Daido Metal Co., Ltd.
and Consolidated Subsidiaries
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2024,
AND
INDEPENDENT AUDITOR’S REPORTDaido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETMARCH 31, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 16)
Time deposits (Note 16)
Receivables (Notes 13 and 16):
Trade notes
Trade accounts
Non-consolidated subsidiaries and associated companies
Other
Inventories (Note 5)
Other current assets
Allowance for doubtful accounts
Total current assets¥

24,586
6,370¥

18,955
5,153$

162,824
42,187

4,753
27,539392
622
37,3522,019(84)
103,549

4,141
25,827349
890
37,0091,812(81)94,05531,476
182,376
2,597
4,119
247,367
13,372(562)
685,756

10,522
41,328120,201
9,039
5,455
3,371
189,916(133,051)
56,865

10,182
39,189112,543
8,378
1,970
5,163
177,425(121,904)
55,521

69,684
273,696
796,033
59,85936,12622,324
1,257,722(881,131)
376,591

4,462
2,861
311
4,070
5,314
8,213
1,685
1,083
(43)
27,956

3,572
2,531
281
4,629
5,880
4,098
1,564
1,233
(47)
23,741

29,551
18,9492,063
26,95735,19554,388
11,1607,157(286)
185,134¥ 188,370¥ 173,317$ 1,247,481

PROPERTY, PLANT AND EQUIPMENT:Land (Notes 7 and 8)
Buildings and structures (Notes 6, 7 and 8)
Machinery and equipment (Notes 6 and 8)
Furniture and fixtures (Note 8)
Lease assets
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 4 and 16)
Investments in non-consolidated subsidiaries and associated companies
Long-term loans
Goodwill
Other intangible assets
Asset for employees' retirement benefits (Note 9)
Deferred tax assets (Note 12)
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
TOTAL ASSETS

2023(Continued)

7

Daido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETMARCH 31, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
LIABILITIES AND EQUITYCURRENT LIABILITIES:
Short-term bank loans (Note 8)
Current portion of long-term debt (Notes 8 and 16)
Payables:Trade notes and accounts
Non-consolidated subsidiaries and associated companies
Acquisitions of property, plant and equipment
Other
Income taxes payable
Contract liabilities (Note 13)
Accrued expenses
Other current liabilities
Total current liabilities

¥

2023

32,487
8,408¥

31,976
6,980$

215,148
55,681

21,027
33
1,269
2,804
1,488
90
4,693
2,170
74,46919,273
17
1,281
2,601
593
83
4,215
1,704
68,723

139,253
216
8,401
18,5739,855
596
31,08014,366493,169

22,486
7,797
83
59
18
4,356
380
35,17922,978
7,574
59
49
18
3,085
377
34,140148,916
51,635552
389
117
28,845
2,521
232,975

8,413
13,11436,5508,413
13,114
34,171

55,71986,850242,051

(291)

(310)

(1,928)

1,616
6,419
2,999
68,8209,902
78,722

975
4,359
415
61,137
9,317
70,454

10,69942,50819,862455,761
65,576521,337¥ 188,370¥ 173,317$ 1,247,481

LONG-TERM LIABILITIES:Long-term debt (Notes 8 , 11 and 16)
Liability for employees’ retirement benefits (Note 9)
Provision for share-based remuneration
Provision for share-based remuneration for directors
Asset retirement obligations
Deferred tax liabilities (Note 12)
Other long-term liabilities
Total long-term liabilities

CONTINGENT LIABILITIES (Note 18)
EQUITY (Note 10):
Common stock,
Authorized: 80,000,000 shares in 2024 and 2023
Issued: 47,520,253 shares in 2024 and 2023
Capital surplus
Retained earnings
Treasury stock, at cost
385,061 shares in 2024 and 411,152 shares in 2023 (Note11)
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans
Total
Non-controlling interests
Total equity
TOTAL LIABILITIES AND EQUITY
See notes to consolidated financial statements.

(Concluded)8

Daido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED MARCH 31, 2024
Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
NET SALES (Note 13)
COST OF SALES (Note 14)2023¥ 128,738
97,434¥ 115,480
89,312$ 852,570
645,258

31,304

26,168207,31225,21923,343167,016

6,085

2,825

40,296OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Foreign exchange gain
Equity in earnings of non-consolidated subsidiaries and associated companies
Loss on sales and disposals of property, plant and equipment
Grants income
Gain on sales of securities (Note 4)
Impairment loss on long-lived assets (Note 6)
Other—net
Other expenses—net

476(1,633)
322
235
(62)
258
211
145
(48)

205
(980)
388
175
(34)
183
(2,015)148(1,930)

3,153(10,813)
2,133
1,559
(410)
1,709
1,395
955
(319)

INCOME BEFORE INCOME TAXES

6,037

895

39,977

INCOME TAX EXPENSE (Note 12):Current
Deferred
Total income taxes

2,689
(99)
2,590

1,751
684
2,435

17,805(659)
17,146NET INCOME (LOSS)

3,447(1,540)22,831

878

669

5,818

2,569

¥ (2,209)

Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 14 and 15)
Operating income

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTSNET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF THE PARENT¥Yen
PER SHARE OF COMMON STOCK (Notes 2v. and 20):
Basic net income (loss)
Cash dividends applicable to the year¥

See notes to consolidated financial statements.

9

54.50
15.00

$

17,013

U.S. Dollars¥ (47.05)
12.00

$

0.36
0.10

Daido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED MARCH 31, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
NET INCOME (LOSS)¥OTHER COMPREHENSIVE INCOME (Note 19):
Unrealized gain (loss) on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined retirement benefit plans
Share of other comprehensive income in nonconsolidated subsidiaries and associated companies
Total other comprehensive income
COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent
Non-controlling interests

2023
3,447

¥

(1,540)

667
2,414
2,604
227
5,912
¥

¥

See notes to consolidated financial statements.

10

$

(3)
3,918
547
176
4,638

9,359

¥

3,098

7,854
1,505

¥

1,734
1,364

22,831

4,417
15,992
17,2461,500
39,155$61,986$52,014
9,972

Daido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYYEAR ENDED MARCH 31, 2024

Thousands
Number of
Shares ofCommon Stock
Outstanding
Balance at April 1, 2022
Net loss attributable to owners of the parent
Cash dividends, interim and year-end, ¥25 per share
Decrease in treasury stock
Net changes in the year
Balance at March 31, 2023
Net income attributable to owners of the parent
Cash dividends, interim and year-end, ¥4 per share
Decrease in treasury stock
Net changes in the year
Balance at March 31, 2024

Millions of Yen

Accumulated Other Comprehensive Income
CommonStock46,777

CapitalSurplus¥ 8,413Retained
Earnings¥ 13,114

TreasuryStock¥ 37,567(2,209)(1,187)

Unrealized Gain on
Available-for-Sale
Securities

Foreign Currency
Translation
Adjustments

Defined Retirement
Benefit Plans

¥ 981

¥ 907

¥ (83)

(6)
975

3,452
4,359

498
415

641
¥ 1,616

2,060¥ 6,419

2,584¥ 2,999¥ (560)332

Total¥ 60,339(2,209)(1,187)250
3,944
61,137
2,569
(190)
19
5,285
¥ 68,820250

47,1098,413

13,114

34,171
2,569
(190)

(310)

26

19

47,135¥ 8,413¥ 13,114¥ 36,550¥ (291)

Non-Controlling
Interests

Total
Equity¥ 8,356¥ 68,695(2,209)(1,187)250
4,905
70,454
2,569
(190)
19
5,870
¥ 78,722

961
9,317

585
¥ 9,902

Thousands of U.S. Dollars (Note 1)

Accumulated Other Comprehensive Income

Balance at March 31, 2023
Net income attributable to owners of the parent
Cash dividends, interim and year-end, $0.03 per share
Decrease in treasury stock
Net changes in the year
Balance at March 31, 2024

CommonStockCapitalSurplus$$55,71986,850Retained
Earnings$

TreasuryStock

226,297
17,013(1,259)Unrealized Gain on
Available-for-Sale
Securities$ (2,057)$

Foreign Currency
Translation
Adjustments

6,454

$

28,868

4,245
10,699$13,64042,508

Defined Retirement
Benefit Plans
$

Total

2,747

$

17,115
19,862$

129$

55,719$86,850$242,051$ (1,928)

See notes to consolidated financial statements.

