FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Three Months Ended June 30, 2019
Tokyo, Japan, August 9, 2019—Kurita Water Industries Ltd. (TSE Securities Code 6370) announced
net sales of 64,305 million yen and profit attributable to owners of parent of 7,266 million yen, or
64.71 yen per share, for the three months ended June 30, 2019 (April 1, 2019 – June 30, 2019).
The Kurita Group (Kurita Water Industries Ltd. and its consolidated subsidiaries and equity
method affiliates) is applying the International Financial Reporting Standards (IFRS) from the firstquarter of the fiscal year ending March 31, 2020. The figures for the same period of the previous
fiscal year and for the previous consolidated fiscal year are also compliant with IFRS. For
information about the difference between financial data under IFRS and those under Japanese GAAP,
please refer to Notes to Consolidated Financial Statements (First-time Adoption) on page 13 of theattached document.
Results of Operations
Total consolidated orders for the Kurita Group in the three months ended June 30, 2019 rose 3.2%
from the level of the year-ago period, to 72,705 million yen, and net sales increased 3.3%, to 64,305
million yen. Operating profit was 10,182 million yen, up 528.9% versus the year-ago period, profit
before tax was 10,375 million yen, up 447.5%, and profit attributable to owners of parent amounted
to 7,266 million yen, up 396.7%. Operating profit and profit at other levels rose significantly, chiefly
reflecting a gain on the sale of fixed assets of 4,764 million yen in the first quarter under review andthe absence of a provision for an allowance for loss on transfer of business of 2,869 million yen
posted in the same quarter of the previous fiscal year.
Looking at the market environment surrounding the Kurita Group, in Japan, production in the
manufacturing industry was weak as exports saw sluggish growth. Meanwhile, capital expenditure
was firm on the back of robust corporate earnings. Overseas, while economic growth slowed in
China and emerging countries in Asia and in Europe, reflecting the growing effects of trade dispute
between the United States and China, the U.S. economy remained firm. Overall, the global economy
grew moderately.
In this environment, the Group strengthened its sales system in each market and each region tobuild closer relationships with customers. Meanwhile, the Group promoted proposals of totalsolutions that will contribute to solving issues of customers, such as a reduced environmental impact,energy saving and productivity improvement.
From the first quarter under review, the operating results at U.S.-based U.S. Water Services, Inc.,
which was acquired in the previous fiscal year, as well as U.S.-based Avista Technologies, Inc. andU.K.-based Avista Technologies (UK) Ltd., which were acquired in the first quarter under review areconsolidated.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 28,946 million yen, up 7.8%
versus the same period of the fiscal year ended March 31, 2019, while net sales rose 10.2%, to28,023 million yen.
Operating profit stood at 2,387 million yen, moving into profit from an operating loss of 545
million yen in the same period of the previous fiscal year, chiefly reflecting a decrease in otherexpenses from the same period of the previous fiscal year due to the absence of a provision for anallowance for loss on transfer of business of 2,869 million yen (a temporary loss) related to thealuminum compound business in Europe posted in the same period of the previous fiscal year.
Orders and net sales in Japan, primarily orders and net sales of process treatment chemicals foriron and steel, increased, reflecting the Group’s efforts to gain new customers by proposing totalsolutions that will contribute to energy saving at customers’ plants.
Orders and net sales rose also overseas despite the effect of the transfer of the aluminum1

compound business in Europe in the previous fiscal year, primarily due to the new consolidation ofoperating results (for three months) in the water treatment chemicals business at U.S. Water Services,
Inc.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 43,758 million yen, up 0.4%
versus the same period of the previous fiscal year. Net sales declined 1.5%, to 36,281 million yen.
Operating profit came to 7,889 million yen, up 257.0% year on year, reflecting a gain on sale of
fixed assets of 4,746 million yen posted in other income resulting primarily from the sale of certain
equipment in the ultrapure water supply business and the absence of the effect of unprofitableprojects in the same period of the previous fiscal year.
In Japan, orders for water treatment facilities for the electronics industry decline from the same
period of the previous fiscal year, during which orders for large projects were received. However, net
sales increased thanks to progress in construction work in projects for which orders were received in
the previous fiscal year. Both orders and net sales rose in maintenance services due to the orders for
expansion and renovation projects for the purpose of increasing production capacity at customers’
plants.
Orders for water treatment facilities for general industries climbed, but net sales remained flat.
Both orders and net sales in maintenance services fell in reaction to strong orders and net sales in thesame period of the previous fiscal year. Both orders and net sales of facilities for electric power
plants increased. Orders for soil remediation rose sharply due to orders for a large project, but net
sales declined, reflecting a stalling of sales from large projects.
Overseas, orders increased, chiefly attributable to the new consolidation of operating results (forthree months) in the water treatment facilities business of U.S. Water Services, Inc. However, net
sales decreased in reaction to sales from large projects posted in the same period of the previous
fiscal year. Net sales in the ultrapure water supply business in Japan and overseas fell due to theeffect of changes in contracts with certain customers.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 384,369 million yen, an increase of 25,703 million yen from the end of the previous
fiscal year)
Current assets totaled 150,462 million yen at the end of the first quarter (June 30, 2019), a decreaseof 663 million yen from the end of the previous fiscal year (March 31, 2019). This was mainly
attributable to a decrease in cash and cash equivalents of 3,745 million yen, chiefly reflecting thepayment of acquisition expenses in North America and Europe (Water Treatment Chemicals
business) and payments for facilities in the ultrapure water supply business (Water Treatment
Facilities business), offsetting an increase in trade and other receivables of 2,370 million yen chiefly
due to an increase in sales.
Non-current assets totaled 233,906 million yen at the end of the first quarter, an increase of 26,366
million yen from the end of the previous fiscal year. Property, plant and equipment increased 6,037
million yen, chiefly due to capital investment in the ultrapure water supply business (Water
Treatment Facilities business). Right-of-use assets rose 6,505 million yen, chiefly reflecting theacquisition of the right of use of land. Goodwill climbed 6,997 million yen due to acquisitions ofAvista Technologies, Inc. and Avista Technologies (UK) Ltd. Investments accounted for using
equity method increased 6,469 million yen owing to an increase in equity method affiliates (Water
Treatment Chemicals business and Water Treatment Facilities business).
2) Liabilities: 144,651 million yen, an increase of 25,100 million yen from the end of the previous
fiscal year.
Current liabilities totaled 92,246 million yen at the end of the period, an increase of 19,124 million
yen from the end of the previous fiscal year. This was mainly due to an increase in borrowings of2

