AICHI CORPORATION
Annual Report(English Translation)

March 31, 2023

AICHI CORPORATION
Consolidated Balance Sheet
As of March 31, 2023
In Thousands of Yen
AssetsCurrent assets:
Cash and deposits¥

1,162,162

Deposits paid

37,865,486

Notes and accounts receivable – trade, and contract assets

23,471,637

Finished goods

1,065,423

Work in process

1,251,898

Raw materials and supplies

1,486,946

Other

1,249,447
67,553,002

Total current assets

Non-current assets:
Property, plant and equipment:
Buildings and structures

6,615,115

Machinery, equipment and vehicles

1,696,350

Tools, furniture and fixtures

175,392

Land

8,523,400

Construction in progress

341,940

Other

262,839
17,615,039

Total property, plant and equipment

601,208

Intangible assets
Investments and other assets:
Investment securities

6,959,086

Other

2,973,787

Allowance for doubtful accounts(6,653)

Total investments and other assets

9,926,220

Total non-current assets

28,142,468¥

Total assets

1

95,695,470

In Thousands of Yen
Liabilities
Current liabilities:
Notes and accounts payable – trade
Income taxes payable
Provision for bonuses for directors (and other officers)
Provision for product warranties

¥

Other

10,248,973
1,385,807
38,000153,065

Total current liabilities

3,069,956
14,895,802

Non-current liabilities:
Deferred tax liabilities for land revaluation
Retirement benefit liability
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities

616,302660,461
695,862
253,294
2,225,920
17,121,723

Net assets
Shareholders’ equity:
Share capital
Capital surplus
Retained earnings
Treasury shares

10,425,325
9,923,342
54,606,278(313)
74,954,632

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

2

3,882,938(1,624,044)
808,182552,038¥

3,619,115
78,573,747
95,695,470

AICHI CORPORATION
Consolidated Statement of Income
Fiscal Year from April 1, 2022 to March 31, 2023
In Thousands of Yen
Operating revenue:
Net sales¥

60,678,851

Operating costs and expenses:
47,627,170

Cost of sales

13,051,681

Gross profit

5,700,370

Selling, general and administrative expenses

7,351,310

Operating profit
Non-operating income:Interest and dividend income

183,588

Share of profit of entities accounted for using equity method

375,337

Foreign exchange gains

56,844

Other

51,487667,258

Non-operating expenses:
Other

2,492
2,492
8,016,076

Ordinary profit
Extraordinary income:Gain on sale of non-current assets

755

Gain on sale of investment securities

406,591
407,347

Extraordinary losses:
Loss on sale of non-current assets

170

Loss on retirement of non-current assets

6,461

Loss on valuation of investment securities

6,650

Impairment loss
Loss on liquidation of subsidiaries and associates
Compensation for damage

606
28,491
104,011
146,393
8,277,030
2,177,077

Profit before income taxes
Income taxes – current
Income taxes – deferred

141,849
2,318,927
5,958,103

ProfitProfit attributable to owners of parent

3¥5,958,103

AICHI CORPORATION
Consolidated Statement of Changes in Equity
Fiscal Year from April 1, 2022 to March 31, 2023
(In Thousands of Yen)
Shareholders’ equity

Items
Balance at beginning of period

SharecapitalCapitalsurplus10,425,325

Retainedearnings

9,923,342

Total
shareholders’equityTreasuryshares52,416,619(646,937)

72,118,350

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

Profit attributable to owners ofparent5,958,103

5,958,103

Purchase of treasury shares(331,569)(331,569)

(8)

78

70

Cancellation of treasury shares(978,113)

978,113–

Transfer from retained earnings
to capital surplus
Net changes of items other thanshareholders’ equity

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

Disposal of treasury shares

Total changes during period
Balance at end of period–

Accumulated other comprehensive income

Items
Balance at beginning of period

Valuation difference
on available-for-sale securities

Foreign currencytranslation
adjustment

Revaluation reserve for land

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

758,735

Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Transfer from retained earnings
to capital surplus
Net changes of items other thanshareholders’ equity(202,491)

49,447

Total changes during period(202,491)–

49,447

Balance at end of period

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

808,182

Accumulated other comprehensive income

Items

Total net assets
Remeasurements of defined benefit plans

Balance at beginning of period

705,280

Total accumulated other comprehensive income
3,925,401

76,043,752

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

Profit attributable to owners ofparent5,958,103

Purchase of treasury shares(331,569)

