Annual Report

2020

Year Ended March 31, 2020

Securities Identification Code : 6482

Impossible mark the starting point of a challenge.

Susumu Kotani, YUSHIN’s Founder1

Outline of YUSHIN PRECISION EQUIPMENT
Our name “YUSHIN”, means to be both conscientious and trustworthy in Japanese. As these terms suggest,

our goal is to be a company that earns and deserves the trust of customers. This is why we work constantly todevelop products and systems based on what we call “Heartful Technology”, that reaches heart to heart.

Since 1973, we have been striving to make the molding process more efficient, focusing on the development

and manufacturing of Take-out robots for plastic injection molding products. To us, the words “impossible” or“it can’t be done” mark the starting point of a challenge.

To be successful, we must continue to introduce innovative products, for instance, ultra-high speed robots

and factory automation systems for bringing new capabilities into the customers.

As an innovator in the plastic molding process, YUSHIN intends to continue developing equipment that will

improve quality, and simplify the molding new types of products. Taking advance with automation for plastic
molding plants, YUSHIN has been expanding its service network throughout the world.

YUSHIN also conducts its business so as to live up to the trust and expectations of its customers,

shareholders, suppliers, employees, local communities and all other stakeholders.

Serving society through developing plastics industry
2Message from the President
Our goal is to provide safety and security to molding factories
around the world through our robots and to support the realizationof energy-saving and highly productive manufacturing.
We believe that this attitude will contribute to the creation of amore prosperous society, and we will continue to take on thechallenge of creating new value.
Result for FY 2020 (Year ending March 31, 2020)
Regarding the global economy during this fiscal
year under review, due to uncertainties about the
future, including trade friction between the UnitedStates and China, the willingness of companies tomake capital investments has been declining
globally. Furthermore, since the beginning of 2020,
the spread of COVID-19 worldwide has slowed down
the economic activities of each country. As a result,concerns over the global economic slowdown haveintensified, and the environment surrounding us has
become even more severe.
Under these circumstances, YUSHIN Group has
continued to develop new customer base on global
scale. However, orders received during this fiscal
year have remained lower compared to the previous
fiscal year. Regarding the outcome for this fiscal year
under review, sales of custom-ordered equipment
increased significantly, especially in the medical fieldoverseas. On the other hand, sales of take-out
robots did not grow from the beginning of theperiod in Asia due to the restraint of capital
investment, and the sales in Japan also slowed downfrom the second half. As a result, the consolidated
net sales decreased by 8.3% year on year to 20,011
million yen. Operating profit decreased 16.3%
year-on-year to 2,309 million yen, althoughexpenses were suppressed due to cost reductions bystreamlining operations and reductions in
depreciation expenses. Ordinary profit decreased
21.0% year on year to 2,205 million yen due toforeign exchange losses, and Profit attributable to3owners of parent decreased 19.5% year on year to
1,532 million yen.
Research and development expenses for FY2020
amounted to ¥369 million (¥413 million in theprevious year). In order to develop products thatmeet the needs of a wide range of industries aroundthe world, we are working in parallel on multiple
R&D themes belonging to the respective stages of
Basic Research, Element Development, and Applied
Development. As a result, in FY2020, we released
MKA, a large take-out robot for the U.S. market, andthe additional functions of INTU LINE, an IoTfunction launched in 2017.
The equity ratio increased by 4.4pt. from 80.9% at
the end of the FY2019 to 85.3%, maintaining astrong financial position capable of responding tochanges in the business environment.
With respect to shareholder returns, we believethat improving our consolidated performance andraising the level of ordinary dividends will help us
meet the expectations of our shareholders. At thesame time, we aim to achieve a consolidated
dividend payout ratio of 30% or more in order toachieve stable and sustainable shareholder returns.
In FY2020, in light of our performance and the above
policy, we paid an interim dividend of 8 yen per
share and a year-end dividend of 10 yen per share,
for a total annual dividend of 18 yen per share. Thisis an increase of ¥1 from the previous year, resulting
in a consolidated dividend payout ratio of
approximately 40%.

Prospects for FY2021 (Year ending March 31, 2021)
For FY2021, we forecast lower revenues and profits
based on the premise that the outlook for the year
ahead is highly uncertain due to the continued
decline in global appetite for capital investment,
coupled with the spread of COVID-19. Net sales are
expected to fall 15% to 17,000 million yen. This is dueto the fact that although sales of our mainstay
take-out robot business are solid in the medical andcontainer industries, we expect capital investment inother industries to remain sluggish, and therefore
we are forecasting a 20% decline in sales of take-out
robot to ¥10,200 million. In the custom-ordered
equipment, the forecast is for a 6% decline in sales
to 3,800 million yen although sales to the medical
field are expected to be strong. In the parts andmaintenance services, we forecast a 6%
year-on-year decline in sales to 3,000 million yen.
Taking these declines in sales into account, we areforecasting a 30% decrease in operating income to1,600 million yen.
Regarding research and development expenses,
we forecast 390 million yen. It is our policy toprioritize investment in research and development,
which will determine our future corporate value, to acertain amount each year, no matter what theenvironment. Going forward, we will work todevelop take-out robots suitable for each region of
the global market and promote services that utilize
IoT and AI.
As for shareholder returns, we aim to achieve a
consolidated dividend payout ratio of 30% or more,
but we expect net income to decline significantly in
FY2021. In order to consider stable shareholder
returns, we have not yet decided on a dividend
forecast.

August 2020
Mayumi Kotani
President andRepresentative Director

Medium-Term Management Plan
We have set a medium-term management goal ofachieving consolidated net sales of 30 billion yen
and ordinary income of 5 billion yen or more. In
order to achieve these goals, we will (1) strengthen
our product capabilities, (2) strengthen our global
development, and (3) develop new businesses.
(1) To strengthen our product capabilities, we will
expand the "active vibration control" and "IoT"
technologies of our flagship take-out robot model,
FRA, and further enhance our AI-based service

system. Also while most of our customers have beenplastic injection molding factories, we will develop
products that meet the automation needs of various
industries and promote sales. In July 2020, welaunched the PA series of space-saving palletizing
robots for use in packing and distribution sites.
(2) With regard to further strengthening our global
expansion, we have commenced operations at our
European subsidiary established in Munich,Germany, in June 2019. We will continue to expand

4Message from the President
our sales channels and service system in Europe. In
addition, we introduced a new large robot to therobust U.S. market.
(3) To develop new businesses, in response to thegrowing need for automation in Japan and overseas,
we will work to create new businesses thatcomplement or synergize with our existing
businesses. We will also continue to work on
expanding sales of custom-ordered medical-related
equipment.
Furthermore, to promote these initiatives, we will(4) strengthen cooperation between departments, (5)improve work efficiency, productivity, and cost
reduction activities, and (6) secure and train humanresources to support global expansion.
ROE Target
Although we have not set clear targets, we would
like to improve ROE by focusing on increasing net
income.
Corporate Governance: Aims of Establishing theNomination and Remuneration Committee
The Nomination and Compensation Committee
has been established as an advisory body to theBoard of Directors in order to increase theappropriateness and transparency of the nomination
and remuneration of directors, and to link this to themedium- to long-term growth of the Group and theenhancement of corporate value. The Nomination
and Compensation Committee is chaired by Yasuo
Nishiguchi, an outside director. The other membersof the committee are the President andRepresentative Director, two outside directors andtwo outside corporate auditors, for a total of six
members.
Impact of plastic environmental issues

5

In our opinion, the environmental impact ofplastics on our business is minimal at this time.
In recent years, the environmental impact ofplastic products has become an issue, and as acompany involved in the plastics industry, we cannot
afford to be indifferent to this issue.
Firstly, the fishing nets, ropes, plastic bags andstraws, which are considered to be the main sourceof drifted plastic waste, do not have a direct impact
on our business because they are not the
injection-molded products that our robots areworking on.

When considering the segregation of
injection-molded plastics, they can be divided into
two categories: durable goods (home appliances, carparts, etc.) and non-durable goods (food trays,
spoons, etc.). Durable goods are a field where theadvantages of plastic can be used, and it is difficult
to see how plastic will be replaced by other materials
in this field at this time. This is an area where we
expect our robots to continue to play an active role.
On the other hand, in non-durable goods, we are
seeking to replace some paper products and use
bioplastics (e.g., biodegradable plastics). Althoughsome materials will be replaced in some areas,
bioplastics will continue to be produced by injection
molding, which will continue to be the market forour take-out robots.
We should also not forget the benefits of plastics.
The medical industry, for example, has been using
disposable plastics for syringes and drip infusions for"hygiene" reasons. From the perspective of "weight
reduction," many parts of automobiles, especiallyEVs, are made of plastic, both interior and exterior.
Future Prospects and Issues
We expect the economic uncertainty associatedwith the spread of COVID-19 to continue for sometime to come. However, even in this environment,
our subsidiaries in the United States and South Korea
are receiving an increasing number of orders fromfactories that produce test kits and disinfection
solution containers and pumps. We will continue tosupport our customers who are busy with production
around the clock with our equipment. We willcontinue to provide services to our customers on a
global basis while making employee safety our top
priority.
Going forward, we will continue to challenge
ourselves to create value that only Yushin can
provide, freeing people from the simple labor of theplastics industry and supporting the realization ofenergy-saving and highly productive manufacturing.

Consolidated Financial Highlights
YUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
Years Ended March 31

For the year:
Net sales ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Operating income ・・・・・・・・・・・・・・・・・・
Income before income taxes ・・・・・
Net income attributable to ownersof the parent ・・・・・・・・・・・・・・・・・・
R&D Expenses ・・・・・・・・・・・・・・・・・・・・・

2017

2016

￥ 21,833
2,760
2,783

￥ 20,878
2,358
2,438

￥ 19,346
2,112
2,009

￥ 21,148
3,086
2,858

$ 183,593
21,18820,261

1,532
369

1,903
413

1,626
598

1,380
619

1,908
510

14,062
3,385

31,93327,47133,197
27,11732,572
26,47230,76125,451

29,40924,715292,966
252,036

2019￥ 20,011
2,309
2,208

Per share of common stock:
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends ・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Equity ratio:
Return on assets ・・・・・・・・・・・・・・・・・・・
Return on equity ・・・・・・・・・・・・・・・・・・・・

Thousands of
U.S. Dollars

2018

2020

At Year end:
Total assets ・・・・・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Yen

%

5.8 %
7.2

4.7 %
5.7

￥ 39.4636.00
722.19￥ 46.51
33.00
750.37￥ 54 .54
17.00
783.03￥ 45.01
18.00
800.04

5.1 %
6.3

2020

U.S. Dollars$ 0.410.16￥ 54.57
36.00
700.77

4.6 %
5.6

6.5 %
7.9

Notes: The computation of net income per share is based on the weighted average number of shares of common stock outstanding during each year, retroactively adjusted for stock splits,
including those stock splits made after year-end.
Cash dividends per share are dividends applicable to the respective years including dividends to be paid after the end of the year.
The computation of equity per share is based on the number of shares of common stock outstanding each end of year, retroactively adjusted for stock splits, including those stock splits
made after year-end.
Translations of Japanese Yen amounts into U.S. dollar amounts are made at the rate of ¥109 to $1.

