Consolidated Financial Results
for the Year Ended March 31, 2024
[Japanese GAAP]May 10, 2024
Company name: Toshiba Tec Corporation
Stock exchange listing: Tokyo
Code number: 6588
URL: https://www.toshibatec.co.jp/
Representative: Hironobu Nishikori
President and CEO
Contact:
Akira Abe
General Manager of Corporate Communications Division
Phone 03-6830-9151
Scheduled date of Annual General Meeting of Shareholders: June 28, 2024
Scheduled date of commencing dividend payments: June 7, 2024
Scheduled date of filing annual securities report: June 28, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
548,135
7.3
15,854(1.4)
11,004(16.3)(6,707)
March 31, 2024
510,767
14.7
16,07839.0
13,14928.9(13,745)
March 31, 2023
(Note) Comprehensive income:¥
5,092 million [- %]Fiscal year ended March 31, 2024:¥(12,749) million [- %]Fiscal year ended March 31, 2023:
Basic earnings
Diluted earnings
Rate of return on Ordinary profit
Operating profit
per shareper share
equityto total assets
to net sales ratio
Yen
Yen
%
%
%
Fiscal year ended(123.92)
(7.3)
3.4
2.9
March 31, 2024
March 31, 2023
(248.37)(13.2)
4.2
3.1(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2024:¥- million
Fiscal year ended March 31, 2023:¥- million(Note) Diluted earnings per share is not presented even though the Company has issued potential shares, because basic earnings per
share was net loss.
(2) Consolidated Financial Position
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Total assets

Net assets

Million yen

Million yen

337,509
310,692

As of March 31, 2024:
As of March 31, 2023:¥¥

Capital adequacy ratio

96,236102,206
88,060 million
96,195 million%

Net assets per share
Yen

26.1
31.0

1,663.74
1,738.02

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Million yen

19,411
15,106

Cash flows frominvesting activities
Million yen(16,135)(12,117)

Million yen(3,624)(8,103)

Million yen

48,581
43,815

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end

Total

Dividends to
net assets
Payout ratio(consolidated) (consolidated)

Total
dividends

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2023

-

20.00

-

20.00

40.00

2,213

-

2.1

March 31, 2024

-

20.00

-

25.00

45.00

2,381

-

2.6

Fiscal year ending
March 31, 2025
(Forecast)

-

20.00

-

25.00

45.00

11.9

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

550,000
0.3
18,00013.5
15,000 36.3
20,000377.86(Note) For details of consolidated financial results forecast for the fiscal year ending March 31, 2025, please refer to “1. Summaryof consolidated business results, etc. (4) Future outlook” on page 5 of this report.
*Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
57,629,140 shares
March 31, 2023:
57,629,140 shares2) Total number of treasury shares at the end of the period:
March 31, 2024:
4,700,044 shares
March 31, 2023:
2,281,668 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

54,120,759 shares
55,341,901 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Million yen

Operating profit%

268,846
230,912

16.4
(0.7)

Basic earnings
per share

Million yen

Ordinary profit%

1,282(10,073)-

Million yen

31,9395,884

Net income
%

442.7
62.5

Million yen

%

8,954
(8,064)-

Diluted earnings
per share

Yen
Yen
Fiscal year ended
March 31, 2024
165.45165.40March 31, 2023
(145,72)(Note) Diluted earnings per share for the fiscal year ended March 31, 2023 is not presented even though the Company has issued potential
shares, because basic earnings per share was net loss.

(2) Non-consolidated Financial Position
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Total assets

Net assets

Million yen

205,706
196,123
As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio

Million yen¥¥

70,637
72,951
70,617 million
72,907 million

Net assets per share

%

Yen

34.3
37,2

1,334.19
1,317.27*Financial results reports are exempt from the audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts, and other special matters(Explanation for the proper use of earnings forecasts)
Financial results forecasts are based on information currently available to the Company and certain assumptions deemed reasonable,
and are not intended to be the Company’s guarantee that they will be achieved. Actual results may significantly vary due to a variety offactors.
For the assumptions used as the basis for the earnings forecasts and precautions regarding the use of the earnings forecasts, please refer
to “1. Summary of consolidated business results, etc. (4) Future outlook” on page 5 of this report.

Table of Contents of Attachments
1. Summary of consolidated business results, etc. ............................................................................................................................ 2(1) Summary of consolidated business results etc. for the period under review ............................................................. 2(2) Financial condition ................................................................................................................................................... 3(3) Overview of cash flows ............................................................................................................................................ 4(4) Future outlook .......................................................................................................................................................... 5
2. Basic approach to selection of accounting standards ................................................................................................... 6
3. Consolidated Financial Statements and Notes ............................................................................................................. 7(1) Consolidated balance sheet....................................................................................................................................... 7(2) Consolidated statement of income and comprehensive income ............................................................................... 9
Consolidated statement of income ........................................................................................................................... 9
Consolidated statement of comprehensive income ................................................................................................ 10(3) Consolidated statement of changes in net assets ..................................................................................................... 11(4) Consolidated statement of cash flows .................................................................................................................... 13(5) Notes to the consolidated financial statements ....................................................................................................... 14
Notes on going concern assumption....................................................................................................................... 14
Additional information........................................................................................................................................... 14
Segment information .............................................................................................................................................. 14
Per share information ............................................................................................................................................. 16
Significant subsequent events ................................................................................................................................ 17
4. Supplementary information ....................................................................................................................................... 20(1) Changes in information about financial results ...................................................................................................... 20(2) Changes in reportable segment information ........................................................................................................... 21(3) Changes in net sales by destination market ............................................................................................................ 22(4) Changes in proportion of overseas production by value ........................................................................................ 22(5) Changes in resource inputs ..................................................................................................................................... 22