19,992 million yen resulting from the implementation of a commitment line of 20,000 million yen.
Non-current liabilities totaled 52,404 million yen at the end of the period, an increase of 5,976
million yen from the end of the previous fiscal year. This was primarily attributable to an increase inlease liabilities of 6,303 million yen due to the acquisition of land-use rights.
3) Equity: 239,717 million yen, an increase of 603 million yen from the end of the previous fiscal
yearThis mainly reflected an increase in retained earnings of 4,439 million yen chiefly due to the postingof a profit for the period, partly offset by a decrease in other components of equity of 3,768 million
yen due to a decline in exchange differences on translation of foreign operations associated with thestronger yen against foreign currencies.
Cash Flows
Consolidated net cash and cash equivalents at the end of the first quarter (June 30, 2019) totaled
31,801 million yen, a decrease of 3,745 million yen from the end of the previous fiscal year (March
31, 2019).
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the first quarter ended June 30, 2019 totaled 3,831
million yen, a decrease of 20,280 million yen from the same period of the previous fiscal year.
Inflows from profit before tax of 10,375 million yen, depreciation and amortization of 4,004 million
yen, and a decrease in trade and other receivables of 1,664 million yen were partly offset by adecrease in trade and other payables of 1,975 million yen and income taxes paid of 5,677 million
yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 22,658 million yen, an increase of 13,363 million yen
from the same period of the previous fiscal year. Cash was used for purchases of property, plant andequipment of 6,904 million yen, payments for acquisition of business of 8,326 million yen, andpurchases of shares and investments in capital of subsidiaries and affiliates of 5,799 million yen.
3) Cash Flows from Financing Activities
Net cash provided by financing activities totaled 15,702 million yen, an increase of 20,586 million
yen from the same period of the previous fiscal year. Inflows chiefly from a net increase in
short-term borrowings of 19,999 million yen were partly offset by dividends paid of 2,910 million
yen.
The Group’s basic policy is to constantly secure liquidity necessary for business operations andresource of funds. Short-term working capital is basically supplied by the Group’s own funds.
Capital investment and other investments in growth fields depend chiefly on the Group’s own funds,
but the Group considers financing through bank loans as needed. As of the end of the first quarter
under review, the Group has concluded commitment line contracts with four financial institutions(realized borrowings: 20,000 million yen; unrealized borrowings: 50,600 million yen).
Outlook for the Fiscal Year Ending March 31, 2020
The Group revises the earnings forecasts for the first half and the full year of the fiscal year ending
March 31, 2020 that were disclosed in “Kurita Water Industries Reports Earnings for the Fiscal Year
ended March 31, 2019” announced on May 13, 2019 to reflect the effects of the acquisition of
U.S.-based Avista Technologies, Inc. and UK-based Avista Technologies (UK) Ltd. in the firstquarter under review as well as other income, which is expected to exceed the initial forecast andother expenses, which are likely to be less than the initial forecast.
3

(Consolidated business forecasts)
Revision to the consolidated business forecast for the first half of the fiscal year ending March 31,
2020 (April 1, 2019 – September 30, 2019)
Net sales

Profit attributable

Basic earnings
per share

Operating profit Profit before tax to owners of parent

Previous forecast (A)Million yen
133,800

Million yen
15,500Million yen
15,600Million yen
11,000Yen
97.97

Revised forecast (B)134,600

16,30016,40011,600103.31

Change (B-A)
Percentage change (%)

800
0.6

800
5.2

800
5.1

600
5.5

5.34
5.5

Revision to the consolidated business forecast for the fiscal year ending March 31, 2020 (April 1,
2019 – March 31, 2020)
Net sales

Profit attributable

Basic earnings
per share

Operating profit Profit before tax to owners of parent

Previous forecast (A)Million yen
278,000

Million yen
29,000Million yen
29,200Million yen
20,600Yen
183.47

Revised forecast (B)Change (B-A)

280,000
2,000

30,0001,000

30,2001,000

21,300700

189.71
6.24

Percentage change (%)

0.7

3.4

3.4

3.4

3.4

(Note) The Company is voluntarily applying the International Financial Reporting Standards (IFRS) to its consolidated
financial statements from the first quarter of the fiscal year ending March 31, 2020 under review. The revisions
to the consolidated business forecasts above are prepared under IFRS. The results for the first half of the fiscal
year ended March 31, 2019 and the results for the fiscal year ended March 31, 2019 are not stated here because
Japanese GAAP was applied in the fiscal year ended March 31, 2019.

(Note on forward-looking statements)
The forward-looking statements such as business forecasts included in this document are based on the information
available to the Company at the time of the announcement and on certain assumptions considered reasonable, and theCompany makes no representations as to their achievability. Actual results may differ materially from the forecast
depending on a range of factors. Please refer to Outlook for the Fiscal Year Ending March 31, 2020 on page 3 to see theassumptions for the results forecast and a note on the use of the results forecast.

