YKK Philosophy & Sustainability

Environmental

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Financial Information

Financial InformationYKK Group Consolidated Financial Information
Consolidated Balance Sheet(Millions of yen)

Prior Fiscal Year(Ended March 31, 2022)

Current Fiscal Year(Ended March 31, 2023)

AssetsCurrent assets
Cash and deposits

266,275

298,450

Notes, accounts receivable, and contract assets

196,130

209,407

Securities

4,218

4,162

Inventories

165,982

191,805

Other

35,60031,290Allowance for doubtful accounts(2,506)(2,462)665,701

732,655

467,459

481,114

Accumulated depreciation(314,735)(330,814)

Buildings and structures, net

152,724

150,299

Machinery, equipment and vehicles

681,971

715,462

Accumulated depreciation(546,286)(581,506)

Machinery, equipment and vehicles, net

135,685

133,955

Land

64,83365,670Construction in progress

14,76522,718Other

124,268

134,067

Accumulated depreciation(95,035)(101,682)

Other, net

29,23232,384397,242405,029

26,453

26,783

Investment securities

35,93324,235

Deferred tax assets

15,132

15,732

Other

17,452

18,196(974)(1,047)67,544

57,115491,239

488,927

1,156,941

1,221,583

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures

Total property, plant and equipment
Intangible assets
Investments and other assets:

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets– 49 –YKK Philosophy & Sustainability

Environmental

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Financial Information

Consolidated Balance Sheet(Millions of yen)

Prior Fiscal Year(Ended March 31, 2022)

Current Fiscal Year(Ended March 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade76,50780,219

Short-term borrowings

4,677

5,086

Current portion of long-term loans payable

67

Bonds scheduled for redemption within one year－

10,000

Income taxes payable

6,524

5,469

Provision for bonuses

18,973

17,945

Deposits received from employees

36,707

37,114

Other

69,21070,731

Total current liabilities

212,606

226,574

Corporate bonds

10,000－Long-term borrowings

2,027

2,066

Deferred tax liabilities

7,318

4,232

Retirement benefit liabilities

73,003

61,223

509

492

Other

14,212

20,703

Total noncurrent liabilities

107,071

88,718319,677

315,292

Capital stock

11,992

11,992

Capital surplus

35,36435,390Retained earnings

761,048

795,861

(20)

(23)

808,384

843,220

Valuation difference on other securities

13,619

5,822

Deferred gains/losses on hedges

2,872

1,767

Foreign currency translation adjustment

24,08651,059Remeasurements of defined benefit plans(31,306)(16,298)

9,270

42,350Non-controlling interests

19,60820,719Total net assets

837,264

906,290

1,156,941

1,221,583

Noncurrent liabilities

Provision for directors’ retirement benefits

Total liabilities
Net assets
Shareholders’ equity

Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income

Total accumulated other comprehensive income

Total liabilities and net assets– 50 –YKK Philosophy & Sustainability

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Financial Information

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, 2022) (From April 1, 2022 to March 31, 2023)

Net sales

797,019

893,226

Cost of sales

518,713597,301

Gross profit

278,305

295,924

Selling, general and administrative expenses

218,144

239,962

Operating income

60,161

55,962

Interest income

1,765

3,410

Dividends income

656

692

Foreign exchange gains

1,072

3,512

Miscellaneous income

3,290

4,219

Total non-operating income

6,784

11,835

837

848

－

2,093

Miscellaneous loss

2,144

4,165

Total non-operating expenses

2,981

7,108

63,96460,689286

2,244

Insurance proceeds

－

872

Other

4

49

290

3,166

21

35

Loss on retirement of noncurrent assets

2,425

1,191

Loss on valuation of investment securities

533

1,044

Losses from disasters

590

1,037

Costs of environmental measures

－

2,111

Provision for product recalls

－

1,400

Other

1,163

534

Total extraordinary loss

4,734

7,354

Income before income taxes and non-controlling interests

59,52056,502

Income taxes-current

16,231

18,565

Income taxes-deferred(1,882)(1,106)

