Consolidated Financial Statements
USHIO INC.
Year ended March 31, 2020 with
Independent Auditor’s ReportIndependent Auditor’s Report

The Board of Directors
USHIO INC.

OpinionWe have audited the accompanying consolidated financial statements of USHIO INC. and its
consolidated subsidiaries (the Group), which comprise the consolidated balance sheet as at
March 31, 2020, and the consolidated statements of income, comprehensive income, changes in
net assets, and cash flows for the year then ended, and notes to the consolidated financial
statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2020, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of
the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and 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 forsuch internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Audit and Supervisory Committee is responsible for overseeing the Group’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of 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 the underlying transactions and events in a manner that achieves fair presentation inaccordance with 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, theplanned 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 the financial
statements in Japan, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2020 are presented solely for convenience. Our audit also included thetranslation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made on the basis described in Note 4 (9) to the consolidated financial statements.

Ernst & Young ShinNihon LLC
Tokyo, Japan
June 26, 2020

田 中

宏 和

印

須 山 誠一郎印

Designated Engagement Partner
Certified Public Accountant

Designated Engagement Partner
Certified Public Accountant

Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheet
As of March 31, 2019

As of March 31, 2020

(Millions of yen)

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade (*2)
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Property, plant and equipment, net
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities (*1)
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 －85,65539,456
4,405
27,915
17,362
17,1639,770(1,610)200,119

60,67940,326
4,222
25,75815,40916,014
10,467(2,043)
170,835

557,561
370,547
38,798236,683
141,591
147,152
96,185(18,778)
1,569,742

44,334(25,225)
19,10923,326(18,617)
4,709
8,572
1,481
34,198(25,019)
9,178
43,05044,619(26,222)
18,396
23,676(17,904)
5,772
8,393
2,061
36,018(26,400)
9,617
44,242409,988(240,945)
169,042
217,553(164,514)
53,03977,12918,944
330,962(242,586)
88,375406,532

1,370
3,271
4,642

698
3,048
3,746

6,415
28,012
34,42751,005
347
2,104
3,391
2,505
(538)
58,815
106,509306,628

50,278
18
1,963
1,949
2,398
(529)
56,079104,069
274,904

461,993173
18,03917,91622,041(4,865)515,298
956,258
2,526,000

As of March 31, 2019

As of March 31, 2020

(Millions of yen)

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

Liabilities
Current liabilities
Notes and accounts payable-trade (*2)
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement
benefits
Provision for directors' stock payment
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares, at cost
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets－ 3 －21,665
10,00818,7303,110

172,106
28,578

8,520

6,298

57,877

7,021
2,047
2,192
11
18,10569,572

955
1,999
2,202
15
14,41647,7298,781
18,371
20,239146
132,470438,572

10,410
4,592

12,847
3,863

118,052
35,503

329

243

2,241

221
3,186
244
4,816
23,80093,373

186
3,829
240
5,257
26,46874,1981,714
35,185
2,210
48,304
243,213681,785

19,556
27,727
162,936(10,811)
199,408

19,556
27,727156,082(9,148)194,218

179,696
254,777
1,434,189(84,060)
1,784,603

14,445

11,874

109,111(17)
2,761(3,496)(10)(1,242)(4,223)(94)(11,421)(38,810)

13,693

6,397

58,785152
213,254306,62889
200,705
274,904825
1,844,214
2,526,000

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

Net sales
Cost of sales (*1)
Gross profit
Selling, general and administrative expenses(*2,3)
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on investments in investment
partnerships
Gain on specified money in trust
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on trading securities
Loss on valuation of investment securities
Share of loss of entities accounted forusing equity method

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)
165,138
106,61158,526(Millions of yen) (Thousands of U.S. dollars)
159,009
1,461,079
105,580970,143
53,428490,935

50,00846,769429,744

8,517

6,659

61,190

1,719
1,467
85

1,686
1,143
98

15,49810,506
908

121

294

2,701

55
377
3,827

436
3,659

4,006
33,621

560
162
-

663
226
168

6,101
2,077
1,547

30

54

496

Loss on specified money in trust

-

12

116

Provision of allowance for doubtful accounts

-

183

1,689

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets (*4)
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets (*5)
Loss on sales of non-current assets (*6)
Impairment loss (*7)
Loss on disaster
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Loss on revision of retirement benefit plan
Retirement benefit expenses (*8)
Business structure improvement expenses (*9)
Loss on temporary closure (*10)
OtherTotal extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of the parent

153
906
11,439

271
1,580
8,738

2,491
14,52080,292

85
12,201
12,286

12
6,312
6,325

118
58,00058,118

80
9
141
20
60
-

108
17
155
32

996
163
1,427
299

116

53

495

40
2,576
289
3,335
20,390
9,028
100
9,129
11,260(65)
11,326

543
1,000
167
2,079
12,984
3,289
758
4,047
8,936
(31)
8,967

4,990
9,193
1,539
19,105
119,305
30,224
6,970
37,194
82,110(290)
82,401－ 4 －Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to;

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)
11,260(Millions of yen) (Thousands of U.S. dollars)
8,936
82,110Owners of the parent
Non-controlling interests－ 5 －(9,801)(2,658)(24,427)

(1)
1,765
(25)

7
(3,995)(726)

65(36,709)(6,678)

1

(12)

(112)

(8,061)
3,198(7,385)1,550(67,862)
14,248

3,274

1,584

14,561

(75)

(34)

(312)

3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2019
(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

163,217(17,212)

193,332

27,771

Changes of items during period
Dividends from surplus(3,329)(3,329)Profit attributable toowners of the parent

11,326

11,326

Purchase of treasury shares(2,263)

Disposal of treasury shares
Retirement of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period(43)(8,611)(2,263)

9

9

8,654

-

333

333
-

-

(43)

(281)

6,401

6,076

19,556

27,727

162,936(10,811)

199,408

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period

24,247

Deferred
gains orlosses onhedges(15)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

984(3,471)

21,744229

Total net
assets215,306

Changes of items during period
Dividends from surplus(3,329)Profit attributable toowners of the parent

11,326

Purchase of treasury shares(2,263)

Disposal of treasury shares
Retirement of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

9333(9,801)

(1)

1,777

(25)

(8,051)(76)(8,127)(9,801)

(1)

1,777

(25)

(8,051)(76)(2,051)

14,445

(17)

2,761

(3,496)

13,693

152

213,254－ 6 －Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies

Capital surplus

19,556

Retained earnings

Treasury shares, at cost

Total shareholders' equity

162,936(10,811)

199,408

27,727(64)

Restated balance

19,556

27,727(64)

162,871(10,811)

199,343

Changes of items during period
Dividends from surplus(6,316)(6,316)

Profit attributable toowners of the parent

8,967

8,967

Purchase of treasury shares(7,844)(7,844)

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

68

68

9,439

-

(9,439)--(6,788)

1,663(5,125)

19,556

27,727156,082(9,148)194,218

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

14,445

Deferred
gains orlosses onhedges(17)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

2,761(3,496)

13,693152

87
14,533

87
(17)

2,761

(3,496)

13,780Total net
assets213,25422

152

213,277

Changes of items during period
Dividends from surplus(6,316)

Profit attributable toowners of the parent

8,967

Purchase of treasury shares(7,844)

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

68(2,658)7(4,004)(726)(7,383)(63)(7,446)(2,658)7(4,004)(726)(7,383)(63)(12,571)

11,874(10)(1,242)(4,223)6,397

89200,705－ 7 －Fiscal year ended March 31, 2020
(Thousands of U.S. dollars)
Shareholders' equity

Capital stock

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

Capital surplus

179,696

Retained earnings

Treasury shares, at cost

Total shareholders' equity

1,497,164(99,344)

1,832,293

254,777(596)
179,696

254,777(596)

1,496,568(99,344)

1,831,697

Changes of items during period
Dividends from surplus(58,044)(58,044)

Profit attributable toowners of the parent

82,401

82,401

Purchase of treasury shares(72,076)(72,076)

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

626

626

86,735-(86,735)--(62,378)

15,284(47,093)

179,696

254,777

1,434,189(84,060)

1,784,603

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

132,737

Deferred
gains orlosses onhedges(160)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

25,378(32,131)

125,8241,405

802
133,539

802(160)

25,378(32,131)

126,626

Total net
assets1,959,522
206

1,405

1,959,728

Changes of items during period
Dividends from surplus(58,044)

Profit attributable toowners of the parent

82,401

Purchase of treasury shares(72,076)

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

626(24,427)65(36,799)(6,678)(67,840)(579)(24,427)

65

109,111(94)(36,799)(6,678)(67,840)(579)(115,514)(11,421)(38,810)58,785825

1,844,214－ 8 －(68,420)

4) Consolidated Statement of Cash Flows
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

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

Operating activities
Profit before income taxes
Depreciation
Impairment loss
Loss on disaster
Increase (decrease) in net defined benefit liability
Amortization of goodwill
Increase (decrease) in allowance for
doubtful accounts
Retirement benefit expenses
Business structure improvement expenses
Interest and dividend income
Interest expenses
Loss (gain) on trading securities
Share of loss (profit) of entities accounted
for using equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in advances received
Other
SubtotalInterest and dividends received
Interest paid
Payment of business structure improvement expenses
Income taxes refund (paid)
Net cash provided by (used in) operating activities－ 9 －20,390
6,775
141
20
415
1,135

12,984
7,182
155
558
636

119,305
65,993
1,427
5,130
5,846

391

466

4,287

2,576
(3,187)
560
162

543
1,000
(2,830)
663
226

4,990
9,193
(26,005)
6,101
2,077

30

54

496

(75)
80
(12,141)-4
108(6,312)20145996(58,000)
1,847

116

53

495

2,471

(1,485)(13,651)(8,995)2,794

25,679252(2,762)(25,381)(369)(1,679)(15,428)

