Shimadzu Corporation andConsolidated Subsidiaries
Consolidated Financial Statements
for the Year Ended March 31, 2024,
and Independent Auditor's ReportShimadzu Corporation and Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2024

Millions of Yen
2024
2023

ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 19)
Time deposits (Note 19)
Marketable securities (Notes 6 and 19)
Trade receivables and contract assets:
Notes and accounts receivable—trade, and contract
assets (Notes 5 and 19)
Allowance for doubtful receivables
Net trade receivables and contract assets
Inventories (Note 7)
Prepaid expenses and other current assets
Total current assets
PROPERTY, PLANT AND EQUIPMENT (Notes 2.f and 3):
Land
Buildings and structures
Machinery, equipment and vehicles
Lease assets
Construction in progress
Others (Note 2.n)Total property, plant and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 6 and 19)
Investments in and advances to unconsolidated
subsidiaries and associated companies
Goodwill (Note 2.h)Software (Notes 2.i and 3)
Asset for retirement benefits (Notes 3 and 10)
Deferred tax assets (Notes 3 and 17)
Other assets (Note 3)
Total investments and other assets

Thousands of
U.S. Dollars(Note 4)2024

¥ 159,235
6,051¥ 153,735
5,112
425

$ 1,054,536
40,073

144,809(2,050)142,759
141,773
17,119131,243(2,217)129,026
128,096
15,115

959,000(13,576)
945,424
938,894
113,371466,937

431,509

3,092,298

22,40955,327
9,306
1,951
4,284
25,28722,04054,954
8,823
2,108
2,124
22,943

148,404
366,404
61,62912,921
28,371
167,463

118,564

112,992

785,192

16,441

13,244

108,881

1,546
5,220
7,765
36,248
10,946
10,295

1,901
4,948
7,627
21,81915,693
9,136

10,23834,57051,424240,053
72,49068,17888,461

74,368585,834

CURRENT LIABILITIES:
Short-term borrowings (Notes 9 and 19)
Current portion of long-term debt (Notes 2.n and 9)
Trade notes and accounts payable (Note 19)
Other payables
Contract liabilities (Note 12)
Income taxes payable
Provision for bonuses
Accrued expenses and other current liabilities(Notes 2.o and 2.p)

¥ 673,962¥ 618,869

¥

1,483
3,545
52,401
17,10150,222
8,009
13,578

¥

1,334
3,310
66,714
15,92850,158
10,321
13,627$

9,821
23,477
347,026
113,252
332,596
53,04089,921

12,172

10,99580,609Total current liabilities

158,511

172,387

1,049,742

LONG-TERM LIABILITIES:Long-term debt (Notes 2.n, 9 and 18)
Liability for retirement benefits (Notes 3 and 10)
Long-term deposit
Other long-term liabilities (Notes 2.o and 17)

6,885
14,158
80
1,992

6,632
14,22280
2,049

45,596
93,762
530
13,191

Total long-term liabilities

23,11522,983

153,079

26,64934,911
376,400

26,64934,911
336,066

176,483
231,199
2,492,715(1,109)(1,211)(7,344)8,204
31,442
15,835492,332
4

5,830
15,657
5,597
423,499

54,331
208,225
104,868
3,260,477
26

492,336

423,499

3,260,503¥ 673,962¥ 618,869$ 4,463,324

COMMITMENTS AND CONTINGENT LIABILITIES(Notes 18 and 20)
EQUITY (Notes 11 and 24):
Common stock—authorized, 800,000,000 shares;
issued, 296,070,227 shares
Capital surplus
Retained earnings
Treasury stock―at cost, 1,348,202 shares in 2024
and 1,399,245 shares in 2023
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans
Total
Noncontrolling interests
Total equity

TOTAL

Millions of Yen
2024
2023

LIABILITIES AND EQUITY

Thousands of
U.S. Dollars(Note 4)2024

$ 4,463,324

TOTAL

See notes to consolidated financial statements.

-6-

Shimadzu Corporation and Consolidated Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2024

Millions of Yen
2024
2023
NET SALES (Notes 2.s, 12 and 23)
COST OF SALES
Gross profit
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (Note 13)
Operating income (Note 23)
OTHER INCOME (EXPENSES):
Foreign exchange gain—net
Interest and dividend income
Subsidy income
Interest expense
Gain on sales of investment securities (Note 6)
Loss on disposal of non-current assets
Loss on valuation of investment securities
Gain on sales of non-current assets
Donation
Gain on change in equity
Loss on sales of investment securities
Insurance claim income (Note 14)
Loss on liquidation of business (Note 15)
Loss on special investigation (Note 16)
Other―net

Thousands of
U.S. Dollars(Note 4)2024

¥ 511,895¥ 482,240$ 3,390,033

291,053

281,281

1,927,503

220,842

200,959

1,462,530

148,088

132,740

980,71572,754

68,219481,815

2,443
1,614
364
(295)
268
(201)
(182)
173
(102)
17
(2)

1,296
805
506
(281)
103
(166)
(3)
80
(97)

16,17910,6892,411(1,954)
1,775(1,331)(1,205)
1,146
(675)
113
(13)

117

901
(613)
(351)
433

772

4,214

2,613

27,907

INCOME BEFORE INCOME TAXES

76,96870,832509,722

INCOME TAXES (Note 17):
Current
Deferred

20,400(469)

21,465(2,682)

135,100(3,106)

19,931

18,783

131,994

57,03752,049377,728

Other income―net

Total income taxes
NET INCOME
NET LOSS ATTRIBUTABLE TO NONCONTROLLINGINTERESTS
NET INCOME ATTRIBUTABLE TO OWNERS OF
THE PARENT(1)¥ 57,038-7-(7)¥ 52,049$ 377,735(Continued)

Shimadzu Corporation and Consolidated Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2024
Yen

PER SHARE OF COMMON STOCK (Notes 2.w and 22):
Basic net income
Cash dividends applicable to the year

2024

2023

U.S. Dollars
2024¥ 193.54
60.00¥ 176.64
54.00$ 1.280.40

See notes to consolidated financial statements.

-8-(Concluded)

Shimadzu Corporation and Consolidated Subsidiaries
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2024

Millions of Yen
2024
2023

Thousands of
U.S. Dollars(Note 4)2024

NET INCOME¥ 57,037¥ 52,049$ 377,728

OTHER COMPREHENSIVE INCOME (LOSS) (Note 21):
Unrealized gain (loss) on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans

2,374
15,785
10,238

(641)
5,564
71

15,722
104,536
67,80228,397

4,994

188,060

COMPREHENSIVE INCOME¥ 85,434¥ 57,043$ 565,788

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent
Noncontrolling interests¥ 85,435(1)¥ 57,043$ 565,795(7)

Total other comprehensive income

See notes to consolidated financial statements.

-9-

Shimadzu Corporation and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2024

BALANCE, APRIL 1, 2022
Net income attributable to owners of the parent
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2023
Net income attributable to owners of the parent
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Decrease by merger
Net change in the year
BALANCE, MARCH 31, 2024

BALANCE, MARCH 31, 2023

Number of
Shares ofCommonStock
Outstanding

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock294,653,235¥ 26,649¥ 34,911¥ 298,759¥ (1,245)¥ 6,471¥ 10,093

294,670,982

26,64934,911

336,066(1,211)¥ 381,164
52,049(14,742)
(4)
38
4,994

(641)

5,564

71

52,049(14,742)
(4)
38
4,994

5,830

15,657

5,597

423,499

423,499¥4

57,038(16,510)
(7)
109
(194)
28,401¥4¥ 492,336

Noncontrolling
Interests

Total
Equity57,038(16,510)2,374

15,785

10,23857,038(16,510)
(7)
109
(194)
28,397¥ 8,204¥ 31,442¥ 15,835¥ 492,332

(7)
109
(194)
51,043294,722,025¥ 26,649¥ 34,911¥ 376,400¥ (1,109)

CommonStockCapitalSurplusRetained
Earnings

Thousands of U.S. Dollars (Note 4)
Accumulated Other Comprehensive Income
Unrealized
ForeignDefinedGain onCurrency
Retirement
Treasury
Available-forTranslation
Benefit
Stock
Sale Securities Adjustments
Plans$ 176,483$ 231,199$ 2,225,603$ (8,020)$ 38,609$ 103,689$ 2,804,629$ 2,804,629$ 26

377,735(109,338)(46)
722(1,285)
188,086$ 26$ 3,260,503

15,722

104,536

67,802377,735(109,338)(46)
722(1,285)
188,060$ 54,331$ 208,225$ 104,868$ 3,260,477

(46)
722
(1,285)$ 231,199$ 2,492,715

See notes to consolidated financial statements.