Disposal of treasury shares

70

Cancellation of treasury shares–

Transfer from retained earnings
to capital surplus
Net changes of items other thanshareholders’ equity–(153,242)(306,286)(306,286)

Total changes during period(153,242)(306,286)

2,529,995

Balance at end of period

552,038

3,619,115

78,573,747

4

AICHI CORPORATION
Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies
1. Basis of consolidation
The accounts of AICHI CORPORATION (the “Company”) and all of its 3 subsidiaries are included in the
consolidated financial statements.
Name of the consolidated subsidiaries
Zhejiang Aichi Industrial Machinery Co., Ltd.
AICHI NZ LIMITEDAICHI AUS PTY LTD
2.

Application of equity method(1) Overview of affiliates accounted for by the equity method
One affiliate is accounted for by the equity method.
Name of the affiliate
Hangzhou Aichi Engineering Vehicles Co., Ltd.
(2) Special matters concerning application procedures of the equity method
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 are calculated assuming the fiscal year end date is March 31.
4.

Accounting policies(1) Valuation method of significant assets(i) Inventories
Inventories are stated at cost (write-down due to decreased profitability).
Finished goods and work in process are evaluated using the specific identification method.
Raw materials are mainly stated at cost, cost being determined by the moving average method.
Supplies are stated at cost, cost being determined by the last purchase price method.

(ii) 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 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.

(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-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.

(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 leases other than those for which the ownership ofthe leased items is transferred to the lessee is computed by the straight-line method over the lease
period with no residual value.

5(3) Significant allowances and provisions(i) Allowance for doubtful accounts
The Company provides for estimated losses on accounts receivable based on prior bad debt experienceand a review 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 generalreserve for other accounts 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 andestimated costs 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
Actuarial gains or losses are amortized in the fiscal year following the fiscal year in which the gain orloss is recognized by the straight-line method over a fixed period (10 years), which is shorter than the
average remaining years of service of the employees.
(5) Hedge accounting
Deferred hedge accounting is applied.
Designated hedge accounting ("Furiate-shori") is applied for foreign currency forward contracts thatmeet qualifications for designated hedge accounting.
(6) Other important matters for preparing consolidated financial statements
Accounting standards for revenue and expense recognition
The Group manufactures and sells specially equipped vehicles such as digger derricks, aerial work
platforms and skid-steer loaders, sells their parts, and provides after-sales services such as repairs. The
Group also provides training in the operation of aerial work platforms, etc. The Group 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 performanceobligations are satisfied when the products and services are accepted by customers. However, the Group
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 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 performanceobligations are satisfied. The Group recognizes revenue from these services over the contract periods
because the performance obligations of these services are satisfied over time.
For parts supply transactions for fees relating to specially equipped vehicles for which manufacturingconsignment agreements are received from customers, the Group recognizes revenue from the sales ofthese specially equipped vehicles at the amounts excluding the amounts of parts supplied for fees.

6Changes in Accounting Policies due to Revision of Accounting Standard, etc.
(Adoption of Accounting Standard for Fair Value Measurement)
The Group has adopted the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) from the beginningof the current fiscal year, and in accordance with the transitional treatment prescribed in Paragraph 27-2 of the
Fair Value Measurement Guidance, the new accounting policies prescribed by the Fair Value Measurement
Guidance will be adopted prospectively.
This change has no impact on the consolidated financial statements.
Notes to Accounting Estimates
Provision for product warranties
The balance of provision for product warranties at the end of the fiscal year ended March 31, 2023 was¥153,065 thousand.
The provision for product warranties is categorized into a provision for free repairs carried out within thewarranty 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
estimated and recognized individually based on the number of units to be rectified, the estimated cost of repair
per unit, the percentage of the units that have actually been repaired, and the percentage of the liability sharedwith 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 an additional provision for
product warranties. Meanwhile, if the actual warranty expenses turn out to be smaller than the provision, areversal of the provision will be recognized.

