businesses is due to the transfer of the Group’s insurance agency business.
Fiscal year ended March 31, 2024
Not applicable.
*10 Business structure improvement expenses
Fiscal year ended March 31, 2023
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
component in the breakdown of these expenses was ¥348 million of expenses for personnel downsizing
due to the restructuring of USHIO GERMANY GmbH.
Fiscal year ended March 31, 2024
Not applicable.

－ 28 －

(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, 2023

Fiscal year ended
March 31, 2024

(Millions of yen)

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

Valuation difference on available-for-salesecurities:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effect
Valuation difference on available-for-salesecurities(1,247)
(873)

7,247
(6,961)47,868(45,981)(2,120)
591

285
(9)

1,887
(61)

(1,529)

276

1,825

6,464
93

14,168-93,584-

6,558-

14,168-93,584-

6,558

14,16893,584

1,129
481

4,012
310

26,501
2,051

1,611

4,322

28,552Foreign currency translation adjustment:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effectRemeasurements of defined benefit plans
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(492)(1,361)(8,995)

1,118

2,960

19,557

41

57

376

41

57

376

6,188

17,463

115,344－ 29 －

(Consolidated Statement of Changes in Net Assets)
Fiscal year ended March 31, 2023
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2022

Increase

Decrease

Number ofshares as ofMarch 31, 2023

Shares issued:
Common shares (Note 1.)

127,000,000-

3,500,000

123,500,000

127,000,000-

3,500,000

123,500,000

Common shares (Note 2.3.4.)

6,409,833

2,917,819

3,503,900

5,823,752

Total

6,409,833

2,917,819

3,503,900

5,823,752

Total
Treasury shares(Notes) 1. The decrease of 3,500,000 shares in shares issued is due to retirement of treasury shares.
2. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (234,000 shares and 230,100 shares at the beginning and end of the current fiscal
year, respectively).
3. The increase of 2,917,819 shares of treasury shares is made up of an increase of 2,915,400 sharesthrough market purchase and an increase of 2,419 shares due to purchase of shares of less thanstandard unit.
4. The decrease of 3,503,900 shares of treasury shares is made up of a decrease of 3,500,000 shares
resulting from cancellation of treasury shares and a decrease of 3,900 shares due to issuancefrom the trust to eligible persons according to the stock remuneration plan for directors.
2. Dividends(1) Dividends paid

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Dividends
per share(Yen)

Cut-off
date

Effective
date

Annual general meetingof the shareholders on
June 29, 2022

Commonshares

6,041

50

March 31,2022

June 30,2022(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,
2022 include ¥11 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.

－ 30 －

(2) Dividends with the cut-off date in the fiscal year ended March 31, 2023 and the effective datein the fiscal year ended March 31, 2024

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Sourceofdividends

Dividends
per share(Yen)

Cut-off
date

Effective
date

Annual general
meeting of theshareholders on
June 29, 2023

Commonshares5,895

Retainedearnings

50

March 31,2023

June 30,2023(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,2023 include ¥11 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.
Fiscal year ended March 31, 2024
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2023

Increase

Decrease

Number ofshares as ofMarch 31, 2024

Shares issued:
Common shares (Note 1.)

123,500,000-

16,000,000

107,500,000

123,500,000-

16,000,000

107,500,000

Common shares (Note 2.3.4.)

5,823,752

15,777,089

16,528,340

5,072,501

Total

5,823,752

15,777,089

16,528,340

5,072,501

Total
Treasury shares(Notes) 1. The decrease of 16,000,000 shares in shares issued is due to retirement of treasury shares.
2. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (230,100 shares and 475,680 shares at the beginning and end of the current fiscal
year, respectively).
3. The increase of 15,777,089 shares of treasury shares is made up of an increase of 15,514,800
shares through market purchase, an increase of 252,860 shares through the trust for the stock
remuneration plan for directors, an increase of 6,501 shares due to forfeiture of restricted
stock of the Employee Stockholding Association and an increase of 2,928 shares due to purchase ofshares of less than standard unit.
4. The decrease of 16,528,340 shares of treasury shares is made up of a decrease of 16,000,000
shares resulting from cancellation of treasury shares, a decrease of 182,300 shares due togranting shares to the Employee Stockholding Association, a decrease of 338,760 shares due togranting restricted stock to the Employee Stockholding Association and a decrease of 7,280 shares
due to issuance from the trust to eligible persons according to the stock remuneration plan for
directors.

－ 31 －

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

Annual general
meeting of theshareholders
on June 29,2023 CommonsharesCommonshares

5,895

38,93850

0.33

March 31,2023

June 30,2023(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,2023 include ¥11 million ($75 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.
(2) Dividends with the cut-off date in the fiscal year ended March 31, 2024 and the effective datein the fiscal year ending March 31, 2025

Resolution

Type ofsharesAnnualgeneralmeeting of
theshareholders
on June 27,2024

Commonshares

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

0.33

March 31,2024

June 28,
2024

5,145

33,983(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 27,2024 include ¥23 million ($157 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

－ 32 －

(Consolidated Statement of Cash Flows)*1 Reconciliation between cash and cash equivalents at end of period and the amount on the consolidatedbalance sheet
Fiscal year ended
March 31, 2023
(Millions of yen)
64,219Cash and deposits

Fiscal year ended
March 31, 2024
(Millions of yen)
65,651(Thousands of U.S. dollars)
433,630

Time deposits with a maturity of morethan three months(6,703)(3,153)(20,827)

Cash and cash equivalents

57,51662,498412,802*2 Major Breakdown of Assets and Liabilities Increased Due to Business Acquisition
Fiscal year ended March 31, 2023
Disclosure is omitted due to immateriality.
Fiscal year ended March 31, 2024
The major breakdown of assets and liabilities increased due to business acquisition is presented
in “Notes to Consolidated Financial Statements (Business Combinations). "(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, 2023

As of March 31, 2024

Due within one year

(Millions of yen)
633

(Millions of yen)727

(Thousands of U.S. dollars)
4,805

Due after one year

1,389

1,063

7,025

Total

2,023

1,791

11,831(Note) Foreign subsidiaries that have adopted Generally Accepted Accounting Principles in the United States
have applied Leases (ASU No. 2016-02 (Topic 842)) , and the chart above does not include future
minimum lease payments related to these foreign subsidiaries.

－ 33 －

(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. These investments are exposed
to market risk. A part of securities and investment securities 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.
Loans payable, which are made to obtain working capital, are due within three years after theend of the current fiscal year.
Lease obligations include leases to which Leases (ASU No. 2016-02 (Topic 842)) has been appliedat some overseas consolidated subsidiaries.
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.

－ 34 －

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
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.