1

1. Summary of consolidated business results, etc.
(1) Summary of consolidated business results etc. for the period under review
Consolidated business results for the fiscal year ended March 31, 2024
The world economy for the fiscal year ended March 31, 2024 picked up moderately overall, as thenormalization of economic activities progressed after the COVID-19 pandemic receded. However, theoutlook still remained uncertain due mainly to price rises, ongoing monetary tightening overseas, China’s
economic slowdown, and the heightened geopolitical risks.
Amid such conditions, Toshiba Tec Corporation (the “Company”) and its subsidiaries (collectively, the“Group”) have been pursuing the Basic Policy of the FY23-25 Mid-term Business Plan, “To become a global
top solutions partner by generating new value through co-creation with the aim of contributing to theresolution of social issues.” Under the basic policy, the Group has focused its energy on carrying out various
measures toward sustainable growth. At the same time, the Group has strived to contribute to the resolutionof social issues by executing business transformation and corporate transformation.
In the fiscal year ended March 31, 2024, net sales were ¥548,135 million (up 7% year on year) due mainly
to increased sales of POS systems for the domestic market and multifunction peripherals (MFPs), and theimpact of foreign exchange rates. On the profit front, despite the profitability of MFPs improved significantly
and the improvement in profit and loss of POS systems for the domestic market, while the profit and loss of
POS systems for the overseas markets deteriorated significantly, resulting in operating profit of ¥15,854
million (down 1% year on year) and ordinary profit of ¥11,004 million (down 16% year on year). And on theloss attributable to owners of parent front, the reversal of deferred tax assets at some U.S. subsidiaries under
the Retail Solutions Business Group and other factors, resulting in ¥6,707 million (compared with loss
attributable to owners of parent of ¥13,745 million in the previous fiscal year).
Regarding the year-end dividend for the fiscal year ended March 31, 2024, as a result of comprehensive
consideration of the above business results, the business environment, stable dividend payments and otherfactors, the Company has decided to pay a dividend of ¥25 per share, which is increased by ¥5 compared to theyear-end dividend for the previous fiscal year. We would like to seek approval of shareholders.
Results of reportable segments for the fiscal year ended March 31, 2024 were as follows.

Retail Solutions Business GroupThe Retail Solutions Business Group handles POS systems for domestic and overseas markets, auto ID
systems for domestic market, and related products. Amid a severe business environment in which intensifying
competition with peers continues, the business group has worked on expanding its solution business throughthe global retail platform “ELERA” and strategic partnership, boosting recurring revenue business, andinvesting in retail innovation to expand new businesses (strengthening digital human resources, ELERA
Evolution, enhancing co-creation opportunities, and strengthening partner collaboration).
Sales of POS systems for the domestic market increased due to efforts to expand sales mainly of selfcheckout systems, payment terminals, and smart receipts, as well as efforts to revise selling prices, despite
continued harsh conditions reflecting soaring raw material prices, rising prices, and other factors.
Sales of POS systems for overseas markets decreased significantly, due mainly to a decrease in sales of
hardware and software in the United States, primarily to major customers, and a decrease in sales of hardwarein Europe, and other factors, amid a decline in demand caused by a delay in the timing of investment bycustomers due to an increase in uncertainty about overseas market conditions.
Sales of auto ID systems for the domestic market increased, primarily due to an increase in the number ofunits sold of portable printers thanks to strong sales of mobile printers.
As a result, net sales of the Retail Solutions Business Group were ¥311,004 million (up 5% year on year).
Operating profit of the business group was ¥2,251 million (down 76% year on year), reflecting thedeterioration in profit and loss in overseas markets due to a decrease in sales of POS systems and an increase
in research expenses, etc. for future growth despite the improved profitability of POS systems for thedomestic market.