- 10 -$ (7,344)

Total$ 37,066

377,735(109,338)$ 176,483

Total
Equity¥ 381,164(4)
38
17,747

Noncontrolling
Interests

Total¥ 5,526

52,049(14,742)

Net income attributable to owners of the parent
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Decrease by merger
Net change in the year
BALANCE, MARCH 31, 2024

Millions of Yen
Accumulated Other Comprehensive Income
Unrealized
ForeignDefinedGain onCurrency
Retirement
Available-forTranslation
BenefitSale Securities Adjustments
Plans

Shimadzu Corporation and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2024

Millions of Yen
2024
2023
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes paid
Depreciation and amortization
Loss on liquidation of business
Loss on special investigation
Insurance claim income
Payment on special investigation
Receipt of insurance claim income
Foreign exchange gain—net
Gain on sales and valuation of investment securities
Loss on sale and retirement of property, plant andequipment
Changes in assets and liabilities:
Increase in trade receivables
Decrease in allowance for doubtful receivables
Increase in inventories
Decrease in trade payables(Decrease) increase in contract liabilities(Decrease) increase in accrued bonuses
Decrease in net defined benefit asset and liability
Other―net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment
Purchases of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of securities
Payments of long-term loans receivableCollections of long-term loans receivable
Payments for acquisition of newly consolidated
subsidiaries
Other―net
Net cash used in investing activities
FORWARD- 11 -

Thousands of
U.S. Dollars(Note 4)2024

¥ 76,968¥ 70,832$ 509,722(23,480)
18,551(155,497)
122,854(2,715)(84)(21,800)
17,524
613
351
(901)
(289)
350
(1,043)
(100)

28

87

185

(6,902)(729)(7,182)(19,200)(5,363)
(277)
(213)
725
(46,841)(1,053)(105)(16,191)(4,228)
6,831
1,503
(17)
(4,061)(22,529)(45,709)(4,828)(47,563)(127,152)(35,517)(1,834)(1,411)
4,804(310,205)

30,12748,303

199,517444(15,502)
(375)
639
409
(67)
50

515
(16,839)(1,866)
182
(67)
56

2,940
(102,662)(2,483)
4,232
2,709
(444)
331

(1,596)(13,996)(2,494)(10,570)(15,998)(34,509)(105,947)¥ 14,129¥ 13,794$ 93,570(17,980)(557)(Continued)

Shimadzu Corporation and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2024

Millions of Yen
2024
2023
FORWARD¥ 14,129

FINANCING ACTIVITIES:
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of long-term debt
Cash dividends paid
Repayments of lease liabilities
Decrease in treasury stock
Other―net¥ 13,794

159(73)(16,492)(4,799)101
5Net cash used in financing activities

Thousands of
U.S. Dollars(Note 4)2024$

93,570

1,053
(100)
(79)
(14,745)(4,529)34(483)(109,219)(31,781)669
33(21,099)(19,419)(139,728)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS

12,028

4,041

79,655NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS

5,058(1,584)33,497

153,735

155,319

1,018,113

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
INCREASE IN CASH AND CASH EQUIVALENTSRESULTING FROM MERGER WITH UNCONSOLIDATEDSUBSIDIARIESCASH AND CASH EQUIVALENTS, END OF YEAR

442
¥ 159,235

2,926¥ 153,735$ 1,054,536

See notes to consolidated financial statements.

- 12 -(Concluded)

Shimadzu Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Year Ended March 31, 2024

1.

BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements of Shimadzu Corporation (the "Company") andits significant subsidiaries (collectively, the "Group") have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related
accounting regulations and in accordance with accounting principles generally accepted in Japan("Japanese GAAP"), which are different in certain respects as to the application and disclosure
requirements of IFRS Accounting 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 2023 consolidated financial statements to conform to the classifications usedin 2024.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements as of March 31, 2024, include theaccounts of the Company and its 24 domestic subsidiaries (23 in 2023) and 55 foreignsubsidiaries (55 in 2023). Shimadzu Future Innovation Fund was established as a corporate
venture capital (CVC) fund and has been included in the scope of consolidation from the fiscal
year ended March 31, 2024. Six subsidiaries are not included in the consolidated financial
statements and consolidation of the 6 subsidiaries would not have a material effect on theaccompanying consolidated financial statements.
Practical Issues Task Force ("PITF") No. 20, "Practical Solution on Application of Control Criteria
and Influence Criteria to Investment Associations," which was issued by Accounting Standards
Board of Japan ("ASBJ"), clarifies how the control and influence concept should be practicallyapplied to the consolidation scope of collective investment vehicles, such as limited partnerships,
Tokumei-Kumiai and other entities with similar characteristics. The Company applied this task
force and consolidated 1 such collective investment vehicles in 2024 (0 in 2023).
Investments in 3 associated companies (3 in 2023) are recorded using the equity method. For
associated companies recorded using the equity method with fiscal year-end dates that differ
from the consolidated fiscal year-end date, the financial statements that were closed at theirfiscal year-end dates or provisionally closed at the consolidated fiscal year-end date were used
for consolidation.
Investments in 6 unconsolidated subsidiaries (6 in 2023) and 4 associated companies (4 in 2023)
are stated at cost. The effect on the consolidated financial statements of not applying the equity
method is immaterial.
All significant intercompany balances and transactions have been eliminated duringconsolidation. All material unrealized profit included in assets resulting from transactions within
the Group is also eliminated.
Shimadzu (China) Co., Limited and 10 other subsidiaries have a closing date falling on
December 31; however, these companies carry out provisional settlements of accounts on March
31 and use these amounts in consolidated accounts. During the fiscal year ended March 31,
2024, December 31 was used by 1 consolidated subsidiary as the closing date for their financial
statements. Necessary adjustments have been made to address transactions that occurred
between closing dates different to that of the Company.

- 13 -

b.

Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements—Under ASBJ 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 a parent company and its subsidiaries for
similar transactions and events under similar circumstances should in principle be unified for the
preparation of the consolidated financial statements. However, financial statements prepared byforeign subsidiaries in accordance with either IFRS Accounting 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 isaccounted for in accordance with Japanese GAAP, unless they are not material: (a) amortizationof goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has beenrecorded in equity through other comprehensive income; (c) expensing capitalized development
costs of R&D; (d) cancellation of the fair value model of accounting for property, plant andequipment and investment properties and incorporation of the cost model of accounting; and(e) recording a gain or loss through profit or loss on the sale of an investment in an equity
instrument for the difference between the acquisition cost and selling price, and recording
impairment loss through profit or loss for other-than-temporary declines in the fair value of aninvestment in an equity instrument, where a foreign subsidiary elects to present in othercomprehensive income subsequent changes in the fair value of an investment in an equity
instrument.

c.

Cash Equivalents—Cash equivalents are short-term investments that are readily convertible
into cash and exposed to insignificant risk of changes in value.
Cash equivalents include time deposits that mature or become due within three months of thedate of acquisition.

d.

Marketable and Investment Securities—Marketable and investment securities are classified
and accounted for, depending on management's intent, as follows: available-for-sale securities,
which are not classified as either trading securities or held-to-maturity debt securities, arereported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a
separate component of equity.
Nonmarketable available-for-sale securities are stated at cost, determined by themoving-average method. For other-than-temporary declines in fair value, investment securities
are reduced to net realizable value by a charge to income. And investments in limited
partnerships (those deemed to be securities pursuant to Article 2, Paragraph 2 of the Financial
Instruments and Exchange Act) are stated at net amount proportionate to equity interests basedon the financial statements for the most recent fiscal year available depending on the reporting
date stipulated in the partnership agreement.

e.

Inventories—Inventories are principally stated at the lower of cost, using the periodic averagemethod, or net selling value.

f.

Property, Plant and Equipment—Property, plant and equipment are stated at cost, less gains
deferred on the sale and replacement of certain assets. Depreciation of property, plant andequipment, lease assets, and right-of-use assets is computed by the straight-line method basedon the estimated useful lives of the assets. The range of useful lives is principally 2 to 59 years
for buildings and structures, 2 to 17 years for machinery, equipment and vehicles, and 2 to 15
years for tools, furniture and fixtures included in "Others" under "Property, plant and equipment."
The useful lives for lease assets and right-of-use assets are the terms of the respective leases.
Accumulated depreciation as of March 31, 2024 and 2023, was ¥148,524 million($983,603 thousand) and ¥137,799 million, respectively.

- 14 -

g.

Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever eventsor changes in circumstances indicate that the carrying 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 thecontinued use and eventual disposition of the asset or asset group. The impairment loss would
be measured as the amount by which 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.

Goodwill—Goodwill is amortized using the straight-line method over estimated effective lives of
up to 20 years, while immaterial amounts of goodwill are charged to income as incurred.

i.

Software—Software costs for internal use are capitalized and amortized by the straight-line
method over estimated useful lives of 5 years.

j.

