Balance Sheet
As of March 31, 2022
Account
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims-operating

Accounts receivable-trade
Advance payments
Accounts receivable-otherConsumption taxes receivable
Other current assets
Allowance for doubtful receivables

Non-current assets
Tangible fixed assets
Buildings
Furniture and fixtures
Machinery and equipment
Land
Leased assets
Intangible fixed assets
SoftwareInvestments and other assets
Investment securities
Investment securities in subsidiaries and associates
Lease and guarantee deposits
Deferred tax assets
Prepaid pension cost
Other investments and other assets
Allowance for doubtful receivables

AmountAccount
Liabilities

48,893,080
2,771
968,548
3,173,543
37,153,372
2,094,225
281,245
93,493
5,145,731(19,853)

Current liabilities
Notes payable-trade
Electronically recorded obligations-operating
Accounts payable-trade
Short-term loan payable
Lease obligations
Accounts payable-other
Income taxes payable
Contract liabilities
Deposits received
Provision for bonuses
Other current liabilities

42,370,179
51,7173,400,114
30,433,889
1,281,781
79,419851,546
148,7455,441,042
21,003
525,556
135,3622,826,798
809,249
157,647
117,455
37,0581,776
495,311

Non-current liabilities
Lease obligations
Provision for directors' retirement benefits
Asset retirement obligations

634,902422,803
12,095200,004

231,112231,112
1,786,437
233,291658,252
343,471348,683
131,101
81,795(10,159)

Total liabilities

43,005,082

Net assets
Shareholders' equity
Common stock
Capital surplus
Additional paid-in capital

8,614,919
5,300,000
3,831
3,831

Retained earnings
Appropriated for legal reserveOther retained earnings
General reserve
Retained earnings brought forward

3,311,088
581,418
2,729,669
781,241
1,948,428

Valuation and translation adjustments

99,87842,01457,8638,714,797
51,719,879

Net unrealized holding gains on available-for-sale securities

Total assets¥ in thousands
Amount

51,719,879

Deferred gains on hedges
Total net assets
Total liabilities and net assets

Statement of Income
From April 1, 2021
To March 31, 2022
¥ in thousands

Account

Amount9,192,181

Sales

9,192,181

Gross profit

7,022,819

Selling, general and administrative expenses

2,169,362

Operating profit
Non-operating income
Interest income

218

Dividend income

232,686

Purchase Rebates

29,247

Refund of individually attributable amounts of consolidated taxation system

263,959

Other non-operating income

19,366545,478

Non-operating expenses
Interest expenses

23,262Foreign exchange losses

45,331Other non-operating expenses

9,553

78,146
2,636,693

Ordinary profit
Extraordinary gains
Gains on sales of investment securities

2,250

Gain on disposal of non-current assets

3,554

5,804

455

455

Extraordinary losses
Losses on sales of investment securities

2,642,042

Net income before income taxes
Income taxes - current

697,292

Income taxes - deferred(5,053)

Net income

692,238
1,949,804

Statement of Changes in Net Assets
From April 1, 2021 to March 31, 2022

¥ in thousands
Shareholders' equity
Capital surplus

Retained earnings
Retainedearnings
brought forward

Total retainedearnings

Total
shareholders'equity1,148,624

2,406,283

7,710,115(1,045,000)(1,045,000)(1,045,000)(105,000)00

1,949,804

1,949,804

1,949,804

Other retained earnings

Balance at the beginning of the year

Common stock

Additional
paid-in capital

Total capitalsurplus5,300,000

3,831

3,831

Appropriatedfor legal
General reserve
reserve
476,418

781,241

Changes of items during the year
Dividends of surplus
Accumulation of the retained earnings Reserve associatedwith dividends of Surplus

105,000

Net income
Net changes of items other thanshareholders' equity during the year

Total changes of items during the year
Balance at the end of the year---

105,000-

799,804

904,804

904,804

5,300,000

3,831

3,831

581,418

781,241

1,948,428

3,311,088

8,614,919

Valuation and translation adjustments
Net unrealized
Net unrealized Total valuation Total net assets
holding gains on
and translation
gains onavailable-for-saleadjustments
hedgessecurities
Balance at the beginning of the year

49,426

16,84066,266

7,776,382

Changes of items during the year
(1,045,000)

Dividends of surplus
Accumulation of the retained earnings Reserve associatedwith dividends of Surplus

