AICHI CORPORATION
Annual Securities Report(English Translation)

March 31, 2024

5. Financial Information
1. Basis for Preparation of Consolidated and Non-consolidated Financial Statements(1) The consolidated financial statements of AICHI CORPORATION (the “Company”) are prepared in accordancewith the “Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements”(Ministry of Finance Order No. 28 of 1976).
(2) The non-consolidated financial statements of the Company are prepared in accordance with the “Regulation on
Terminology, Forms, and Preparation Methods of Financial Statements” (Ministry of Finance Order No. 59 of
1963; hereinafter the “Regulation on Financial Statements”).
The Company falls under the company allowed to file specified financial statements and prepares its nonconsolidated financial statements pursuant to the provision of Article 127 of the Regulation on Financial Statements.
2. Audit Certificate
The Company’s consolidated and non-consolidated financial statements for the fiscal year ended March 31, 2024 wereaudited by PricewaterhouseCoopers Japan LLC, in accordance with the provisions of Article 193-2, Paragraph 1 of the
Financial Instruments and Exchange Act.
PricewaterhouseCoopers Aarata LLC merged with PricewaterhouseCoopers Kyoto, and changed its name toPricewaterhouseCoopers Japan LLC on December 1, 2023.
3. Special Measures to Ensure the Appropriateness of Consolidated Financial Statements, etc.
The Company has taken special measures to ensure the appropriateness of consolidated financial statements, etc.
Specifically, the Company endeavors to establish a framework that allows the Company to appropriately understandthe details of accounting standards and other relevant information and accurately respond to changes in the standards
by joining the Financial Accounting Standards Foundation and participating in seminars organized by the Foundation.
The Company has explored the possibility of adopting the designated International Financial Reporting Standards inthe future.

11. Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements(i) Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Deposits paid

1,162,162*2 37,865,486

42,131,006–

Notes receivable – trade
Accounts receivable – trade

3,408,581
20,063,056*5 5,388,054

Merchandise and finished goods
Work in process

1,065,423
1,251,898

2,819,650
1,643,386

Raw materials and supplies
Other

1,486,946
1,249,447

1,562,785
592,449

Total current assets

67,553,002

65,828,262

11,690,930

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

19,505,384

20,094,861(12,890,269)(13,439,088)

Buildings and structures, net

6,615,115

6,655,773

Machinery, equipment and vehicles

9,957,769

10,243,708

Accumulated depreciation(8,261,419)(8,831,923)

Machinery, equipment and vehicles, net

1,696,350

1,411,784

Tools, furniture and fixtures

2,963,989

3,057,019(2,788,596)(2,857,974)

175,392

199,044*1 8,523,400*1 8,522,521

747,944732,253

Accumulated depreciation(485,104)(505,936)

Leased assets, net

262,839

226,317

Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets

Construction in progress

341,940

134,614

17,615,039

17,150,055

Intangible assets
Investments and other assets

601,208

651,201

Investment securities
Retirement benefit asset

6,959,086–

7,066,511
600,466

Other
Allowance for doubtful accounts*3 2,973,787*3 3,630,421(6,653)(5,301)

Total investments and other assets

9,926,220

11,292,097

28,142,468

29,093,354

95,695,470

94,921,617

Total property, plant and equipment

Total non-current assets
Total assets2

(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable – trade
Lease liabilities

10,248,973
94,148

7,372,886
72,642

Income taxes payable
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Other

1,385,807

862,617

38,00038,000153,065

133,476*4 2,975,807*4 2,430,428

Total current liabilities

14,895,802

10,910,051

Non-current liabilities
Lease liabilities

214,152

183,348

695,862*1 616,302

1,383,340*1 616,302

Retirement benefit liability
Other

660,461
39,142–39,511

Total non-current liabilities

2,225,920

2,222,503

17,121,723

13,132,554

Shareholders’ equity
Share capital

10,425,325

10,425,325

Capital surplus
Retained earnings

9,923,342
54,606,278

9,923,342
56,428,242

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total liabilities
Net assets

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

3

(313)

(8,939)74,954,632

76,767,970

3,882,938

4,025,637*1 (1,624,044)*1 (1,624,044)

808,182

1,218,929

552,038

1,400,570

3,619,115

5,021,092

78,573,747

81,789,062

95,695,470

94,921,617

(ii) Consolidated Statements of Income and Consolidated Statement of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales
Cost of sales*1 60,678,851*1 53,129,278*2 47,627,170*2 41,350,074

Gross profit

13,051,681

11,779,203

Packing and delivery expenses
Advertising expenses

479,842
72,348519,553
79,936

Sales commission
Remuneration for directors (and other officers)

33,027
74,27718,00077,1782,182,919
33,647

2,123,220
34,591Retirement benefit expenses
Welfare expenses

142,486
506,773

100,998
457,976

Communication and transportation expenses
Depreciation

251,419
315,446

272,583
298,976

Repair expenses
Rent expenses

71,617
170,832

71,925
143,307

Research and development expenses
Other*6 478,312*6 424,499

887,419

814,839

Total selling, general and administrative expenses

5,700,370

5,437,588

7,351,310

6,341,615

Interest income
Dividend income

10,724
172,863

19,402
174,111

Foreign exchange gains
Share of profit of entities accounted for using equity
methodMiscellaneous income

56,844

7,492

375,337

443,652

51,48734,566

Total non-operating income

667,258

679,226

Miscellaneous losses

2,492

1,992

Total non-operating expenses

2,492

1,992

8,016,076

7,018,849

Selling, general and administrative expenses

Salaries, allowances and bonuses
Provision for bonuses for directors (and other officers)

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit

4

(Thousands of yen)
For the fiscal year
ended March 31, 2023
Extraordinary income
Gain on sale of non-current assets

For the fiscal year
ended March 31, 2024

*3 755*3 763Gain on sale of investment securities

406,591

469,008

Total extraordinary income

407,347

469,771

Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities

170–*5 6,461*5 9986,650–

Impairment losses
Loss on liquidation of subsidiaries and associates*4 606*4 415*7 28,491–

Compensation for damage*8 104,011–

146,393

1,414

Profit before income taxes

Total extraordinary losses

8,277,030

7,487,206

Income taxes – current
Income taxes – deferred

2,177,077
141,849

1,987,427
229,699

Total income taxes

2,318,927

2,217,127

Profit5,958,103

5,270,078

Profit attributable to owners of parent

5,958,103

5,270,078

5

Consolidated Statements of Comprehensive Income(Thousands of yen)
For the fiscal year
ended March 31, 2023
ProfitOther comprehensive income:For the fiscal year
ended March 31, 2024

5,958,103

5,270,078

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(202,491)
37,184

142,698
182,567

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income(153,242)

848,531

12,262

228,179*1 (306,286)*1 1,401,977

5,651,817

6,672,056

5,651,817

6,672,056––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

(iii) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
period10,425,325

Capital surplus

Retained earnings

9,923,342

52,416,619

Treasury shares(646,937)

Total shareholders’equity72,118,350

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(2,790,323)(2,790,323)

5,958,103

5,958,103(331,569)(331,569)

(8)

78

70

(978,113)

978,113–

978,121(978,121)

–

–
–

–

2,189,659

646,623

2,836,282

10,425,325

9,923,342

54,606,278(313)

74,954,632

Valuation difference
Foreign currency Remeasurements ofRevaluation reserveon available-for-saletranslation
defined benefit
for landsecurities
adjustment
plans

Total accumulated
othercomprehensive
incomeAccumulated other comprehensive income

Balance at beginning of
period4,085,430(1,624,044)

758,735

705,280

3,925,401

Total net assets

76,043,752

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(2,790,323)
5,958,103(331,569)
70––(202,491)–

49,447(153,242)(306,286)(306,286)(202,491)–

49,447(153,242)(306,286)

2,529,995

3,882,938(1,624,044)

808,182552,038

3,619,115

78,573,747

7

For the fiscal year ended March 31, 2024
(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
period10,425,325

Capital surplus

Retained earnings

9,923,342

54,606,278

Treasury shares(313)

Total shareholders’equity74,954,632

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(2,858,014)(2,858,014)

5,270,078

5,270,078(598,726)(598,726)

590,100–(590,100)
590,100(590,100)

–

–
–

–

1,821,963(8,625)

1,813,337

10,425,325

9,923,342

56,428,242(8,939)76,767,970

Valuation difference
Foreign currency Remeasurements ofRevaluation reserveon available-for-saletranslation
defined benefit
for landsecurities
adjustment
plans

Total accumulated
othercomprehensive
incomeAccumulated other comprehensive income

Balance at beginning of
period3,882,938(1,624,044)

808,182552,038

3,619,115

Total net assets

78,573,747

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(2,858,014)
5,270,078(598,726)––

142,698–

410,747

848,5311,401,977

1,401,977

142,698–

410,747

848,5311,401,977

3,215,315

4,025,637(1,624,044)

1,218,929

1,400,570

5,021,092

81,789,062

8

(iv) Consolidated Statements of Cash Flows(Thousands of yen)
For the fiscal year
ended March 31, 2023
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2024

8,277,030

7,487,206

1,484,874
606

1,440,853
415

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties(105)(75,205)(1,352)(19,588)

Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability–
171,168(600,466)(660,461)

Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities(183,588)(193,514)(375,337)(443,652)(406,591)
6,650(469,008)–

Foreign exchange losses (gains)
Loss (gain) on sale and retirement of non-current assets

(233)
5,876

(1,187)234

Decrease (increase) in trade receivables
Decrease (increase) in inventories(4,867,428)(97,425)

6,414,625(2,186,934)

Increase (decrease) in trade payables
Compensation for damage

1,616,971
104,011(2,894,893)–

Depreciation
Impairment losses

Other, net

307,942776,418

Subtotal

5,969,215

8,648,697

Interest and dividends received

174,820952,113Compensation paid for damage
Income taxes paid

(104,011)(1,531,291)–(2,489,172)

Net cash provided by (used in) operating activities

4,508,733

7,111,638(1,900,000)(100)

33,300,000–

497,355

565,984(789,647)(1,072,594)

3,329

9,085

Cash flows from investing activities
Decrease (increase) in deposits
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment
and intangible assets
Other, net
Net cash provided by (used in) investing activities(64,501)(39,166)(2,253,563)

32,763,309(331,569)(2,790,323)(598,726)(2,858,014)

Cash flows from financing activities
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9(103,184)(95,009)(3,225,076)(3,551,750)

20,90680,160(949,001)