7

Notes to Consolidated Balance Sheet
In Thousands of Yen
1. Accumulated depreciation of property, plant and equipment¥

24,425,390

2. Balances of receivables from contracts with customers and contract
assets
Notes receivable – trade
Accounts receivable – trade
Contract assets¥¥¥

3,408,581
20,063,056–

3. Balance of contract liabilities within other of current liabilities¥

174,141

4. Land revaluation
Pursuant to the Law Concerning Revaluation of Land (Law No. 34, March 31, 1998) and the Law toPartially Amend the Law Concerning Revaluation of Land (Law No. 19, March 31, 2001), the Company
revalued land used for business activities on March 31, 2002.
Pursuant to the Law to Partially Amend the Law Concerning Revaluation of Land (Law No. 24, March 31,
1999), the effect of this revaluation has been recorded as deferred tax liabilities for land revaluation in
liabilities and as revaluation reserve for land in net assets.
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 theOrdinance Implementing the Law Concerning Revaluation of Land (No. 119 of the 1998 Cabinet Order,
promulgated on March 31, 1998), respectively.
Revaluation date
Difference between the fair value at the end of the fiscal year
ended March 31, 2023 and the book value of the land after therevaluation

March 31, 2002¥(2,269,381) thousand

Notes to Consolidated Statement of Income
In Thousands of Yen
1. Amount of revenue from contracts with customers within net sales¥

60,678,851

2. Write-down due to decreased profitability of inventories held forsale in the ordinary course of business
Cost of sales¥

36,989¥28,491¥

104,011

3. Loss on liquidation of subsidiaries and associates
This loss was incurred due to a resolution made to liquidate AICHIAUS PTY LTD, a consolidated subsidiary of the Company.
4. Compensation for damage
This was a settlement of product liability involving Zhejiang Aichi
Industrial Machinery Co., Ltd., a consolidated subsidiary of theCompany.

8Notes to Consolidated Statement of Changes in Equity
1.

Class and number of issued sharesClass of shares

As of April 1, 2022

Common shares

Increase

Decrease–

76,395,901

As of March 31, 2023

1,184,501

75,211,400(Major cause of changes)
Decrease due to cancellation of treasury shares based on a
resolution made at a board meeting held on January 31, 2023

1,184,501 shares

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

Cash dividends(1) Amount of cash dividends
Resolution
Board meeting on
April 26, 2022
Board meeting on
October 26, 2022

Class of shares
Common shares

Amount of cash
dividends(Thousands of Yen)
1,511,731

Cash dividends
per share
(Yen)
20.00

1,278,591

17.00

Common shares

Effective date of
distribution

Record date
March 31, 2022

June 1, 2022

September 30, 2022

November 28, 2022

(2) Dividends whose record date falls in the fiscal year ended March 31, 2023, but the effective date of
distribution falls in the fiscal year ending March 31, 2024
Resolution(Planned)
Board meetingon April 25,
2023

Class of shares

Source ofdividends

Amount of cash
dividends

Common shares

Retainedearnings(Thousands of Yen)
1,429,009

9Cash dividends
per share

Record date

Effective dateof distribution

(Yen)
19.00

March 31, 2023

June 1, 2023

Notes to Financial Instruments
1. Status of financial instruments held by the GroupThe Group’s fund management is limited primarily to short-term deposits while working capital and capital
investments are financed by the Group’s own funds without borrowings from banks or other financial
institutions.
Credit risk of customers in respect to notes and accounts receivable – trade is mitigated by credit control.
Investment securities held by the Group are mainly shares in companies, and the fair value of listed shares areverified on a quarterly basis.
Regarding derivative transactions, we use forward exchange contracts in order to mitigate the exchange risks
associated with export transactions in the normal course of our business.
2. Fair value of financial instruments
Consolidated balance sheet amounts, fair values and their differences as of March 31, 2023 are as follows.
Shares, etc., that do not have a market price (with consolidated balance sheet amount of ¥355,660 thousand)are not included in available-for-sale securities under investment securities. Notes to cash are omitted. Notes
to deposits, deposits paid, notes and accounts receivable – trade, and contract assets, notes and accounts
payable – trade, and income taxes payable are omitted, because they are settled on short-term basis and theirbook values approximate their fair values.
(In Thousands of Yen)
Consolidated balance
sheet amount

