Balance Sheet
As of March 31, 2021
Account
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims-operating

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

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

Total assets

AmountAccount
Liabilities¥ in thousands
Amount53,565,440
14,362
1,014,357
3,367,880
35,222,271
6,992,830
4,090,324
199,660
447,856
2,233,817(17,919)

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

47,888,942
279,755
4,397,166
31,229,4871,178,836
76,832
1,066,126
97,986
9,026,542
25,590388,479
122,137

2,781,287
844,900
170,471
69,17956,383
1,776
547,090

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

681,404
473,405
7,994
200,004

85,34085,3401,851,047
252,749
658,252
344,156
358,731
162,851
84,586(10,279)

56,346,728

Total liabilities

48,570,347

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

7,710,115
5,300,000
3,831
3,831Retained earnings
Legal reserve
Other retained earnings
General reserve
Retained earnings brought forward

2,406,283
476,418
1,929,865
781,241
1,148,624

Valuation and translation adjustments
Net unrealized gain on available-for-sale securities
Deferred gain on hedges
Total net assets
Total liabilities and net assets

66,26649,426
16,8407,776,382
56,346,728

Statement of Income
From April 1, 2020
To March 31, 2021
¥ in thousands

Account

AmountNet sales

62,884,417

Cost of sales

55,249,673
7,634,743

Gross profit

6,635,420

Selling, general and administrative expenses

999,322

Operating profit
Non-operating income
Interest income369

Foreign exchange gains

62,755

Dividend income

29,991

Purchase discounts

28,738Gain on refunds of individually attributable amounts of consolidated taxes

Other non-operating income

196,597
16,133

334,585

Non-operating expenses
Interest expenses

19,953

Other non-operating expenses

24,155

44,1081,289,800

Ordinary profit
Extraordinary gains
Gain on sales of investment securities

4,122

4,122

55

Extraordinary losses
Loss on sales of investment securities

1,293,917

Net income before income taxes
Income taxes - current
Income taxes - deferred
Net income

521,126(169,133)

351,993
941,924

Statement of Changes in Net Assets
From April 1, 2020 to March 31, 2021

¥ in thousands
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Common stock

Balance at the beginning of the year

5,300,000

Additional
paid-in capital

Total capitalsurplus

Legal reserve

3,831

3,831

287,418

Total
shareholders'equity

General reserve

Retainedearnings
brought forward

Total retainedearnings

781,241

2,280,699

3,349,359

8,653,190(1,885,000)(1,885,000)(1,885,000)(189,000)00

941,924

941,924

941,924

Change of items during the year
Dividends of surplus
Provision of legal reserve associated with dividends ofsurplus

189,000

Net income
Net change in items other thanshareholders' equity

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

189,000-(1,132,075)(943,075)(943,075)

5,300,000

3,831

3,831

476,418

781,241

1,148,624

2,406,283

7,710,115

Valuation and translation adjustments
Net unrealized
gain onDeferred gain
available-for-saleon hedges
securities
Balance at the beginning of the year

29,737(79,565)

Total valuation Total net assets
and translation
adjustments(49,827)

8,603,362

Change of items during the year
Dividends of surplus(1,885,000)

Provision of legal reserve associated with dividends ofsurplus

0

Net income
Net change in items other thanshareholders' equity

941,924
19,68996,405116,094

116,094

Total change of items during the year

19,68996,405116,094(826,980)

Balance at the end of the year

49,426

16,84066,266

7,776,382Notes to Non-Consolidated Financial Statements
Notes on significant accounting policies
1. Valuation basis and methods for assets(1)

Valuation basis and methods for securities
Available-for-sale securities
Investment securities with fair value

Stated at fair value based on the quoted market prices at the end of the current fiscal year
(Net unrealized gains or losses on shares and other securities are included in net assets
and the cost of securities sold is determined using the moving average method.)

Investment securities without fair value

Stated at cost, determined using the moving-average method

Shares of subsidiaries and associates

Stated at cost, determined using the moving-average method(2)

Valuation basis and method for derivatives

Stated at fair value(3)

Valuation basis and method for inventories

Stated at cost, determined using the moving-average method(Carrying amount is written down when the market price declines below cost.)

2. Depreciation methods for non-current assets(1)

Property, plant and equipment(except for leased assets)(2)

Intangible assets
Software(3)

Leased assets

Declining-balance method(For buildings acquired on or after April 1, 2016, the straight-line method is used.)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 ownership of the assets to thelessee are depreciated using the straight-line method over the lease period, assuming noresidual value.

3. Recognition basis for allowances(1)

Allowance for doubtful receivables

Allowance for doubtful receivables is recognized at the estimated amounts ofuncollectible accounts receivable from customers.
As for general receivables, the allowance is estimated based on the customers' financial
position and internal credit ratings.
As for specific doubtful accounts, their collectibility is individually reviewed and theallowance is recognized at the estimated uncollectible amounts.