36,403,357

6,676,649

5,727,648*1 5,727,648*1 42,131,006

Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies
1. Basis of consolidation
The accounts of the Company and all of its 2 subsidiaries are included in the consolidated financial statements.
Name of the consolidated subsidiaries
Zhejiang Aichi Industrial Machinery Co., Ltd.
AICHI NZ LIMITEDThe Company completed liquidation procedures of AICHI AUS PTY LTD, which was a consolidated subsidiary,
as of December 24, 2023, and therefore it has been excluded from the scope of consolidation.
2. Application of equity method
One affiliate is accounted for by the equity method.
Name of the affiliate
Hangzhou Aichi Engineering Vehicles Co., Ltd.
Although the fiscal year end date of Hangzhou Aichi Engineering Vehicles Co., Ltd. is December 31, when
preparing the consolidated financial statements, the Company uses the affiliate’s provisional financial statements,
which are calculated assuming the fiscal year end date is March 31.
3. Fiscal year of consolidated subsidiaries
Although the fiscal year end date of Zhejiang Aichi Industrial Machinery Co., Ltd. is December 31, when preparing
the consolidated financial statements, the Company uses the subsidiary’s provisional financial statements, which arecalculated assuming the fiscal year end date is March 31.
4. Accounting policies(1) Valuation method of significant assets(i) Securities
Available-for-sale securities
Securities other than shares, etc., that do not have a market price:
Stated at fair value(Net unrealized gains or losses are reported as a separate component in net assets, net of applicable
income taxes. Gains and losses on disposition are computed mainly based on the moving averagemethod.)Shares, etc., that do not have a market price:
Stated at cost, cost mainly being determined by the moving average method.
(ii) Inventories
Inventories are stated at cost (write-down due to decreased profitability).
A. Finished goods and work in process are evaluated using the specific identification method.
B. Raw materials are mainly stated at cost, cost being determined by the moving average method.
C. Supplies are stated at cost, cost being determined by the last purchase price method.
(iii) Derivatives
Derivatives are stated at fair value.
(2) Method of depreciation or amortization(i) Property, plant and equipment (except for leased assets) are depreciated mainly by the declining-balancemethod.
However, buildings (except for facilities attached to buildings) acquired on and after April 1, 1998 andfacilities attached to buildings and structures acquired on and after April 1, 2016 are depreciated by the10straight-line method.
(ii) Intangible assets (except for leased assets) are amortized based on the straight-line method.
In addition, software for internal use is amortized by the straight-line method over their estimated useful lives(five years).
(iii) Depreciation of leased assets regarding finance lease transactions that do not transfer ownership is computedby the straight-line method over the lease period with no residual value.
(3) Significant allowances and provisions(i) Allowance for doubtful accounts
The Company provides for estimated losses on accounts receivable based on prior bad debt experience and areview of existing receivable balances. The Company reviews individual financial conditions for doubtful or
troubled receivables and provides for losses on uncollectible amounts. In addition, a general reserve for otheraccounts receivable is provided based on historical loss experience for certain past periods.
(ii) Provision for bonuses for directors (and other officers)
The Company provides for estimated payment of bonuses to directors.
(iii) Provision for product warranties
The Company provides for estimated warranty costs based on the Company’s prior experience and estimatedcosts to be incurred individually calculated for certain products.
(4) Retirement benefits(i) Method of attributing projected benefit obligation to periods
In calculating retirement benefit obligations, the projected benefit obligation attributed to the current fiscal
year is determined using the benefit formula basis.
(ii) Calculation treatment for actuarial gains or losses and prior service costs
Actuarial gains or losses are amortized in the fiscal year following the fiscal year in which the gain or loss isrecognized by the straight-line method over a fixed period (10 years), which is shorter than the averageremaining years of service of the employees.
Prior service costs are amortized when the prior service costs are recognized by the straight-line method overa fixed period (10 years), which is shorter than the average remaining years of service of the employee.
(5) Accounting standards for significant revenue and expense recognition
Followings are the main content of major performance obligations in the Company and its consolidated
subsidiaries’ mainstay businesses relating to revenue from contracts with customers and the timing when such
performance obligations are typically satisfied (when revenue is typically recognized).
The Group manufactures and sells specially equipped vehicles such as digger derricks, aerial work platforms andskid-steer loaders, sells their parts, and provides after-sales services such as repairs. The Company usually
recognizes revenue from the sales of these products and the provision of these services when they are accepted bycustomers because customers obtain control of these products and services, and the performance obligations are
satisfied when the products and services are accepted by customers. However, the Group recognizes revenue fromthe sole domestic sales of parts at their shipment by applying the alternative treatment as stipulated in Paragraph
98 of the “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30)
when the period between the shipment and the transfer of control of these parts to customers falls under the usual
period.
There are cases where long-term maintenance contracts are concluded with customers as an after-sales service
business and customers receive benefits from the provision of these services as the performance obligations are
satisfied. The Company recognizes revenue from these services over the contract periods because the performanceobligations of these services are satisfied over time.
For parts supply transactions for fees relating to specially equipped vehicles for which manufacturing consignment
agreements are received from customers, the Company recognizes revenue from the sales of these speciallyequipped vehicles at the amounts excluding the amounts of parts supplied for fees.
(6) Hedge accounting
11

(i) Hedge accounting
Deferred hedge accounting is applied.
Designated hedge accounting (“Furiate-shori”) is applied for foreign currency forward contracts that meet
qualifications for designated hedge accounting.
(ii) Hedging instruments and hedged items
Hedging instruments
Foreign currency forward contracts
Hedged items
Foreign-currency-denominated monetary receivables, etc.
(iii) Hedging policy
The Group has decided to limit forward exchange contracts up to the amount of the actual volume of exports.
(iv) Method of assessing hedge effectivenessAs designated hedge accounting (“Furiate-shori”) is applied to forward exchange contracts, the assessmentof hedge effectiveness is omitted.
(v) Other risk management methods
The Group concludes forward exchange contracts only with highly rated financial institutions and fulfills,
manages, and reports such transactions following relevant rules and regulations.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statement of cash flows consist of cash on hand, demand deposits
that can be withdrawn on demand, and highly liquid short-term investments with maturities of three months orless at the time of acquisition that are readily convertible into cash and are exposed to only an insignificant riskof fluctuation in value.
Significant Accounting Estimates
Provision for product warranties(1) Amounts recognized in the consolidated financial statements as of March 31, 2024
(Thousands of yen)
As of March 31, 2023
As of March 31, 2024
153,065

133,476(2) Information on the significant accounting estimates of the identified items
The provision for product warranties is categorized into a provision for free repairs carried out within the warranty
period and a provision for free repairs to rectify defects in specific products.
For the provision for free repairs carried out within the warranty period, future product warranty expenses are
estimated and recognized in a lump sum based on the actual ratio of warranty expenses incurred to sales.
For specific products subject to measures for rectifying defects, expected product warranty expenses are estimatedand recognized individually based on the number of units to be rectified, the estimated cost of repair per unit, thepercentage of the units that have actually been repaired, and the percentage of the liability shared with suppliers.
If liabilities arise due to product defects that were not expected when the estimates were made for the provision,or if warranty expenses exceed the provision, it may become necessary to recognize additional provision for
product warranties. Meanwhile, if the actual warranty expenses turn out to be smaller than the provision, a reversalof the provision will be recognized.
Accounting Standards Issued but Not Yet Applied• “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)• “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022)• “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022)(1) Outline
12

The standards and guidance prescribe the classification of income taxes to be imposed on other comprehensive
income and the treatment of tax effects on the sales of shares of subsidiaries, etc., when the group tax sharing
system is applied.
(2) Scheduled application date
They are scheduled to be applied in the beginning of the fiscal year ending March 31, 2025.
(3) Effect of application of the accounting standards, etc.
The amount of impact from this application was being evaluated at the time of preparation of this consolidated
financial statements.
Consolidated Balance Sheets*1 Land revaluation
Pursuant to the “Act on Revaluation of Land” (Act No. 34, promulgated on March 31, 1998), the Company revalued
land used for business activities and recorded deferred tax liabilities for land revaluation in liabilities and revaluation
reserve for land in net assets.
• Revaluation method
Revaluation was carried out based on an amount rationally calculated using the land value for local government
tax and roadside land assessment as prescribed in Article 2, Item 3 and Article 2, Item 4 of the “Order for
Enforcement of the Act on Revaluation of Land” (No. 119 of the 1998 Cabinet Order, promulgated on March 31,
1998), respectively.
• Revaluation date
March 31, 2002
(Thousands of yen)
As of March 31, 2023
Difference between the fair value atthe end of the fiscal year ended March
31, 2024 and the book value of theland after the revaluation

As of March 31, 2024

(2,269,381)(2,138,913)*2 Deposits paid represent the amount of funds deposited with “Cash Management Service” operated by Toyota
Industries Corporation, the parent company of the Company.
*3 Investments in capital of affiliates included in “Other” were as follows:(Thousands of yen)
As of March 31, 2023
Other (Investments in capital)

As of March 31, 2024

2,759,901

3,465,493*4 Contract liabilities under “Other” were as follows:(Thousands of yen)
As of March 31, 2023
Contract liabilities

As of March 31, 2024

174,141

226,462*5 Notes maturing at the end of the fiscal year are settled on the clearance date of the notes. Because the last day of thecurrent fiscal year fell on a holiday of financial institutions, the following notes maturing on the last day of the fiscal
year were included in the balance at the end of the fiscal year.
(Thousands of yen)
As of March 31, 2023
Notes receivable – trade

As of March 31, 2024–

13

814,019

Consolidated Statements of Income*1 Revenue from contracts with customers
With respect to net sales, the Group does not disaggregate revenue from contracts with customers and other sourcesof revenue. The amount of revenue from contracts with customers is presented in “Notes to the Consolidated
Financial Statements, Revenue Recognition, 1. Information about breakdown of revenue from contracts withcustomers” under the Consolidated Financial Statements.
*2 Write-down due to decreased profitability of inventories held for sale in the ordinary course of business was asfollows:(Thousands of yen)
For the fiscal year
ended March 31, 2023
Cost of sales

For the fiscal year
ended March 31, 2024

36,98911,872*3 Gain on sale of non-current assets was mainly attributable to the sale of buildings, structures, and other items.
*4 For the fiscal year ended March 31, 2023
For the fiscal year ended March 31, 2023, impairment loss was incurred on the following asset group.
Location
Konan-cho, Takamatsu-shi, Kagawa

Use

Type

AmountIdle landLand¥606 thousand

The Group has categorized its assets by business into assets associated with specially equipped vehicles and rental
property businesses, and idle assets.
As the land price of idle assets in Takamatsu-shi dropped compared to the book value, the Group reduced the bookvalue to the recoverable amount and posted the reduction of ¥606 thousand as impairment loss in extraordinary
losses for the fiscal year ended March 31, 2023.
The recoverable amount of such assets was measured at net sales value and determined after making reasonableadjustments to the valuation of non-current assets
For the fiscal year ended March 31, 2024
For the fiscal year ended March 31, 2024, impairment loss was incurred on the following asset group.
Location
Konan-cho, Takamatsu-shi, Kagawa

Use

Type

AmountIdle landLand¥415 thousand

The Group has categorized its assets by business into assets associated with specially equipped vehicles and rental
property businesses, and idle assets.
As the land price of idle assets in Takamatsu-shi dropped compared to the book value, the Group reduced the bookvalue to the recoverable amount and posted the reduction of ¥415 thousand as impairment loss in extraordinary
losses for the fiscal year ended March 31, 2024.
The recoverable amount of such assets was measured at net sales value and determined after making reasonableadjustments to the valuation of non-current assets.
*5 Loss on retirement of non-current assets was mainly attributable to the retirement of buildings, structures, and otheritems.