Total income taxes

14,34817,459Net income

45,172

39,042

Net income attributable to non-controlling interests

1,074

1,113

Net income attributable to owners of parent

44,09737,929Non-operating income

Non-operating expenses
Interest expenses
Losses on net monetary position

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

Total extraordinary income
Extraordinary loss
Loss on sale of noncurrent assets– 51 –YKK Philosophy & Sustainability

Environmental

SocialGovernanceConsolidated Statements of Comprehensive IncomeFinancial Information(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, 2022) (From April 1, 2022 to March 31, 2023)

Net income

45,172

39,042

Valuation difference on other securities

7,012(7,797)

Deferred gains/losses on hedges

1,912(1,104)Foreign currency translation adjustment

49,55527,705Adjustment for retirement benefits

1,409

15,081

Total other comprehensive income

59,88933,885

105,061

72,928102,178

71,008

2,882

1,919

Other comprehensive income

Comprehensive income
Comprehensive income attributable to
Owners of the parent
Non-controlling interests– 52 –YKK Philosophy & Sustainability

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Financial Information

Consolidated statement of changes in shareholders’ equity
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity

Capital stock

Balance at the beginning of current period

Capital surplus

Retained earnings

35,360719,828

11,992

Total shareholders’equityTreasury stock(18)

767,162

Changes in items during the period
Dividends from surplus(2,877)(2,877)

Net income attributable to owners ofparent44,09744,097Purchase of treasury stock(2)

Change in ownership interest of parent due
to transactions with non-controlling interests

3

3

Net changes in items other thanshareholders’ equity－－

3

41,220(2)

41,222

11,99235,364

761,048(20)

808,384

Noncontrollinginterests

Total net
assets17,174

735,527

Total changes in items during the period
Balance at the end of current period(2)

Accumulated other comprehensive income
Valuationdifference onother securities

Balance at the beginning of current period

6,607

Deferred gains orlosses on hedges

Cumulative
reconciliation
Foreign currency
amount fortranslation
retirement benefits
adjustments

959(23,768)(32,608)

Total accumulated
othercomprehensive
incomeTotal(48,809)

Changes in items during the period
Dividends from surplus－(2,877)

Net income attributable to owners ofparent－44,097Purchase of treasury stock－(2)

Change in ownership interest of parent due
to transactions with non-controlling interests－

3

Net changes in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of current period

7,012

1,912

47,855

1,301

58,0802,433

60,514

7,012

1,912

47,855

1,301

58,0802,433

101,736

13,6192,872

24,086(31,306)

9,270

19,608837,264– 53 –YKK Philosophy & Sustainability

Environmental

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Financial Information

Consolidated statement of changes in shareholders’ equity
Current Fiscal Year (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity

Capital stock

Balance at the beginning of current period

Capital surplus

Retained earnings

35,364

761,048

11,992

Total shareholders’equityTreasury stock(20)

808,384

Changes in items during the period
Dividends from surplus(3,117)(3,117)

Net income attributable to owners ofparent37,92937,929Purchase of treasury stock(2)

Change in ownership interest of parent due
to transactions with non-controlling interests

26

26

Net changes in items other thanshareholders’ equity

－
－

26

34,812(2)

34,835

11,99235,390795,861(23)

843,220

Noncontrollinginterests

Total net
assets

19,608837,264

Total changes in items during the period
Balance at the end of current period(2)

Accumulated other comprehensive income
Valuationdifference onother securities

Balance at the beginning of current period

13,619Deferred gains orlosses on hedges

Cumulative
reconciliation
Foreign currency
amount fortranslation
retirement benefits
adjustments

2,872

24,086(31,306)

Total accumulated
othercomprehensive
income
Total

9,270

Changes in items during the period
Dividends from surplus－(3,117)

Net income attributable to owners ofparent－37,929Purchase of treasury stock－(2)

Change in ownership interest of parent due
to transactions with non-controlling interests－

26

Net changes in items other thanshareholders’ equity(7,797)(1,104)

26,972

15,00833,0791,110

34,189Total changes in items during the period(7,797)(1,104)