(2)

Allowance for bonuses

Allowance for bonuses is recognized at the estimated amount of bonuses attributable tothe current fiscal year in preparation for the payment of bonuses to employees.

(3)Allowance for retirement benefits

Allowance for retirement benefits for employees is recognized based on the estimatedamounts of projected retirement benefit obligations and plan assets at the end of thecurrent fiscal year.
In determining the projected retirement benefit obligations, benefit calculation formula

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

(4)

Allowance for directors' retirement benefits

Allowance for directors' retirement benefits is recognized based on the amounts that arepayable at the end of the current fiscal year in accordance with the Company's Directors'
Retirement Benefits Payment Rule.

4. Other significant basis for preparation of the financial statements(1)

Hedge accounting

Method of hedge accounting
Gains and losses on hedging instruments are generally deferred until the designatedhedged items are realized.
Hedging instruments, hedged items, and hedging policy
The Company hedges its exposure to fluctuations in foreign currency exchange rates inaccordance with its internal rules.
The hedging instruments and hedged items to which hedge accounting is applied during
the current fiscal year are as follows:
Hedging instruments:

Forward exchange contracts

Hedged items:

Forecasted transactions denominated in foreign currencies

Assessment of hedge effectiveness
The quantitative effectiveness test is omitted, because the critical terms of forecasted
transactions correspond with those of forward exchange contracts, and the hedge
relationship is considered to be perfectly effective.

(2)

Accounting for consumption taxes and others

Consumption taxes are accounted for using the tax-exclusion method, under which
consumption taxes are deducted from net sales, cost of sales and expenses.

(3)

Adoption of consolidated tax payment system(4)

Adoption of tax effect accounting related to thetransition from the consolidated tax payment system
to the group total system

The Company, as a consolidated subsidiary of Sumitomo Corporation, adopts theconsolidated tax payment system, under which Sumitomo Corporation is a consolidated
taxpayer.
Adoption of tax effect accounting for the transition from the consolidated tax payment
system to the group tax sharing system.
As for the items subjected to the transition to the group tax sharing system establishedunder the Act for Partial Amendment to the Income Tax Act, etc.,(Act No.8 of 2020), aswell as to the review of the non-consolidated taxation system in association therewith, theCompany has not applied the provisions of Section 44 of the Implementation Guidanceon Tax Effect Accounting (Accounting Standard Board of Japan ("ASBJ") Guidance
No.28.February 16,2018), but has applied the provisions of the Income Tax Act before
the amendment to the amounts of deferred tax assets and deferred tax liabilities, by virtueof Section 3 of the 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)

5. Accounting standards issued but not yet effective“Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020,)“Implementation Guidance on Accounting Standard for Revenue Recognition”(ASBJ Guidance No. 30, March 31, 2020)(1)

Overview

A comprehensive accounting standard for revenue recognition. Revenue is recognized byapplying the following five steps:
Step 1: Identify the contract with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when or as performance obligations are met.

(2)

Scheduled date of application

The above accounting standards will be applied from the beginning of the fiscal year
ending March 31, 2022.

(3)

Effect of the application of the above accounting
standards, etc.

The effect of applying "Accounting Standards for Revenue Recognition" on the financial
statements is currently being evaluated and the amount is undetermined. For transactions
in which the Company acts as an agent, the revenue is recognized on a net basis. As aresult, it is expected that net sales will decrease.

Notes to the balance sheet
1. Accumulated depreciation of property, plant and equipment

391,045 thousand yen

2. Guarantee obligations
A guarantee is provided for a subsidiary's debt obligations to a financial institution.
354,000 thousand yen

SC Machinex Asia Ltd.
3. Monetary receivables and payables to subsidiaries and affiliates
Short-term monetary receivables
Long-term monetary receivables

3,086,685 thousand yen
295,590 thousand yen

Short-term monetary payables

581,375 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, 2021)
Plan assets

44,897,599 thousand yen

Pension obligations under pension financial calculation

41,101,609 thousand yen

Balance

3,795,989 thousand yen(2) Percentage of contributions paid by the Company under the scheme (as of March 31, 2021)1.94%
Notes to the Statement of Income
1. Operating transactions with subsidiaries and affiliates
Sales

2,832,071 thousand yen

Purchases

611,150 thousand yen

Selling, general, and administrative expenses

653,158 thousand yen

2. Non-operating transactions with subsidiaries and affiliates

224,090 thousand yen

Notes to the Statement of Changes in Net Assets
1. Number of issued shares as of the end of the current fiscal year
Ordinary shares
2. Distribution of surplus made during the current fiscal year