－ 35 －

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, 2023
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

36,686

36,686-59,33659,336-96,022

96,022-(1) Notes and accounts payable-trade26,205

26,205-(2) Short-term loans payable

3,921

3,921

-

(3) Long-term loans payable

1,410

1,407

(2)

(4) Lease obligations (*5)

2,985

2,913

(71)

34,522

34,448

(73)

22

22

-

Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

38,071

38,071-

56,40056,400-94,471

94,471-(1) Notes and accounts payable-trade21,64821,648-(2) Short-term loans payable

2,455

2,455

-

(3) Long-term loans payable

26,41026,376(33)(4) Lease obligations (*5)

3,987

3,907

(79)

54,501

54,388

(113)

(19)

(19)

-

(1)

Notes and accounts receivable - trade, and contract assets

38,491

Allowance for doubtful accounts (*3)

(1,805)(2) Securities and investment securities (*2)
Available-for-sale securities
Assets, total

Liabilities, total
Derivative transactions (*4)
for which hedge accounting is not applied
As of March 31, 2024

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

39,753

Allowance for doubtful accounts (*3)

(1,681)(2) Securities and investment securities (*2)
Available-for-sale securities
Assets, total

Liabilities, total
Derivative transactions (*4)
for which hedge accounting is not applied－ 36 －

As of March 31, 2024
Consolidated balance
sheet amount(Thousands of U.S. dollars)
(1)

(2)

Notes and accounts receivable - trade,and contract assets

262,570

Allowance for doubtful accounts (*3)

(11,107)

Fair value(Thousands of U.S. dollars)

Difference(Thousands of U.S. dollars)

251,462

251,462-

372,524

372,524-

623,986

623,986-

142,991

142,991-

Securities and investment securities(*2)
Available-for-sale securities

Assets, total(1) Notes and accounts payable-trade(2) Short-term loans payable

16,216

16,216-(3) Long-term loans payable

174,438

174,215(222)(4) Lease obligations (*5)

26,33525,810(525)

359,982359,234

(748)

(129)

(129)

-

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, 2023

As of March 31, 2024

(Millions of yen)
1,385(Millions of yen)
1,752

353

273

(Thousands of U.S. dollars)
11,573
1,809(*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.
(*5): Includes current portion of lease obligations.

－ 37 －

(Notes) 1. Redemption schedule for monetary receivables and securities with maturity dates after the
consolidated balance sheet date
As of March 31, 2023
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
Notes and accounts
receivable-trade, andcontract assets
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds

64,219---38,431

59

-

-

-

801

-

-

(2) Corporate bonds

1,200

10,373

2,270

2,136

-

801

-

-

103,851

12,035

2,270

2,136

(3) Other
Total

As of March 31, 2024
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
Notes and accounts
receivable-trade,and
contract assets
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds

65,651---

39,679

63

9

-

-

908

-

-

(2) Corporate bonds

4,128

7,872

757

2,422

-

908

-

-

109,460

9,753

766

2,422

(3) OtherTotal－ 38 －

As of March 31, 2024
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

433,630---

262,087

419

63

-

-

6,000

-

-

(2) Corporate bonds

27,27052,0005,000

16,000

-

6,000

-

-

722,987

64,4195,063

16,000(3) OtherTotal

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, 2023

Short-term loans payable

3,921

Due after one
year and up to
two years(Millions ofyen)-Long-term loans payable

-

-

1,410

-

-

-

Lease obligations

858

695

530

359

238

482

Total

4,779

695

1,940

359

238

482

Due within one
year(Millions ofyen)

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

Due after two
years and up to
three years(Millions ofyen)

Due after three
years and up to
four years(Millions ofyen)

Due after four
years and up to
five years(Millions ofyen)

Due after fiveyears(Millions ofyen)

Short-term loans payable

2,455

-

-

-

-

-

Long-term loans payable

-

1,410

25,000---

Lease obligations

1,054

1,001

808

661

382

384

Total

3,509

2,411

25,808

661

382

384

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

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

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

Due within one
year(Millions ofyen)

Due after two
years and up to
three years(Millions ofyen)-

Due after three
years and up to
four years(Millions ofyen)-

Due after four
years and up to
five years(Millions ofyen)-

Due after fiveyears(Millions of
yen)-

As of March 31, 2024

As of March 31, 2024

Due within one year
(Thousands of U.S.
dollars)
Short-term loans payable

16,216

-

-

-

-

-

Long-term loans payable

-

9,313

165,125---

Lease obligations

6,962

6,613

5,343

4,370

2,523

2,537

Total

23,17915,926

170,468

4,370

2,523

2,537

－ 39 －

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, 2023
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Securities and investment securities
Available-for-sale securities
Stocks39,811--

39,811

766

-

-

766

Bonds-Corporate bonds-

16,667-

16,667

Bonds-Other

-

690

-

690

1,400

-

-

1,400

Bonds-National and local government bonds

Other
Derivative transactions
Currency-related transactions
Assets, total

-

23

-

23

41,97817,381-

59,359

-

(0)

-

(0)

-

(0)

-

(0)

Derivative transactions
Currency-related transactions
Liabilities, total

As of March 31, 2024
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Securities and investment securities
Available-for-sale securities
Stocks38,616--

38,616

862

-

-

862

Bonds-Corporate bonds-

16,125-

16,125

Bonds-Other

-

795

-

795

Other

-

-

-

-

Bonds-National and local government bonds

Derivative transactions
Currency-related transactions
Assets, total

-

1

-

1

39,47816,922-56,401

-

(20)

-

(20)

-

(20)

-

(20)

Derivative transactions
Currency-related transactions
Liabilities, total－ 40 －

As of March 31, 2024
Classification

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

Level 2

Level 3

Total

Securities and investment securities
Available-for-sale securities
Stocks255,060--

255,060

5,699

-

-

5,699

Bonds-Corporate bonds-

106,510-

106,510

Bonds-Other

-

5,254

-

5,254

Other

-

-

-

-

Bonds-National and local government bonds

Derivative transactions
Currency-related transactions
Assets, total

-

7

-

7

260,759

111,772-

372,531

-

(136)

-

(136)

-

(136)

-

(136)

Derivative transactions
Currency-related transactions
Liabilities, total(2) Financial instruments other than financial instruments recorded on the consolidated balance
sheet at fair value
As of March 31, 2023
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Notes and accounts receivable - trade, and contract assets-

36,686-

36,686

Assets, total-

36,686-

36,686

Notes and accounts payable-trade-26,205-

26,205

Short-term loans payable

-

3,921

-

3,921

Long-term loans payable

-

1,407

-

1,407

Lease obligations

-

2,913

-

2,913

-

34,448-34,448

Liabilities, total

As of March 31, 2024
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Notes and accounts receivable - trade, and contract assets-

38,071-

38,071

Assets, total-

38,071-

38,071

Notes and accounts payable-trade-21,648-21,648

Short-term loans payable

-

2,455

-

2,455

Long-term loans payable-

26,376-

26,376

Lease obligations

-

3,907

-

3,907

-

54,388-54,388

Liabilities, total－ 41 －

As of March 31, 2024
Classification

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

Level 2

Level 3

Total

Notes and accounts receivable - trade, and contract assets-

251,462-

251,462

Assets, total-

251,462-

251,462

Notes and accounts payable-trade-142,991-

142,991

Short-term loans payable-

16,216-

16,216Long-term loans payable-

174,215-

174,215

Lease obligations-

25,810-25,810-359,234-

359,234

Liabilities, total(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, national and local government bonds, corporate bonds and other bonds arevalued using quoted prices. Since listed shares and national and local government bonds aretransacted in active markets, their fair value is categorized as Level 1 fair value. On theother 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) Long-term loans payable and lease obligations
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.