Retirement and Pension Plans—The Company and certain domestic subsidiaries have three
types of retirement and pension plans covering most of their employees, a cash balance typedefined benefit pension plan, a lump-sum severance payment plan, and a defined contribution
plan or an advance payment system. Under the defined contribution plan or advance payment
system, employees can adopt whichever they consider more preferable. Other domestic
subsidiaries have defined benefit pension plans and lump-sum severance payment plans.
Certain foreign subsidiaries have non-contributory funded pension plans.
Certain consolidated subsidiaries have adopted a simplified method of calculation with liability for
retirement benefits and retirement benefits expense. Under this simplified method, the retirement
benefit obligation for employees is stated at the amount which would be required to be paid if alleligible employees voluntarily retired at the balance sheet date.
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 a benefit formula basis. Actuarial gains and losses and past service costs
that are yet to be recognized in profit or loss are recognized within equity (accumulated othercomprehensive income), after adjusting for tax effects and are recognized in profit or loss over 15
years no longer than the expected average remaining service period of the employees.
The Company has an employee retirement benefit trust for payments of retirement benefits. The
securities that were contributed to and held in this trust qualify as plan assets.
The domestic subsidiaries also have a retirement plan for directors and Audit & Supervisory
Board members. The Group provides a liability for the amount that would be required if all
directors and Audit & Supervisory Board members retired at the end of each financial period. The
accrued provisions are not funded and any amounts payable upon retirement are included inother long-term liabilities as of March 31, 2024 and 2023.

k.

Asset Retirement Obligations—An asset retirement obligation is recorded for a legal obligation
imposed either by law or contract that results from the acquisition, construction, development,
and normal operation of a tangible fixed asset, and is associated with the retirement of suchtangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted
cash flows required for the future asset retirement and is recorded in the period in which the
obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of the asset
retirement obligation cannot be made in the period the asset retirement obligation is incurred, theliability should be recognized when a reasonable estimate of the asset retirement obligation canbe made. Upon initial recognition of a liability for an asset retirement obligation, an asset
retirement cost is capitalized by increasing the carrying amount of the related fixed asset by theamount of the liability. The asset retirement cost is subsequently allocated to expense throughdepreciation over the remaining useful life of the asset. Over time, the liability is accreted to its
present value each period. Any subsequent revisions to the timing or the amount of the original
estimate of undiscounted cash flows are reflected as an adjustment to the carrying amount of theliability and the capitalized amount of the related asset retirement cost.

- 15 -

l.

Research and Development Costs—Research and development costs are charged to income,general and administrative expenses as incurred.

m. Allowance for Doubtful Receivables—The allowance for doubtful receivables is stated in theamount considered to be appropriate based on the Group's past credit loss experience and anevaluation of potential losses in the receivables outstanding.
n.

Leases—Finance lease transactions are capitalized to recognize lease assets and leaseobligations in the balance sheet.

o.

Transactions Related to the Board Incentive Plan Trust—Based on the resolution at thegeneral meeting of shareholders held on June 28, 2017, the Company introduced the "Board
Incentive Plan Trust" (the "Plan") as a performance-based stock remuneration plan for directors
and titled corporate officers of the Company (excluding corporate officers who are non-residents
of Japan). Accounting treatments related to the trust are in accordance with "Practical Solution
on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts"(PITF No. 30, March 26, 2015).
The Plan is a stock remuneration plan, wherein a trust established by the Company (Board
Incentive Plan Trust) acquires the Company shares using the cash contributed by the Company
and through this trust, the Company shares and money equivalent to the amount obtained byconverting the Company shares into cash, corresponding to the points granted based on the
degree of achievement of business performance each fiscal year and according to the individual
position of the recipient, are delivered and paid to directors.
The shares of the Company remaining in the trust are recorded as treasury stock under equity
based on the book value (excluding incidental costs) in the trust. As of March 31, 2024, theCompany's treasury stock consisted of 92,599 shares with a total book value of ¥189 million($1,252 thousand), compared with 145,398 shares and a total book value of ¥298 million as ofMarch 31, 2023.
In addition, the estimated amount of the aforementioned directors' remuneration allotted at theend of the current fiscal year was recorded as provision for stock payment in "Accrued expenses
and other current liabilities" under "Current liabilities," and "Other long-term liabilities" under"Long-term liabilities."p.

Bonuses to Directors and Titled Corporate Officers—Bonuses to directors and titledcorporate officers are accrued at the year-end to which such bonuses are attributable. The
estimated amount of the aforementioned bonuses to directors and titled corporate officers wasrecorded as provision for bonuses to directors and titled corporate officers in "Accrued expenses
and other current liabilities" under "Current liabilities."q.

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 torecognize deferred tax assets and liabilities 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.
The Company and domestic subsidiaries apply the group tax sharing system. In addition, in
accordance with "Practical Solution on the Accounting and Disclosure Under the Group Tax
Sharing System" (Practical Solution No. 42, August 12, 2021), the Company and domestic
subsidiaries account for corporate tax and local corporate tax, or they account for and disclose
related tax effect accounting.

r.

Appropriations of Retained Earnings—Appropriations of retained earnings are reflected in the
consolidated financial statements for the following year upon shareholders' approval.

- 16 -

s.

Revenue Recognition—Based on the following five-step approach, the Group recognizes
revenue from contracts with customers, in the amount of consideration it expects to receive, in
exchange for the promised goods or services when the control of those goods or services istransferred to the customers.
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 performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
In recognizing revenue, the Group identifies performance obligations based on contracts withcustomers for the sales of products, services and other sales in its core business of measuring
instruments, medical equipment, aeronautical equipment and industrial equipment, and generally
recognizes revenue at the following times when the performance obligations are satisfied:(1) Revenue from sales of products
With respect to the sales transaction where the Group is responsible for providing products
and installation services, revenue is recognized upon completion of product installation
services.
With respect to the sales transaction where the Group is not responsible for providing
products and installation services, revenue is recognized upon delivery of products, whencustomers obtain control of the products and the Group satisfies performance obligations.
With respect to the sales transaction where the Company and its domestic subsidiaries are
not responsible for providing products and installation services, revenue is recognized at thetime of shipment if the period from the time of shipment to the time when control of the
product is transferred to the customer is an ordinary period.
(2) Revenue from services and other sales
Revenue from services and other sales mainly includes revenues from warranty, repair,maintenance and relocation activities related to products. Revenues is recognized either at
the time the service is completed if the performance obligations are satisfied at a point in
time, or based on either a straight-line basis or the progress over the service period if
performance obligations are satisfied over time.

t.

Foreign Currency Transactions—All short-term and long-term monetary receivables andpayables denominated in foreign currencies are translated into Japanese yen at the exchange
rates at the consolidated balance sheet date. The foreign exchange gains and losses fromtranslation are recognized in the consolidated statement of income in the period in which theyoccur.

u.

Foreign Currency Financial Statements—The balance sheet accounts of the consolidated
foreign subsidiaries are translated into Japanese yen at the current exchange rate as of thebalance sheet date, except for equity, which is translated at the historical exchange rate.
Differences arising from such translation are shown as "Foreign currency translation
adjustments" in accumulated other comprehensive income as a separate component of equity.
Revenue and expense accounts of the consolidated foreign subsidiaries are translated into
Japanese yen at the average exchange rate.

v.

Derivatives—The Group uses derivative financial instruments to manage their exposures tofluctuations in foreign currency exchange rates. Foreign exchange forward contracts are utilized
by the Group to reduce foreign currency exchange rate risk. The Group does not enter
derivatives for trading or speculative purposes.
Foreign currency forward contracts are measured at fair value and the unrealized gains/losses
are recognized in income.

- 17 -

w. Per-Share Information—Basic net income per share is computed by dividing net income
attributable to common shareholders by the weighted-average number of common shares
outstanding for the period.
Diluted net income per share is not presented as there are not any dilutive securities outstanding.
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.
x.

New Accounting Pronouncements
Application of "Accounting Standard for Current Income Taxes" Etc.
• "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022)• Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25,
October 28, 2022)• Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October28, 2022)(1) Overview
These accounting standards and guidance establish the accounting classification forcorporate taxes resulting from other comprehensive that is subject to taxation, as well as thetreatment of tax effects related to the sale of shares in subsidiaries when the group taxation
regime is applied.
(2) Date of applying
The Group will apply the accounting standards and implementation guidance from the
beginning of the fiscal year ending March 31, 2025.
(3) Effect of the applying the accounting standard and guidance
The Group is in the process of measuring the effects of applying the accounting standard
and implementation guidance in future applicable periods.
Application of "Accounting and Disclosure of Corporate Taxes under the Global MinimumTax System"• "Accounting and Disclosure of Corporate Taxes under the Global Minimum Tax System"(ASBJ Statement No. 46, March 22, 2024)(1) Overview
These accounting standards and guidance establish the treatment of accounting anddisclosure of taxes under the global minimum taxation system.
(2) Date of applying
The Group will apply the accounting standard and implementation guidance from the
beginning of the fiscal year ending March 31, 2025.
(3) Effect of the applying the accounting standard and guidance
The Group is in the process of measuring the effects of applying the accounting standard
and implementation guidance in future applicable periods.

- 18 -

3.

