The way of mutual progress

ANNUAL REVIEW 2021
For the Year Ended March 31, 2021

PRESIDENT’S MESSAGE

Yushiro Chemical Industry Co., Ltd. has contributed to theprogress and material development of Japan by supplying quality
oil-fat-wax (yu-shi-ro) products. We have succeeded in developing
and offering to virtually all industrial markets such auxiliary
products as metalworking oils and fluids, polishing agents forbuilding maintenance. To respond to the needs of the industry,
every technology we have acquired will be fed back to our R&D
process for the creation of newer technologies and products basedon our corporate ideal of “the way of mutual progress.”

Eiichi Ogo
PRESIDENT

Business summary
During this consolidated financial year, the global economy stagnated during
the period from April to June due to the impact from lockdowns resulting
from the spread of the novel coronavirus (COVID-19), other than in China
where the virus was swiftly contained, and measures implemented by eachcountry to prevent the spread of COVID-19. Although the economy itself
subsequently made a moderate recovery, partly as the result of prevention
measures, there are still no signs of the virus being contained, and the future
outlook remains uncertain. Although the Japanese economy gradually
recovered after the state of emergency was lifted in May 2020, led by the
manufacturing industry, the spread of COVID-19, which still shows no signof coming to an end, as evidenced by the declaration of a third state of
emergency in April 2021, is having an impact on economic recovery. Under
such conditions, Japanese automobile manufacturers and automotive parts
manufacturers, which are the Company’s main customers, are being driven
by the rapid recovery in China, despite concerns over the shortage ofsemiconductors, and are recovering although there are minor differences
depending on the manufacturer and region.
Under these circumstances, net sales decreased 15.1% from the previous
fiscal year to ¥31,661 million. Due to the drop in net sales, operating income
fell 50.5% from the previous fiscal year to ¥1,095 million, ordinary income
decreased 44.2% to ¥1,517 million, and net income attributable to ownersof parent fell 48.9% to ¥978 million.
With regard to the economic situation in fiscal 2021, there is still no sign ofthe spread of COVID-19 being contained and the future outlook remains
uncertain. In addition, the global volume of automobile production is
expected to recover, despite the tightening supply and demand of
semiconductors.
Under these circumstances, by further strengthening our collaboration with
the U.S. company QualiChem, Inc. and by investing management resourcesin regions where we anticipate demand and in the development of new
business fields, we will aim to strengthen our management base and improve
our corporate value.
With regard to our consolidated business results for fiscal 2021, we anticipate
net sales of ¥36,000 million (up 13.7% year-on-year), operating income of¥1,800 million (up 64.3% year-on-year), ordinary income of ¥2,100 million(up 38.4% year-on-year), and net income attributable to owners of parent of¥1,300 million (up 32.9% year-on-year).
1

Business segment(

Previous Fiscal Year
April 1, 2019 throughMarch 31, 2020

) (Current Fiscal Year
April 1, 2020 throughMarch 31, 2021

Increase/) Decrease

Million yen%

Million yen

%

%

Japan

17,07845.8

14,40945.5

84.4

North and South America

11,280

30.3

9,381

29.6

83.2

China

4,340

11.6

4,466

14.1

102.9

Southeast Asia / India

4,575

12.3

3,403

10.8

74.4

Total

37,274100.0

31,661

100.0

84.9

Medium-term PlanThe Yushiro Group has formulated a Medium-term Plan covering the three
years from the fiscal year ending March 31, 2022 to the fiscal year ending
March 31, 2024 with the objective of becoming a company that continues toexist beyond its 100th year of founding.
1. Business environment and the Group’s response
Although there is still no sign of the spread of COVID-19 being
contained and the future outlook remains uncertain, the global
economy is little by little heading toward recovery. In addition, theglobal volume of automobile production is expected to recover, despite
the tightening supply and demand of semiconductors.
Under these circumstances, the Company has formulated the 19th
Medium-term Plan, “RECOVER PLUS,” covering the three years fromfiscal 2021 to fiscal 2023. Under the plan, utilizing the technologicalcapabilities we have accumulated as a company with the top domestic
market share in metalworking oils and fluids, our in-depth customerfirst attitude, and our global expansion, we will recover to the level ofour fiscal 2019 business results by fiscal 2022, and achieve the effects ofthe strategy we formulated by realizing record-high net sales andincome in fiscal 2023.