26,972

15,00833,0791,110

69,025

Balance at the end of current period

5,822

1,767

51,059(16,298)

42,35020,719906,290– 54 –YKK Philosophy & Sustainability

Environmental

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Financial Information

Consolidated Statements of Cash Flows(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, 2022) (From April 1, 2022 to March 31, 2023)

Net cash provided by (used in) operating activities
Income before income taxes and non-controlling interests

59,52056,502

Depreciation expenses

57,29260,812

Increase (decrease) in allowance for doubtful accounts

(245)

(55)

Increase (decrease) in net defined benefit liabilities

2,511

3,116

Interest and dividends income(2,421)(4,103)

Interest expenses
Losses on net monetary position
Loss (gain) on valuation of investment securities
Costs of environmental measures
Loss on retirement of property, plant and equipment
Loss (gain) on sales of property, plant and equipment

837

848

－

2,093

533

1,044

－

2,111

742

616

(265)

(2,208)Decrease (increase) in notes and accounts receivable - trade(18,986)(9,824)

Decrease (increase) in inventories(24,846)(20,925)

Increase (decrease) in notes and accounts payable - trade

12,929

3,074

Other

7,615

4,540

Subtotal

95,21597,644

Interest and dividends income received

2,216

4,196

(811)

(816)

Income taxes paid

(15,488)(19,299)

Net cash provided by (used in) operating activities

81,132

81,724

Interest expenses paid

Net cash provided by (used in) investing activities
Net decrease (increase) in short-term loans receivable

(69)

21

Payments into time deposits(6,541)(7,676)

Proceeds from withdrawal of time deposits

6,073

2,717

Purchase of property, plant and equipment(33,685)(48,151)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments from changes in ownership interests in
subsidiaries that result in change in scope of consolidation
Purchase of shares of subsidiaries and affiliated companies
using the equity method
Other
Net cash provided by (used in) investing activities

903

3,591

(3,936)(5,057)

(306)

(460)

(1,520)

－

－

(67)

(1,330)(782)(40,414)(55,864)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations

162

349

(2,447)(3,476)

Proceeds from long-term loans payable

2,025

62

Repayments of long-term loans payable(2,145)

(21)

(2)

(2)

(2,880)(3,115)

(490)

(797)

Purchase of treasury stock
Cash dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents－(0)(5,776)(7,000)18,3198,207