SIGNIFICANT ACCOUNTING ESTIMATES(1) Impairment Loss of Assets of the Group(a) Carrying amounts

Millions of Yen
2024
2023
Property, plant and equipment
Intangible assets¥ 118,564
18,014¥ 112,992
16,964

Thousands of
U.S. Dollars
2024$ 785,192
119,298(b) Information on the significant accounting estimate
In order to identify indications of impairment loss and to perform recoverability test, businessassets are generally grouped by business segment for management accounting, and theGroup makes a determination based on the estimated future cash flows of each business
unit. Idle assets are grouped by individual property and the recoverable amount is measured
by the net selling price. The Group believes that the estimation of future cash flows andrecoverable amounts is reasonable. However, if future cash flows and recoverable amounts
decrease due to deviations from future business plans, changes in market conditions anddemand, etc., an impairment loss may occur, which may have a significant impact on profit
or loss.
(2) Valuation of Retirement Benefit Obligations and Costs(a) Carrying amounts

Millions of Yen
2024
2023
Net defined benefit asset
Net defined benefit liability¥ 36,248
14,158¥ 21,819
14,222Thousands of
U.S. Dollars
2024$ 240,053
93,762(b) Information on the significant accounting estimate
The calculation of retirement benefit costs and retirement benefit obligations for employees
is based on actuarial assumptions. Assumptions include the discount rate, expected rate ofsalary increase, retirement rate, mortality rate and expected long-term rate of return on plan
assets. The actuarial assumptions used by the Group are considered reasonable. However,differences between the assumptions and actual results, and changes in the assumptions
themselves may affect the future periodic benefit costs, benefit obligations and the required
contributions to the plan, which may have a material impact on earnings and financial
position.
(3) Recoverability of Deferred Tax Assets(a) Carrying amounts

Millions of Yen
2024
2023
Deferred tax assets¥ 10,946- 19 -¥ 15,693

Thousands of
U.S. Dollars
2024$ 72,490

(b) Information on the significant accounting estimate
The Group has established a valuation allowance for deferred tax assets deemed to be
unrecoverable. The recoverability of the deferred tax assets is evaluated by determining
whether each entity and tax sharing group have sufficient taxable income that is measured
based on the historical taxable income and estimates of future taxable income. If
deteriorations in the market environment or business performance occur, then the estimatedfuture taxable income may not be accurate, which may cause the Group to record an
additional valuation allowance for the deferred tax assets and cause a material impact on
the Group's profit or loss.
4.

U.S. DOLLAR AMOUNTS
The consolidated financial statements are stated in Japanese yen, the currency of the country inwhich the Company is incorporated and operates. The translations of Japanese yen amounts into
U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been
made at the rate of ¥151 to $1, the approximate rate of exchange as of March 31, 2024. Suchtranslations should not be construed as representations that the Japanese yen amounts could be
converted into U.S. dollars at that or any other rate.

5.

NOTES AND ACCOUNTS RECEIVABLE—TRADE, AND CONTRACT ASSETS
Notes and accounts receivable—trade, and contract assets as of March 31, 2024, consisted of thefollowing:

Millions of Yen
2024
2023
Notes receivable—trade
Accounts receivable—trade
Contract assets
6.

¥ 32,070
112,064675¥ 28,689
102,277
277

Thousands of
U.S. Dollars
2024$ 212,384
742,146
4,470

MARKETABLE AND INVESTMENT SECURITIESMarketable and Investment securities as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023
Current:
Marketable securities
Non-current:
Marketable equity securities
Bonds
Nonmarketable equity securities¥¥ 14,585

Total- 20 -

Thousands of
U.S. Dollars
2024

425
$ 96,589

1,856

11,313239
1,692¥ 16,441¥ 13,669$ 108,881

12,292

The cost and aggregate fair values of investment securities as of March 31, 2024 and 2023, were as
follows:

March 31, 2024

Cost

Millions of Yen
Unrealized Unrealized
Gains
LossesSecurities classified as:
Available-for-sale equity securities¥ 2,660¥ 11,926¥ 2,757250
499¥ 8,556

Fair
Value

¥ (1)

¥ 14,585¥ (11)(74)¥ 11,313
239
425

March 31, 2023
Securities classified as:
Available-for-sale equity securities
Bonds
OthersMarch 31, 2024
Securities classified as:
Available-for-sale equity securities

Thousands of U.S. Dollars
Unrealized Unrealized
Gains
LossesCost$ 17,616$ 78,980

$ (7)

Fair
Value

$ 96,589

The proceeds, realized gains and realized losses of the available-for-sale securities which were soldduring the years ended March 31, 2024 and 2023, were as follows:

March 31, 2024

Proceeds

Millions of Yen
Realized
Gains

Available-for-sale:
Equity securities

¥ 639

¥ 268

¥ 182

¥ 103

Realized
Losses¥2

March 31, 2023
Available-for-sale:
Equity securities

7.

March 31, 2024

Thousands of U.S. Dollars
Realized
Realized
Proceeds
Gains
LossesAvailable-for-sale:
Equity securities$ 4,232$ 1,775$ 13

INVENTORIESInventories as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Merchandise and finished goods
Work in process
Raw materials and supplies¥ 83,333
26,02232,418¥ 72,333
26,50529,258$ 551,874
172,331214,689

Total¥ 141,773¥ 128,096$ 938,894- 21 -

8.

LONG-LIVED ASSETS
No impairment loss was recognized for the years ended March 31, 2024 and 2023.

9.

SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Short-term borrowings primarily consisted of bank overdrafts and financing agreements with banks,
which are renewable on an annual basis and bear interest at annual rates ranging from 0.37% to3.88% and from 0.33% to 0.43%, as of March 31, 2024 and 2023, respectively.
Long-term debt as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Borrowings, principally from banks, due serially to 2026
with 0.65% interest rates as of March 31, 2024
(from 0.65% to 0.74%, due serially to 2026 as ofMarch 31, 2023)
Obligations under finance leases
Total
Less current portion¥

132
10,29810,430(3,545)

¥ 204
9,738
9,942
(3,310)$Long-term debt, less current portion¥ 6,885¥ 6,632$ 45,596

874
68,19969,073(23,477)

Annual maturities of long-term debt outstanding as of March 31, 2024, were as follows:Year Ending
March 31

10.

Millions of Yen

Thousands of
U.S. Dollars

2025
2026
2027
2028
2029
2030 and thereafter¥ 3,545
2,681
1,883
884
399
1,038

$ 23,477
17,755
12,470
5,854
2,642
6,875

Total

¥ 10,430$ 69,073

RETIREMENT AND PENSION PLANS
The Company and certain consolidated subsidiaries have severance payment plans for employees.
In addition, consolidated domestic subsidiaries have severance payment plans for directors andAudit & Supervisory Board members. Under most circumstances, employees terminating theiremployment are entitled to retirement benefits determined based on the basic rate of pay at the timeof termination, years of service, and certain other factors. Such retirement benefits are made in theform of a lump-sum severance payment from the Company or from certain consolidated domestic
subsidiaries and annuity payments from a trustee. Employees are entitled to larger payments if thetermination is involuntary, by retirement at the mandatory retirement age or certain other conditions.
The liability for retirement benefits as of March 31, 2024 and 2023, for directors and Audit &Supervisory Board members is ¥162 million ($1,070 thousand) and ¥141 million and includes in"Other long-term liabilities" under "Long-term liabilities," respectively. The retirement benefits for
directors and Audit & Supervisory Board members are paid subject to the approval of theshareholders of each subsidiary.

- 22 -

(1) The changes in defined benefit obligation for the years ended March 31, 2024 and 2023, wereas follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Balance at beginning of year
Current service cost
Interest cost
Actuarial losses (gains)
Benefits paid
Past service cost
Reclassification of retirement
benefit obligation resulting fromchange from the simplified method
Increase of retirement benefit
obligation resulting from change
from the simplified method
Others¥ 58,789
2,649
888
190
(3,523)823¥ 58,753
2,542
784(1,151)(3,385)$ 389,331
17,543
5,881
1,258(23,331)
5,450

135

712

894

26
946

369
165

172
6,266

Balance at end of year

¥ 60,923¥ 58,789$ 403,464(2) The changes in plan assets for the years ended March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Balance at beginning of year
Expected return on plan assets
Actuarial gains (losses)
Contributions from the employer
Benefits paid
Others¥ 70,017
1,400
15,5091,369(2,624)
1,163¥ 70,406
1,295(1,108)1,397(2,173)200$ 463,689
9,272
102,709
9,066(17,378)
7,702

Balance at end of year

¥ 86,834¥ 70,017$ 575,060(3) The changes in defined benefit liability and defined benefit assets for the plans to which thesimplified method was applied for the years ended March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Balance at beginning of year
Net periodic benefit costs
Benefits paid
Contributions from the employer
Reclassification of retirement benefit
obligation resulting from change
from the simplified method
Others¥ 3,632
922
(238)
(355)

¥ 3,982
1,093
(372)
(361)

$ 24,053
6,106(1,576)(2,351)

(135)
(4)

(712)
2

(894)
(27)

Balance at end of year

¥ 3,822¥ 3,632$ 25,311

In the above, defined benefit liability and defined benefit assets have been offset.