0
1,949,804

Net income
Net changes of items other thanshareholders' equity during the year(7,412)

41,02333,61133,611

Total changes of items during the year

(7,412)

41,02333,611

938,415

Balance at the end of the year

42,01457,86399,8788,714,797

Notes to Non-Consolidated Financial Statements
Notes to matters concerning significant accounting policies
1. Basis and methods of valuation of assets(1)

Valuation basis and methods for securities
Available-for-sale securities
Securities other than shares that do not have amarket value

Stated at fair value based upon the quoted market prices at the end of the fiscal year
(Unrealized holding gains and losses are included as a separate component of net
assets until realized and the cost of securities sold is determined by the movingaverage method.)

Shares that do not have a market value(2)

Stated at cost, determined by the moving-average method

Investment securities in subsidiaries and associates

Stated at cost, determined by the moving-average method

Valuation basis and method for derivatives

Stated at fair value

2. Depreciation methods of fixed assets(1)

Tangible fixed assets(except for leased assets)(2)

Intangible fixed assets
Software(3)

Leased assets

Declining-balance method. However, the straight-line method is used for buildings
acquired on or after April 2016.

Computer software for internal use is amortized by the straight-line method over its
economic useful life of five (5) years.
Leased assets under finance leases that do not transfer the legal title of the assets tothe lessee are depreciated to a residual value of zero (0) by the straight-line method
over the lease periods.

3. Basis of recording allowances(1)

Allowance for doubtful receivables

An allowance for doubtful receivables is provided for the estimated amounts ofuncollectible accounts receivable from customers.
As for general receivables, an allowance is estimated based on the customers'
financial position and internal credit rating.
As for specific doubtful accounts, their collectibility is individually reviewed andallowances are provided for the estimated uncollectible amounts.

(2)

Provision for bonuses

Provision for bonus is provided for the estimated payment attributable to this year in
preparation for the payment of bonuses to employees.

(3)

Provision for retirement benefits

Provision for retirement benefits for employees is provided based on projected
retirement benefit obligations and plan assets at the end of the year.
In determining the projected retirement benefit obligations, a benefit calculation

formula is used to attribute the expected retirement benefit payments to periodsof service until the end of the year.
If the plan assets exceed the projected retirement benefit obligations at the end of theyear, the excess amount is recognized as prepaid pension cost.
Unrecognized prior service cost is amortized by the straight-line method over a period(13 years) that is within the employees' average remaining years of service.
Unrecognized actuarial gains and losses are amortized by the straight-line method
over a period (13 years) that is within the employees' average remaining years ofservice, from the year following the year in which the gains or losses occur.

(4)

Provision for directors' retirement benefits

4. Accounting policy for recognition of significant revenues and expenses

Provision for directors' retirement benefits is provided based on amounts that arepayable at the end of the year in accordance with the Company's Directors' Retirement
Benefits Payment Rule.
The company principally sells equipment and provides related ancillary services.
Depending upon the terms of contracts, revenue is recognized at the time of deliveryor shipment, or upon the attainment of customer acceptance.
Revenue is recognized at the net amounts received from customers, offset with thecommissions or other payments for the third parties, as the company acts as anintermediary or agent in ordinary business transactions.

5. Other important notes that are the basis for preparing financial statements(1)

Hedging accountingMethod of hedge accounting
Gains and losses on derivatives are principally deferred until realization of thedesignated hedge items.
Hedging instruments, hedged items, and hedging policy
The Company employs hedging instruments to manage risk exposure to fluctuations
in foreign currency exchange rates in accordance with its internal rules.
The hedging instruments and hedged items to which hedge accounting is applied
during the term are as follows:
Hedging instruments: Forward exchange contracts
Hedged items:
Forecasted transactions denominated in foreign currencies

Assessment of hedge effectiveness
When the critical terms between forecasted transactions and forward exchange
contracts match, the hedge relationship is assumed to be perfectly effective andtherefore the quantitative effectiveness test is omitted.

(2)

Accounting for consumption taxes and other taxes

Consumption tax is accounted for by the segregated method under which
consumption tax is excluded from presentation of sales, cost of sales and expenses.

(3)

Adoption of consolidated taxation system

The Company adopts a consolidated tax payment system as a consolidated subsidiaryof Sumitomo Corporation, which is its parent company under the consolidatedtaxation system.