11

$

$

404,878
17,013(1,259)129
35,000455,761

Non-Controlling
Interests

Total
Equity$61,705$$

3,871
65,576$

466,583
17,013(1,259)129
38,871
521,337

Daido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWSYEAR ENDED MARCH 31, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Gain on sales of securities
Impairment loss on long-lived assets
Amortization of goodwill
Foreign exchange losses
Loss on sales and disposals of property, plant and equipment, net
Equity in earnings of non-consolidated subsidiaries and associated companies
Changes in assets and liabilities:
Increase in notes and accounts receivable
Decrease in allowance for doubtful accounts
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable
Decrease in liability for employees' retirement benefits
Increase in provision for share-based remuneration
Increase in provision for share-based remuneration for directors(Decrease) increase in provision for loss on guarantees
Other—net
Total adjustments¥

Net cash provided by operating activities

INVESTING ACTIVITIES:
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Acquisition of investment securities
Purchases of intangible assets
Payments into time deposits
Proceeds from withdrawal of time deposits
Other—net
Net cash used in investing activities
FORWARD

¥

2023
6,037

¥

895

$

39,977(1,878)
9,595
(211)
777
1,020
62
(235)

(2,568)
9,191
2,015
750
274
34
(175)

(12,440)
63,544(1,395)
5,147
6,756
410
(1,559)(1,134)
(4)
920
745
(272)
24
10
(162)
1,361
10,618(1,878)(58)(1,780)(1,579)
(230)
10
8
18
77
4,109

(7,513)
(26)
6,091
4,937
(1,798)161
65(1,072)
9,016
70,324

16,655

5,004

110,301(7,606)
13
(35)
(378)
(6,307)5,574
436(8,303)(4,764)
80
(453)
(402)
(5,857)5,191(140)(6,345)(50,373)88(233)(2,503)(41,770)
36,914
2,886(54,991)

8,352¥(1,341)$

55,310(Continued)

12

Daido Metal Co., Ltd. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWSYEAR ENDED MARCH 31, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
FORWARD

¥

2023
8,352

¥

(1,341)$

55,310FINANCING ACTIVITIES:Net (decrease) increase in short-term bank loans
Proceeds from long-term bank loans
Repayment of long-term bank loans
Proceeds from treasury stock, net
Dividends paid, including payment to non-controlling interests
Repayment of finance lease obligations
Net cash (used in) provided by financing activities(1,998)7,650(6,732)
1
(767)
(654)
(2,500)

3,222
7,769
(8,003)168(1,649)(717)
790(13,229)
50,662(44,583)
4(5,077)(4,331)(16,554)

FOREIGN CURRENCY TRANSLATIONADJUSTMENTS TO CASH AND CASH EQUIVALENTS

(221)

638

(1,462)NET INCREASE IN CASH AND CASH EQUIVALENTS

5,631

87

37,294

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

18,955

18,868125,530¥ 24,586¥ 18,955$ 162,824

CASH AND CASH EQUIVALENTS AT END OF YEAR

See notes to consolidated financial statements.
(Concluded)

13

Daido Metal Co., Ltd., 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 have been prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its related accounting regulations and in accordance withaccounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards. (“IFRS”).
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated 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 toconform to the classifications used in 2024.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Daido Metal Co.,
Ltd. (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, theapproximate rate of exchange at March 31, 2024. Such translations should not be construed as representations that theJapanese yen amounts could be converted into U.S. dollars at that or any other rate.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements as of March 31, 2024, include the accounts of the Company
and its 32 (33 in 2023) significant subsidiaries (together, the “Group”).
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated, and those companies over which the Group has the ability to
exercise significant influence are accounted for by the equity method.
Investments in one (one in 2023) non-consolidated subsidiary and three (three in 2023) associated companies areaccounted for by the equity method.
Investments in the remaining two (two in 2023) non-consolidated subsidiaries are stated at cost. If the equity methodof accounting had been applied to investments in these subsidiaries, the effect on the accompanying consolidated
financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized
profits included in assets resulting from transactions within the Group have been eliminated.
The differences between the cost and underlying net equity of investments in consolidated subsidiaries at acquisition
are included in goodwill and are amortized by the straight-line method within 14 years.
Twenty (twenty in 2023) consolidated subsidiaries, and one (one in 2023) non-consolidated subsidiary accounted forby the equity method have fiscal year-ends differing from that of the Company as of March 31, 2024. The accounts ofthe subsidiaries that have different fiscal periods have been adjusted for significant transactions to properly reflect their
14

financial positions at March 31, 2024 and 2023, and their results of operations for the years ended March 31, 2024
and 2023.
b.

Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements—
Under Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force (“PITF”) No. 18, “Practical
Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial
Statements,” the accounting policies and procedures applied to a parent company and its subsidiaries for similartransactions and events under similar circumstances should in principle be unified for the preparation of theconsolidated financial statements. However, financial statements prepared by foreign subsidiaries in accordance witheither IFRS or generally accepted accounting principles in the United States of America ( “U.S. GAAP”) may be
used for the consolidation process, except for the following items that should be adjusted in the consolidation process
so that net income is accounted for 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 been recorded in equity throughother comprehensive income; (c) expensing capitalized research and development (“R&D”) costs;(d) cancellation of the fair value model of accounting for property, plant and equipment and investment properties andincorporation of the cost model of accounting, and (e) recoding a gain or loss through profit or loss on the sale of aninvestment 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 an investment in an equity
instrument, where a foreign subsidiary elects to present in other comprehensive income subsequent changes in the fairvalue of an investment in an equity instrument.

c.

Unification of Accounting Policies Applied to Foreign Associated Companies for the Equity Method—ASBJ
Statement No. 16, "Accounting Standard for Equity Method of Accounting for Investments," requires adjustments to
be made to conform associates’ accounting policies for similar transactions and events under similar circumstances tothose of the parent company when the associates’ financial statements are used in applying the equity method, unless
it is impracticable to determine such adjustments. In addition, financial statements prepared by foreign associatedcompanies in accordance with either IFRS or U.S. GAAP may be used in applying the equity method if the following
items are adjusted so that net income is accounted for in accordance with Japanese GAAP, unless they are notmaterial: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has beenrecorded in equity through other comprehensive income; (c) expensing capitalized costs of R&D; (d) cancellation of
the fair value model of accounting for property, plant and equipment and investment properties and incorporation of
the cost model of accounting; and (e) recoding 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 an investment in an equity instrument,
where a foreign associate elects to present in other comprehensive income subsequent changes in the fair value of aninvestment in an equity instrument.

d.

Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash and exposed toinsignificant risk of changes in value. Cash equivalents include time deposits, all of which mature or become due
within three months of the date of acquisition.

e.

Inventories—Inventories are stated at the lower of cost, determined mainly by the periodic average method formerchandise, finished products, work in process, and raw materials and mainly by the moving-average method forsupplies, or net selling value.

f.

Allowance for doubtful accounts—The allowance for doubtful accounts is stated in amounts considered to beappropriate based on the Group’s past credit loss experiences and an evaluation of potential losses in the receivables
outstanding.
15

g.

Investment Securities—Investment securities are classified and accounted for, depending on management's intent, asavailable-for-sale securities and are reported at fair value, with unrealized gains and losses, net of applicable taxes,
reported in a separate component of equity.
Non-marketable securities are stated at cost determined by the moving-average method. For other-than-temporary
declines in fair value, investment securities are reduced to their fair values by a charge to income.

h.

Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plantand equipment of the Company and 5 domestic consolidated subsidiaries are computed by the declining-balancemethod while the straight-line method is applied to buildings acquired after April 1, 1998, and building improvements
and structures acquired on or after April 1, 2016. Depreciation of property, plant and equipment of other subsidiaries
is computed by the straight-line method.
Leased properties under finance leases that do not transfer ownership of the leased property to the lessee and right-ofuse-assets are depreciated by the straight-line method over the lease period. Depreciation of leased properties thattransfer ownership to the lessee are computed by the same method of the Group’s owned properties.
The range of useful lives is principally from 3 to 60 years for buildings and structures, and from 3 to 20 years formachinery and equipment.

i.

Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes incircumstance indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss isrecognized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss
would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount, whichis the higher of the discounted cash flows from the continued use and eventual disposition of the asset or the net
selling price at disposition.

j.

Other Intangible Assets—Other intangible assets are amortized by the straight-line method. Leased assets underfinance leases that do not transfer ownership of the leased assets to the lessee are depreciated by the straight-line
method over the lease period.

k.

Accrued Expenses—Accrued expenses include liabilities for indemnification of defective products, accrued bonuses
to employees, and accrued bonuses to directors and Audit & Supervisory Board members. A liability forindemnification of defective products represents a provision for estimated compensation costs in the future related tothe quality of products.
Accrued bonuses to employees represent a provision for the estimated amount of payment corresponding to the fiscal
year. Accrued bonuses to directors and Audit & Supervisory Board members are accrued at year-end to which suchbonuses are attributable.

l.

Retirement and Pension Plans—The Company has unfunded and funded pension plans covering substantially all of
their employees (excluding executive officers) and a retirement benefit plan for executive officers.
Two domestic consolidated subsidiaries have funded pension plans and 5 domestic consolidated subsidiaries have
unfunded retirement benefit plans. Certain overseas consolidated subsidiaries have unfunded and funded retirement
benefit plans and a plan for medical benefits for retired employees.
The Company accounted for the liability for retirement benefits based on the projected benefit obligations and fairvalue of pension plan assets at the consolidated balance sheet date. The projected benefit obligations are attributed to16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 other comprehensive income) after adjusting for tax effects
and are recognized in profit or loss over 14 years, no longer than the expected average remaining service period of theemployees. The discount rate is determined using different discount rates reflecting the estimated timing of the benefit
payments. In order to prepare for the retirement benefits to executive officers, the amount required to be paid at theend of the year in accordance with the internal rules is provided.
m.