- 23 -

(4) A reconciliation between the liability recorded in the consolidated balance sheet and thebalances of defined benefit obligation and plan assets as of March 31, 2024 and 2023, were as
follows:

Millions of Yen
2024
2023
Funded defined benefit obligation
Plan assets

Thousands of
U.S. Dollars
2024

Unfunded defined benefit obligation¥ 63,731(88,251)(24,520)2,430¥ 61,896(71,728)(9,832)2,235$ 422,060(584,444)(162,384)
16,093Net liability arising from defined
benefit obligation¥ (22,090)¥ (7,597)$ (146,291)

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Liability for retirement benefits
Asset for retirement benefits¥ 14,158(36,248)¥ 14,222(21,819)$

93,762(240,053)

Net liability arising from defined
benefit obligation¥ (22,090)¥ (7,597)$ (146,291)(5) The components of net periodic benefit costs for the years ended March 31, 2024 and 2023,
were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial (gains) losses
Amortization of prior service cost
Increase of retirement benefit
obligation resulting from change
from the simplified method
Net periodic benefit costs calculatedusing the simplified method¥ 2,649
888(1,400)(355)
123¥ 2,542784(1,295)31(1)$ 17,543
5,881(9,272)(2,351)
815

26

369

172

922

1,093

6,106

Net periodic benefit costs¥ 2,853¥ 3,523$ 18,894(6) Amounts recognized in other comprehensive income (before income tax effect) in respect ofdefined retirement benefit plans for the years ended March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023
Prior service cost
Actuarial losses

¥

Total

¥ 14,729- 24 -(688)
15,417¥

Thousands of
U.S. Dollars
2024

1
120

$ (4,556)
102,099¥ 121$ 97,543

(7) Amounts recognized in accumulated other comprehensive income (before income tax effect) in
respect of defined retirement benefit plans as of March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Unrecognized prior service cost
Unrecognized actuarial losses

¥

(696)
23,645

¥

(7)
8,226

$ (4,609)
156,589

Total¥ 22,949¥ 8,219$ 151,980(8) Plan assetsa.

Components of plan assets
Plan assets as of March 31, 2024 and 2023, consisted of the following:

b.

2024

2023

Equity investments
Debt investments
General account asset
Others

61 %
26
11
2

50 %
24
14
12

Total

100 %

100 %

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 ofreturn which are expected currently and in the future from the various components of theplan assets.

(9) Assumptions used for the years ended March 31, 2024 and 2023, were set forth as follows:

Discount rate
Expected rate of return on plan assets

2024

2023

1.0 %
1.5

1.0 %
1.5

The expected compensation increase rate for the years ended March 31, 2024 and 2023, isbased on the age-specific compensation increase index as of March 31, 2020.
(10) Defined contribution pension plans
The Company and certain domestic and overseas subsidiaries paid costs for defined
contribution pension plans of ¥1,145 million ($7,583 thousand) and ¥992 million, respectively,
for the years ended March 31, 2024 and 2023.

- 25 -

11.

EQUITYJapanese companies are subject to the Companies Act of Japan (the "Companies Act"). The
significant provisions in the Companies Act that affect financial 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, forcompanies 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 of service of thedirectors being prescribed as one year rather than the normal two-year term by its articles ofincorporation, 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 of incorporation.
However, the Company does not meet all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) toshareholders subject to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of
Directors if the articles of incorporation of the company 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 the shareholders.

b.

Increases/Decreases and Transfer of Common Stock, Reserve, and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated asa legal reserve (a component of retained earnings) or as additional paid-in capital (a componentof 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 capitaland legal reserve may be reversed without limitation. The Companies Act also provides that
common stock, legal reserve, additional paid-in capital, other capital surplus, and retained
earnings can be transferred among the accounts within equity under certain conditions upon
resolution of the shareholders.

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of suchtreasury stock by resolution of the Board of Directors. The amount of treasury stock purchased
cannot exceed the amount available for distribution to the shareholders, which is determined by aspecific formula. Under the Companies Act, stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides that companies can purchase bothtreasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights arepresented as a separate component of equity or deducted directly from stock acquisition rights.

- 26 -

12.

REVENUE RECOGNITION(1) Disaggregation of Revenue
Revenues from contracts with customers on a disaggregated basis for the years ended March 31, 2024 and 2023, were as follows:

AnalyticalandMeasuring
Instruments

Millions of Yen
2024
Reportable Segment
MedicalSystemsandIndustrial
Aircraft
Equipment
Machinery
Equipment

Japan
U.S.A.
EuropeChina
Other Asian countries
Other¥ 127,179
33,561
38,86474,74745,621
18,285¥ 34,374
10,419
4,785
5,686
7,280
9,759

¥ 26,398
8,547
4,679
19,344
6,101
313

Total

¥ 338,257¥ 72,303¥ 65,382

AnalyticalandMeasuring
Instruments

Millions of Yen
2023
Reportable Segment
MedicalSystemsandIndustrial
Aircraft
Equipment
Machinery
Equipment

Japan
U.S.A.
EuropeChina
Other Asian countries
Other¥ 121,138
32,78832,687
74,10339,135
14,818¥ 40,601
10,337
4,258
4,947
7,049
8,684

¥ 26,818
8,267
4,173
17,663
5,833
228

Total

¥ 314,669¥ 75,876¥ 62,982

Total

Other

Total

¥ 21,160
7,265
581
82
322
55

¥ 209,111
59,792
48,90999,85959,32428,412¥ 6,483¥ 215,594
59,792
48,90999,85959,32928,412¥ 29,465¥ 505,407¥ 6,488¥ 511,895

Total

Other

Total

¥ 17,847
5,291
566
35
180
67

¥ 206,404
56,683
41,68496,74852,197
23,797¥ 4,721¥ 211,125
56,683
41,68496,74852,203
23,797¥ 23,986¥ 477,513¥ 4,727¥ 482,240

Total

Other

Total
$ 1,427,774
395,974
323,901
661,318
392,907
188,159

5

6

AnalyticalandMeasuring
Instruments

Thousands of U.S. Dollars
2024
Reportable Segment
MedicalSystemsandIndustrial
Aircraft
Equipment
Machinery
Equipment

Japan
U.S.A.
EuropeChina
Other Asian countries
Other$ 842,245
222,258
257,377
495,013302,126
121,093$ 227,642
69,00031,68937,656
48,21264,629$ 174,821
56,60330,987
128,106
40,4042,073$ 140,132
48,113
3,848
543
2,132
364

$ 1,384,840
395,974
323,901
661,318
392,874
188,159$ 42,934

Total$ 2,240,112$ 478,828$ 432,994$ 195,132$ 3,347,066$ 42,967- 27 -

33$ 3,390,033

(2) Basic Information to Understand Revenues from Contracts with Customers
The Group's business consists of the Analytical and Measuring Instruments Business, Medical
Systems and Equipment Business, Industrial Machinery Business, Aircraft Equipment Business,
and Other Business. All of the businesses engage in the sale of products and provision ofservices.
Information on contracts and performance obligations, as well as information on the point at
which performance obligations are satisfied, are described in Note 2, "Summary of Significant
Accounting Policies—s. Revenue Recognition."
Revenue from the sale of products and the provision of services is measured at the transaction
price of the contract with the customer less variable consideration such as discounts. Revenue isrecognized on a net basis if the Group acts as an agent to provide goods or services tocustomers.
Consideration for the transaction is received mainly within one year after the fulfillment of theperformance obligation and does not include significant financial factors.
(3) Contract Balances
Receivables from contract with customers, contract assets and contract liabilities at the
beginning and end of the years ended March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023
Receivables from contracts with customers:
Balance at beginning of year
Balance at end of year
Contract assets:
Balance at beginning of year
Balance at end of year
Contract liabilities:
Balance at beginning of year
Balance at end of year

Thousands of
U.S. Dollars
2024¥ 130,966
144,134¥ 121,484
130,966$ 867,325
954,530

277
675

447
277

1,834
4,470

50,15850,22240,34850,158332,172
332,596

The contract assets primarily relate to the Group's rights to consideration for performanceobligations transferred but not billed at the reporting date. The contract assets are transferred toreceivables when the rights for the payments become unconditional.
The contract liabilities primarily relate to the consideration received from customers in advance ofsatisfaction of performance obligations. The contract liabilities are reclassified to revenue when
the Group satisfies the performance obligations based on the contract.
Of the revenues recognized in the consolidated statement of income for the years ended March
31, 2024 and 2023, ¥31,362 million ($207,695 thousand) and ¥30,369 million was included in thebalance of contract liabilities on April 1, 2023 and 2022, respectively.

- 28 -

(4) Transaction Prices Allocated to Remaining Performance Obligations
The following table shows the summary of the transaction prices allocated to remaining
performance obligations that are unsatisfied as of March 31, 2024 and 2023:

Millions of Yen
2024
2023

13.