2. Basic policy of the 19th Medium-term Plan, “RECOVER PLUS”(a) Strengthen our management base•	Break away from our dependence on the automobile industry in thefield of metalworking oils and fluids•	Restructure our business model(b) Improve profitability• Expand our entry into the aircraft parts and medical parts markets•	Streamline and improve the efficiency of operations through the useof ICT technology(c) Promote ESG strategy• Formulate environmental goals• Further promote industry-academia collaboration• Management with an awareness of capital efficiency
3. Management targets for the final fiscal year (fiscal 2023)(consolidated)
Fiscal 2019 results Fiscal 2020 results

4. Financial strategy
The financial policy is to optimize the Group’s funds, improve theliquidity of cash on hand, and maintain financial stability in order toimprove the medium- to long-term corporate value, invest in thefacilities, R&D and new businesses required for sustainable growth, andreturn profits to shareholders, and the goal is to achieve consolidated
ROE of 8%.
5. Dividend policy
In addition to the idea that prioritizing investments that lead to
improved corporate value and sustainable growth ultimately contributes
to the common interests of stakeholders, the policy is to make thereturn of profits to shareholders an important management measure,and to pay stable and continuous dividends with a payout ratio of 30%
or more.

Fiscal 2023 plan

Net sales¥37.2 billion¥31.6 billion¥40.0 billion

Operating income¥2.2 billion¥1.0 billion¥3.1 billion

Ordinary income¥2.7 billion¥1.5 billion¥3.5 billion

Net income¥1.9 billion¥0.9 billion¥2.3 billion

Yen in millions
Fiscal Years ended March 31,

Net sales
Operating income

U.S. dollars in thousands

2021¥31,661

¥

1,095

2020

2021

37,274$285,982

2,213

9,897

Net income

978

1,913

8,837

Total assets

48,36947,320436,906

Net assets

32,17031,867

290,581

Per Share Amounts
Net income per share
Cash dividends per share
Net assets per share

Yen

U.S. dollars

140.91$0.65

38.00

48.00

0.34

2,217.95

2,194.75

20.03¥72.03¥

Notes : 1. U.S. dollar amounts, converted at the rate of ¥110.71 to US$1.00, are for convenience only.
2. Net income per share is based on the average number of shares outstanding at the end of each fiscal year.
3. Japanese yen amounts of less than one million have been excluded.

2

REVIEW OF OPERATIONSThe Yushiro Group consists of Yushiro Chemical Industry Co.,
Ltd., three domestic subsidiaries, fourteen overseas subsidiaries
and three affiliates, and its major businesses are the production
and sales of metalworking oils and fluids, chemicals for building
maintenance. We are going to expand our business in growing
areas globally as well as a domestic market continuously.

Review of Operations by Region
Japan
The operating rate by major customers has recovered considerably but the decrease in sales
in the first quarter due to the spread of COVID-19 has had a significant impact. As aresult, segment net sales fell 15.6% from the previous fiscal year to ¥14,409 million.
Segment income decreased 95.8% from the previous fiscal year to ¥31 million, despite
having posted losses for the first three quarters of the fiscal year.
North and South America
The recovery of the operating rate among main customers resulting from an increase inautomobile production, and the U.S. company QualiChem, Inc.’s high number ofcustomers in industries not easily affected by COVID-19 were not enough to offset the firsthalf slump. As a result, segment net sales decreased 16.8% from the previous fiscal year to¥9,381 million. Segment income fell 32.9% from the previous fiscal year to ¥661 million.
China
Business results slumped sharply in January and February due to the impact from the
spread of COVID-19. However, partly as a result of the rapid recovery since April, segment
net sales remained largely unchanged from the previous fiscal year at ¥4,466 million.
Segment income increased 46.6% from the previous fiscal year to ¥421 million due to cost
reductions.
Southeast Asia/India
Despite some variations among bases due to the degree of impact from the spread of
COVID-19, the segment overall is in a recovery trend, partly as the result of the tax
reduction effect when purchasing automobiles in Malaysia and Indonesia. As a result,segment net sales decreased 25.6% from the previous fiscal year to ¥3,403 million. Segment
income fell 41.6% to ¥346 million.