(940)
9,811
2,948
(586)
(702)
(2,617)
8,853(1,569)10,995
2,883
(669)
(896)
(11,132)
1,179(14,417)
101,029
26,494(6,149)(8,241)(102,294)
10,837

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

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

Investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Proceeds from sales of shares ofsubsidiaries resulting in change in scope of
consolidation (*2)
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for acquisition of business
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
Cash dividends paid to non-controllingshareholders
Net cash provided by (used in) financing
activities
Effect of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries fromconsolidation
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (*1)

－ 10 －(16,577)
14,225(11)
129(1,002)
2,603(6,228)566(924)(2,869)(4,420)13,495
(16)
85
(243)
1,639
(7,809)206(477)(5,574)(40,615)
124,001(156)
784(2,239)15,066(71,754)
1,897(4,390)(51,221)

13,481

7,456

68,511

714

65

606

(454)
0
(935)
2
2,719

(38)
25
0
4,394

(349)
231
7
40,3793,028(6,644)(61,052)521(1,868)(2,263)(3,335)8,852(8,415)(7,844)(6,312)

81,341(77,329)(72,076)(57,999)

(0)

-

-

(3,916)(20,363)(187,117)

930

(786)

(7,225)

8,586(15,576)(143,125)

(0)

-

-

66,03574,622

74,622
59,046685,677
542,552

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: 55(2) The changes in the scope of consolidation for the fiscal year ended March 31, 2020 are as
follows:(Addition) ・One company included in the scope of consolidation due to new establishment
CHRISTIE DIGITAL SYSTEMS INNOVATINOS ULC(Exclusion) ・One company excluded from the scope of consolidation due to sale of shares
CHRISTIE MEDICAL HOLDINGS, INC.
2. Application of equity method(1) Number of associates under equity method: One
Name of major company:
KA Imaging Inc.
(2) The associate that is not accounted for using the equity method (Hokkaido Saladpaprika Co.,
Ltd.) is excluded from the scope of the equity method since such exclusion has an immaterial
effect on consolidated financial statements of USHIO INC. (the “Company”) in terms of profit
or loss (amount corresponding to the Company’s equity position), retained earnings (amountcorresponding to the Company’s equity position) and others, and the entity, as a whole, is notmaterial.
(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
year end.
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.
USHIO MEDICAL TECHNOLOGY (SUZHOU) CO., LTD.
CHRISTIE DIGITAL SYSTEMS (SHANGHAI) Co., LTD.
USHIO SHENZHEN, INC.
CHRISTIE DIGITAL SYSTEMS (SHENZHEN) CO., LTD.
United Designers of Architectural Lighting, Inc.
CHRISTIE TRADE DEVELOPMENT (SHANGHAI) CO., LTD.

December 31*1
December 31*1
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
Securities with determinable market value:
Carried at fair value based on market prices at the fiscal year-end date (for stocks,
the average market price for one month prior to the fiscal year end). (Valuationdifference is stated as a component of net assets in the consolidated balance sheets, thecost of securities sold is calculated by the moving-average method.)
Securities without determinable market value:
Carried at cost using the moving-average method
4) Investments in an investment limited partnership and other similar partnerships (deemed as
securities according to Article 2, paragraph 2 of the Financial Instruments and Exchange
Act)
Carried at their corresponding equity value, based on the latest financial statements
available prepared on the financial reporting dates as specified in the respective
partnership agreements.
(b) Derivatives
Carried at fair value(c) Money held in trust for investment purposes
Carried at fair value(d) Inventories
1) Merchandise and finished goods, and work in process
Merchandise and finished goods, and work in process are stated principally at cost
determined by the gross average method (balance sheet amounts are determined based on themethod of writing down book value in accordance with decreased profitability) for theCompany and its domestic consolidated subsidiaries and at the lower of cost or market,
cost being determined by the first-in, first-out method for overseas consolidated
subsidiaries.
2) Raw materials
Raw materials are stated principally at cost determined by the moving-average method(balance sheet amounts are determined based on the method of writing down book value inaccordance with decreased profitability) for the Company and its domestic consolidated
subsidiaries and at the lower of cost or market, cost being determined by the first-in,
first-out method for overseas consolidated subsidiaries.
(2) Accounting policy for depreciation of significant assets(a) Property, plant and equipment (excluding leased assets)
Depreciation of property, plant and equipment is calculated principally by the straightline method.
The estimated useful lives of the major assets are as follows:
Buildings and structures:
2 to 50 years
Machinery, equipment and vehicles: 3 to 15 years
Others:2 to 15 years(b) Intangible assets (excluding leased assets)
Amortization of intangible assets is calculated by the straight-line method.
In addition, amortization of software for internal use is calculated by the straight-line
method based on the estimated useful life of five years.

－ 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
depreciated by the same approach as the depreciation method applied to self-owned noncurrent assets.
Leased assets related to finance lease transactions that do not transfer ownership
Leased assets related to finance lease transactions that do not transfer ownership are
depreciated by the straight-line method over the lease period that is deemed as the usefullife, assuming no residual value.
(3) Accounting policy for significant allowances(a) Allowance for doubtful accounts(i) The Company and its domestic consolidated subsidiaries
To prepare for losses from bad debts, an estimated uncollectible amount is provided
either by making an estimation using the historical rate of credit loss in the case ofgeneral receivables, or based on individual consideration of collectibility in the caseof specific receivables such as highly doubtful receivables.
(ii) Overseas consolidated subsidiaries
To prepare for losses from bad debts, an estimated uncollectible amount is provided
based on consideration of collectibility for individual receivables.
(b) Provision for bonuses
The provision for bonuses represents the amounts for future payments of employees’bonuses.
The provision is recognized in the amount that is expected to be paid.
(c) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries recognize provision for retirement benefits for
directors, corporate auditors and others in the full amount that would have to be paid if all
the directors and corporate auditors resigned at the balance sheet date based on theirinternal regulations.
(d) Provision for directors’ stock payment
Provision for directors’ stock payment represents the amounts for future payments of theCompany’s stock to directors. The provision is recognized based on the amount that is
expected to be paid, which is determined using points allocated to each director asprescribed in the share granting rules.
(e) Provision for product warranties
Provision for product warranties is recognized for expenses for after-sales service andfree repairs for products sold by the Company and its consolidated subsidiaries in theestimated amount to be incurred in the future.
(f) Provision for loss on orders received
To provide for future losses on contracted orders received, the Company recognizes aprovision for loss on orders received equal to the amount of losses it anticipates after the
year-end. Such a provision is recognized when losses on orders received are probable andreasonably estimated at the end of the current fiscal year.
(4) Accounting treatment of retirement benefits
1) Method for attribution of estimated retirement benefits to periods
In the calculation of retirement benefit obligations, the expected retirement benefits
attributed to the period up to the end of current fiscal year are based on the benefit
formula method.
2) Accounting method for actuarial gains or losses and past service costs
Past service costs are amortized by the straight-line method over a certain period (mainly
15 years) that is within the average remaining years of service of the eligible employees
when the costs are incurred.
Actuarial gains or losses are amortized in the year following the year in which the gains
or losses are recognized by the straight-line method over a certain period (mainly 15 years)
that is within the average remaining years of service of the eligible employees when thegains or losses occur.

－ 13 －

(5) 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 the transaction 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 internalmanagement 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 fromthe inception of the hedge to the time of determining the effectiveness, and based on therespective amount of changes.
(6) Method and period for amortization of goodwill
Goodwill is amortized in equal portions over the period in which it is deemed to be valuable.
(7) 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.
(8) Other significant matters forming the basis of preparing the consolidated financial statements
Accounting method for consumption taxes
The consumption taxes are accounted for using the tax exclusion method.
(9) U.S. Dollar Amounts
For the readers’ convenience, the accompanying consolidated financial statements with respect
to the fiscal year ended March 31, 2020 have been presented in U.S. dollars by translating all
yen amounts at ¥108.83 = U.S. $1.00, the exchange rate prevailing on March 31, 2020. Thistranslation should not be construed as a representation that the yen amounts have been, could
have been, or could in the future be converted into U.S. dollars at the above or any other rate.

－ 14 －

(Changes in Accounting Policies)
・Application of Revenue from Contracts with Customers (Accounting Standard Update (“ASU”) No.
2014-09)
Overseas consolidated subsidiaries adopting U.S. GAAP have applied the Revenue from Contracts
with Customers (Topic 606; hereinafter “ASU2014-09”) effective from the fiscal year ended March
31, 2020.
As a result of the application of ASU2014-09, it is required that an entity should recognize
revenue when the entity transfers promised goods or services to customers at an amount thatreflects the consideration to which the entity expects to be entitled in exchange for those goods
or services.
In accordance with the transitional treatment stipulated in the aforementioned accounting
standard, the cumulative effect as of the beginning of the current fiscal year has been added toor deducted from the balance of retained earnings.
The impact on retained earnings at the beginning of the current fiscal year and on profit (loss)
for the current fiscal year is immaterial.
・Application of Recognition and Measurement of Financial Assets and Financial Liabilities (ASU No.
2016-01)
Overseas consolidated subsidiaries adopting U.S. GAAP have applied the Recognition andMeasurement of Financial Assets and Financial Liabilities (Subtopic 825-10; hereinafter“ASU2016-01”) effective from the fiscal year ended March 31, 2020.
As a result of the application of ASU2016-01, equity investments, excluding equity method
investments or consolidated investments, are required to be measured at fair value with changes infair value recognized in profit or loss.
In accordance with the transitional treatment stipulated in the aforementioned accounting
standard, the cumulative effect as of the beginning of the current fiscal year has been added toor deducted from the balance of retained earnings and accumulated other comprehensive income.
The impact on retained earnings and valuation difference on available-for-sale securities at the
beginning of the current fiscal year, and on profit (loss) for the current fiscal year isimmaterial.

