Note: This is an excerpt translation of the “Yukashoken-Houkokusho” for the convenience of overseas stakeholders. In cases
where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail.
RIKEN TECHNOS CORPORATION assumes no responsibility for this translation or for direct, indirect or any other forms ofdamages arising from the translation.

Consolidated Financial Statements(Pursuant to Article 24, Paragraph 1 of theJapanese Financial Instruments and Exchange Act)
Business year:(91st term)

From April 1, 2019
to March 31, 2020

RIKEN TECHNOS CORPORATION
2-101, Kanda-Awajicho, Chiyoda-ku, Tokyo, Japan

Consolidated Financial Statements and Others(1) Consolidated Financial Statementsa. Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

*1
*4

1

17,550,326
26,020,053
6,918,874
785,762
5,222,601
1,408,509(96,701)
57,809,424

As of March 31, 2020

*4

18,342,206
24,398,163
6,474,606
788,560
4,720,146
1,168,234(84,898)
55,807,020

23,783,479(13,661,099)
10,122,379
51,070,338(41,526,892)
9,543,445
6,409,088
413,901(377,795)
36,105699,155
5,903,207(5,200,613)
702,593
27,512,767

24,615,064(14,508,337)
10,106,727
53,279,972(43,822,871)
9,457,101
6,354,579
395,943(369,029)
26,913
287,737
6,040,825(5,370,882)
669,943
26,903,003

100,221
7,998
1,696,276
1,804,497

743,518
5,251
1,266,508
2,015,278

5,734,433
48,255565,739
421,434
1,315,119(3,770)8,081,213
37,398,478
95,207,902

5,182,750
44,218
512,807508,798
898,773(3,770)7,143,578
36,061,860
91,868,881

(Thousands of yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors(and other officers)
Provision for share-based remuneration for
directors (and other officers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

*4
*3

*1

2

18,306,323
8,144,431
712,703
800,000
15,572
712,389
677,135

As of March 31, 2020

*4
*3

16,479,773
7,324,167
614,308－
15,252
423,546
596,165

103,007

72,0772,505,573
31,977,136

2,387,202
27,912,493

4,120,063
30,691
944,178

3,458,857
18,5281,042,985

141,291

86,841

158,100

178,922959,810
323,044
75,117
6,752,298
38,729,434

1,134,958
327,678
120,798
6,369,571
34,282,064

8,514,018
7,371,821
31,223,798(488,720)
46,620,918

8,514,018
7,373,812
33,252,502(1,444,377)
47,695,956

2,571,083

2,170,858

44,410(294,312)
2,321,182
7,536,367
56,478,468
95,207,902

218,900(375,387)
2,014,371
7,876,489
57,586,816
91,868,881

b.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal year ended
March 31, 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Environmental expenses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent*1, *3*2, *3

3

97,813,960
80,072,066
17,741,893
11,980,097
5,761,796

Fiscal year ended
March 31, 2020

*1, *3*2, *398,808,671
80,833,385
17,975,286
12,393,465
5,581,820

39,452150,9729,504
9,473
149,235
358,638

44,861
179,262–
67,791
140,437
432,352

216,402–34,515250,918
5,869,515

218,927
63,725
61,104
343,757
5,670,415

*4

5,253
292,203
19,487
316,944*4

344,967
71,324–416,291

*5
*6

1,742
23,61625,58750,946
6,135,514
1,708,244
55,8601,764,104
4,371,409
1,310,487
3,060,922

*5
*6

4,264
15,11141,80061,176
6,025,530
1,549,036
98,9201,647,956
4,377,573
1,313,224
3,064,349

Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal year ended
March 31, 2019
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests*1

4

Fiscal year ended
March 31, 2020

4,371,409

4,377,573(648,969)(638,621)
115,020(1,172,570)
3,198,839(400,205)
386,540(81,075)(94,740)
4,282,833*1

2,129,817

2,757,538

1,069,021

1,525,295

c. Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

8,514,018

Retained earnings

7,297,981

Treasury shares

28,937,991

Total shareholders’equity(828,559)

43,921,432

Changes during period
Dividends of surplus(771,686)(771,686)

Profit attributable toowners of parent

3,060,922

3,060,922

Purchase of treasury shares

(215)

(215)

340,053

409,300

Disposal of treasury shares

69,246

Other

4,593

(3,428)–73,8402,285,807

339,838

2,699,486

8,514,018

7,371,821

31,223,798(488,720)

46,620,918

Non-controllinginterests

Total net assets

7,680,481

54,854,201

1,164

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income3,219,427

442,192(409,332)

3,252,287

Changes during period
Dividends of surplus(771,686)

Profit attributable toowners of parent

3,060,922

Purchase of treasury shares(215)

Disposal of treasury shares409,300

Other
Net changes in items otherthan shareholders’ equity

1,164(648,343)(397,781)

115,020(931,104)(144,114)(1,075,218)

Total changes during period(648,343)(397,781)

115,020(931,104)(144,114)

1,624,267

Balance at end of period

2,571,083

44,410(294,312)

2,321,182

7,536,367

56,478,468

5

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31,)(Thousands of yen)

Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

8,514,018

7,371,821

Retained earnings

Treasury shares

31,223,798

Total shareholders’equity(488,720)

46,620,918

Changes during period
Dividends of surplus(1,029,754)(1,029,754)

Profit attributable toowners of parent

3,064,349

3,064,349

Purchase of treasury shares(1,513,092)(1,513,092)

557,435

563,967

Disposal of treasury shares

6,531

Other

(4,540)(5,891)–

1,991

2,028,703(955,656)

1,075,038

8,514,018

7,373,812

33,252,502(1,444,377)

47,695,956

Non-controllinginterests

Total net assets

7,536,367

56,478,468(10,431)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income2,571,083

44,410(294,312)

2,321,182

Changes during period
Dividends of surplus(1,029,754)

Profit attributable toowners of parent

3,064,349

Purchase of treasury shares(1,513,092)

Disposal of treasury shares

563,967

Other(10,431)

Net changes in items otherthan shareholders’ equity(400,225)

174,489(81,075)(306,811)

340,12133,309Total changes during period(400,225)

174,489(81,075)(306,811)

340,121

1,108,348

Balance at end of period

2,170,858

218,900(375,387)

2,014,371

7,876,489

57,586,816

6d.

Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2019

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Gain on bargain purchase
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for share-based
remuneration for directors (and other officers)
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant andequipment
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Collection of loans receivable
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

7

Fiscal year ended
March 31, 2020

6,135,514
3,657,027
199,201(19,487)
21,477

6,025,530
3,886,555
156,703–(80,324)

32,584(30,930)(10,978)(10,825)(136,041)

130,51464,52540,490775(54,450)(190,424)
216,402(292,203)(224,123)
218,927(71,324)(3,511)(340,702)

23,616(407,027)(783,689)
290,318
140,797(130,550)
8,808,326
188,996(211,962)(1,467,653)
7,317,707

15,111
1,732,420
1,039,698(1,917,065)(70,451)
203,468
10,649,225
224,842(221,867)(1,846,772)
8,805,427(27,768)
134,732(3,610,130)(40,124)
24,153(2,738,127)

9,904

647,307(212,510)(986)
302,650
3,043(939,908)(3,016)
128,568
3,333(83,041)–

235,764–

15,390(3,232,951)

392,516(2,525,296)

(Thousands of yen)
Fiscal year ended
March 31, 2019
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of lease obligations
Proceeds from sales of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*18

Fiscal year ended
March 31, 2020

1,036,900
100,000(565,248)(130,000)(13,875)–(215)(770,008)(1,219,954)(1,562,401)(729,395)
35,000(743,885)(456,325)(15,769)
160,473(1,513,092)(1,029,976)(1,187,189)(5,480,159)(142,195)(24,059)

2,380,158
14,655,955
17,036,114

775,912
17,036,114
17,812,026*1

Notes to Consolidated Financial Statements
Significant Matters in Preparing Consolidated Financial Statements
1. Basis of presentation of consolidated financial statements
The accompanying consolidated financial statements of RIKEN TECHNOS CORPORATION (the“Company”) and its consolidated subsidiaries have been prepared in accordance with the provisions set
forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, andin accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), which are
different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards (“IFRS”).
In addition, amounts are rounded down to the nearest thousand yen.
2. Scope of consolidation(a) Number of consolidated subsidiaries: 23 as of March 31, 201921 as of March 31, 2020
All the subsidiaries have been included in the scope of consolidation.
From the fiscal year ended March 31, 2020, m.d.l Co., Ltd., which was a consolidated subsidiary in thefiscal year ended March 31, 2019, has been removed from the scope of consolidation due to a merger
with I.M.I Co., Ltd., the surviving company of the merger. RIKEN TECHNOS INTERNATIONAL
PTE. LTD. has been removed from the scope of consolidation due to the completion of the liquidationof the company.
Names of principal consolidated subsidiaries are as follows:
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Company name
RIKEN CABLE TECHNOLOGY CO., LTD.
KYOEI PLASTIC MFG CO., LTD.
RIKEN TECHNOS INTERNATIONAL CORPORATIONRIKEN CHEMICAL PRODUCTS CORPORATIONRIKEN FABRO CORPORATION
I.M.I Co., Ltd.
m.d.l Co., Ltd.
RIKEN (THAILAND) CO., LTD.
RIKEN ELASTOMERS (THAILAND) CO., LTD.
PT. RIKEN INDONESIASHANGHAI RIKEN TECHNOS CORPORATIONRIKEN TECHNOS (JIANG SU) CORPORATIONRIKEN (SHANGHAI) CORPORATIONRIKEN TECHNOS INTERNATIONAL PTE. LTD.
RIKEN TECHNOS INTERNATIONAL KOREA CORPORATIONRIKEN VIETNAM CO., LTD.
RIKEN TECHNOS INTERNATIONAL VIETNAM CO., LTD.
RIKEN TECHNOS INDIA PVT. LTD.
RIKEN U.S.A. CORPORATIONRIKEN AMERICAS CORPORATIONRIMTEC CORPORATIONRIKEN ELASTOMERS CORPORATIONRIKEN TECHNOS EUROPE B.V.

9

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Company name
RIKEN CABLE TECHNOLOGY CO., LTD.
KYOEI PLASTIC MFG CO., LTD.
RIKEN TECHNOS INTERNATIONAL CORPORATIONRIKEN CHEMICAL PRODUCTS CORPORATIONRIKEN FABRO CORPORATION
I.M.I Co., Ltd.
RIKEN (THAILAND) CO., LTD.
RIKEN ELASTOMERS (THAILAND) CO., LTD.
PT. RIKEN INDONESIASHANGHAI RIKEN TECHNOS CORPORATIONRIKEN TECHNOS (JIANG SU) CORPORATIONRIKEN (SHANGHAI) CORPORATIONRIKEN TECHNOS INTERNATIONAL KOREA CORPORATIONRIKEN VIETNAM CO., LTD.
RIKEN TECHNOS INTERNATIONAL VIETNAM CO., LTD.
RIKEN TECHNOS INDIA PVT. LTD.
RIKEN U.S.A. CORPORATIONRIKEN AMERICAS CORPORATIONRIMTEC CORPORATIONRIKEN ELASTOMERS CORPORATIONRIKEN TECHNOS EUROPE B.V.

(b) The Company has no unconsolidated subsidiaries.
3. Application of equity method
The Company has no associates.
4. Fiscal year-end of consolidated subsidiaries
The consolidated subsidiaries whose balance sheet date is different from the consolidated balance sheet
date are as follows:
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Company name
Balance sheet date
RIKEN CABLE TECHNOLOGY CO., LTD.
December 31 *1
KYOEI PLASTIC MFG CO., LTD.
December 31 *1
RIKEN TECHNOS INTERNATIONAL CORPORATION
December 31 *1
RIKEN CHEMICAL PRODUCTS CORPORATION
December 31 *1
RIKEN FABRO CORPORATION
December 31 *1
I.M.I Co., Ltd.
December 31 *1
m.d.l Co., Ltd.
December 31 *1
RIKEN (THAILAND) CO., LTD.
December 31 *1
RIKEN ELASTOMERS (THAILAND) CO., LTD.
December 31 *1
PT. RIKEN INDONESIA
December 31 *1
SHANGHAI RIKEN TECHNOS CORPORATION
December 31 *1
RIKEN TECHNOS (JIANG SU) CORPORATION
December 31 *1
RIKEN (SHANGHAI) CORPORATION
December 31 *1
RIKEN TECHNOS INTERNATIONAL PTE. LTD.
December 31 *1
RIKEN TECHNOS INTERNATIONAL KOREA CORPORATION
December 31 *1
RIKEN VIETNAM CO., LTD.
December 31 *1
RIKEN TECHNOS INTERNATIONAL VIETNAM CO., LTD.
December 31 *1
RIKEN TECHNOS INDIA PVT. LTD.
December 31 *1
RIKEN U.S.A. CORPORATION
December 31 *1
RIKEN AMERICAS CORPORATION
December 31 *1
RIMTEC CORPORATION
December 31 *1
RIKEN ELASTOMERS CORPORATION
December 31 *1
RIKEN TECHNOS EUROPE B.V.
December 31 *1*1. The financial statements as of the balance sheet date of the consolidated subsidiaries are used. However, formajor transactions that occurred between that date and the consolidated balance sheet date, the necessary
adjustments are made in the consolidated financial statements.