－ 42 －

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

Securities and investment securities
Available-for-sale securities
Bonds-Other
Balance at beginning of period

Total

1,219

1,219

Recorded in profit (loss)--

Recorded in other comprehensive income (*1)

44Purchase, sales, issuance and settlement

Profit (loss) or other comprehensive income(1,224)(1,224)

Transfer to Level 3--

Transfer from Level 3--

Balance at end of period--(*1) Included in “Valuation difference on available-for-sale securities” in “Other
comprehensive income” in the consolidated statement of comprehensive income.
Fiscal year ended March 31, 2024
Not applicable(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.

－ 43 －

(Securities and Investment Securities)
1. Trading securities
As of March 31, 2023

As of March 31, 2024

(Millions of yen)

(Millions of yen)

-

-

-

Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

39,4998,681

30,818

-

-

-

1,161

1,141

20

-

-

-

Valuation difference included in
profit or loss

(Thousands of U.S. dollars)

2. Available-for-sale securities
As of March 31, 2023

Securities whosecarrying value
exceeds theiracquisition cost(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds3) Other(3) Other
Subtotal(1) Shares

1,400

934

466

42,062

10,75731,304

311

416

(105)

766

791

(25)

15,505

17,248(1,742)

690

801

(110)

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

Securities whosecarrying value
does not exceed
theiracquisition cost3) Other(3) Other
Subtotal
Total

-

-

-

17,274

19,258(1,983)59,33630,01529,320(Note) Shares, etc. without market prices (carrying value on the consolidated balance sheet: ¥1,385
million) and investments in business partnerships with limited liability (carrying value on the
consolidated balance sheet: ¥353 million) are not included in the above table of “Available-forsale securities.”－ 44 －

As of March 31, 2024

Securities whosecarrying value
exceeds theiracquisition
costs

Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

38,167

7,502

30,665

-

-

-

482

461

21

-

-

-

(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds
3)

Other

(3) Other
Subtotal(1) Shares

Securities whosecarrying value
does not exceed
theiracquisition
costs(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds
3)

Other

-

-

-

38,6507,964

30,686

448

529

(80)

862

900

(37)

15,642

17,051(1,408)

795

908

(112)

-

-

-

17,74919,389(1,639)56,40027,35329,046(3) Other
Subtotal
Total
As of March 31, 2024
Type(1) Shares

Securities whosecarrying value
exceeds theiracquisition
costs(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds
3)

Carrying value(Thousands of
U.S. dollars)

49,555202,544

-

-

-

3,188

3,047

140

-

-

-

-

-

-

255,287

52,602

202,684

2,960

3,494

(533)

5,699

5,945

(245)

103,322

112,628(9,306)

5,254

6,000

(745)

(3) Other(1) Shares

Securities whosecarrying value
does not exceed
theiracquisition
costs(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds
3)

Other

(3) Other
Subtotal
Total

Difference(Thousands of
U.S. dollars)

252,099

Other

Subtotal

Acquisition cost(Thousands of
U.S. dollars)

-

-

-

117,236

128,068(10,831)372,524

180,670

191,853－ 45 －

(Note) Shares, etc. without market prices (carrying value on the consolidated balance sheet: ¥1,752
million ($11,573 thousand)) and investments in business partnerships with limited liability(carrying value on the consolidated balance sheet: ¥273 million ($1,809 thousand)) are not includedin the above table of “Available-for-sale securities.”
3. Available-for-sale securities soldFiscal year ended March 31, 2023
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)

1,541

963

-

-

-

-

336

-

35

(3) Other
Total

-

-

-

1,877

963

35

Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

8,254

7,006

-

Fiscal year ended March 31, 2024
Type

Sales proceeds(Millions of yen)

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

-

-

-

1,270

-

18

(3) Other

1,702

-

-

Total

11,227

7,006

18

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)

54,522

46,276-

Fiscal year ended March 31, 2024
Type(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds

-

-

-

8,394

-

120

(3) Other

11,241

-

-

Total

74,15846,276120

4. Impairment loss recognized on securities
Fiscal year ended March 31, 2023
For the fiscal year ended March 31, 2023, impairment loss of ¥212 million was recognized for
securities (¥196 million for available-for-sale securities – shares and ¥16 million for availablefor-sale securities – bonds).
Fiscal year ended March 31, 2024
For the fiscal year ended March 31, 2024, impairment loss of ¥34 million ($228 thousand) was
recognized for securities (¥14 million ($94 thousand) for available-for-sale securities – sharesand ¥20 million ($134 thousand) for available-for-sale securities – bonds).
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－ 46 －

considering the recoverability of the fair value of the security.

－ 47 －

(Derivative Transactions)
1. Derivative transactions for which hedge accounting is not applied
Currency-related transactions:
As of March 31, 2023
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)

258

-

12

12

USD

52

-

(0)

(0)

JPY

675

-

11

11

986

-

22

22

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

197

-

1

1

JPY

921

-

(20)

(20)

1,119

-

(19)

(19)

Notional
amounts(Thousands of
U.S. dollars)

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

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

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

－

-

－

－

USD

1,306

-

7

7

JPY

6,085

-

(136)

(136)

7,392

-

(129)

(129)

Type of transaction
Forward foreignexchange contracts:
Sell:

Off-market
transactions

USD
Buy:

Total

As of March 31, 2024
Classification

Type of transaction
Forward foreignexchange contracts:
Sell:

Off-market
transactions

USD
Buy:

Total
As of March 31, 2024
Classification

Type of transaction
Forward foreignexchange contracts:
Sell:

Off-market
transactions

USD
Buy:

Total

2. Derivative transactions for which hedge accounting is applied
Interest-rate-related transactions:
As of March 31, 2023
Not applicable.
As of March 31, 2024
Not applicable.