2

Workplace Solutions Business Group
The Workplace Solutions Business Group handles multifunction peripherals (MFPs) for domestic andoverseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets, andrelated products. Amid a severe business environment in which the declining printing volume due to postCOVID-19 work style reforms and office DX promotion and intensifying competition with peers continue,
the business group focused on increasing basic earnings power of core business. At the same time, thebusiness group worked on developing the auto ID business, document and data solutions, and customer
support business in order to expand business in growth areas.
Sales of MFPs increased due to the impact of foreign exchange rates in addition to strong sales in theAmericas, Europe, and other regions, reflecting a recovery from product supply disruptions and increased
selling prices.
Sales of auto ID systems for overseas markets declined as a result of decreased sales in the Americas,
Europe, Asia, and other overseas regions.
Sales of inkjet heads decreased due mainly to decreased sales to overseas customers.
As a result, net sales in the Workplace Solutions Business Group were ¥241,631million (up 11% year onyear). Operating profit for the business group soared to ¥13,602 million (up 98% year on year) due to theincrease in net sales resulting from recovery from product supply disruptions, the increased selling prices andother factors and effects of structural reform and structural transformation implemented so far, etc.
(Note) An auto ID system is a system that uses hardware and software devices to recognize and manage data
content by automatically scanning barcode and RFID tag data.
(2) Financial condition
Status of Assets, Liabilities and Net Assets
Assets at the end of the fiscal year ended March 31, 2024 increased by ¥26,817 million from the end of
the previous fiscal year to ¥337,509 million. This was mainly because cash and deposits, notes andaccounts receivable - trade, and contract assets, merchandise and finished goods, and “Other” in current
assets increased by ¥5,905 million, ¥12,227 million, ¥5,590 million and ¥3,054 million, respectively, andretirement benefit asset in investments and other assets increased by ¥8,093 million, although deferred
tax assets in investments and other assets declined by ¥9,079 million.
Liabilities increased by ¥32,786 million from the end of the previous fiscal year to ¥241,272 million.
This was mainly because notes and accounts payable – trade, current portion of long-term borrowings, and“Other” in current liabilities increased by ¥11,678 million, ¥3,696 million, and ¥5,740 million,
respectively, and long-term borrowings in non-current liabilities increased by ¥8,952 million.
Net assets decreased by ¥5,969 million from the end of the previous fiscal year to ¥96,236 million. Thiswas primarily due to a decrease in retained earnings owing to the recording of loss attributable to owners ofparent of ¥6,707 million, the payment of dividends of ¥2,165 million and a decrease due to additionalpurchase of treasury shares of ¥8,687 million, although foreign currency translation adjustment,
remeasurements of defined benefit plans and non-controlling interests increased by ¥5,198 million, ¥4,712
million and ¥2,189 million, respectively.

3(3) Overview of cash flows
Status of cash flows
An overview of cash flows during the fiscal year ended March 31, 2024 is as follows.
Net cash provided by operating activities was ¥19,411 million (compared with an inflow of ¥15,106 million
in the previous fiscal year), reflecting profit before income taxes of ¥9,857 million and depreciation andamortization totaling ¥17,382 million, partly offset by income taxes paid of ¥8,145 million.
Net cash used in investing activities was ¥16,135 million (compared with an outflow of ¥12,117 million in
the previous fiscal year), reflecting outlays for purchase of property, plant and equipment and intangible
assets and other outflows.
As a result of the above, free cash flow amounted to an inflow of ¥3,276 million (compared with an inflowof ¥2,989 million in the previous fiscal year).
Net cash used in financing activities was ¥3,624 million (compared with an outflow of ¥8,103 million in theprevious fiscal year), reflecting purchase of treasury shares of ¥8,745 million, repayments of finance leaseliabilities of ¥4,570 million, repayments of long-term borrowings of ¥4,027 million, and dividends paid of¥2,163 million, partly offset by proceeds from long-term borrowings of ¥16,272 million.
As a result of the above, the balance of Group funding in the fiscal year ended March 31, 2024 (cash andcash equivalents in the consolidated statement of cash flows) increased by ¥4,766 million from the end of theprevious fiscal year to ¥48,581 million.

Source of Group capital and capital liquidity
Needed funding is secured internally by the Group from retained earnings, and basic liquidity is secured
through autonomous funding generated by reduction of assets and increased rates of asset efficiency; funds
are procured from financial institutions and other sources as needed.
Outlook for cash flows in the next fiscal year
In operating and investing activities, the Company will work to generate free cash flow mainly by increasing
earnings and improving the efficiency of its cash conversion cycle (CCC) and of its investments.
Trends in cash flow indicators
Fiscal year ended

March 2020

March 2021

March 2022

March 2023

March 2024

Capital adequacy ratio

30.3%

35.5%

36.1%

31.0%

26.1%

Capital adequacy ratio based on market value

64.8%

77.1%

87.6%

69.7%

47.7%

Debt redemption years

1.3 years

2.9 years

2.5 years

1.8 years

2.0 years

Interest Coverage Ratio

40.7

18.2

20.0

29.0

16.2

(Notes) Capital adequacy ratio: Equity / Total assets
Capital adequacy ratio based on market value: Market capitalization / Total assets
Market capitalization = Stock market price× (Total number of issued shares - Number of treasury shares)
Debt redemption years: Interest-bearing debt / Cash flows from operating activities
Interest Coverage Ratio: Cash flows from operating activities / Interest expense*In all cases, calculations are based on consolidated-basis financial values.
*Interest-bearing debt refers to all of those obligations recorded in the consolidated balance sheets that are subject to interest
payments.
Interest payments are stated as “interest paid” in the consolidated statement of cash flows.

4(4) Future outlook
Despite the expectation of gradual recovery, prospects for the global economy are expected remain
uncertain due to concerns about economic slowdowns such as monetary tightening overseas, the slowdown
in China's economic growth and other issues, coupled with the impact of heightened geopolitical risks andfluctuations in the financial capital market and other issues.
Against this backdrop, and in line with its basic policy, “To become a global top solutions partner bygenerating new value through co-creation with the aim of contributing to the resolution of social issues,” theGroup will work in concert to take a range of measures toward sustainable growth.
Specifically, the Group will work on building an ecosystem through co-creation with partners byleveraging its physical assets, namely its global customer base and sales and maintenance networks, topropose highly value-added solutions with the aim of contributing to the resolution of social issues, as wellas enhancing corporate value.
Major policies for each reportable segment in the fiscal year ending March 31, 2025 are as follows.