－ 15 －

(Accounting Standards Issued but Not Yet Applied)(Accounting Standard for Revenue Recognition, etc.)
・Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement
No. 29, issued on March 31, 2020)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30,
issued on March 31, 2020)(1) Overview
International Accounting Standards Board (IASB) and FASB jointly developed a comprehensive
accounting standard for revenue recognition and issued “Revenue from Contracts with Customers”(IFRS No. 15, issued by IASB and Topic 606 issued by FASB) in May 2014. Considering thesituation that IFRS No. 15 has become applicable from the fiscal year beginning on and afterJanuary 1, 2018 and Topic 606 from the fiscal year beginning after December 15, 2017, ASBJ
developed a comprehensive accounting standard for revenue recognition and issued it together
with implementation guidance.
ASBJ’s basic policy in developing the accounting standard for revenue recognition was toestablish accounting standards as a starting point to adopt basic principles of IFRS No. 15
from the viewpoint of comparability of financial statements, which is one of the benefits ofmaintaining consistency with IFRS No. 15, and to add alternative treatments to the extent not
to impair comparability in cases where previous practices and others in Japan should beconsidered.
(2) Date of application
These standards will be applied from the beginning of the fiscal year ending March 31, 2022.
(3) Impact of application
The impact of these standards on the consolidated financial statements is currently being
evaluated.
(Leases)・Leases (ASU No. 2016-02 (Topic 842), issued on February 25, 2016)(1) Overview
This accounting standard and relevant regulations in principle require that recognition ofassets and liabilities arising from all leases to be conducted by the lessee of a lease. There
are no significant changes to the accounting requirements of the lessor.
(2) Date of application
ASU No. 2016-02 (Topic 842) will be applied from the fiscal year beginning on April 1, 2022.
(3) Impact of application
The impact of this standard on the consolidated financial statements is currently being
evaluated.
(Accounting Standard for Disclosure of Accounting Estimates)
・Accounting Standard for Disclosure of Accounting Estimates (Accounting Standards Board of Japan(ASBJ) Statement No. 31, issued on March 31, 2020)(1) Overview
With regard to “sources of estimation uncertainty,” which is required to be disclosed inparagraph 125 of International Accounting Standard (IAS) 1 “Presentation of Financial
Statements”(hereinafter“IAS 1”) issued by the International Accounting Standards Board (IASB)
in 2003, in response to requests to consider requiring that those source of estimation
uncertainty should be disclosed as note information in the Japanese GAAP as well, since theseinformation are highly useful to users of financial statements , the ASBJ developed and issued
the Accounting Standard for Disclosure of Accounting Estimates (hereinafter “AccountingStandard”).
The ASBJ’s basic policy for the development of the Accounting Standard is to present the
principle (disclosure purpose) instead of enhancing individual notes, and entities are required
to make judgment to determine which specific information should be disclosed according to the－ 16 －

disclosure purpose, while referring to the provision of paragraph 125 of IAS 1 in thedevelopment.
(2) Date of application
The Accounting Standard will be applied from the end of the fiscal year ending March 31, 2021.
(Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections)
・Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections(Accounting Standards Board of Japan (ASBJ) Statement No. 24, issued on March 31, 2020)(1) Overview
After receiving proposals for considering the enhancement of information in notes on“accounting policies and procedures adopted in cases where the relevant provisions set forthin accounting standards and other regulations are not clear,” the ASBJ made necessary
amendments to ASBJ Statement No. 24, and issued the revised accounting standard as the“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error
Corrections.”
When enhancing information in notes on “accounting policies and procedures adopted in cases
where the relevant provisions set forth in accounting standards and other regulations are notclear,” the Annotations on the Corporate Accounting Principles (Annotation No. 1-2) shall be
continued to be followed to avoid affecting established accounting practices in cases where therelevant provisions set forth in accounting standards and other regulations are clear.
(2) Date of application
This standard will be applied from the end of the fiscal year ending March 31, 2021.
(Accounting Standard for Fair Value Measurement, etc.)
・Accounting Standard for Fair Value Measurement (Accounting Standards Board of Japan (ASBJ)
Statement No. 30, issued on July 4, 2019)
・Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9, issued on July 4, 2019)
・Accounting Standard for Financial Instruments (ASBJ Statement No. 10; issued on July 4, 2019)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,
issued on July 4, 2019)
・Implementation Guidance on disclosures about Fair Value of Financial Instruments (ASBJ GuidanceNo. 19, issued on March 31, 2020)(1) Overview
In light of the situation in which the International Accounting Standards Board (IASB) andthe U.S. Financial Accounting Standards Board (FASB) have established detailed guidance on fairvalue measurement with almost the same content (IFRS 13 “Fair Value Measurement” inInternational Financial Reporting Standards (IFRS), and Accounting Standards Codification Topic
820 “Fair Value Measurement” in the US GAAP), the Accounting Standards Board of Japan (ASBJ)
worked to ensure consistency of the Japanese GAAP with international accounting standards
mainly for guidance on fair value of financial instruments and disclosures and issued the“Accounting Standard for Fair Value Measurement” as well as issued or revised related
accounting standards and implementation guidances.
The ASBJ’s basic policy for the development of the accounting standard for fair value
measurement is to incorporate, in principle, all the provisions of IFRS 13 from the perspectiveof increasing comparability of financial statements among companies in Japan and overseas byusing the unified measurement method, and to establish other treatments of individual items to
the extent that consideration is given to practices in Japan to date and comparability is not
significantly impaired among financial statements.
(2) Date of application
These standards will be applied from the beginning of the fiscal year ending March 31, 2022.
(3) Impact of application
The impact of applying the “Accounting Standard for Fair Value Measurement” and otheraccounting standards and implementation guidances on the consolidated financial statements iscurrently not determined.

－ 17 －

(Changes in Presentation)(Consolidated Statement of Income)“Gain on investments in investment partnerships,” which was included in “Other” under “Nonoperating income” for the previous fiscal year, has been presented separately from the current
fiscal year, since the significance of the amount has increased. To reflect this change inpresentation, the amount in the consolidated financial statements for the previous fiscal year has
been reclassified.
As a result, ¥499 million presented in “Other” under “Non-operating income” in the consolidated
statement of income for the previous fiscal year has been reclassified into ¥121 million of “Gainon investments in investment partnerships” and ¥377 million of “Other.”(Consolidated Statement of Cash Flows)“Increase (decrease) in advances received,” which was included in “Other” under “Operating
activities” for the previous fiscal year, has been presented separately from the current fiscal
year, since the significance of the amount has increased. To reflect this change in presentation,
the amount in the consolidated financial statements for the previous fiscal year has been
reclassified.
As a result, ¥(1,309) million presented in “Other” under “Operating activities” in the
consolidated statement of cash flows for the previous fiscal year has been reclassified into ¥(369)
million of “Increase (decrease) in advances received” and ¥(940) million of “Other.

－ 18 －

(Additional Information)(Stock remuneration plan for directors)
The Company has introduced a stock remuneration plan for directors of the Company (excluding
outside directors) and executive officers who have entered into an engagement agreement with theCompany (excluding overseas residents, hereinafter “Directors, et al.”), in order to raise the
incentive to contribute to improving the Company’s medium- to long-term business performance and toincreasing enterprise value.
(1) Overview
The Company entrusts money equivalent to remuneration of Directors, et al. The Company’s
shares will be acquired using the entrusted money and the Company’s shares and the cash
equivalent of the conversion value of the Company’s shares will be delivered and paid to
Directors, et al. based on his or her position and the degree of accomplishment of businessperformance. Directors, et al. are eligible to receive the Company’s shares and the cash
equivalent of the conversion value of the Company’s shares, in principle after retiring fromthe position of Director, et al. In order to maintain neutrality toward management of theCompany, the voting rights of the Company’s shares in the trust may not be exercised during
the trust period.
(2) The Company’s shares in the trust
The Company’s shares in the trust were recorded as treasury shares in net assets on the
consolidated balance sheet with the carrying value in the trust (excluding ancillary
expenses). The carrying value and number of treasury shares in the trust were ¥573 million
and 352,300 shares as of March 31, 2019 and ¥505 million ($4,644 thousand) and 310,450 shares
as of March 31, 2020, respectively.
(Accounting estimates associated with the spread of the novel coronavirus disease (COVID-19))
Although the impact and its degree of COVID-19 on the Group varies depending on the business,sales decreased due to such factors as the closure of cinemas and self-restraint from events in
response to the spread of COVID-19, mainly in part of the visual image equipment business and thelight sources business.
In preparing consolidated financial statements, we are making accounting estimates such as
impairment loss on non-current assets and recoverability of deferred tax assets based onassumptions such as a gradual recovery from October 2020 and settling down of the situation during
the fiscal year ending March 31, 2021.
However, as the forecasts of the spread of COVID-19 and of when the situation will settle down,
etc. involve uncertainties, the actual results may differ from these estimates.