(millions of yen)

Net Sales
2016
2017

21,1482016

20,87820182017

19,346

2018

21,8332019

0

10,00020,00040,000(millions of yen)

Total Assets
2016

30,761

2018

32,572

201933,1972020

31,9330

10,00020,000

1,532

30,000

0

500

1,000

1,500

40,000

1,903

2,000

2,500

3,000

(millions of yen)

Equity2016

29,409

2017

1,626

2020
30,000

1,908

1,380

2019

20,0112020

Net Income attributable to owners of the parent (millions of yen)

24,7152017

24,7152018

26,472

201927,11727,4712020
0

10,00020,00030,00040,000Estimates, Forecasts, and Plans

The performance estimates, forecasts of the business environment, and business plans contained in this publication are based on the information available at the time of compilation.
Statements herein regarding these performance estimates, forecasts of the business enviorment,and business plans may contain inaccurate elements. In addition, there is a possibility of unknown
risks, uncertainties, and contingencies emerging that may invalidate these performance estimates, forecasts of the business environment, and business plans. As a result, the reader is requested tounderstand that actual results / performance, the business environment and business plans in the future may differ materially from the content of this publication.

6

Review of Operations
Take-out Robots
Net sales of Take-out Robots
decreased by 2,742 million yen(17.7%) from the previous FY to
12,770 million yen.

Net Sales(millions of yen)

2016

9,564

2017

13,923

8,689

13,410

2018

9,704

15,449

2019

9,256

15,512

2020

0

7,256

4,000
Overseas sales

8,000

12,77012,00016,000

Custom-ordered Equipment
Net sales of Custom-ordered
Equipment increased by 1,175
million yen (40.8%) from theprevious FY to 4,056 million yen.
Net Sales(millions of yen)

2,947

2016
2017

1,095

2018

947

2,832
2,204

1,375

2019

2020

0

3,997

2,880

2,866

2,000
Overseas sales

4,056

4,000

6,000

Parts and Maintenance Service
Net sales of Parts andMaintenance Service decreased by
254 million yen (7.4%) from theprevious FY to 3,185 million yen.
Net Sales
2016

1,929

3,227

2017

1,606

3,103

2018

1,701

3,223

2019

1,810

2020

1,728

0

7

(millions of yen)

2,000
Overseas sales

4,000

Parts andmaintenance service
16%
Custom-ordered
Equipment
20%

FY2020Take-out Robots
64%

3,440

3,185

Sales Composition by Products

6,000

20,011(millions of yen)

Performance of Geographic Segments<Japan>Net sales decreased by 15.6% from the previous FY to 14,751 million yen and operating profit decreased by
37.6% from the previous FY to 1,276 million yen.
<North America>
Net sales decreased by 15.4% from the previous FY to 2,912 million yen and operating profit decreased by
12.3% to 269 million yen.
<Asia>Net sales decreased by 23.0% from the previous FY to 4,003 million yen and operating profit decreased by
46.1% to 287 million yen.
<Europe>Net sales increased by 187.4% from the previous FY to 2,637 million yen and operating profit increased by
181.7% from the previous FY to 230 million yen.
Overseas Sales
Overseas sales simply indicate YUSHIN’s world sales to countries and areas other than Japan. Overseas sales
decreased by 5.4% year on year to 11,851 million yen from the previous fiscal year. And the ratio of overseas
sales to the total net sales was 59.2%.
Sales Composition by Region(millions of yen)

21,148
610
3,665
2,163

19,346
445
3,573
693

20,878
620
3,172
687

21,833
663
3,233
939

20,011
527
3,343

Other
North America

2,079Europe3,504

Other Asia

2,395

China / Taiwan

9,304

8,159

Japan

FY2019FY2020

4,594

4,876

3,468

2,816

4,781

4,200

3,220

2,477

6,707

7,955

8,335

FY2016FY2017FY20188Topics
Support for COVID-19
As COVID-19 rages around the world, oursubsidiaries in the United States and South Korea
are increasing their support for the medical
industry and are committed to supporting ourcustomers. Our robots are also used extensively inthe medical and packaging industries, where they
are involved in manufacturing high-demand
products such as medical testing equipment,
medical packaging, and plastic containers andcaps for disinfection wipes and sprays. Customers
manufacturing these products today are ramping
up production around the clock. Our U.S.
subsidiary, YUSHIN AMERICA, Inc. is a certified
provider of medical product manufacturing

equipment and continues to provide equipment
and maintenance to our customers without
interruption. YUSHIN will continue to serve its
customers on a global basis while keeping
employee safety as its top priority.

<YUSHIN AMERICA, INC.>

Palletizing RobotYUSHIN has developed the compact palletizing
robot "PA" series, which are mainly used in thefield of packaging and logistics. Palletizing robots
are expected to be used not only in the
manufacturing industry, but also in logistics sites
where there is a need for rapid automation due tolack of manpower. In such fields, we can utilize
the technological capabilities we haveaccumulated in the plastic injection molding
industry over many years. The "PA" series will be
lined up with two models, the “PA-20” that
supports a payload capacity of 20 kg and the“PA-40” that supports a payload capacity of 40kg, to meet a wide range of customer needs.
1. Compact & Free Access“PA” series realize the miniaturization of theinstallation space by maximizing the advantagesof the cartesian robot, and secures the freedom oflayout by the cantilever structure with fewer
stanchions placed around it. Customers caneffectively utilize the limited space with few
obstacles when automating the existing space.

9

2. Easy and Quick Installation“PA” series have inherited the intuitive operationin addition to the simple operation using thetouch panel controller that has a high reputationin the field of the molding industry. In addition,
we support swift start-up of production lines andquick maintenance of the robot through optimal
robot hand design and technical service bases
nationwide.

ESG
RelatedSDGs Items< Environmental Load Reduction >- Development of energy - saving products(Won the JMF’s Energy-Efficient Machinery Award)
Uses

Uses

26%

E

less electricity thanconventional model

75%

less air thanconventional model

Environment

Standard Take-out Robot - YC
- Promotion of environmental management system (ISO14001)< Working Style Reform of Customer Factories >- Providing factory automation system

S

Social< Safety and Security>- Sale of the world's highest safety standard equipped robot< Improvement of Working Environment >- Working style support team- System of maternity leave and shorter working hours(more than statutory)- Working support for mothers “Yushin Mama’s
meeting”< Strengthen the Governance System >- Of the 10 directors, 3 are external directors
Governance - Improvement of board of directors by effectiveness evaluation

G

10

ESG - Governance
Basic Views on Corporate Governance

YUSHIN PRECISION EQUIPMENT CO., LTD. (hereinafter referred to as “The Company”) aims at achieving
sustainable growth and maximizing the enterprise value for medium- and long-term under the management
philosophy with obtaining credibility from all stakeholders surrounding YUSHIN including shareholders. We strive
to strengthen corporate governance with the basic policy of following five items.
1. The Company respects the rights of shareholders and ensures equality, as well as strives to improve theenvironment for executing rights appropriately and protect rights.
2. The Company strives to sincerely cooperate with stakeholders excluding our shareholders with good sense.
3. The Company strives to ensure the transparency by appropriately making disclosure according to laws andregulations and voluntarily providing information excluding the disclosure.
4. The Board of Directors strives to execute its roles and duties appropriately for transparent/fair and flexible
decision-making.
5. The Company strives to positively communicate with shareholders after sharing the direction of its stable
growth for long-term.
Organization Chart(As of August, 2020)

General Meeting of
Shareholders

Board of Directors

Board ofCorporate Auditors

PresidentInternal
Audit Office

Corporate
Planning Office

Product Planning &Marketing Dvelopment
Dep.

Quality
Assurance Dep.

Sales
Division

R&D
Division

Sales Dep.

Service
Management Dep.

Manufacturing
Division

Purchasing
Division

GeneralAffairs Dep.

Corporate
Management Dep.

Progress of Board of Directors

Under rapidly changing business environment and advancement of globalization, the Company appoints
candidates of Directors with a focus on balance among knowledge, experience and expertise, diversity and global
viewpoints. Now 10 Directors, including 3 External Directors and 2 of them are independent Directors, take office.
The Company will keep the number of the board members that immediate decision-making can be
conducted with each member providing his or her
Board of Directors
Board of Auditors
expertise and exchanging opinions each other.
10 peoples
4 peoplesExternal Directors now analyze and evaluate whole of
the Board of Directors. To further improve the functionsof the Board of Directors, analysis and evaluation ofeffectiveness of the whole Board including their
methods are currently examined.

11

Independent
Directors

2 peoples

Independent
Auditors

2 peoplesChart of Corporate Governance System

Internal Director / Auditor
External Director / Auditor

General Meeting of Shareholders
Appointment
Dismissal

Appointment
Dismissal

Appointment
Dismissal

Nomination and

Board of Corporate
Auditors

Consultation / Report

Remuneration Committee

Board of Directors

AuiditAppointment / Dismissal /Supervision

Proposal / Report
Representative Director

Cooperation
Proposal / Report
Cooperation

Supervision
Instruction

ReportSupervision
Instruction

Executive Meeting
Management Supervision

Cooperation
Accounting
AuditorInternal
Audit OfficeInternal
Audit

Sales Division

R&D Division

Manufacturing
Division

Purchasing
Division

Administrative Dept.

Dept. under the
Direct control of
President

AuiditCommittee ofInternal Control Training
Supervision

Subsidiaries

12

Board of Directors, Auditors and Officers
As of June 24, 2020

15

10

8

5

3

1

2

4

9

6

7

16

Directors
1. Mayumi Kotani
October 1973
October 1982

February 1989
March 1993

December 2002
April 2006

March 201113

Joined the Company
Director

2. Satoshi Kimura
April 2005

Executive Vice President and Director

October 2005

General Manager of Sales Division

April 2006

President and Representative Director

June 2006

President and Representative Director

June 2008

Executive Vice President and Director,

President and Representative Director

and General Manager of Sales Division(To the present)

Joined the Company as Executive Officer

and General Manager of Purchasing Dept.