Stock Ownership Plan—In accordance with PITF No. 30, "Practical Solution on Transactions of Delivering theCompany's Own Stock to Employees etc. through Trusts," upon transfer of treasury stock to the employee
stockownership trust (the "Trust") by the Company, any difference between the book value and fair value of thetreasury stock is recorded in capital surplus. At year-end, the Company records (1) the Company stock held by theTrust as treasury stock in equity, (2) all other assets and liabilities of the Trust on a line-by-line basis, and (3) aliability/asset for the net of (i) any gain or loss on delivery of the stock by the Trust to the employee shareholding
association, (ii) dividends received from the Company for the stock held by the Trust, and (iii) any expenses relating
to the Trust. In order to prepare for the loss on guarantee at the termination of the Trust, an estimated amount of loss
is provided.

n.

Provision for Share-based Remuneration―In order to prepare for the share-based remuneration for directors andexecutive officers, the estimated benefit amount of stock based on the points allocated to is provided.

o.

Revenue Recognition－The Group recognizes revenue in an amount that reflects the consideration to which it
expects to be entitled in exchange for satisfying performance obligations to transfer the goods, or services promisedin contracts with customers. The nature of performance obligation for each of the Group’s major industry and whensuch obligations are satisfied are as follows:
Manufacturing of bearing products is the principal business line of the Group. Revenue from the sale of suchproducts is recognized at the time the products are delivered to customers and the control of the goods is transferredto the customers. Revenue is measured in an amount determined by subtracting discounts, rebates, and productreturns from a consideration promised in a contract with the customer. As the consideration is usually paid within
one year after delivering products to customers, the consideration promised does not include any significant
financial components.

p.

Research and Development Costs—Research and development costs are charged to income as incurred.

q.

Leases—Finance lease transactions are capitalized by recognizing lease assets and lease obligations in the
consolidated balance sheet. For overseas subsidiaries, all leases are capitalized as assets and liabilities in accordancewith IFRS 16 and ASC 842.All other leases are accounted for as operating leases.

r.

Income Taxes—The provision for current income taxes is computed based on pretax income or loss included in the
consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax
bases of assets and liabilities. Deferred tax assets and liabilities are measured by applying the currently enacted
income tax rates to the temporary differences.

s.

Foreign Currency Transactions—All short-term and long-term monetary receivables and payables denominated inforeign currencies are translated into Japanese yen at the exchange rates at the consolidated balance sheet date. The
foreign exchange gains and losses from translation are recognized in the consolidated statement of income to theextent that they are not hedged by forward exchange contracts.

17

t.

Foreign Currency Financial Statements—The balance sheet accounts and revenue and expense accounts of theconsolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet
date except for equity, which is translated at the historical rate. Differences arising from such translation are shown as“Foreign currency translation adjustments” in a separate component of equity.

u.

Derivative Financial Instruments—The Group uses derivative financial instruments to manage their exposures tofluctuations in foreign exchange. Foreign exchange forward contracts are utilized by the Group to reduce foreign
currency exchange risks. The Group does not enter into derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions are classified and accounted for as follows: (a) all
derivatives are recognized as either assets or liabilities and measured at fair value; and gains or losses on derivativetransactions are recognized in the income statement and (b) for derivatives used for hedging purposes, if derivatives
qualify for hedge accounting because of high correlation and effectiveness between the hedging instruments and thehedged items, gains or losses on derivatives are deferred until maturity of the hedged transactions.
The foreign currency forward contracts employed to hedge foreign exchange exposures for sales and purchases aremeasured at the fair value and the unrealized gains/losses are recognized in income.

v.

Per Share Information—Basic net income per share is computed by dividing net income available to commonshareholders by the weighted-average number of common shares outstanding for the period, retroactively adjusted forstock splits.
Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted
into common stock. Diluted net income per share of common stock assumes full conversion of the outstanding
convertible notes and bonds at the beginning of the year (or at the time of issuance), with an applicable adjustment for
related interest expense, net of tax, and full exercise of outstanding warrants. Diluted net income per share is notpresented as the Group does not have potential dilutive common shares..
Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicableto the year, including dividends to be paid after the end of the year.

18

3.

SIGNIFICANT ACCOUNTING ESTIMATE
Valuation of intangible assets including goodwill(1) Carrying amounts

Goodwill
Customer -related assets

Millions of Yen
2024
2023
¥ 4,070¥ 4,629
3,008
3,123

Thousands of
U.S. Dollars
2024$26,957
19,920The breakdown of goodwill is ¥886 million ($5,872 thousand)) for Iino Holding Ltd. and its subsidiaries (hereinafterreferred to as the “Iino Group”) and ¥ 3,184 million ($21,085 thousand) for ATA Casting Technology Japan Co., Ltd.
(hereinafter referred to as the “ATA Group”)), and the breakdown of customer-related assets are ¥ 2,286 million($ 15,140 thousand) for Iino Group and ¥722 million ($4,780 thousand) for ATA Group at March 31, 2024.
(2) Information on the significant accounting estimate
To strengthen product offerings to existing customers of the Group, and diversify and expand products and businesses
for the Group over the medium to long term, the Group acquired Iino Group and ATA Group in the fiscal year ended
March 2017, categorizing both groups as part of the “Parts for Automobiles Other than Bearings” segment andrecording intangible assets including goodwill in the consolidated balance sheets.
The related assets are subject to the analysis of impairment indicators, and an impairment test is carried out for thegroup of assets where goodwill has been allocated, assuming that there is an indication of impairment. The amounts
allocated to intangible assets, including goodwill, are material.
The carrying amount of non-current assets including goodwill is ¥ 6,605 million ($ 43,743 thousand) for the Iino Groupand ¥ 8,329 million ($ 55,157 thousand) for the ATA Group at March 31, 2024. The impairment tests show that the total
amount of future cash flow before discount exceeds the carrying amount of non-current assets including goodwill, andtherefore, no impairment losses were recognized for both groups.
The cash flows before discount are calculated based on the figures presented in the business plans of both groups.
Among these figures, net sales are obtained based on the production plan of product unit numbers with a higher orderprobability, considering estimated orders supported by the current forecasted receipts from customers.
In addition, as for expenses, reflection of price changes in major raw materials to selling prices in response to market
fluctuations, cost reduction effects through cutting labor expenses, promoting in-house manufacturing, and improving
the efficiency of logistics are partially reflected in the plans.
When the assumptions used in these estimates need to be revised due to changes in automobile production forecasts,
including the cost reduction status, impairment losses may be recognized for the following fiscal year.

19Valuation of tangible assets for DM Casting Technology (Thailand) CO., LTD.
(1) Carrying amounts

Tangible fix assets
Impairment losses

Millions of Yen
2024
2023
¥ 1,991¥ 1,708
2,015

Thousands of
U.S. Dollars
2024$13,184-(2) Information on the significant accounting estimate
The Company established DM Casting Technology (Thailand) CO., LTD. in 2018 to manufacture aluminum die
cast parts for electric vehicles and allocated it to the “Parts for Automobiles Other than Bearings” segment.
The related assets are subject to the analysis of impairment indicators, and an impairment test is carried out. If there isindication of impairment, the Company measures determines if the recoverable amount of the asset group is less thanits carrying amount, and if it is, the Company reduces the carrying amount to the recoverable amount and recognizes
an impairment loss.
Since the start of mass production of its products, the Company has experienced a number of production defects forcertain products and has shown indication of impairment as its operating profit has been negative due to risinginspection costs to prevent the outflow of defective products and transportation costs by air to meet deadlines. When
recognizing and measuring impairment losses, the recoverable amount is determined based on the value in use,which is based on figures in the Company's business plan. The sales in the business plan are calculated based on the
projected vehicle production plan assuming high order probability that take into consideration estimated orders
supported by the current forecasted receipts from customers, while costs are determined assuming a reduced defectrate and elimination of air transportation.
If the assumptions used in these estimates need to be revised due to changes in projected vehicle production volumes
or progress in cost improvement, the amount of impairment loss may change in the following fiscal year.

20

4.

SECURITIES(a) Investment securities
Investment securities at March 31, 2024 and 2023, consisted of only equity securities.
The costs and aggregate fair values of investment securities at March 31, 2024 and 2023, were as follows:

March 31, 2024
Available-for-sale:
Equity securities

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

March 31, 2024
Available-for-sale:
Equity securities

Millions of Yen
Unrealized
Unrealized
Gains
Losses

Cost
¥

1,608

¥

¥

8

¥ 4,394

Millions of Yen
Unrealized
Unrealized
Gains
Losses

Cost
¥

2,794

Fair
Value

1,680

¥

1,858

¥

34

Cost

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses$ 10,651$

18,502

$

51

Fair
Value
¥

3,504

Fair
Value
$

29,102(b) Available-for-sale securities which were sold
The proceeds, realized gains and realized losses of the available-for-sale securities which were sold during the year ended
March 31, 2024, was as follows (The available-for-sale securities which were sold during the year ended March 31, 2023,
are omitted since it was not material.):March 31, 2024
Available-for-sale:
Equity securities

March 31, 2024
Available-for-sale:
Equity securities
5.