－ 48 －

(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.
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, 2023
Retirement benefit obligation at beginning of period
Current service costs
Interest costs
Actuarial gains and losses arising during period
Retirement benefits paid

(Millions of yen)
24,520(Millions of yen)
23,360(Thousands of U.S. dollars)
154,297

1,231

1,135

7,502

191

280

1,853

(1,675)(981)(6,485)(940)(1,165)(7,699)

-

37

248

Amount transferred due to change from
simplified accounting method to principle
method
Other

-

62

415

32

61

405

23,36022,791

150,537

Effect of exchange rate changes
Retirement benefit obligation at end of period

Fiscal year ended March 31, 2024

－ 49 －

(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, 2023
Plan assets at beginning of period(Millions of yen)
26,283Fiscal year ended March 31, 2024
(Millions of yen)
26,390(Thousands of U.S. dollars)
174,307

Expected return on plan assets

366

373

2,466

Actuarial gains and losses arising during period

(546)

3,028

20,000Contributions from employer

937

952

6,290

Retirement benefits paid

(689)

(973)

(6,431)

Amount transferred due to change from
simplified accounting method to principle
method

-

123

814

Other

-

21

139

Effect of exchange rate changes

37

65

433

26,39029,980198,019

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, 2023
Net defined benefit liability at beginning of period(Millions of yen)
225

Fiscal year ended March 31, 2024
(Millions of yen)
221

(Thousands of U.S. dollars)
1,463

Retirement benefit expenses

19

(38)

(253)

Retirement benefits paid

(22)

(8)

(58)

Amounts transferred due to change from
simplified accounting method to principle
method

-

(37)

(248)

Other

(3)

15

102

Effect of exchange rate changes

2

7

52

221

160

1,058

Net defined benefit liability at end of period－ 50 －

(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, 2023
Retirement benefit obligation for funded plans
Plan assets
Retirement benefit obligation for unfunded plans

As of March 31, 2024

(Millions of yen)
23,360(Millions of yen)
22,791(Thousands of U.S. dollars)
150,537(26,390)(29,980)(198,019)(3,029)(7,188)(47,481)

221

160

1,058

Net balance of liability and asset
recognized on the consolidated balance sheet(2,807)(7,028)(46,423)

Net defined benefit liability

3,839

3,654

24,134

Net defined benefit asset(6,647)(10,682)(70,557)

Net balance of liability and asset
recognized on the consolidated balance sheet(2,807)(7,028)(46,423)(5) Retirement benefit expenses and their breakdown
Fiscal year ended
March 31, 2023
Current service costs(Millions of yen)
1,231

Fiscal year ended March 31, 2024
(Millions of yen)
1,135

(Thousands of U.S. dollars)
7,502Interest costs

191

280

1,853

Expected return on plan assets

(366)

(373)

(2,466)

Amortization of actuarial gains and losses

529

358

2,366

Amortization of past service costs

(47)

(47)

(315)

-

(54)

(359)

Other

(56)

(50)

(333)

Retirement benefit expenses applying
simplified method

19

(38)

(253)

1,501

1,210

7,996

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, 2023, ¥348 million in extra
retirement payments and other was recorded as part of business structure improvement expenses under
extraordinary losses.

－ 51 －

(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, 2023
Past service costs(Millions of yen)
47

Actuarial gains and losses
Total

Fiscal year ended March 31, 2024
(Millions of yen)
47

(Thousands of U.S. dollars)
315(1,658)(4,370)(28,868)(1,611)(4,322)(28,552)(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, 2023
Unrecognized past service costs(Millions of yen)
(9)

Unrecognized actuarial gains and losses
Total

As of March 31, 2024
(Millions of yen)
38

(Thousands of U.S. dollars)
255

(796)

(5,112)(33,767)(805)(5,073)(33,512)(8) Plan assets
1) Breakdown of plan assets
Percentage of each main category to total plan assets is as follows:
As of March 31, 2023

As of March 31, 2024

Bonds

28%

27%

Securities

35%

42%

Cash and deposits

6%

6%

Alternative investments (Note 1)

27%

21%

Other

4%

4%

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 6% and 8% that are set up for a
corporate pension plan as of March 31, 2023 and 2024, 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, 2023

Fiscal year ended March 31, 2024

1.0～1.2%

1.3～1.6%

Long-term expected rate of return

1.5%

1.5%

Expected rate of salary increase

2.6%

2.7%

Discount rate

3. Defined contribution plan
The required contribution to the defined contribution plan amounts to ¥462 million and ¥521 million($3,443 thousand) for the fiscal years ended March 31, 2023 and 2024, respectively.

－ 52 －(Tax Effect Accounting)
1. Breakdown of major reasons for deferred tax assets and deferred tax liabilities
As of March 31, 2023
(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, 2024
(Millions of yen)(Thousands of U.S. dollars)

4,217
292
906
1,129
1,275

4,784
455
770
816
1,346

31,604
3,010
5,088
5,394
8,895

64

60

398

2,417
1,662
327
449

2,681
2,954
2,429
890

17,70819,513
16,047
5,884

1,031

925

6,112

5,529
19,305

6,176
24,29240,794160,452(4,177)(4,752)(31,392)(5,701)(7,596)(50,178)(9,879)9,426(12,349)
11,942(81,570)
78,882(1,703)(3,024)(19,976)(9,469)(9,431)(62,297)(1,891)(1,876)(12,394)(24)(13,089)(3,663)(105)(14,438)(2,495)(698)(95,366)(16,483)(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, 2023
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

15

59

65

46

74

3,957

4,217

14

57

65

46

74

3,919

4,177

0

1

-

-

-

38

40

－ 53 －

As of March 31, 2024
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
carried forward(*1)
Valuation
allowance
Deferred tax
assets

2

40

54

33

87

4,567

4,784

2

40

53

33

85

4,537

4,752

-

-

0

-

1

30

32

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, 2024
Due within
one year(Thousandsof U.S.
dollars)

Due after
five years

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

Tax losses
carried
18
265
357
221
575
30,166
forward (*1)
Valuation
18
265
351
221
567
29,967
allowance
Deferred tax
5
7
198
assets(*1) The amounts of tax losses carried forward are multiplied by the statutory tax rate.