Thousands of
U.S. Dollars
2024

Within one year
After one year

¥ 184,186
37,730¥ 175,909
31,845$ 1,219,775
249,868

Total¥ 221,916¥ 207,754$ 1,469,643

RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to cost of sales and selling, general and administrative
expenses were ¥12,298 million ($81,444 thousand) and ¥11,031 million for the years ended March
31, 2024 and 2023, respectively.

14.

INSURANCE CLAIM INCOME
The Group recorded insurance claims related to a fire incident that occurred at Shimadzu U.S.A.
Manufacturing, Inc., a consolidated overseas subsidiary, in September 2021.

15.

LOSS ON LIQUIDATION OF BUSINESSIn connection with the partial liquidation of the aeronautical equipment business of Shimadzu
Precision Instruments, Inc., a consolidated foreign subsidiary, expenses related to the disposal of
assets related to the business to be liquidated were recorded as loss on liquidation of business.

16.

LOSS ON SPECIAL INVESTIGATIONThe Group recorded loss on special investigation such as investigation costs and compensation tocustomers related to improper conduct in connection with the maintenance and inspection of X-ray
equipment at its domestic consolidated subsidiary, Shimadzu Medical Systems Corporation.

17.

INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes
which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 30.5% for
the years ended March 31, 2024 and 2023.

- 29 -

The tax effects of significant temporary differences and tax loss carryforwards which resulted indeferred tax assets and liabilities as of March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Deferred tax assets:
Unrealized profit eliminated from inventories
Liability for retirement benefits
Accrued bonuses
Depreciation
Loss on devaluation of inventories
Enterprise taxes
Allowance for doubtful receivables
Tax loss carryforwards
Loss on impairment of long-lived assets
Other
Total
Less valuation allowance¥ 6,501
4,111
3,777
2,963
1,601
653
503
178
136
5,071
25,494(859)¥ 5,852
4,034
3,760
2,419
1,451
642
514
270
136
4,972
24,050(892)$ 43,053
27,22525,013
19,623
10,603
4,325
3,331
1,179
901
33,581
168,834(5,688)

Total deferred tax assets¥ 24,635¥ 23,158$ 163,146¥ 5,802
3,638

¥

291
2,546

$ 38,424
24,093

3,086
817
1,074

3,745
891
953

20,437
5,411
7,112

Total deferred tax liabilities¥ 14,417¥ 8,426$ 95,477

Net deferred tax assets¥ 10,946¥ 15,693$ 72,490

Net deferred tax liabilities (included in otherlong-term liabilities)

¥

¥

$

Deferred tax liabilities:
Asset for retirement benefits
Unrealized gain on available-for-sale securities
Gain on securities contributed to employee
retirement benefit trust
Valuation difference on business combination
Other

728

961

4,821

The above net deferred tax assets and liabilities represent the aggregate amounts of each individual
taxpayer's net deferred tax assets or liabilities.
(Change in Presentation)"Asset for retirement benefits" included with "Other—Deferred tax liabilities" in the previous
consolidated fiscal year has been separately presented from this consolidated fiscal year due toincreased materiality.
In order to reflect the change in presentation, reclassification of the previous consolidated fiscal year
has been made accordingly.
As a result, "Other—Deferred tax liabilities" of ¥1,244 million presented in the consolidated financial
statements for the previous consolidated fiscal year has been reclassified as "Asset for retirement
benefits" of ¥291 million and "Other" of ¥953 million.

- 30 -

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, 2024,with the corresponding figures for the year ended March 31, 2023, is as follows:
2024

2023

Normal effective statutory tax rate
Expenses not permanently deductible for income tax purposes
Per capita inhabitant tax
Valuation allowance
Tax credits for wage increase and productivity improvement
Difference in subsidiaries' tax rates
Tax credit for research and development costs
Other—net

30.5 %
0.5
0.2
(0.0)
(1.3)
(1.3)
(3.8)
1.1

30.5 %
0.3
0.2
0.0
(0.6)
(1.2)
(2.5)
(0.2)

Actual effective tax rate

25.9 %

26.5 %(Change in Presentation)"Tax credits for wage increase and productivity improvement" included with "Other—net" in theprevious consolidated fiscal year has been separately presented from this consolidated fiscal year
due to increased materiality.
In order to reflect the change in presentation, reclassification of the previous consolidated fiscal year
has been made accordingly.
As a result, "Other—net" presented in the consolidated financial statements for the previous
consolidated fiscal year has been reclassified as "Tax credits for wage increase and productivity
improvement" and "Other—net."
18.

LEASES
LesseeThe Group leases certain office space, computer equipment and other assets.
Total rental expenses for the years ended March 31, 2024 and 2023, were ¥7,801 million($51,662 thousand) and ¥6,383 million, respectively. Future minimum payments under noncancelable
operating leases as of March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Due within one year
Due after one year

¥ 1,084
13,611¥ 1,169
14,887$ 7,179
90,139Total¥ 14,695¥ 16,056$ 97,318

Note: Lease transactions recorded on consolidated balance sheet under IFRS 16 and Topic 842
issued by the Financial Accounting Standards Board are not included in above information.

- 31 -

LessorFuture lease income under noncancelable operating leases as of March 31, 2024 and 2023, was asfollows:

Millions of Yen
2024
2023

19.

Thousands of
U.S. Dollars
2024

Due within one year
Due after one year

¥ 27
69

¥ 23
7

$ 179
457

Total

¥ 96

¥ 30

$ 636

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments such as loans from banks, bonds, and commercial paper.
Cash surpluses, if any, are invested in low-risk financial assets such as deposits. Derivatives areused, not for speculative purposes, but to manage exposure to financial risks as described in (2)below.
(2) Nature and Extent of Risks Arising from Financial Instruments and Risk Management for
Financial Instruments
Receivables, such as trade notes and trade accounts, are exposed to customer credit risk. Suchcustomer credit risk is managed by administering the term and balance according to the Group's
policies and by monitoring indications of deterioration of the financial condition of customers.
Although receivables in foreign currencies are exposed to the market risk of fluctuation in foreign
currency exchange rates, the position is hedged by using forward foreign currency contracts.
Marketable securities and Investment securities, mainly equity instruments of customers andsuppliers of the Group, are exposed to the risk of market price fluctuations. The risk is managedby monitoring market values and financial positions of issuers on a regular basis.
Payment terms of payables, such as trade notes and trade accounts, are generally less than one
year. Although payables in foreign currencies are exposed to the market risk of fluctuation inforeign currency exchange rates, those risks are netted against the balance of receivables
denominated in the same foreign currencies as noted above.
Short-term loans and commercial paper are mainly used for operating activities, and long-termloans and bonds are mainly used for investment in property, plant and equipment. A part of suchloans is exposed to market risks of interest rate fluctuation. Although payables and loans are
exposed to liquidity risk, such risk is managed by making monthly cash flow plans.
Please see Note 20 about derivatives.
(3) Fair Values of Financial Instruments
Fair values of financial instruments are included in the following tables. Investments in equity
instruments that do not have a quoted market price in an active market and investment ininvestment partnerships are not included in the following table. The fair values of cash and cash
equivalents, time deposits, trade notes and accounts payable and short-term borrowings are notdisclosed because their maturities are short and the carrying values approximate fair value.

- 32 -

(a) Fair value of financial instruments
Millions of Yen
Unrealized
Gains(Losses)March 31, 2024

Carrying
AmountFair Value

Notes and accounts receivable—trade,and contract assets
Investment securities¥ 144,809
14,585¥ 144,357
14,585¥ (452)

Total¥ 159,394¥ 158,942¥ (452)Derivatives

¥

¥

(94)

(94)

March 31, 2023
Notes and accounts receivable—trade,and contract assets
Marketable securities
Investment securities¥ 131,243
425
11,552¥ 131,132
425
11,552¥ (111)

Total¥ 143,220¥ 143,109¥ (111)

Derivatives

¥

¥

(142)

(142)

March 31, 2024

Thousands of U.S. Dollars
Unrealized
Carrying
Gains
AmountFair Value(Losses)

Notes and accounts receivable—trade,and contract assets
Investment securities$ 959,000
96,589$ 956,007
96,589$ (2,993)

Total$ 1,055,589$ 1,052,596$ (2,993)

Derivatives

$

$

(623)

(623)

(b) Carrying amount of investments in equity instruments that do not have a quoted market pricein an active market

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Investments in equity instruments that do not havea quoted market price in an active market¥ 1,792¥ 1,614$ 11,868

Total¥ 1,792¥ 1,614$ 11,868- 33 -

(c) Carrying amount of investment in investment partnerships

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Investment in investment partnerships

¥ 64

¥ 78

$ 424

Total

¥ 64

¥ 78

$ 424

(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities

Millions of Yen
Due in1 YearDue afteror Less
1 YearMarch 31, 2024

Thousands of
U.S. Dollars
Due in1 YearDue afteror Less
1 YearCash and cash equivalents
Time deposits
Notes and accounts receivable—trade,and contract assets¥ 159,235
6,051
143,481¥ 1,328

950,205$ 8,795

Total¥ 308,767¥ 1,328$ 2,044,814$ 8,795

March 31, 2023

Millions of Yen
Due in1 YearDue afteror Less
1 YearCash and cash equivalents
Time deposits
Notes and accounts receivable—trade,and contract assets
Marketable securities
Bonds¥ 153,735
5,112

Total

¥ 290,162

130,890425$ 1,054,536
40,073

¥ 353
300
¥ 653

Please see Note 9 for annual maturities of long-term debt.
Financial Instruments Categorized by Fair Value Hierarchy
The fair value of financial instruments is categorized into the following three levels, depending on theobservability and significance of the inputs used in making fair value measurements:
Level 1: Fair values measured by using quoted prices (unadjusted) in active markets for identicalassets or liabilities
Level 2: Fair values measured by using inputs other than quoted prices included within Level 1 thatare observable for the assets or liabilities, either directly or indirectly
Level 3: Fair values measured by using unobservable inputs for the assets or liabilities
If multiple inputs are used that have a significant impact on the measurement of fair value, fair value
is categorized at the lowest level in the fair value measurement among the levels to which each ofthese inputs belongs.