(4)

Application of tax effect accounting for transition from theThe Company will transition from the consolidated taxation system to the group tax
consolidated taxation system to the group tax sharing system sharing system since the fiscal year ending March 31, 2023. Having regard toparagraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for theTransition from the Consolidated Taxation System to the Group Tax Sharing System”(PITF No. 39, March 31, 2020), however, the Company does not follow paragraph 44of “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28,
February 16, 2018) but apply provisions of pre-amended tax laws when calculating
the amounts of deferred tax assets and liabilities that relate to transitioning to thegroup taxation system and related amendments of tax laws for transitioning to thesingle tax payment system. “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (PITF No. 42, August 12, 2021), which setsout accounting and disclosure of corporation and local taxes and tax effect accounting
under the group tax sharing system, will be applied from the beginning of the yearending March 31, 2023.

Notes to changes in accounting policies(The application of accounting standards for revenue recognition)
The Company applies "Accounting Standards for Revenue Recognition"(ASBJ Statement No. 29, March31, 2020) and related guidance (hereinafter referred to as "Revenue Recognition AccountingStandards") from the beginning of this fiscal year, and the revenue is recognized in the amounts
expected to be received from the customer in exchange for promised goods or services at the timing
when the control over the goods or services is transferred to the customers.
In the past, we have recognized the revenue related to some transactions on a gross basis. However, theCompany changed the method to recognized the revenue and started to recognize the revenue on a net
basis since we act as an agent to sell the goods or services.
Due to the application of Revenue Recognition Accounting Standards, "advance payment", disclosed as"current liability" on the balance sheet of the previous fiscal year, is disclosed as "contract liability" fromthis fiscal year. The application of the Revenue Recognition Accounting Standards is in accordancewith the transitional treatment set forth in the proviso to Paragraph 84 of the Revenue Recognition
Accounting Standards.
As a result, "Sales" and "Cost of sales" on the statement of income for this fiscal year decreased by
67,913,063 thousand yen, compared to "Sales" and "Cost of sales" in the situation that the previousstandards were applied. There was no impact on gross profit, operating income, ordinary profit, net
income before income taxes on the statement of income, or the beginning balance of the retained
earnings on the statement of changes in net assets.
In addition, as the Company acts as an agent under the Revenue Recognition Accounting Standards,"Inventories", disclosed in "Current assets" on the balance sheet of the previous fiscal year is disclosed
as "Other current assets".
(The Application of Accounting Standard for Fair Value Measurement)
The Company applies “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,July 4, 2019) and related guidance (hereinafter referred to as “Accounting Standards for Fair Value
Measurement”) from the beginning of this fiscal year, and prospectively applies the new accounting
policies under Accounting Standards for Fair Value Measurement in accordance with the transitional
provision set out in paragraph 19 of the ASBJ Statement No. 30 and paragraph 44-2 of “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
There is no effect on the non-consolidated financial statements in this fiscal year.

Notes to the balance sheet
1. Accumulated depreciation of tangible fixed assets

507,955 thousand yen

2. Guarantee obligations
A guarantee is provided for a subsidiary's debt obligations to a financial institution.
SC Machinex Asia Ltd.
368,000 thousand yen
3. Monetary receivables and payables to subsidiaries and affiliates
Short-term monetary receivables
Long-term monetary receivables
Short-term monetary payables

799,330 thousand yen
295,590 thousand yen
1,081,000 thousand yen

4. Accounting for retirement benefits
The Company participates in a defined benefit plan that shares risks among entities under common control (Sumitomo
Corporation Affiliated-Employer Employees Pension Fund). The company accounts for the contribution as expenses.
(1) Funded status of the pension fund (as of March 31, 2022)
Plan assets
Pension obligations under pension financial calculation
Balance

52,532,951 thousand yen
43,577,769 thousand yen
8,955,182 thousand yen(2) Percentage of contributions paid by the Company under the scheme (as of March 31, 2022)
1.96%

Notes to the Statement of Income
1. Operating transactions with subsidiaries and affiliates
Sales
Selling, general, and administrative expenses
2. Non-operating transactions with subsidiaries and affiliates

2,318,623 thousand yen
606,767 thousand yen
543,775 thousand yen

Notes to the Statement of Changes in Net Assets
1. Number of issued shares as of the end of the year
Ordinary shares
2. Matters concerning the distribution of surplus made during
the year