Subsidiaries and Associated Companies
Domestic Subsidiaries

Shanghai Yushiro Chemical Industry Co., Ltd.
881 Fulian Road, Guncun Industrial Park,
Baoshan District, Shanghai, China
Phone: (86)21-3604-1188 Fax: (86)21-3604-0916
URL: http://www.yushiro.com.cn/
Qidong Yushiro Chemical Industry Co., Ltd.
The North of New Qidong Port,
Qidong City, Jiangsu Province, China
Phone: (86)513-8369-9942 Fax: (86)513-8369-9943
URL: http://www.yushiro.com.cn/
Yushiro Malaysia Sdn. Bhd.
7, Jalan TPP 3, Taman Perindustrian Putra, 47130 Puchong,Selangor Darul Ehsan, Malaysia
Phone: (60) 3-8069-9390 Fax: (60) 3-8051-3946
URL: http://www.yushiro.com.my/
Yushiro (Thailand) Co., Ltd.
700/533 Moo7, Amata Nakorn Industrial Estate, T. Don HuaRoh, A. Muang Chonburi, Chonburi 20000, Thailand
Phone: (66)3845-4873 Fax: (66)3845-4879
Siam Cee-Bee Chemical Co., Ltd.
700/936, Moo 5, Amatanakorn Industrial Estate,
T.Nongkhaka, A.Phanthong, Chonburi 20160 THAILAND
Phone: (66)038-210-772 Fax: (66)038-210-776
Yushiro India Company Private Limited
608. J. M. D. Pacific Square Sector-15, Part-Ⅱ,
Gurgaon 122002, Haryana, India
Phone: (91)124-424-1650 Fax: (91)124-424-1652

Yushiro Unso Co., Ltd.
1157-2 aza-Yubunepara, Yubune, Oyama-cho,Sunto-gun, Shizuoka JAPAN
Phone: (0550)86-1112 Fax: (0550)76-1034

PT. Yushiro Indonesia
JI. Maligi 1, Blok B-2B, Kawasan Industri KIIC,
Karawang 41361-Java Barat, Indonesia
Phone: (62)21-8911-4271 Fax: (62)26-7845-7934
URL: http://www.yushiro.co.id/

Yushiro General Service Company
1157-2 aza-Yubunepara, Yubune, Oyama-cho,Sunto-gun, Shizuoka JAPAN
Phone: (0550)86-1113 Fax: (0550)76-1034

Yushiro Vietnam Co., Ltd.
No.7, Ly Tu Trong Street, Ben Nghe Ward, District1,
HoChiMinh City, Viet Nam
Phone: (84)0-28-22537355

The Japan Cee-Bee Chemical Co., Ltd.
Omori Plaza Bldg.4F, 3-28-3 Minamioi, Shinagawa-ku, Tokyo JAPAN
Phone: (03)5767-6431 Fax: (03)5767-6437
URL: http://www.jcbchem.co.jp/

Overseas Subsidiaries
Yushiro Manufacturing America Inc.
783 West Mausoleum Road, P.O. Box 217
Shelbyville, Indiana 46176-9720 U.S.A.
Phone: (1) 317-398-9862 Fax: (1) 317-392-4818
URL: https://www.yushirousa.com/
QualiChem, Inc.
2003 Salem Industrial Dr, Salem, VA 24153, USA
Phone: (1) 540-375-6700 Fax: (1) 540-375-3880
URL: https://www.qualichem.com/
Yushiro do Brasil Indústria Química Ltda.
Av. Henry Néstle, 3100 Caçapava, CEP. 12286-140,
São Paulo, Brazil
Phone: (55) 12-3654-8100 Fax: (55) 12-3654-8101
URL: http://www.yushiro.com.br/3

Yushiro Mexico S.A. de C.V.
Av. Mina de Guadalupe 478 Parque Industrial Santa Fe Ⅳ
Guanajuato Puetro Interior, CP 36275
Silao, Guanajuato, Mexico
Phone: (52)472-748-9208
URL: http://yumex.mx/