Net increase (decrease) in cash and cash equivalents

53,261

27,066

Cash and cash equivalents at the beginning of period

211,378

264,639

Cash and cash equivalents at the end of period

264,639291,706– 55 –YKK Philosophy & Sustainability

Environmental

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Financial Information

Notes to the Consolidated Financial Statements
Significant Accounting Policies

1. Scope of consolidation
Main consolidated subsidiaries are listed in “4. Overview of Affiliated Companies” under “1. Corporate Overview.”(1) Number of consolidated subsidiaries................................................................... 106
Number of new consolidated subsidiaries ..................................................................... 1YKK AP Technologies Lab (NA) Inc.
The 106 consolidated subsidiaries also include YKK Holding Europe B.V. and YKK Netherland B.V.
(2) Number of unconsolidated subsidiaries.................................................................... 5
Name of major unconsolidated subsidiary:
Y2K HOLDINGS CORPORATIONThe reason for exclusion from consolidation is as follows:
These companies have been excluded from consolidation because they are small, and their total assets, net
sales, net income (amount equivalent to the equity portion held by the Company) and retained earnings (amountequivalent to the equity portion held by the Company) do not have a significant effect on the consolidated
financial statements.
2. Application of equity method(1) Number of affiliated companies accounted for using the equity method............... 1
Number of new affiliated companies accounted for using the equity method............. 1
Evevo(2) Number of companies not accounted for using the equity method......................... 8
Unconsolidated subsidiaries: 5
Y2K HOLDINGS CORPORATION and others
Affiliated companies: 3
NIIKAWA PORTAL CORPORATION and other
The reason for not applying the equity method is as follows:
These companies are not accounted for using the equity method because their impact is not significant on the
consolidated financial statements in terms of their total net income (amount equivalent to the equity portion heldby the Company) and retained earnings (amount equivalent to the equity portion held by the Company), and they
are not significant as a whole.
3. Accounting period of consolidated subsidiaries
The fiscal year end of certain foreign consolidated subsidiaries, including SHANGHAI YKK ZIPPER CO., LTD., is
December 31. These subsidiaries are consolidated using their financial statements as of the parent fiscal year end,
which are prepared solely for consolidation purposes.
4. Matters regarding accounting policy(1) Valuation standards and valuation methods for significant assetsa) Securities
1) Held-to-maturity debt securities
Held-to-maturity debt securities are carried at amortized cost (Straight-line).
2) Other securities
a. Securities other than shares that do not have a market value, etc.
Marketable securities are carried at fair value as of the consolidated fiscal year end, with changes in
unrealized gains or losses included directly in net assets. Cost of securities sold is determined using themoving average method.
b. Shares that do not have market value, etc.
Non-marketable securities are carried at cost, which is determined using the moving average method.
The discount cash flow method is used for some consolidated subsidiaries.
b) Derivatives
Derivative financial instruments are stated at fair value.
c) Inventories
Inventories are mainly stated at cost based on the gross average method (the balance sheet amounts are
determined including any required write-downs based on any decrease in profitability).
(2) Depreciation of assetsa) Property, plant and equipment (excluding leased assets):
Amortization is calculated using the straight-line method.
– 56 –YKK Philosophy & Sustainability

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Financial Information

The estimated useful lives are as follows:
Buildings and structures................................................................ 2 - 50 years
Machinery, equipment and vehicles.............................................. 2 - 15 yearsb) Intangible assets (excluding leased assets):
Amortization is calculated using the straight-line method.
Software for internal use is amortized over a period of mainly 5 years using the straight-line method.
c) Leased assets:
Leased assets held under finance lease transactions, where ownership is not transferred
Depreciation of leased assets is calculated using the straight-line method over the lease terms with noresidual value.
d) Right-of-use assets
Overseas subsidiaries apply the International Financial Reporting Standards 16 “Leases” (hereinafter, “IFRS 16”)or the US Financial Accounting Standards Board Accounting Standards 842 “Leases” (hereinafter, “ASC 842”). In
accordance with IFRS 16 or ASC 842, in principle, borrowers in lease transactions record all lease transactions
as right-of-use assets, and depreciation and amortization is calculated using the straight-line method.
(3) Basis for significant reservesa) Allowances for doubtful accounts
Allowances for doubtful accounts are provided at an amount sufficient to cover probable losses on collection. The
allowances consist of the estimated uncollectible amount with respect to certain identified doubtful receivables
and an amount calculated using the historical actual percentage of collection losses on normal receivables.
b) Provision for bonuses
Accrued bonuses of the Company and its consolidated subsidiaries have been provided based on theestimated amount of bonuses to be paid to employees that relates to the current consolidated fiscal year.
c) Provision for directors’ retirement benefits
Provision for directors’ retirement benefits of the Company and certain domestic consolidated subsidiaries has
been made at an amount to be required at the current consolidated fiscal year end based on the Company’s bylaws.
(4) Accounting for retirement benefitsa) Attribution to periods of expected retirement benefits
The Company and its domestic consolidated subsidiaries calculate retirement benefit obligations by using thestraight-line attribution method to attribute expected benefits to the periods up to the current fiscal year.
b) Amortization of actuarial gains and losses and past service costs
The Company and its domestic consolidated subsidiaries amortize past service costs using the straight-line
method over the average remaining years (8 - 22 years) of service of eligible employees.
Amortization of actuarial gains or losses begins in the consolidated fiscal year after the fiscal year in which
the gain or loss is recognized, and is recorded using the straight-line method over a period within the averageremaining years (8 - 22 years) of service of eligible employees at the time of occurrence in each consolidated
fiscal year.
(5) Reporting of significant revenues and expenses
The following describes (1) the contents of the major performance of obligations in the main business related to
the revenue generated from the contracts with customers of the Company and its consolidated subsidiaries and(2) the normal time points (normal time points for recognizing the revenue) to satisfy the performance of obligations.
a) Fastening Business
The Fastening Business conducts manufacturing and sales of fastening products, etc. In domestic sales,
control of the product is transferred to the customer at the time of delivery and the performance of obligations
is satisfied. However, since the period from the time of shipment to the time of delivery is short, we recognize
the revenue on the shipping date. In export sales, we recognize revenue on the shipping date because importantrisks and economic values associated with possession of the product are transferred to the customer at thetime of shipment and the performance of obligations is satisfied.
Revenue is measured by deducting returns, discounts, rebates, etc., from the consideration promised in thecontract with the customer.
The consideration for the transaction is received within a short period of time after the performance ofobligations is satisfied, and does not include any significant financial components.
b) AP Businessi. Sales of goods
The AP Business conducts manufacturing and sales of construction material products. Control of the
product is transferred to the customer at the time of delivery and the performance of obligations is satisfied.
However, since the period from the time of shipment to the time of delivery is short, we recognize the revenue
on the shipping date.
Revenue is measured by deducting returns, discounts, rebates, etc., from the consideration promised in thecontract with the customer.
– 57 –YKK Philosophy & Sustainability