31,604
31,392211

2. Reconciliation of significant difference between statutory tax rate and effective tax rate after
application of tax effect accounting
As of March 31, 2023 As of March 31, 2024
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
Other
Effective tax rate after application of tax
effect accounting

30.6%

30.6%

6.4

6.6

(0.6)

(1.3)

2.1

1.6

0.2
(6.7)

0.3
(8.1)

(1.8)

(2.6)

0.3

0.5

0.2

0.3

2.0

2.4

(0.3)

0.9

32.3

31.2

－ 54 －

(Business Combinations)
At an investment and loans discussion meeting held on November 29, 2022, Necsel Intellectual
Property, Inc. (California, US), a consolidated subsidiary of the Company, resolved to acquire thelaser module business of Blue Sky Research, Incorporated (California, US), and it entered into thebusiness transfer contract with Blue Sky Research, Incorporated and acquired the business on April
3, 2023.
1. Overview of business acquisition(1) Name of company from which business was acquired and business description
Name of company from which business was acquired: Blue Sky Research, Incorporated
Business description:
Development and sale of laser module products(2) Reasons for the business acquisition
To expand the Group’s solid-state light source business by obtaining the laser couplingtechnology, product lineup, and customer base of Blue Sky Research, Incorporated.
(3) Date of the business acquisition
April 3, 2023
(4) Legal form of the business acquisition
Acquisition of business in exchange for cash
2. Period of results of acquired businesses included in consolidated financial statements
From April 3, 2023 to March 31, 2024
3. Matters relating to the calculation of the acquisition cost(1) Acquisition cost of business and components thereof by consideration type
Consideration for the acquisition:
Cash¥1,381 million ($9,125 thousand)Acquisition cost:¥1,381 million ($9,125 thousand)(2) Details of contingent consideration as set out in the business transfer contract, and policyon accounting treatment thereof going forward
The agreement stipulates that a portion of the acquisition consideration will be refundedbased on the degree of future earnings performance achieved by the acquired business.
The variable portion of the contingent acquisition consideration is recognized in accordancewith Generally Accepted Accounting Principles in the United States.
4. Content and amount of major acquisition-related costs
Remuneration and fees, etc. for advisory services ¥37 million ($245 thousand)
5. Amount of goodwill, reason for recognition, amortization method and amortization period(1) Amount of goodwill¥454 million ($3,001 thousand)(2) Reason for recognition
Mainly due to expected future excess earning power from forthcoming business development.
(3) Amortization method and amortization period
Amortized by the straight-line method over 10 years
6. Matters concerning the allocation of acquisition cost(1) Amount and breakdown of assets acquired and liabilities assumed on the date of the businessacquisition(Millions of yen)(Thousands of U.S. dollars)
Current assets
Non-current assets

219
94

1,450
624

Total assets

314

2,075

Current liabilities
Non-current liabilities

99
-

655
-

Total liabilities

99

655

－ 55 －

(2) Weighted average amortization period of intangible assets other than goodwill by total andmajor category
Other (Intangible assets)¥712 million ($4,704 thousand)
Weighted average amortization period
10 years
7. Estimated amount and calculation method of the effect on the consolidated statement of income forthe fiscal year under review assuming the business acquisition was completed on the first day of
the fiscal year
Disclosure is omitted due to immateriality.

－ 56 －

(Revenue Recognition)
1. Information on disaggregation of revenue from contracts with customers
Fiscal year ended March 31, 2023
(Millions of yen)
Reportable segment
Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

Others(Note)

Total

Total

UV lamps

13,631---

13,631-

13,631

OA lamps

6,355

-

-

-

6,355

-

6,355

Optical equipment lamps

11,596---

11,596-

11,596

Optical equipment (UV equipment)

34,562---

34,562-

34,562

Optical equipment (Others)

23,342---

23,342-

23,342

Projector lamps-

13,862--

13,862-

13,862Illumination lamps

-

3,681

-

-

3,681

-

3,681

Cinema projectors-

20,798--20,798-20,798General imaging projectors-

25,365--25,365-25,365

Life sciences products

-

-

5,595

-

5,595

-

5,595

Solid-state light sources

-

-

-

9,262

9,262

-

9,262

Other

-

-

-

-

-

1,457

1,457

89,48863,707

5,595

9,262

168,054

1,457

169,512

-

5,196

20

-

5,217

295

5,512

89,48868,904

5,616

9,262

173,271

1,753

175,025

Revenue from contracts with customers
Other revenue
Sales to external customers(Note) “Others” represents business segments that are not included in other reportable segments and otherrevenue-generating business activities.
Fiscal year ended March 31, 2024
(Millions of yen)
Reportable segment
Industrial
Processes
UV lamps

14,066VisualImaging

Life
Sciences-

Photonics
Solutions-

Others(Note 1)

Total-

14,066

Total-

14,066

OA lamps

5,537

-

-

-

5,537

-

5,537

Optical equipment lamps

10,284---

10,284-

10,284

Optical equipment (UV equipment)

32,910---32,910-32,910

Optical equipment (Others)

19,324---

19,324-

19,324

Projector lamps-

12,661--

12,661-

12,661

Illumination lamps

-

3,698

-

-

3,698

-

3,698

Cinema projectors-

31,316--31,316-31,316

General imaging projectors-

27,292--

27,292-

27,292

Life sciences products

-

-

5,193

-

5,193

-

5,193

Solid-state light sources

-

-

-

10,243

10,243-

10,243

Other
Revenue from contracts with customers
Other revenue
Sales to external customers

-

-

-

-

-

990

990

82,12474,9695,193

10,243

172,530

990

173,520

-

5,565

19

-

5,584

315

5,900

82,12480,534

5,212

10,243

178,115

1,305

179,420－ 57 －

Fiscal year ended March 31, 2024
(Thousands of U.S. dollars)
Reportable segment
Industrial
Processes
UV lamps

92,912VisualImaging

Life
Sciences-

Photonics
Solutions-

Others(Note 1)

Total-

92,912

Total-

92,912

OA lamps

36,575---36,575-36,575

Optical equipment lamps

67,926---67,926-67,926

Optical equipment (UV equipment)

217,377---

217,377-

217,377

Optical equipment (Others)

127,639---

127,639-

127,639

Projector lamps-

83,632--

83,632-

83,632Illumination lamps-

24,427--

24,427-

24,427

Cinema projectors-

206,847--

206,847-

206,847

General imaging projectors-

180,264--

180,264-

180,264

Life sciences products--

34,303-34,303-34,303

Solid-state light sources

-

-

-

67,66067,660-67,660

Other

-

-

-

-

-

6,539

6,539

542,432

495,172

34,30367,6601,139,568

6,539

1,146,107

Revenue from contracts with customers
Other revenue
Sales to external customers-

36,760126-

36,8872,084

38,971

542,432

531,932

34,42967,6601,176,455

8,623

1,185,079(Notes) 1. “Others” represents business segments that are not included in other reportable segments andother revenue-generating business activities.
2. The company has changed its reporting segments from the fiscal year under review. The details of
the changes are as stated in “Notes to Consolidated Financial Statements (Segment Information,etc.).”
Information on disaggregation of revenues from contracts with customers for the previous fiscal
year has been prepared based on post-change segmentation.
2. Information that forms the basis for understanding revenue from contracts with customers(1) Sales of products
The Group is primarily engaged in the manufacturing and sales of products in the Industrial
Processes business, Visual Imaging business, Life Sciences business and Photonics Solutions
business.
For the sales of various lamps, etc., in each business, 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 AccountingStandard for Revenue Recognition has been applied for products sold in Japan, and revenue isrecognized when products are shipped provided that there is an ordinary length of time between
shipping and when the control is transferred to customers. In addition, consideration fortransactions is generally received within four months after delivery of the product.
For the sales of a variety of optical equipment in the Industrial Processes business, where
there is installation of 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 thecustomer when the confirmation 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 productsthat do not include 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 for transactions is primarily received in stages according to the payment terms ofthe contract.