Fair value

Difference

Investment securities
Available-for-salesecurities

6,603,426

6,603,426–

Total assets

6,603,426

6,603,426–

3.
Breakdown of fair value of financial instrument by appropriate classifications
The fair value of financial instruments is classified into the following three levels according to theobservability and materiality of inputs used to measure fair value.
Level 1 fair value: Fair value measured using (unadjusted) quoted prices in active markets for the sameassets or liabilities.
Level 2 fair value: Fair value measured using directly or indirectly observable inputs other than Level 1
inputs.
Level 3 fair value: Fair value measured using unobservable material inputs.
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement iscategorized in its entirety in the level of the lowest level input that is significant to the entire measurement.
(1) Financial assets measured at fair value(In Thousands of Yen)
Category
Investment securities
Available-for-salesecurities

Faire value
Level 1

Level 2

Level 3–

6,603,426

Total–

6,603,426(2) Financial assets and financial liabilities of which book value is not measured at fair value
Notes are omitted due to their insignificance.
Notes: A description of the valuation technique(s) and inputs used in the fair value measurements
Investment securities
Listed shares are valued using quoted prices. As listed shares are traded in active markets, their fairvalue is classified as Level 1.
Notes to Rental Property
Disclosure is omitted as the information is insignificant.

10Notes to Revenue Recognition
1. Information about breakdown of revenue from contracts with customers(1) Major regional markets(In Thousands of Yen)
Reportable segment

Japan
Asia
Other
Revenue from contracts withcustomers
Net sales to externalcustomers

Speciallyequipped vehicles
43,677,486
2,107,114
1,528,491

Parts & repair

Subtotal

Other(Note)

Total

11,787,432
791,684
130,240

55,464,918
2,898,798
1,658,732

656,401––

56,121,320
2,898,798
1,658,732

47,313,092

12,709,357

60,022,450

656,401

60,678,851

47,313,092

12,709,357

60,022,450

656,401

60,678,851(Note) The category “Other” is a business segment not included in the reportable segment and includes theused vehicles sales of aerial work platforms, etc., and education business, etc.
(2) Timing of revenue recognition(In Thousands of Yen)
Reportable segment
Speciallyequipped vehicles
Goods or services transferred
at a point in time
Goods or services transferredover time (Note 2)
Revenue from contracts withcustomers
Net sales to externalcustomers

Parts & repair

Subtotal

Other(Note 1)

Total

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

47,313,092

12,709,357

60,022,450

656,401

60,678,851(Notes)1. The category “Other” is a business segment not included in the reportable segment and includes the used
vehicles sales of aerial work platforms, etc., and education business, etc.
2. Goods or services transferred over time are those related to maintenance contracts.
2. Useful information in understanding revenue
Revenue is measured at consideration promised in contracts with customers less discounts, etc. The amountsof 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 aprovision for product warranties.

11

3.

Information for understanding revenue amount of the current and subsequent fiscal years(1) Balances of receivables from contracts with customers and contract liabilities
The balances of receivables from contracts with customers and contract liabilities at the beginning and endof period are as follows:(In Thousands of Yen)

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

Current fiscal year
(from April 1, 2022 to March 31, 2023)
18,608,241
23,471,637––
249,678
174,141

Contract liabilities are recorded under other of current liabilities. Contract liabilities are related toadvances received from customers based on the payment terms agreed with customers for contracts inwhich revenue from the sales, repair, etc., of specially equipped vehicles or their parts is recognized whenthose products or services are accepted by customers, and for contracts in which revenue is recognizedover time as the performance obligations for after-sales services are satisfied. Contract liabilities arereversed upon recognition of revenue.
Revenue recognized in the current fiscal year that was included in the contract liability balance at the
beginning of the period was ¥248,290 thousand.
The amount of revenue recognized in the current fiscal year from performance obligations that weresatisfied 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 ontransaction prices allocated to the remaining performance obligations, and do not disclose transaction
prices related to contracts with an original expected duration of one year or less. For maintenancecontracts with servicing periods longer than one year, the total transaction price allocated to the remaining
performance obligations and the time frame the Company expects to recognize the amount as revenue areas follows:(In Thousands of Yen)
Current fiscal year
(as of March 31, 2023)
Within one year
Over one year and within two years
Over two years and within three years
Over three years
Total

340,698
259,066
205,825507,639
1,313,229

Per Share Information
In YenNet assets per share
Profit per share¥

1,044.71
79.16

Notes to Subsequent Events
There are no applicable items.
Other Notes
There are no applicable items.

Notice to Readers:
Figures below the unit of presentation are discarded from the amounts in the accompanying financial statements
stated in thousands of yen.