10

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Company name
Balance sheet date
RIKEN CABLE TECHNOLOGY CO., LTD.
December 31 *1
KYOEI PLASTIC MFG CO., LTD.
December 31 *1
RIKEN TECHNOS INTERNATIONAL CORPORATION
December 31 *1
RIKEN CHEMICAL PRODUCTS CORPORATION
December 31 *1
RIKEN FABRO CORPORATION
December 31 *1
I.M.I Co., Ltd.
December 31 *1
RIKEN (THAILAND) CO., LTD.
December 31 *1
RIKEN ELASTOMERS (THAILAND) CO., LTD.
December 31 *1
PT. RIKEN INDONESIA
December 31 *1
SHANGHAI RIKEN TECHNOS CORPORATION
December 31 *1
RIKEN TECHNOS (JIANG SU) CORPORATION
December 31 *1
RIKEN (SHANGHAI) CORPORATION
December 31 *1
RIKEN TECHNOS INTERNATIONAL KOREA CORPORATION
December 31 *1
RIKEN VIETNAM CO., LTD.
December 31 *1
RIKEN TECHNOS INTERNATIONAL VIETNAM CO., LTD.
December 31 *1
RIKEN TECHNOS INDIA PVT. LTD.
December 31 *1
RIKEN U.S.A. CORPORATION
December 31 *1
RIKEN AMERICAS CORPORATION
December 31 *1
RIMTEC CORPORATION
December 31 *1
RIKEN ELASTOMERS CORPORATION
December 31 *1
RIKEN TECHNOS EUROPE B.V.
December 31 *1*1. The financial statements as of the balance sheet date of the consolidated subsidiaries are used. However, formajor transactions that occurred between that date and the consolidated balance sheet date, the necessary
adjustments are made in the consolidated financial statements.

5. Accounting policies(a) Valuation methods for significant assetsi) Securities(1) Held-to-maturity bonds
Stated at amortized cost (straight-line method).
(2) Available-for-sale securities
With market value
Stated at fair value based on market price and other fair values as of the balance sheet date(unrealized gains and losses, net of applicable taxes, are reported in a separate component of
net assets, and costs of securities sold are determined by the moving-average method).
Without market value
Stated at cost determined by the moving-average method.
ii) Derivatives
Stated at fair value.
iii) Inventories
Inventories of the Company and domestic consolidated subsidiaries are mainly stated at cost
determined by the moving-average method (the carrying amounts in the consolidated balance sheets
are written down due to a decline in profitability). Inventories of overseas consolidated subsidiaries
are mainly stated at the lower of cost or market, determined by the average method.
(b) Depreciation and amortization of significant assetsi) Property, plant and equipment (excluding leased assets)
The Company and domestic consolidated subsidiaries mainly apply the declining-balance method.
However, buildings acquired on or after April 1, 1998 (excluding facilities attached to buildings),
and facilities attached to buildings and structures acquired on or after April 1, 2016 are depreciatedby the straight-line method. Overseas consolidated subsidiaries apply the straight-line method.
The estimated useful lives of major items are as follows:11Buildings and structures

3 to 47 years

Machinery, equipment and vehicles

4 to 10 yearsii) Intangible assets (excluding leased assets)
The Company and domestic consolidated subsidiaries apply the straight-line method.
Internal use software is amortized by the straight-line method over its estimated useful life asinternally determined (five years).
iii) Leased assets
The Company and domestic consolidated subsidiaries apply the straight-line method assuming thelease periods as useful lives with no residual value.
(c) Significant allowancesi) Allowance for doubtful accounts
To cover losses from bad debts for notes and accounts receivable - trade, loans receivable and others,
an allowance for doubtful accounts is provided based on historical experience of bad debts forgeneral receivables. For specific receivables, such as highly doubtful receivables, the collectibility is
individually considered and the estimated amount of uncollectible accounts is provided as theallowance.
ii) Provision for bonuses
To cover bonus payments to employees, a provision for bonuses is provided in the amount to be paid
for services rendered by employees during the fiscal year based mainly on the estimated amount of
future bonus payment.
iii) Provision for bonuses for directors (and other officers)
To cover bonus payments to Directors (excluding Directors who are Audit & Supervisory
Committee Members) and Executive Officers, the Company records a provision for bonuses for
directors (and other officers) in the amount of the portion applicable to the fiscal year, based on theestimated amount of future bonus payment.
iv) Provision for retirement benefits for directors (and other officers)
To cover retirement benefits payments to Directors (and other officers), some consolidated
subsidiaries record the necessary payment amount at the end of the fiscal year based on internal rules.
v) Provision for share-based remuneration for directors (and other officers)
To cover provision of shares in the Company to Directors and Executive Officers, the Company
records a provision for executive officer incentive plan trust based on the estimated amount of shareprovision obligations as of the end of the current fiscal year.
(d) Method of recognizing retirement benefitsi) Method of attributing estimated retirement benefits to periods
For the purpose of attributing estimated retirement benefits to periods up to the end of the current
fiscal year in the calculation of retirement benefit obligations, the benefit formula method is applied.
ii) Method of amortizing actuarial differences and past service cost
Past service cost is amortized by the straight-line method over a certain term within the averageremaining service period of the eligible employees (13 years).
With regard to actuarial differences, the amount is amortized by the straight-line method over acertain term within the average remaining service period of the eligible employees (13 years) for
each applicable fiscal year, and expensed from the year following the year in which the gain or loss
is recognized.
iii) Method of accounting for unrecognized actuarial differences and unrecognized past service cost
Unrecognized actuarial differences and unrecognized past service cost are recognized inremeasurements of defined benefit plans under accumulated other comprehensive income in net
assets after adjusting for tax effects.