Executive Officer

and General Manager of Purchasing Dept.
Senior Executive Officer

and General Manager of Purchasing Division
Managing Director

and General Manager of Purchasing Division
Executive Managing Director

and General Manager of Purchasing Division(To the present)3. Yasushi Kitagawa

September 2007 Joined the Company

November 2007 Deputy General Manager of Manufacturing
April 2008
April 2009

August 2009

June 2010

June 2013

June 2017

Division

Deputy General Manager of Manufacturing

Division and Quality Assurance Department
Executive Officer,

6. Masahito Fukui
October 2013
July 2015
July 2017

Deputy General Manager of Manufacturing

April 2020

Executive Officer,

June 2020

Division and Quality Assurance Department
General Manager of Manufacturing Division
and Quality Assurance Department
Director andGeneral Manager of Manufacturing Division

7. Kota Oda

October 2015

General Manager of Manufacturing Division

April 2019

Executive Managing Director andJune 2020

and Quality Assurance Department

General Manager of Manufacturing Division

4. Takayo Kotani
April 2008

Joined the Company

October 2008

Manager of R&D Section

April 2019

Executive Officer

April 2009

June 2019
June 2020

General Manager of R&D Department

April 2008

July 2009

June 1992

June 1999

and General Manager of R&D Division

5. Tomohiro Inano
August 2003

June 1987

and General Manager of R&D Division(To the present)

June 1989

March 1975

June 1997

Managing Director

June 2003
June 2005

Joined the Company

April 2006

EQUIPMENT TRADING (SHENZHEN) CO., LTD.

June 2014

General Manager of YUSHIN PRECISION

General Manager of Chinese Area

and YUSHIN PRECISION EQUIPMENT TRADING(SHENZHEN) CO., LTD.

Assistant to General Manager of Sales Division

June 2009

March 2015
June 2016

February 2010

Deputy General Manager of Sales Division

March 2018

March 2014

Executive Officer

April 2020

March 2011

June 2017

General Manager of Sales Division

and General Manager of Sales Division
Directorand General Manager of Sales DivisionCorporate Management Department andGeneral Manager of Accounting Department
Executive Officer and General Manager ofCorporate Management Department
Director and General Manager ofCorporate Management Department

Joined the Company as General Manager ofGeneral Affairs Department

Executive Officer and General Manager ofGeneral Affairs Department

Director and General Manager ofGeneral Affairs Department

8. Yasuo Nishiguchi

and General Manager of R&D Department
Executive Officer

Executive Officer and General Manager of(To the present)

and Quality Assurance Department(To the present)

General Manager of Accounting Department(To the present)

and Quality Assurance Department
Managing Director andJoined the Company

as General Manager of Internal Audit Office

Joined Kyoto Ceramic Co., Ltd.

(currently Kyocera Corporation)
Director

Senior Managing Director

and Representative Director
Executive Vice president

and Representative Director

President and Representative Director
President and Representative Director

and President and Executive Officer
Chairman of the Board

and Representative Director,
and Chief Executive Officer
Advisor and Director

Retired from the office of Director
External Director of the Company(To the present)

Chairman and CEO of Socionext Inc.
External Director of

YAMADA Consulting Group Co., Ltd.
Retired from Chairman and CEOof Socionext Inc.

Chairman and Director of

YAMADA Consulting Group Co., Ltd.
(To the present)(To the present)

14

9. Hiroshi Matsuhisa
June 1976

October 1987
April 1994

Research Assistant of school ofprecision engineering in Faculty of Engineering
at Kyoto University

Assistant professor

Professor(transferred to graduate school of departmentof Mechanical Engineering and Science by aApril 2012
June 2014
June 2016
June 2018

reorganization in 1995)

January 1997

External Director of the Company(To the present)

External Corporate Auditor ofTechnology Seed Incubation Co., Ltd.

Retired from External Corporate Auditor ofTechnology Seed Incubation Co., Ltd.

Joined Japan Associated Finance Co., Ltd.

(currently JAFCO Co., Ltd)

General Manager of Investment information

October 2008

Part-time Director of LivTech, Inc.

General Manager of Underwriting

February 2009

Director and Head of Administrative H.Q.

March 2013

Retired from the office of Director

March 2015
March 2016
June 2018
June 2019of LivTech, Inc.

General Manager of Personnel Affairs Section

July 2015

General Manager of Internal Audit Office

June 2008
July 2017

Director of LUCKLAND CO.,LTD(Audits Committee) (To the present)
External Director of the Company(To the present)

Corporate Auditor of the Company(To the present)

April 1982

Joined the Company

December 2001

Manager of Sales Engineering Department

October 2010

General Manager of System Engineering Dept.

March 1999
April 2005

October 2019
July 2020

Manager of Manufacturing Section 3

Manager of System Engineering Department

Mandatory Retired

Continue to work as fixed-term employee
Corporate Auditor of the Company(To the present)

13. Hiroho Kamakura

November 1971 Joined Tohmatsu Aoki & Co.
May 1973
July 2012

July 2012
March 2013

(To the present)

External Director of Mandam Corporation

General Manager of Accounting Department

12. Katsumi Nodaof LivTech, Inc.

External Director of LUCKLAND CO.,LTD

Joined the Company

April 2008

Joined Marusan Securities Co., Ltd.

March 2000

October 2004

11. Yoshihisa Nakanishi

March 2008

Professor emeritus at Kyoto University

10. Reiko Nakayama
April 1983

Auditors

February 2018

(currently “Deloitte Touche Tohmatsu LLC” )Registered as CPA

External Corporate Auditor of

Trusco Nakayama Corporation(To the present)

External Corporate Auditor of the Company(To the present)

External Corporate Auditor of

FUJIO FOOD SYSTEM CO., LTD.
(To the present)

External Corporate Auditor of
SymEnergy Inc.

(To the present)

14. Michitoshi Morimoto
April 1981

Joined FUJITEC Co., Ltd.

February 1982

Joined Osaka Research Institute of

February 1987

Joined Matsushita Electric Industrial Co., Ltd.

October 1990
January 2016

Industrial Science and Technology（Panasonic Corporation）

Joined Nomura Research Institute, Ltd.
Joined Human Holdings Co., Ltd.

Executive officer (CIO)

November 2016 Retired from the Human Holdings Co., Ltd.
July 201715

External Corporate Auditor of the Company(To the present)Overview of the Board of Directors / Auditors
Attendance at
Attebdabce at
Independence Board of Directors Board of Auditors
in FY2019
in FY2019

Name

Positions

1

Mayumi Kotani

President andRepresentative Director

ー

13/13

ー

2

Satoshi Kimura

Executive Managing Director

ー

13/13

ー

3

Yasushi Kitagawa

Executive Managing Director

ー

13/13

ー

4

Takayo Kotani

Managing Director

ー

ー

ー

5

Tomohiro Inano

Director

ー

13/13

ー

6

Masahito Fukui

Director

ー

ー

ー

7

Kota Oda

Director

ー

ー

ー

8

Yasuo Nishiguchi

External Director

×

13/13

ー

9

Hiroshi Matsuhisa

External Director

●

13/13

ー

10

Reiko Nakayama

External Director

●

13/13

ー

11

Yoshihisa Nakanishi

Full-time Corporate Auditor

ー

13/13

5/6

12

Katsumi Noda

Full-time Corporate Auditor

ー

ー

ー

13

Hiroho Kamakura

External Corporate Auditor

●

12/13

6/6

14

Michitoshi Morimoto

External Corporate Auditor

●

13/13

6/6

Officers
15. Naoki Tsuji

September 2015 Joined the Company
May 2016

April 2019

Manager of Product Planning andMarketing Development Office
Executive Officer andGeneral Manager of Product Planning andMarketing Development Department(To the present)

16. Miki Murata
February 2003

Joined the Company

August 2007

Manager of Corporate Planning Office

October 2005
April 2020

Manager of Sales Administration

Executive Officer andGeneral Manager of Corporate Planning
Office(To the present)

16

Dialogue between Directors

Reiko Nakayama<External Director>

Yasuo Nishiguchi<External Director>

Mayumi Kotani<President and Representative Director>-Special MeetingGrowth Strategies of YUSHIN
Two experienced external directors and the president
exchanged opinions on what is needed
for the future of YUSHIN.

17

Kotani :Since our founding, we have consistently developed
our business by specializing in factory automation,
especially robots to take plastic products out of
injection molding machines. In the process, we
received many technical requests from clientcompanies. This has led to the accumulation of newtechnologies and businesses. The spread of
COVID-19 has been occurring, and it is undeniable
that this will have a significant impact on ourcompany. However, by using the technology we havedeveloped, we can produce products that are suited
to the new era of coexisting with the virus. We feel
this is an opportunity. We specialize in automation,
and we believe that we have an affinity with the needto reduce the number of people in the factory.
Nishiguchi :That's exactly what it is. Companies always try to set
up new businesses and use them as a new source ofrevenue, but the path is not flat, and many businesses
fail. However, our current core businesses were also
new businesses when we were founded. Whileremembering that time, now that the company has
grown in size, the president needs to lead the way indeveloping new businesses and has to support theperson in charge.

decided to start working on this existing productnow. I feel that our company is now being asked todevelop a clear growth strategy, both internally andexternally. In order to take our company to the nextstage, we must not only expand our existing mainstay
products, but also developing new pillars isnecessary. To make it a new pillar, we need to set
clear goals and think through how we can achieve
them. We should have a strong awareness of the goaland strengthen the organization to achieve it.
Nakayama :From my experience as a securities analyst, I would
say that our company's investor relations is subdued.
For the first few years after we went public, we wereperceived as a high-growth venture with a niche top
and the company has received a commensurate
evaluation, so we didn't have to do anything. I feelthat we have now entered a period of stability interms of performance. In addition, what investors arelooking for in a company today is becoming morediverse and complex, so it is important tocommunicate in a way that is easy to understand.

Kotani :About a year ago, we started an executive meeting toflesh out the internal improvements, and to launch
the next business. In the meeting, we discussed about
how we are going to sell a conventional productwhich we have not been cultivating the market
eagerly. This product is called the PA series which canload and unload cardboard boxes or cases on and off
pallets. The robot is simple and easy to handle anddoes not take up much space. Although it does not
move at high speed like a take-out robot, it can load
and unload boxes in a factory or a warehousewithout requiring a lot of manpower. It is exactly what
people need today. We believe this product will
enable us to attract new customers from different
industries.
Nishiguchi :The product you just mentioned looks very
promising. I think there is a lot of needs for thisproduct in situations where people are loading andunloading manually. It is important to rearise why you
18Dialogue between Directors
First and foremost, we need to set a clear goal of"what and how by when" and set numerical targets
and explain it properly to the outside world. If we canactually get our business results there, our reputationin the stock market will change. These days, it's notenough to simply increase sales and profits. Cashflow and capital cost are also emphasized as a goal of
corporate management from the shareholders'
perspective. Furthermore, various things are now
required, such as significance of the company's
existence in society, awareness of stakeholders andconsideration for the environment. And not only
shareholders but also young people of the future see
the companies in terms of their contribution tosociety not only in terms of name recognition andsalary. We will have to account for all of those thingsin total. I know our company is committed to making
it easy for all employees to work and to improving
the working environment of the company and theplant.

emergency, employees are required to work fromhome as much as possible to prevent the spread of
the COVID-19.
Nakayama :As an outside director of the company, I believe myrole is to further strengthen the company's
governance from an investor's perspective and toprovide advice on how to improve corporate value.
We have recently established a new Nomination andCompensation Committee. I would like to take thisopportunity to create a remuneration system in which
directors are more aware of their responsibilities andare incentivized to achieve their goals. I would also
like to see our future executive candidates developthat mindset early on. Directors and other executivesof listed companies tend to focus on setting annual
budgets and executing them. However, this alone will
not increase corporate value. From a medium- tolong-term perspective, we should have a strong
awareness of "What do we want to do with thiscompany, and what must be done to achieve this? "Nishiguchi :Today, the president, a founding member of thecompany, is leading the company. But eventually,
directors and officers who do not know hard work of
the founding will be leading the company.
Fortunately, we have plenty of cash to spare. I would
like you to have the guts to invest in employees whowant to take on the challenge of starting a new
business from new ideas. In the end, it is people who
launch new businesses. Now is a great time to train
people with creativity.