－ 58 －

For the sales of a variety of imaging equipment in the Visual Imaging business, the control ofthe products is deemed to be transferred upon delivery to the customer, so revenue is recognizedat the time of delivery. Significant financing components exist when part of the payments
represent receivables over a long period, but this is immaterial. In addition, consideration fortransactions is generally received within two months after delivery of the product. For somecustomers, consideration is received in stages according to the payment terms of the contract.
(2) Provision of maintenance services
For a variety of optical equipment in the Industrial Processes business, 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 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. For some products of optical equipment,variable consideration corresponding to the product’s capacity utilization rate is included in
the transaction 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 withthe variable 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 a variety of imaging equipment in the Visual Imaging business, maintenance services areprovided 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 performanceobligations to be satisfied over time, revenue is recognized according to the contract period. In
addition, consideration for transactions is primarily received in stages according to the payment
terms of the contract.

－ 59 －

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, 2023
Receivables from contracts with customers (at beginning of period)

Fiscal year ended March 31, 2024

(Millions of yen) (Millions of yen) (Thousands of U.S. dollars)
34,41537,403247,052

Receivables from contracts with customers (at end of period)
Contract assets (at beginning of period)
Contract assets (at end of period)

37,40338,192

252,265

-

-

-

-

-

-

Contract liabilities (at beginning of period)

14,388

11,731

77,489Contract liabilities (at end of period)

11,731

11,29474,601

Contract liabilities for optical equipment are related to advances received from customers
according to the payment terms of the contract for products that include installation work and forwhich revenue is recognized when the confirmation of agreed performance such as the customer’s
acceptance of the product has been completed. For imaging equipment, this primarily refers toadvances received from customers according to the payment terms of the contract for maintenanceservices contracts. Contract liabilities are reversed on recognition of revenue.
The amount of revenue recognized in the previous fiscal year that was included in the balance ofcontract liabilities as of the beginning of the period is ¥10,972 million.
In addition, the change in contract liabilities was due to a decrease from the reversals
associated with the recognition of revenue and an increase from the receipts from customers. There
were no changes in terms causing significant change in the balance.
There was no revenue (primarily, change in transaction price) recognized in the previous fiscal
year arising from performance obligations satisfied (or partially satisfied) in past periods.
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 ¥7,921 million ($52,321 thousand).
In addition, the change in contract liabilities was due to a decrease from the reversals
associated with the recognition of revenue and an increase from the receipts from customers. There
were no changes in terms causing significant change in the balance.
There was no revenue (primarily, change in transaction price) recognized in the fiscal year
under review arising from performance obligations satisfied (or partially satisfied) in past
periods.

－ 60 －

(2) Transaction price allocated to remaining performance obligations
The Group applies the practical expedient in describing the transaction price allocated toremaining performance obligations and do not include notes on contracts where the initially
expected contract period is one year or less.
(Industrial Processes business)
For UV lamps, OA lamps and optical equipment lamps, the initially planned contract period withcustomers is one year or less, so the total amount of transaction price allocated to remaining
performance obligations and the period forecast for recognizing revenue are omitted.
For optical equipment, performance obligations that have not yet been satisfied (or partially
not yet satisfied) were ¥38,161 million at the end of the previous fiscal year. Such performanceobligations are related to the manufacturing and sales of products that include installation workin optical equipment. Approximately 50% of the revenue is forecast to be recognized within one
year from the end of the period, with approximately 48% recognized within two years and theremaining 2% recognized within three years. Performance obligations that have not yet beensatisfied (or partially not yet satisfied) were ¥34,367 million ($226,995 thousand) at the end of
the current fiscal year. Such performance obligations are related to the manufacturing and salesof products that include installation work in optical equipment. Approximately 50% of the revenue
is forecast to be recognized within one year from the end of the period, with approximately 34%
recognized within two years and the remaining 16% recognized within three years.
(Visual Imaging business)
For projector lamps and illumination lamps, 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.
Performance obligations for imaging equipment are related to the manufacturing and sales ofvarious projectors, with the total amount of transaction price allocated to remaining performanceobligations and the period forecast for recognizing revenue as follows.
Fiscal year ended
March 31, 2023
Due within one year

Fiscal year ended March 31, 2024

(Millions of yen) (Millions of yen) (Thousands of U.S. dollars)
1,032
1,089
7,195

Due after one year and up to two years

624

619

4,094

Due after two years and up to three years

558

649

4,287

Due after three years and up to four years

503

636

4,201

Due after four years and up to five years

406

527

3,485

Due after five years

807

1,205

7,964

3,930

4,727

31,228

Total(Life Sciences business and Photonics Solutions business)
For performance obligations, the initially planned contract period with customers is one year or
less, so the total amount of transaction price allocated to remaining performance obligations andthe period forecast for recognizing revenue are omitted.

－ 61 －

(Segment Information, etc.)
Segment information
1. Summary of reportable segments
The Group 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 Group develops and implements comprehensive strategies based on a market-centric approach for
its development, manufacturing and sales of products and service, and engages in its businessactivities globally.
Thus, reportable segments of the Group are divided into four categories, the Industrial Processes
business, Visual Imaging business, Life Sciences business, and Photonics Solutions business, based onmarket.
“Industrial Processes business” produces and sells UV lamps, OA lamps, and optical equipment,
primarily for the semiconductor market.
“Visual Imaging business” produces and sells projector lamps and imaging equipment, largely forthe cinema and general imaging markets.
“Life Sciences business” produces and sells UV medical devices and light sources, mainly for theenvironmental hygiene solutions and healthcare markets.
“Photonics Solutions business” produces and sells solid-state light sources.
2. Matters relating to change in reporting segments(Changes to reporting segments)
From the current fiscal year, the Company has changed its reporting segments after reorganizing toshift from a product-centric to market-centric approach to accelerate efforts to evolve into a“light” solutions company by 2030. The previous segments were Light Source business, Optical
Equipment business, and Imaging Equipment business. The new segments are Industrial Processes
business, Visual Imaging business, Life Sciences business, and Photonics Solutions business.
The Company has disclosed segment information for the previous fiscal year based on reporting
segments after the change.
(Change in method for calculating earnings by reporting segments)
The Company reviewed methods for allocating some selling, general and administrative expenses tobetter reflect the performances of reporting segments, and has changed the method for calculating
earnings by reporting segments from the current fiscal year.
The Company has disclosed segment information for the previous fiscal year based on the revised
calculation methods.
3. 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.