- 34 -

(1) The financial assets and liabilities measured at the fair values in the consolidated balance sheet
Millions of Yen
Level 2
Level 3

March 31, 2024

Level 1

Total

Investment securities:
Available-for-sale securities:
Stock¥ 14,585¥ 14,585

Total assets¥ 14,585¥ 14,585

Derivative transactions:
Forward exchange contracts

¥ 94

¥

94

Total liabilities

¥ 94

¥

94

¥ 239

¥ 11,313
239

¥ 239

¥ 11,552

Derivative transactions:
Forward exchange contracts

¥ 142

¥

142

Total liabilities

¥ 142

¥

142

March 31, 2023
Investment securities:
Available-for-sale securities:
Stock
Bond

¥ 11,313

Total assets¥ 11,313

Thousands of U.S. Dollars
Level 2
Level 3

March 31, 2024

Level 1

Total

Investment securities:
Available-for-sale securities:
Stock$ 96,589$ 96,589

Total assets$ 96,589$ 96,589

Derivative transactions:
Forward exchange contracts

$ 623

$

623

Total liabilities

$ 623

$

623

(2) The financial assets and liabilities not measured at the fair values in the consolidated balance
sheet

March 31, 2024

Level 1Millions of Yen
Level 2
Level 3

Total

Notes and accounts receivable—trade,and contract assets¥ 144,357¥ 144,357

Total assets¥ 144,357¥ 144,357- 35 -

March 31, 2023

Millions of Yen
Level 2
Level 3

Level 1

Total

Notes and accounts receivable—trade,and contract assets¥ 131,132¥ 131,132

Total assets¥ 131,132¥ 131,132

March 31, 2024

Level 1Thousands of U.S. Dollars
Level 2
Level 3

Total

Notes and accounts receivable—trade,and contract assets$ 956,007$ 956,007

Total assets$ 956,007$ 956,007

The description of investment trusts is omitted because the treatment of Paragraph 24-3 of the
Guidance on Application of Market Value Accounting Standards is applied. The carrying amountof the investment trusts for the year ended March 31, 2023, was ¥425 million. And no carrying
amount was recognized for the year ended March 31, 2024.
The following is a description of valuation methodologies and inputs used for measurement of thefair value of assets and liabilities:
Investment Securities
The fair values of listed equity securities are measured at the quoted market prices. Since listed
equity securities are traded in active markets, the fair values of listed equity securities are
categorized as Level 1. The fair value of the bonds held by the Group is categorized as Level 2
as they are not quoted in active markets.
Derivatives
The fair value of forward exchange contracts is estimated based on quotes from financial
institutions, and is categorized as Level 2.
Notes and Accounts Receivable—Trade, and Contract Assets
The fair values of trade receivables are measured at the amount to be received at maturity
discounted at the Group-assumed corporate discount rate, and are categorized as Level 2.
20.

DERIVATIVESThe Group enters into foreign currency forward contracts to hedge exchange rate risk associated withcertain assets and liabilities denominated in foreign currencies. All derivative transactions are enteredinto to hedge foreign currency exposures incorporated within the Group's business. Accordingly,
market risk in these derivatives is generally offset by opposite movements in the value of hedged
assets or liabilities, except for credit-related market risk.
Because the counterparties to these derivatives are limited to major international financial institutions,
the Group does not anticipate any losses arising from credit risk.
Derivative transactions are operated by the finance and accounting department with internal policies
under the supervision of the Chief Financial Officer.
The contract or notional amounts of derivatives which are shown in the following table do not
represent the amounts exchanged by the parties and do not measure the Company's exposure tocredit or market risk.

- 36 -

The Company has the following derivative contracts outstanding as of March 31, 2024 and 2023:
2024

Forward exchange
contracts:
Selling USD
Selling Euro
Buying USD

Forward exchange
contracts:
Selling USD
Selling Euro
Buying USD
21.

2023

In
Thousands
Contract or
Notional
AmountMillions of Yen
Unrealized
Fair
Gains
Value
(Losses)

USD 21,500
EUR 14,300
USD 1,497¥ (60)(37)
3

In
Thousands
Contract or
Notional
Amount2024
Thousands of
U.S. Dollars
Unrealized
Fair
Gains
Value
(Losses)

USD 21,500
EUR 14,300
USD 1,497$ (397)(245)
20¥ (60)(37)
3

In
Thousands
Contract or
Notional
AmountMillions of Yen
Unrealized
Fair
Gains
Value
(Losses)

USD 59,500
EUR 12,500¥ (98)(43)¥ (98)(43)$ (397)(245)
20

OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2024 and 2023, wereas follows:

Millions of Yen
2024
2023
Unrealized gain (loss) on available-for-sale securities:
Gains (losses) arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Foreign currency translation adjustments:
Adjustments arising during the year
Total
Defined retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Total other comprehensive income- 37 -

Thousands of
U.S. Dollars
2024¥ 3,733(266)
3,467(1,093)¥ (772)
(103)
(875)
234

$ 24,722(1,762)
22,960(7,238)¥ 2,374¥ (641)$ 15,722¥ 15,785¥ 5,564$ 104,536¥ 15,785¥ 5,564$ 104,536¥ 15,111(382)
14,729(4,491)

¥

86
34
120
(49)

$ 100,073(2,530)97,543(29,741)¥ 10,238¥

71$ 67,802¥ 28,397¥ 4,994$ 188,060

22.

NET INCOME PER SHARE
Basic net income per share ("EPS") for the years ended March 31, 2024 and 2023, were as follows:Year Ended March 31, 2024
Basic EPS—Net income available tocommon shareholders

Millionsof YenNet Income
Attributableto Owners of
the Parent

Thousandsof Shares¥ 57,038

294,709¥ 193.54¥ 52,049

294,666¥ 176.64

Yen

WeightedAverage
SharesU.S. Dollars

EPS$ 1.28Year Ended March 31, 2023
Basic EPS—Net income available tocommon shareholders

Diluted EPS for the years ended March 31, 2024 and 2023, is not disclosed because no potentiallydilutive securities are outstanding.
23.

SEGMENT INFORMATION
Under ASBJ Statement No. 17, "Accounting Standard for Disclosures about Segments of anEnterprise and Related Information" and ASBJ Guidance No. 20, "Guidance on Accounting Standard
for Disclosures about Segments of an Enterprise and Related Information," an entity is required toreport financial and descriptive information about its reportable segments. Reportable segments areoperating segments or aggregations of operating segments that meet specified criteria. Operating
segments are components of an entity about which separate financial information is available and forwhich such information is evaluated regularly by the chief operating decision-maker in deciding how
to allocate resources and in assessing performance. Generally, segment information is required to bereported on the same basis as is used internally for evaluating operating segment performance anddeciding how to allocate resources to operating segments.
(1) Description of Reportable Segments
The Group's reportable segments are those for which separate financial information is available
and regular evaluation by the Company's management is being performed in order to decide how
resources are allocated among the Group. As such, the Group's reportable segments consist of
Analytical and Measuring Instruments, Medical Systems and Equipment, Aircraft Equipment, andIndustrial Machinery.
(2) Methods of Measurement for the Amounts of Sales, Profit (Loss), Assets, and Other Items
for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in
Note 2, "Summary of Significant Accounting Policies."- 38 -

(3) Information about Sales, Profit (Loss), Assets, and Other Items
Millions of Yen
2024
Reportable Segment
AnalyticalandMeasuring
Instruments

MedicalSystems andEquipment

Industrial
Machinery

Aircraft
Equipment

Total

Other

Total

Reconciliations

Sales:
Sales to external customers
Intersegment sales or transfers¥ 338,257
51¥ 72,30319¥ 65,382
79¥ 29,465
35¥ 505,407
184¥ 6,488
2,658¥ 511,895
2,842¥ (2,842)

Total¥ 338,308¥ 72,322¥ 65,461¥ 29,500¥ 505,591¥ 9,146¥ 514,737¥ (2,842)¥ 511,895