4

Condensed quarterly consolidated financial statements(1) Condensed quarterly consolidated statement of financial position(Million yen)
Date of transition to
IFRS(April 1, 2018)

As of March 31, 2019

As of June 30, 2019

Cash and cash equivalents

60,53135,54731,801

Trade and other receivables

89,354100,497

102,867

Other financial assets

2,809

1,709

2,788

AssetsCurrent assets

Inventories

8,078

9,348

10,360

Other current assets

2,619

4,022

2,643

Total current assets

163,393

151,125

150,462

81,336103,275

109,312

Non-current assets
Property, plant and equipment
Right-of-use assets

11,331

12,226

18,731

Goodwill

19,96637,95444,951Intangible assets

10,197

17,515

16,992

Investments accounted for using equity method

1,098

956

7,425

Other financial assets

40,10328,592

29,310

Deferred tax assets

4,581

6,803

6,923

Other non-current assets

277

216

259

Total non-current assets

168,893

207,540

233,906

332,287358,666

384,369

Total assets

5

(Million yen)
Date of transition to
IFRS(April 1, 2018)

As of March 31, 2019

As of June 30, 201940,13949,57652,047

Liabilities and equity
Current liabilities
Trade and other payables
Borrowings

2,963

385

20,377

Lease liabilities

2,958

3,818

3,970

Other financial liabilities
Income taxes payable
Provisions

12

1

1

4,737

5,887

3,284

572

1,026

1,205

Other current liabilities

10,72912,427

11,359Total current liabilities

62,11373,122

92,246

Non-current liabilities
Borrowings

2,331

1,717

1,460

Lease liabilities

9,397

9,628

15,931Other financial liabilities

1,122

1,771

2,005

Retirement benefit liability

16,374

16,58016,848Provisions

331

491

491

Deferred tax liabilities

547

854

896

Other non-current liabilities

761

15,385

14,770Total non-current liabilities

30,86846,42852,404

92,981

119,551

144,651

Total liabilities
EquityShare capital

13,45013,45013,450Capital surplus

10,95910,265

10,290Treasury shares(10,943)(10,932)(10,933)

Other components of equity

16,785

4,838

1,070

Retained earnings

207,005

219,590224,029

Total equity attributable to owners of parent

237,257

237,212

237,908

2,048

1,902

1,809

239,305

239,114

239,717332,287358,666

384,369

Non-controlling interests
Total equity
Total liabilities and equity6(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)Three months ended
June 30, 2018

Three months ended
June 30, 2019

Net sales

62,27664,305

Cost of sales

43,664

42,126Gross profit

18,612

22,17914,09016,553

Other income

334

4,855

Other expenses

3,237

298

Operating profit

1,619

10,182Finance income

343

258

Finance costs

87

97

Share of profit of investments accounted for using equity
method20

31

Profit before tax

1,895

10,375

Income tax expense

416

3,118

Profit for the period

1,479

7,256

1,463

7,266

Selling, general and administrative expenses

Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period

16

(9)

1,479

7,256

13.04

64.71

‒

‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)Three months ended
June 30, 2018
Profit for the period

Three months ended
June 30, 2019

1,479

7,256

(509)

(359)

(7)

(20)

(517)

(379)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in the fair value of financial assets measured
through other comprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations(4,158)(3,358)Cash flow hedges

149

104

Share of other comprehensive income of investments
accounted for using equity method

(20)

55

(4,029)(3,199)Other comprehensive income, net of tax

Total of items that may be reclassified to profit or loss

(4,547)(3,579)Comprehensive income for the period(3,067)

3,677(2,971)

3,706

Comprehensive income attributable to
Owners of parent
Non-controlling interests

(95)

(29)

Comprehensive income(3,067)

3,677

8

(4) Condensed quarterly consolidated statement of changes in equity
Three months ended June 30, 2018 (April 1, 2018 - June 30, 2018)(Million yen)
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2018

Share capital

Capital surplus

Treasury shares

Exchangedifferences ontranslation offoreign
operations

Financial assets
measured at fairvalue throughothercomprehensive
incomeCash flow
hedges13,45010,959(10,943)‒

2

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

(4,068)

149

(509)

Total comprehensive income for the period

16,783‒‒‒(4,068)

149

(509)

Purchase of treasury shares

‒

‒

(0)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

‒

‒

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

(120)

‒

(23)

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

‒

Other

‒

(549)

‒

‒

‒

‒

‒

(669)

(0)

(23)

‒

‒

13,450

10,290(10,944)(4,091)

151

16,274

Total transactions with owners
Balance as of June 30, 2018

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2018‒16,785207,005

237,257

2,048

Profit for the period

‒

‒

1,463

1,463

16

1,479

Other comprehensive income(7)(4,435)‒(4,435)(111)(4,547)(3,067)

Total comprehensive income for the period

239,305(7)(4,435)

1,463(2,971)(95)

Purchase of treasury shares

‒

‒

‒

(0)

‒

(0)

Dividends‒‒(2,927)(2,927)(5)(2,932)

Share-based payment transactions

‒

‒

‒

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

(23)

‒

(143)

(411)

(554)

Transfer from other components of equity toretained earnings

7

7

(7)

‒

‒

‒

Other

‒

‒

365

(184)

783

599

Total transactions with owners

7

(16)

(2,569)(3,254)367(2,887)

Balance as of June 30, 2018‒12,334

205,898

231,0292,318

233,3489

Three months ended June 30, 2019 (April 1, 2019 - June 30, 2019)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2019

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income(4,671)

310

9,199

13,45010,265(10,932)

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

(3,285)

104

(359)

Total comprehensive income for the period

‒

‒

‒

(3,285)

104

(359)

Purchase of treasury shares

‒

‒

(0)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

29

‒

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

(4)

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

－

‒

‒

‒

(227)

Other

‒

－

‒

‒

‒

－

‒

24

(0)

‒

‒

(227)

13,450

10,290(10,933)(7,956)

415

8,611

Total transactions with owners
Balance as of June 30, 2019

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2019

‒

4,838

219,590237,212

1,902

Profit for the period

‒

‒

7,266

7,266

(9)

7,256

(18)

(3,559)‒(3,559)(19)(3,579)
3,677

Other comprehensive income
Total comprehensive income for the period

239,114(18)(3,559)

7,266

3,706

(29)

Purchase of treasury shares

‒

‒

‒

(0)

‒

(0)