Retail Solutions Business GroupThe Group will expand marketing of mainstay products, such as POS systems for domestic and overseas
markets, auto ID systems for the domestic market and related products in these fields, and provide totalsolutions to promote customers' Digital Transformation (DX) products.
Furthermore, the Group will reinforce existing businesses through expanding its solution business throughthe global retail platform “ELERA” and strategic partnership, tailor sales and marketing to regional markets,
boost recurring revenue business, optimize marketing service networks, and accelerate new businesses toimprove profitability.
Workplace Solutions Business GroupThe Group plan to expand sales of our mainstay MFPs in overseas and domestic markets, auto ID systems
in overseas markets, and inkjet heads in domestic and overseas markets, as well as related products. At thesame time, we will work to construct a robust, lean global operational network and bolster earnings
structures by tailoring sales and marketing to local regions, optimizing marketing service networks andstrengthening businesses in emerging countries.
Furthermore, the Company plan to transfer the Group's business of the development and manufacturing of
MFPs and auto ID systems to ETRIA CO., LTD. (Registered name : ETRIA CO., LTD.) (Note), the joint
venture between the Company and Ricoh, effective from July 1, 2024.
Moreover, the Company plan to transfer all of the Group's business of the inkjet head to RISO
Technologies Corporation, a wholly-owned subsidiary of RISO KAGAKU CORPORATION, effective from
July 1, 2024.
(Note) The current registered name of the joint venture company is Ricoh Technologies Company, Ltd.,but it is planned to change to ETRIA CO., LTD., effective from July 1, 2024.

5

In addition to the above policies, the consolidated financial results forecast for the fiscal year ending March
31, 2025, based on the anticipated sales of POS systems for overseas markets in the Retail Solutions
Business Group that were postponed from the fiscal year ended March 31, 2024, and other factors, is asfollows.
Consolidated

Net sales

550.0

billion yen

Operating profit

18.0

billion yen

Ordinary profit

15.0

billion yen

Profit attributable to owners of parent

20.0

billion yen

The above performance forecasts assume average exchange rates of ¥145 to the dollar and ¥155 to the euro
for the fiscal year ending March 31, 2025.
Due to the business transfer to ETRIA CO., LTD. and RISO Technologies Corporation, approximately¥19,500 million (planned) is expected to record as a gain on business transfer to extraordinary income. This
extraordinary income is included in profit attributable to owners of parent.
* Financial results forecasts are based on information currently available to the Company and certain
assumptions deemed reasonable, and are not intended to be the Company’s guarantee that they will beachieved. Actual results may significantly vary due to a variety of factors.

2. Basic approach to selection of accounting standards
To ensure creative growth, the Group has set a basic policy for rigorous financial discipline and will work tocentralize operational administration and information disclosure based on unified global rules as well as
strengthen financial governance. To speed up these activities, and to further facilitate cross-border comparisonsof financial information in capital markets, the Group plans to voluntarily adopt the International Financial
Reporting Standards (IFRS); the timing of this transition is now under discussion.

63. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Million yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Group deposits paid

42,687
1,137

48,592-

Notes and accounts receivable - trade, and contract
assets74,29386,520

Merchandise and finished goods

37,616

43,206Work in process

5,967

2,749

Raw materials and supplies

11,884

12,734Other

28,17331,227

Allowance for doubtful accounts(1,185)(1,458)

Total current assets

200,575

223,572

26,78527,730

Accumulated depreciation(20,658)(21,327)

Buildings and structures, net

6,126

6,403

Machinery, equipment and vehicles

58,582

68,150

Accumulated depreciation(48,046)(52,695)

Machinery, equipment and vehicles, net

10,536

15,454Non-current assets
Property, plant and equipment
Buildings and structures

Tools, furniture and fixtures

40,46839,838

Accumulated depreciation(35,528)(35,279)

4,940

4,559

1,275

1,280

Tools, furniture and fixtures, net
Land
Leased assets

46,756

49,622

Accumulated depreciation(25,504)(31,218)

Leased assets, net

21,252

18,404

Construction in progress

1,041

2,137

Total property, plant and equipment

45,173

48,239557

357

Intangible assets
Goodwill
Customer relationship assets

213

142

Other

10,315

11,070Total intangible assets

11,086

11,569Investment securities

11,103

10,586Retirement benefit asset

8,748

16,841

Deferred tax assets

21,134

12,055

Other

13,27915,051

(408)

(408)

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets

53,857

54,126

Total non-current assets

110,117

113,936

310,692

337,509

Total assets

7

(Million yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade54,167

Short-term borrowings

1,779

2,871

-

3,696

Lease liabilities

6,652

6,434

Accounts payable - other

28,15928,937

Income taxes payable

5,177

5,245

Unearned revenue

19,317

21,742Other

35,292

41,032

Total current liabilities

150,546

175,807

Long-term borrowings

2,581

11,533

Lease liabilities

15,804

14,833Retirement benefit liability

28,722

28,037

Other

10,832

11,061

Total non-current liabilities

57,94065,465

208,486

241,272

39,97039,970Current portion of long-term borrowings

65,845

Non-current liabilities

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

902

950

Retained earnings

40,01731,145

Treasury shares(4,695)(13,382)

Total shareholders' equity

76,19558,683

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,525

1,013

(40)