2,000,000 shares
The year-end dividends was approved at a shareholders' meeting held on
June 23, 2020 as follows:
Dividends:
Dividend per share:
Date of right allotment:
Effective date:¥1,885,000,000¥942.50
March 31, 2020
June 23, 2020

3. Distribution of surplus to be made after the end of the current The following year-end dividends will be proposed at a shareholders'
fiscal year
meeting to be held on June 22, 2021 as follows:
Dividends:
Dividend per share:
Date of right allotment:
Effective date:
Dividends are paid out of:¥1,045,000,000¥522.50
March 31, 2021
June 22, 2021
Other retained earningsNotes on 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

5,555 thousand yen

Allowance for bonuses

20,516 thousand yen
120,428 thousand yen

Business taxes payable

21,057 thousand yen

Asset retirement obligations

62,001 thousand yen

Loss on valuation of shares of subsidiaries and associates

43,613 thousand yen

Tax sales recognition

185,866 thousand yen

Depreciation

12,465 thousand yen

Other16,353 thousand yen

Total deferred tax assets

487,862 thousand yen

Deferred tax liabilities
Unrealized gain on available-for-sale securities(22,206) thousand yen

Deffered gain on hedges(7,565) thousand yen

Prepaid pension cost

(50,483) thousand yen

Asset retirement cost
Total deferred tax liabilities(48,874) thousand yen(129,130) thousand yen

Net deferred tax assets

358,731 thousand yen

Notes on financial instruments
1. Status of financial instruments
The Company limits its investments to short-term deposits and raises funds through loans from Sumitomo Corporation.
The Company monitors the credit risk of customers to mitigate credit losses in accordance with its management rules.
The Company monitors the fair value of investment securities which mainly comprise equity instruments on a quarterly basis.
The Company finances its working capital through borrowings. Derivative contracts are entered into to hedge the foreign
currency risks of forecasted transactions in accordance with internal foreign currency risk management rules.

2. Fair value of financial instruments
The carrying amounts, fair values, and the differences between them for financial instruments held as of March 31, 2021 are
as follows:(1)(2)(3)(4)
(5)
(6)
(7)
(8)

Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims-operating

Accounts receivable-trade
Accounts receivable-otherDerivatives assets
Deposits paid
Investment securities
Available-for-sale securities(9) Lease and guarantee deposits(10) Notes payable-trade

Carrying amounts *14,362
1,014,357
3,367,880
35,222,271
199,660
120,326
1,894,809

Fair value *14,362
1,014,357
3,367,880
35,222,271
199,660
120,326
1,894,809¥ in thousands
Differences-

128,149
344,156(279,755)

128,149
339,488(279,755)(4,668)-(4,397,166)(31,229,487)(1,178,836)(550,238)(1,066,126)(25,590)(106,322)(4,397,166)(31,229,487)(1,178,836)(475,354)(1,066,126)(25,590)(106,322)

74,884-(11) Electronically recorded obligations-operating(12) Accounts payable-trade(13) Short-term loan payable(14) Lease obligations(15) Accounts payable-other(16) Deposits received(17) Derivatives liabilities* Liabilities are presented in parentheses.

Note 1: Calculation method of the fair value of financial instruments, and the matters relating to securities and derivatives(1) Cash and deposits (2) Notes receivable-trade (3) Electronically recorded monetary claims -operating (4) Accounts
receivable-trade (5) Accounts receivable-other (7) Deposits paid
The fair values of these items approximates the carrying amounts as they are settled in the short term.
(6) Derivatives assets (17) Derivatives liabilities
The fair values of these items are estimated based on the prices obtained from the counterparty financial institutions.
(8) Investment securities
The fair values of investment securities are estimated based on the prices quoted by the securities exchange.
(9) Lease and guarantee deposits
The fair values of lease and guarantee deposits are estimated by discounting future cash flows to be generated when theproperties are expected to be surrendered, by the yields of government bonds.
(10) Notes payable-trade (11) Electronically recorded obligations-operating (12) Accounts payable-trade (13)Short-termloan payable (15) Accounts payable-other (16) Deposits received
The fair values of these items approximate the carrying amounts as they are settled in the short term.
(14)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.

Note 2: Unlisted shares (investment securities of 124,600 thousand yen and shares of subsidiaries andassociates of 658,252 thousand yen, as shown on the balance sheet) have no market value and their future
cash flows are not able to be estimated, and it is extremely difficult to determine their fair value.
Therefore, these unlisted shares are not included in “(8) Investment securities, Available-for-sale securities”.

Notes on 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: As for fund deposits, the average balance during the period is stated because settlement of funds
is made at any time and it is difficult to identify the transaction amount.
Note 4: The acquisition cost of shares is determined through discussions based on net assets.

Notes on per share information
1. Net assets per share¥3,888.19

2. Net income per share¥470.96

Significant subsequent events
Not applicable