14

*6 Research and development expenses included in selling, general and administrative expenses are presented below
and there were no such expenses to be included in manufacturing cost.
(Thousands of yen)
For the fiscal year
ended March 31, 2023
Selling, general and administrative
expenses

For the fiscal year
ended March 31, 2024

478,312424,499*7 Loss on liquidation of subsidiaries and associates
For the fiscal year ended March 31, 2023
This loss was incurred due to a resolution made to liquidate AICHI AUS PTY LTD, a consolidated subsidiary of
the Company.
For the fiscal year ended March 31, 2024
There are no applicable items.
*8 Compensation for damage
For the fiscal year ended March 31, 2023
This was a settlement of product liability involving Zhejiang Aichi Industrial Machinery Co., Ltd., a consolidated
subsidiary of the Company.
For the fiscal year ended March 31, 2024
There are no applicable items.
Consolidated Statements of Comprehensive Income*1 Reclassification adjustments and tax effects relating to other comprehensive income(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Valuation difference on available-for-sale securities
Amount incurred during period(654,365)

673,409

Reclassification adjustments

399,760(469,008)(254,604)

204,401

52,113(61,703)(202,491)

142,698

37,184

182,567

37,184

182,567(277,186)

1,327,823

Before tax effect adjustment
Tax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Amount incurred during period
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Amount incurred during period
Reclassification adjustments
Before tax effect adjustment
Tax effectRemeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Amount incurred during period
Total other comprehensive income

15

56,820(107,616)(220,366)

1,220,206

67,123(371,675)(153,242)

848,531

12,262

228,179(306,286)

1,401,977

Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
1. Class and number of issued sharesClass of shares

As of April 1, 2022

Common shares(shares)

Increase

76,395,901

Decrease–

1,184,501

As of March 31, 2023
75,211,400(Major causes of changes)
The decrease in the number was due to a cancellation of treasury shares based on a resolution made at a board meeting
held on January 31, 2023.
2. Class and number of treasury sharesClass of shares

As of April 1, 2022

Common shares(shares)

Increase

809,314

Decrease

375,652

As of March 31, 2023

1,184,591

375(Major causes of changes)
The increase in the number was attributable to:
Acquisition of treasury shares based on a resolution made at a board
meeting held on October 27, 2021

375,100 shares

Acquisition of shares less than one unit

552 shares

The decrease in the number was attributable to:Cancellation of treasury shares based on a resolution made at aboard meeting held on January 31, 2023

1,184,501 shares

Sale of shares less than one unit

90 shares

3. Share acquisition rights, etc.
There are no applicable items.
4. Cash dividends(1) Amount of cash dividends
Resolution
Board meeting on
April 26, 2022
Board meeting on
October 26, 2022

Class of shares

Amount of cash
Cash dividends per
dividends
share (Yen)(Thousands of yen)

Record date

Effective date of
distribution

Common shares

1,511,731

20.00

March 31, 2022

June 1, 2022

Common shares

1,278,591

17.00

September 30, 2022

November 28, 2022

(2) Dividends whose record date fell in the fiscal year ended March 31, 2023, but the effective date of distribution
falls in the fiscal year ended March 31, 2024
Resolution

Class ofshares

Source ofdividends

Board meeting on
April 25, 2023

CommonsharesRetainedearnings

Amount of cash
dividends
Cash dividends(Thousands of per share (Yen)yen)
1,429,009

16

19.00

Record date

Effective date of
distribution

March 31, 2023

June 1, 2023

For the fiscal year ended March 31, 2024
1. Class and number of issued sharesClass of shares

As of April 1, 2023

Common shares(shares)

Increase

75,211,400

Decrease–

641,400

As of March 31, 2024
74,570,000(Major causes of changes)
The decrease in the number was due to a cancellation of treasury shares based on a resolution made at a board meeting
held on February 28, 2024.
2. Class and number of treasury sharesClass of shares

As of April 1, 2023

Common shares(shares)

Increase

375

Decrease

650,722

641,400

As of March 31, 2024
9,697

(Major causes of changes)
The increase in the number was attributable to:
Acquisition of treasury shares based on a resolution made at a board
meeting held on November 29, 2023

650,000 shares

Acquisition of shares less than one unit

722 shares

The decrease in the number was attributable to:Cancellation of treasury shares based on a resolution made at aboard meeting held on February 28, 2024

641,400 shares

3. Share acquisition rights, etc.
There are no applicable items.

4. Cash dividends(1) Amount of cash dividends
Resolution
Board meeting on
April 25, 2023
Board meeting on
October 27, 2023

Class of shares

Amount of cash
Cash dividends per
dividends
share (Yen)(Thousands of yen)

Record date

Effective date of
distribution

Common shares

1,429,009

19.00

March 31, 2023

June 1, 2023

Common shares

1,429,005

19.00

September 30, 2023

November 28, 2023

(2) Dividends whose record date fell in the fiscal year ended March 31, 2024, but the effective date of distribution
falls in the fiscal year ending March 31, 2025
Resolution

Class ofshares

Source ofdividends

Board meeting on
April 23, 2024

CommonsharesRetainedearnings

Amount of cash
dividends
Cash dividends(Thousands of per share (Yen)yen)
1,565,766

17

21.00

Record date

Effective date of
distribution

March 31, 2024

May 30, 2024

Consolidated Statements of Cash Flows*1 The reconciliation of the ending balance of cash and cash equivalents with the amounts of the line items presented
on the consolidated balance sheets was as follows:(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Cash and deposits

1,162,162

42,131,006

Deposits paid

37,865,486-

Subtotal
Deposit paid due from banks overthree months
Cash and cash equivalents

39,027,648

42,131,006(33,300,000)–

5,727,648

42,131,006

Lease Transactions
1. Finance lease transactions
As a lessee
Finance lease transactions that do not transfer ownership(i) Details of leased assets• Property, plant and equipment
These assets comprise buildings, vehicles, tools, furniture and fixtures.
• Intangible assets
These assets represent software.
(ii) Method of depreciation of leased assets
Depreciation of leased assets is computed by the straight-line method over the lease period deemed as useful
lives with no residual value.
2. Operating lease transactions
As a lessee
Future minimum lease payments under non-cancelable operating leases(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Within one year

9,459

6,710

Over one year

10,993

8,106

Total

20,453

14,81618

Financial Instruments
1. Status of financial instruments held by the Group(1) Policy on financial instruments
Working capital and capital investments are financed by the Group’s own funds. Temporary excess funds were
invested through Cash Management Service operated by the parent company. Currently, the entire amountdeposited with CMS has been transferred to a bank after full consideration of future capital needs and theenvironment surrounding the Company. The Group uses derivatives to hedge against the risk of exchange rate
fluctuations in trade receivables and has a policy of not engaging in speculative transactions.
(2) Nature and risks of financial instruments
Trade receivables such as notes receivable – trade and accounts receivable – trade are exposed to the credit riskof customers. Since trade receivables denominated in foreign currencies, which arise from the global business,are exposed to the risk of exchange rate fluctuations, the Group in principle hedges this risk by means of forward
exchange contracts.
Investment securities such as shares are exposed to the risk of market price fluctuations and are mainly shares incompanies with which the Group has business relationships. The fair value of listed shares is verified on aquarterly basis.
Trade payables such as notes and accounts payable – trade are due within one year.
With respect to derivative transactions, the Group uses forward exchange contracts for the purpose of hedging
against the risk of exchange rate fluctuations associated with trade receivables and forecast transactions
denominated in foreign currencies. Hedging instruments, hedged items, hedging policy and methods for theassessment of the hedge effectiveness relating to the hedge accounting are described in “Summary of Significant
Accounting Policies, 4. Accounting policies, (6) Hedge accounting.”(3) Risk management system for financial instruments(i) Credit risk management (risk of non-performance by counterparties, etc.)
For trade receivables, the Sales Division and Administration Division regularly monitor the status of major
customers and manage the due dates and outstanding balances by counterparty to detect at an early stage andmitigate concerns about the collection that would be caused by deteriorating financial conditions and otherfactors in accordance with the internal control measures for receivables management.
The Group trades derivatives only with highly rated financial institutions.
(ii) Market risk management (risk of exchange rate and interest rate fluctuations)
In principle, the Group hedges trade receivables and forecast transactions denominated in foreign currencies
using forward exchange contracts.
For investment securities, the Group verifies the fair value of listed shares on a quarterly basis and thefinancial conditions of the issuers (business partners) of unlisted shares on an ongoing basis.
The Accounting Division executes derivative transactions and reconciles their balances in accordance withinternal policies.
(iii) Management of liquidity risk in financing (risk of being unable to make payments on due dates)
The Group is not exposed to liquidity risk in financing because working capital is financed by the Group’s
own funds.
(4) Supplementary explanation on fair values of financial instruments
Variable factors are incorporated in the measurement of fair values of financial instruments, and therefore,
measured values may vary depending on assumptions adopted. The contract amounts and other information ofderivative transactions shown in “2 Fair value of financial instruments” do not directly represent the market risk
associated with the derivative transactions.