Dividends‒‒(3,040)(3,040)(9)(3,049)

Share-based payment transactions

‒

‒

‒

29

2

31

Changes in ownership interests in subsidiaries

‒

‒

‒

(4)

(56)

(60)

Transfer from other components of equity toretained earnings

18

(208)

208

‒

‒

‒

‒

‒

5

5

‒

5

Total transactions with owners

Other

18

(208)

(2,826)(3,010)(63)(3,074)

Balance as of June 30, 2019

‒

1,070

224,029

237,908

1,809

239,71710

(5) Condensed quarterly consolidated statement of cash flows(Million yen)Three months ended
June 30, 2018

Three months ended
June 30, 2019

Cash flows from operating activities
Profit before tax

1,895

10,375

Depreciation and amortization
Share of loss (profit) of investments accounted forusing equity method

4,534

4,004

(20)

(31)

(0)

(4,762)

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables(981)(1,005)

860

1,664

Increase (decrease) in trade and other payables

16,817(1,975)

Other

5,538

1,047

Loss (gain) on sale of fixed assets

Subtotal

28,6439,316Interest received

38

1

Dividends received

276

197

Interest paid

(41)

(6)

(4,806)(5,677)

24,111

3,831

Payments into time deposits

(244)

(604)

Proceeds from withdrawal of time deposits

685

295

Purchase of property, plant and equipment(6,504)(6,904)

Proceeds from sale of property, plant andequipment

6

496

(329)

(325)

(2,334)(8,326)

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of intangible assets

Payments for acquisition of business (after
deduction of cash and cash equivalents included inacquired assets)
Purchase of shares and investments in capital ofsubsidiaries and affiliates
Other

‒

(5,799)(574)(1,490)Net cash provided by (used in) investing activities(9,295)(22,658)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(506)

19,999

(218)

(216)

(2,848)(2,910)Purchase of shares of subsidiaries not resulting inchange in scope of consolidation

(550)

(60)

Other

(762)

(1,110)(4,884)

15,702

Effect of exchange rate changes on cash and cash
equivalents

(829)

(620)

Net increase (decrease) in cash and cash equivalents

9,102(3,745)

Cash and cash equivalents at beginning of period

60,53135,547

Cash and cash equivalents at end of period

69,63431,801

Repayments of long-term borrowings

Dividends paid

Net cash provided by (used in) financing activities

11Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Three months ended June 30, 2019 (April 1, 2019 – June 30, 2019)
Not applicable(Segment Information)
Information of reportable segments
Three months ended June 30, 2018 (April 1, 2018 – June 30, 2018)(Million yen)
Reportable Segments

Sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income (loss)

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

25,428177

36,848235

62,276
412

―
ሺ412)

62,276―25,60537,08362,689ሺ412)

62,276

ሺ545)

2,210

1,664

ሺ45)

1,619

Total

Finance income

343

Finance costs

87

Share of profit of investments accounted for using equity method

20

Profit before tax

1,895(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating income level.

Three months ended June 30, 2019 (April 1, 2019 – June 30, 2019)(Million yen)
Reportable Segments

Sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

28,023
174

36,281356

64,305
531

―
ሺ531)

64,305―28,19836,63864,836

ሺ531)

64,305

2,387

7,889

10,277

ሺ94)

10,182

Total

Finance income

258

Finance costs

97

Share of profit of investments accounted for using equity method
Profit before tax

31
10,375(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating income level.

12(First-time Adoption)
The Group is disclosing quarterly consolidated financial statements complying with IFRS from the first quarter under review. The mostrecent consolidated financial statements prepared under Japanese GAAP are those for the fiscal year ended March 31, 2019. The dateof transition to IFRS is April 1, 2018.
(1) Exemptions set out in IFRS 1
In principle, an entity that applies IFRS for the first time (hereinafter “First-time Adopter”) is requested to retrospectively apply IFRS.
However, IFRS 1 - First-time Adoption of International Financial Reporting Standards (hereinafter “IFRS 1”) sets out standards towhich exemptions have to be applied mandatorily and standards to which exemptions are applied optionally. The effects of the applied
exemptions are adjusted by retained earnings or other components of equity on the date of transition to IFRS. When the Group moved
from Japanese GAAP to IFRS, it applied the following exemptions:
I. Business Combinations
The First-time Adopter is allowed to choose not to retrospectively apply IFRS 3 Business Combinations (hereinafter “IFRS 3”) tobusiness combinations before the date of transition to IFRS. The Group has applied the exemption and has chosen not toretrospectively apply IFRS 3 to business combinations before the date of transition. As a result, goodwill that resulted from businesscombinations before the date of transition is based on the book value on the date of transition under Japanese GAAP.
The Group conducted an impairment test related to goodwill on the date of transition regardless of the existence of signs of
impairment.
II. Deemed Cost
IFRS 1 allows entities to use the fair value of property, plant and equipment, investment property and intangible assets on the date oftransition to IFRS as a deemed cost on the date of transition. The Group uses the fair value of certain property, plant and equipmenton the date of transition as deemed cost on the date of transition under IFRS.
III. Cumulative Translation Differences for Foreign Operations
IFRS 1 allows entities to choose to deem cumulative translation differences for foreign operations as of the date of transition to IFRS
to be zero. The Group has chosen to deem cumulative translation differences for foreign operations to be zero as of the date oftransition.
IV. Share-based Payment Transactions
The Group has chosen not to apply IFRS 2 to stock compensation that was vested before the date of transition.
V. Leases
IFRS 1 allows the First-time Adopter to determine whether contracts existing as of the date of transition to IFRS include leases,
based on facts and circumstances existing on the date of transition. It also allows the First-time Adopter to measure lease liabilities atthe present value of the remaining lease payments, which is calculated by discounting the remaining lease payments using thelessee’s incremental borrowing rate on the date of transition, and to make the amount of right-of-use assets the same as the amount oflease liabilities. The First-time Adopter is allowed to recognize as expenses leases whose term expires within 12 months of the dateof transition and leases whose underlying assets are of low value.
The Group applies the exemption to recognize and measure leases.
(2) Mandatory exceptions in retrospective application set out in IFRS 1IFRS 1 prohibits retrospective application of IFRS in relation to estimates, derecognition of financial assets and financial liabilities,
hedge accounting, non-controlling interests, classification and measurement of financial assets, etc. The Group has been applying these
items from the date of transition onwards.
(3) Reconciliation from Japanese GAAP to IFRSThe tables below are reconciliation sheets required in IFRS 1.
The reclassification column is for the figures of items that do not affect retained earnings or comprehensive income. The difference due
to changes in recognition, measurement and accounting period column is for the figures of items that affect retained earnings andcomprehensive income.