46

Foreign currency translation adjustment

18,131

23,330

Minimum pension liability adjustments

(212)

(320)

Remeasurements of defined benefit plans

595

5,307

19,99929,376

Share acquisition rights

43

19

Non-controlling interests

5,966

8,156

102,206

96,236

310,692

337,509

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets8(2) Consolidated Statement of Income and Comprehensive Income
Consolidated Statement of Income(Million yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales

510,767

548,135

Cost of sales

311,115

326,930

Gross profit

199,651

221,204

Selling, general and administrative expenses

183,572

205,350

Operating profit

16,07815,854332

570

Dividend income

76

79

Gain on valuation of derivatives

86-

Gain on sale of non-current assets

-

35

509

423

1,005

1,109

584

1,180

Non-operating income
Interest income

Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives

-

1,069

1,487

1,478

Loss on sale and retirement of non-current assets

107

251

Commission expenses

405

50

Other

1,349

1,927

Total non-operating expenses

3,934

5,959

13,14911,004Gain on sale of investment securities

45

292

Total extraordinary income

45

292

-

37

Foreign exchange losses

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss of noncurrent assets
Loss on sale of investment securities-

9

Loss on valuation of investment securities

819

697

Restructuring cost
Loss on reversal of foreign currency translation
adjustment due to liquidation of overseas subsidiaries
Loss on litigation

371

695

392

-

6,900

-

Total extraordinary losses

8,484

1,440

Profit before income taxes

4,710

9,857

Income taxes – current

8,141

7,584

Income taxes - deferred

9,848

7,133

Total income taxes

17,98914,718Loss(13,279)(4,861)

466

1,845

(13,745)(6,707)

Profit attributable to non-controlling interests
Loss attributable to owners of parent

9Consolidated Statement of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2024

For the fiscal year
ended March 31, 2023
Loss

(13,279)(4,861)

(100)

(512)

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Minimum pension liability adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

(52)

86

2,720

5,775

482

(107)

(2,519)

4,712

529

9,953

(12,749)

5,092

Comprehensive income attributable to
Owners of parent
Non-controlling interests

10(13,623)

2,670

874

2,421

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

(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period

Capital surplus

Retained earnings

854

55,97739,970Total shareholders'equityTreasury shares(4,733)92,068Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
period(2,213)(2,213)(13,745)(13,745)

47

Balance at end of period

(6)

(6)

45

92

–

47

(15,959)38(15,873)

39,970902

40,017(4,695)76,195

Accumulated other comprehensive income

Balance at beginning of
periodValuation
Total
Minimum RemeasureDeferred
Foreigndifference
accumulated
pensionments ofgains or currency
otheron availableliability defined benefit
losses on translation
comprehensive
for-saleadjustment adjustment
hedgesplans
securities
income1,626

12

15,819

(694)

3,114

19,877

Share
Nonacquisition controllingrightsinterests

48

5,667

Total net
assets117,662

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(2,213)(13,745)
(6)
92
(100)

(52)

2,312

482

(2,519)

121

(4)

299

416

(100)

(52)

2,312

482

(2,519)

121

(4)

299

(15,456)

1,525

(40)

18,131(212)

595

19,99943

5,966

102,20611

For the fiscal year ended March 31, 2024
(Million yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings

902

40,01739,970Treasury shares

Total shareholders'equity(4,695)76,195

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
period(2,165)(2,165)(6,707)(6,707)

48

Balance at end of period(8,745)(8,745)

57

105

–

48

(8,872)(8,687)(17,511)39,970950

31,145(13,382)

58,683

Accumulated other comprehensive income

Balance at beginning of
periodValuation
Total
Minimum RemeasureDeferred
Foreigndifference
accumulated
pensionments ofgains or currency
otheron availableliability defined benefit
losses on translation
comprehensive
for-saleadjustment adjustment
hedgesplans
securities
income1,525(40)

18,131(212)

595

19,999Share
Nonacquisition controllingrightsinterests

43

5,966

Total net
assets102,206

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(2,165)(6,707)(8,745)
105
(512)

86

5,198

(107)

4,712

9,377

(24)

2,189

11,542

(512)

86

5,198

(107)

4,712

9,377

(24)

2,189

(5,969)1,013

46

23,330

(320)

5,307

29,37619

8,156

96,23612

(4) Consolidated Statement of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Loss (gain) on sale of investment securities
Impairment loss of noncurrent assets
Loss (gain) on valuation of investment securities
Restructuring cost
Loss on reversal of foreign currency translation
adjustment due to liquidation of overseas subsidiaries
Loss on litigation
Interest and dividend income
Interest expenses
Loss (gain) on sale and retirement of non-current
assetsIncrease (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Payment for extra retirement payments
Payments for loss on litigation
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Net decrease (increase) in short-term loans receivable
Long-term loan advances
Proceeds from collection of long-term loans receivable
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of finance lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
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

4,710
16,755
(45)
819
371

13

For the fiscal year
ended March 31, 2024
9,857
17,382
(282)
37
697
695

392

-

6,900
(408)
584

(650)
1,180

107

215

(22)
(3,967)
1,620
1,991(4,710)9
25,108
404
(520)
(958)
(3,500)(6,251)
824
15,106129(2,158)(2,333)
2,059
1,893
2,868
31,591652(1,201)(432)(3,400)(8,145)346
19,411(0)(8,331)239(2,673)
(950)
80
3
(0)
4