19

2. Fair value of financial instruments
Consolidated balance sheet amounts, fair values and their differences are as follows.
As of March 31, 2023
(Thousands of yen)
Consolidated balance sheet
amountFair value

Difference

Investment securities
Available-for-sale securities
Total assets

6,603,426

6,603,426–

6,603,426

6,603,426–*1 Notes to deposits, deposits paid, notes receivable – trade, accounts receivable – trade, notes and accounts payable – trade, andincome taxes payable are omitted, because they are settled on short-term basis and their book values approximate their fairvalues.
*2 Shares, etc., that do not have a market price are not included in available-for-sale securities under investment securities.
Consolidated balance sheet amounts of such financial instruments were as follows.
As of March 31, 2023
Category(Thousands of yen)
Unlisted shares

355,660

As of March 31, 2024
(Thousands of yen)
Consolidated balance sheet
amountFair value

Difference

Investment securities
Available-for-sale securities
Total assets

6,710,851

6,710,851–

6,710,851

6,710,851–*1 Notes to deposits, notes receivable – trade, accounts receivable – trade, notes and accounts payable – trade, and income taxes
payable are omitted, because they are settled on short-term basis and their book values approximate their fair values.
*2 Shares, etc., that do not have a market price are not included in available-for-sale securities under investment securities.
Consolidated balance sheet amounts of such financial instruments were as follows.
As of March 31, 2024
Category(Thousands of yen)
Unlisted shares

355,660

20

(Note) Redemption schedule for monetary receivables after the consolidated balance sheet date
As of March 31, 2023
(Thousands of yen)
Due after one Due after fiveDue after ten
Within one year year but within years but within
years
five years
ten years
Cash and deposits

1,162,162–––

Deposits paid

37,865,486

–

–

–

Notes receivable – trade

3,408,581–––

Accounts receivable – trade

20,063,056

–

–

–

62,499,286

–

–

–

Total
As of March 31, 2024

(Thousands of yen)
Due after one Due after fiveDue after ten
Within one year year but within years but within
years
five years
ten years
Cash and deposits

42,131,006

–

–

–

Notes receivable – trade

5,388,054–––

Accounts receivable – trade

11,690,930

–

–

–

59,209,991

–

–

–

Total

3. Breakdown of fair value by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Level 1 fair value:

Fair value measured using observable inputs, i.e. quoted prices in active markets for assets
or liabilities that are the subject of the measurement.

Level 2 fair value:

Fair value measured using observable inputs other than Level 1 inputs.

Level 3 fair value:

Fair value measured using unobservable inputs.

If multiple inputs are used that are significant to the fair value measurement, the fair value measurement is categorized
in its entirety in the level of the lowest level input that is significant to the entire measurement.
(1) Financial instruments measured at fair value
As of March 31, 2023
Category

Fair value (Thousands of yen)
Level 1

Level 2

Level 3

Total

Investment securities
Available-for-sale securities

6,603,426––

6,603,426

As of March 31, 2024
Category

Fair value (Thousands of yen)
Level 1

Level 2

Level 3

Total

Investment securities
Available-for-sale securities

6,710,851–(2) Financial instruments other than those measured at fair value
Notes are omitted due to their insignificance.

21–

6,710,851

Securities
1. Available-for-sale securities
As of March 31, 2023
(Thousands of yen)
Category

Consolidated balance sheet
amountAcquisition cost

Difference

Securities whose consolidated balance
sheet amount exceeds the acquisition
cost:
Shares6,596,836

1,181,697

5,415,138

6,596,836

1,181,697

5,415,138

Securities whose consolidated balance
sheet amount does not exceed theacquisition cost:
Shares

6,590

6,590

–

Subtotal

6,590

6,590

–

Total

6,603,426

1,188,287

5,415,138

Subtotal

As of March 31, 2024
(Thousands of yen)
Category

Consolidated balance sheet
amountAcquisition cost

Difference

Securities whose consolidated balance
sheet amount exceeds the acquisition
cost:
Shares6,710,851

1,091,310

5,619,540

6,710,851

1,091,310

5,619,540

Securities whose consolidated balance
sheet amount does not exceed theacquisition cost:
Shares–––Subtotal

–

–

–

Total

6,710,851

1,091,310

5,619,540

Subtotal

2. Available-for-sale securities sold during the fiscal year
For the fiscal year ended March 31, 2023
(Thousands of yen)
Category

Proceeds from sale

Shares
Total

Total gain on sale

Total loss on sale497,355

406,591–

497,355

406,591–

For the fiscal year ended March 31, 2024
(Thousands of yen)
Category
Shares
Total

Proceeds from sale

Total gain on sale

Total loss on sale565,984

469,008–

565,984

469,008–22

3. Securities for which impairment losses were recognized
During the fiscal year ended March 31, 2023, the Group recognized impairment loss of ¥6,650 thousand on securities(shares classified as available-for-sale securities of ¥6,650 thousand).
The Group recognizes impairment losses for all securities whose fair values at balance sheet date fall 50% or moreof their acquisition costs, whereas it recognizes impairment losses at an amount deemed necessary for securities
whose fair values at balance sheet date decline about 30% to 50% of their acquisition costs by taking into accounttheir recoverability and other factors. For securities whose market values do not exist, impairment loss is recognized
for the amount deemed necessary only if their actual values fall significantly.

23

Derivative Transactions
1. Derivative transactions to which hedge accounting is not applied
As of March 31, 2023 and 2024
There are no applicable items.
2. Derivative transactions to which hedge accounting is applied
Currency-related derivatives
As of March 31, 2023
(Thousands of yen)
Hedge accounting
Designated hedge
accounting(“Furiate-shori”) for
foreign currency
forward contracts,
etc.

Type of derivativetransactions

Main hedged items

Contract amount,etc.

Contract amount,etc., due after one
year

40,387–(Note)

40,387–(Note)

Fair value

Forward exchange
contracts
Selling

Accounts receivable– tradeUS$
Total(Note) Since items subject to the designated hedge accounting (“Furiate-shori”) for foreign currency forward contracts, etc. areaccounted for synthetically with accounts receivable – trade that are hedged items, their fair values are included in the fairvalues of the corresponding accounts receivable – trade.
As of March 31, 2024
(Thousands of yen)
Hedge accounting
Designated hedge
accounting(“Furiate-shori”) for
foreign currency
forward contracts,
etc.

Type of derivativetransactions

Main hedged items

Contract amount,etc.

Contract amount,etc., due after one
year

13,519–(Note)

13,519–(Note)

Fair value

Forward exchange
contracts
Selling

Accounts receivable– tradeUS$
Total(Note) Since items subject to the designated hedge accounting (“Furiate-shori”) for foreign currency forward contracts, etc. areaccounted for synthetically with accounts receivable – trade that are hedged items, their fair values are included in the fairvalues of the corresponding accounts receivable – trade.

24Retirement Benefits
1. Overview of retirement benefit plans adopted
The Company has adopted a defined benefit pension plan. In addition, the Company participates in a multi-employer
plan, the Japan Industrial Machine and Allied Products Employees’ Corporate Pension Fund.
The multi-employer corporate pension fund plan is accounted for in the same manner as the defined contributionplans because the amount of pension plan assets corresponding to the Company’s own contributions cannot bereasonably calculated.
2. Multi-employer plan
The required contributions to the multi-employer employees’ pension fund and corporate pension fund plans, which
are accounted for in the same manner as the defined contribution plans, were ¥212 million for the fiscal year ended
March 31, 2023 and ¥211 million for the fiscal year ended March 31, 2024.
(1) Most recent funding status of multi-employer plan
(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Amount of plan assets

15,26915,832

Total amount of actuarial liability and minimum
actuarial reserve for the purpose of pension financing
calculation

20,314

19,987

Net amount(5,045)(4,155)(2) The Group’s ratio of total contributions to the multi-employer plan
11.1% for the fiscal year ended March 31, 2023
11.0% for the fiscal year ended March 31, 2024
(3) Supplementary explanation
The net amount presented in (1) above was mainly due to the balance of prior service liability (negative ¥7,281
million for the fiscal year ended March 31, 2023 and negative ¥6,096 million for the fiscal year ended March 31,2024) and surplus (¥2,096 million for the fiscal year ended March 31, 2023 and ¥1,941 million for the fiscal year
ended March 31, 2024) for the purpose of pension financing calculation. Under the plan, prior service liability isamortized using the straight-line method over a period of 10 years and six months. The percentage shown in (2)above does not correspond to the Group’s actual contribution ratio.

25

3. Defined benefit plan
(1) Reconciliation of beginning and ending balances of retirement benefit obligations
For the fiscal year
ended March 31, 2023
7,073,162

Retirement benefit obligations at beginning of period(Thousands of yen)
For the fiscal year
ended March 31, 2024
6,997,648

Service cost

336,984

324,220

Interest cost

35,29334,154

Actuarial gains and losses incurred

12,920(676,621)–(157,833)

Accrual for prior service costs
Retirement benefits paid
Retirement benefit obligations at end of period(460,714)(262,181)

6,997,648

6,259,386(2) Reconciliation of beginning and ending balances of plan assets
For the fiscal year
ended March 31, 2023
6,583,870

Plan assets at beginning of period
Expected return on plan assets(Thousands of yen)
For the fiscal year
ended March 31, 2024
6,337,187

32,91931,685

Actuarial gains and losses incurred(150,624)

509,151

Contributions from employer

326,236

244,008

Retirement benefits paid

(455,214)(262,181)

Plan assets at end of period

6,337,187

6,859,852(3) Reconciliation of retirement benefit obligations and plan assets at end of period with defined benefit liability andbenefit assets on the consolidated balance sheets(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Funded retirement benefit obligations

6,997,648

6,259,386

Plan assets(6,337,187)(6,859,852)

Net amount of liability and asset recorded inconsolidated balance sheets

660,461(600,466)

Retirement benefit liability

660,461––(600,466)

660,461(600,466)

Retirement benefit asset
Net amount of liability and asset recorded inconsolidated balance sheets(4) Components of retirement benefit expenses
For the fiscal year
ended March 31, 2023
336,984

Service cost(Thousands of yen)
For the fiscal year
ended March 31, 2024
324,220

Interest cost

35,29334,154

Expected return on plan assets(32,919)(31,685)

Amortization of actuarial gains and losses(56,820)(107,616)–(15,783)

282,538

203,288

Amortization of prior service costs
Retirement benefit expenses on defined benefit plans26

(5) Remeasurements of defined benefit plans
Components of items recorded in remeasurements of defined benefit plans (before tax effect) were as follows:
For the fiscal year
ended March 31, 2023
Prior service cost–(Thousands of yen)
For the fiscal year
ended March 31, 2024
142,050

Actuarial gains and losses

220,366

1,078,156

Total

220,366

1,220,206(6) Accumulated remeasurements of defined benefit plans
Components of items recorded in accumulated remeasurements of defined benefit plans (before deducting tax
effect) were as follows:(Thousands of yen)
As of March 31, 2023
Unrecognized prior service cost

As of March 31, 2024–

142,050

Unrecognized actuarial gains and losses

794,493

1,872,650

Total

794,4932,014,700(7) Plan assets(i)

Major components of plan assets
Classification of major plan assets and their composition within the total plan assets was as follows:
As of March 31, 2023

As of March 31, 2024

Bonds

39%

37%

Shares21%

25%

Alternatives

28%

29%

Life insurance company general account6%

6%

Cash and deposits

6%

3%

Other

0%

(0)%

Total

100%

100%

(Notes) 1. Alternatives consist primarily of hedge fund investments.
2. The retirement benefit trust set up for the lump-sum payment plans represents 6% and 0% of the total plan assets as ofMarch 31, 2023 and 2024, respectively.