－ 62 －

4. Information about net sales, segment profit or loss, assets, liabilities and other items byreportable segment
Fiscal year ended March 31, 2023
(Information for the previous fiscal year based on new reporting segments)(Millions of yen)
Eliminations
Amounts on
Reportable segment
or
consolidated
OthersTotalunallocatedfinancial
Industrial
VisualLife
Photonics(Note 1)
Total
amountsstatements
Processes
Imaging Sciences Solutions(Note 2)
(Note 3)
Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit(loss)
Segment assets

89,48868,904

5,616

9,262

173,271

1,753

175,025-

175,025

9

12

5

0

28

22

50

(50)

-

89,49868,916

5,621

9,262

173,299

1,775

175,075(50)

175,025

18,247

3,472(5,135)(293)

16,291(394)

15,896(34)

15,861

145,151

91,585

8,123

19,317

264,178

9,301

273,479

50,143

323,622

Other items:
Depreciation
3,338
2,705
478
889
7,412
202
7,615
7,615
Amortization of
106
49
13
169
169
169
goodwill
Investment inassociates under
117
117
117
117
equity method
Increase in property,
plant and equipment
4,362
3,412
530
749
9,053
53
9,107
9,107
and intangible
assets(Note 4)(Notes) 1. “Others” represents business segments that are not included in other reportable segments andother revenue-generating business activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to ¥(34) million,
include elimination of intersegment transactions totaling ¥38 million and corporate expenses
totaling ¥(79) million. Corporate expenses are general and administrative expenses notallocable to any reportable segment or other revenue-generating business activities.
(2) Eliminations or unallocated amounts of segment assets, amounting to ¥50,143 million, include
elimination of intersegment receivables and payables totaling ¥(66) million and corporate
assets not allocable to any reportable segment or other revenue-generating businessactivities totaling ¥50,202 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.

－ 63 －

Fiscal year ended March 31, 2024
Reportable segment

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit(loss)
Segment assets
Other items:
Depreciation
Amortization of
goodwill
Investment inassociates underequity method
Increase in property,
plant and equipment
and intangible
assets(Note 4)(Millions of yen)
Eliminations Amounts onorconsolidated
unallocatedfinancialamountsstatements(Note 2)
(Note 3)

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

Others(Note 1)

Total

Total

82,12480,534

5,212

10,243

178,115

1,305

179,420-

179,420

7

23

3

6

40

21

61

(61)

-

82,13180,557

5,215

10,250178,155

1,327

179,482(61)

179,420

10,876

5,887(2,329)(1,513)

12,920136

13,056(79)

12,976

161,824

102,848

6,066

19,578290,3176,541

296,859

40,686

337,546

3,571

3,182

342

1,038

8,135

189

8,325

-

8,325

33

18

-

63

115

-

115

-

115

-

-

10

-

10

-

10

-

10

5,829

4,779

451

2,024

13,084139

13,223-

13,223－ 64 －

Fiscal year ended March 31, 2024
Reportable segment
Industrial
Processes
Net sales
Sales to external
542,432
customers
Intersegment sales or
46transfers
542,478
Total
Segment profit
71,838(loss)
1,068,854
Segment assets
Other items:
23,586
Depreciation
Amortization of218
goodwill
Investment inassociates underequity method
Increase in property,
plant and equipment
38,502and intangible
assets(Note 4)

Photonics
Solutions

Others(Note 1)(Thousands of U.S. dollars)Eliminations Amounts onorconsolidated
Total
unallocatedfinancialamountsstatements(Note 2)
(Note 3)VisualImaging

Life
Sciences

531,932

34,429152

21532,084

34,451

67,704 1,176,719

38,886(15,387)(9,997)679,316

40,068129,317 1,917,555

21,022

2,261

6,861

53,733

1,254

54,987-54,987

124

-

418

760

-

760

-

760

-

66

-

66

-

66

-

66

31,5692,979

13,37186,422919

87,342-

87,342

Total

67,660 1,176,455
44

264

85,3408,623 1,185,079
143

408

8,767 1,185,487
898

86,23843,207 1,960,763- 1,185,079
(408)

-

(408) 1,185,079(527)

85,710268,737 2,229,501(Notes) 1. “Others” represents business segments that are not included in other reportable segments andother revenue-generating business activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to ¥(79) million($(527) thousand), include elimination of intersegment transactions totaling ¥4 million ($30
thousand) and corporate expenses totaling ¥(91) million ($(603) thousand). Corporate expenses
are general and administrative expenses not allocable to any reportable segment or otherrevenue-generating business activities.
(2) Eliminations or unallocated amounts of segment assets, amounting to ¥40,686 million ($268,737
thousand), include elimination of intersegment receivables and payables totaling ¥(134)
million ($(889) thousand) and corporate assets not allocable to any reportable segment orother revenue-generating business activities totaling ¥40,837 million ($269,734 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 ofincome.
4. The increase in long-term prepaid expense is included in increases in property, plant andequipment and intangible assets.

－ 65 －

Related information
Fiscal year ended March 31, 2023
1. Information by product and service
Information by product and service is omitted as the same information is disclosed in “Notes toConsolidated Financial Statements (Revenue Recognition) 1. Information on disaggregation of revenue
from contracts with customers.”
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
38,060

North America
U.S.A.
Other
43,2932,020

Asia

EuropeChina
37,09812,125

Other
41,146

Other areas
1,279

Total
175,025(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
31,795

North America
U.S.A.
Canada11,8001,596Europe
1,458

Asia
3,828

Other areas

Total
1

50,4803. 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.