12

AICHI CORPORATION
Non-consolidated Balance Sheet
As of March 31, 2023
In Thousands of Yen
AssetsCurrent assets:
Cash and deposits
Deposits paid
Notes receivable – trade
Electronically recorded monetary claims – operating
Accounts receivable – tradeFinished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other

¥

186,934
37,865,486
1,885,769
1,522,811
20,006,760
1,004,451
1,175,882
1,199,929
66,765
1,224,903
66,139,694

Total current assets
Non-current assets:
Property, plant and equipment:
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Other

5,793,536
529,424
1,468,358
27,250149,994
8,523,400
341,940
262,839
17,096,745

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

752
214,072
33,249248,074

Total intangible assets
Investments and other assets:
Investment securities
Investments in capital
Investments in capital of subsidiaries and affiliates
Long-term prepaid expenses
Guarantee deposits
Other
Allowance for doubtful accounts

6,959,086
1,010
1,420,530
140,576
55,06017,238(6,653)

Total investments and other assets
Total non-current assets
Total assets

8,586,848
25,931,668
92,071,363¥

13

In Thousands of Yen
Liabilities
Current liabilities:
Notes payable – trade¥

716,495

Electronically recorded obligations – operating

3,849,666

Accounts payable – trade

5,762,250

Accounts payable – other744,278

Income taxes payable

1,371,163

Accrued consumption taxes

237,459

Accrued expenses

1,420,484

Deposits received

302,020

Unearned revenue

431

Provision for bonuses for directors (and other officers)

38,000

Provision for product warranties

153,065

Notes payable – facilities

169,025

Electronically recorded obligations – facilities

7,675

Other

94,148
Total current liabilities

14,866,163

Non-current liabilities:
Deferred tax liabilities for land revaluation

616,302

Provision for retirement benefits

1,454,954

Deferred tax liabilities

229,718

Other

253,294
Total non-current liabilities

2,554,271

Total liabilities

17,420,434

Net assets
Shareholders’ equity:
10,425,325

Share capital
Capital surplus:
Legal capital surplus

9,941,842
9,941,842

Total capital surplus
Retained earnings:
Other retained earnings

52,025,180

Retained earnings brought forward

52,025,180

Total retained earnings

52,025,180(313)

Treasury shares

72,392,034

Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities

3,882,938

Revaluation reserve for land

(1,624,044)
2,258,894

Total valuation and translation adjustments

74,650,928

Total net assets¥

Total liabilities and net assets

14

92,071,363

AICHI CORPORATION
Non-consolidated Statement of Income
Fiscal Year from April 1, 2022 to March 31, 2023
In Thousands of Yen
Operating revenue:
Net sales¥

59,981,126

Operating costs and expenses:
47,316,902

Cost of sales

12,664,223

Gross profit

5,377,209

Selling, general and administrative expenses

7,287,013

Operating profit
Non-operating income:Interest and dividend income

866,987

Foreign exchange gains

46,011

Other

54,920967,918

Non-operating expenses:
Other

933
933
8,253,999

Ordinary profit
Extraordinary income:Gain on sale of non-current assets

755

Gain on sale of investment securities

406,591
407,347

Extraordinary losses:
Loss on retirement of non-current assets

3,864

Impairment loss

606

Loss on valuation of investment securities
Loss on liquidation of subsidiaries and associates

6,650
3,524
14,6458,646,700
2,189,589

Profit before income taxes
Income taxes – current
Income taxes – deferred

102,487
2,292,077¥

Profit15

6,354,623

AICHI CORPORATION
Non-consolidated Statement of Changes in Equity
Fiscal Year from April 1, 2022 to March 31, 2023
(In Thousands of Yen)
Shareholders’ equity
Items

Balance at beginning of period

Capital surplus

SharecapitalLegal capital surplus

10,425,325

Other capital surplus

Total capital surplus–

9,941,842

9,941,842

Changes during period
Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares

(8)

(8)

(978,113)(978,113)

978,121

978,121Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity
Total changes during period
Balance at end of period

–

–

–

–

10,425,325

9,941,842–

9,941,842

Shareholders’ equity
Items

Retainedearnings
Other retained earnings
Retained earnings brought
forwardBalance at beginning of period

Totalshareholders’equityTreasurysharesTotal retained
earnings

49,439,001

49,439,001(646,937)