(0)
(12,412)428(3,454)(1,261)
540
(2)
(0)
1

(531)

-

42
(12,117)

27(16,135)

388(7,679)
2,541
(559)
(6)
(2,213)(574)(8,103)(4,570)16,272(4,027)(8,745)(2,163)(390)(3,624)

2,219

5,114

(2,894)46,70943,815

4,766
43,81548,581

(5) Notes to the consolidated financial statements
Notes on going concern assumption
Not applicable
Additional information
At the fiscal year ended March 31, 2024, as a result of careful assessment of the recoverability ofdeferred tax assets due to the deterioration in financial results amid a decline in demand caused by adelay in the timing of investment by customers due to an increase in uncertainty about market
conditions at some U.S. subsidiaries under the Retail Solutions Business Group, a portion of deferred
tax assets of ¥15,100 million was reversed and the same amount was recorded as Income taxes deferred.

Segment information
1. Outline of reportable segments(1) Determination of reportable segments
The Company’s reportable segments are the business units for which the Company is able to obtainrespective financial information separately for the Board of Directors to conduct periodic investigations
to determine distribution of management resources and evaluate the Group’s business results.
In order to take a leading role in the business environment and enable the Company to provide all
customers with solutions that are one step ahead, the Group has decided to add two new reporting
segments, the “Retail Solutions Business Group” and the “Workplace Solutions Business Group,”
through a separated classification of business management structure by product and service.
(2) Type of products and services belonging to each reportable segment
The Retail Solutions Business Group develops, manufactures, sells, and maintains POS systems fordomestic and overseas markets, auto ID systems for domestic market, and related products.
The Workplace Solutions Business Group develops, manufactures, sells, and maintains multifunction
peripherals (MFPs) for domestic and overseas markets, auto ID systems for overseas markets, inkjet
heads for domestic and overseas markets, and related products.
2. Method of calculation of the amounts of net sales, profit or loss, assets and others by reportablesegment
The accounting treatment methods used for reportable business segments are generally the same as
the accounting treatment methods used in the compilation of the consolidated financial statements.
Intersegment sales and transfers are based on actual market prices.

143. Amounts of net sales, profit or loss, assets and others by reportable segment
I Fiscal year ended March 31, 2023
Reportable segments
Retail Solutions
Net sales
Sales to external customers

Workplace
Solutions(Million yen)

Adjustment(Note) 1

Total

Consolidated
amount(Note) 2

296,915

213,851

510,767－

510,767

36

3,820

3,857

(3,857)－

296,951

217,672

514,624(3,857)510,767

Segment profit

9,196

6,882

16,078－16,078Segment assets

138,275

154,675

292,950

17,741

310,692

4,125

12,084

16,210－16,210

－

544

544

－

544

Intersegment sales and transfers
Total

Other items
Depreciation and amortization
Amortization of goodwill

Increase in property, plant and－
5,185
12,365
17,55017,550equipment and intangible assets(Notes) 1. Adjustments totaling ¥17,741 million in segment assets chiefly comprise surplus operating funds (cash) and longterm investment funding (investment securities, etc.) at companies submitting reports.
2. Segment profit corresponds with operating profit in the consolidated statement of income.

II Fiscal year ended March 31, 2024

(Million yen)
Reportable segments

Retail Solutions
Net sales
Sales to external customers
Intersegment sales and transfers
Total

Workplace
Solutions

Adjustment(Note) 1

Total

Consolidated
amount(Note) 2

310,865

237,269

548,135－

548,135

138

4,361

4,500

(4,500)－311,004

241,631552,635(4,500)548,135

Segment profit

2,251

13,60215,854－15,854

Segment assets

143,118

172,972

316,090

21,419337,509

4,175

12,96617,141－

17,141

－

240

240

－

240

5,491

16,43421,926－21,926

Other items
Depreciation and amortization
Amortization of goodwill
Increase in property, plant andequipment and intangible assets(Notes) 1. Adjustments totaling ¥21,419 million in segment assets chiefly comprise surplus operating funds (cash) and longterm investment funding (investment securities, etc.) at companies submitting reports.
2. Segment profit corresponds with operating profit in the consolidated statement of income.

15Per share information
For the fiscal year ended March 31, 2023

For the fiscal year ended March 31, 2024

Net assets per share

1,738.02 yen Net assets per share

1,663.74 yen

Basic earnings per share (loss)(248.37) yen Basic earnings per share (loss)(123.92) yen(Note) 1. Diluted earnings per share is not presented even though the Company has issued potential shares, because basic
earnings per share was net loss.
2. The bases for calculation of earnings per share (loss) is as follows.
For the fiscal year
ended March 31, 2023
Loss attributable to owners of parent (million yen)

For the fiscal year
ended March 31, 2024

(13,745)(6,707)

Amount not attributable to common stockholders (million yen)－－

Loss attributable to owners of parent related to common stock(million yen)

(13,745)(6,707)Weighted average number of common shares outstanding
during the period (thousands of shares)

55,341

54,120－－Overview of dilutive stock not included in calculations ofdilutive earnings per share due to the absence of dilutive effect16