－ 66 －

Fiscal year ended March 31, 2024
1. Information by product and service
Information by product and service is omitted as the same information is disclosed in “Notes toConsolidated Financial Statements (Revenue Recognition) 1. Information on disaggregation of revenue
from contracts with customers.”
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
40,553

North America
U.S.A.
Other
47,3572,020

Asia

EuropeChina
33,26015,178Other areas

Other
39,871

1,178

Total
179,420(Thousands of U.S. dollars)Japan
267,857

North America
U.S.A.
Other
312,796
13,348

Asia
China
219,684

Europe100,255

Other areas

Other
263,352

7,783

Total
1,185,079(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
27,093

North America
U.S.A.
Canada11,2081,483

Europe

Asia

1,653

Other areas

4,413

Total
1

45,854(Thousands of U.S. dollars)Japan
178,950

North America
U.S.A.
74,033

EuropeCanada9,798

Asia

10,923

Other areas

29,151

12

Total
302,870

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, 2023-

(Millions of yen)
Eliminations
or
Total
unallocatedamounts
588-(Millions of yen)
Eliminations
or
Total
unallocatedamounts
7,171

Reportable segment

Impairment loss

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

28

-

560

-

Total

Others588

Fiscal year ended March 31, 2024
Reportable segment

Impairment loss

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

4,497

60

126

2,487

－ 67 －

Total
7,171

OthersFiscal year ended March 31, 2024
(Thousands of U.S. dollars)
Reportable segment

Impairment loss

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

29,704396

835

16,430Total

Eliminations
orunallocatedamounts

Others47,367

-

-

Total

47,367

Information on amortization and unamortized balance of goodwill by reportable segment
Fiscal year ended March 31, 2023
(Millions of yen)
Reportable segment

Eliminations
orunallocatedamounts

Others

Total

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

Amortization
for the year

106

49

-

13

169

-

-

169

Balance

37

161

-

52

252

-

-

252

Total

Fiscal year ended March 31, 2024
(Millions of yen)
Reportable segment

Eliminations
orunallocatedamounts

Others

Total

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

Amortization
for the year

33

18

-

63

115

-

-

115

Balance

108

161

-

510

780

-

-

780

Total

Fiscal year ended March 31, 2024
(Thousands of U.S. dollars)
Reportable segment

Eliminations
orunallocatedamounts

Others

Total

Industrial
Processes

VisualImaging

Life
Sciences

Photonics
Solutions

Amortization
for the year

218

124

-

418

760

-

-

760

Balance

715

1,068

-

3,369

5,153

-

-

5,153

Total

Information on gain on negative goodwill by reportable segment
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.

－ 68 －

Related party information
Fiscal year ended March 31, 2023
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
Fiscal year ended March 31, 2024
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, 2023
Net assets per share
Basic earnings per share¥2,074.27¥115.69

Fiscal year ended March 31, 2024
Net assets per share
Basic earnings per share¥2,313.48¥97.22

Net assets per share
Basic earnings per share$15.28$0.64(Notes) 1. Diluted earnings per share is not presented since no potential shares exist.
2. The basis used for calculating basic earnings per share is as follows:
Fiscal year ended
March 31, 2023

Fiscal year ended March 31, 2024

(Millions of yen)
Profit attributable to owners of theparent(Millions of yen)(Thousands of U.S. dollars)

13,69910,785

71,237---

Profit attributable to owners of theparent attributable to common shares

13,69910,785

71,237

Average number of common shares
outstanding during the year (Shares)

118,414,343

110,933,321

110,933,321

Profit not attributable to commonshareholders

3. 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(230,100 shares and 475,680 shares as of March 31, 2023 and 2024, 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 per share (230,700 shares and 361,737 shares for the fiscal years ended March 31, 2023
and 2024, respectively).

－ 69 －

(Subsequent Events)
Purchase of treasury shares
In accordance with the resolution by the Board of Directors meeting held on May 14, 2024 topurchase treasury shares pursuant to the provisions of Article 156 of the Companies Act, as appliedmutatis mutandis pursuant to the provisions of Article 165, paragraph 3 of the Companies Act, theCompany 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:
Total amount of shares to be purchased:
Purchase period:

Common shares of the Company
20,000,000 shares (maximum)¥30,000 million ($198,150 thousand) (maximum)
May 24, 2024 to April 30, 2025

(3) Results of purchase
Type of shares purchased:
Total number of shares purchased:
Total amount of shares purchased:
Purchase period:
Purchasing method:

Common shares of the Company
2,886,000 shares¥6,037,391,400 ($39,877 thousand)May 24, 2024 to July 31, 2024
Market purchase on the Tokyo Stock Exchange－ 70 －

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

Classification

Short-term loans payable

Balance at
beginning
Balance atBalance at
beginning ofof current
end of current
current
periodperiodperiod(Thousands(Millions of yen)
(Millions of yen)of U.S.
dollars)

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

Averageinterest
rate(%)

Repayment
term

3,921

2,455

25,898

16,216

4.4

-

-

-

-

-

-

-

858

1,054

5,669

6,962

3.3

-

Long-term loans payable(excluding current portion)

1,410

26,410

9,313

174,438

0.5

From 2025 to
2026

Lease obligations (excluding
current portion)

2,305

3,238

15,23021,387

3.4

From 2025
to 2043

Total

8,495

33,157

56,111

219,005--

Current portion of long-termloans payable
Current portion of leaseobligations(Notes) 1. The average interest rate represents the weighted-average interest rate over the year-end
balance of loans.
2. Regarding the average interest rates on lease obligations, the total amount before deducting
interest equivalents included in the total lease payments is recorded as lease obligations.
Therefore, only the average interest rate of the lease obligations of consolidated subsidiaries
is provided.
3. For foreign subsidiaries that have adopted Generally Accepted Accounting Principles in the
United States, lease liabilities for operating leases that have been recognized under Leases(ASU No. 2016-02 (Topic 842)) have been included in the balance of current portion of leaseobligations and of lease obligations (excluding current portion).
4. 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)

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

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

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

Long-term loans
payable1,410

25,000--

Lease obligations

1,001

808

661

382

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

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

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

Due after four years
and up to five years(Thousands of U.S. dollars)Long-term loans
payable9,313

165,125--

Lease obligations

6,613

5,343

4,370

2,523

－ 71 －

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.
(2) Other Information
Quarterly information for the fiscal year ended March 31, 2024
First three months

First six months

First nine months

Fiscal year ended
March 31, 2024

Net sales (Millions of yen)

39,28185,003

132,510

179,420

Profit before income
taxes (Millions of yen)

3,097

6,476

12,746

15,681

Profit attributable toowners of the parent(Millions of yen)

1,794

4,259

8,691

10,785

Basic earnings per share (Yen)

15.36

36.92

76.84

97.22

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

Second quarter

15.36

21.65

Third quarter

Fourth quarter

40.72

20.06

Quarterly information for the fiscal year ended March 31, 2024
First three months

First six months

First nine months

Fiscal year ended
March 31, 2024

Net sales(Thousands of U.S. dollars)

259,452

561,449875,231

1,185,079

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

20,45842,78084,189103,576

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

11,85528,132

57,406

71,237

Basic earnings per share(U.S. dollars)

0.10

0.24

0.50

0.64

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

Second quarter

0.10

0.14

－ 72 －

Third quarter
0.26

Fourth quarter
0.13