13

I. Reconciliation of Assets on Date of Transition to IFRS (April 1, 2018)(Million yen)Account under Japanese GAAP

Japanese
GAAP

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

IFRS

Notes

Assets

Account under IFRS

AssetsCurrent assets

Current assets

Cash and deposits

61,086(1,652)

1,097

60,531(1)

Cash and cash equivalents

Notes and accounts
receivable – trade

86,865

(464)

2,954

89,354(1), (2)Trade and other receivables

–

2,769

40

2,809

(1)

Finished products

3,968(3,968)––Work in process

3,621(3,621)––

Raw materials and supplies

2,800(2,800)–––

10,390(2,311)

8,078(1), (2)

Other

2,531

(2,713)

2,801

2,619

(1)

Allowance for doubtful
accounts

(464)

464

–

–

160,409(1,595)

4,579

163,393

Total current assets

Intangible fixed assets

Inventories

Other current assets

Total current assets

Non-current assets
Property, plant andequipment

Other financial assets

Non-current assets
86,028(86,028)

–

–

–
–

81,603(266)

81,336(1), (3)Property, plant and equipment

4,455

6,875

11,331(1), (4)Right-of-use assets

31,003(31,003)–––

20,362(396)

19,966(1), (5)Goodwill–

10,610(412)

10,197(1)

Intangible assets

35,683(35,683)

–

–

–

1,147

(48)

1,098

(1)

Investments accounted forusing equity method–

38,6301,473

40,103(1), (6)Other financial assets(1), (7)Deferred tax assets

Investments and other assets
Investment securities

Deferred tax assets

4,860

476

(755)

4,581

Other

5,238

(5,238)

–

–

–

967

(690)

277

Allowance for doubtful
accounts

(176)

176

–

–

Total non-current assets

162,637

476

5,780

168,893

323,046(1,119)1,0360332,287

Total assets(1)

Other non-current assets

Total non-current assets
Total assets

14

(Million yen)Account under Japanese GAAP

Japanese
GAAP

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

IFRS

Notes

Liabilities

Account under IFRS

Liabilities and equity

Current liabilities

Current liabilities

Notes and accounts payable– trade28,875(28,875)––

Accounts payable – other

10,995(10,995)–––

38,575

1,564

40,139(1)

Trade and other payables

–

1,337

1,625

2,963

(1)

Borrowings
Other financial liabilities

–

–

12

12

(1)

–

635

2,322

2,958

(1), (4)(1)

Income taxes payable

Provisions

Income taxes payable

4,806

–

(68)

4,737

Provision for bonuses

2,420(2,420)

–

–

695

(695)

–

–

–

549

23

572

(1)

Other

8,355

1,888

486

10,729(1), (8),(9)

Total current liabilities

56,149–5,964

62,113

Other provision

Other current liabilities
Total current liabilities

Non-current liabilities
Lease obligations

Lease liabilities

Non-current liabilities
4,038(4,038)

–

–

–

2,388

(56)

2,331

(1)

–

4,038

5,359

9,397

(1), (4)

–

1,644

(522)

1,122

(1)

16,610–(235)

16,374(1), (10)

191

(190)

330

331

(1)

1,119

(492)

(79)

547

(1), (7)

Other

4,084

(4,469)

1,146

761

(1)

Total noncurrent liabilities

26,044(1,119)5,943

30,868

Total non-current liabilities

82,193(1,119)11,907

92,981

Total liabilities

Net defined benefit liability
Provision
Deferred tax liabilities
related to revaluation

Total liabilities
Net assets

Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities

EquityShareholders’ equity
Common stock

13,450––13,450Share capital

Capital surplus

10,959––10,959

Capital surplus

Retained earnings

209,149–(2,144)207,005(1), (12),(13)

Retained earnings

Accumulated othercomprehensive income

16,187–597

16,785(1),(12),(13)

Other components of equity

Treasury stock(10,943)––(10,943)

Non-controlling interests

238,803–(1,546)

Treasury shares
Total equity attributable toowners of parent

237,257

2,049

–

(1)

2,048

Total net assets

240,853–(1,547)239,305(1), (13)Total equity

Non-controlling interests

Total liabilities and net assets

323,046(1,119)10,360332,287

Total liabilities and equity

15II. Reconciliation of Assets at End of First Quarter of the Previous Fiscal Year (June 30, 2018)(Million yen)Account under Japanese GAAP

Japanese
GAAP

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

IFRS

Notes

AssetsAssetsCurrent assets

Current assets

Cash and deposits

71,553(1,919)–69,634

Notes and accounts
receivable – trade

86,491

(81)

1,159

87,569

–

2,694

7

2,702

Finished products

4,147(4,147)––Work in process

1,681(1,681)––

Raw materials and supplies

2,952(2,952)

–

–

–

8,781

(57)

8,724

Other

3,083

(1,159)33

1,957

Allowance for doubtful
accounts

(466)

466

–

–

169,443–

1,143

170,588

Total current assets

Cash and cash equivalents(2)

Intangible fixed assets

Trade and other receivables
Other financial assets(2)

Inventories
Other current assets

Total current assets

Non-current assets
Property, plant andequipment

Account under IFRS

Non-current assets
89,077(89,077)–––

82,851

76

82,928(3)