12iv) Application of simplified accounting method at small companies
Some consolidated subsidiaries apply a simplified accounting method in which the retirement
benefit liability and retirement benefit expenses are calculated by using a method in which theamount of retirement benefits to be paid in cases where all eligible employees retired at the fiscal
year-end date is regarded as retirement benefit obligations.
(e) Significant hedge accountingi) Hedge accounting
For foreign currency-denominated monetary receivables and others that have been hedged byforward exchange contracts, the allocation method is used. For interest rate swap contracts, theCompany and its domestic consolidated subsidiaries apply the method in which the amount paid or
received under the swap contract is added to or deducted from the interest on the hedged assets andliabilities (the exceptional accrual method), in cases where the requirements for the method aresatisfied.
ii) Hedging instruments and hedged items
 Hedging instruments
Forward exchange contracts and interest rate swap contracts
 Hedged items
Foreign currency-denominated accounts receivable - trade related to exports of finished goods andinterest on borrowingsiii) Hedging policy
Forward exchange contracts are only used within the scope of actual need in order to hedge the riskof fluctuations in foreign exchange rates. Interest rate swap contracts are used to hedge the interest
rate fluctuation risk. Entering into derivative transactions for trading or speculative purposes is
prohibited.
iv) Assessment of hedge effectivenessAn assessment of hedge effectiveness is omitted for forward exchange contracts to which theallocation method is applied and interest rate swap contracts that satisfy the requirements for the
exceptional accrual method.
(f) Method and period for amortization of goodwill
Goodwill is amortized evenly over the period, not exceeding 20 years, during which the goodwill has
an effect. However, when the amount of goodwill is insignificant, it is charged to income at the date ofoccurrence.
(g) Scope of cash and cash equivalents in consolidated statements of cash flows
Funds (cash and cash equivalents) in the consolidated statements of cash flows consist of cash on hand,readily available deposits, and highly liquid short-term investments with original maturities of threemonths or less that are subject to an insignificant risk of changes in value.
(h) Other significant matters in preparing consolidated financial statementsi) Accounting for deferred assets
Bond issuance cost is expensed as paid.
ii) Accounting for consumption taxes
Transactions subject to consumption tax and local consumption tax are recorded at amounts
exclusive of taxes.

13Accounting Standards Issued but Not Yet Applied“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement
No. 29, March 31, 2020)“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30,
March 31, 2020)(1) Overview
It is a comprehensive accounting standard for revenue recognition. Revenue is recognized by applying thefollowing five steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation(2) Scheduled date of adoption
The Company expects to adopt the accounting standard and the implementation guidance from the
beginning of the fiscal year ending March 31, 2022.
(3) Effects of adoption of the accounting standards
The Company is currently assessing the effect of the adoption of the accounting standard and theimplementation guidance on its consolidated financial statements.
“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections” (ASBJ
Statement No. 24, March 31, 2020)(1) Overview
It is to provide an overview of accounting principles and procedures adopted, when the relevant accounting
standards, etc. are not definitive.
(2) Scheduled date of adoption
The Company expects to adopt the accounting standard from the end of the fiscal year ending March 31,
2021.
Changes in Presentation(Consolidated Statements of Income)“Surrender value of insurance policies,” which was included in “Other” under “Non-operating income” inthe previous fiscal year, has been presented separately from the current fiscal year as it accounts for morethan 10% of total non-operating income. To reflect this change in presentation, the consolidated financial
statement for the previous fiscal year has been reclassified.
As a result, 158,709 thousand yen, which was presented as “Other” under “Non-operating income” in the
consolidated statement of income for the previous fiscal year, has been reclassified as “Surrender value of
insurance policies” of 9,473 thousand yen and “Other” of 149,235 thousand yen.

14

Additional Information(Transactions of delivering the Company’s own stock to employees etc. through trusts)(1) Board Benefit Trust (BBT)In accordance with the resolution at the 87th Ordinary General Meeting of Shareholders held on June 24,
2016, the Company introduced a new stock-based compensation plan “Board Benefit Trust (BBT)” on
September 14, 2016, for the purpose of raising awareness of Directors who execute business (excluding
Directors who are Audit & Supervisory Committee Members) and Executive Officers toward theircontributions to improving the mid- to long-term corporate performance and increasing the corporate
value as well as making Directors who do not execute business (excluding Directors who are Audit &Supervisory Committee Members) and Directors who are Audit & Supervisory Committee Members
contribute to increasing the mid- to long-term corporate value through supervision or audit.
(a) Overview of transactions
Based on the officers’ stock benefit plan which was established in advance, the Company and its
group companies (the “Group”) grant points to Directors etc. (Directors and Executive Officers). At
the time of their retirement, the Group provides shares in the Company to the Directors etc. who
satisfy requirements for beneficiaries in proportion to the points which the Group has granted to them.
With regard to the shares which will be provided to Directors etc. in the future, a trust bank acquires
the Company’s treasury shares through third-party allotment by using the money contributed by theCompany. Such shares are managed as trust assets separately.
(b) Shares in the Company remaining at the trust
The shares in the Company remaining at the trust are recorded as the treasury shares in net assets withthe book value (excluding associated costs) at the trust. The book value and number of these treasury
shares as of the end of the previous fiscal year were 206,299 thousand yen and 476 thousand shares,
respectively, while those as of the end of the current fiscal year were 345,779 thousand yen and 752
thousand shares, respectively.
(c) Book value of borrowings recorded due to the application of the gross method
Not applicable.
(2) Stock Benefit Trust (Employee Stockholding Association Purchase-type)
For the purpose of promoting welfare benefits for employees and giving incentives pertaining to theimprovement of corporate value of the Company, the Company introduced “Stock Benefit Trust(Employee Stockholding Association Purchase-type)” (hereinafter referred to as the “Plan”), pursuant to
the resolution at the Board of Directors meeting held on May 24, 2017.
(a) Overview of transactions
The Plan is an incentive plan under which the benefits of a rise in the Company’s stock price arepassed along to all the employees who are members of the “RIKEN TECHNOS Employee
Stockholding Association” (hereinafter referred to as the “Stockholding Association”).
A trust bank as the trustee of the Plan acquires shares in the Company that are expected to beacquired by the Stockholding Association over the five years after the establishment of the trust, en
bloc in advance, and sells those shares in the Company to the Stockholding Association as needed
when it acquires the shares.
If the amount equivalent to gain on sales of shares by the trust bank was accumulated in trust assets
by the termination of this trust through the sale of shares to the Stockholding Association, theaccumulated amount is distributed as residual assets to the members of the Company’s employee
Stockholding Association who satisfy eligibility requirements for beneficiaries.
The Company has guaranteed loans that the trust bank received to acquire shares in the Company.
Therefore, if there is remaining loan amount that is equivalent to loss on sales of shares in the
Company due to a decline in the Company’s stock price at the time of termination of the trust, theCompany is required to pay the remaining loan amount under the guarantee agreement.