－ 19 －

(Consolidated Balance Sheet)*1 Investments in associates are as follows:
As of March 31, 2019
Investment securities (stocks)(Millions of yen)53

As of March 31, 2020
(Millions of yen)
273

(Thousands of U.S. dollars)
2,511*2 Notes maturing at the fiscal year end
Notes maturing at the fiscal year end are accounted for on the clearing dates. Since the last dayof the fiscal year ended March 31, 2019 was a holiday of financial institutions, the following
notes maturing at the fiscal year end are included in the balances as of March 31, 2019.
As of March 31, 2019
Notes receivable-trade
Notes payable-trade(Millions of yen)
125651

－ 20 －

As of March 31, 2020
(Millions of yen)-(Thousands of U.S. dollars)-(Consolidated Statement of Income)*1 The ending inventory balance is the amount after write-down of book value due to decline inprofitability(the figure in parenthesis is a reversal), and the loss on valuation of inventories
included in cost of sales is as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

(Millions of yen)
917

(Thousands of U.S. dollars)(648)(5,961)*2 The main components of selling, general and administrative expenses are as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

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

13,567

12,993

119,395

Provision for bonuses

878

683

6,282

Retirement benefit expenses

499

618

5,685

Provision for directors' retirement benefits

66

68

629

Provision for directors' stock payment

41

30

281

Research and development expenses

10,11010,174

93,489

231

656

6,034

Salaries and wages

Provision of allowance for doubtful accounts*3 Research and development expenses included in general and administrative expenses are as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

(Millions of yen)
10,110(Thousands of U.S. dollars)
10,174

93,489*4 The breakdown of gain on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

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

Machinery, equipment andvehicles

24

3

32

Other

60

9

85

85

12

118

Total

－ 21 －

*5 The breakdown of loss on retirement of non-current assets is as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

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

Buildings and structures

27

9

89

Machinery, equipment andvehicles7773Construction in progress

-

24

225

Other

45

66

608

80

108

996

Total

*6 The breakdown of loss on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

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

Buildings and structures

8

-

-

Machinery, equipment andvehicles

0

0

1

Land

-

16

155

Other

-

0

6

9

17

163

Total

*7 Impairment loss
Fiscal year ended March 31, 2019
Location

Classification by use

Type of assets(Millions of yen)Georgia, U.S.A.

Assets planned tobe sold

Goodwill, Other(Intangible assets)

578

California, U.S.A.

Assets planned tobe sold

Machinery, equipment andvehicles

310

Business assets

Other (Property, plant andequipment), Buildings andstructures, Machinery,equipment and vehicles

79

Kanzaki-gun, Hyogo
Chuo-ku, Tokyoand others

Business assets

Machinery, equipment andvehicles, Construction inprogress, Other (Property,
plant and equipment, andIntangible assets)

46

Gotemba, Shizuoka

Business assets

Buildings and structures

10

Osaka, Osaka

Business assets

Machinery, equipment andvehicles5

Chiyoda-ku, Tokyo
Kawasaki, Kanagawa
Takasago, Hyogo
and others

Concerning assets planned to be sold of Georgia, U.S.A. and California, U.S.A., the book values
are written down to the net realizable value due to the decision to sell the assets accompanying thebusiness structure improvement of CHRISTIE Group, and the write-downs are recognized as a businessstructure improvement expense under extraordinary losses.
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 and－ 22 －

assets planned to be sold are grouped on an individual asset basis.
The book values of business assets are written down to zero or the net realizable values due to adecrease in the recoverability of the assets, and the write-downs are recorded as impairment loss in
extraordinary losses. The book values of assets planned to be sold are written down to the net
realizable values due to a decision to sell the assets, and the write-downs are recorded as
impairment loss in extraordinary losses. The net realizable values are based on the expected sales
prices.
* Breakdown of impairment loss by location is as follows:・Impairment loss of ¥578 million recognized for Georgia, U.S.A. includes ¥461 million for goodwill
and ¥116 million for other (intangible assets).
・Impairment loss of ¥310 million recognized for California, U.S.A. is for machinery, equipment andvehicles.
・Impairment loss of ¥79 million recognized for Chiyoda-ku, Tokyo, etc. includes ¥52 million forother (property, plant and equipment), ¥18 million for buildings and structures, and ¥9 million
for machinery, equipment and vehicles.
・Impairment loss of ¥46 million recognized for Kanzaki-gun, Hyogo, etc. includes ¥26 million formachinery, equipment and vehicles, ¥11 million for construction in progress, ¥5 million for other(property, plant and equipment), ¥1 million for other (intangible assets), and ¥1 million forbuildings and structures.
・Impairment loss of ¥10 million recognized for Gotemba, Shizuoka is for buildings and structures.
・Impairment loss of ¥5 million recognized for Osaka, Osaka is for machinery, equipment andvehicles.
Fiscal year ended March 31, 2020
Type of assets(Millions of yen)(Thousands of
U.S. dollars)

Location

Classification by use

California, U.S.A.

Assets planned tobe sold

Other (Intangible assets)

101

929

Higasiosaka, Osaka
Kanzaki-Gun,
Hyogo,
Osaka, Osaka

Business assets

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

28

259

Chiyoda-ku, Tokyo
Takasago, Hyogo
and others

Business assets

Other (Property, plant andequipment)

25

238

In principle, the Group’s business assets are grouped according to division or to whom assets arelent, assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets andassets planned to be sold are grouped on an individual asset basis.
The book values of business assets are written down to zero or the net realizable values due to adecrease in the recoverability of the assets, and the write-downs are recorded as impairment loss in
extraordinary losses. The book values of assets planned to be sold are written down to the net
realizable values due to a decision to sell the assets, and the write-downs are recorded as
impairment loss in extraordinary losses. The net realizable values are based on the expected sales
prices.
* Breakdown of impairment loss by location is as follows:・Impairment loss of \101 million ($929 thousand) recognized for California, U.S.A. is for other(intangible assets).
・Impairment loss of ¥28 million ($259 thousand) recognized for Higashiosaka, Osaka, etc. includes¥13 million ($122 thousand) for other (property, plant and equipment), ¥13 million ($120
thousand) for buildings and structures, and ¥1 million ($16 thousand) for machinery, equipment
and vehicles.

－ 23 －

・Impairment loss of \25 million ($238 thousand) recognized for Chiyoda-ku, Tokyo, etc. is forother (property, plant and equipment).
*8 Retirement benefit expenses
Fiscal year ended March 31, 2019
Not applicable.
Fiscal year ended March 31, 2020
Certain domestic consolidated subsidiaries applied the simplified method for calculating
retirement benefit obligations until the end of the previous fiscal year, but because of therevision of the retirement benefit plan due to reorganization in the lighting business, the numberof employees who are eligible following this calculation method exceeded 300. Therefore, we
switched to the principle method from the first quarter of the current fiscal year.
As a result of this change, net defined benefit liability increased by ¥543 million ($4,990
thousand) and we recorded extraordinary losses of ¥543 million ($4,990 thousand) as retirement
benefit expenses.
*9 Business structure improvement expenses
Fiscal year ended March 31, 2019
Business structure improvement expenses were incurred in implementing the business structure
improvement to maintain and improve the profitability of the Company’s businesses. The major
components in the breakdown of these expenses were ¥1,101 million of expenses for personnel
downsizing, etc. due to the restructuring of CHRISTIE Group, and ¥888 million of impairment loss
on goodwill and other non-current assets, etc. accompanying the disposal of unprofitable
operations.
Fiscal year ended March 31, 2020
Business structure improvement expenses were incurred in implementing the business structure
improvement to maintain and improve the profitability of the Company’s businesses. The major
components in the breakdown of these expenses were ¥924 million ($8,493 thousand) of expenses for
personnel downsizing, etc. due to the restructuring of CHRISTIE Group.
*10 Loss on temporary closure
Fiscal year ended March 31, 2019
Not applicable.
Fiscal year ended March 31, 2020
In response to requests from national governments regarding COVID-19, the Group has suspended
operations of factories and temporarily closed part of the visual image equipment business after
taking regulations in each country and prevention of the spread of infection into consideration.
As a result, fixed expenses (labor costs, depreciation, etc.) incurred during the period ofsuspension or closure are recorded as extraordinary losses due to closure of business, etc.

－ 24 －

(Consolidated Statement of Comprehensive Income)
Reclassification adjustments and income tax effect allocated to each component of othercomprehensive income are as follows:

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

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)(1,783)(12,213)

2,952(6,684)

27,129(61,420)(13,996)
4,195(3,731)
1,073(34,291)
9,863(9,801)(2,658)(24,427)

5
(7)

2
8

20
74

Income tax effect

(2)
0

10
(3)

94
(29)

Deferred gains or losses on hedges

(1)

7

65

1,623
142

(3,998)
3(36,739)
30

Income tax effect

1,765
-

(3,995)-(36,709)-

Foreign currency translation adjustment

1,765(3,995)(36,709)

(515)
501

(1,645)619(15,116)
5,689

Income tax effect

(14)
(11)

(1,025)299(9,426)
2,747

Remeasurements of defined benefit plans

(25)

(726)

(6,678)

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

1

(12)

(112)

1

(12)

(112)

(8,061)(7,385)(67,862)

Amount before income tax effect
Income tax effect
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges:
Amount arising during the year
Reclassification adjustments
Amount before income tax effectForeign currency translation adjustment:
Amount arising during the year
Reclassification adjustments
Amount before income tax effectRemeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect

Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income－ 25 －

(Consolidated Statement of Changes in Net Assets)
Fiscal year ended March 31, 2019
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2018

Increase

Decrease

Number ofshares as ofMarch 31, 2019

Shares issued:
Common shares
Total

139,628,721-

6,000,000

133,628,721

139,628,721-

6,000,000

133,628,721

11,866,293

1,780,494

6,005,700

7,641,087

11,866,293

1,780,494

6,005,700

7,641,087

Treasury shares
Common shares (Note)
Total(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (292,700 shares and 352,300 shares at the beginning and end of the current fiscal
year, respectively).
2. The increase of 1,780,494 shares of treasury shares is made up by an increase of 1,712,000
shares through market purchase, an increase of 65,300 shares held by the trust for the stock
remuneration plan for directors, and an increase of 3,194 shares by purchasing shares of lessthan standard unit.
3. The decrease of 6,005,700 shares of treasury shares is made up by a decrease of 6,000,000 shares
resulting from the retirement of treasury shares and a decrease of 5,700 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 28, 2018

Commonshares3,329

26March 31,2018

June 29,2018(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 28,2018 include ¥7 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.
(2) Dividends with the cut-off date in the fiscal year ended March 31, 2019 and the effective datein the fiscal year ended March 31, 2020

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Sourceofdividends

Dividends
per share(Yen)

Cut-off
date

Effective
date

Annual general
meeting of theshareholders on
June 27, 2019

Commonshares6,316

Retainedearnings

50

March 31,2019

June 28,2019(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 27,
2019 include ¥17 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.