Millions of Yen
Realized
Gains

Proceeds
¥

321

¥

211

Thousands of U.S. Dollars
Realized
Gains

Proceeds$2,125INVENTORIESInventories at March 31, 2024 and 2023, consisted of the following:

21$1,395

Realized
Losses¥-Realized
Losses$-Millions of Yen
2024¥ 5,549
11,268
11,7208,815¥ 37,352

Merchandise
Finished products
Work in process
Raw materials and supplies
Total

2023
¥ 6,355
10,61812,925
7,111¥ 37,009

Thousands of
U.S. Dollars
2024$ 36,748
74,62077,61858,381$ 247,367(Reversal of write down) write-down of inventories was recognized ¥165 million ($1,094 thousand) and ¥(35) million forthe years ended March 31, 2024 and 2023, respectively.
6.

LONG-LIVED ASSETSThe Group reviewed its long-lived assets for impairment as of March 31, 2024 and 2023.
No impairment loss was recognized in 2024.
In 2023, the Group recognized impairment losses totaling ¥2,015 million as other expenses for the “Parts for Automobiles
Other Than Bearings” segment of the plant in Thailand.
Due to continuing operating losses of that operations in Thailand, the carrying amounts of the relevant assets were written
down to the recoverable amounts for the year ended March 31, 2023.
The recoverable amount of the assets was measured at its value in use, and the discount rate used for computation of thepresent value of future cash flows was 12.19%.

7.

INVESTMENT PROPERTYThe Group owns certain rental properties, such as office buildings and land, in Tokyo and other areas. The net of rental
income for those rental properties for the years ended March 31, 2024 and 2023, was ¥ 69 million ($456 thousand) and¥66 million, respectively, and were included in the “NET SALES” and “COST OF SALES” line items of theaccompanying consolidated statement of operations.
In addition, the carrying amounts, changes in such balances, and market prices of such properties were as follows:

April 1, 2023
¥

1,305

April 1, 2022
¥

1,287

April 1, 2023
$

8,643

Millions of Yen
Carrying Amount (1)Increase/(Decrease) (2)March 31, 2024
¥

(197)

¥

1,108

Millions of Yen
Carrying Amount (1)Increase/(Decrease) (2)March 31, 2023
¥

18

¥

1,305

Thousands of U.S. Dollars
Carrying Amount (1)Increase/(Decrease) (2)March 31, 2024$

(1,305)$

7,338

Fair Value (3)March 31, 2024
¥

2,319

Fair Value (3)March 31, 2023
¥

3,049

Fair Value (3)March 31, 2024
$ 15,357

Notes:
1. The carrying amount recognized in the consolidated balance sheet is net of accumulated depreciation andaccumulated impairment losses, if any.
22

2.

3.

8.

Among the changes in the mid-term, the main increase from the previous consolidated fiscal year is due to the impact
of exchange rate fluctuations of ¥20 million . The main decrease in the current consolidated fiscal year is due to thetransfer resulting from the determination of the use purpose of idle land of ¥188 million ($1,245 thousand).
The fair value of properties as of March 31, 2024 and 2023 is measured by the Group in accordance with the Real
Estate Appraisal Standard.

SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Short-term bank loans at March 31, 2024 and 2023, consisted of notes to banks and bank overdrafts. The average annualinterest rates applicable to the short-term bank loans were 3.9% and 3.1% at March 31, 2024 and 2023, respectively.
The Group contracted bank overdraft agreements with 23 banks for efficient fund raising at March 31, 2024 (22 banks in2023). The Group was able to withdraw the maximum amount of ¥29,850 million ($197,679 thousand) and ¥30,369
million at March 31, 2024 and 2023, respectively. The outstanding balance of bank overdrafts at March 31, 2024 and 2023,
was ¥3,250 million ($21,523 thousand) and ¥5,564 million, respectively.

Long-term debt at March 31, 2024 and 2023, consisted of the following:Thousands of
U.S. Dollars
2024

Millions of Yen
2024

2023

Loans from banks and other financial
institutions, with weighted-average interest
rates of 0.6% in 2024 and 0.7% in 2023
Lease obligations, with weighted-averageinterest rates of 2.0% in 2024 and 1.9% in
2023¥ 28,827¥ 27,635$ 190,911

2,067

2,323

13,686

Total

30,89429,958204,597(8,408)(6,980)(55,681)¥ 22,486¥ 22,978$ 148,916

Less current portionLong-term debt, less current portion

Annual maturities of long-term debt at March 31, 2024, were as follows:
Years Ending
Thousands ofMarch 31
Millions of Yen
U.S. Dollars
2025¥8,408$55,6812026
4,930
32,6482027
6,664
44,1332028
8,606
57,0012029
2,275
15,0642030 and thereafter
11
70
Total
¥30,894$204,597
The carrying amounts of assets pledged as collateral for short-term bank loans of ¥3,148 million ($20,849 thousand) andlong-term debt (including current portion) of ¥1,055 million ($6,985 thousand) at March 31, 2024, were as follows:
Thousands ofMillions of Yen
U.S. Dollars
Land¥ 1,933$ 12,800
507
3,358
Buildings and structures—net of accumulated depreciation

23

Machinery and equipment—net of accumulated depreciation
Furniture and fixtures—net of accumulated depreciation
Total

1,433
0
¥ 3,8739,489
0$ 25,647

The carrying amounts of assets pledged as factory foundation mortgage collateral in the above assets for short-term bankloans of ¥1,950 million ($12,914 thousand) and long-term debt (including current portion) of ¥900 million ($5,960
thousand) at March 31, 2024, were as follows:
Thousands ofMillions of Yen
U.S. Dollars
Land¥ 1,783$ 11,806
7
47
Buildings and structures—net of accumulated depreciation
Machinery and equipment―net of accumulated depreciation
00
0
0Other property, plant and equipment—net of accumulated
depreciation
Total¥ 1,790$ 11,853
9.

RETIREMENT AND PENSION PLANS
The Company has a lump-sum retirement benefit plan and a non-contributory funded pension plan for employees. In
conjunction with these benefit plans, the Company contributed securities to a trust. The Company implemented a defined
contribution pension plan in October 2012, by which a portion of the lump-sum retirement benefit plan was terminated.
Two domestic subsidiaries have funded defined benefit pension plans. Five domestic subsidiaries have lump-sum
retirement benefit plans. Certain overseas subsidiaries have defined benefit pension plans or defined contribution pension
plans, and one overseas consolidated subsidiary provides a postretirement medical care plan to its employees.

(c) Defined Benefit Pension Plans(1) The changes in the defined benefit obligation for the years ended March 31, 2024 and 2023, were as follows:
Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Balance at beginning of year
Service cost
Interest cost
Actuarial gains
Benefits paid
Others¥ 19,364
1,054
147
(636)
(795)
276

¥

19,994
1,035
108(1,070)(856)
153$ 128,235
6,979
971(4,213)(5,264)
1,835

Balance at end of year

¥ 19,410¥

19,364$128,543(2) The changes in plan assets for the years ended March 31, 2024 and 2023, were as follows:

Balance at beginning of year
Expected return on plan assets

Millions of Yen
2024
2023
¥ 15,888¥ 15,682
338
290

Actuarial gains (losses)
Contributions from the employer

3,094
1,027
24

(516)
1,005

Thousands of
U.S. Dollars
2024$105,218
2,237
20,493
6,802

Benefits paid
OthersBalance at end of year

(568)
47

(661)
88

(3,760)306¥ 19,826¥ 15,888$ 131,296(3) Reconciliation between the liability recorded in the consolidated balance sheet and the balances of the defined
benefit obligation and plan assets at March 31, 2024 and 2023, were as follows:
Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Funded defined benefit obligation¥ 13,292¥ 13,350$ 88,029
Plan assets(19,826)(15,888)(131,296)(6,534)(2,538)(43,267)
Unfunded defined benefit obligation
6,118
6,014
40,514
Net liability arising from defined benefit
obligation¥ (416)¥ 3,476$ (2,753)(4) The components of net periodic benefit costs for the years ended March 31, 2024 and 2023, were as follows:
Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Service cost
¥ 1,054¥ 1,035$ 6,979
Interest cost
147
108
971
Expected return on plan assets
(338)
(290)
(2,237)
Recognized actuarial losses
14
176
90
Other
7
(47)
45
Net periodic benefit costs
¥ 884
¥
982
$ 5,848(5) Amounts recognized in other comprehensive income (before income taxes) in respect of defined retirement benefit
plans for the years ended March 31, 2024 and 2023, were as follows:
Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Actuarial gains/losses¥ 3,740¥731$ 24,767
Total¥ 3,740¥731$ 24,767(6) 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:
Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Unrecognized actuarial gains/losses¥ (4,331)¥(606)$(28,686)
Unrecognized prior service cost
1
9
Total
¥ (4,330)¥(606)$(28,677)25

(7) Plan assets
a. Components of plan assets
Plan assets consisted of the following:
2024
19%
46
13
7
15
100%

Debt investments
Equity investments
Assets in an insurer's general accountCash and cash equivalents
Others
Total

2023
21%
38
15
7
19
100%

The retirement benefit trust for the Company’s defined retirement benefit plan accounted for 27% (21% in 2023)
of total plan assets.
b.

Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return which are
expected currently and in the future from the various components of the plan assets.

(8) Assumptions used for the years ended March 31, 2024 and 2023, were set forth as follows:
2024
2023
Discount rate
1.0%
0.7%
Expected rate of return on plan assets
2.0%
1.9%

(d) Defined Contribution Pension Plans
The Group’s contributions to defined contribution pension plan funds for the years ended March 31, 2024 and2023, were ¥424 million ($2,805 thousand) and ¥401 million, respectively.

26

10. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the
Companies Act that impact the financial and accounting matters of the Group 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. For companies that meet certain criteria including (1) having
a Board of Directors, (2) having independent auditors, (3) having an Audit & Supervisory Board, and (4) the term ofservice of the directors being prescribed as one year rather than 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 cannot do so
because it does not meet all the above criteria. The Companies Act permits companies to distribute dividends-in-kind(non-cash assets) to shareholders 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,
but the amount of net assets after dividends must be maintained at no less than ¥3 million.
(b) Increases/Decreases and Transfer of Common Stock, Reserve, and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (acomponent of retained earnings) or as additional paid-in capital (a component of capital surplus), depending on theequity account charged upon the payment of such dividends, until the aggregate amount of legal reserve andadditional paid-in capital equals 25% of the common stock. Under the Companies Act, the total amount of additional
paid-in capital and legal reserve may 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 such treasury stock byresolution 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 a specific formula. Under the Companies Act, stock acquisitionrights are presented as a separate component of equity. The Companies Act also provides that companies can purchaseboth treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented as aseparate component of equity or deducted directly from stock acquisition rights.
11. STOCK OWNERSHIP PLAN(a) Granting Company Stock to Employees through a Trust
In order to incentivize employees to achieve the medium-term business plan goals and raise corporate value inmedium to long term, and to provide an employee welfare program, the Company introduced an E-Ship® TrustType Employee Stock Purchase Incentive Plan (hereinafter “the Incentive Plan”). Please note that the Incentive Plan
has ended at the end of April 30, 2023.
The Incentive Plan is available to the Group employees who participate in the Daido Metal Employee Stock
Purchase Plan (hereinafter, “ESPP”). Under the Incentive Plan, the Company will set up the Daido Metal ESPP Trust(hereinafter, “ESPP Trust”), with a trust bank. The ESPP Trust will purchase the Company’s shares upfront for the27amount ESPP will likely purchase over a certain period, financing the transaction with bank loans. Afterwards, the
ESPP Trust will sell the Company’s shares to the ESPP for its periodical purchases. At the end of the trust period, if
the ESPP Trust asset balance resulted in a positive position due to the accumulated gains on the Company’s shares,
such residual assets will be distributed to members of the ESPP who meet beneficiary eligibility criteria. As theCompany has guaranteed ESPP Trust for its bank borrowing in financing its purchase of the Company’s shares, any
shortfalls in repayment at the end of Trust period, due to accumulated loss at ESPP Trust caused by a drop in the
Company’s share price, will be repaid by the Company as a guarantor.
Residual shares in the ESPP Trust have been recorded as treasury stock under net assets at the book value in the trust(excluding ancillary expenses). ESPP trust held the treasury stock and long-term debt, which were included in the
consolidated balance sheet of the Company as follows:

Millions of Yen
2024
2023
¥ ¥
1
(1,600)¥ ¥ 177

Treasury stock(shares)Long-term debt

Thousands of
U.S. Dollars
2024
$
$
-

Please note that there is no current balance of treasury stock and long-term debt as the current ESPP has ended.
(b) Performance-liked Stock-based Remuneration Scheme for Directors and Executive Officers
The Company introduced a new performance-linked stock-based remuneration (“the Scheme”) for Directors(excluding Outside Directors, the same applying hereinafter) and Executive Officers (excluding a Director
concurrently serving as an Executive Officer, the same applying hereinafter) in order to incentivize Directors andExecutive Officers to improve the business performance of the Company and to enhance the corporate value in themedium to long term.
The Board Benefit Trust (“the BBT”) was created with contribution from the Company. The BBT purchases theCompany’s shares, and the Company gives eligible Directors and Executive Officers the shares based on
accumulated number of points conferred in accordance with their individual rank and their achievement in meeting
goals etc., as set forth in the Share Grant Rule. Beneficiaries of the BBT shall be those who serve as Directors andExecutive Officers during the period. The Company’s shares are granted to each of the Directors and Executive
Officers when they retire from their position.
Residual shares in the BBT have been recorded as treasury stock under net assets at the book value in the trust(excluding ancillary expenses). BBT held treasury stock, which was included in the balance sheet of the Company,
are as follows:

Millions of Yen
2024
2023
¥ 290
¥ 309
(382,859)(407,820)

Treasury stock(shares)28

Thousands of
U.S. Dollars
2024$ 1,920

12. INCOME TAXESThe Company is subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective
statutory tax rate of approximately 30.6% for the years ended March 31, 2024 and 2023.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets andliabilities at March 31, 2024 and 2023, are as follows:

Millions of Yen
2024
2023
Deferred tax assets:
Tax loss carryforwards
Write-down of inventories
Depreciation
Impairment of long-lived assets
Write-down of golf membership
Allowance for doubtful accounts
Accrued bonuses
Liability for indemnification of defective products
Liability for employees’ retirement benefits
Long-term accounts payable
Unrealized gains on intercompany transactions
Other
Total of tax loss carryforwards and temporary differences
Less valuation allowance for tax loss carryforwards
Less valuation allowance for temporary differences
Total valuation allowance
Deferred tax assets
Deferred tax liabilities:
Deferred gain on property, plant and equipment
Unrealized gain on available-for-sale securities
Asset for employees’ retirement benefits
Unrealized gain on net assets of consolidated subsidiaries
Undistributed earnings of foreign subsidiaries
Customer - related assets
Other
Deferred tax liabilities
Net deferred tax liabilities

¥

2,760
1,029
773
563
17
30
571
28
2,687
110
917
535
10,020(2,678)(1,268)(3,946)
6,074¥

Thousands of
U.S. Dollars
2024

2,320
989
702
555
17
23
418
28
2,609
80
851
649
9,241
(2,118)(1,391)(3,509)5,732$

18,279
6,815
5,121
3,729
112
197
3,780
183
17,793
731
6,075
3,545
66,360(17,733)(8,397)(26,130)
40,230

1,899
856
2,514
530
936
749
1,261

1,955
528
1,253
524
839
784
1,370

8,745
¥ (2,671)

7,253¥ (1,521)

12,5795,671
16,641
3,511
6,198
4,964
8,351
57,915$ (17,685)

Notes: Valuation allowance increased by ¥437 million ($2,894 thousand) mainly due to increase in tax loss carryforwards
and the related valuation allowances in consolidated subsidiaries.
The expiration of tax loss carryforwards and the related valuation allowances and the resulting net deferred tax assets as ofMarch 31, 2024 and 2023, were as follows:29March 31, 2024

1 Year or
Less

Deferred tax assets relating to
tax loss carryforwards¥

Less valuation allowances for
tax loss carryforwards
Net deferred tax assets relating
to tax loss carryforwards

March 31, 2023
Deferred tax assets relating to
tax loss carryforwards

Millions of Yen
After
After
3 Years
2 Years
throughthrough
4 Years
3 Years

After
1 Yearthrough
2 Years

After
4Yearsthrough
5 Years

After
5 Years

Total

93
(44)

¥ 126
(97)

¥ 183
(183)

¥ 182
(182)

¥ 890
(890)

¥ 1,286(1,282)¥ 2,760(2,678)

49

29

-

-

-

4

82

1 Year or
Less

After
1 Yearthrough
2 Years

¥

¥

94

79

Millions of Yen
After
After
3 Years
2 Years
throughthrough
4 Years
3 Years

After
4Yearsthrough
5 Years

After
5 Years

Total

¥

¥

180

¥ 1,540¥ 2,320

176

¥

251

Less valuation allowances for
tax loss carryforwards

(68)

(43)

(87)

(212)

(180)

(1,528)(2,118)Net deferred tax assets relating
to tax loss carryforwards

26

36

89

39

-

12

202

March 31, 2024
Deferred tax assets relating to
tax loss carryforwards

1 Year or
Less

Thousands of U.S. Dollars
After
After
After
2 Years
3 Years
4Yearsthroughthroughthrough
3 Years
4 Years
5 Years