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Financial Information

The consideration for the transaction is received within a short period of time after the performance ofobligations is satisfied, and does not include any significant financial components.
ii. Construction contracts
The AP Business installs curtain walls, windows, sashes, etc. For construction contracts where it is possible
to reasonably estimate the progress of fulfilling the performance of obligations, we use the input method toreasonably estimate the progress of construction. We recognize revenue over a certain period of time basedon the progress. On the other hand, for construction contracts where it is not possible to reasonably estimate
the progress of fulfilling the performance of obligations, we use the cost recovery method to recognize
revenue over a certain period of time. However, if the period from the transaction start date in theconstruction contract to the time when the performance of obligations is expected to be fully satisfied is very
short, we recognize revenue when the performance of obligations is completely satisfied.
For construction contracts where the total estimated construction cost exceeds the total amount of theconstruction contract, the excess amount is immediately recognized as an expense.
There is a short gap between the time that the performance of obligations is satisfied and the consideration
for the transaction is received. It does not include any significant financial components.
(6) Translation of significant assets and liabilities denominated in foreign currencies into yen
Current and noncurrent receivables and payables denominated in foreign currencies are translated into yen at
the rates of exchange in effect on the final day of the consolidated fiscal year, and differences arising from thetranslation are treated as loss or gain on exchange. All asset and liability accounts of foreign consolidated
subsidiaries and affiliates are translated into yen at the rates of exchange in effect at the consolidated fiscal year
end, and all income and expense accounts are translated into yen at the average exchange rate during the year.
Differences arising from the translation are presented as foreign currency translation adjustments and noncontrolling interests in net assets. However, in hyperinflationary economies, the revenue and costs of overseas
subsidiaries are translated into yen in effect at the consolidated fiscal year end using hyperinflationary accounting.
(7) Hedge accountinga) Hedge accounting
Deferral hedge accounting is adopted, in principle. Forward foreign exchange contracts are subject toappropriation if they satisfy the requirements for appropriation treatment.
b) Hedging instruments and hedged items
Hedging instruments and hedged items for which hedge accounting is adopted in the current consolidated
fiscal year are as follows:
Hedging instruments: Forward foreign exchange contracts
Hedged items: Payables denominated in foreign currencies, forecast transactions denominated in foreign
currencies.
c) Hedging policy
Foreign exchange fluctuation risk is hedged in accordance with the Company’s basic policy related to risk
management.
d) Assessment of hedge effectivenessHedge effectiveness is assessed quarterly, based on the change in market value of hedged items and thechange in market value of hedging instruments. Forward foreign exchange contracts, which are subject toappropriation treatment, are excluded from the assessment of hedge effectiveness.
(8) Goodwill amortization method and period
In principle, goodwill is amortized using the straight-line method over an estimated effective period from thedate of occurrence. When the amount of goodwill is insignificant, goodwill is fully expensed in the period in which
it arises. When the amount of goodwill is insignificant, goodwill is fully expensed in the period in which it arises.
(9) Cash and cash equivalents in the Consolidated Statements of Cash Flows
Cash and cash equivalents consist of cash on hand, cash at banks that can be withdrawn at any time, and shortterm investments with a maturity of 3 months or less when purchased that can easily be converted to cash andare subject to little risk of change in value.
(10) Other significant accounting policies of the Consolidated Financial Statements
Application of hyperinflationary accounting
The financial statements of some consolidated subsidiaries are adjusted and consolidated in accordance with
the IAS 29 Financial Reporting in Hyperinflationary Economies. The impact of inflation on the net monetary
position is shown under the non-operating expenses of the Consolidated Statements of Income.
(Changes to accounting policy)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
We have applied the Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ– 58 –YKK Philosophy & Sustainability