－ 26 －

Fiscal year ended March 31, 2020
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2019

Increase

Number ofshares as ofMarch 31, 2020

Decrease

Shares issued:
Common shares
Total

133,628,721-

6,628,721

127,000,000

133,628,721-

6,628,721

127,000,000

7,641,087

5,510,467

6,670,571

6,480,983

7,641,087

5,510,467

6,670,571

6,480,983

Treasury shares
Common shares (Note)
Total(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (352,300 shares and 310,450 shares at the beginning and end of the current fiscal
year, respectively).
2. The increase of 5,510,467 shares of treasury shares is made up by an increase of 5,507,300
shares through market purchase and an increase of 3,167 shares by purchasing shares of less thanstandard unit.
3. The decrease of 6,670,571 shares of treasury shares is made up by a decrease of 6,628,721 shares
resulting from the retirement of treasury shares and a decrease of 41,850 shares due to issuancefrom the trust to eligible person according to the stock remuneration plan for directors.
2. Dividends(1) Dividends paid

Resolution

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

Dividends
per share(Yen)

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

Effective
date

Annual general
meeting of theshareholders
on June 27,
2019

Commonshares

6,316

58,04450

0.46

March 31,2019

June 28,2019(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 27,
2019 include ¥17 million ($161 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

－ 27 －

(2) Dividends with the cut-off date in the fiscal year ended March 31, 2020 and the effective datein the fiscal year ending March 31, 2021

Resolution

Type ofshares

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

Dividends
per share(Yen)

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

Effective
date

Retainedearnings

26

0.24

March 31,2020

June 29,2020

Annualgeneralmeeting of
theshareholders
on June 26,
2020

Commonshares3,141

28,866(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 26,
2020 include ¥8 million ($74 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

－ 28 －

(Consolidated Statement of Cash Flows)*1. Reconciliation between cash and cash equivalents at end of period and the amount on the
consolidated balance sheet
Fiscal year ended
March 31, 2019
(Millions of yen)
85,655

Cash and deposits
Time deposits with a maturity of morethan three months
Money management funds and others
included in securities
Cash and cash equivalents

Fiscal year ended
March 31, 2020
(Millions of yen)
60,679(Thousands of U.S. dollars)
557,561(11,202)(1,861)(17,106)

168

228

2,098

74,622

59,046

542,552*2. Major components of assets and liabilities of companies excluded from the scope of consolidation
due to sale of sharesFiscal year ended March 31, 2019
Information is omitted because of immateriality.
Fiscal year ended March 31, 2020
Information is omitted because of immateriality.
(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’s consolidated subsidiaries.
・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, 2019

As of March 31, 2020

Due within one year

(Millions of yen)
1,522(Millions of yen)
1,115

(Thousands of U.S. dollars)
10,249Due after one year

1,760

1,247

11,467

Total

3,282

2,363

21,716－ 29 －

(Financial Instruments)
1. Overview of financial instruments(1) Basic policy on treating financial instruments
The Group invests floating money and funds reserved for future business expansion mainly inhighly safe financial assets, according to the Group’s cash management plan. Method of fundraising is determined based upon the use of funds and financing environment. The Group utilizes
derivative transactions only to avoid 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 floating money and reserved funds. Investments in money held in trust isalso held for the purpose of investment of reserved funds. These investments are exposed tomarket risk. A part of securities, investment securities, and investments in money held in trust
are denominated in foreign currency, and they are exposed to foreign exchange risk; however, suchrisk is hedged by using forward foreign exchange contracts.
Notes and accounts payable – trade, which are operating payables, are mostly due within one
year. Some of them are denominated in foreign currencies and exposed to foreign exchange risk;
however, such risk is hedged by using forward foreign exchange contracts.
Short-term and long-term loans payable, which are made to obtain working capital, are mostly
due within three years after the end of the current fiscal year. While floating-rate loans
payable are exposed to interest rate risk, certain long-term floating-rate loans payable arehedged by using interest rate swaps.
As for derivative transactions, forward foreign exchange contracts and currency swaps areentered 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. In addition, interest rate swaps are enteredinto for the purpose of hedging interest rate fluctuation risk deriving from interest payments
for loans payable. 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, (5) 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 credibility 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 andmitigate 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 samemanner 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 in debt
securities with high credit ratings.
Derivative transactions are entered into only with highly rated financial institutions inorder to mitigate counterparty risk.
As of the end of the current fiscal year, the maximum credit risk amount is presented as theconsolidated balance sheet amounts of financial assets that are exposed to credit risk.
2) Management of market risk (fluctuation risk of foreign currency exchange and interest rates,
etc.)
The Company utilizes forward foreign exchange contracts and currency swaps for foreignexchange risk identified by currency and by month in relation to operating receivables and－ 30 －

payables denominated in foreign currencies, loans payable denominated in foreign currencies andsecurities denominated in foreign currencies in accordance with the internal rules for market
risk management. Some of the Company’s consolidated subsidiaries also manage market risk in thesame 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 fromeach department as well as by maintaining certain liquidity.
(4) Supplementary explanation concerning fair values of financial instruments, etc.
The notional amounts of derivative transactions in “2. Fair value of financial instruments” donot, in themselves, indicate the market risk associated with the derivative transactions.

－ 31 －

2. Fair value of financial instruments
The table below presents the amounts of financial instruments recorded in the consolidatedbalance sheet and their fair values, as well as their differences. Financial instruments whose fairvalues cannot be reliably determined are not included.
As of March 31, 2019
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

(1) Cash and deposits

85,65585,655-(2) Notes and accounts receivable-trade

39,456

Allowance for doubtful accounts (*1)

(1,607)
37,84837,848-

Trading securities

2,079

2,079

-

Available-for-sale securities

51,13951,139-(3) Securities and investment securities(4) Investments in money held in trust

2,314

2,314

-

179,038

179,038-(1) Notes and accounts payable-trade21,665

21,665-(2) Short-term loans payable

10,00810,008-Assets, total(3) Current portion of long-term loans payable

8,520

8,582

61

(4) Long-term loans payable

10,41010,407(3)50,60450,66358

for which hedge accounting is not applied

275

275

-

for which hedge accounting is applied

(25)

(25)

-

Liabilities, total
Derivative transactions (*2)(*1): The deducted amount includes general and specific allowance for doubtful accounts relating
to notes and accounts receivable – trade.
(*2): Assets and liabilities arising from derivative transactions are stated in the net amount.
The figures in brackets indicate net liabilities.

－ 32 －

As of March 31, 2020
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

(1) Cash and deposits

60,67960,679-(2) Notes and accounts receivable-trade40,326

Allowance for doubtful accounts (*1)

(1,877)38,449-38,449(3) Securities and investment securities
Trading securities

1,394

1,394

-

Available-for-sale securities

50,92450,924-(4) Investments in money held in trust

2,269

2,269

-

153,717

153,717-(1) Notes and accounts payable-trade

18,73018,730-(2) Short-term loans payable

3,110

3,110

-

(3) Current portion of long-term loans payable

6,298

6,446

147

(4) Long-term loans payable

12,847

13,139292

40,98741,427440

for which hedge accounting is not applied

63

63

-

for which hedge accounting is applied

(14)

(14)

-

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

Fair value(Thousands of U.S. dollars)

Assets, total

Liabilities, total
Derivative transactions (*2)

As of March 31, 2020

(1) Cash and deposits

557,561(2) Notes and accounts receivable-trade

370,547

Allowance for doubtful accounts (*1)

(17,250)

Difference(Thousands of U.S. dollars)

557,561-

353,297353,297-

Trading securities

12,812

12,812-Available-for-sale securities

467,926

467,926-(3) Securities and investment securities(4) Investments in money held in trust

20,85820,858-1,412,456

1,412,456-(1) Notes and accounts payable-trade172,106

172,106-(2) Short-term loans payable

28,57828,578-Assets, total(3) Current portion of long-term loans payable

57,87759,2371,359(4) Long-term loans payable

118,052

120,7372,685

376,615

380,659

4,044

Liabilities, total
Derivative transactions (*2)
for which hedge accounting is not applied

579

579

-

for which hedge accounting is applied

(135)

(135)

-

(*1): The deducted amount includes general and specific allowance for doubtful accounts relating
to notes and accounts receivable – trade.
(*2): Assets and liabilities arising from derivative transactions are stated in the net amount.
The figures in brackets indicate net liabilities.