(ii) Determination procedure of long-term expected rate of return on plan assets
In determining the long-term expected rate of return on plan assets, the Group considers the current andprojected asset allocations as well as the current and future expected long-term rates of return on diverse
assets that constitute the plan assets.
(8) Actuarial assumptions
Major actuarial assumptions
Discount rateLong-term expected rate of return on plan assets

27

For the fiscal year
ended March 31, 2023
0.5%

For the fiscal year
ended March 31, 2024
1.3%

0.5%

0.5%

Deferred Tax Assets and Liabilities
1. The significant components of deferred tax assets and liabilities were as follows:(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Deferred tax assets:
Inventories
Accrued enterprise tax andbusiness office tax
Unrealized gain on non-current
assetsProvision for product warranties

166,286

156,820

86,73061,950

1,830

1,296

46,62340,657

Accrued bonuses

297,637

300,654

Retirement benefit liability

310,379–Land

569,744569,871

Investment securities

121,561

120,482

Tax loss carryforwards (Note)

32,980

2,206

Other

136,224

142,303

Subtotal of deferred tax assets
Valuation allowance fordeductible temporary
differences
Subtotal of valuation allowance

1,770,000

1,396,242(601,606)(691,996)(601,606)(691,996)

Total deferred tax assets

1,168,393

704,246

Deferred tax liabilities:
Valuation difference on availablefor-sale securities
Retirement benefit asset(1,532,200)(1,593,903)–(176,403)(332,055)(317,279)

Total deferred tax liabilities(1,864,255)(2,087,586)

Deferred tax liabilities (Net)(695,862)(1,383,340)

Other(Note) Tax loss carryforwards and resulting deferred tax assets by expiration period
As of March 31, 2023
(Thousands of yen)
Due after Due after Due after Due afterWithin one one year two years three years four years Due after
year
but within but within but within but within five years
two years three years four years five years

Total

Tax loss carryforwards

–

–

–

–

32,980–32,980

Deferred tax assets

–

–

–

–

32,980–32,980Tax loss carryforwards were calculated by applying the effective statutory tax rate.

As of March 31, 2024
(Thousands of yen)
Due after Due after Due after Due afterWithin one one year two years three years four years Due after
year
but within but within but within but within five years
two years three years four years five years

Total

Tax loss carryforwards

–

–

–

2,206

–

–

2,206

Deferred tax assets

–

–

–

2,206

–

–

2,206

Tax loss carryforwards were calculated by applying the effective statutory tax rate.

28

2. The significant components of deferred tax assets and liabilities in relation to revaluation reserve for land were as
follows:(Thousands of yen)
As of March 31, 2023
Deferred tax assets:
Unrealized loss on land revaluation
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gain on land
revaluation
Total deferred tax liabilities
Deferred tax liabilities (Net)

As of March 31, 2024

923,260
923,260(923,260)–

923,260
923,260(923,260)–(616,302)(616,302)(616,302)(616,302)(616,302)(616,302)

3. The reconciliation between the effective statutory tax rate and the actual effective tax rate after applying tax effectaccounting was as follows:

Effective statutory tax rate
Adjustments:
Expenses not deductible for income tax purposes (e.g.,entertainment expenses)
Income not taxable for income tax purposes (e.g.,
dividend income)Corporate inhabitant tax on per capita basis
Changes in valuation allowance
Share of loss (profit) of entities accounted for using equity
methodTax effects on retained earnings of foreign subsidiaries
and affiliates
Other

As of March 31, 2023

As of March 31, 2024

30.5%

–%

0.3%

–%

(2.5)%–%

0.5%(1.5)%–%–%(1.4)%

–%

0.1%

–%

2.0%

–%

Effective tax rate after applying tax effect accounting
28.0%–%(Note) The description on the reconciliation of the significant difference between the effective statutory tax rate and the actual
effective tax rate after applying tax effect accounting for the fiscal year ended March 31, 2024 is omitted, as the difference
was five percent or less of the effective statutory tax rate.

29

Revenue Recognition
1. Information about breakdown of revenue from contracts with customers
For the fiscal year ended March 31, 2023
Major regional markets(Thousands of yen)
Reportable segment

Other(Note)

Total

Specially equipped
vehiclesParts & repair

Japan

43,677,486

11,787,432

55,464,918

656,401

56,121,320

Asia

2,107,114

791,684

2,898,798–

2,898,798

Other

1,528,491

130,240

1,658,732–

1,658,732

Revenue from contracts
with customers

47,313,092

12,709,357

60,022,450

656,401

60,678,851

Net sales to externalcustomers

47,313,092

12,709,357

60,022,450

656,401

60,678,851

Subtotal(Note) The category “Other” is a business segment not included in the reportable segment and includes the used vehicles sales ofaerial work platforms, etc., and education business, etc.

Timing of revenue recognition(Thousands of yen)
Reportable segment

Goods transferred at apoint in time
Goods transferred overtime (Note 2)
Revenue from contracts
with customers

Other(Note 1)

Total

Specially equipped
vehiclesParts & repair

47,313,092

12,639,418

59,952,511

656,40160,608,912–

69,93869,938–69,93847,313,092

12,709,357

60,022,450

656,401

60,678,851

Subtotal

Net sales to external
47,313,092
12,709,357
60,022,450
656,401
60,678,851
customers(Notes) 1. The category “Other” is a business segment not included in the reportable segment and includes the used vehicles salesof aerial work platforms, etc., and education business, etc.
2. Goods transferred over time are those related to maintenance contracts.

30

For the fiscal year ended March 31, 2024
Major regional markets(Thousands of yen)
Reportable segment

Other(Note)

Total

Specially equipped
vehiclesParts & repair

Japan37,378,672

11,416,852

48,795,525

610,387

49,405,912

Asia

1,451,896

778,5072,230,403–

2,230,403

Other

1,372,048

120,913

1,492,961–

1,492,961

Revenue from contracts
with customers

40,202,618

12,316,273

52,518,891

610,387

53,129,278

Net sales to externalcustomers

40,202,618

12,316,273

52,518,891

610,387

53,129,278

Subtotal(Note) The category “Other” is a business segment not included in the reportable segment and includes the used vehicles sales ofaerial work platforms, etc., and education business, etc.

Timing of revenue recognition(Thousands of yen)
Reportable segment

Goods transferred at apoint in time
Goods transferred overtime (Note 2)
Revenue from contracts
with customers

Other(Note 1)

Total

Specially equipped
vehiclesParts & repair

40,202,618

12,261,918

52,464,537

610,387

53,074,924–

54,35454,354–54,35440,202,618

12,316,273

52,518,891

610,387

53,129,278

Subtotal

Net sales to external
40,202,618
12,316,273
52,518,891
610,387
53,129,278
customers(Notes) 1. The category “Other” is a business segment not included in the reportable segment and includes the used vehicles salesof aerial work platforms, etc., and education business, etc.
2. Goods transferred over time are those related to maintenance contracts.

2. Useful information in understanding revenue from contracts with customers
Revenue is measured at consideration promised in contracts with customers less discounts, etc. The amounts of
discounts are determined at the conclusion of the said contracts and therefore do not alter consideration in relation
with revenue in the current fiscal year.
Consideration for these performance obligations is received generally within one year after the performanceobligations are satisfied under separately prescribed payment terms, and includes no significant financing components.
Under sales contracts related to specially equipped vehicles, the Group has warranty obligations that promise to repair
faults that arise within the warranty period without fee. The warranty provides assurance that the product complies
with agreed-upon specifications and will operate as promised, and thus, is recognized as a provision for productwarranties.

31

3. Reconciliation of satisfaction of performance obligations under contracts with customers and cash flows arising fromsuch contracts, and the amount and timing of revenue expected to be recognized in the next fiscal year and thereafterarising from contracts with customers that existed at the end of the current fiscal year
For the fiscal year ended March 31, 2023
(1) Balance of contract liabilities(Thousands of yen)
As of March 31, 2023
Receivables from contracts with customers (balanceat beginning of period)

18,608,241

Receivables from contracts with customers (balanceat end of period)

23,471,637

Contract assets (balance at beginning of period)–

Contract assets (balance at end of period)–

Contract liabilities (balance at beginning of period)

249,678

Contract liabilities (balance at end of period)

174,141

Contract liabilities are recorded under other of current liabilities. Contract liabilities are related to advances
received from customers based on the payment terms agreed with customers for contracts in which revenue fromthe sales, repair, etc., of specially equipped vehicles or their parts is recognized when those products or services
are accepted by customers, and for contracts in which revenue is recognized over time as the performanceobligations for after-sales services are satisfied. Contract liabilities are reversed upon recognition of revenue.
Revenue recognized in the fiscal year ended March 31, 2023 that was included in the contract liability balance atthe beginning of the period was ¥248,290 thousand.
The amount of revenue recognized in the fiscal year ended March 31, 2024 from performance obligations thatwere satisfied in previous periods is immaterial.
(2) Transaction price allocated to the remaining performance obligations
The Company and its consolidated subsidiaries have applied the practical expedient to the notes on transaction
prices allocated to the remaining performance obligations, and do not disclose transaction prices related tocontracts with an original expected duration of one year or less. For maintenance contracts with servicing periods
longer than one year, the total transaction price allocated to the remaining performance obligations and the timeframe the Company expects to recognize the amount as revenue are as follows:(Thousands of yen)
As of March 31, 2023
Within one year

340,698

Due after one year but within two years

259,066

Due after two years but within three years

205,825

Due after three years

507,639

Total

1,313,229

32

For the fiscal year ended March 31, 2024
(1) Balance of contract liabilities(Thousands of yen)
As of March 31, 2024
Receivables from contracts with customers (balanceat beginning of period)

23,471,637

Receivables from contracts with customers (balanceat end of period)

17,078,985

Contract assets (balance at beginning of period)–

Contract assets (balance at end of period)–

Contract liabilities (balance at beginning of period)

174,141

Contract liabilities (balance at end of period)