15

(b) Shares in the Company remaining at the trust
The shares in the Company remaining at the trust are recorded as the treasury shares in net assets withthe book value (excluding associated costs) at the trust. The book value and number of these treasury
shares as of the end of the previous fiscal year were 79,750 thousand yen and 145 thousand shares,
respectively, while those as of the end of the current fiscal year were 39,600 thousand yen and 72
thousand shares, respectively.
(c) Book value of borrowings recorded due to the application of the gross method
46,532 thousand yen as of the end of the current fiscal year
Impact, etc. of the novel coronavirus disease (COVID-19)
The consolidated financial statement for the current fiscal year, as well as our manufacturing including
procurement of raw materials, have not been affected by COVID-19 significantly. The impact on sales is also
extremely limited. In making accounting estimates (judgments regarding the recoverability of deferred tax
assets and review of property, plant and equipment for impairment, etc.), we use certain assumptions such as
the time required for bringing COVID-19 under control and impact on financial results, based on theinformation available at the time of preparing the consolidated financial statements. We determined that theeffect on accounting estimates caused by these assumptions is negligible.
If, however, the state of COVID-19 cannot be brought under control for a long time or further worsens,
procurement of raw materials, etc. and manufacturing may be delayed or suspended, or sales may drop, which
can have an impact on the consolidated financial statements.

16

Notes to Consolidated Balance Sheets*1. Pledged assets and secured liabilities
Assets pledged as collateral and secured liabilities are as follows:
As of March 31, 2019
Cash and deposits

100,000

As of March 31, 2019
Long-term borrowings

100,000(Thousands of yen)
As of March 31, 2020–
(Thousands of yen)
As of March 31, 2020–

2. Notes receivable endorsed
As of March 31, 2019
Notes receivable endorsed

2,215(Thousands of yen)
As of March 31, 2020
1,041

*3. Overdraft agreements and unused overdraft facility balanceTo efficiently secure equipment funds, the Company and its domestic consolidated subsidiaries haveentered into overdraft agreements with banks with which they do business. The unused balance of theseprescribed limit agreements at the fiscal year-end is as follows:
As of March 31, 2019

(Thousands of yen)
As of March 31, 2020

Total overdraft facility limit
Outstanding borrowings within the limit

12,180,000
4,715,000

12,180,000
4,635,000

Unused balance

7,465,000

7,545,000*4. The notes maturing on the balance sheet date are accounted for as if they were settled on the maturity date.
As the balance sheet date fell on a holiday of financial institutions, the following notes matured on thebalance sheet date were accounted for as if they were settled on the maturity date.
As of March 31, 2019
Notes receivable - trade
Notes payable – trade905,865
3,678

17(Thousands of yen)
As of March 31, 2020
77,7019,858

Notes to Consolidated Statements of Income*1. The inventory balance at the fiscal year-end is presented after book values were written down due to a
decline in profitability of assets and the following losses (gains) on valuation of inventories are included
in cost of sales.
(Thousands of yen)
Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2019(10,119)(164,536)*2. Main components of selling, general and administrative expenses are as follows:
Fiscal year ended
March 31, 2019
3,065,186
921,486
2,305,457
196,938
210,956
103,007(12,381)
1,075,130

Freightage expenses
Commission fees
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Provision for bonuses for directors (and other officers)
Provision of allowance for doubtful accounts
Research and development expenses(Thousands of yen)
Fiscal year ended
March 31, 2020
3,010,946
1,045,647
2,609,800
152,739
216,043
67,709(12,510)
1,119,859*3. Research and development expenses included in selling, general and administrative expenses and cost of
sales are as follows:(Thousands of yen)
Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2019
1,470,428

1,448,121*4. The breakdown of gain on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2019
5,253
－
－

Machinery, equipment and vehicles
Land
Other
Total

5,253

(Thousands of yen)
Fiscal year ended
March 31, 2020
4,620
339,978368
344,967*5. The breakdown of loss on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2019
1,739
2

Machinery, equipment and vehicles
Other
Total

1,742

(Thousands of yen)
Fiscal year ended
March 31, 2020
3,818
446
4,264

*6. The breakdown of loss on retirement of non-current assets is as follows:
Fiscal year ended
March 31, 2019
6,937
15,753926

Buildings and structures
Machinery, equipment and vehicles
Other
Total

23,616

18(Thousands of yen)
Fiscal year ended
March 31, 2020
11,146
2,224
1,740
15,111

Notes to Consolidated Statements of Comprehensive Income*1. Reclassification adjustments and tax effects related to other comprehensive income
Fiscal year ended
March 31, 2019
Valuation difference on available-for-sale securities:
Amount arising during the period
Reclassification adjustments(Thousands of yen)
Fiscal year ended
March 31, 2020

(926,956)–(445,182)(52,524)

Before tax effect adjustments
Tax effect amount(926,956)
277,987(497,706)
97,501

Valuation difference on available-for-sale securities(648,969)(400,205)

Foreign currency translation adjustment:
Amount arising during the period
Reclassification adjustments(639,106)317

395,211(12,497)

Before tax effect adjustments
Tax effect amount(638,789)
167

382,713
3,826

Foreign currency translation adjustment(638,621)

386,540

Remeasurements of defined benefit plans, net of tax:
Amount arising during the period
Reclassification adjustments

54,624111,158(252,873)
136,016

165,782(50,762)(116,856)
35,781

Before tax effect adjustments
Tax effect amountRemeasurements of defined benefit plans, net of tax
Total other comprehensive income

19

115,020(81,075)(1,172,570)(94,740)

Notes to Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
1. Type and total number of issued shares and type and number of treasury shares
Number of sharesat the beginning of
the fiscal year

Increase(Thousands of shares)
Number of sharesat the end of
the fiscal year

Decrease

Issued shares
Common stock

66,113––

66,113

Total

66,113––

66,113

Common stock (Notes)

2,005

0

862

1,144

Total

2,005

0

862

1,144

Treasury shares(Notes) 1. The Company resolved at the Board of Directors meeting held on August 29, 2016 to introduce the “Board Benefit
Trust (BBT)” and transferred 476 thousand shares of treasury shares to Trust Account E as of September 14, 2016.
However, since the Company and Trust Account E are recognized as a unit, assets and liabilities including shares in
the Company as well as expenses and income of Trust Account E are included in the consolidated balance sheets,the consolidated statements of income and the consolidated statements of changes in net assets. The number oftreasury shares includes 467 thousand shares in the Company that were held by Trust Account E at the beginningand the end of the current fiscal year.
2. The Company resolved at the Board of Directors meeting held on May 24, 2017 to introduce the “Stock Benefit
Trust (Employee Stockholding Association Purchase-type)” and transferred 250 thousand shares of treasury shares
to Trust Account E as of June 12, 2017. However, since the Company and Trust Account E are recognized as a unit,
assets and liabilities including shares in the Company as well as expenses and income of Trust Account E are
included in the consolidated balance sheets, the consolidated statements of income and the consolidated statementsof changes in net assets. The number of treasury shares includes 145 thousand shares in the Company that were held
by Trust Account E at the end of the current fiscal year.
3. The increase of 0 thousand shares of treasury shares of common stock is due to the purchase of shares less than one
unit.
4. The decrease of 862 thousand shares of treasury shares of common stock is due to a decrease of 788 thousand
shares through conversion of convertible bond-type bonds with subscription rights to shares, the sale of 64 thousand
shares from Trust Account E to the Company’s employee stockholding association, and the payment of 8 thousand
shares from Trust Account E in conjunction with the retirement of Directors and other officers.