19

Kotani :Yes, even with the system that we take for granted, it
seems that there are many things that we are
fortunate compared to other companies. It is easy for
employees to take leave for childbirth and childcare
and shortened work hours. It is not unusual for men
to take childcare leave and shortened work hours as
well. In addition to offices and plants, we also
consider the livability of the cafeteria and bathrooms
in our headquarters plant. Under the state ofMessages from New Directors and an Auditor
Takayo Kotani, Dr.Eng. - <Managing Director, R&D Div.>I would like to contribute to the aim of being a company that cancontinue to provide products and services that makes our customers at
manufacturing plants around the world say “I’m glad I chose YUSHIN”.
For that aim, I place great importance on the daily accumulation of
persistent efforts while thinking of the future and the sharing of correct
information both inside and outside the company.

Masahito Fukui - <Director, Corporate Management Dept.>
At a time when social and economic uncertainty is increasing on a
global scale due to the pandemic, I am keenly aware of the importanceof my role and responsibility. I will make every effort as a business
manager to realize sustainable growth based on our corporate culture.

Kota Oda - <Director, General Affairs Dept.>
On a global scale, we need to respond flexibly to significant
socio-economic change such as COVID-19 pandemic. For surviving
unforeseeable future, it is important to develop our business resilience.
Also, for the purpose of sustainable growth, it is vital to build capabilities
through organizational change and to improve the ability of theorganization's people. I would like to contribute to create anenvironment where our members can collaborate actively and work
productively with a feeling of greater enrichment.

Katsumi Noda - <Auditor>
To ensure that YUSHIN continues to grow in a sound and sustainable
manner and to live up to the trust of society, I will continue to strive tomaintain our corporate governance system through conducting auditsof the company. I will make use of my experience in R&D, design,
manufacturing and sales at YUSHIN to develop the company andenhance its corporate value by providing information at meetings andconducting audits from the multiple perspective.

20

Global Network (As of August, 2020)

USA

Headquarters & Factory

Korea

China
<Shanghai> Korea <Seoul>
China China■
Germany <Munich><Guangzhou><Tianjin> Korea <Daegu>■■
Turkey <Istanbul> China■■
Japan <Kyoto><Shenzhen>■■■ Taiwan <Taipei>■■■
India <Gurgaon>■
Taiwan <Taichung>■■India <Chennai>■ Philippines <Manila>■■
Vietnam <Hanoi>■ Malaysia <Johor Bahru>
Thailand <Bangkok >UK <Birmingham>
USA <Ohio>
Canada <Toronto>■■
USA <Rhode Island>■■ USA <North Carolina>
USA <California> ■■■USA <Georgia>■
USA <Texas>■

Mexico <Guanajuato>■

Malaysia <Kuala Lumpur>■

Indonesia <Jakarta>

Vietnam <Ho Chi Minh>■

Australia<Melbourne>

Headquarters & Factory
Technical Center

Chubu General Sales Office
Nagoya-Nishi Sales Office

Nishi-Nihon General Sales Office■

New Zealand<Auckland>

Toyama Sales Office
Nagano Sales OfficeNiigata Satellite Office

Hiroshima Sales Office

Iwate Satellite Office

Fukuoka Sales Office

Tohoku Sales Office
Higashi-Nihon General Sales Office

Ohita Satellite Office

Tsukuba Sales Office

Shizuoka Sales Office

Nishi-Kanto Sales Office

Chubu General Sales Office21

Higashi-Nihon General Sales OfficeMalaysia

TaiwanThailandUK

China (Shenzhen)

China (Shanghai)VietnamChina (Guangzhou)● Headquarters & Factory
555 Kuzetonoshiro-cho, Minami-ku, Kyoto, Japan 612-8205
TEL: +(81)75-933-9555 FAX: +(81)75-934-4033● Technical Center

487 Kuzetsukiyama-cho, Minami-ku, Kyoto, Japan 601-8203
TEL: +(81)75-933-9555 FAX: +(81)75-922-3151■Subsidiaries■South Korea■China■ YUSHIN KOREA CO., LTD.
TEL: +(82)31-433-9655~6 FAX: +(82)31-433-9663■Germany■ YUSHIN EUROPE GMBH
TEL: +(49)89-89-796-713 FAX: +(49)89-89-743-737■ DAEGU BRANCHTEL: +(82)53-951-9442■ UK■ YUSHIN AUTOMATION LIMITEDTEL: +(44)-1527-558-218 FAX: +(44)-1527-558-219■U.S.A.

■ YUSHIN AMERICA, INC.
TEL: +(1)401-463-1800 FAX: +(1)401-463-1820

FAX: +(82)53-951-9443■ YUSHIN PRECISION EQUIPMENT TRADING (SHANGHAI) CO., LTD.

TEL: +(86)21-6440-1586~7

FAX: +(86)21-6440-1806■ YUSHIN PRECISION EQUIPMENT TRADING（SHANGHAI）CO., LTD.
TIANJIN BRANCHTEL: +(86)22-8823-8713 FAX: +(86)22-8823-8517■ YUSHIN AMERICA, INC. NORTH CAROLINA OFFICE■ YUSHIN PRECISION EQUIPMENT TRADING (SHENZHEN) CO., LTD.

■ YUSHIN AMERICA, INC. OHIO OFFICE

TEL: +(86)755-8358-0139■ YUSHIN AMERICA, INC. GEORGIA OFFICE

FAX: +(86)755-8358-0159■ YUSHIN AMERICA, INC. TEXAS NORTH OFFICE■ GUANGZHOU YUSHIN PRECISION EQUIPMENT CO., LTD.

TEL: +(86)20-8269-0091■Taiwan■ YUSHIN PRECISION EQUIPMENT (TAIWAN) CO., LTD.
TEL: +(886)2-2585-0507 FAX: +(886)2-2585-0527■ TAICHUNG BRANCHTEL: +(886)4-2265-8155■Indonesia■Vietnam

FAX: +(886)4-2265-2602■ PT. YUSHIN PRECISION EQUIPMENT INDONESIATEL: +(62)21-8835-8185

FAX: +(62)21-8835-8186■ YUSHIN AMERICA, INC. CALIFORNIA OFFICE(MEXICO)TEL: +(84)243-767-3844

FAX: +(84)243-767-3845■ YUSHIN AMERICA, INC. MEXICO BRANCHTEL: +(52)477-761-2696

FAX: +(52)477-761-2696■Representative office■Philippines■ YUSHIN PRECISION EQUIPMENT(VIETNAM) CO., LTD.
■ YUSHIN PRECISION EQUIPMENT(VIETNAM) CO., LTD.
HO CHI MINH REPRESENTATIVE OFFICE
TEL: +(84)283-899-0662 FAX: +(84)283-899-0648■Malaysia■ YUSHIN AMERICA, INC. TEXAS OFFICE

FAX: +(86)20-8269-0001■ YUSHIN PRECISION EQUIPMENT CO., LTD.

PHILIPPINES REPRESENTATIVE OFFICE
TEL: +(63)2-8893-7546 FAX: +(63)2-8856-9616■Sole Agents■New Zealand■ TASMAN MACHINERY LTD.

■ YUSHIN PRECISION EQUIPMENT SDN. BHD.

■Australia■ TASMAN MACHINERY PTY LTD.

■ JOHOR BAHRU OFFICE
TEL: +(60)7-598-5450 FAX: +(60)7-598-0102■Turkey■ TEKKAN PLASTIK SAN. ve TIC. A.S.
TEL: +(90)216-593-00-29 FAX: +(90)216-593-00-38■Canada■ EN-PLAS, INC.
TEL: +(1)416-286-3030

TEL: +(60)3-5880-5445

FAX: +(60)3-5879-3151■Thailand■ YUSHIN PRECISION EQUIPMENT (THAILAND) CO., LTD.
TEL: +(66)2-662-2580 FAX: +(66)2-662-2583■India■ YUSHIN PRECISION EQUIPMENT (INDIA) PVT. LTD.
TEL: +(91)44-4231-8005 FAX: +(91)44-4231-8006■ GURGAON BRANCHTEL: +(91)124-474-8229

TEL: +(64)9-379-5716

FAX: +(64)9-379-9915

TEL: +(61)3-8587-8200

FAX: +(1)416-286-5963

FAX: +(91)124-474-8230

22

Consolidated Balance SheetYUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
March 31, 2020

ASSETS

2020

CURRENT ASSETS:
Cash and cash equivalents (Note 9) ・・・・・・・・・・・・・・・・・・・・・・・・・
Short-term investments (Note 9)￥

Millions of Yen

5,652

￥

Thousands of
U.S. Dollars(Note 1)

2019

2020

4,669

$

51,862・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,993

1,693

27,460Trade notes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,584

1,824

14,532

Trade accounts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,826

5,020

35,106

Allowance for doubtful receivables ・・・・・・・・・・・・・・・・・・・・・・・・

(19)

(18)

(176)

Inventories (Note 4) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5,058

6,033

46,411Other current assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

295

742

2,710

Total current assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

19,391

19,964

177,907

6,107

6,130

56,034

8,911

8,899

81,758

583

572

5,349

1,550

1,537

14,223108

9317,163

17,148

157,459(6,257)(5,739)(57,404)

10,905

11,408100,054

Investment securities (Notes 3 and 9) ・・・・・・・・・・・・・・・・・・・・・・・

159

218

1,467

Insurance funds ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

143

143

1,319

Asset for retirement benefits (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・

285

294

2,619

Deferred tax assets (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

658

705

6,040

Other assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

387

462

3,557

Total investments and other assets ・・・・・・・・・・・・・・・・・・・・

1,635

1,823

15,004TOTAL ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 31,933￥ 33,197

Receivables (Note 9) :PROPERTY, PLANT AND EQUIPMENT:Land ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Buildings and structures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Machinery and equipment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Furniture and fixtures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Construction in progress ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Accumulated depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net property, plant and equipment ・・・・・・・・・・・・・・・・・・・

INVESTMENTS AND OTHER ASSETS:

See notes to consolidated financial statements.