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Financial Information

Statement No. 31, issued by the ASBJ on June 17, 2021; hereinafter “ABSJ Guidance No. 31”) from the
beginning of the current fiscal year. In accordance with the transactional treatment prescribed in ABSJ
Guidance No. 31 Article 27 Paragraph 2, the new accounting standards defined by ABSJ Guidance No. 31 havebeen applied to forward-looking statements.
The application of ABSJ Guidance No. 31 has no impact on the consolidated financial statements.
(Application of US Financial Accounting Standards Board Accounting Standards [ASC] 842 “Leases”)
We have applied the ASC 842 “Leases” to overseas subsidiaries subject to the ASC 842 from the beginningof the current fiscal year. In principle, the application of these standards means the Company treats all leasetransactions of the borrower as assets and liabilities. The application of the ASC 842 uses a method torecognize the cumulative effect as of the initial date for applying the account standard, which is recognized as
an interim measure.
Also, the impact on consolidated financial statements due to the Revenue Recognition Standard is immaterial.
(Unapplied accounting standards, etc.)
・Accounting Standard for Corporate Taxes, Inhabitants Taxes, and Enterprise Taxes(ASBJ Statement No. 27, issued by the ASBJ on October 28, 2022)
・Accounting Standard for Presentation of Comprehensive Income(ASBJ Statement No. 25, issued by the ASBJ on October 28, 2022).
・Guidance on Accounting Standard for Tax Effect Accounting(ASBJ Statement No. 28, issued by the ASBJ on October 28, 2022)(1) Overview
The Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28), etc., wereannounced in February 2018 and the transfer from the Practical Guidelines for Tax Effect Accounting by theJapanese Institute of Certified Public Accountants to the Accounting Standards Board of Japan was completed. In
the deliberation process, the following two issues were decided to be deliberated after announcing ASBJ
Statement No. 28, etc., which have been deliberated and published.
・Classification of tax expenses (taxes on other comprehensive income)・Tax effects relating to sale of subsidiary shares, etc. (shares of subsidiaries or affiliated companies) when thegroup taxation regime is applied(2) Scheduled application dateStandards will be applied from the beginning of the fiscal year ending March 31, 2025.
(3) Impact of applying the accounting standards, etc.
The Company is currently evaluating the amount of impact on consolidated financial statements due toapplication of Accounting Standard for Corporate Taxes, Inhabitants Taxes, and Enterprise Taxes.

– 59 –YKK Philosophy & Sustainability

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Financial Information(Segment information, etc.)

Segment information
1. Overview of reportable segments
The reportable segments of the Group are components for which discrete financial information is available and whose
operating results are regularly reviewed by the Board of Directors to make decisions about resource allocation and to assess
performance. Each business of the Group formulates comprehensive domestic and overseas strategies for the products it
handles and develops business activities.
Accordingly, the Group is composed of product segments based on business, with the two reportable segments of the“Fastening Products” business and the “AP” business. The “Fastening Products” business manufactures and sells zippers,
zipper parts, zipper materials, snaps fasteners, buttons, etc. The “AP” business designs, manufactures, installs and sells
residential windows and sashes, windows and sashes for commercial buildings, interior furnishings, exterior materials, shaped
products, and construction components, etc.
2. C alculation method for the amount of net sales, income or loss amounts, assets, liabilities, and other items by reportable segment

Reportable segment income is the value for operating income.
Intersegment net sales and transfers are mainly recorded at market prices and the cost of goods manufactured.