After
1 Yearthrough
2 Years

After
5 Years

Total

$ 617

$ 830

$ 1,210$ 1,207$ 5,894$8,521$18,279

Less valuation allowances for
tax loss carryforwards

(291)

(639)

(1,210)(1,207)(5,894)(8,492)(17,733)

Net deferred tax assets relating
to tax loss carryforwards

326

191

-

-

-

29

546

Note: Deferred tax assets of ¥82 million ($546 thousand) and ¥202 million are recognized related to tax loss carryforwards of¥2,760 million ($ 18,279 thousand) and ¥2,320 million at March 31, 2024 and 2023, respectively. For the tax loss carryforwards
recognized on the deferred tax assets, valuation allowance related to the portion of tax loss carryforwards is determined to berealizable based on the estimated future taxable income.
A reconciliation between the effective statutory tax rates and the actual effective tax rates reflected in the accompanying
consolidated statement of operations for the years ended March 31, 2024 and 2023, is as follows:30

Effective statutory tax rate
Expenses not deductible for income tax purposes
Income not recognized for tax purposes
Per capita tax
Effects of differences in income tax rates applicable to foreignsubsidiaries
Amortization of goodwill not recognized for tax purposes
Equity in earnings of a non-consolidated subsidiary and an
associated company
Net change in valuation allowance
Tax credit relating to R&D and other
Effects of change in statutory tax rate
Other—net
Actual effective tax rate

31

2024
30.6%
5.4
(0.6)
0.5
2.7
3.9
(1.2)
3.9
(4.4)
0.9
1.1
42.8%

2023
30.6%
30.4
(4.7)
3.3
32.1
25.6
(6.0)
173.3
(15.5)
2.1
0.7
271.9%

13. REVENUE(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:
Millions of Yen
2024
Reportable Segment
Automotive
Non-automotive
Parts for Automobiles
Automotive
Non-Motor
Bearings
Other than Bearings
Motor Bearings
Bearings

Total

Other (*)

Total

Geographical areas:Japan¥ 27,800¥ 9,183¥10,196¥4,834¥ 52,013¥1,090¥53,103

North America

8,269

2,430

1,020

4,353

16,072

68

16,140Asia

21,435

4,938

1,750

11,44439,567

146

39,713

Europe

8,385

2,403

3,451

1

14,24073

14,313

Other

3,618

885

194

667

5,364

19

5,383

¥ 69,507¥ 19,839¥ 16,611¥ 21,299¥ 127,256¥ 1,396¥ 128,652

-

-

-

-

86

86

¥69,507¥ 19,839¥16,611¥127,256¥ 1,482¥ 128,738

Revenues from contracts
with customers
Other revenue
Total¥21,299
Millions of Yen
2023

Reportable Segment
Automotive
Non-Motor
Bearings

Automotive
Motor Bearings

Non-automotive
Bearings

Parts for Automobiles
Other than Bearings

Total

Other (*)

Total

Geographical areas:¥ 26,067¥ 9,273¥ 9,065¥3,806¥ 48,211¥1,076¥49,287

North America

5,893

2,227

1,045

2,598

11,76379

11,842

Asia

20,260

4,858

1,634

10,27537,027

136

37,163

Europe

7,549

2,054

2,879

1

12,48378

12,561

Other

2,877

831

145

679

4,532

10

4,542

¥ 62,646¥ 19,243¥14,768¥17,359¥114,016¥1,379¥115,395

-

-

-

-

-

85

85

¥14,768¥17,359¥114,016¥1,464¥115,480

Japan

Revenues from contracts
with customers
Other revenue
Total¥ 62,646¥ 19,243

32

Thousands of U.S. Dollars
2024
Reportable Segment
Automotive
Non-Motor
Bearings

Automotive
Motor Bearings

Non-automotive
Bearings

Parts for Automobiles
Other than Bearings

Total

Other (*)

Total

Geographical areas:Japan$184,104$60,816$67,521$32,016$344,457$7,217$351,674

North America

54,762

16,0906,757

28,830106,439451

106,890

Asia

141,954

32,705

11,58775,787

262,033969

263,002

Europe55,532

15,91222,853

7

94,304481

94,785

Other

23,959

5,863

1,287

4,420

35,529124

35,653$460,311$131,386$110,005$141,060$842,762$9,242$852,004

-

-

-

-

-

566

566

$460,311$131,386$110,005$141,060$842,762$9,808$852,570

Revenues from contracts
with customers
Other revenue
Total* Other includes electrode sheets for electric double layer capacitors, metallic dry bearings, rotary pumps, and property rental.

33

(2) Basic Information to Understand Revenues from Contracts with Customer
Basic information to understand revenues from contracts with customer is described in Note 2.o. to theconsolidated financial statements.
(3) Contract Balance
Receivables from contract with customers, contract assets and contract liabilities at the beginning and end of the year
are as follows:
Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Receivables from contracts with customers:
Balance at beginning of year
¥ 30,317¥ 7,285$ 200,774
Balance at end of year
32,67430,317
216,387
Contract liabilities:
Balance at beginning of year
¥
83
¥
88
$
547
Balance at end of year
90
83
596
Contract liabilities primarily relate to prepaid payments received in advance of the satisfaction of performanceobligations where the Group sells bearing products to customers. The Group generally records revenue uponcompletion of the delivery of the products. The contractual liability for these prepaid payments received is monetizedin a short period of time. The amount of revenue recognized in the years ended March 31, 2024 and 2023 that was
included in the contract liabilities at the beginning of year is immaterial.
（4）Transaction Prices Allocated to Remaining Performance Obligations
The transaction prices allocated to remaining performance obligations to be satisfied within one year are not presented
since the amount is immaterial.
Consideration arising from the contract with the customer that are not included in the transaction price is immaterial.
14. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥ 2,322 million ($ 15,384 thousand) and ¥ 2,205 million for theyears ended March 31, 2024 and 2023, respectively.

3415. SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
Selling, general, and administrative expenses for the years ended March 31, 2024 and 2023, consisted of the following:Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Fare
¥ 3,537¥ 3,571$ 23,428
Outsourcing commission
1,620
1,471
10,728Provision of allowance for doubtful accounts
11
(47)
72
Executive remuneration
592
620
3,919
Salary allowance
6,073
5,634
40,219Provision for bonuses to employees
490
266
3,242
Provision for bonuses to directors and103
685
Audit & Supervisory Board members
Provision for product warranties
113
77
751
Net periodic retirement benefit cost
420
339
2,784
Welfare expense
1,273
1,249
8,431
Depreciation
1,571
1,543
10,403
Rent costs
1,117
1,093
7,397
Research and development costs
2,262
2,140
14,982
Other
6,037
5,387
39,975
Total¥ 25,219¥ 23,343$ 167,016

16. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments, mainly long-term debt, including bank loans and lease obligations, based on its
capital financing plan. Cash surpluses, if any, are invested in low-risk financial assets. Short-term bank loans are used tofund the Group’ ongoing operations. Derivatives are not used for speculative purposes, but to manage exposure tofinancial risks as described in (2) below.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables, such as trade notes and trade accounts, are exposed to customer credit risk. Receivables in foreign
currencies are exposed to the market risk of fluctuation in foreign currency exchange rates. Investment securities, mainly
equity instruments of customers and suppliers of the Group or held for business alliances, are exposed to the risk ofmarket price fluctuations.
Maturities of bank loans and lease obligations are over a period of up to 7 years after the balance sheet date. A portion ofsuch bank loans and lease obligations is exposed to market risks from changes in variable interest rates.
Derivatives mainly include forward foreign currency contracts which are used to manage exposure to market risks fromchanges in foreign currency exchange rates of receivables and payables, and foreign currency swaps, which are used to
manage exposure to market risks from changes in foreign currency exchange rates of long-term loans from banks.
Please see Note 17 for more details about derivatives.