23$

292,966

LIABILITIES AND EQUITY

2020

CURRENT LIABILITIES:
Payables (Note 9) :Trade notes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

Millions of Yen

20

￥

2019

92

Thousands of
U.S. Dollars(Note 1)

2020

$

189

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,677

2,274

15,391

Construction and other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

418

492

3,837

Advances from customers ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,270

1,755

11,654・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

137

523

1,265

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

495

505

4,544

Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

178

147

1,636

Other current liabilities (Note 7)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

52

67

478

Total current liabilities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,250

5,860

38,998

Liability for retirement beneﬁts to directors (Note 5) ・・・・・

66

66

612

Liability for retirement beneﬁts (Note 5) ・・・・・・・・・・・・・・・・・・・

62

65

577

Deferred tax liabilities (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

34

37

315

Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

46

49

426

Total long-term liabilities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

210

219

1,932

35,638,066 shares in 2020 and 2019 ・・・・・・・・・・・・・・・・・・・・・・・

1,985

1,985

18,217

Capital surplus ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,023

2,023

18,567Retained earnings ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

24,531

23,579225,057(1,355)(1,039)(12,432)

Unrealized gains on available-for-sale securities ・・・・・・・・・・

16

56

150

Foreign currency translation adjustments ・・・・・・・・・・・・・・・・・

(34)

184

(316)

Defined retirement benefit plan ・・・・・・・・・・・・・・・・・・・・・・・・・・・

62

69

570

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

27,22926,861

249,814

Noncontrolling interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

242

256

2,222

Total equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

27,471

27,117

252,036

TOTAL ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 31,933￥ 33,197

Trade accounts

Income taxes payable (Note 9)
Accrued expenses

LONG-TERM LIABILITIES:EQUITY (Notes 2.o. and 6):
Common stock - authorized, 80,000,000 shares; issued,

Treasury stock - at cost,
1,602,454 shares in 2020 and 1,333,548 shares in 2019 ・・・・
Accumulated other comprehensive income:$

292,966* See notes to consolidated financial statements.

24Consolidated Statement of Income
YUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
Year Ended March 31, 2020

2020

Millions of Yen

2019

Thousands of U.S. Dollars(Note 1)

2020

NET SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
COST OF SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Gross profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 20,011
11,991
8,020￥ 21,833
13,092
8,741

SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES (Note 8) ・・・・・・・・・・・・・・・・・・・・
Operating income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5,710
2,309

5,980
2,760

52,39021,188OTHER INCOME (EXPENSES):Interest and dividend income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign exchange loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other-net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other income (expenses) - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
INCOME BEFORE INCOME TAXES ・・・・・・・・・・・・・・・・・・・・・・・・・・

13
(147)
33
(100)
2,208

10
(77)
89
22
2,783

123
(1,357)308(926)
20,261

565
63
629
1,579

930
(110)
819
1,963

5,188
585
5,773
14,488

46

60

425

INCOME TAXES (Note 7):
Current ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total income taxes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
NET INCOME ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
NET INCOME ATTRIBUTABLE TONONCONTROLLING INTERESTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・
NET INCOME ATTRIBUTABLE TO OWNERS OF
THE PARENT ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

PER SHARE OF COMMON STOCK (Notes 2.o. and 11):Net income* ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends applicable to the year* ・・・・・・・・・・・・・・・・・・・・・・

￥

￥

1,532

1,903

Yen
￥

45.01
18.00

$

$

183,593
110,015
73,57814,062

U.S. Dollars (Note 1)
￥

54.54
17.00

$

0.41
0.16

See notes to consolidated financial statements.

Consolidated Statement of Comprehensive Income
YUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
Year Ended March 31, 2020

NET INCOME

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

OTHER COMPREHENSIVE INCOME (LOSS) (Note 10) :Unrealized (losses) gains on available-for-sale securities
Foreign currency translation adjustments ・・・・・・・・・・・・・・・・・・・
Defined retirement benefit plan ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total other comprehensive loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
COMPREHENSIVE INCOME

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO :Owners of the parent ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Noncontrolling interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
See notes to consolidated financial statements.

25

2020

Millions of Yen

1,579

￥

(40)
(230)
(7)
(278)

2019
1,963

Thousands of U.S. Dollars(Note 1)$

2020

14,488(370)(2,112)(69)(2,551)

(40)
26
12
(1)

￥

1,301

￥

1,962

$

11,936

￥

1,265
35

￥

1,896
65

$

11,610326

Consolidated Statement of Changes in Equity
YUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
Year Ended March 31, 2020

Thousands

BALANCE, APRIL 1, 2018 ・・・・・・・・・・

Millions of Yen

Outstanding
Number of
Shares ofCommon Stock* Common
Stock(Note 12)

Accumulated Other
Comprehensive Income

CapitalSurplus

Unrealized
ForeignDefinedGains onCurrency Retirement
Retained Treasury Available-for- Translation
Benefit
Earnings
Stock Sale Securities Adjustments
Plan

34,974 ￥ 1,985 ￥ 2,023 ￥ 22,270 ￥ (354) ￥Net income ・・・・・・・・・・・・・・・・・・・・・・・

Cash dividends, ￥ 17 per share ・・(669)

BALANCE, MARCH 31, 2019 ・・・・・・・・

34,304

Net income ・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends, ￥ 17 per share ・・
Purchase of treasury stock ・・・・・・・

Net change in the year ・・・・・・・・・・・
BALANCE, MARCH 31, 2020 ・・・・・・・

164 ￥56 ￥ 26,243 ￥ 228 ￥ 26,472

1,903

Purchase of treasury stock ・・・・・・・
Net change in the year ・・・・・・・・・・・

97 ￥

1,903

(594)

1,985

2,023

23,579
1,532

1,903

(594)

(684)
(1,039)

(581)

(268)

Noncontrolling Total
Interests
Equity

Total

(40)

20

12

56

184

69

(684)

(594)

(6)

27

26,861

256

1,532

(581)

(316)

34,035 ￥ 1,985 ￥ 2,023 ￥ 24,531￥(1,355) ￥

(684)
20

27,117
1,532

(581)

(316)

(316)

(7)
(267)
(13)
(281)
62 ￥ 27,229 ￥ 242 ￥ 27,471

(40)
(219)
16 ￥ (34) ￥Thousands of U.S. Dollars (Note 1)
Accumulated Other
Comprehensive Income

BALANCE, MARCH 31, 2019 ・・・・・・・
Net income ・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends, $0.16 per share ・
Purchase of treasury stock ・・・・・・・
Net change in the year ・・・・・・・・・・・・

BALANCE, MARCH 31, 2010 ・・・・・・・

CommonStockCapitalSurplusRetained
Earnings

Treasury
Stock

Unrealized
ForeignDefinedGains onCurrency Retirement
Available-for- Translation
BenefitSale Securities Adjustments
Plan$ 18,217 $ 18,567 $ 216,324 $ (9,532) $521 $1,696 $

(2,900)$ 18,217 $ 18,567 $225,057 $(12,432) $Noncontrolling
Interests

639 $ 246,435 $

14,062(5,330)Total

2,349 $ 248,784

14,062

14,062(2,900)(2,900)(5,330)

(370)

150 $

(2,012)(316) $

(69)

Total
Equity(2,452)(5,330)(127)(2,579)570 $ 249,814 $ 2,222 $252,036

See notes to consolidated financial statements.

26

Consolidated Statement of Cash FlowsYUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
Years Ended March 31, 2020

2020
OPERATING ACTIVITIES:
Income before income taxes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Adjustments for:
Income taxes - paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Depreciation and amortization ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase (decrease) in provision for doubtful receivables ・・
Changes in assets and liabilities:
Decrease (Increase) in trade receivables・・・・・・・・・・・・・・・・・
Increase in inventories・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Decrease in trade payables・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total adjustments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 2,208

￥

2019

2020

2,783

$ 20,261(1,007)
705
4

(933)
782
(1)

(9,244)
6,468
41

1,307
813
(537)
64
1,349

175
(540)
(518)
544
(492)

11,995
7,465(4,935)592(12,382)

3,558

2,291

32,645(2,952)
1,650
(144)
10

(27,087)
15,137(1,326)94(39)(1,475)(1,653)
1,850
(193)
8
(0)
(73)
(61)

FINANCING ACTIVITIES:Dividends paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Dividends paid to noncontrolling interests・・・・・・・・・・・・・・・・・・・
Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash used in financing activities ・・・・・・・・・・・・・・・・・・

(581)
(49)
(316)
(946)

(594)
(38)
(684)
(1,316)(5,332)(453)(2,900)(8,686)

EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・

(151)

(7)

(1,391)NET INCREASE IN CASH AND CASH
EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

983

905

9,026

CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,669

3,763

42,835

CASH AND CASH EQUIVALENTS,
END OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 5,652

4,669$ 51,862

Net cash provided by operating activities・・・・・・・・・・・・・
INVESTING ACTIVITIES:
Increase in short-term investments ・・・・・・・・・・・・・・・・・・・・・・・・・・
Decrease in short-term investments ・・・・・・・・・・・・・・・・・・・・・・・・
Purchases of property, plant and equipment ・・・・・・・・・・・・・・・・
Proceeds from sales of property, plant and equipment ・・・・・
Purchases of investment securities ・・・・・・・・・・・・・・・・・・・・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash used in investing activities ・・・・・・・・・・・・・・・・・・・

See notes to consolidated financial statements.

27

Millions of Yen

Thousands of
U.S. Dollars(Note 1)￥

(359)
(13,540)

Notes to Consolidated Financial Statements
YUSHIN PRECISION EQUIPMENT CO., LTD. and Subsidiaries
Years Ended March 31, 2020