Overseas Associated Companies
Buhmwoo Chemical Ind. Co., Ltd. & Buhmwoo Co., Ltd.
70-3, Yangjae-Dong, Seocho-gu, Seoul, Korea
Phone: (82) 2-571-6321 Fax: (82) 2-571-6329
URL: http://www.buhmwoo.com/
San-I Chemical Co., Ltd.
7th Fl. No.48 Ming Chuang W. Rd., Taipei, Taiwan R.O.C.
Phone: (886)2-2522-1313 Fax: (886)2-2522-1363
URL: http://www.san-i.com.tw/Business on metalworking oils and fluids
What is "metalworking oils and fluids"• Fluids used for processing steel and other metals into specific shapes.
• Important areas of fluid performance include lubricity, cooling ability, etc.
• Mainly used in the automotive, precision processing and semiconductor
processing industries.
Products• Cutting and Grinding Oils and Fluids• Aluminum Diecasting Lubricants• Cutting Oils and Fluids for Advanced-Material• Cleaners• Rust Preventives• Rolling Oils and Fluids• Drawing Oils and Fluids• Forming Oils and Fluids• Quenching Agents• Fire Resistant Hydraulic Lubricants• Other Oils and Fluids
Customers• Automobile companies• Precision machine processing companies• Steel companies• Electric equipment companies• Other machine processing companies

4

5

6

3

2

Automobile
67.2%

1

1. Automobile manufacturer andAutomobile related: 67.2%
2. Precision machinery: 14.0%
3. Ball bearing manufacturer: 6.2%
4. Steel industry: 3.9%
5. Photo Voltaic/semiconductor: 1.5%
6. Other: 7.2%
Shares of sales by customers for the fiscal year
ended March 2021. (non-consolidated)

The Company’s advantages in the field of Cutting
and Grinding Oils and Fluids• Our overwhelming share in the automobile industry; morethan 60%
The Company features its production development capacities
and quick response to changes in the automobile industry
including rationalization, changes in materials and measures
to address environmental issues.
• Our wide human network interacts with users in different
industries at “The Society of Cutting Fluids & Cutting
Technology”
About the Society of Cutting Fluids & Cutting Technology
The society was launched in 1954 as an on-site research group made up of
metal processing technology researchers, and has served as an officebridging academy and industry for more than 60 years.
Engineers with abundant on-site experience, beginning with those from
our automotive manufacturing customers, as well as those from machine
manufactures, tooling manufactures, etc., gather to exchange information
and work together to develop higher technologies and further nurture
their expertise. This group has served as a “training room” for theseexperts throughout the history of the industry. It is therefore no
exaggeration to say that this group is a national asset supporting productdevelopment, or monozukuri.

Note: Metalworking oils and fluids business: Metalworking oils and fluids are
manufactured and sold by Yushiro Chemical Industry Co., Ltd.
In overseas markets, metalworking oils and fluids are manufactured and sold by
the Company’s subsidiaries;
Yushiro Manufacturing America Inc., QualiChem, Inc. in the United States;
Yushiro do Brasil Ind. Quimica Ltda., in Brazil;
Yushiro Mexico S.A. de C.V. in Mexico;
Shanghai Yushiro Chemical Industry Co., Ltd., Qidong Yushiro Chemical
Industry Co., Ltd., and Guangzhou Yushiro Oil & Fluids Co., Ltd., in China;
Yushiro Malaysia Sdn. Bhd., in Malaysia;
Yushiro (Thailand) Co., Ltd., in Thailand;
Yushiro India Company Private Limited, in India;
P.T.Yushiro Indonesia in Indonesia;
and our affiliates;
Buhmwoo Chemical Industry Co., Ltd., and Buhmwoo Co., Ltd., in South Korea;
San-I Chemical Co., Ltd., in Taiwan.

4

CONSOLIDATED BALANCE SHEETS(Unaudited)
As of March 31, 2021 and 2020

U.S. dollars
in thousands(Note 5)

Millions of yen

Assets2020

2021

Current assets:
Cash and time deposits
Notes and accounts receivable–trade
Inventories
Other current assets
Allowance for doubtful accounts
Total current assets¥8,077
6,723
4,072
471
(14)
19,330¥7,160
6,636
4,333
486
(13)
18,603$72,961
60,73436,781
4,256(128)
174,606

Fixed assets:
Buildings and structures
Machinery, equipment and vehicle
Tools, furnitures and fixtures
Land
Lease assets
Construction in progress(Total property, plant and equipment)