－ 33 －

(Notes) 1. Measurement method of fair values of financial instruments and matters concerning securities
and derivative transactions
Assets(1) Cash and deposits and (2) Notes and accounts receivable – trade
The fair value of these accounts approximates their book value because they are settled ina short period of time. Thus, the fair value is presented as their book value.
(3) Securities and investment securities
The fair value of equity securities is based on market prices at the stock exchange, andthat of debt securities is obtained from financial institutions. Please refer to Note
“Securities and Investment Securities” for notes on securities by holding purpose.
(4) Investments in money held in trust
The fair value is based upon the price obtained from financial institutions.
Liabilities(1) Notes and accounts payable – trade and (2) Short-term loans payable
The fair value of these accounts approximates their book value because they are settled ina short period of time. Thus, the fair value is presented as their book value.
(3) Current portion of long-term loans payable and (4) Long-term loans payable
The fair value of long-term loans payable is measured by discounting the total ofprincipal and interest at an assumed rate for similar new borrowings.
Derivative transactions
The fair value is measured based upon the prices obtained from financial institutions.
Please refer to Note “Derivative Transactions” for notes on derivative transactions bytype of transaction.
2. Financial instruments whose fair values cannot be reliably determinedClassification

Consolidated balance
sheet amount(As of March 31, 2019)(Millions of yen)

Unlisted shares andinvestments in business
partnerships with limited
liability

Consolidated balance sheet amount(As of March 31, 2020)(Millions of yen)

2,191

(Thousands of U.S. dollars)

2,182

20,052

The above financial instruments are not included in “(3) Securities and investment securities” because
their market prices are not available and their fair values cannot be reliably determined.
3. Redemption schedule for monetary receivables and securities with maturity dates after the
consolidated balance sheet date
As of March 31, 2019
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

85,655---

Notes and accounts
receivable-trade39,322

133

-

-

-

-

-

-

744

7,145

983

9,733

125,723

7,279

983

9,733

Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds(2) Corporate bonds
Total－ 34 －

As of March 31, 2020
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(Millions of yen)ten years(Millions of yen)

Cash and deposits

60,679---Notes and accounts
receivable-trade40,270

56

-

-

-

-

-

-

(2) Corporate bonds

1,531

8,236

1,188

1,741

Total

102,480

8,293

1,188

1,741

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)

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

As of March 31, 2020
Due within one year
(Thousands of
U.S. dollars)

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

Cash and deposits

557,561---

Notes and accounts
receivable-trade

370,027

520

-

-

-

-

-

-

(2) Corporate bonds

14,06875,685

10,91816,000

Total

941,657

76,206

10,91816,000

Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds－ 35 －

4. 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, 2019
Due within one year
(Millions of yen)

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

Due after two years
and up to threeyears(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)

Short-term loans payable

10,008----Long-term loans payable

8,520

6,137

3,828

20

424

Total

18,529

6,137

3,828

20

424

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

Due after two years
and up to threeyears(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)

As of March 31, 2020
Due within one year
(Millions of yen)
Short-term loans payable

3,110

-

-

-

-

Long-term loans payable

6,298

3,548

8,874

424

-

Total

9,409

3,548

8,874

424

-

As of March 31, 2020
Due within one year
(Thousands of U.S. dollars)

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

Short-term loans payable

28,578----Long-term loans payable

57,87732,60881,547

3,895

-

Total

86,45632,60881,5473,895-－ 36 －

(Securities and Investment Securities)
1. Trading securities
As of March 31, 2019
(Millions of yen)
Valuation difference included in
profit or loss

As of March 31, 2020
(Millions of yen)(Thousands of U.S. dollars)

(45)

(351)

(3,230)Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

29,341

7,458

21,883

-

-

-

1,666

1,622

44

1,112

1,042

70

32,12010,122

21,997

2,485

2,717

(232)

-

-

-

16,365

17,151

(786)

-

-

-

18,85019,869(1,019)50,971

29,992

20,9782. Available-for-sale securities
As of March 31, 2019(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities
whose carrying
value exceeds
theiracquisition
costs(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities
whose carrying
value does notexceed theiracquisition
costs(3) Other
Subtotal
Total(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on
the consolidated balance sheet: ¥2,191 million) are not included in the above table of “Availablefor-sale securities” as their market prices are not available and their fair values cannot be
reliably determined.

－ 37 －

As of March 31, 2020
Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

27,771

8,945

18,825

-

-

-

4,292

4,215

76

1,058

761

296

33,121

13,92319,198

518

1,007

(489)

-

-

-

17,056

18,316(1,260)(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities
whose carrying
value exceeds
theiracquisition
costs(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities
whose carrying
value does notexceed theiracquisition
costs(3) Other
Subtotal
Total

-

-

-

17,574

19,324(1,750)50,69633,247

17,448

As of March 31, 2020
Type(1) Shares

Carrying value(Thousands of
U.S. dollars)

Acquisition cost(Thousands of
U.S. dollars)

Difference(Thousands of
U.S. dollars)

255,182

82,198172,983---

39,43838,736

701

9,723

7,000

2,723

304,343

127,935

176,408

4,762

9,260

(4,497)---

156,722

168,305(11,583)(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities
whose carrying
value exceeds
theiracquisition
costs(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities
whose carrying
value does notexceed theiracquisition
costs(3) Other
Subtotal
Total

-

-

-

161,484

177,566(16,081)465,828

305,501

160,327(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on
the consolidated balance sheet: ¥2,182 million ($20,052 thousand)) are not included in the abovetable of “Available-for-sale securities” as their market prices are not available and their fairvalues cannot be reliably determined.

－ 38 －

3. Available-for-sale securities soldFiscal year ended March 31, 2019
Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

12,957

12,201

-

-

-

-

169

-

60

-

-

-

13,126

12,20160

Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

6,609

6,312

-

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

-

-

-

-

-

-

(3) Other

-

-

-

6,609

6,312

-

Amount sold(Thousands of U.S. dollars)

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

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

60,73158,000-(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds

-

-

-

-

-

-

(3) Other---

60,73158,000-Type

Amount sold(Millions of yen)

(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds(3) Other
Total

Fiscal year ended March 31, 2020
Type

Amount sold(Millions of yen)

(1) Shares

Total
Fiscal year ended March 31, 2020
Type(1) Shares

Total

4. Impairment loss recognized on securities
Fiscal year ended March 31, 2019
Not applicable.
Fiscal year ended March 31, 2020
For the fiscal year ended March 31, 2020, impairment loss of ¥86 million ($794 thousand) was
recognized for securities (¥53 million ($495 thousand) for shares of associates and ¥32 million($299 thousand) for available-for-sale securities).
Impairment loss is recognized for all the securities whose fair value at the end of the fiscal
year declines by 50% or more of their acquisition cost. It is also recognized when the fair value
declines by approximately 30% to 50% of the acquisition cost at the amount deemed necessary
considering the recoverability of the fair value of the security.

－ 39 －

(Derivative Transactions)
1. Derivative transactions for which hedge accounting is not applied
Currency-related transactions:
As of March 31, 2019
Classification

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

USD

110

-

(0)

(0)

EUR

154

-

3

3

USD

88

-

(0)

(0)

JPY

825

-

6

6

Receive JPY/ Pay USD

3,070

-

277

277

Total

4,249

-

287

287

Type of transaction
Forward foreignexchange contracts:
Sell:

Bilateraltransactions

Buy:

Currency swaps:(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2020
Classification

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

USD

441

-

6

6

EUR

153

-

9

9

USD

83

-

2

2

JPY

1,506

-

52

52

-

-

-

-

2,184

-

72

72

Type of transaction
Forward foreignexchange contracts:
Sell:

Bilateraltransactions

Buy:

Currency swaps:
Receive JPY/ Pay USD
Total－ 40 －

As of March 31, 2020
Classification

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

4,055

-

61

61

EUR

1,408

-

89

89

USD

770

-

26

26

JPY

13,840

-

485

485

-

-

-

-

20,075

-

663

663

Type of transaction
Forward foreignexchange contracts:
Sell:

Bilateraltransactions

Buy:

Currency swaps:
Receive JPY/ Pay USD
Total(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
Interest-rate-related transactions:
As of March 31, 2019
Classification

Type of transaction

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

Bilateraltransactions

Interest rate swaps:
Receive floating/
504
484
(12)
(12)
Pay fixed(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2020

Classification
Bilateraltransactions

Type of transaction
Interest rate swaps:
Receive floating/
Pay fixed

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

484

464

(9)

(9)

As of March 31, 2020
Classification

Type of transaction

Notional amounts(Thousands of
U.S. dollars)

Bilateraltransactions

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)Interest rate swaps:
Receive floating/
4,447
4,263
(83)
(83)
Pay fixed(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.

－ 41 －

2. Derivative transactions for which hedge accounting is applied
Currency-related transactions:
As of March 31, 2019
Hedge accounting

Designated hedge
accounting of
forward foreignexchange
contracts, etc.

Type oftransaction

Hedged item

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)Accounts
receivable –
trade

5

－

0

Forward foreignexchange
contracts:
Sell:

USD

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2020
Not applicable.
Interest-rate-related transactions:
As of March 31, 2019
Hedge accounting

Deferred hedge
accounting

Type oftransaction
Interest rate
swaps:
Receivefloating/ Pay
fixed

Hedged item

Long-termloans payable

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)

3,450

3,450

(25)

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2020
Hedge accounting

Deferred hedge
accounting

Type oftransaction
Interest rate
swaps:
Receivefloating/ Pay
fixed

Hedged item

Long-termloans payable

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)

3,450

3,450

(14)

As of March 31, 2020
Hedge accounting

Deferred hedge
accounting

Type oftransaction
Interest rate
swaps:
Receivefloating/ Pay
fixed

Hedged item

Long-termloans payable

Notional amounts(Thousands of
U.S. dollars)

31,700Maturing after
one year(Thousands of
U.S. dollars)

31,700Estimated fairvalue
(Thousands of
U.S. dollars)(135)(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.