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been preparedin accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Act and its related accounting regulations andin accordance with accounting principles generally accepted in Japan("Japanese GAAP"), which are different in certain respects as to theapplication and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to the consolidated
financial statements issued domestically in order to present them in a form
which is more familiar to readers outside Japan. In addition, certain
reclassifications have been made in the 2019 consolidated financial
statements to conform to the classifications used in 2020.
The fiscal year-end dates of all consolidated subsidiaries except for Yushin
Precision Equipment (India) Pvt. Ltd. are different from that of theconsolidated balance sheet date of March 31. They are dated December 31,
and the financial statements of these subsidiaries as of the provisional
closing date of March 31 are used for consolidation purposes.
The consolidated financial statements are stated in Japanese yen, thecurrency of the country in which Yushin Precision Equipment Co., Ltd. (the"Company") is incorporated and operates. The translations of Japanese yenamounts into U.S. dollar amounts are included solely for the convenienceof readers outside Japan and have been made at the rate of ¥109 to $1, theapproximate rate of exchange at March 31, 2020. Such translations should
not be construed as representations that the Japanese yen amounts could
be converted into U.S. dollars at that or any other rate.
Amounts less than one million yen and one thousand U.S. dollars arerounded down, except for per-share data. Therefore, total or subtotal
amounts may not correspond with the aggregation of such accountbalances.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation - The consolidated financial statements as of March
31, 2020, include the accounts of the Company and all of its
subsidiaries (together, the "Group").
Under the control concept, those companies in which the Company isable to directly exercise control over operations are fully
consolidated.
All significant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized profit included in
assets resulting from transactions within the Group is also eliminated.
Yushin Europe GmbH was established during the year ended March
31, 2020, and therefore became consolidated subsidiary of theCompany.
b. Unification of Accounting Policies Applied to Foreign
Subsidiaries for the Consolidated Financial Statements - Under
Accounting Standards Board of Japan ("ASBJ") Practical Issues Task
Force ("PITF") No. 18, "Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for the Consolidated Financial
Statements," the accounting policies and procedures applied to aparent company and its subsidiaries for similar transactions andevents under similar circumstances should in principle be unified forthe preparation of the consolidated financial statements. However,financial statements prepared by foreign subsidiaries in accordancewith either International Financial Reporting Standards or generally
accepted accounting principles in the United States of America(Financial Accounting Standards Board Accounting Standards
Codification) tentatively may be used for the consolidation process,except for the following items that should be adjusted in the
consolidation process so that net income is accounted for inaccordance with Japanese GAAP, unless they are not material: (a)amortization of goodwill; (b) scheduled amortization of actuarial gainor loss of pensions that has been recorded in equity through othercomprehensive income; (c) expensing capitalized development costsof R&D; (d) cancellation of the fair value model of accounting forproperty, plant and equipment and investment properties andincorporation of the cost model of accounting; and (e) recording again or loss through profit or loss on the sale of an investment in an
equity instrument for the difference between the acquisition cost andselling price, and recording impairment loss through profit or loss forother-than-temporary declines in the fair value of an investment in an
equity instrument, where a foreign subsidiary elects to present inother comprehensive income subsequent changes in the fair value of
an investment in an equity instrument.
c. Cash Equivalents - Cash equivalents are short-term investments thatare readily convertible into cash and exposed to insignificant risk ofchanges in value. Cash equivalents include time deposits which matureor become due within three months of the date of acquisition.
d. Inventories - Inventories are principally stated at the lower of cost,
determined by the specific identification method for finished products
and work in process, and by the average method for raw materials andsupplies, or net selling value.
e. Securities - Securities are investment securities in the consolidatedbalance sheet. All investment securities are classified as available-for-salesecurities, which are not classified as either trading securities orheld-to-maturity debt securities, and are reported at fair value, withunrealized gains and losses, net of applicable taxes, reported in a
separate component of equity. The cost of securities sold is determinedbased on the moving-average method. For other-than-temporary
declines in fair value, investment securities are reduced to net realizablevalue by a charge to income.
f. Property, Plant and Equipment - Property, plant and equipment arestated at cost. Depreciation of property, plant and equipment of theGroup is principally computed by the declining-balance method at rates
based on the estimated useful lives of the assets. The range of useful
lives is principally from 7 to 40 years for buildings and structures andfrom 5 to 12 years for machinery and equipment.
g. Long-Lived Assets - The Group reviews its long-lived assets for
impairment whenever events or changes in circumstance indicate thecarrying amount of an asset or asset group may not be recoverable. An
impairment loss is recognized if the carrying amount of an asset or asset
group exceeds the sum of the undiscounted future cash flows expected
to result from the continued use and eventual disposition of the asset or
asset group. The impairment loss would be measured as the amount bywhich the carrying amount of the asset exceeds its recoverable amount,which is the higher of the discounted cash flows from the continued use
and eventual disposition of the asset or the net selling price at
disposition.
h. Warranty Reserve - In order to provide for future warranty expenses
for the Group's products, a warranty reserve is estimated and recorded
principally on the basis of the Company's historical experience.
i. Retirement Benefits - The Company has a funded defined benefit
pension plan and a funded defined contribution pension plan covering
substantially all of its employees. Certain subsidiaries have an unfunded
defined benefit plan or an unfunded defined contribution plan.
The Company accounts for the liability for retirement benefits based on
the projected benefit obligations and plan assets at the balance sheet
date. The projected benefit obligations are attributed to periods on abenefit formula basis. Actuarial gains and losses that are yet to be28

recognized in profit or loss are recognized within equity (accumulated
other comprehensive income), after adjusting for tax effects and arerecognized in profit or loss over 10 to 16 years, no longer than the
expected average remaining service period of the employees. The
discount rate is determined using a single weighted-average discountrate reflecting the estimated timing and amount of benefit payment.
Retirement benefits to directors are provided at the estimated amountwhich would be required if all directors retired at the balance sheet date.
The Company terminated its retirement benefit plan for directors on
June 29, 2006, and no additional provisions have been recorded sincethen. As of March 31, 2020 and 2019, the balance of the liability for
retirement benefits to directors was ¥66 million ($612 thousand), and ¥66
million provided in proportion to the term that present directors had
been in place before June 29, 2006.
j. Research and Development Costs - Research and development costs
are charged to income as incurred.
k. Bonuses to Directors - Bonuses to directors are accrued at the
year-end to which such bonuses are attributable.
l. Income Taxes - The provision for income taxes is computed based on
the pretax income included in the consolidated statement of income. The
asset and liability approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of assets
and liabilities. Deferred taxes are measured by applying currently
enacted income tax rates to the temporary differences.
m. Foreign Currency Transactions - All short-term and long-termmonetary receivables and payables denominated in foreign currencies
are translated into Japanese yen at the exchange rates at the balance
sheet date. The foreign exchange gains and losses from translation arerecognized in the consolidated statement of income to the extent thatthey are not hedged by forward exchange contracts.
n. Foreign Currency Financial Statements - The balance sheet accountsof the consolidated foreign subsidiaries are translated into Japanese yenat the current exchange rate as of the balance sheet date except for
equity, which is translated at the historical rate. Differences arising fromsuch translation are shown as "Foreign currency translation adjustments"
under accumulated other comprehensive income in a separate
component of equity. Revenue and expense accounts of consolidated
foreign subsidiaries are translated into Japanese yen at the averageexchange rate.
o. Per-Share Information - Basic net income per share is computed by
dividing net income attributable to common shareholders by theweighted-average number of common shares outstanding for theperiod.
Diluted net income per share is not disclosed as there are no
outstanding potentially dilutive securities.
Cash dividends per share presented in the accompanying consolidated
statement of income are dividends applicable to the respective fiscal
years, including dividends to be paid after the end of the year.

29

p. Accounting Changes and Error Corrections - Under ASBJ Statement
No. 24, "Accounting Standard for Accounting Changes and Error
Corrections," and ASBJ Guidance No. 24, "Guidance on AccountingStandard for Accounting Changes and Error Corrections," accounting
treatments are required as follows: (1) Changes in Accounting Policies –When a new accounting policy is applied following revision of an
accounting standard, the new policy is applied retrospectively unless therevised accounting standard includes specific transitional provisions, inwhich case the entity shall comply with the specific transitional
provisions. (2) Changes in Presentation – When the presentation offinancial statements is changed, prior-period financial statements arereclassified in accordance with the new presentation. (3) Changes in
Accounting Estimates – A change in an accounting estimate is accounted
for in the period of the change if the change affects that period only, andis accounted for prospectively if the change affects both the period of
the change and future periods. (4) Corrections of Prior-Period Errors –When an error in prior-period financial statements is discovered, thosestatements are restated.
q. New Accounting Pronouncements - On March 31, 2020, ASBJ issued
ASBJ Statement No. 29, "Accounting Standard for Revenue Recognition,"
ASBJ Guidance No. 30, "Implementation Guidance on AccountingStandard for Revenue Recognition," and ASBJ Guidance No. 19,"Implementation Guidance on Disclosures about Fair Value of Financial
Instruments." The core principle of the standard and guidance is that anentity recognizes revenue to depict the transfer of promised goods orservices to customers in an amount that reflects the consideration towhich the entity expects to be entitled in exchange for those goods orservices. An entity should recognizes revenue in accordance with thatcore principle by applying the following steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performanceobligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a
performance obligation
The accounting standard and guidance are effective for annual periods
beginning on or after April 1, 2021. Earlier application is permitted forannual periods beginning on or after April 1, 2018. The Company is in theprocess of determining the period from which the Company will apply
the accounting standard and guidance. The Company is currently
evaluating the effect that the adoption of the accounting standard andguidance will have on its consolidated financial statements.

3. SECURITIES(1) Investment Securities
The costs and aggregate fair values of investment securities as of March 31, 2020 and 2019, were as follows:

Securities classified as:
Cost
Available-for-sale:
Equity securities ・・・・・・・・・・・・・ ￥ 136

Millions of Yen

2020

Unrealized Unrealized
Gains
LossesFair Value
￥

25

￥

￥

1

2019

Cost
￥ 136

159

Unrealized Unrealized
Gains
LossesFair Value
￥

￥ 218

81

Thousands of U.S. Dollars
Securities classified as:
Cost
Available-for-sale:
Equity securities ・・・・・・・・・・・・・ $ 1,250

2020

Unrealized Unrealized
Gains
LossesFair Value
$

234

$

$ 1,467

17(2) Proceeds and realized gains on available-for-sale securities which were sold during the year ended March 31, 2019,were as follows:
March 31, 2019
Available-for-sale :Equity securities ・・・・・・・・・・・・・・・・・・・

Millions of Yen

Proceeds￥

Realized Gains￥

0

Realized Losses0

For the year ended March 31, 2020, the proceeds, realized gains, and realized losses are not disclosed since there were noavailable-for-sale securities sold during the year ended March 31, 2020.

4. INVENTORIESInventories at March 31, 2020 and 2019, consisted of thefollowing:

2020

Millions of Yen

2019

Thousands of
U.S. Dollars

2020

Finished products ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Work in process ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Raw materials and supplies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

772
1,120
3,165

￥

717
1,696
3,619

$

7,088
10,28029,041

Total

￥

5,058

￥

6,033

$

46,411・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5. RETIREMENT AND PENSION PLANS
The Company has severance payment plans for employees. Under most circumstances, employees terminating their employment
are entitled to retirement benefits determined based on the rate of pay at the time of termination, years of service, and certain
other factors. Such retirement benefits are made in the form of a lump-sum severance payment or annuity payments from atrustee.
The Company has a funded defined benefit pension plan and a funded defined contribution pension plan for employees which
cover approximately 50% each of their benefits. Certain subsidiaries have an unfunded defined benefit plan or an unfunded
defined contribution plan.