Property, plant and equipment(4)

Right-of-use assets

–

6,225

4,849

11,07531,311(31,311)–––

21,26052

21,312–

10,051

(111)

9,940

34,692(34,692)

–

–

–

1,124

(11)

1,113

(5)

Goodwill
Intangible assets

Investments and other assets
Investment securities

Investments accounted forusing equity method–

38,651

1,012

39,663(6)

Other financial assets

Deferred tax assets

5,838(1,119)

776

5,495

(7)

Deferred tax assets

Other

6,010

(6,010)

–

–

–

750

(273)

477

Allowance for doubtful
accounts

(175)

175

–

–

Total non-current assets

166,753(1,119)6,367

172,006

336,197(1,119)7,510

342,595

Total assets

Other non-current assets

Total non-current assets
Total assets

16

(Million yen)Account under Japanese GAAP

Japanese
GAAP

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

IFRS

Notes

Liabilities

Account under IFRS

Liabilities and equity

Current liabilities

Current liabilities

Notes and accounts payable– trade25,631(25,631)––

Accounts payable – other

12,315(12,315)–––42,753(571)

42,182

Trade and other payables

–

2,330

–

2,330

Borrowings

–

981

2,090

3,072

1,327

–

–

1,327

Income taxes payable
Provision for bonuses

1,416(1,416)––

Other provision

3,875(3,875)

–

–

–

3,555

–

3,555

Other

14,294(6,382)

2,444

10,356

Total current liabilities

58,861–

3,963

62,824(4)

Provisions(8), (9)Net defined benefit liability
Provision

Other current liabilities
Total current liabilities

Non-current liabilities
Lease obligations

Lease liabilities
Income taxes payableNon-current liabilities
5,416(5,416)

–

–

–

2,047

–

2,047

–

5,416

3,783

9,199

(4)

Lease liabilities

–

1,651

37

1,688

(11)

Other financial liabilities

16,801–(233)

16,568(10)Retirement benefit liability

Borrowings

175

–

207

382

Deferred tax liabilities
related to revaluation

1,119

132

(702)

549

Other

19,003(4,949)1,927

15,986

Total noncurrent liabilities

42,516(1,119)5,019

46,422

Total non-current liabilities

101,377(1,119)8,982

109,246

Total liabilities

Total liabilities

Provisions(7)

Deferred tax liabilities
Other non-current liabilities

Net assets

EquityShareholders’ equity
Common stock

13,450––13,450Capital surplus

10,839–(549)

10,290(11)

Capital surplus

Retained earnings

207,201–(1,303)205,898

(12),
(13)

Retained earnings

Accumulated othercomprehensive income

11,999–335

12,334(12)

Other components of equity

Treasury stock(10,944)––(10,944)

Non-controlling interests

232,546–(1,517)231,029

2,273

–

45

2,318

Share capital

Treasury shares
Total equity attributable toowners of parent(13)

Non-controlling interests

Total net assets

234,820–(1,472)

233,348

Total equity

Total liabilities and net assets

336,197(1,119)7,510

342,595

Total liabilities and equity

17III. Reconciliation of Assets at End of Previous Fiscal Year (March 31, 2019)(Million yen)Account under Japanese GAAP

Japanese
GAAP

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

IFRS

Notes

AssetsAssetsCurrent assets

Current assets

Cash and deposits

35,351

196–

35,547

Notes and accounts
receivable – trade99,247113

1,137

100,497

–

1,599

109

1,709

Finished products

5,106(5,106)––Work in process

1,235(1,235)––

Raw materials and supplies

3,133(3,133)

–

–

–

9,474

(127)

9,348

Other

6,136

(2,570)

456

4,022

Allowance for doubtful
accounts

(659)

659

–

–

149,550–

1,575

151,125

Total current assets

Cash and cash equivalents(2)

Intangible fixed assets

Trade and other receivables
Other financial assets(2)

Inventories
Other current assets

Total current assets

Non-current assets
Property, plant andequipment

Account under IFRS

Non-current assets
109,669(109,669)–––

103,278(3)

103,275(3)

Property, plant and equipment

–

6,391

5,835

12,226(4)

Right-of-use assets

53,958(53,958)–––

36,301

1,652

37,954(5)

Goodwill–

17,656(140)

17,51522,203(22,203)

–

–

–

1,100

(144)

956

Intangible assets

Investments and other assets
Investment securities

Investments accounted forusing equity method–

26,8501,742

28,592(6)

Other financial assets

Deferred tax assets

7,929(1,119)

(6)

6,803

(7)

Deferred tax assets

Other

6,724

(6,724)

–

–

–

829

(613)

216

Allowance for doubtful
accounts

(149)

149

–

–

Total non-current assets

200,335(1,119)8,324

207,540

349,885(1,119)9,899

358,666

Total assets

Other non-current assets

Total non-current assets
Total assets

18

(Million yen)Account under Japanese GAAP

Japanese
GAAP

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

IFRS

Notes

Liabilities

Account under IFRS

Liabilities and equity

Current liabilities

Current liabilities

Notes and accounts payable– trade26,362(26,362)––

Accounts payable – other

19,737(19,737)–––

50,134(558)

49,576

–

385

–

385

–

–

1

1

–

1,176

2,641

3,818

Trade and other payables
Borrowings
Other financial liabilities(4)

Lease liabilities

Income taxes payable

5,890

–

(3)

5,887

Provision for bonuses

2,520(2,520)––

Income taxes payable

Other provision

1,158(1,158)

–

–

–

1,026

–

1,026

Other

12,403(2,942)

2,966

12,427

Total current liabilities

68,072–

5,050

73,122

5,250(5,250)

–

–

–

1,717

–

1,717

–

5,250

4,377

9,628

(4)

Lease liabilities

–

1,663

108

1,771

(11)

Other financial liabilities(10)

Provisions
Other current liabilities(8), (9)Non-current liabilities
Lease obligations