3. Information by reportable segment on net sales, income or loss amounts, assets, liabilities, and other items

Prior Fiscal Year (From April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable segments
Fastening

Net sales
Sales to third parties
Intersegment net sales and transfers
Total

Other
*1

Adjustments*2

Amount listed on
consolidatedbalance sheet
*3

AP

Total

346,234
1,962

446,172
188

792,407
2,150

4,611
21,923－(24,074)

797,019－

348,197446,360

794,558

26,535(24,074)

797,019

Segment income

42,367

17,37559,742

1,695(1,277)60,161

Segment assets

632,989

426,844

1,059,834

71,11525,991

1,156,941

36,39920,251

18,112
20,60654,51240,858

1,268
773

1,511
1,812

57,29243,444

Other items
Depreciation expenses
Increase in tangible and intangible assets(Notes) 1. Other includes business activities such as real estate, aluminum smelting, etc.
		
2. (1) Adjustments for segment income of (1,277) million yen include a 2,850 million yen elimination of intersegment transactions and(5,395) million yen of operating expenses not allocable to reportable segments. Operating expenses not allocable to reportablesegments include those related to company-wide shared departments of the Company.
			 (2) Adjustments for segment assets of 25,991 million yen include a (64,698) million yen elimination of receivables due from shareddepartments throughout the company, 299,436 million yen of company-wide assets not allocable to reportable segments, and a(413) million yen adjustment for inventory assets.
		
3. Segment income has been reconciled to operating income represented in the Consolidated Statements of Income.

– 60 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Current Fiscal Year (From April 1, 2022 to March 31, 2023)(Millions of yen)

Reportable segments
Fastening

Net sales
Sales to third parties
Intersegment net sales and transfers
Total

Other
*1

Adjustments*2

Amount listed on
consolidatedbalance sheet
*3

AP

Total

378,393
2,194

508,421198

886,814
2,392

6,411
23,978－(26,371)

893,226－
893,226

380,587

508,619889,20730,389(26,371)

Segment income

43,711

17,863

61,574(2,624)(2,987)55,962

Segment assets

666,631448,285

1,114,917

59,77346,892

1,221,583

38,62826,902

19,117
29,66057,74556,562

1,376
2,055

1,690
1,988

60,81260,606

Other items
Depreciation expenses
Increase in tangible and intangible assets(Notes) 1. Other includes business activities such as real estate, aluminum smelting, etc.
		
2. (1) Adjustments for segment income (loss) of (2,987) million yen include a 2,960 million yen elimination of intersegment transactionsand (5,947) million yen of operating expenses not allocable to reportable segments. Operating expenses not allocable to reportablesegments include those related to company-wide shared departments of the Company.
			 (2) Adjustments for segment assets of 46,892 million yen include a (52,911) million yen elimination of receivables due from shareddepartments throughout the company, 307,928 million yen of company-wide assets not allocable to reportable segments, and a (37)
million yen adjustment for inventory assets.
		
3. Segment income (loss) has been reconciled to operating income represented in the Consolidated Statements of Income.

YKK, YKK\ap, AcroPlating, CYCLE OF GOODNESS, AiryString, AquaGuard, CONCEAL, ECO-DYE, EXCELLA, FLATKNIT, GreenRise, METALUXE, NATULON,NATULON Plus, PROSEAL, QuickFree, SOFIX, TouchLink, VISLON, YZiP and PASSIVETOWN are registered trademarks of YKK Corporation in Japan and othercountries/regions. YKK Little Parts. Big Difference is a registered trademark of the YKK Corporation.

– 61 –