－ 42 －

(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
as a result of the setup of retirement benefit trusts, the Company provides lump-sum benefits basedon salaries and length of service.
Since the end of the current fiscal year, certain consolidated subsidiaries have changed thecalculation method of the retirement benefit obligations from the simplified method to the principle
method. This change was made in order to improve the accuracy of the calculation of the amount of
retirement benefit obligations and to enable more appropriate periodic accounting of profit and lossof retirement benefit expenses, following an increase in the number of employees.
Under the defined benefit corporate pension plans and the lump-sum retirement benefit plans forcertain consolidated subsidiaries, net defined benefit liability and retirement benefit expenses arecalculated by the simplified method.
2. Defined benefit plan
(1) Reconciliation between retirement benefit obligations at beginning of period and end of period
Fiscal year ended
March 31, 2019
Retirement benefit obligation at beginning of period
Current service costs
Interest costs(Millions of yen)
28,629Fiscal year ended March 31, 2020
(Millions of yen)
21,858(Thousands of U.S. dollars)
200,851

1,046

1,138

10,465

158

146

1,349

Actuarial gains and losses arising during period

408

54

499

Retirement benefits paid

(449)

(600)

(5,513)

-

92

852

(7,937)

-

-

-

299

2,750

-

543

4,990

2

(10)

(98)

21,85823,523

216,146

Past service costs
Reduction amount associated with transfer
of benefit obligation relating toemployees' pension fundAmount transferred due to change from
simplified accounting method to principle
methodExpenses associated with change from
simplified accounting method to principle
methodEffect of exchange rate changes
Retirement benefit obligation at end of period－ 43 －

(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, 2019
Plan assets at beginning of period(Millions of yen)
30,109Fiscal year ended March 31, 2020
(Millions of yen)
22,793(Thousands of U.S. dollars)
209,439

Expected return on plan assets

322

326

3,002

Actuarial gains and losses arising during period(107)(1,497)(13,756)

Contributions from employer

822

838

7,707

Retirement benefits paid

(414)

(527)

(4,842)(7,942)--

Reduction amount associated with transfer
of benefit obligation relating toemployees' pension fund
Effect of exchange rate changes
Plan assets at end of period

3

(9)

(89)

22,79321,924201,460(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, 2019
Net defined benefit liability at beginning of period(Millions of yen)
617

Fiscal year ended March 31, 2020
(Millions of yen)729

(Thousands of U.S. dollars)
6,704

Retirement benefit expenses

157

160

1,472

Retirement benefits paid

(27)

(24)

(228)

Contribution to plans

(9)

-

-

-

(268)

(2,468)-(299)(2,750)

(6)

(11)

(103)

Amount transferred to long-term accrualand accrual
Amounts transferred due to change from
simplified accounting method to principle
methodOther
Effect of exchange rate changes
Net defined benefit liability at end of period

(1)

(4)

(43)

729

281

2,583

(Note) The amounts of debt that has been confirmed has been transferred from “net defined benefit
liability” to “long-term accrual” and “accrual” as a result of the absorption-type merger of
certain consolidated subsidiaries at April 1, 2020.

－ 44 －

(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, 2019

As of March 31, 2020

(Millions of yen)
21,858(Millions of yen)
23,523(Thousands of U.S. dollars)
216,146(22,793)(21,924)(201,460)

(934)

1,598

14,685Retirement benefit obligation for unfunded plans

729

281

2,583

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

(204)

1,879

17,269Net defined benefit liability

3,186

3,829

35,185Net defined benefit asset(3,391)(1,949)(17,916)

(204)

1,879

17,269Retirement benefit obligation for funded plans
Plan assets

Net balance of liability and asset
recognized on the consolidated balance sheet(5) Retirement benefit expenses and their breakdown
Fiscal year ended
March 31, 2019
Current service costs(Millions of yen)
1,046

Fiscal year ended March 31, 2020
(Millions of yen)
1,138

(Thousands of U.S. dollars)
10,465Interest costs

158

146

1,349

Expected return on plan assets

(322)

(326)

(3,002)

Amortization of actuarial gains and losses

506

624

5,740

Amortization of past service costs

(5)

(6)

(58)

Expenses associated with change from
simplified accounting method to principle
method

-

543

4,990

Other

(96)

(76)

(700)

Retirement benefit expenses applying
simplified method

157

160

1,472

1,444

2,204

20,257Retirement benefit expenses under defined
benefit plans(Note) In addition to the above, for the fiscal year ended March 31, 2019, ¥1,101 million in extra
retirement payments and other was recorded as part of business structure improvement expenses
under extraordinary losses, and ¥40 million was recorded as loss on revision of retirement benefit
plan in extraordinary losses following the revision of the lump-sum retirement benefit plans
relating to employees of certain consolidated subsidiaries.
In addition to the above, for the fiscal year ended March 31, 2020, ¥924 million ($8,493 thousand)in extra retirement payments and other was recorded as part of business structure improvement
expenses under extraordinary losses.

－ 45 －

(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, 2019
Past service costs(Millions of yen)
5

Actuarial gains and losses
Total

Fiscal year ended March 31, 2020
(Millions of yen)
99

(Thousands of U.S. dollars)
911

8

926

8,515

14

1,025

9,426

(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, 2019
(Millions of yen)(173)

Unrecognized past service costs
Unrecognized actuarial gains and losses
Total

As of March 31, 2020
(Millions of yen)(74)

(Thousands of U.S. dollars)
(683)

5,189

6,117

56,208

5,015

6,042

55,524(8) Plan assets
1) Breakdown of plan assets
Percentage of each main category to total plan assets is as follows:
As of March 31, 2019

As of March 31, 2020

Bonds

36%

35%

Securities

20%

27%

Cash and deposits

7%

6%

Alternative investments (Note 1)

24%

26%

Other

13%

6%

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 8% and 6% that are set up for a
corporate pension plan as of March 31, 2019 and 2020, 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, 2019

Fiscal year ended March 31, 2020

0.4～0.6%

0.5～0.6%

Long-term expected rate of return

1.5%

1.5%

Expected rate of salary increase

3.0%

2.9%

Discount rate

3. Defined contribution plan
The required contribution to the defined contribution plan amounts to \560 million and \509
million ($4,682 thousand) for the fiscal years ended March 31, 2019 and 2020, respectively.

－ 46 －(Tax Effect Accounting)
1. Breakdown of major reason for deferred tax assets and deferred tax liabilities
As of March 31, 2019
(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
carried forward (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-forsale securities
Depreciation
Retained earnings of subsidiaries andassociates
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)

As of March 31, 2020
(Millions of yen)(Thousands of U.S. dollars)

4,702
355
611
451
867

4,424
390
589
203
1,163

40,652
3,588
5,421
1,871
10,687

331

308

2,834

1,710
744
672
744

1,307
780
480
371

12,017
7,168
4,414
3,409

740

739

6,793

3,081
15,014

3,732
14,49134,300133,159(4,199)(3,902)(35,858)(3,869)(5,009)(46,032)(8,069)6,945(8,912)
5,579(81,891)
51,268

(462)

(43)

(400)

(6,744)(5,795)(53,250)

(585)

(218)

(2,009)(1,433)(1,324)(12,172)(206)(9,433)(2,488)(97)(7,480)(1,900)(899)(68,732)(17,464)(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, 2019
Due after
Due after
Due after
Due after
one year and two years
three years four years
Due after
Total
up to twoand up toand up toand up to
five years
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

36

164

113

410

126

3,851

4,702

8

86

113

410

126

3,454

4,199

27

78

-

-

-

396

502

－ 47 －

As of March 31, 2020
Due after
Due after
Due after
Due after
one year and two years
three years four years
Due after
Total
up to twoand up toand up toand up to
five years
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

135

118

404

118

331

3,315

4,424

70

104

404

118

331

2,873

3,902

65

13

-

-

-

442

521

Due after
Due after
two years
three years
and up toand up tothree years four years(Thousands(Thousandsof U.S.
of U.S.
dollars)
dollars)

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

As of March 31, 2020
Due within
one year(Thousandsof U.S.
dollars)

Due after
one year and
up to twoyears
(Thousandsof U.S.
dollars)

Due after
five years

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

Tax losses
carried
1,248
1,085
3,712
1,093
3,044
30,468forward (*1)
Valuation
645
959
3,712
1,093
3,044
26,403
allowance
Deferred tax
602
126
4,065
assets(*1) The amounts of tax losses carried forward are multiplied by the statutory tax rate.

40,65235,8584,794

2. Reconciliation of significant difference between statutory tax rate and effective tax rate after
application of tax effect accounting
As of March 31, 2019 As of March 31, 2020
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)
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
Decrease of deferred tax assets at fiscal
year-end by the change of tax rate
Transfer pricing taxation-related
Other
Effective tax rate after application of tax
effect accounting

30.6%

30.6%

7.0

6.1

(0.7)

(3.6)

0.6

3.3

(2.5)

(4.6)

(1.5)

(2.7)

1.5

1.2

0.0

0.1

3.8

2.5

0.9

-

4.2
1.0

(2.1)
0.4

44.8

31.2

－ 48 －

(Segment Information, etc.)
Segment information
1. Summary of reportable segments
The Company defines a reportable segment as a component of the Company for which discrete
financial information is available and whose operating results are regularly reviewed by the Boardof Directors to assess its business performance and make decisions about resources to be allocatedto the segment.
The Company has a division system based on product type and similarity in sales market, etc., andeach division develops and implements comprehensive domestic and overseas strategies for its
development, manufacturing and sales of products and service, and engages in its business activities
globally.
Thus, reportable segments of the Company are divided into two categories based on product type andsales market.
“Light sources business” conducts manufacturing and sales of halogen lamps and discharge lamps,
etc.
“Equipment business” conducts manufacturing and sales of optical equipment and visual image
equipment, etc.
2. Methods of determining the amounts of net sales, profit or loss, assets, liabilities, and otheritems by reportable segment
Accounting policies for business segment reported are generally consistent with those given in“Significant Matters Forming the Basis of Preparation of Consolidated Financial Statements.”
Segment profit presents the operating profit of the segment.
Intersegment sales and transfers are recognized based on the market price.
3. Information about net sales, segment profit or loss, assets, liabilities and other items byreportable segment
Fiscal year ended March 31, 2019
(Millions of yen)
Eliminations
Amounts on
Reportable segment
Otheror
consolidatedLightbusinesses
Total
unallocatedfinancial
Equipment
sources
Total(Note 1)amountsstatements
businessbusiness(Note 2)
(Note 3)
Net sales
Sales to external customers
Intersegment sales or transfers

67,193653

94,641
63

161,834
716

3,303
52

165,138
769(769)

165,138-

Total
Segment profit (loss)
Segment assets

67,8478,367
111,089

94,704(300)
125,052

162,551
8,067
236,141

3,355
100
46,728

165,9078,168
282,869(769)
349
23,758165,1388,517
306,628

Other items:
Depreciation
3,121
3,615
6,737
38
6,775
6,775
Amortization of goodwill
423
712
1,135
1,135
1,135
Investment in associates
under equity method
Increase in property,
plant and equipment and
2,508
4,518
7,026
1,435
8,462
8,462
intangible assets (Note 4)(Notes) 1. “Other businesses” represents business segments that are not included in other reportablesegments and other revenue-generating business activities, including industrial machinery andfund management activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to ¥349 million,
include elimination of intersegment transactions totaling ¥165 million.
(2) Eliminations or unallocated amounts of segment assets, amounting to ¥23,758 million, include
elimination of intersegment receivables and payables totaling ¥(8,435) million and corporate－ 49 －

assets not allocable to any reportable segment or other revenue-generating businessactivities totaling ¥32,354 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.