Significant subsequent events
The Conclusion of the Absorption-Type Company Split Agreement with RISO Technologies
Corporation
On December 22, 2023, the Company concluded an agreement (the “Definitive Agreement”) withRISO KAGAKU CORPORATION (“RISO KAGAKU”) to transfer the inkjet head businesses (the“Target Business”) of the Company and Tec Precision Co., Ltd. (“TPI”), a wholly-owned subsidiary of
the Company, from the Company and TPI to a subsidiary (the “Succeeding Company”) to be newly
established by RISO KAGAKU, through the method of an absorption-type company split (collectively,
the “Absorption-Type Company Split”).
In order to implement the Absorption-Type Company Split, at the Board of Directors meeting held on
April 23, 2024, the Company resolved to conclude an absorption-type company split agreement with theSucceeding Company, and concluded the absorption-type company split agreement on the same day. On
the same day, TPI’s General Meeting of Shareholders also resolved to conclude an absorption-typecompany split agreement between TPI and the Succeeding Company, and concluded the absorption-typecompany split agreement on the same day.
Outline of the Absorption-Type Company Split is as follows.
1. Purpose of the Absorption-Type Company Split
Under the basic policy of the Mid-Term Business Plan (FY2023-FY2025) of “becoming a global
top solutions partner by generating new value through co-creation with the aim of contributing to theresolution of social issues”, the Group is focusing its efforts on implementing various measures toachieve sustainable growth while also considering the composition of its business portfolio with aneye toward future growth, implementing business transformation and corporate transformation, andstriving to contribute to solving social issues.
The Target Business is a business that demonstrates the advanced manufacturing capabilities of
the Group based on its technology and has been a major contributor to the Group’s growth.
However, while the Company is considering optimizing management resources through theselection and concentration of our businesses to be a global top solutions partner, the Company has
judged that it requires a strong partner to expand the scope of its solutions to accelerate the business
transformation of the Target Business and deliver new value.
RISO KAGAKU possesses advanced technology and development capabilities in the inkjet printerfield. In addition, the Company has set forth a management policy to expand the inkjet business, andby integrating the Target Business with RISO KAGAKU, it will be possible to effectively invest
resources, and the Company believes significant growth can be expected from the additional increasein added value.
For the above reasons, in order to transfer the Target Business to RISO KAGAKU, the Company
has decided that the Company and TPI entered into absorption-type company split agreements with
the Succeeding Company (collectively, the “Absorption-Type Company Split Agreement”), andthereby conduct the Absorption-Type Company Split to transfer the Target Business to theSucceeding Company.

17

2. Summary of the Absorption-Type Company Split(1) Schedule of the Absorption-Type Company Split
Company

TPI

Date of resolution of the Board of Directors
concerning the conclusion of the Definitive
Agreement

December 22, 2023

December 22, 2023

Date of conclusion of the Definitive Agreement

December 22, 2023

December 22, 2023

Date of resolution of the Board of Directors
concerning the conclusion of the AbsorptionType Company Split Agreement

April 23, 2024

April 23, 2024

Date of resolution of the General Meeting of
Shareholders concerning the conclusion of theAbsorption-Type Company Split Agreement-

April 23, 2024

Date of conclusion of the Absorption Type
Company Split Agreement

April 23, 2024

April 23, 2024

Date of establishment of the Succeeding
Company

April 1, 2024

April 1, 2024

Effective date of the Absorption-Type Company
Split

July 1, 2024 (planned)

July 1, 2024 (planned)(Notes) 1. Within the Absorption-Type Company Split, the absorption-type company split that will be conducted by theCompany will be a simplified absorption-type company split pursuant to Article 784, Paragraph 2 of theCompanies Act, and will therefore be conducted without the Company needing to obtain approval for theabsorption-type company split agreement at the General Meeting of Shareholders.
2. The above schedule is the planned schedule as of the date of this release, but it may be changed in the future
upon consultation with RISO KAGAKU.

(2) Method of the Absorption-Type Company Split
The method of the absorption-type company split is the Company and TPI as the companies
splitting in the Absorption-Type Company Split, and the Succeeding Company as the company
succeeding in the Absorption-Type Company Split.
(3) Details of allotment pertaining to the Absorption-Type Company Split
The Company and TPI will receive a total amount of ¥6,436 million in cash from the Succeeding
Company as consideration for the rights and obligations to be transferred in the Absorption-Type
Company Split.
The amounts to be received in cash by the Company and TPI will be ¥6,114 million and ¥322
million, respectively.
(4) Rights and obligations to be transferred to the Succeeding Company
Assets, liabilities, agreements and other rights and obligations related to the Target Business willbe transferred to the Succeeding Company, to the extent set forth in the Absorption-Type Company
Split Agreement.
3. Basis for the Details of the Allotment Pertaining to the Absorption-Type Company Split(1) Basis and reason for details of the allotment
The parties concerned have agreed to conduct an allotment for the Absorption-Type Company
Split as described above as a result of repeated earnest discussions, comprehensively taking into
consideration factors such as the earnings status and future prospects of the Target Business to be
split from the Company and TPI through the Absorption-Type Company Split.
(2) Matters concerning calculation
The Company and TPI have not obtained a valuation report from a valuation institution for theAbsorption-Type Company Split.
184. Overview of the Succeeding Company (as of April 1, 2024)(1) Name

RISO Technologies Corporation(2) Address

5-34-7 Shiba, Minato-ku, Tokyo(3) Title and Name of Representative

Oshima Kenji, Representative Director(4) Main Business

Development, manufacture, sale, etc. of inkjet heads and related products(5) Share Capital¥ 400 million(6) Date of Establishment

April 1, 2024

(7) Major Shareholders and their
Shareholding Ratios

RISO KAGAKU: 100%

(8) Relationship with the Companies Involved
Capital Relationship

N/A

Personnel Relationship

N/A(Note) On and after the effective date of the Absorption-Type Company Split,
the Company and TPI plan to second employees from the Company and TPI
to the Succeeding Company.