4,308
1,391
378
5,137
87
22
11,325

4,760
1,489
482
5,162
89
101
12,08638,915
12,5693,419
46,403789
205
102,303

1,871
1,754
567
497
510
5,201

2,167
1,962
647
568
608
5,954

16,906
15,847
5,123
4,493
4,611
46,982

4,261
6,522
246
644
11
92
747
(15)
12,511
29,039¥48,369

3,141
6,426
0
656
1
151
314
(15)
10,67628,717¥47,320

38,49458,917
2,224
5,821
106
834
6,752
(139)
113,013262,299$436,906

Goodwill
Customer relationshipTechnical assets
Trademark right
Other intangible fixed assets(Total intangible fixed assets)
Investment in securities
Investments in subsidiaries and affiliates
Long-term loans receivable
Savings premiumLong-term time deposits
Deferred tax assets
Other assets
Allowance for doubtful accounts(Total investments and other assets)
Total fixed assets
Total assets

5

2021

U.S. dollars
in thousands(Note 5)

Millions of yen

Liabilities and net assets

2021

2020

2021

Current liabilities:¥3,554¥3,705$32,108

Short–term borrowings

3,411

2,344

30,815

Accounts payable-other

854

888

7,719

Accrued corporate taxes

117

251

1,061

Accrued bonuses

396

396

3,578

Other current liabilities

1,423

1,306

12,859Total current liabilities

9,758

8,893

88,143Long-term debt

3,428

3,646

30,969Net defined benefit liability

1,234

1,221

11,151

146

147

1,319

1,316

1,166

11,892

315

377

2,847

Notes and accounts payable–tradeLong-term liabilities:

Accrued retirement allowances for directors
Deferred tax liabilities
Other long-term liabilities
Total long-term liabilities

6,441

6,559

58,18016,19915,453

146,324

Common stock

4,249

4,249

38,383

Capital surplus

4,014

4,014

36,258Retained earnings

24,83524,577224,333

(415)

(427)

(3,753)

Shareholders' equity

32,68432,414295,222

Net unrealized gains on securities

1,649

731

14,895Currency translation adjustments

Total liabilities
Net assets:

Treasury stock(4,129)(3,261)(37,302)

Remeasurements of defined benefit plans

(70)

(86)

(635)

Accumulated other comprehensive income(2,550)(2,615)(23,041)(Total minority interests)

2,037

2,069

18,401

32,17031,867

290,581¥48,369¥47,320$436,906

Total net assets
Total liabilities and net assets

6

CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
For the Years Ended March 31, 2021 and 2020

U.S. dollars
in thousands(Note 5)

Millions of yen

2021

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income2020¥ 31,661

Non-operating income (expenses):
Interest and dividend income
Equity in earnings of associated companies
Subsidy income
Other income
Interest expenses
Other expenses
Sub-total
Ordinary income

2021

21,809
9,851
8,755
1,095

¥37,274
25,504
11,7699,555
2,213$285,982
196,996
88,98679,088
9,897

124
174
175
88
(46)
(94)
421
1,517

183
382
–
89
(47)
(104)
504
2,718

1,125
1,575
1,586
800
(424)
(854)
3,808
13,705

51
–
55
–
65
40
1,557

–
18
–
(2)
–
16
2,734

461
–
497
–
595
363
14,068

408
(74)
334
1,223
(245)

667
(62)
604
2,129
(215)

3,686
(668)
3,017
11,051(2,214)Extraordinary profit (losses)

Gain on sale of businesses
Gain on sales of fixed assets
Gain on sale of investment securities
Loss on valuation of investment securities
Loss on valuation of investments in capital of subsidiaries and associates
Sub-total
Income before income taxes
Income taxes
Current
Deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

¥

978

¥

1,913

$

8,837

CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
For the Years Ended March 31, 2021 and 2020

U.S. dollars
in thousands(Note 5)

Millions of yen

2021

Cash flows from operating activities:¥

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation

7

2020

¥

(555)
208
(251)
976
7,150
(59)

Cash flows from investing activities:
Cash flows from financing activities:

Cash and cash equivalents at end of year

1,574

¥

8,067

2021

2,829

$ 14,223(1,111)(1,508)(6)
202–(5,015)
1,882(2,270)8,819
64,586
(534)

7,150

$ 72,871

6,947
¥

IMPORTANT POINTS FORMING THE BASIS OFCONSOLIDATED FINANCIAL STATEMENTS
1. Scope of Consolidation
The scope of consolidation includes 14 consolidated subsidiaries: Yushiro
Unso Co., Ltd., Yushiro General Service Co., Ltd., Japan Cee-Bee ChemicalCo., Ltd., Yushiro Manufacturing America Inc., QualiChem, Inc., Yushiro
do Brasil Indústria Química Ltda., Yushiro Mexico S.A. de C.V., Shanghai
Yushiro Chemical Industry Co., Ltd., Qidong Yushiro Chemical Industry
Co., Ltd., Yushiro Malaysia Sdn. Bhd., Yushiro (Thailand) Co., Ltd., Siam
Cee-Bee Chemical Co., Ltd., Yushiro India Company Private Limited., andP.T. Yushiro Indonesia.