30

(1) The changes in defined benefit obligations for the years ended March 31, 2020 and 2019, were as follows:

2020

Millions of Yen

2019

Thousands of
U.S. Dollars

2020

Balance at beginning of year (as previously reported) ・・・
Current service cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Interest cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Actuarial losses (gains) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Benefits paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

714
63
1
4
(12)
(10)

￥

638
63
1
10
(4)
4

$

6,554
581
11
44
(112)
(94)

Balance at end of year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

761

￥

714

$

6,984

(2) The changes in plan assets for the years ended March 31, 2020 and 2019, were as follows:

2020

Millions of Yen

Thousands of
U.S. Dollars

2019

2020

Balance at beginning of year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected return on plan assets ・・・・・・・・・・・・・・・・・・・・・・・・・
Actuarial gains (losses) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Contributions from the employer ・・・・・・・・・・・・・・・・・・・・・・・
Benefits paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

942
9
3
42
(14)

￥

861
8
35
41
(4)

$

8,649
86
33
392
(134)

Balance at end of year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

983

￥

942

$

9,027

(3) Reconciliations between the liability recorded in the consolidated balance sheet and the balances of defined benefit
obligations and plan assets as of March 31, 2020 and 2019, were as follows:

2020

Millions of Yen

Thousands of
U.S. Dollars

2019

2020

Funded defined benefit obligations ・・・・・・・・・・・・・・・・・・・・・
Plan assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unfunded defined benefit obligations ・・・・・・・・・・・・・・・・・・・

￥

698
(983)
(285)
62

￥

648
(942)
(294)
65

$

6,407
(9,027)(2,619)577

Net assets arising from defined benefit obligations ・・・・・

￥

(222)

￥

(228)

$

(2,042)2020

Millions of Yen

Thousands of
U.S. Dollars

2019

2020

Liability for retirement benefits ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Asset for retirement benefits ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

62
(285)

￥

65
(294)

$

577
(2,619)Net assets arising from defined benefit obligations ・・・・・・

￥

(222)

￥

(228)

$

(2,042)(4) The components of net periodic benefit costs for the years ended March 31, 2020 and 2019, were as follows:

2020

31

Millions of Yen

2019

Thousands of
U.S. Dollars

2020

Service cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Interest cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected return on plan assets ・・・・・・・・・・・・・・・・・・・・・・・・・・
Recognized actuarial gains ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

63
1
(9)
9

￥

63
1
(8)
6

$

581
11
(86)
89

Net periodic benefit costs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

65

￥

62

$

596

(5) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plan
Thousands offor the years ended March 31, 2020 and 2019, were as follows:
Millions of Yen
U.S. Dollars

2020

Actuarial gains (losses) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2019

(10)

￥

2020

18

$

(99)

(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement
Thousands ofbenefit plan as of March 31, 2020 and 2019, were as follows:
Millions of Yen
U.S. Dollars

2020

Unrecognized actuarial gains・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2019

89

(7) Plan assets
a. Components of plan assets
Plan assets as of March 31, 2020 and 2019, consisted of the following:

￥

2020

100

2020

2019

Domestic debt investments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Domestic equity investments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign debt investments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign equity investments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
General accounts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Others ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

0.0 %
9.4
12.0
15.9
2.9
59.8

0.0 %
17.3
8.2
28.4
3.1
43.0

Total

100.0 %

100.0 %

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・$

820

Others mainly consists of short-term funds and alternative.
b. Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return
which are expected currently and in the future from the various components of the plan assets.
(8) Assumptions used for the years ended March 31, 2020 and 2019, were set forth as follows:
Discount rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected rate of return on plan assets ・・・・・・・・・・・・・・・・・・・

2020

2019

0.2 %
1.0 %

0.2 %
1.0 %

(9) Defined contribution plans
The contributions to the defined contribution pension plan of the Company and the defined contribution plan of certain subsidiarywere ¥63 million ($578 thousand) and ¥60 million for the years ended March 31, 2020 and 2019, respectively.

6. EQUITY
Japanese companies are subject to the Companies Act of Japan (the"Companies Act"). The significant provisions in the Companies Act that affectfinancial and accounting matters are summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time
during the fiscal year in addition to the year-end dividend upon resolution
at the shareholders' meeting. Additionally, for companies that meet certain
criteria including (1) having a Board of Directors, (2) having independent
auditors, (3) having an Audit & Supervisory Board, and (4) the term ofservice of the directors being prescribed as one year rather than thenormal two-year term by its articles of incorporation, the Board of
Directors may declare dividends (except for dividends-in-kind) at any time
during the fiscal year if the company has prescribed so in its articles ofincorporation. The Company meets all the above criteria and, accordingly,
the Board of Directors may declare dividends (except for
dividends-in-kind) at any time during the fiscal year.
The Companies Act permits companies to distribute dividends-in-kind(noncash assets) to shareholders subject to a certain limitation andadditional requirements.

Semiannual interim dividends may also be paid once a year upon
resolution by the Board of Directors if the articles of incorporation of thecompany so stipulate. The Companies Act provides certain limitations on
the amounts available for dividends or the purchase of treasury stock. The
limitation is defined as the amount available for distribution to theshareholders, but the amount of net assets after dividends must be
maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve andSurplus
The Companies Act requires that an amount equal to 10% of dividends
must be appropriated as a legal reserve (a component of retained
earnings) or as additional paid-in capital (a component of capital surplus)
depending on the equity account charged upon the payment of such
dividends until the aggregate amount of legal reserve and additional
paid-in capital equals 25% of the common stock. Under the Companies
Act, the total amount of additional paid-in capital and legal reserve may bereversed without limitation. The Companies Act also provides that common
stock, legal reserve, additional paid-in capital, other capital surplus, andretained earnings can be transferred among the accounts within equity
under certain conditions upon resolution of the shareholders.
32

c. Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stockand dispose of such treasury stock by resolution of the Board of Directors.
The amount of treasury stock purchased cannot exceed the amountavailable for distribution to the shareholders, which is determined by aspecific formula. Under the Companies Act, stock acquisition rights arepresented as a separate component of equity. The Companies Act also
provides that companies can purchase both treasury stock acquisitionrights and treasury stock. Such treasury stock acquisition rights arepresented as a separate component of equity or deducted directly fromstock acquisition rights.

7. INCOME TAXESThe Company is subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective
statutory tax rate of approximately 30.5% each for the years ended March 31, 2020 and 2019.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at March 31, 2020 and 2019,were as follows:

Deferred tax assets:
Inventories ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Software ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Enterprise tax payable ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Accrued bonuses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Retirement benefits to directors ・・・・・・・・・・・・・・・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Less valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries・・・・・・・・・・
Asset for retirement benefits ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unrealized gains on available-for-sale securities ・・・・・・・
Defined retirement benefit plan ・・・・・・・・・・・・・・・・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2020

Millions of Yen

2019

2020

281
297
133
9
83
19
20
77
(10)
912

￥

340
255
159
27
83
26
20
70

$

￥

983

$

￥

￥

178
59
24
30
22
315

$

￥

175
59
7
27
19
288

$

1,608
548
66
250
177
2,650

￥

623

￥

668

$

5,724

￥

￥
￥

Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:

Investments and other assets - Deferred tax assets ・・・・・・・・・・・・
Long-term liabilities - Deferred tax liabilities ・・・・・・・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Thousands of
U.S. Dollars

￥
￥

2020

Millions of Yen

658
(34)
623

￥
￥

2019

705
(37)
668

2,585
2,733
1,227
83
764
181
186
712
(100)
8,375

Thousands of
U.S. Dollars
$
$

2020

6,040
(315)
5,724

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying
consolidated statement of income for the year ended March 31, 2020, is as follows:

2020

33

Normal effective statutory tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expenses not deductible for income tax purposes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Per-capita inhabitant tax ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Difference in income tax rates applicable to income in certain foreign countries ・・・・・・・・・・・・・・・・・・・・・・
Undistributed earnings of foreign subsidiaries ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Tax credit for research and development expenses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other – net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

30.5 %
0.4
0.7
(2.9)
0.1
(1.2)
0.9

Actual effective tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

28.5

For the year ended March 31, 2019, a reconciliation is not disclosed since the difference of the normal effective statutory tax rate andactual effective tax rate is less than 5.0% of the normal effective statutory tax rate.

8. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥369 million ($3,385 thousand) and ¥413 million for the years ended
March 31, 2020 and 2019, respectively.

9. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group policy for Financial Instruments
The Group does not use financial instruments for speculative purposes based on its capital financing plan. Cash surpluses, ifany, are invested in low-risk financial assets, including short-term time deposits. Funds on hand are used to fund ongoing
operations. Derivatives are not used for speculative purposes, but to manage exposure to financial risks.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables, such as trade notes and trade accounts, are exposed to customer credit risk. Receivables in foreign currencies are
exposed to the market risk of fluctuation in foreign currency exchange rates. Investment securities are exposed to the risk ofmarket price fluctuations. Payment terms of payables, such as trade notes and trade accounts, are primarily less than fourmonths. Payment terms of income taxes payable and payables – construction and other are primarily less than one year.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty's failure to repay or service debt according to the contractual
terms. The Group manages its credit risk from receivables based on internal guidelines, which include monitoring of payment
terms and balances of major customers by each business administration department to identify the default risk of customers at
an early stage. Investment securities are managed by monitoring market values and financial position of issuers on a regularbasis.
(4) Fair Value of Financial Instruments
Millions of Yen

Thousands of U.S. Dollars

Carrying
AmountFair Value

Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・￥￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 14,216￥ 14,216$ 130,429$ 130,429

Payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes payable ・・・・・・・・・・・・・・

￥

2,116
137

￥

2,116
137

$

19,4191,265$

19,4191,265

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2,254

￥

2,254

$

20,684$

20,684

March 31, 2020

5,652
2,993
5,410
159

5,652
2,993
5,410
159

Unrealized
Gains/Losses

Carrying
Amount
$51,862
27,46049,6391,467

Fair Value$

Unrealized
Gains/Losses

51,862
27,46049,6391,467

34

March 31, 2019

Carrying
AmountMillions of Yen

Unrealized
Fair Value Gains/Losses

Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 13,425￥ 13,425

Payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes payable ・・・・・・・・・・・・・・

￥

2,859
523

￥

2,859
523

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

3,383

￥

3,383

4,669
1,693
6,844
218

￥

4,669
1,693
6,844
218

Cash and Cash Equivalents, Short-Term Investments, Receivables and Payables, and Income Taxes Payable
The carrying values of cash and cash equivalents, short-term investments, receivables and payables, and income taxes payable
approximate fair value because of their short maturities.
Investment Securities

The fair values of investment securities are measured at the quoted market price of the stock exchange for the equity instruments.
Fair value information for investment securities by classification is included in Note 3.
(5) Maturity Analysis for Financial Assets with Contractual Maturities
Millions of Yen
March 31, 2020

Due in 1 Yearor Less

Cash and cash equivalents ・・・・・・・
Short-term investments ・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・

￥

5,652
2,993
5,410

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

14,056

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 YearsMillions of Yen
March 31, 2019

Due in 1 Yearor Less

Cash and cash equivalents ・・・・・・・
Short-term investments ・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・

￥

4,669
1,693
6,844

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

13,207

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 YearsThousands of U.S. Dollars
March 31, 2020

35

Due in 1 Yearor Less

Cash and cash equivalents ・・・・・・・
Short-term investments ・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・$

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・$ 128,962

51,862
27,46049,639Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 Years10. OTHER COMPREHENSIVE INCOME (LOSS)
The components of other comprehensive income (loss) for the years ended March 31, 2020 and 2019, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
Unrealized gains on available-for-sale securities:
Amount arising during the year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Reclassification adjustments to profit or loss ・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign currency translation adjustments:
Adjustments arising during the year・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Defined retirement benefit plan:
Adjustments arising during the year・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Reclassification adjustments to profit or loss ・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total other comprehensive loss

・・・・・・・・・・・・・・・・・・

2020
￥

(58)

￥

(58)
17
(40)

￥ (230)(230)￥ (230)

￥

￥

2019
￥

￥
￥
￥

(1)
(9)
(10)
3
(7)

￥ (278)

2020

(58)
0
(57)
17
(40)

$

(532)

$

(532)
162
(370)

26
26
26

$

24
(6)
18
(5)
12

$

$

(10)
(89)
(99)
30
(69)

(1)

$

(2,551)￥$(2,112)(2,112)(2,112)

11. NET INCOME PER SHARE
Details of the basic net income per share (EPS) for the years ended March 31, 2020 and 2019, were as follows:Year Ended March 31, 2020

Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Thousands ofSharesNet Income

WeightedAverage Shares￥ 1,532

34,057

￥

45.01

￥

34,901

￥

54.54

Yen

U.S.
Dollars

EPS$ 0.41

Year Ended March 31, 2019

Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・

1,903

Diluted net income per share is not disclosed as there are no outstanding potentially dilutive securities.