Business Relationship

N/A

Status as Related Party

N/A

5. Details of the Business to be Split
Details of the business of the division to be split
Company: Development, manufacture and sale of inkjet heads and related products, etc.
TPI: Manufacture of inkjet heads, etc.
6. Reportable segments in which the divested business is included
Workplace Solutions Business Group*Notes considered immaterial to presentation of financial results statements have been omitted indisclosures.

19

4.Supplementary information(1) Changes in information about financial results[Consolidated](Million yen)

For the fiscal year ended
March 31,2023

For the fiscal year ended
March 31,2024

For the fiscal year ending
March 31, 2025
(Forecast)

510,767

548,135

550,000

Year-on-year change

115%

107%

100%

Operating profit

16,07815,85418,000Year-on-year change

139%

99%

114%

Ordinary profit

13,14911,00415,000Year-on-year change

129%

84%

136%

(13,745)(6,707)20,000－－－

Basic earnings per share (loss) (yen)(248.37)(123.92)377.86

Number of consolidated subsidiaries

67

66

undecided

135.11143.81145.00140.86156.27155.00Description
Net sales

Profit (loss) attributable to owners ofparentYear-on-year change

Average exchange rate
(Yen to the US dollar)
Average exchange rate
(Yen to the euro)[Non-consolidated]
Description
Net sales(Million yen)
For the fiscal year ended
March 31,2023

For the fiscal year ended
March 31,2024

230,912

268,846

Year-on-year change

99%

116%

Operating profit (loss)(10,073)

1,282

Year-on-year change－－

Ordinary profit

5,884

31,939Year-on-year change

163%

543%

Profit (loss)(8,064)

8,954

－

－

40.00

45.00

(145.72)

165.45Year-on-year change
Annual dividend per share (yen)Basic earnings per share (loss) (yen)20(2) Changes in reportable segment information[Consolidated net sales]
Description(Million yen)

For the fiscal year ended
March 31,2023

Retail Solutions Business GroupFor the fiscal year ended For the fiscal year ending
March 31, 2025
March 31,2024(Forecast)

296,951

311,004

318,000

111%

105%

102%

217,672

241,631

235,000

120%

111%

97%

Subtotal

514,624552,635

553,000

Elimination(3,857)(4,500)(3,000)Total

510,767

548,135

550,000

115%

107%

100%

Year-on-year change
Workplace Solutions Business Group
Year-on-year change

Year-on-year change(Note) Net sales for each business are included in “Intersegment sales and transfers.”[Consolidated operating profit]
Description(Million yen)
For the fiscal year ended
March 31,2023

For the fiscal year ended For the fiscal year ending
March 31, 2025
March 31,2024(Forecast)

Retail Solutions Business Group

9,196

2,251

8,000

Operating profit margin

3.1%

0.7%

2.5%

Workplace Solutions Business Group

6,882

13,602

10,000Operating profit margin

3.2%

5.6%

4.3%

Total

16,07815,85418,000Operating profit margin

3.1%

2.9%

3.3%

21

(3) Changes in net sales by destination market[Changes in net sales by destination market / Consolidated]
Description

For the fiscal year ended
March 31,2023

Japan

198,97234%

36%

183,988

194,32936%

36%

94,94899,48219%

18%

57,30455,35011%

10%510,767

548,135

100%

100%

Percentage of consolidated net sales
EuropePercentage of consolidated net sales
Other
Percentage of consolidated net sales
Total

For the fiscal year ended
March 31,2024

174,524

Percentage of consolidated net sales
Americas(Million yen)

Percentage of consolidated net sales(4) Changes in proportion of overseas production by value[Changes in proportion of overseas production by value / Consolidated]
Description

For the fiscal year ended
March 31,2023

Overseas ratio

For the fiscal year ended
March 31,2024

73%

74%

(5) Changes in resource inputs[Increase in property, plant and equipment and intangible assets / Consolidated]
Description

For the fiscal year ended
March 31,2023(Million yen)

For the fiscal year ended For the fiscal year ending
March 31, 2025
March 31,2024(Forecast)

Consolidated

17,55021,92617,000Year-on-year change

118%

125%

78%

[Research and development expenses / Consolidated]
Description(Million yen)

For the fiscal year ended
March 31,2023

For the fiscal year ended For the fiscal year ending
March 31, 2025
March 31,2024(Forecast)

Consolidated

24,531

29,82025,000Net sales ratio

4.8%

5.4%

4.5%

Year-on-year change

112%

122%

84%

[Number of employees at the end of the fiscal year / Consolidated]
Description

For the fiscal year ended
March 31,2023

Consolidated
Year-on-year change

22

For the fiscal year ended For the fiscal year ending
March 31, 2025
March 31,2024(Forecast)

18,906

19,093

16,200367

187(2,893)