(5)

2. Application of the Equity Method
The three affiliates, Buhmwoo Chemical Industry Co., Ltd., Buhmwoo Co.,
Ltd., and San-I Chemical Co., Ltd. are included in the scope of application
for the equity method.
3. Fiscal Years of the Consolidated Subsidiaries
The fiscal year-end of the overseas subsidiaries, with the exception of Yushiro
India Company Private Limited, is December 31. In preparing theconsolidated financial statements, results as of that date are used, provided
that necessary adjustments are made regarding material transactions
conducted between January 1 and March 31, the consolidation closing date.
4. Significant Accounting Policies(1) Valuation standard and methods for securities
In other securities, quoted securities are stated at market value at the
fiscal year-end. Unrealized gains/losses are included in net assets, andthe cost of securities sold is computed using the moving averagemethod.
Unquoted securities are accounted for on a cost basis using the moving
average method.
(2) Valuation standard and methods for inventories
The cost method by the aggregate monthly average method is adopted(i.e. the book value reduction method based on declines in profitability.
However, the last purchase price method is used for fuel out of
supplies.)(3) Depreciation method used for major depreciable assets
1. Tangible fixed assets (excluding leased assets)
The Company and its consolidated domestic subsidiaries use thedeclining-balance method (however, the straight-line method isadopted for the laboratory wing at the Kanagawa Technical Center,on which construction was completed in 1997, for buildings
acquired on or after April 1, 1998 (with the exception of annexedfacilities), and for annexed facilities and structures acquired on orafter April 1, 2016). Overseas consolidated subsidiaries generally use
the straight-line method. The main terms of useful service life are 3
to 50 years for buildings and structures and 2 to 20 years for othertangible fixed assets.
2. Intangible fixed assets (excluding leased assets)
The amortization of intangible fixed assets is conducted by thestraight-line method. Computer software for internal use isamortized by the straight-line method over the estimated useful life
(5 years). Additionally, customer relationship, technical assets, andtrademark right are evenly amortized over 20 years, 15 years, and 15
years, respectively, for the period during which they are effective.
3. Leased assets
Assets leased under finance lease transactions without a transfer ofownership
The straight-line method in which the lease term is deemed as theuseful life, with a zero residual value, is used.
4. Long-term prepaid expenses
The straight-line method is adopted.
(4) Standards for conversion of foreign currency denominated assets andliabilities to Japanese yen
Debts and credits denominated in foreign currencies are converted toyen at the actual market exchange rate on the closing date. The effect of
exchange rate changes is recorded as gain or loss. Assets and liabilities ofoverseas subsidiaries, etc. are converted to yen at the actual market

(6)

(7)
(8)

(9)