Segment profit
Segment assets
Other:
Depreciation
Increase in property, plant and equipment and intangible assets¥ 57,488
351,315¥ 4,779
66,088¥ 7,176
66,843¥ 3,715
45,596¥ 73,158
529,842¥ 1,045
9,218¥ 74,203
539,060¥ (1,449)
134,902¥ 72,754
673,962

12,787
15,916

2,535
3,136

2,299
2,085

643
1,036

18,264
22,173287
307

18,551
22,480Consolidated¥ 511,895

18,551
22,480Millions of Yen
2023
Reportable Segment
AnalyticalandMeasuring
Instruments

MedicalSystems andEquipment

Industrial
Machinery

Aircraft
Equipment

Total

Other

Total

Reconciliations

Sales:
Sales to external customers
Intersegment sales or transfers¥ 314,669
55¥ 75,87647¥ 62,982
67¥ 23,986
37¥ 477,513
206¥ 4,7272,424¥ 482,240
2,630¥ (2,630)

Total¥ 314,724¥ 75,923¥ 63,049¥ 24,023¥ 477,719¥ 7,151¥ 484,870¥ (2,630)¥ 482,240

Segment profit
Segment assets
Other:
Depreciation
Increase in property, plant and equipment and intangible assets¥ 57,615
313,355¥ 5,539
60,793¥ 5,423
61,817¥ 1,390
39,044¥ 69,967
475,009

¥ 597
9,685

¥ 70,564
484,694¥ (2,345)
134,175¥ 68,219
618,869

11,745
14,900

2,521
2,645

2,200
3,603

647
1,015

17,11322,163411
350

17,52422,513

Consolidated¥ 482,240

17,52422,513Thousands of U.S. Dollars
2024
Reportable Segment
AnalyticalandMeasuring
Instruments

MedicalSystems andEquipment

Industrial
Machinery

Aircraft
Equipment

Total

Other

Total

Reconciliations

Sales:
Sales to external customers
Intersegment sales or transfers$ 2,240,112
338$ 478,828
126$ 432,994
523$ 195,132
232$ 3,347,066
1,219$ 42,967
17,603$ 3,390,033
18,822$ (18,822)

Total$ 2,240,450$ 478,954$ 433,517$ 195,364$ 3,348,285$ 60,570$ 3,408,855$ (18,822)$ 3,390,033

Segment profit
Segment assets
Other:
Depreciation
Increase in property, plant and equipment and intangible assets$ 380,715
2,326,589$ 31,649
437,669$ 47,523
442,669$ 24,603
301,960$ 484,490
3,508,887$ 6,92161,046$ 491,411
3,569,933$ (9,596)
893,391$ 481,815
4,463,324

84,682
105,404

16,78820,76815,22513,808

4,258
6,861

120,953
146,841

1,901
2,033

122,854
148,874- 39 -

Consolidated$ 3,390,033

122,854
148,874

Note: "Reconciliations" of segment profit include eliminations of intersegment transactions of¥1,449 million ($9,596 thousand) and ¥2,345 million as of March 31, 2024 and 2023,
respectively. "Reconciliations" of segment assets include eliminations of intersegment
receivables of ¥2,114 million ($14,000 thousand) and ¥1,718 million, and unallocatedcorporate assets of ¥137,016 million ($907,391 thousand) and ¥135,893 million as ofMarch 31, 2024 and 2023, respectively, consisting principally of working funds andinvesting funds held by the Company and assets attributed to the Company's
administration headquarters.
Segment profit has been adjusted to operating income in the consolidated statement ofincome.
(4) The Geographical Segments of the Group
a.

Sales
Millions of Yen
2024

Japan

UnitedStates ofAmerica

EuropeChina

Other Asia

Other

Total

¥ 215,594¥ 59,792¥ 48,909¥ 99,859¥ 59,329¥ 28,412¥ 511,895

Millions of Yen
2023

Japan

UnitedStates ofAmerica

EuropeChina

Other Asia

Other

Total

¥ 211,125¥ 56,683¥ 41,684¥ 96,748¥ 52,203¥ 23,797¥ 482,240

Thousands of U.S. Dollars
2024

b.

Japan

UnitedStates ofAmerica

EuropeChina

Other Asia

Other

Total

$ 1,427,774$ 395,974$ 323,901$ 661,318$ 392,907$ 188,159$ 3,390,033

Property, plant and equipment
Millions of Yen

Japan

2024
Foreign
Countries

Total¥ 88,095¥ 30,469¥ 118,564

Thousands of U.S. Dollars
2024
Foreign
Japan
Countries
Total$ 583,411$ 201,781$ 785,192- 40 -

Japan

2023
Foreign
Countries

Total¥ 87,405¥ 25,587¥ 112,992

(5) Amortization and the Balance of Goodwill of the Group
Millions of Yen

Amortization of goodwill
Goodwill as of March 31, 2024

AnalyticalandMeasuring
Instruments

MedicalSystems andEquipment

Industrial
Machinery

¥ 437
4,257

¥ 61
622

¥ 58
341

Aircraft
Equipment

Other

Elimination/
Corporate

Total
¥ 556
5,220

Millions of Yen

Amortization of goodwill
Goodwill as of March 31, 2023

AnalyticalandMeasuring
Instruments

MedicalSystems andEquipment

Industrial
Machinery

¥ 274
3,981

¥ 57
605

¥ 53
362

Aircraft
Equipment

Other

Elimination/
Corporate

Total
¥ 384
4,948

Thousands of U.S. Dollars

Amortization of goodwill
Goodwill as of March 31, 2024

AnalyticalandMeasuring
Instruments

MedicalSystems andEquipment

Industrial
Machinery$ 2,894
28,193

$ 404
4,119

$ 384
2,258

Aircraft
Equipment

Other

Elimination/
Corporate

Total$ 3,682
34,570(6) Impairment Loss on Assets of the GroupNo impairment loss was recognized for the years ended March 31, 2024 and 2023.
24.

SUBSEQUENT EVENT
Appropriation of Retained Earnings
The following appropriation of retained earnings as of March 31, 2024, was approved at the Company's shareholders' meeting held on June 26, 2024:

Year-end cash dividends, ¥36 ($0.24) per share

Millions of Yen

Thousands of
U.S. Dollars¥ 10,613$ 70,285

Business Combination by Acquisition
At the Board of Directors' meeting held on March 28, 2024, the Company resolved that Shimadzu Scientific Instruments, Inc. ("SSI"), a consolidated subsidiary of theCompany, would acquire all shares of Zef Scientific, Inc. ("Zef") and make it a subsidiary of the Company. The Company also concluded a stock transfer agreement on
March 29, 2024, and acquired the shares on April 1, 2024.
a.

Outline of the business combination(1) Name of acquired company and its business outline
Name of the acquired company: Zef Scientific, Inc.
Business outline:

Maintenance services for liquid chromatograph ("LC") andliquid chromatograph mass spectrometer ("LC-MS")- 41 -

(2) Major reason for the business combination
Zef specializes in multi-vendor services for LC and LC-MS. We have personnel and aservice network capable of maintaining equipment from a wide range of manufacturers andare highly regarded in the after-sales service market for pharmaceutical companies. With theacquisition of Zef, SSI will streamline its customers' operations with a one-stop service
regardless of manufacturer. In addition, by making it easier for pharmaceutical companies tomanage the maintenance history of their in-house analytical equipment, it contributes toensuring quality in the manufacturing process.
(3) Date of business combination
April 1, 2024
(4) Legal form of business combination
Share acquisition in consideration for cash(5) Name of the company after the combination
No changes(6) Ratio of voting rights acquired
100.00%(7) Basis for determining the acquirer
It is based on the fact that the Group acquired 100% of voting rights by means of shareacquisition in consideration for cash.
b.

Acquisition cost of the acquired company and related details of each class of consideration
Millions of U.S. Dollarsc.

Consideration for acquisition—Cash$ 44

Acquisition cost

$ 44

Major acquisition-related costs
To be determinedd.

Amount of goodwill incurred, reasons for the goodwill incurred, and the method and period ofamortization
To be determinede.

The assets acquired and the liabilities assumed at the acquisition date
To be determined

Acquisition of Treasury Shares
At the extraordinary meeting of the Board of Directors held on May 10, 2024, the Company resolvedto acquire its own shares of treasury stock pursuant to Article 156 of the Companies Act, as applied
according to Article 165, Paragraph 3 of the same Act.

- 42 -

a.

Reason for acquisition of treasury stock
To enhance shareholder returns and improve capital efficiencyb.

Details of the acquisition of treasury stock(1) Class of stock subject to the acquisition
Common stock(2) Total number of shares repurchased
Up to 12,500,000 shares (4.2% of issued and outstanding number of shares, excluding
treasury stock)(3) Total value of shares acquired
Up to ¥25,000 million ($165,562 thousand)(4) Period of acquisition
From May 13, 2024 through March 31, 2025
(5) Acquisition method
Market purchase on the Tokyo Stock Exchange******- 43 -