2. Subscription rights to shares and treasury subscription rights to shares
Not applicable.
3. Dividends(1) Dividends paid
(Resolution)

Type of shares

Total dividends
Dividends per share(Thousands of yen)
(Yen)

Cut-off date

Effective dateOrdinary General
Meeting ofCommon stock
384,647
6
March 31, 2018
June 25, 2018
Shareholders held on
June 22, 2018
(Note) Total dividends do not include 4,115 thousand yen of dividends to Trust Account E. This is because shares in the
Company held by Trust Account E are recognized as treasury shares.
(Resolution)

Type of shares

Board of Directors
meeting held on
October 31, 2018

Common stock(Note)

Total dividends
Dividends per share(Thousands of yen)
(Yen)
387,039

6

Cut-off date

Effective date

September 30, 2018

December 3, 2018

Total dividends do not include 3,898 thousand yen of dividends to Trust Account E. This is because shares in the
Company held by Trust Account E are recognized as treasury shares.

20

(2) Dividends whose cut-off date is in the current fiscal year and whose effective date is in the following
fiscal year
(Resolution)

Type of shares

Ordinary General
Meeting ofCommon stock
Shareholders heldon June 21, 2019
(Note)

Total dividends(Thousands ofyen)

Dividends per
share
(Yen)

Source ofdividends

519,756 Retained earnings

8

Cut-off date

Effective date

March 31, 2019

June 24, 2019

Total dividends do not include 4,902 thousand yen of dividends to Trust Account E. This is because shares in the
Company held by Trust Account E are recognized as treasury shares.

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
1. Type and total number of issued shares and type and number of treasury shares
Number of sharesat the beginning of
the fiscal year

Increase(Thousands of shares)
Number of sharesat the end of
the fiscal year

Decrease

Issued shares
Common stock

66,113––

66,113

Total

66,113––

66,113

Common stock (Notes)

1,144

2,800

853

3,091

Total

1,144

2,800

853

3,091

Treasury shares(Notes) 1. The Company resolved at the Board of Directors meeting held on August 29, 2016 to introduce the “Board Benefit
Trust (BBT)” and transferred 476 thousand shares of treasury shares to Trust Account E as of September 14, 2016,
and 329 thousand shares of treasury shares as of March 12, 2020. However, since the Company and Trust AccountE are recognized as a unit, assets and liabilities including shares in the Company as well as expenses and income ofTrust Account E are included in the consolidated balance sheets, the consolidated statements of income and theconsolidated statements of changes in net assets. The number of treasury shares includes 752 thousand shares in the
Company that were held by Trust Account E at the beginning and the end of the current fiscal year.
2. The Company resolved at the Board of Directors meeting held on May 24, 2017 to introduce the “Stock Benefit
Trust (Employee Stockholding Association Purchase-type)” and transferred 250 thousand shares of treasury shares
to Trust Account E as of June 12, 2017. However, since the Company and Trust Account E are recognized as a unit,
assets and liabilities including shares in the Company as well as expenses and income of Trust Account E are
included in the consolidated balance sheets, the consolidated statements of income and the consolidated statementsof changes in net assets. The number of treasury shares includes 72 thousand shares in the Company that were held
by Trust Account E at the end of the current fiscal year.
3. The increase of 2,800 thousand shares of treasury shares of common stock is due to the purchase of treasury sharesof 2,800 thousand shares pursuant to the resolution at the Board of Directors meeting held on July 31, 2019, and thepurchase of shares less than one unit of 0 thousand shares.
4. The decrease of 853 thousand shares of treasury shares of common stock is due to a decrease of 735 thousand
shares through conversion of convertible bond-type bonds with subscription rights to shares, the sale of 73 thousand
shares from Trust Account E to the Company’s employee stockholding association, and the payment of 44 thousand
shares from Trust Account E in conjunction with the retirement of Directors and other officers.

2. Subscription rights to shares and treasury subscription rights to shares
Not applicable.

213. Dividends(1) Dividends paid
(Resolution)

Type of shares

Total dividends
Dividends per share(Thousands of yen)
(Yen)

Cut-off date

Effective dateOrdinary General
Meeting ofCommon stock
519,756
8
March 31, 2019
June 24, 2019
Shareholders held on
June 21, 2019
(Note) Total dividends do not include 4,902 thousand yen of dividends to Trust Account E. This is because shares in the
Company held by Trust Account E are recognized as treasury shares.
(Resolution)

Type of shares

Board of Directors
meeting held on
October 31, 2019

Common stock(Note)

Total dividends
Dividends per share(Thousands of yen)
(Yen)
509,998

8

Cut-off date

Effective date

September 30, 2019 November 28, 2019

Total dividends do not include 4,264 thousand yen of dividends to Trust Account E. This is because shares in the
Company held by Trust Account E are recognized as treasury shares.

(2) Dividends whose cut-off date is in the current fiscal year and whose effective date is in the following
fiscal year
(Resolution)

Type of shares

Ordinary General
Meeting ofCommon stock
Shareholders heldon June 19, 2020
(Note)

Total dividends(Thousands ofyen)

Source ofdividends

Dividends per
share
(Yen)

504,179 Retained earnings

8

Cut-off date

Effective date

March 31, 2020

June 22, 2020

Total dividends do not include 6,597 thousand yen of dividends to Trust Account E. This is because shares in the
Company held by Trust Account E are recognized as treasury shares.