exchange rate on the consolidated closing date. Profit and expenses areconverted to yen at the average market rate during the period, and theeffect of exchange rate changes is included under currency translation
adjustments and total minority interests in net assets.
Reserves
1. Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible bad
debts at the amount estimated based on the past debt experience fornormal receivables, plus uncollectible amounts determined byreference to the collectability of individual doubtful receivables.
2. Accrued bonuses
The accrued bonuses are provided at an estimated amount in order torecognize expenses for bonuses paid to employees over thecorresponding period.
3. Reserve for directors’ bonuses
At some subsidiaries, the reserve for bonuses to directors is provided
at the amount estimated to be accrued for the consolidated balance
sheet date to prepare for such payments.
4. Accrued retirement allowances for directors
In order to prepare the reserve for retirement allowances for directors,
the Company and its subsidiaries Yushiro Unso., Ltd. and Yushiro
General Service Co., Ltd. recognized the retirement allowances for
directors at the estimated amount on the consolidated balance sheet
date based on the internal regulations.
Accounting treatment for employees’ retirement benefits
Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, the benefit formula
method is the method used for attributing expected retirement benefits
to periods up to the end of the consolidated fiscal year under review.
Treatment of actuarial difference and prior service cost
Prior service cost is posted as expenses on a straight-line basis over acertain period (10 years) within the remaining service years of
employees as of the time of occurrence.
For actuarial differences, the amount divided by a straight-line basis
over a certain period (10 years) within the remaining service years of
employees as of the time of accrual during each consolidated fiscal year
is posted as expenses from the consolidated fiscal year following the
fiscal year of occurrence.
Unrecognized actuarial difference and unrecognized prior service costare provided as remeasurements of defined benefit plans underaccumulated other comprehensive income in net assets after adjustingfor tax effects.
Adoption of simplified method for small-scale enterprises
Certain consolidated subsidiaries adopt a simplified method for
calculating retirement benefit liabilities and retirement benefits whereby
the Company’s retirement benefit obligation is equal to the amount of
retirement benefits payable assuming that all employees are voluntarily
retired at the end of the fiscal year.
Goodwill amortization method and amortization period
Goodwill is evenly amortized over the effective period (13 years).
Scope of funds contained within the consolidated statements of cashflows
The funds (cash and cash equivalents) included in the consolidated
statements of cash flows consist of cash on hand, deposits that can bewithdrawn at any time, and short-term investments with maturities
within three months from the acquisition date that can be easilyliquidated and are exposed to only a minimal value fluctuation risk.
Other significant matters for the preparation of consolidated financial
statements
Accounting treatment of consumption tax, etc.
Consumption tax, etc. is recorded on a tax exclusive basis.

5. The U.S. dollar amounts in the financial statements for the
fiscal year ended March 31, 2021, represent translation ofJapanese yen at the rate of ¥110.71=US$1.00.
8

FINANCIAL INDICATORS
Operating Income (yen in million)

Net Sales (yen in million)
2021
2020

35,1702018

29,605

2018

2,502

2017

2,437

Total Assets, Net Assets (yen in million) , and ROE(%)

Net Income (yen in million)
978

2021

2,076

2019

31,565

2017

2,213

2020

37,274

2019

1,095

2021

31,661

2021

1,913

2020

2020

2,228

2018
2017

6.4

2019

1,724

2019

3.3

1,697

7.7

2017

48,36931,86747,32048,95831,791

5.7

201832,17043,68332,19740,37529,318

6.2
Net assets

Total assets

ROE

CORPORATE DATA (as of March 31, 2021)
34-16, 2-chome, Chidori, Ota-ku, Tokyo 146-8510, Japan
Phone: (03) 3750-6761 Fax: (03) 3750-1146 URL: https://www.yushiro.co.jp¥4,249 million
306
July 24, 1944
Tokyo, Nagoya and Osaka
Hokkaido, Tohoku, Kitakanto, Hamamatsu, Fukuyama, Hiroshima and Kyushu

Head Office
Capital
Employees
Established
Branch Offices
Sales Offices

Directors and Auditors (as of June 24, 2021)
Eiichi Ogo
Masanori Arisaka
Shingo Kikuchi
Seiji Takahashi
Kazushige Kobayashi
Masafumi Nakano

President
Senior Managing Directors
Directors

Directors (Audit Committee Members)

Katsuko Iizuka
Miki Koshiba
Toshio Yamazaki

STOCK INFORMATION (as of March 31, 2021)
Number of shares issued
Trading unit
Total number of shareholders
Stock listing
Securities code
Transfer agent for common stock
Independent certified public accountants
Main underwriter

13,900,065
100
4,343
First section, Tokyo Stock Exchange
5013
Mitsubishi UFJ Trust and Banking Corporation
Ernst & Young ShinNihon LLC
Nomura Securities Co., Ltd.

(millionsof yen )Market value of shares

25,00020,00015,00010,0005,000
02015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3

Stock pricesTerm2020/42020/52020/62020/72020/82020/9

High

1,184

1,300

1,379

1,370

1,355

1,425

1,408

1,363

Low

1,066

1,115

1,233

1,236

1,219

1,242

1,290

249,700

182,700

238,700

117,300

113,700

219,000

92,800(Yen/share)(Yen/share)

Trading volume(Hundred of shares)

2020/10 2020/11 2020/12

2021/12021/22021/3

1,223

1,176

1,180

1,237

1,164

1,078

1,053

1,061

1,081

171,300

216,200

206,300

314,700 1,057,600