12. SUBSEQUENT EVENTSAppropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2020, was approved at the Company's Board of Directors meeting
held on May 14, 2020:36

Millions of Yen

Thousands of
U.S. Dollars￥ 340$ 3,122Year-end cash dividends, ¥ 10 ($ 0.09 ) per share ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

13. SEGMENT INFORMATION
Under ASBJ Statement No. 17, "Accounting Standard for Disclosures about Segments of an Enterprise and Related Information"
and ASBJ Guidance No. 20, "Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and RelatedInformation," an entity is required to report financial and descriptive information about its reportable segments. Reportablesegments are operating segments or aggregations of operating segments that meet specified criteria. Operating segments arecomponents of an entity about which separate financial information is available and for which such information is evaluatedregularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally,
segment information is required to be reported on the same basis as is used internally for evaluating operating segment
performance and deciding how to allocate resources to operating segments.
(1) Description of Reportable Segments
Segments used for financial reporting are the Company's constituent units for which separate financial information is available
and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of resources andevaluating performance.
The Company carries out the development, production, sales, and after-sales maintenance of take-out robots forinjection-molded products and peripheral equipment, including labor-saving systems. In the domestic market, these operations
are handled by the Company; overseas markets – U.S.A., Asia (South Korea, Taiwan, China, Indonesia, Vietnam, Malaysia,
Thailand, and India) and Europe (UK and Germany) – are serviced by local subsidiaries, including Yushin America Inc. (U.S.A.),
Yushin Korea Co., Ltd. (Asia), and Yushin Automation Limited (Europe). The local subsidiaries are independently managed units,with separately drafted strategies and activities.
Accordingly, the Company's operations, based on its production, sales, and after-sales maintenance setups, are geographicallygrouped into four reportable segments: Japan, Asia, Europe, and the U.S.A.
(2) Methods of Measurement for the Amounts of Sales, Profit (Loss), Assets, and Other Items for Each Reportable Segment
The accounting procedure for the reportable segments is described in Note 2, "Summary of significant accounting policies."
Segment profit by reportable segment is calculated based on operating income.
Intersegment sales and transfers are based on a realized market price basis.
(3) Information about Sales, Profit, Assets and Other Items is as Follows:
Millions of Yen

2020

Reportable Segment

Japan
Asia
EuropeU.S.A.
Total
Reconciliations Consolidated
Sales:
Sales to external customers ・・・・・・・・・・・・・・・・ ￥ 10,757 ￥ 3,718 ￥ 2,636 ￥ 2,899 ￥ 20,011￥ 20,011
Intersegment sales or transfers ・・・・・・・・・・・・・
3,993
284
1
12
4,292 ￥ (4,292)
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ￥ 14,751 ￥ 4,003 ￥ 2,637 ￥ 2,912 ￥ 24,304 ￥ (4,292) ￥ 20,011
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ￥ 1,276 ￥Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
19,988Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
628
Increase in property, plant andequipment and intangible assets ・・・・・・・・
144

37

287 ￥
3,662

230 ￥
1,830

24

16

34

703

10

23

19

198

269 ￥ 2,064 ￥
2,185
27,666245 ￥ 2,309
4,266
31,933
1

705
198

Millions of Yen

2019

Sales:
Sales to external customers ・・・・・・・・・・・・・・
Intersegment sales or transfers ・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・・・・・

￥

Japan

12,851 ￥4,892￥ 17,474 ￥￥Reportable Segment

Asia

EuropeU.S.A.

Total

4,924 ￥
275
5,200 ￥

914 ￥
3
917 ￥

2,045 ￥
22,684

533 ￥
3,987

81 ￥
2,051

702

25

16

34

778

210

20

18

7

256

Reconciliations Consolidated

3,412 ￥ 21,833
28
5,200 ￥
3,441 ￥ 27,033 ￥￥ 21,833(5,200)(5,200) ￥ 21,833

307 ￥ 2,967 ￥
2,159
30,883(206) ￥ 2,760
2,313
33,1974782
256

Thousands of U.S. Dollars

2020

Sales:
Sales to external customers ・・・・・・・・・・・・・・・
Intersegment sales or transfers ・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・・・・・・

Japan

Asia

11,708 $
183,383

2,638 $
33,6002,117 $
16,789

5,767

223

150

312

6,453

1,327

100

215

181

1,824

98,694 $36,637$ 135,332 $$$Reportable Segment

34,112 $2,612
36,725 $Europe24,185 $14
24,199 $U.S.A.

Total

Reconciliations Consolidated

26,600 $ 183,593$ 183,593
119
39,384 $ (39,384)
26,719 $ 222,977 $ (39,384) $ 183,593
2,471 $ 18,935 $ 2,252 $ 21,188
20,048
253,821
39,145292,966
14

6,468
1,824

Note 1: Reconciliations for the year ended March 31, 2020, are as follows:(1) Reconciliations to segment profit of ¥245 million ($2,252 thousand) include eliminations for intersegment
transactions of ¥35 million ($324 thousand) and inventory reconciliation of ¥210 million ($1,927 thousand).
(2) Reconciliations to segment assets of ¥4,266 million ($39,145 thousand) include eliminations for intersegment
transactions of ¥(2,552) million ($(23,419) thousand) and operating funds of surplus assets held by the Company(cash and deposits and others) of ¥6,819 million ($62,564 thousand) and others.
(3) Reconciliations to depreciation of ¥1 million ($14 thousand) include eliminations for equipment related toresearch and development activities that do not belong to the reportable segments.
Note 2: Segment profit is reconciled to be consistent with operating income shown in the consolidated statements ofincome.
(4) Information about Products and Services
Millions of Yen
Take-Out
RobotsSales to external customers ・・・・・・・・・・・・・・・・・￥

12,7702020

Custom-Ordered
Equipment￥

4,056

Parts and
Maintenance
Services

￥

3,185

Total
￥

20,01138

Millions of Yen

2019

Take-Out
RobotsSales to external customers￥

・・・・・・・・・・・・・・・・

Custom-Ordered
Equipment￥

15,512

Parts and
Maintenance
Services

￥

2,880

3,440

Total
￥

21,833Thousands of U.S. Dollars

2020

Take-Out
RobotsSales to external customers$

・・・・・・・・・・・・・・・・

Custom-Ordered
Equipment

Parts and
Maintenance
Services$$

117,157

37,211

29,224

Total$

183,593(5) Information about Geographical Areasa. SalesMillions of Yen
Japan
￥

8,159

2020

China
Taiwan￥2,395

Other Asia￥

Europe
￥

3,504

2,079

North America
￥

3,343

Other
￥

527

Total
￥ 20,011

Millions of Yen
Japan
￥

9,304

2019

China
Taiwan￥2,816

Other Asia￥

Europe
￥

4,876

939

North America
￥

3,233

Other
￥

663

Total
￥

21,833Thousands of U.S. Dollars
Japan$

74,861

2020

China
Taiwan$21,975

Other Asia$

32,154

Europe$19,081

North America$

30,677

Other
$

4,843

Total
$

183,593

Note: Sales are classified by country or region based on the location of customers.
b. Property, plant and equipment
Information is omitted because property, plant and equipment in Japan accounted for over 90% of property, plant and equipmenton the consolidated balance sheet.
(6) Information about Major Customers
Information is omitted because there were no customers that accounted for 10% or more of total net sales recorded in the
consolidated statement of income.

39Independent Auditor’s Report

40

41

42

Company Profile(As of March 31, 2020)

Company Name

: YUSHIN PRECISION EQUIPMENT CO., LTD.

Establishment: October 1973

Head Office: 555 Kuzetonoshiro-cho, Minami-ku, Kyoto, Japan 601-8205

Capital: 1,985 million yen

Phone : +(81)75-933-9555 Fax : +(81)75-934-4033

Number of Employees : 689 (Including consolidated subsidiaries) and 414 (Yushin Precision Equipment Co., Ltd. only)
Listed Stock Exchange : First Section, Tokyo
Securities Identification Code : 6482

Major Shareholders(As of March 31, 2020)

Number of Shares held
(thousand)Yushin Industry Co., Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
The Master Trust Bank of Japan, Ltd. (Trust Account) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Miki Murata ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

11,992

35.23

1,847

5.43

1,251

3.68

2,703

Takayo Kotani ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,846

The Kyoto Chuo Shinkin Bank, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,088

Japan Trustee Service Bank, Ltd. (Trust Accounts) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Mayumi Kotani ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,040

The Bank of Kyoto, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

704

MUFG Bank, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
SMBC Trust Bank Ltd. (Sumitomo Mitsui Banking Corporation,

Retirement and severance benefit trust account) ・・・・・・・・・・・・・・・・・・

Percentage ofShares held (%)

849

648

7.94

5.43

3.20

3.06

2.50

2.07
2.01

Note: “Percentage of Shares held (%)” is calculated after deducting the number of treasury stock (1,602,454 shares).

Distribution of ownership among shareholders
Treasury stock:
4.50%

Securities firms:
0.85%

Foreign investors:
10.39%

Individuals and others:
21.95%

Total
35,638,066
sharesOther
domestic
companies:
34.86%

Financial
institutions:27.45%

43

Other domestic
companies:
47 persons

Securities firms: 34 persons

Foreign investors:
114 persons

Treasury stock: 1 person

Financial institutions: 26 persons

Total
4,348
persons
Individuals and others:
4,126 persons

555 Kuzetonoshiro-cho, Minami-ku, Kyoto
601-8205 JAPANwww.yushin.com

2020.08