226,462

Contract liabilities are recorded under other of current liabilities. Contract liabilities are related to advances
received from customers based on the payment terms agreed with customers for contracts in which revenue fromthe sales, repair, etc., of specially equipped vehicles or their parts is recognized when those products or services
are accepted by customers, and for contracts in which revenue is recognized over time as the performanceobligations for after-sales services are satisfied. Contract liabilities are reversed upon recognition of revenue.
Revenue recognized in the fiscal year ended March 31, 2024 that was included in the contract liability balance atthe beginning of the period was ¥122,012 thousand.
The amount of revenue recognized in the fiscal year ended March 31, 2024 from performance obligations thatwere satisfied in previous periods is immaterial.
(2) Transaction price allocated to the remaining performance obligations
The Company and its consolidated subsidiaries have applied the practical expedient to the notes on transaction
prices allocated to the remaining performance obligations, and do not disclose transaction prices related tocontracts with an original expected duration of one year or less. For maintenance contracts with servicing periods
longer than one year, the total transaction price allocated to the remaining performance obligations and the timeframe the Company expects to recognize the amount as revenue are as follows:(Thousands of yen)
As of March 31, 2024
Within one year

533,377

Due after one year but within two years

454,902

Due after two years but within three years

267,706

Due after three years

559,642

Total

1,815,62833

Segment Information, etc.
Segment Information
1. Overview of reportable segments
Method for determining reportable segments
The reportable segments of the Company are constituent units of the Company, for which separate financial
information is available. The Board of Directors of the Company examines these units regularly to determine theallocation of management resources and to assess segment performance.
The Group engages in businesses associated with the manufacturing and selling of aerial work platforms and othervehicles, as well as providing after-sales services therefor. The Group’s reportable segments comprise speciallyequipped vehicles, their parts and repair services based on sales from the manufacture and sale of aerial work
platforms and other vehicles, after-sales service, and so forth.
The Specially Equipped Vehicles segment engages in the business of new vehicle sales, including aerial work
platforms. The Parts & Repair segment engages in the business of after-sales services for aerial work platforms andother vehicles.
2. Method for calculating net sales, profit and loss, assets, liabilities, and other amounts by reportable segment
The accounting treatment of reportable business segments is generally consistent with those described in “Summaryof Significant Accounting Policies.”
Intra-group sales or transfers are based on the arm’s length principle.
3. Information on net sales, profit and loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended March 31, 2023
(Thousands of yen)
Reportable segment

Other(Note 1)

Total

Specially equipped
vehiclesParts & repair

Net sales to externalcustomers

47,313,092

12,709,357

60,022,450

656,401

60,678,851

Intra-group sales or transfers

1,376,721

204,159

1,580,881

463

1,581,344

Subtotal

48,689,814

12,913,517

61,603,331

656,864

62,260,196

Segment profit

8,722,700

4,140,714

12,863,415

123,364

12,986,779

Segment assets

–

–

–

–

95,695,470

Segment liabilities

–

–

–

–

17,121,723

838,339

116,748

955,087

6,075

961,162

Subtotal

Net sales

Other items
Depreciation

Increase in property, plantand equipment and––––854,756
intangible assets(Notes) 1. The category “Other” is a business segment not included in the reportable segment and includes the used vehicles salesof aerial work platforms, etc., and education business, etc.
2. Each entity of the Group engages in businesses associated with the manufacturing and selling of aerial work platforms
and other vehicles, as well as providing ancillary services such as after-sales services. The Group classifies its reportablesegments on a net sales basis. As a result, the Group considers it difficult to report assets, liabilities, and other items byreportable segment. Therefore, only the total amount is presented.
3. Segment profit was reconciled to gross profit in the consolidated statements of income after eliminating intercompany
transactions.

34

For the fiscal year ended March 31, 2024
(Thousands of yen)
Reportable segment

Other(Note 1)

Total

Specially equipped
vehiclesParts & repair

Net sales to externalcustomers

40,202,618

12,316,273

52,518,891

610,387

53,129,278

Intra-group sales or transfers

2,289,186

81,2372,370,424–

2,370,424

Subtotal

42,491,804

12,397,510

54,889,315

610,387

55,499,702

Segment profit

7,518,120

4,122,891

11,641,011

109,065

11,750,076

Segment assets

–

–

–

–

94,921,617

Segment liabilities

–

–

–

–

13,132,554

801,308

136,687

937,995

4,537

942,533

Subtotal

Net sales

Other items
Depreciation

Increase in property, plantand equipment and intangible––––
969,319
assets(Notes) 1. The category “Other” is a business segment not included in the reportable segment and includes the used vehicles salesof aerial work platforms, etc., and education business, etc.
2. Each entity of the Group engages in businesses associated with the manufacturing and selling of aerial work platforms
and other vehicles, as well as providing ancillary services such as after-sales services. The Group classifies its reportablesegments on a net sales basis. As a result, the Group considers it difficult to report assets, liabilities, and other items byreportable segment. Therefore, only the total amount is presented.
3. Segment profit was reconciled to gross profit in the consolidated statements of income after eliminating intercompany
transactions.

35

4. Reconciliation between the total of reportable segments and the amounts on consolidated financial statements
For the fiscal year
ended March 31, 2023

Net sales
Total of reportable segments(Thousands of yen)
For the fiscal year
ended March 31, 2024

61,603,331

54,889,315

656,864

610,387

Elimination of intercompany transactions(1,581,344)(2,370,424)

Net sales on consolidated financial statements

60,678,851

53,129,278

Net sales in the category “Other”

For the fiscal year
ended March 31, 2023

Profit(Thousands of yen)
For the fiscal year
ended March 31, 2024

Total of reportable segments

12,863,415

11,641,011

Profit in the category “Other”

123,364

109,065

Elimination of intercompany transactions

64,901

29,126

Corporate expenses (Note)(5,700,370)(5,437,588)

Operating profit on consolidated financial statements

7,351,310

6,341,615(Note) Corporate expenses mainly comprise selling, general and administrative expenses that are not allocated to reportablesegments.

36

Related Information
For the fiscal year ended March 31, 2023
1. Information by product and service(Thousands of yen)
Aerial work platforms
Net sales to externalcustomers

Inspection & repair

42,155,776

5,438,014

Other
13,085,059

Total
60,678,851

2. Information by geographic area
(1) Net sales
This information is omitted because net sales to external customers in Japan account for more than 90% of net
sales shown in the consolidated statements of income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment in Japan accounts for more than
90% of that in the consolidated balance sheets.
3. Information by major customer
This information is omitted because no net sales from external customers accounted for 10% or more of that on the
consolidated statements of income.
For the fiscal year ended March 31, 2024
1. Information by product and service(Thousands of yen)
Aerial work platforms
Net sales to externalcustomers

Inspection & repair

35,568,391

5,821,565

Other
11,739,321

Total
53,129,278

2. Information by geographic area
(1) Net sales
This information is omitted because net sales to external customers in Japan account for more than 90% of net
sales shown in the consolidated statements of income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment in Japan accounts for more than
90% of that in the consolidated balance sheets.
3. Information by major customer
This information is omitted because no net sales from external customers accounted for 10% or more of that on the
consolidated statements of income.

37

Information on Impairment Loss on Non-current Assets by Reportable Segment
For the fiscal year ended March 31, 2023
(Thousands of yen)
Reportable segment
Speciallyequipped vehicles

Other
Parts & repair

Subtotal

Elimination/
Corporate

Total

Impairment
–
–
–
–
–
losses(Notes) 1. “Other” represents the used vehicles sales such as aerial work platforms, education business, and so forth.

606

2. Although impairment loss was incurred on idle assets, it is difficult to allocate the loss to each reportable segment.
Therefore, only the total amount is presented.

For the fiscal year ended March 31, 2024
(Thousands of yen)
Reportable segment
Speciallyequipped vehicles

Other
Parts & repair

Subtotal

Elimination/
Corporate

Total

Impairment
–
–
–
–
–
losses(Notes) 1. “Other” represents the used vehicles sales such as aerial work platforms, education business, and so forth.

415

2. Although impairment loss was incurred on idle assets, it is difficult to allocate the loss to each reportable segment.
Therefore, only the total amount is presented.

Information on Amortization and Unamortized Balance of Goodwill by Reportable Segment
As of March 31, 2023 and 2024
There are no applicable items.
Information on Gain on Bargain Purchase by Reportable Segment
As of March 31, 2023 and 2024
There are no applicable items.

38

Related Parties
1. Related party transactions
Transactions between the Company filing the consolidated financial statements and its related parties
Parent company and major shareholders (limited to companies, etc.) of the Company filing consolidated financial
statements
For the fiscal year ended March 31, 2023
Type

Parentcompany

Name of theCapitalEquityDescription ofrelatedLocation (thousands ofownershipbusinesscompanyyen)
percentage

ToyotaIndustries
Corporation

Kariyashi,
Aichi

Manufactureand sale ofautomobiles,
industrial
vehicles, andtextilemachinery,etc.

80,462,672

53.9

Relationship with therelated party

Nature oftransactions

Sale of speciallyequipped vehicles aswell as sale andpurchase of their parts; Deposits paid
concurrent(Net)*
appointments ofofficers; and deposits offunds

Transaction
Balance atamountyear-end
Account(thousands of(thousands of
yen)
yen)

968,463

Deposits
paid

37,865,486(Note) Commercial terms and conditions* With regards to deposits paid, the Company conducted transactions using CMS (Cash Management Service) operated by
Toyota Industries Corporation, and charged a reasonable interest on deposits paid in accordance with market interest rates.
The transaction amount is indicated on a net value basis.

For the fiscal year ended March 31, 2024
Type

Parentcompany

Name of theCapitalEquityDescription ofrelatedLocation (thousands ofownershipbusinesscompanyyen)
percentage

ToyotaKariyaIndustries-shi,
Corporation Aichi

80,462,672

Manufactureand sale ofautomobiles,
industrial
vehicles, andtextilemachinery,
etc.

54.3

Nature oftransactions

Transaction
amount(thousands ofyen)Sale of speciallyequipped vehicles aswell as sale andpurchase of their parts; Deposits paid
concurrent(Net)*
appointments ofofficers; and deposits offunds

37,865,486

Relationship with therelated party

Balance at
year-end
Account(thousands ofyen)

Deposits
paid–(Note) Commercial terms and conditions* With regards to deposits paid, the Company conducted transactions using CMS (Cash Management Service) operated by
Toyota Industries Corporation, and charged a reasonable interest on deposits paid in accordance with market interest rates.
After full consideration of future capital needs and the environment surrounding the Company, the entire amount deposited
with CMS has been transferred to a bank. The transaction amount is indicated on a net value basis.

2. Notes on the parent company and significant affiliates(1) Information about the parent company
Toyota Industries Corporation (listed on the Tokyo Stock Exchange and the Nagoya Stock Exchange)(2) Condensed financial information of significant affiliates
There are no applicable items.

39Per Share Information(Yen)
For the fiscal year
ended March 31, 2023
Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2024
1,044.71

1,096.95

79.16

70.26

(Notes) 1. Basic earnings per share (diluted) is not stated as there are no shares with a dilutive effect.
2. The basis for the calculation of basic earnings per share was as follows:(Thousands of yen unless otherwise stated)
For the fiscal year
ended March 31, 2023
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to commonshareholders of parent
Average number of common shares
outstanding during the period (thousand
shares)Subsequent Events
There are no applicable items.