2,000,000 shares
The payment of year-end dividends was approved at a shareholders'meeting held on June 22, 2021 as follows:
Dividends:
Dividend per share:
Date of right allotment:
Effective date:

3. Matters concerning the distribution of surplus to be madeafter the end of the year

¥1,045,000,000¥522.50
March 31, 2021
June 22, 2021

The payment of year-end dividends is proposed at a shareholders' meeting
to be held on June 28, 2022 as follows:
Dividends:
Dividend per share:
Date of right allotment:
Effective date:
Dividends are paid out of:¥1,810,000,000¥905.00
March 31, 2022
June 28, 2022
Other retained earnings

Notes to tax effect accounting
1. Breakdown of major components for deferred tax assets and deferred tax liabilities
Deferred tax assets
Allowance for doubtful receivables
Losses on valuation of inventories
Provision for bonuses
Business taxes payable
Asset retirement obligations
Loss on valuation of investment securities in subsidiaries and associates
Tax sales recognition
Depreciation
OtherTotal deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities
Deffered gains or losses on hedges
Prepaid pension cost
Asset retirement cost
Total deferred tax liabilities
Net deferred tax assets

6,154 thousand yen
34,915 thousand yen
162,922 thousand yen
32,449 thousand yen
62,001 thousand yen
43,613 thousand yen
112,855 thousand yen
6,015 thousand yen
18,458 thousand yen
479,389 thousand yen(18,876) thousand yen(25,996) thousand yen(40,641) thousand yen(45,191) thousand yen(130,706) thousand yen
348,683 thousand yen

Notes to financial instruments
1. Matters concerning the status of financial instruments
The Company limits its investments to short-term deposits etc. and raises funds through loans from Sumitomo Corporation.
The Company monitors the credit risk of customers relating to notes receivable-trade and Accounts receivable-trade tomitigate credit losses in accordance with its risk management rules.
Investment securities mainly consist of stocks, and the Company monitors the fair value of listed stocks on a quarterly basis.
The Company finances its working capital through borrowings. Derivatives are entered to hedge the foreign currency risks offorecasted transactions in accordance with internal foreign currency risk management rules.
2. Matters concerning the fair value of financial instruments, etc.
The balance sheet amount, market value, and the differences between them as of March 31, 2022 are as follows. Shares that
do not have a market value (balance sheet amount: investment securities of 118,850 thousand yen and Investment securities insubsidiaries and associates of 658,252 thousand yen) are not included in the following table.
In addition, notes are omitted for cash and deposits, Notes receivable-trade, Accounts receivable-trade, Electronicallyrecorded monetary claims-operating, Accounts receivable-other, Notes payable-trade, Electronically recorded obligationsoperating, Accounts payable-trade, Short-term loan payable, Accounts payable-other, and Deposits received because they aresettled in a short period of time and their market value approximates the book value.

(1) Derivatives assets(2) Investment securities

Carrying amounts *149,378

Fair value *149,378¥ in thousands
Differences-114,441
343,471(502,222)(135,142)

114,441
334,399(423,802)(135,142)(9,071)
78,419-Available-for-sale securities(3) Lease and guarantee deposits(4) Lease obligations(5) Derivatives liabilities* Liabilities are presented in parentheses.

Note 1: Matters concerning the calculation of the fair value of financial instrument, and investment securities and derivatives(1) Derivatives assets and (5) Derivatives liabilities
The fair values of these items are estimated based on the market prices of similar contracts.
(2) Investment securities
The fair values of investment securities are estimated based on the prices quoted by the securities exchanges.
(3) Lease and guarantee deposits
The fair values of lease and guarantee deposits are estimated by discounting future cash flows to be generated at the time
when the properties are expected to be surrendered, by the yields of government bonds.
(4)Lease obligation
The fair values of these items are estimated by discounting future cash flows by interest rates that would be used forentering into lease agreements under the same terms and conditions and for the same remaining terms.

Notes to transactions with related parties

Note 1: The transaction amounts do not include consumption taxes.
Note 2: The Company receives a tax refund of certain individually attributable portions of income taxes
paid on a consolidated basis.
Note 3: Regarding fund deposits, since it is difficult to grasp the transaction amount and the settlementof funds is being performed at any time, the average balance during the period is stated.
Notes to per share information
1. Net assets per share
2. Net income per share
Significant subsequent events
Not applicable¥4,357.40¥974.90