69,159,232

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

Profit

6,354,623

6,354,623

6,354,623

Changes during period

Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity(331,569)(331,569)

78

70

978,113––(978,121)(978,121)

Total changes during period

2,586,178

2,586,178

646,623

3,232,802

Balance at end of period

52,025,180

52,025,180(313)

72,392,034

Items

Valuation difference on
available-for-salesecurities

Valuation and translation adjustments

Balance at beginning of period

Revaluation reserve forland

4,085,430

Total valuation andtranslation adjustments(1,624,044)

2,461,385

Total net assets

71,620,617

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

Profit

6,354,623

Purchase of treasury shares(331,569)

Disposal of treasury shares

70

Cancellation of treasury shares–

Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity–(202,491)(202,491)(202,491)

Total changes during period(202,491)–(202,491)

3,030,310

Balance at end of period

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

2,258,894

74,650,928

16

AICHI CORPORATION
Notes to Non-consolidated Financial Statements
Significant Accounting Policies
1. Valuation of 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 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. 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-balancemethod. In addition, 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 aredepreciated by the straight-line method.
(2) Intangible assets (except for leased assets) are amortized by the straight-line method. In addition,
software for internal use is amortized by the straight-line method over their estimated useful lives (fiveyears).
(3) Depreciation of leased assets regarding finance leases other than those for which the ownership of theleased items is transferred to the lessee is computed by the straight-line method over the lease periodwith 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 experienceand a review 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 generalreserve for other accounts 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 andestimated costs to be incurred individually calculated for certain products.

17

(4) Provision for retirement benefits
The Company provides for estimated cost for future severance payments to employees based on theactuarial 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
Actuarial gains or losses are amortized in the fiscal year following the fiscal year in which the gain orloss is recognized by the straight-line method over a fixed period (10 years), which is shorter than the
average remaining years of service of the employees.
6. Accounting standards for revenue and expense recognition
The Company manufactures and sells specially equipped vehicles such as digger derricks, aerial work
platforms and skid-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 of these products and the provision of these services when they are
accepted by customers because customers obtain control of these products and services, and the performanceobligations 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 and the transfer ofcontrol 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 performanceobligations are satisfied. The Company recognizes revenue from these services over the contract periods
because the performance obligations of these services are satisfied over time.
For parts supply transactions for fees relating to specially equipped vehicles for which manufacturingconsignment agreements are received from customers, the Company recognizes revenue from the sales ofthese 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. Other important matters for preparing non-consolidated financial statements
Accounting treatment for retirement benefits
The accounting treatment for unrecognized actuarial differences for retirement benefits differ from that of
the consolidated financial statements.

18

Changes in Accounting Policies due to Revision of Accounting Standard, etc.
(Adoption of Accounting Standard for Fair Value Measurement)
The Company has adopted the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) from the beginningof the current fiscal year, and in accordance with the transitional treatment prescribed in Paragraph 27-2 of the
Fair Value Measurement Guidance, the new accounting policies prescribed by the Fair Value Measurement
Guidance will be adopted prospectively.
This change has no impact on the non-consolidated financial statements.
Notes to Accounting Estimates
Provision for product warranties
The balance of provision for product warranties at the end of the fiscal year ended March 31, 2023 was¥ 153,065 thousand.
The provision for product warranties is categorized into a provision for free repairs carried out within thewarranty 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
estimated and recognized individually based on the number of units to be rectified, the estimated cost of repair
per unit, the percentage of the units that have actually been repaired, and the percentage of the liability sharedwith suppliers.
If liabilities arise due to product defects that were not expected when the estimates were made for theprovision, 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 theprovision, a reversal of the provision will be recognized.

19Notes to Non-consolidated Balance Sheet
In Thousands of Yen
1. Accumulated depreciation of property, plant and equipment¥

23,322,648

2. Receivables from and payables to subsidiaries and affiliates:
Short-term receivables
Short-term payables¥¥

38,718,760
277,701

3. Land revaluation
Pursuant to the Law Concerning Revaluation of Land (Law No. 34, March 31, 1998) and the Law toPartially Amend the Law Concerning Revaluation of Land (Law No. 19, March 31, 2001), the Company
revalued land used for business activities on March 31, 2002.
Pursuant to the Law to Partially Amend the Law Concerning Revaluation of Land (Law No. 24, March 31,
1999), the effect of this revaluation has been recorded as deferred tax liabilities for land revaluation in
liabilities and as revaluation reserve for land in net assets.
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 theOrdinance Implementing the Law Concerning Revaluation of Land (No. 119 of the 1998 Cabinet Order,
promulgated on March 31, 1998), respectively.
Revaluation date
Difference between the fair value at the end of the fiscal year
ended March 31, 2023 and the book value of the land after therevaluation