Net defined benefit liability

Total current liabilities
Non-current liabilities
Borrowings

16,648–(68)

16,580

359

(358)

490

491

Deferred tax liabilities
related to revaluation

1,119

(361)

95

854

Other

18,961(3,781)

205

15,385

Total noncurrent liabilities

42,339(1,119)5,208

46,428

Total non-current liabilities

110,412(1,119)10,258

119,551

Total liabilities

Provision

Total liabilities

Retirement benefit liability
Provisions(7)

Deferred tax liabilities
Other non-current liabilities

Net assets

EquityShareholders’ equity
Common stock

13,450––13,450Capital surplus

10,665–(400)

10,265(11)

Capital surplus
Retained earnings
Other components of equity

Retained earnings
Accumulated othercomprehensive income
Treasury stock

Non-controlling interests

Share capital

220,234–(643)

219,590

(12),
(13)

4,187

–

651

4,838

(12)

(10,932)––(10,932)

237,604–(392)

237,212

Treasury shares
Total equity attributable toowners of parent

1,868

–

33

1,902

Total net assets

239,473–(358)

239,114(13)

Total equity

Non-controlling interests

Total liabilities and net assets

349,885(1,119)9,899

358,666

Total liabilities and equity

19IV. Reconciliation of Income in First Quarter of Previous Fiscal Year (from April 1, 2018 to June 30, 2018)(Million yen)Account under Japanese GAAP

Japanese
GAAPNet sales

64,349Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period–(2,072)

IFRS

Notes

62,276(2)

Account under IFRSNet sales

Cost of sales

45,669–(2,005)43,664(2), (4),Cost of sales(8)

Gross profit

18,679–(67)

18,612Gross profit

Selling, general andadministrative expenses

14,432–(341)

14,090(4), (5), Selling, general and(8)administrative expenses

–

316

18

334

Other income

Operating income

–

3,225

11

3,237

Other expenses

4,247(2,909)

281

1,619

Operating profit–

Non-operating income

707

(707)

–

Non-operating expenses

691

(440)

(251)

–

Extraordinary income

–

–

–

–

Extraordinary losses

2,869(2,869)

–

–

–

381

(37)

343

–

83

4

87

–

9

10

20

Income before income taxes

1,394

–

501

1,895

Income taxes

462

–

(46)

416

Net income

931

–

548

1,479

Profit attributable tonon-controlling interests

15

–

0

16

Profit attributable to owners ofparent

915

–

547

1,463

Finance income(4)

Finance costs
Share of profit of investments
accounted for using equity
methodProfit before tax(7)

Income tax expense
Profit for the period
Non-controlling interests
Owners of parent

Other comprehensive income

Other comprehensive income

Unrealized gains (losses) on
available-for-sale securities

(505)

505

–

–

Deferred gains (losses) onhedges

152

(152)

–

–

Foreign currency translation
adjustments(1,480)

1,480

–

–

Remeasurements of defined
benefit plans, net of tax

0

(0)

–

–

Share of othercomprehensive income ofassociates accounted forusing equity method

(24)

24

–

–
Items that will not bereclassified to profit or loss

–

(505)

(3)

(509)

(6)

Net change in the fairvalue of financial assets
measured through othercomprehensive income

–

0

(8)

(7)

(10)

Remeasurements ofdefined benefit plans
Items that may bereclassified to profit or loss–

(1,480)(2,677)(4,158)Exchange differences ontranslation of foreign
operations

20

(Million yen)Account under Japanese GAAP

Japanese
GAAP–

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period

152

(2)

IFRS

Notes

Account under IFRS

149

Cash flow hedges

–

(24)

3

(20)

Share of othercomprehensive income ofinvestments accounted forusing equity method

Total other comprehensive
income(1,858)–(2,688)(4,547)

Other comprehensive income,net of tax

Comprehensive income

(927)

–

(2,140)(3,067)

Comprehensive income for theperiod21

V. Reconciliation of Income in Previous Fiscal Year (from April 1, 2018 to March 31, 2019)(Million yen)Account under Japanese GAAP

Japanese
GAAPNet sales

259,409

Difference due
to changes inrecognition,
Reclassification
measurement
and accounting
period–(2,078)

IFRS

Notes

257,331(2)

Account under IFRSNet sales

Cost of sales

176,663–(1,993)

174,670(2), (4),Cost of sales(8)

Gross profit

82,746–(84)

82,661Gross profit

Selling, general andadministrative expenses

58,420–(1,425)56,994(4), (5), Selling, general and(8)administrative expenses

–

978

(67)

910

Other income

–

6,908

(77)

6,831

Other expenses

Operating income

24,326(5,929)1,350

19,746

Operating profit

Non-operating income

2,006(2,006)––

Non-operating expenses

2,413(2,162)(251)–

Extraordinary income

8,676

–

(8,676)–Extraordinary losses

5,063(5,063)

–

–

–

890

5

896

–

317

205

522

–

136

10

146

Income before income taxes

27,532–(7,264)

20,267

Income taxes

10,207–(1,927)

8,279(6), (7) Income tax expense

Net income

17,325–(5,337)

11,987

Profit for the period

1

–

(64)

(63)

17,323–(5,273)

12,050

Profit attributable tonon-controlling interests
Profit attributable to owners ofparent(6)
Finance income(4)

Finance costs
Share of profit of investments
accounted for using equity
methodProfit before tax

Non-controlling interests
Owners of parent

Other comprehensive income

Other comprehensive income

Unrealized gains (losses) on
available-for-sale securities(7,904)

7,904

–

–

Deferred gains (losses) onhedges

315

(315)

–

–

Foreign currency translation
adjustments(2,208)

2,208

–

–

Remeasurements of defined
benefit plans, net of tax

(3)

3

–

–

Share of othercomprehensive income ofassociates accounted forusing equity method

(46)

46

–

–
Items that will not bereclassified to profit or loss–

(7,904)6,860(1,044)(6)

Net change in the fairvalue of financial assets
measured through othercomprehensive income