Notes to Consolidated Statements of Cash Flows*1. Reconciliation between “Cash and cash equivalents at end of period” in the consolidated statements ofcash flows and “Cash and deposits” in the consolidated balance sheets
Fiscal year ended
March 31, 2019
Cash and deposits
Time deposits with maturities over 3 months
Cash and cash equivalents(Thousands of yen)
Fiscal year ended
March 31, 2020

17,550,326

18,342,206(514,211)(530,180)

17,036,114

17,812,026

Lease Transactions(As Lessee)
1. Finance lease transactions
Finance lease transactions that do not transfer ownership(1) Details of leased assetsi) Property, plant and equipment
Mainly, production equipment and others in the compound businessii) Intangible assets
Software(2) Depreciation method for leased assets
The depreciation method for leased assets is as stated in “5. Accounting policies (b) Depreciation
and amortization of significant assets” under “Significant Matters in Preparing Consolidated
Financial Statements.”22

2. Operating lease transactions
Future lease payments under non-cancelable operating leases(Thousands of yen)
As of March 31, 2020

As of March 31, 2019
Within 1 year
Over 1 year
Total

15,651
28,90844,55923

21,90031,74353,644

Financial Instruments
1. Overview(1) Policy for financial instruments
The Company and its group companies (the “Group”) procure necessary funds primarily through bankloans in light of its capital expenditure plan. The Group invests its excess funds in financial instrumentswith low risks, giving the highest priority to safety by reference to external ratings and others whileconsidering liquidity. In addition, certain short-term operating funds are procured through bank loans.
The Group, by policy, limits derivative transactions to hedging risks associated with substantial
transactions and does not enter into them for speculative purposes.
(2) Description of financial instruments and related risks
Notes and accounts receivable - trade, which are operating receivables, involve credit risk of eachcustomer. Operating receivables denominated in foreign currencies are exposed to exchange rate
fluctuation risk.
Investment securities are exposed to market price fluctuation risk.
Notes and accounts payable - trade, which are operating payables, are primarily due within three to fivemonths. Borrowings and finance lease obligations are primarily intended for raising funds for capital
investment, and certain borrowings are for operating funds. These borrowings are exposed to interest
rate fluctuation risk.
As for derivative transactions, the Group uses forward exchange contracts to hedge exchange rate
fluctuation risk associated with operating receivables denominated in foreign currencies. For hedging
instruments and hedged items, hedging policy, assessment of hedge effectiveness and others related tohedge accounting, please refer to “5. Accounting policies, (e) Significant hedge accounting” under“Significant Matters in Preparing Consolidated Financial Statements” described above.
(3) Risk management system related to financial instruments
1) Management of credit risk (default risk of business partners)
The Group reduces customer credit risk associated with notes and accounts receivable - trade, which
are operating receivables, by monitoring customer credit in conformity with standards such as credit
control regulations and by periodic review.
As for credit risk associated with issues involving transactions with repurchase/resale agreements,
the Company invests in low-risk issues in conformity with its asset management regulations byreference to external ratings and others. The consolidated subsidiaries establish management systems
pursuant to the system of the Company.
2) Management of market risk (exchange rate and interest rate fluctuation risks)
Certain operating receivables denominated in foreign currencies are hedged by forward exchange
contracts. The Group enters into derivative transactions only with highly rated financial institutions
for the purpose of hedging risks associated with substantial transactions in conformity with its asset
management regulations and does not enter into derivative transactions for speculative purposes.
Furthermore, officers in charge approve derivative transactions, and accounting departments executeand manage the transactions.
As for investment securities, the Group holds listed stocks mainly for the purpose of holding themfor the long term, and evaluates them on a fair value basis each quarterly period and obtains thefinancial information of the issuers (business partners). For those other than held-to-maturity bonds,
the Group consistently reviews the holding status taking into account the market conditions andrelationships with business partners.
3) Management of liquidity risk associated with funds procurement (risk of failure to pay on due dates)
The departments in charge appropriately distribute funds by periodically collecting information
about their account activity in an integrated manner and understanding the situation while holding
some as funds on hand taking into account the necessary liquidity.
(4) Supplemental remarks on fair values of financial instruments
The fair values of financial instruments include values based on market prices as well as values that arereasonably calculated when market prices do not exist. As the calculation of those values includes
variable factors, the values may vary if different assumptions and others are applied. The contract
amount related to derivative transactions in “Derivative Transactions” under “Notes to Consolidated
Financial Statements” does not represent market risk associated with the derivative transactions.

24

2. Fair values of financial instruments
The carrying amounts in the consolidated balance sheets and the fair values, and difference between them
are shown below. However, items for which it is considered extremely difficult to determine the fairvalues are not included (See note 2).
As of March 31, 2019
(Thousands of yen)
Carrying amount inconsolidated balance sheets(1) Cash and deposits(2) Notes and accounts receivable trade
Allowance for doubtful accounts(3) Investment securities(4) Long-term loans receivable
Total assets(1) Notes and accounts payable - trade(2) Short-term borrowings(3) Current portion of long-termborrowings(4) Current portion of bonds payable(5) Lease obligations (Current
liabilities)(6) Income taxes payable(7) Long-term borrowings(8) Lease obligations (Non-current
liabilities)
Total liabilities
Derivative transactions

17,550,326

Fair value

Difference

17,550,326–(96,701)
25,923,351
5,608,371
48,255
49,130,305

25,934,999
5,608,371
48,25549,141,953

11,647–0
11,64718,306,323
8,144,431

18,306,323
8,144,431–
0712,703772,896

60,192800,000

801,426

1,426

15,572

15,572

0712,389
4,120,063

712,389
3,934,732–(185,330)

30,691

30,6910

32,842,174–

32,718,463–(123,711)–

26,020,053

As of March 31, 2020
(Thousands of yen)
Carrying amount inconsolidated balance sheets(1) Cash and deposits(2) Notes and accounts receivable trade
Allowance for doubtful accounts(3) Investment securities(4) Long-term loans receivable
Total assets(1) Notes and accounts payable - trade(2) Short-term borrowings(3) Current portion of long-termborrowings(4) Current portion of bonds payable(5) Lease obligations (Current
liabilities)(6) Income taxes payable(7) Long-term borrowings(8) Lease obligations (Non-current
liabilities)
Total liabilities
Derivative transactions

18,342,206

Fair value

Difference

18,342,206–(84,898)
24,313,265
5,062,208
44,21847,761,898

24,313,991
5,062,208
44,21847,762,625

726
–
0
726

16,479,773
7,324,167

16,479,773
7,324,167–
0614,308

665,648

51,340–––15,252

15,252

0423,5463,458,857

423,546
3,374,579–(84,277)