－ 50 －

Fiscal year ended March 31, 2020
Reportable segment

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Segment assets
Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property,
plant and equipment andintangible assets(Note 4)

Otherbusinesses(Note 1)

(Millions of yen)
Eliminations
Amounts onorconsolidated
unallocatedfinancialamountsstatements(Note 2)
(Note 3)Light
sourcesbusiness

Equipment
business

58,599108

97,046
83

155,645
192

3,363
31

159,009223(223)

159,009-58,707
6,061
88,543

97,130316
117,738

155,838
6,377
206,2813,394
30
56,160159,233
6,408
262,441(223)
251
12,462

159,009
6,659
274,904

3,044
284

4,098
351

7,142
636

39
-

7,182
636

-

7,182
636

-

273

273

-

273

-

273

3,489

4,456

7,945

324

8,270

-

8,270

Total

Total

Fiscal year ended March 31, 2020
Reportable segment

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Segment assets
Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property,
plant and equipment andintangible assets(Note 4)

Otherbusinesses(Note 1)(Thousands of U.S. dollars)Eliminations
Amounts onorconsolidated
Total
unallocatedfinancialamountsstatements(Note 2)
(Note 3)Light
sourcesbusiness

Equipment
business

Total

538,445996

891,728771

1,430,173
1,768

30,905289

1,461,079
2,057- 1,461,079(2,057)-539,442
55,698813,591

892,499
2,903
1,081,854

1,431,941
58,602
1,895,446

31,194280
516,036

1,463,136
58,8832,411,482(2,057) 1,461,079
2,307
61,190114,517 2,526,000

27,9762,614

37,6553,231

65,632
5,846

361
-

65,993
5,846-

65,993
5,846

-

2,511

2,511

-

2,511

-

2,511

32,06340,94873,011

2,981

75,993-75,993(Notes) 1. “Other businesses” represents business segments that are not included in other reportablesegments and other revenue-generating business activities, including industrial machinery andfund management activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit, amounting to \251 million ($2,307
thousand), include elimination of intersegment transactions totaling \156 million ($1,440
thousand).
(2) Eliminations or unallocated amounts of segment assets, amounting to \12,462 million($114,517 thousand), include elimination of intersegment receivables and payables totaling¥(9,683) million ($(88,975) thousand) and corporate assets not allocable to any reportablesegment or other revenue-generating business activities totaling ¥22,333 million ($205,210
thousand) that consists primarily of surplus funds (cash and securities) and long-term
investments (investment securities), etc.
3. Segment profit is reconciled to operating profit on the consolidated statement of income.

－ 51 －

4. The increase in long-term prepaid expense is included in increases in property, plant andequipment and intangible assets.
Related information
Fiscal year ended March 31, 2019
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.
2. Information by geographic area
(1) Net sales(Millions of yen)
North America
Asia
Japan
EuropeOther areas
Total
U.S.A.
Other
China
Other
36,22938,681
2,166
16,14842,06528,0581,787
165,138(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
28,454

North America
U.S.A.
Canada7,369
2,650

Europe
1,329

Asia
3,234

Other areas

Total

13

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

－ 52 －

43,050Fiscal year ended March 31, 2020
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
39,655

North America
U.S.A.
Other
33,0162,399

Asia

EuropeChina
34,811

14,972

Other
31,202Other areas
2,951

Total
159,009(Thousands of U.S. dollars)Japan
364,377

North America
U.S.A.
Other
303,374
22,047

Asia

EuropeChina
319,867

137,578

Other
286,708

Other areas
27,123

Total
1,461,079(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
30,516

North America
U.S.A.
Canada7,099
2,026

Europe

Asia

1,279

Other areas

3,314

Total
6

44,242(Thousands of U.S. dollars)Japan
280,403

North America
U.S.A.
Canada65,23818,624

EuropeAsia

11,754

Other areas

30,456

Total

55

406,532

3. Information by significant customer
Information by significant customer 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, 2019
(Millions of yen)
Reportable segment
Eliminations or
OtherunallocatedTotal
Light sources
Equipment
businesses
Totalamountsbusinessbusiness
Impairment loss
46
983
1,029
1,029
(Note) Of the impairment losses relating to the equipment business segment, ¥888 million was recorded in
the consolidated statement of income as part of business structure improvement expenses.
Fiscal year ended March 31, 2020
(Millions of yen)

Impairment loss

Reportable segment
Light sources
Equipment
businessbusiness
28
127

Total
155

－ 53 －

Eliminations orunallocatedamounts

Otherbusinesses
-

-

Total
155

Fiscal year ended March 31, 2020
(Thousands of U.S. dollars)

Impairment loss

Reportable segment
Light sources
Equipment
businessbusiness259
1,167

Eliminations orunallocatedamounts

Otherbusinesses

Total
1,427

-

-

Total
1,427

Information on amortization and unamortized balance of goodwill by reportable segment
Fiscal year ended March 31, 2019
(Millions of yen)Light sourcesbusiness

Reportable segment
Equipment
business

Eliminations orunallocatedamounts

Otherbusinesses

Total

Total

Amortized forthe year

423

712

1,135

-

-

1,135

Balance

630

740

1,370

-

-

1,370

Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segment
Light sources
Equipment
businessbusiness

Eliminations orunallocatedamounts

Otherbusinesses

Total

Total

Amortized forthe year

284

351

636

-

-

636

Balance

307

390

698

-

-

698

Fiscal year ended March 31, 2020
(Thousands of U.S. dollars)
Light sourcesbusiness

Reportable segment
Equipment
business

Total

Eliminations orunallocatedamounts

Otherbusinesses

Total

Amortized forthe year

2,614

3,231

5,846

-

-

5,846

Balance

2,825

3,590

6,415

-

-

6,415

Information on gain on negative goodwill by reportable segment
Fiscal year ended March 31, 2019
Not applicable.
Fiscal year ended March 31, 2020
Not applicable.

－ 54 －

Related party information
Fiscal year ended March 31, 2019
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
Fiscal year ended March 31, 2020
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, 2019
Net assets per share¥1,691.45
Basic earnings per share¥88.85
Diluted earnings per share is
not presented since no potential
shares exist.

Fiscal year ended March 31, 2020
Net assets per share¥1,664.60
Basic earnings per share¥73.25
Diluted earnings per share is
not presented since no potential
shares exist.

Net assets per share$15.29Basic earnings per share$0.67
Diluted earnings per share is
not presented since no potential
shares exist.

(Notes) 1. The basis used for calculating basic earnings per share is as follows:
Fiscal year ended
March 31, 2019
(Millions of yen)
Profit attributable to owners of theparentFiscal year ended March 31, 2020
(Millions of yen)(Thousands of U.S. dollars)

11,326

8,967

82,401---

Profit attributable to owners of theparent attributable to common shares

11,326

8,967

82,401

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

127,466,615

122,432,099

122,432,099

Profit not attributable to commonshareholders

2. The Company’s shares held by the trust for the stock remuneration plan for directors arerecorded as treasury shares in shareholders’ equity which are deducted from the total numberof shares issued at the balance sheet date for the purpose of calculating net assets per share(352,300 shares and 310,450 shares as of March 31, 2019 and 2020, 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 (328,775 shares and 323,989 shares for the fiscal years ended March 31,
2019 and 2020, respectively).

－ 55 －

(Subsequent Events)
Not applicable.

－ 56 －

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

Classification

Balance atBalance at
beginning
Balance 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

Short-term loans payable

10,008

3,110

91,96728,5780.4-

Current portion of longterm loans payable

8,520

6,298

78,28957,877

2.6-

Current portion of leaseobligations

91

88

840

811

0.0

-

Long-term loans payable(excluding current portion)

10,41012,84795,657118,052

1.7

From 2021
to 2023

Lease obligations(excluding current portion)

166

72

1,532

667

0.0

From 2021
to 2024

29,19722,417268,287

205,987

-

-

Total

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

Lease obligations

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

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

3,548

8,874

424

-

62

7

1

-

Due after one year
and up to two years(Thousands of U.S. dollars)Long-term loans
payableDue after two years
and up to three years(Millions of yen)

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)

32,60881,547

3,895

-

576

73

17

-

Annexed detailed schedule of asset retirement obligations
Information is omitted because the amounts of asset retirement obligations at the beginning andthe end 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.

－ 57 －

(2) Other Information
Quarterly information for the fiscal year ended March 31, 2020
First three months

First six months

First nine months

Fiscal year ended
March 31, 2020

Net sales (Millions of yen)

38,90782,005120,063

159,009

Profit before income
taxes (Millions of yen)

2,158

4,948

12,781

12,984

Profit attributable toowners of the parent(Millions of yen)

1,253

3,025

8,821

8,967

Basic earnings per share (Yen)

10.02

24.41

71.71

73.25

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

Second quarter

10.02

14.43

Third quarter

Fourth quarter

47.87

1.22

Quarterly information for the fiscal year ended March 31, 2020
First three months

First six months

First nine months

Fiscal year ended
March 31, 2020

Net sales(Thousands of U.S. dollars)

357,511753,518

1,103,219

1,461,079

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

19,83345,469117,440

119,305

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

11,515

27,797

81,05382,401

Basic earnings per share(U.S. dollars)

0.09

0.22

0.65

0.67

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

Second quarter

0.09

0.13

－ 58 －

Third quarter
0.43

Fourth quarter0.01