–

(3)

(69)

(72)

(10)

Remeasurements ofdefined benefit plans
Items that may bereclassified to profit or loss–

(2,208)(2,384)(4,593)

Exchange differences ontranslation of foreign
operations

22

–

315

(6)

308

Cash flow hedges

–

(46)

(106)

(153)

Share of othercomprehensive income ofinvestments accounted forusing equity method

Total other comprehensive
income(9,848)–4,293(5,554)

Other comprehensive income,net of tax

Comprehensive income

7,476

–

(1,044)

6,432

Comprehensive income for theperiod23

VI. Notes on Reconciliation(i) Reclassification
Of the items that were included in Non-operating income, Non-operating expenses, Extraordinary income, and Extraordinary
losses under Japanese GAAP, finance-related items are reclassified as Finance income or Finance costs under IFRS, and the otheritems are reclassified as Other income, Other expenses or Share of profit of investments accounted for using equity method underIFRS.
(ii) Differences due to changes in recognition, measurement and accounting period(1) Reconciliation related to the unification of reporting periods
Under Japanese GAAP, if the reporting date of a subsidiary and that of the Company are different, consolidated financial
statements were prepared based on the financial statements of the subsidiary on the reporting date of the subsidiary. Under IFRS,
the reporting date of a subsidiary is made the same as that of the Company or a provisional financial closing is conducted on thesame reporting date as that of the Company unless that is impossible practically. This has resulted in a difference in each account.
(2) Reconciliation of revenue recognition
Under Japanese GAAP, if reliable estimates are available for the work completed in construction work, the percentage ofcompletion method is used, and the completed-contract method is used for other construction work. Under IFRS, under a contract
where control over goods or services is transferred to the customer over a certain period of time, revenue is recognized over theperiod regardless of the legal form of the contract.
(3) Reconciliation of property, plant and equipment
For certain property, plant and equipment, the Group applies an optional exemption where the fair value on the date of transition to
IFRS is used as a deemed cost.
(4) Reconciliation of leases
Under Japanese GAAP, an operating lease was expensed. Under IFRS, due to the early adoption of IFRS 16, right-of-use assets
and lease liabilities are posted.
(5) Reconciliation of goodwill
Under Japanese GAAP, goodwill was amortized over a certain period of time. Under IFRS, goodwill is not amortized. Goodwill
amortized under Japanese GAAP on or after the date of transition to IFRS is reversed.
(6) Reconciliation of other financial assets (non-current)
Under Japanese GAAP, unlisted shares were posted based on acquisition cost and impairment losses were recorded in accordancewith deterioration in the financial position of the issuing company. Under IFRS, unlisted shares are measured at fair value throughother comprehensive income. Loss (gain) on sale and impairment loss of financial instruments recognizable as capital arerecognized as profit or loss under Japanese GAAP. Under IFRS, changes in fair value are recognized as other comprehensive
income, and loss (gain) on sale and impairment loss are not recognized as profit or loss.
(7) Reconciliation of deferred tax assets and deferred tax liabilities
Under Japanese GAAP, the deferred method was employed for tax effects associated with the elimination of unrealizedintercompany profits. Under IFRS, the asset and liability method is employed. The recoverability of deferred tax assets is
examined under IFRS. Temporary differences have occurred due to adjustments associated to the transition from Japanese GAAP
to IFRS, and deferred tax assets and deferred tax liabilities have been adjusted accordingly.
(8) Reconciliation of unused paid leave
Under Japanese GAAP, no accounting process were required for unused paid leave. Under IFRS, the Group has recorded liabilities
related to unused paid leave.
(9) Reconciliation of other current liabilities
Under Japanese GAAP, expenses were recognized throughout a fiscal year when fixed assets tax etc. was paid. Under IFRS, theamount expected to be paid is recognized as liabilities when debts to the government are determined.
(10) Reconciliation of employees’ retirement benefits
Under Japanese GAAP, the Group recorded actuarial differences as expenses in a year or two, on a pro-rata basis, from the fiscal
year when the differences occurred. Under IFRS, actuarial differences are recognized in other comprehensive income when theyoccur and are transferred to retained earnings immediately. Prior service cost is recognized as profit or loss at the time ofoccurrence.
(11) Liabilities related to put option contracts for non-controlling interests
If the Group is required to buy the non-controlling interests of certain subsidiaries under certain conditions at the request of theshareholders of the non-controlling interests, financial liabilities are recognized and capital surplus is reduced under IFRS.

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(12) Reconciliation of other components of equity
The Group has chosen an exemption set out in IFRS 1 and transferred all cumulative translation differences related to foreignsubsidiaries to retained earnings on the date of transition to IFRS, April 1, 2018.
(13) Reconciliation of retained earnings(Million yen)
Date of transition to
IFRS(April 1, 2018)

As of June 30, 2018 As of March 31, 2019

Reconciliation due to the unification ofreporting periods(Refer to (1))

(123)

―

―

Reconciliation of property, plant andequipment(Refer to (3))

(380)

(380)

(200)

Reconciliation of goodwill(Refer to (5))

―

389

1,643

Reconciliation of other financial assets(Refer to (6))

(207)

43

(52)

Reconciliation of unused paid leave(Refer to (8))(1,875)(1,875)(1,908)Reconciliation of other current liabilities (Refer to (9))

(161)

(158)

(154)

Reconciliation of employees’ retirement(Refer to (10))
benefits

225

225

104

Reconciliation of other components ofequity

(193)

(197)

(193)

Other

(Refer to (12))

(6)

70

(462)

(2,720)(1,879)(1,222)

Tax effect related to the adjustments
above and increase (decrease) in
non-controlling interests

576

576

579

Reconciliation of retained earnings(2,144)(1,303)(643)

Sum of reconciliations

VII. Reconciliation of Cash Flows
There is no significant difference between the consolidated statement of cash flows under the Japanese GAAP and the consolidated
statement of cash flows under IFRS.

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