March 31, 2002

¥ (2,269,381) thousand

Notes to Non-consolidated Statement of Income
In Thousands of Yen
1. Transactions with subsidiaries and affiliates:
Operating transactions
Net sales
Goods purchased
Selling, general and administrative expenses
Non-operating transactions
2. Amount of revenue from contracts with customers within net
sales

3. Write-down due to decreased profitability of inventories held forsale in the ordinary course of business
Cost of sales
4. Loss on liquidation of subsidiaries and associates
This loss was incurred due to a resolution made to liquidate
AICHI AUS PTY LTD, a consolidated subsidiary of the Company.

20

¥
¥
¥
¥

2,261,237
2,072,890
59,627
4,147¥

59,981,126¥

62,156¥3,524

Notes to Non-consolidated Statement of Changes in Equity
Class and number of treasury sharesClass of shares

As of April 1, 2022

Common shares

809,314

Increase

Decrease

375,652

As of March 31, 2023

1,184,591(Major causes of changes)
Increase due to acquisition of treasury shares based on a resolution made ata board meeting held on October 27, 2021
Increase due to acquisition of shares less than one unit
Decrease due to cancellation of treasury shares based on a resolution madeat a board meeting held on January 31, 2023
Decrease due to sale of shares less than one unit

375

375,100 shares
552 shares
1,184,501 shares
90 shares

Deferred Tax Assets and Liabilities
1. The significant components of deferred tax assets and liabilities were as follows:
In Thousands of Yen
Deferred tax assets
Inventories¥
108,380
Accrued enterprise tax and business office tax
86,730
Provision for product warranties
46,623
Provision for retirement benefits
552,835
Accrued bonuses
297,637
Buildings, structures, machinery and equipment
38,229Land
569,744
Investment securities
121,561
Others420,645
Subtotal
2,242,388
Valuation allowance(931,026)
Total deferred tax assets
1,311,361
Deferred tax liabilities
Valuation difference on available-for-sale securities¥(1,532,200)
Others(8,880)Total deferred tax liabilities(1,541,080)
Deferred tax liabilities (Net)(229,718)
2. Deferred tax assets in relation to revaluation reserve for land
In Thousands of Yen
Deferred tax assets
Unrealized loss on land revaluation
Valuation allowance
Deferred tax assets (Net)
Deferred tax liabilities
Unrealized gain on land revaluation
Deferred tax liabilities (Net)21¥

923,260(923,260)–¥(616,302)(616,302)

Related Party Transactions
Related party transactions are as follows:
Parent company and major corporate shareholders, etc.
Type

Parentcompany

Name of
Description of
Capitalthe related (in thousands business orcompany
occupationof Yen)Equityownership
percentage

Relationship of relatedcompany
Interlocking
Business
directorate
relationshipTransaction
Nature ofamounttransactions (in thousandsof Yen)Sale ofspecially
Manufacture
Crossequippedand sale ofcompany
vehicles as
Toyota(owned)automobiles,
transfer
Deposits
well as saleIndustries
80,462,672 industrial
direct2 personspaid (Net)and purchase*
Corporation
vehicles, and53.9%of their
textileEmployeeparts;
machinery, etc.
1 person
deposits offunds

968,463

Account

Balance at
year-end(in thousandsof Yen)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 paidin accordance with market interest rates. The transaction amount is indicated on a net value basis.
Notes to Revenue Recognition
Useful information in understanding revenue
This note is omitted, as the same information has been stated in Notes to Consolidated Financial Statements.
Per Share Information
In YenNet assets per share
Profit per share¥

992.5584.43

Notes to Subsequent Events
There are no applicable items.
Notes to Companies Subject to the Restriction on Consolidated Dividends
There are no applicable items.
Other Notes
There are no applicable items.

Notice to Readers:
Figures below the unit of presentation are discarded from the amounts in the accompanying financial statements
stated in thousands of yen.

22