35

(3) Risk Management for Financial Instruments
Credit Risk Management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay or service debt according to thecontractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include
monitoring of payment terms and balances of major customers by each business administration department to identify
the default risk of customers at an early stage.
As the counterparties to these derivatives are limited to major international financial institutions, the Company does not
anticipate any losses arising from credit risk.
Market Risk Management (Foreign Exchange Risk and Interest Rate Risk)
Investment securities are managed by monitoring market values and the financial position of issuers on a regular basis.
The basic principles for derivative transactions of the Company have been approved by management in accordance with
the Company’s policies which define transaction limits and trading rights. At least once every three months, theresponsible department reports to the Board of Directors on the status of foreign exchange risk management, and risk
measures are being considered. Consolidated subsidiaries also manage derivative transactions in accordance with theGroup’s policies or their own policies.
Liquidity Risk Management
The Group manages liquidity risk by maintaining the cash management plan according to reports from each department.
(4) Fair Value of Financial Instruments
The fair value of financial instruments is based on quoted prices in active markets. If a quoted price is not available, otherrational valuation techniques are used instead. Fair value information for cash and cash equivalents, notes and accounts
receivable, notes and accounts payable, short-term bank loans, and income tax payable is omitted since carrying amountsof them are approximate fair value because of their short maturities. Please see Note 17 for more details on fair values forderivatives.
Millions of Yen
Carrying Amount¥ 4,394¥ 4,394

Fair Value¥ 4,394¥ 4,394

Unrealized
Gains/(Losses)-

Long-term debt, including current portion
Total¥ 30,894¥ 30,894¥ 30,591¥ 30,591¥¥

Derivatives¥¥

March 31, 2024
Investment securities
Total

36

6

6

303
303
-

Millions of Yen
March 31, 2023
Investment securities
Total

Carrying Amount
¥
3,504
¥
3,504

Fair Value
¥
3,504
¥
3,504

Long-term debt, including current portion
Total

¥
¥

29,95829,958¥¥29,71929,719Derivatives

¥

7

¥

7

Unrealized
Gains/(Losses)
¥
¥

239
239
-

Thousands of U.S. Dollars
March 31, 2024
Investment securities
Total
Long-term debt, including current portion
Total

Carrying Amount$
29,102$
29,102

Fair Value$
29,102$
29,102$$

204,597
204,597$$

202,590
202,590

$

37

$

37

Derivatives

Unrealized
Gains/(Losses)$$(2,007)(2,007)

Carrying amount of investments in equity instruments that do not have a quoted market price in an active market
Thousands of
U.S. Dollars

Millions of Yen
2024¥

Unlisted equity instruments

2023
68

¥

2024
68

$

449

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

March 31, 2024
Cash and cash equivalents
Time deposits
Receivables
Total

Millions of Yen
Due after 5
Due in 1 Year orDue after 1 YearYears throughLessthrough 5 Years
10 Years¥
24,5866,370
33,306¥64,262

Due after 10
Years-

March 31, 2023
Cash and cash equivalents
Time deposits
Receivables
Total

Millions of Yen
Due after 5
Due after 1 YearYears throughthrough 5 Years
10 Years-

Due after 10
Years-

Due in 1 Year orLess¥
18,955
5,153
31,207¥55,31537

March 31, 2024
Cash and cash equivalents
Time deposits
Receivables
Total

Due in 1 Year or
Less
$

$

162,824
42,187
220,568
425,579

Thousands of U.S. Dollars
Due after 5
Due after 1 YearYears throughthrough 5 Years
10 Years-

Due after 10
Years-

Please see Note 8 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 the observability
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 identical assets or liabilities.
Level 2: Fair values measured by using inputs other than quoted prices included within Level 1 that are observable forthe 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 of these inputs belongs.
(1) The financial assets and liabilities measured at the fair values in the consolidated balance sheet
Millions of Yen
March 31, 2024
Investment securities
Available for sale
Equity securities
Derivatives
Foreign currency forward contracts
Total

Level 1

Level 2

¥

4,394

¥

4,394

Level 3

Total

-

¥
¥

-

6
6

¥ 4,394¥6¥ 4,400

Millions of Yen
March 31, 2023
Investment securities
Available for sale
Equity securities
Derivatives
Foreign currency forward contracts

Level 1¥¥

Level 2

3,504
3,504

¥
¥

Level 3

Total

-

7
7

-

¥ 3,504¥7¥ 3,511

Total
Thousands of U.S. Dollars
March 31, 2024
Investment securities
Available for sale

Level 1

Level 2

38

Level 3Total

Equity securities
Derivatives
Foreign currency forward contract
Total

$

29,102$

29,102-$$$ 29,102

-

37
37

$
37
$ 29,139(2) The financial assets and liabilities not measured at the fair values in the consolidated balance sheet
Millions of Yen
March 31, 2024

Level 1Long-term debt, including current
portion
Total

Level 2

Level 3

Total

-

¥

30,591-¥30,591-¥30,591-¥30,591Millions of Yen
March 31, 2023

Level 1Long-term debt, including current
portion
Total

Level 2-¥

29,719-¥29,719Level 3Total-

¥ 29,719¥ 29,719

Thousands of U.S. Dollars
March 31, 2024
Long-term debt, including current
portion
Total

Level 1

Level 2

Level 3Total-

$ 202,590-$ 202,590-$ 202,590-$ 202,590

The following is a description of valuation methodologies and inputs used for measurement of the fair value of assets andliabilities:
Investment Securities
The fair value of investment securities is measured at the quoted market price of the stock exchange for the equity instruments.
Since the equity instruments are traded in active markets, the fair values of them are categorized as Level 1.
Long- Term Debt
The fair values of long-term debt are measured by using discounted present value techniques considering assumptions
including expected future cash flows and discount rates considering maturity and credit risk and are categorized as Level 2.
Derivatives
The fair values of foreign currency forward contracts are measured by using discounted present value techniques consideringobservable inputs such as foreign currency exchange rate and are categorized as Level 2.

39

17. DERIVATIVESThe Group enters into foreign currency forward contracts and currency swap contracts to hedge foreign exchange risk
associated with certain assets and liabilities denominated in foreign currencies.
An accounting department of the Company is in charge of entering into such transactions based on an approved definedmanagement policy on authority and limits on the maximum amount of derivative transactions. Consolidated subsidiaries
also manage derivatives based on internal policies.
Derivative Transactions to Which Hedge Accounting is Not Applied

Contract
AmountMarch 31, 2024
Foreign currency forward contracts:
Buying yen
Selling Chinese yuan
Total

March 31, 2023
Foreign currency forward contracts:
Buying yen
Selling Chinese yuan
Selling Thai Baht
Total

March 31, 2024
Foreign currency forward contracts:
Buying yen
Selling Chinese yuan
Total
18.

¥
¥

154
154

Contract
Amount

¥
¥

-

¥
¥

6
6

Millions of Yen
Contract
Amount Due
Fair
after One Year Value

214
56
270

Contract
Amount$$Millions of Yen
Contract
Amount Due
Fair
after One Year
Value

-

¥
¥

-

$
$

6
1
7

37
37

CONTINGENT LIABILITIESAt March 31, 2024, the Group had the following contingent liabilities:

Guarantees of employees’ housing loans
Export notes sold with recourse

Millions of Yen
¥
84
¥
9

40

¥
¥

6
6

Unrealized
Gain/Loss

Thousands of U.S. Dollars
Contract
Amount Due
Fair
after One Year
Value

1,021
1,021

Unrealized
Gain/Loss

Thousands of
U.S. Dollars
$
558
$
61

¥
¥

6
1
7

Unrealized
Gain/Loss

$
$

37
37

19. OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2024 and 2023, were as follows:
Thousands ofMillions of Yen
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 effect
Total
Share of other comprehensive income
in a nonconsolidated subsidiary and an associated company
Gains arising during the year
Total
Total other comprehensive income

41

U.S. Dollars

2024

2023

2024

¥

1,173
(211)
962
(295)

¥

(1)
(1)
(2)

$

7,765
(1,396)
6,369(1,952)

¥

667

¥

(3)

$

4,417

¥

2,414

¥

3,918

$ 15,992

¥

2,414

¥

3,918

$ 15,992

¥

3,726
14
3,740
(1,136)

¥

555
176
731
(184)

$ 24,677
90
24,767(7,521)

¥

2,604

¥

547

$ 17,246

¥

227

¥

176

$

1,500

¥

227

¥

176

$

1,500

¥

5,912

¥

4,638

$ 39,15520. NET INCOME PER SHARE
Calculation of basic income per share for the years ended March 31, 2024 and 2023, was as follows:

Millions of Yen
Net Income
Attributable to
Owners of the
Parent
For the year ended March 31, 2024:
Net income attributable to commonshareholders

Thousands ofSharesYen

Weighted-Average
SharesU.S. Dollars

Net Income (Loss) Per Share

¥

2,569

47,133

¥

54.50

¥

(2,209)46,936¥(47.05)$0.36

For the year ended March 31, 2023:
Net loss attributable to commonshareholders

Diluted net income per share is not presented as the Group did not have potential dilutive common shares in 2024. For
2023, the Group did not have potential dilutive common shares and was in a loss position.
21. SUBSEQUENT EVENT
The following appropriation of retained earnings at March 31, 2024, was approved at the Board of Directors meeting
held on May 30, 2024:

Millions of Yen
Year-end cash dividends, ¥13 ($0.09) per share

42

¥

618

Thousands of
U.S. Dollars
$

4,093

22. SEGMENT INFORMATION

Under ASBJ Statement No. 17, “Accounting Standard for Disclosures about segments of an Enterprise and Related information,” and ASBJ Guidance No. 20, “Guidance on Accounting Standard forDisclosures about segments of an Enterprise and Related information,” an entity is required to report financial and descriptive information about its reportable segments. Reportable segments are operating
segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity for which separate financial information is available and whose financial
information is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and assess its performance. Generally, segment information is required to be reported on thesame basis as is used internally for evaluating operating segment performance and deciding 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 performed in order to decide how resources
are allocated among the Group.
The Group mainly manufactures and sells bearings for the automotive, marine and construction machinery industries, dry bearings and special bearings for general industrial machinery, highprecision / high-quality parts for automotive engines and transmissions, and aluminum die cast automotive parts across the globe. Furthermore, the Group also manufactures and sells metallic dry
bearings, rotary pumps, centralized lubrication equipment, electrode sheets for electric double layer capacitors and so on.
The Group has four reportable segments which include manufacturing automotive motor bearings, automotive non-motor bearings, non-automotive bearings, and parts for automobiles other thanbearings, to correspond to its customers’ business needs.