40

For the fiscal year
ended March 31, 2024

5,958,103

5,270,078––

5,958,103

5,270,078

75,26875,010(v) Annexed Consolidated Detailed Schedules
Annexed Consolidated Detailed Schedule of Corporate Bonds
There are no applicable items.
Annexed Consolidated Detailed Schedule of Borrowings
Category(Thousands of yen unless otherwise stated)
Balance at beginning Balance at end of Average interest rate
Repayment dueof period
period(%)

Short-term borrowings

–

–

–

–

Current portion of long-term borrowings

–

–

–

–

94,14872,642

–

–

–

–

–

–

214,152

183,348–

May 30, 2025 throughAugust 23, 2032

–

–

–

–

308,300

255,990––

Current portion of lease liabilities
Long-term borrowings (except for current
portion)Lease liabilities (except for current
portion)
Other interest-bearing debt
Total

(Notes) 1. The average interest rate on lease liabilities is not stated because these liabilities are recorded on the consolidated balance
sheets in the amount before deducting the amount equivalent to interest included in the total lease payments.
2. Annual repayment schedule of lease liabilities (except for the current portion) and other interest-bearing debt over a
period of five years from the fiscal year-end is as follows:(Thousands of yen)
Due after one year
Due after two years Due after three years Due after four years
Category
through two years
through three years
through four years
through five years
Lease liabilities

52,14340,32633,344

26,581

Annexed Consolidated Detailed Schedule of Asset Retirement Obligations
This information is omitted as the beginning and ending balances of asset retirement obligations for the fiscal
year ended March 31, 2024 were one percent or less of the total beginning and ending balances of liabilities andnet assets of the fiscal year ended March 31, 2024.

41

(2) Other Information
Quarterly financial information for the fiscal year ended March 31, 2024
Cumulative period

First three months

First six months

First nine months

Full year

Net sales(Thousandsof yen)10,606,020

26,395,450

38,728,799

53,129,278

Profit before income
taxes(Thousandsof yen)936,8112,873,564

4,793,711

7,487,206

Profit attributable toowners of parent(Thousandsof yen)664,161

2,045,892

3,406,240

5,270,078

Basic earnings per
share

(Yen)

8.83

27.20

45.33

70.26

Accounting period
Basic earnings per
shareFirst Quarter(Yen)

Second Quarter

8.83

18.37

42

Third Quarter
18.13

Fourth Quarter
25.00

2. Non-consolidated Financial Statements, etc.
(1) Non-consolidated Financial Statements(i) Non-consolidated Balance Sheets(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Deposits paid

186,934*2 37,865,486

40,839,768–

1,885,769*3 3,301,753

1,522,811

2,086,301

20,006,760
1,004,451

11,715,904
2,770,963

Work in process
Raw materials and supplies

1,175,882
1,199,929

1,570,699
1,329,006

Short-term loans receivable
Other

66,765
1,224,903–
550,542*1 66,139,694:1 64,164,939

Buildings
Structures

5,793,536
529,424

5,907,638
473,129

Machinery and equipment
Vehicles

1,468,358
27,2501,209,509
28,069Tools, furniture and fixtures
Land

149,994
8,523,400

177,2078,522,521

Construction in progress
Other

341,940
262,839

134,614226,317

17,096,745

16,679,007

752
214,072658
265,866

Notes receivable – trade
Electronically recorded monetary
operatingAccounts receivable – trade
Merchandise and finished goods

claims–Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Right to use water facilities
SoftwareOther

33,24920,156

Total intangible assets

248,074

286,68043

(Thousands of yen)
As of March 31, 2023
Investments and other assets
Investment securities

As of March 31, 2024

6,959,086

7,066,511

1,010

1,080

1,420,530

1,420,530

140,576
55,06094,76753,455

Other
Allowance for doubtful accounts

17,238(6,653)

15,625(5,301)

Total investments and other assets

8,586,848

8,646,668

25,931,668

25,612,356

92,071,363

89,777,295

Notes payable – trade
Electronically recorded obligations – operating

716,495
3,849,666

1,097,968
2,817,383

Accounts payable – trade
Accounts payable – other5,762,250
744,278

3,590,069
611,060

Accrued expenses
Income taxes payable

1,420,484
1,371,163

1,349,944
862,617

237,459
302,020–
324,503

431

475

38,00038,000153,065

133,476

169,025

48,617

7,675

12,569Investments in capital
Investments in capital of subsidiaries andassociates
Long-term prepaid expenses
Guarantee deposits

Total non-current assets
Total assets
Liabilities
Current liabilities

Accrued consumption taxes
Deposits received
Unearned revenue
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Notes payable – facilities
Electronically recorded obligations – operatingfacilities
Other
Total current liabilities

94,14872,642*1 14,866,163*1 10,959,328

229,718
616,302526,201
616,3021,454,954
253,294

1,414,234
222,859

Non-current liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Other
Total non-current liabilities
Total liabilities

44

2,554,271

2,779,599

17,420,434

13,738,927

(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Net assets
Shareholders’ equity
Share capital
Capital surplus

10,425,325

10,425,325

Legal capital surplus

9,941,842

9,941,842

Total capital surplus

9,941,842

9,941,842

52,025,180

53,278,547

52,025,180

53,278,547

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

45

(313)

(8,939)72,392,034

73,636,774

3,882,938

4,025,637(1,624,044)(1,624,044)

2,258,894

2,401,593

74,650,928

76,038,368

92,071,363

89,777,295

(ii) Non-consolidated Statements of Income(Thousands of yen)
For the fiscal year
ended March 31, 2023
Net sales
Cost of sales
Gross profit

For the fiscal year
ended March 31, 2024

*1 59,981,126*1 52,956,747*1 47,316,902*1 41,562,121

12,664,223

11,394,626*1,2 5,377,209*1,2 5,176,021

7,287,013

6,218,605

Non-operating income
Interest and dividend income

866,987

186,590

Foreign exchange gains
Other

46,011
54,92016,17533,385*1 967,918*1 236,152

Selling, general and administrative expenses
Operating profit

Total non-operating income
Non-operating expenses
Other

933

1,987

*1 933*1 1,987

8,253,999

6,452,770

Gain on sale of non-current assets
Gain on sale of investment securities

755
406,591763
469,008

Total extraordinary income

407,347

469,771

3,864
6,650

998
–

Impairment losses
Loss on liquidation of subsidiaries and associates606*3 3,524

415–

Total extraordinary losses

14,645

1,414

Profit before income taxes

8,646,700

6,921,127

Income taxes – current

2,189,589

1,984,865

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities

Income taxes – deferred

102,487234,780

Total income taxes

2,292,077

2,219,645

Profit

6,354,623

4,701,481

46

(iii) Non-consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders’ equity
Capital surplus

Retained earnings

Other capitalsurplus

Total capitalsurplus

Other retained
earnings
Retained earnings
brought forward–

9,941,842

49,439,001

49,439,001

Dividends of surplus(2,790,323)(2,790,323)

Profit

6,354,623

6,354,623

Share capital

Balance at beginning of
periodLegal capitalsurplus10,425,325

9,941,842

Total retained
earnings

Changes during period

Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

(8)

(8)

(978,113)(978,113)

978,121

978,121(978,121)(978,121)

–

–

–

–

2,586,178

2,586,178

10,425,325

9,941,842–

9,941,842

52,025,180

52,025,180

Shareholders’ equity

Treasury shares

Balance at beginning of
period(646,937)

Valuation and translation adjustments

Valuation difference
Total valuation andTotal shareholders’
Revaluation reserveon available-for-saletranslation
equityfor landsecurities
adjustments
69,159,232

4,085,430(1,624,044)

2,461,385

Total net assets

71,620,617

Changes during period
Dividends of surplus(2,790,323)(2,790,323)

Profit

6,354,623

6,354,623(331,569)(331,569)(331,569)

78

70

70

978,113

–

–

–

–

Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(202,491)–(202,491)(202,491)

646,623

3,232,802(202,491)–(202,491)

3,030,310(313)

72,392,034

3,882,938(1,624,044)

2,258,894

74,650,92847

For the fiscal year ended March 31, 2024
(Thousands of yen)
Shareholders’ equity
Capital surplus

Retained earnings

Other capitalsurplus

Total capitalsurplus

Other retained
earnings
Retained earnings
brought forward–

9,941,842

52,025,180

52,025,180

Dividends of surplus(2,858,014)(2,858,014)

Profit4,701,481

4,701,481

Share capital

Balance at beginning of
periodLegal capitalsurplus10,425,325

9,941,842

Total retained
earnings

Changes during period

Purchase of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(590,100)(590,100)

590,100

590,100(590,100)(590,100)

–

–

–

–

1,253,366

1,253,366

10,425,325

9,941,842–

9,941,842

53,278,547

53,278,547

Shareholders’ equity

Treasury shares

Balance at beginning of
period(313)

Valuation and translation adjustments

Valuation difference
Total valuation andTotal shareholders’
Revaluation reserveon available-for-saletranslation
equityfor landsecurities
adjustments
72,392,034

3,882,938(1,624,044)

2,258,894

Total net assets

74,650,928

Changes during period
Dividends of surplus(2,858,014)(2,858,014)

Profit4,701,481

4,701,481(598,726)(598,726)(598,726)

590,100

–

–

–

–

Purchase of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

142,698–

142,698

142,698(8,625)

1,244,740

142,698–

142,698

1,387,439(8,939)73,636,774

4,025,637(1,624,044)

2,401,593

76,038,368

48

Notes to Non-consolidated Financial Statements
Significant Accounting Policies
1. Valuation of securities(1) Available-for-sale securities
Securities other than shares, etc., that do not have a market price:
Stated at fair value(Net unrealized gains or losses are reported as a separate component in net assets, net of applicable income
taxes. Gains and losses on disposition are computed mainly based on the moving average method.)
Shares, etc., that do not have a market price:
Stated at cost, cost mainly being determined by the moving average method.
(2) Shares of subsidiaries and affiliates
Stated at cost, cost being determined by the moving average method.
2. Valuation of inventories
Inventories are stated at cost (write-down due to decreased profitability).
(1) Finished goods and work in process are evaluated using the specific identification method.
(2) Raw materials are evaluated using the moving average method.
(3) Supplies are stated at cost, cost being determined by the last purchase price method.
3. Valuation of derivatives
Derivatives are stated at fair value.

4. Method of depreciation or amortization of non-current assets(1) Property, plant and equipment (except for leased assets) are depreciated by the declining-balance method.
However, buildings (except for facilities attached to buildings) acquired on and after April 1, 1998 and facilities
attached to buildings and structures acquired on and after April 1, 2016 are depreciated by the straight-line method.
(2) Intangible assets (except for leased assets) are amortized based on the straight-line method.
In addition, software for internal use is amortized by the straight-line method over their estimated useful lives(five years).
(3) Leased assets
Leased assets related to finance lease transactions that do not transfer ownership
Depreciation of leased assets is computed by the straight-line method over the lease period deemed as useful lives
with no residual value.
(4) Long-term prepaid expenses are amortized by the straight-line method.
5. Allowances and provisions(1) Allowance for doubtful accounts
The Company provides for estimated losses on accounts receivable based on prior bad debt experience and areview of existing receivable balances. The Company reviews individual financial conditions for doubtful or
troubled receivables and provides for losses on uncollectible amounts. In addition, a general reserve for otheraccounts receivable is provided based on historical loss experience for certain past periods.
(2) Provision for bonuses for directors (and other officers)
The Company provides for estimated payment of bonuses to directors.
(3) Provision for product warranties
The Company provides for estimated warranty costs based on the Company’s prior experience and estimated costs
to be incurred individually calculated for certain products.
49

(4) Provision for retirement benefits
The Company provides for estimated cost for future severance payments to employees based on the actuarial
present value of retirement benefit obligations and pension plan assets.
(i) Method of attributing projected benefit obligation to periods
In calculating retirement benefit obligations, the projected benefit obligation attributed to the current fiscal
year is determined using the benefit formula basis.
(ii) Calculation treatment for actuarial gains or losses and prior service costs
Actuarial gains or losses are amortized in the fiscal year following the fiscal year in which the gain or loss isrecognized by the straight-line method over a fixed period (10 years), which is shorter than the averageremaining years of service of the employees.
Prior service costs are amortized when the prior service costs are recognized by the straight-line method overa fixed period (10 years), which is shorter than the average remaining years of service of the employee.
6. Accounting standards for revenue and expense recognition
The Company manufactures and sells specially equipped vehicles such as digger derricks, aerial work platforms andskid-steer loaders, sells their parts, and provides after-sales services such as repairs. The Company also provides
training in the operation of aerial work platforms, etc. The Company usually recognizes revenue from the sales ofthese products and the provision of these services when they are accepted by customers because customers obtain
control of these products and services, and the performance obligations are satisfied when the products and services
are accepted by customers. However, the Company recognizes revenue from the sole domestic sales of parts at their
shipment by applying the alternative treatment as stipulated in Paragraph 98 of the “Implementation Guidance on
Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30) when the period between the shipment andthe transfer of control of these parts to customers falls under the usual period.
There are cases where long-term maintenance contracts are concluded with customers as an after-sales service
business and customers receive benefits from the provision of these services as the performance obligations are
satisfied. The Company recognizes revenue from these services over the contract periods because the performanceobligations of these services are satisfied over time.
For parts supply transactions for fees relating to specially equipped vehicles for which manufacturing consignment
agreements are received from customers, the Company recognizes revenue from the sales of these specially equipped
vehicles at the amounts excluding the amounts of parts supplied for fees.
7. Hedge accounting
Deferred hedge accounting is applied.
Designated hedge accounting (“Furiate-shori”) is applied for foreign currency forward contracts that meet
qualifications for designated hedge accounting.
8. Summary of Other Significant Accounting Policies
Retirement benefits
The accounting treatment for unrecognized actuarial differences for retirement benefits differ from that of theconsolidated financial statements.

50Significant Accounting Estimates
Provision for product warranties(1) Amounts recognized in the non-consolidated financial statements as of March 31, 2024
(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

153,065

133,476(2) Information on the significant accounting estimates of the identified items
The provision for product warranties is categorized into a provision for free repairs carried out within the warranty
period and a provision for free repairs to rectify defects in specific products.
For the provision for free repairs carried out within the warranty period, future product warranty expenses are
estimated and recognized in a lump sum based on the actual ratio of warranty expenses incurred to sales.
For specific products subject to measures for rectifying defects, expected product warranty expenses are estimatedand recognized individually based on the number of units to be rectified, the estimated cost of repair per unit, thepercentage of the units that have actually been repaired, and the percentage of the liability shared with suppliers.
If liabilities arise due to product defects that were not expected when the estimates were made for the provision,or if warranty expenses exceed the provision, it may become necessary to recognize additional provision for
product warranties.
Meanwhile, if the actual warranty expenses turn out to be smaller than the provision, a reversal of the provision
will be recognized.

51

Non-consolidated Balance Sheets*1 Assets and liabilities associated with subsidiaries and affiliates (excluding those presented as separate lines) were as
follows:(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Short-term receivables

38,718,760

608,596

Short-term payables

277,701

284,312*2 Deposits paid represent the amount of funds deposited with “Cash Management Service” operated by Toyota
Industries Corporation, the parent company of the Company.
*3 Notes maturing at the end of the fiscal year are settled on the clearance date of the notes. Because the last day of the
fiscal year fell on a holiday of financial institutions, the following notes maturing on the last day of the fiscal year
were included in the balance at the end of the fiscal year.
(Thousands of yen)
As of March 31, 2023
Notes receivable – trade

As of March 31, 2024–

52

814,019

Non-consolidated Statements of Income*1 Transactions with subsidiaries and affiliates were as follows:(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales

2,261,237

2,684,052

Goods purchased
Selling, general and administrative
expensesNon-operating transactions

2,072,890

3,111,991

59,627

12,506

4,147

13,006*2 Major items of selling, general and administrative expenses, their amounts and approximate composition were as
follows:(Thousands of yen)
For the fiscal year
ended March 31, 2023
Salaries and allowances
Provision for bonuses for directors (andother officers)
Retirement benefit expenses

For the fiscal year
ended March 31, 2024

2,109,437

2,073,022

33,647

34,591

142,486

100,998

Depreciation

296,949

277,148

Packing and delivery expenses

456,202504,437

Approximate composition
Selling expenses

44%

44%

General and administrative expenses

56%

56%

*3 Loss on liquidation of subsidiaries and associates
For the fiscal year ended March 31, 2023
This loss was incurred due to a resolution made to liquidate AICHI AUS PTY LTD, a consolidated subsidiary of
the Company.
For the fiscal year ended March 31, 2024
There are no applicable items.

53

Deferred Tax Assets and Liabilities
1. The significant components of deferred tax assets and liabilities were as follows:(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Deferred tax assets:
Inventories
Accrued enterprise tax and businessoffice tax
Provision for product warranties

108,380

99,71586,73061,95046,62340,657

Accrued bonuses

297,637

300,654

Provision for retirement benefits

552,835

437,727

Land

569,744569,871

Investment securities

121,561

120,482

Other
Subtotal of deferred tax assets
Valuation allowance

458,874

375,213

2,242,388

2,006,271(931,026)(929,690)

Total deferred tax assets

1,311,361

1,076,581

Deferred tax liabilities:
Valuation difference on availablefor-sale securities
Other(1,532,200)(1,593,903)(8,880)(8,880)Total deferred tax liabilities(1,541,080)(1,602,783)

Deferred tax liabilities (Net)(229,718)(526,201)

2. The significant components of deferred tax assets and liabilities in relation to revaluation reserve for land were as
follows:(Thousands of yen)
As of March 31, 2023
Deferred tax assets:
Unrealized loss on land revaluation
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gain on land revaluation
Total deferred tax liabilities
Deferred tax liabilities (Net)

As of March 31, 2024

923,260
923,260(923,260)–

923,260
923,260(923,260)–(616,302)(616,302)(616,302)(616,302)(616,302)(616,302)

3. The reconciliation between the effective statutory tax rate and the actual effective tax rate after applying tax effectaccounting was as follows:
As of March 31, 2023

As of March 31, 2024

30.5%

30.5%

Effective statutory tax rate
Adjustments:
Expenses not deductible for income tax purposes (e.g.,entertainment expenses)
Income not taxable for income tax purposes (e.g.,
dividend income)Corporate inhabitant tax on per capita basis
Withholding tax, etc. on dividends from foreign
affiliates
Changes in valuation allowance

0.3%

0.3%

(2.4%)(0.2%)

0.5%

0.6%

–%

1.1%

(1.3%)–%

Other(1.1%)(0.2%)

Effective tax rate after applying tax effect accounting

26.5%

32.1%

54

Revenue Recognition
The description on the useful information in understanding revenue arising from contracts with customers is omitted as
it is stated in “Notes to Consolidated Financial Statements, Revenue recognition.”
Subsequent Events
There are no applicable items.

55

(iv) Annexed Non-consolidated Detailed Schedules
Annexed Non-consolidated Detailed Schedule of Property, Plant and Equipment, etc.
(Thousands of yen)
Category
Property, plantand equipment

Type of assets

Increase
Decrease Amortization Balance at end of Accumulated
during period during period for the period
perioddepreciation

Buildings

5,793,536

521,524

7,857

399,564

5,907,638

10,582,632

Structures

529,424

44,363

46

100,612473,129

2,323,812

1,468,358

288,3610547,2101,209,509

8,235,665

Vehicles27,25017,4600

16,64028,06981,339Tools, furnitureand fixtures

149,994

109,742

082,530177,2072,632,337

8,523,400[(1,007,741)]

–

879
(415)

–

8,522,521[(1,007,741)]–

Construction inprogress

341,940

337,312544,638–

134,614–

Other

262,839

42,189–78,711

226,317505,936

17,096,745

1,360,954

553,421(415)

1,225,271

16,679,007

24,361,724

752

–

–

94

658

–

Software214,072

182,216

33,14597,276

265,866–

Other

33,249––13,093

20,156–

248,074

182,216

33,145

110,464

286,680–

Machinery andequipment

Land

Subtotal
Intangible
assetsBalance at
beginning of
periodRight to use water
facilities

Subtotal(Notes) 1. The figure shown in parentheses for decrease during period of land represents the amount of impairment loss recorded.
2. The figures shown in square brackets for balance at beginning of period and balance at end of period of land represent
differences from the book value before the revaluation of land for business use performed pursuant to the “Act on
Revaluation of Land” (Act No. 34, promulgated on March 31, 1998).

Annexed Non-consolidated Detailed Schedule of Provisions
Category

Balance at beginning
Increase during periodof period

Decrease during
period(Thousands of yen)
Balance at end of
periodAllowance for doubtful accounts

6,653

321

1,673

5,301

Provision for bonuses for directors (andother officers)

38,00034,591

34,591

38,000

Provision for product warranties

153,065

62,16981,758133,476(2) Components of Major Assets and Liabilities
This information is omitted because the Group has prepared the consolidated financial statements.
(3) Other
There are no applicable items.

56