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.”
Reportable segment profit represents operating income. Intersegment sales or transfer prices are based upon the current market price.

43

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

Non-Motor

Motor Bearings

Other

Parts forNon-automotive
Bearings

Bearings

Automobiles Other

Reconciliations
Total(Note 1)

Total

Consolidated(Note 2)than Bearings

Sales:
Sales to externalcustomers
Intersegment
sales or transfers¥69,507¥19,839¥16,611¥21,300¥127,257¥1,481¥128,738-¥128,738

569

235

35

236

1,075

772

1,847

¥(1,847)-

Total¥70,076¥20,074¥16,646¥21,536¥128,332¥2,253¥130,585¥(1,847)¥128,738

Segment profit (loss)¥9,083¥2,798¥3,254¥(1,723)¥13,412¥397¥13,809¥(7,724)¥6,085

Segment assets

90,691

23,59017,35732,586

164,224

1,173

165,397

22,973

188,370

4,330

1,090

651

2,254

8,325

48

8,373

1,222

9,595

Other:
Depreciation andamortization
Amortization of goodwill

-

-

-

777

777

-

777

-

777

Investments in associatedcompanies that are
accounted for by theequity method
Increase in property,
plant and equipment
and intangible assets

963

1,453

-

415

2,831

-

2,831

-

2,831

1,833

514

2,716

1,907

6,970

25

6,995

768

7,763

44

Millions of Yen
2023
Reportable Segment
Automotive

Automotive

Non-automotive

Non-Motor

Motor Bearings

Other

Parts for
Automobiles Other

Bearings

Bearings

Reconciliations

Total(Note 1)

Total

Consolidated(Note 2)than Bearings

Sales:
Sales to externalcustomers
Intersegment
sales or transfers¥62,647¥19,242¥14,768¥17,359¥114,016¥1,464¥115,480-¥115,480

823

247

40

392

1,502

661

2,163

¥(2,163)-

Total¥63,470¥19,489¥14,808¥17,751¥115,518¥2,125¥117,643¥(2,163)¥115,480

Segment profit (loss)¥6,961¥2,671¥2,086¥(2,097)¥9,621¥378¥9,999¥(7,174)¥2,825

Segment assets

85,591

22,51914,614

31,270

153,994

2,187

156,181

17,136173,317

4,153

1,116

605

2,067

7,941

44

7,985

1,206

9,191

Amortization of goodwill

-

-

-

750

750

-

750

-

750

Investments in associatedcompanies that are
accounted for by theequity method
Increase in property,
plant and equipment
and intangible assets

859

1,251

-

392

2,502

-

2,502

-

2,502

1,969

542

734

2,120

5,365

2

5,367

629

5,996

Other:
Depreciation andamortization

45

Thousands of U.S. Dollars
2024
Reportable Segment
Automotive

Automotive

Non-Motor

Motor Bearings

Other

Parts forNon-automotive

Automobiles Other

Bearings

Bearings

Total

Reconciliations

Total(Note 1)

Consolidated(Note 2)than Bearings

Sales:
Sales to externalcustomers
Intersegment
sales or transfers$460,311$131,386$110,004$141,061$842,762$9,808$852,570-$ 852,570

3,769

1,556

234

1,559

7,118

5,117

12,235$(12,235)

-

Total

$464,080$132,942$110,238$142,620$849,880$14,925$864,805$(12,235)$852,570

Segment profit (loss)$60,153$18,528$21,548$(11,408)$88,821$2,629$91,450$(51,154)$40,296

Segment assets

600,600

156,221114,950

215,804

1,087,575

7,770

1,095,345

152,136

1,247,481

28,671

7,221

4,312

14,92955,133317

55,4508,094

63,544

-

-

-

5,147

5,147

-

5,147

-

5,147

6,375

9,619

-

2,752

18,476-

18,746-

18,746

12,1393,405

17,986

12,626

46,156

166

46,322

5,084

51,406

Other:
Depreciation
and amortization
Amortization of goodwill
Investments in associatedcompanies that are
accounted for by theequity method
Increase in property, plantand equipment andintangible assets

Notes:
1.

Other includes real estate leases, oil-less metal bearings, rotary pumps businesses, and electrode sheets for electric double layer capacitors.

2.

Reconciliations are as follows:(1) The reconciliation for segment loss of ¥7,724 million ($51,154 thousand) and ¥7,174 million as of March 31, 2024 and 2023, respectively, includes corporate-wide costs of ¥7,722 million ($51,138 thousand) and ¥7,184
million, respectively, and the elimination of intersegment transactions of ¥2 million ($16 thousand) and ¥10 million, respectively.
Corporate-wide costs, which are not allocated to reportable segments, principally consist of general and administrative expenses.
(2) The reconciliation for segment assets of ¥22,973 million ($152,136 thousand) and ¥17,136 million as of March 31, 2024 and 2023, respectively, includes corporate assets of ¥34,242 million ($226,764 thousand) and¥24,788 million, respectively, and the elimination of intercompany transactions of ¥11,269 million ($74,628 thousand) and ¥7,652 million, respectively.
Corporate assets, which are not allocated to reportable segments, principally consist of the central office in Nagoya.
(3) The reconciliation for depreciation of ¥1,222 million ($8,094 thousand) and ¥1,206 million as of March 31, 2024 and 2023, respectively, relates to the depreciation of corporate assets.
(4) The reconciliation for the increase in property, plant and equipment and intangible assets of ¥ 768 million ($5,084 thousand) and ¥ 629 million as of March 31, 2024 and 2023, respectively, relates to the investment in corporate assets.

46

Associated Information
1.

Information about geographical areas(1) Sales
Millions of Yen
2024
Japan

North America

Asia

China

ThailandEurope

Other

Total

(excl. China andThailand)¥53,180¥16,140¥13,498¥11,305¥14,919¥14,312¥5,384¥128,738

Millions of Yen
2023
Japan

North America

Asia

China

ThailandEurope

Other

Total

(excl. China andThailand)¥49,364¥11,842¥12,624¥10,796¥13,752¥12,561¥4,541¥115,480

Thousands of U.S. Dollars
2024
Japan

North America

Asia

China

ThailandEurope

Other

Total

(excl. China andThailand)$352,184$106,890$89,391$74,865$98,802$94,785

Note: Sales are classified by country or region based on the location of customers.

47$35,653$852,570

(2) Property, plant and equipment
Millions of Yen
2024
Japan

North America

Asia

ThailandEuropeTotal(excl. Thailand)¥26,830¥5,449¥7,221¥8,243¥9,122¥56,865

Millions of Yen
2023
Japan

North America

Asia

ThailandEuropeTotal(excl. Thailand)¥27,535¥ 5,354¥7,069¥8,133¥7,430¥55,521

Thousands of U.S. Dollars
2024
Japan

North America

Asia

ThailandEuropeTotal(excl. Thailand)$177,686$36,084$47,820$54,589$60,412$376,591

48

2.

Information about Impairment of Long-Lived Assets

Not applicable for the current period.
Millions of Yen
2023
Reportable Segments
Automotive

Automotive

Non-Motor

Motor Bearings

Parts forNon-automotive

Automobiles Other

Bearings

Bearings
Loss on impairment oflong-lived assets

-

Other

Total

Elimination/

Consolidated

Corporate

Total

than Bearings--¥2,015¥2,01549-¥ 2,015-¥2,015

3.

Information about Goodwill
Millions of Yen
2024
Reportable Segments
Automotive
Automotive

Non-Motor

Motor Bearings

Bearings

Bearings-

Goodwill

Elimination/

Parts forNon-automotive

-

Other

Automobiles Other

Total

Total

Consolidated

Corporate

than Bearings-¥4,070¥ 4,070-¥4,070-¥4,070Millions of Yen
2023
Reportable Segments
Automotive
Automotive

Non-Motor

Motor Bearings

Bearings

Bearings-

Goodwill

Elimination/

Parts forNon-automotive

-

Other

Automobiles Other

Total

Total

Consolidated

Corporate

than Bearings-¥4,629¥4,629-¥4,629-¥4,629Thousands of U.S. Dollars
2024
Reportable Segments
Automotive

Automotive

Non-automotive

Non-Motor

Motor Bearings
-

Other

Bearings

Total

Elimination/

Consolidated

Corporate

Total

Automobiles Other

Bearings
Goodwill

Parts forthan Bearings--$26,957$26,957

Note: Please see segment information for details about the amortization of goodwill.

******

50-$26,957-$26,957