18,52818,528028,334,434–

28,301,496–(32,937)–

24,398,163

25

(Notes) 1. Method of measurement of fair values of financial instruments and matters concerning securities and derivativetransactions
Assets(1) Cash and deposits, (2) Notes and accounts receivable - trade
The fair values are based on the book values since these assets are settled in a short period of time and their fairvalues approximate their book values.
(3) Investment securities
The fair values of stocks and others are based on the prices on exchanges, while those of bonds are based on theprices on exchanges or prices provided by counterparty financial institutions and others. For information on
securities by holding purpose, please refer to “Securities” under “Notes to Consolidated Financial Statements.”(4) Long-term loans receivable
The fair value is calculated based on the present value by discounting the total amount of principal and interest
using an interest rate that is assumed to be applied to a new loan.
Liabilities(1) Notes and accounts payable - trade, (6) Income taxes payable
The fair values are based on the book values since these liabilities are settled in a short period of time and theirfair values approximate their book values.
(2) Short-term borrowings, (5) Lease obligations (Current liabilities), (8) Lease obligations (Non-current liabilities)
The fair values are calculated based on the present value by discounting the total amount of principal and interest
using an interest rate that is assumed to be applied to a similar new borrowing or lease transaction.
(3) Current portion of long-term borrowings, (7) Long-term borrowings
The fair values are calculated based on the present value by discounting the total amount of principal and interest
using an interest rate that is assumed to be applied to a similar new borrowing. Long-term borrowings withvariable interest rates meet certain criteria to adopt the exceptional accrual method for interest rate swaps, andthe fair values of the borrowings are calculated by discounting the total amounts of principal and interest that are
accounted for with the interest rate swaps using interest rates that are reasonably estimated for similarborrowings.
(4) Current portion of bonds payable
The fair value of bonds payable issued by the Company is calculated based on the present value by discounting
the total amount of principal and interest using an interest rate that takes into consideration remaining maturitiesof the Company’s bonds payable and associated credit risk.
Derivative transactions
Please refer to “Derivative Transactions” under “Notes to Consolidated Financial Statements.”
2. Financial instruments for which it is considered extremely difficult to determine fair values
Category

As of March 31, 2019

Unlisted stocks

126,062(Thousands of yen)
As of March 31, 2020
120,542As unlisted stocks have no market prices and it is considered to be extremely difficult to determine their fair values,
they are not included in “(3) Investment securities.”26

3. Expected redemption amounts of monetary receivables and securities with maturity dates subsequent to theconsolidated balance sheet date
As of March 31, 2019
(Thousands of yen)

(1) Cash and deposits(2) Notes and accounts
receivable - trade

Within 1 year

Over 1 year
to 5 years

Over 5 years
to 10 years

Over 10 years

17,544,780

–

–

–

26,020,053

–

–

–

–

46,997658

599

43,564,833

46,997658

599

Within 1 year

Over 1 year
to 5 years

Over 5 years
to 10 years

Over 10 years

18,342,206

–

–

–

24,398,163

–

–

–

–

43,166573

478

42,740,370

43,166573

478(3) Long-term loans receivable
Total
As of March 31, 2020

(Thousands of yen)

(1) Cash and deposits(2) Notes and accounts
receivable - trade(3) Long-term loans receivable
Total

4. Projected repayment amounts of borrowings, bonds payable and lease obligations subsequent to the consolidatedbalance sheet date
As of March 31, 2019
Within 1
year(1) Short-term borrowings(Thousands of yen)Over 1 year Over 2 years Over 3 years Over 4 years
Over 5 years
to 2 years
to 3 years
to 4 years
to 5 years

8,144,431

–

–

–

–

–

(2) Bonds payable

800,000

–

–

–

–

–

(3) Long-term borrowings

712,703644,717624,327

525,578

497,240

1,828,199(4) Lease obligations
Total

15,572

13,795

10,416

4,944

1,351

183

9,672,707

658,512634,743

530,523

498,591

1,828,382

As of March 31, 2020
Within 1
year(Thousands of yen)Over 1 year Over 2 years Over 3 years Over 4 years
Over 5 years
to 2 years
to 3 years
to 4 years
to 5 years

7,324,167

–

–

–

–

–

–

–

–

–

–

–

(3) Long-term borrowings

614,308

611,152

537,316

498,714452,781

1,358,892(4) Lease obligations

15,252

10,077

5,259

1,820

653

717

7,953,728

621,230

542,575

500,535

453,434

1,359,610(1) Short-term borrowings(2) Bonds payable

Total

27

Securities
1. Available-for-sale securities
As of March 31, 2019
(Thousands of yen)

Securities whose carrying amount on the
consolidated balance sheets exceeds theiracquisition cost
StocksSubtotal
Securities whose carrying amount on the
consolidated balance sheets does not exceed theiracquisition cost
StocksSubtotal
Total

Carrying amounton the consolidatedbalance sheets

Acquisition cost

5,580,399
5,580,399

2,127,134
2,127,134

3,453,264
3,453,264

27,972
27,972
5,608,371

28,41628,416
2,155,551

(444)
(444)
3,452,820

Unrealized gain (loss)(Note) As unlisted stocks (126,062 thousand yen reported on the consolidated balance sheets) have no market prices and it isconsidered to be extremely difficult to determine their fair values, they are not included in the table above of“Available-for-sale securities.”

As of March 31, 2020
(Thousands of yen)

Securities whose carrying amount on the
consolidated balance sheets exceeds theiracquisition cost
StocksSubtotal
Securities whose carrying amount on the
consolidated balance sheets does not exceed theiracquisition cost
StocksSubtotal
Total(Note)

Carrying amounton the consolidatedbalance sheets

Acquisition cost

4,346,889
4,346,889

1,287,678
1,287,678

3,059,211
3,059,211

715,318
715,318
5,062,208

815,096815,096
2,102,775(99,777)(99,777)
2,959,433

Unrealized gain (loss)

As unlisted stocks (120,542 thousand yen reported on the consolidated balance sheets) have no market prices and it isconsidered to be extremely difficult to determine their fair values, they are not included in the table above of“Available-for-sale securities.”

2. Available-for-sale securities that were sold during the fiscal year
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Thousands of yen)Type
StocksProceeds from sales
302,650

28

Total gain on sales
292,203

Total loss on sales–

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(Thousands of yen)Type
StocksProceeds from sales

Total gain on sales

128,568

3. Impairment loss on securities
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Not applicable.
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Not applicable.

Derivative Transactions
1. Derivative transactions to which hedge accounting is not applied
Not applicable.
2. Derivative transactions to which hedge accounting is applied(1) Currency-related transactions
As of March 31, 2019
Not applicable.
As of March 31, 2020
Not applicable.

29

71,324

Total loss on sales–

(2) Interest rate-related transactions
As of March 31, 2019
(Thousands of yen)
Hedge accounting
methodType of derivativetransaction

Exceptional
accrual method
for interest rate
swaps

Interest rate swap
contracts
Receive floating/ Pay fixed

Principal hedged item

Contract amountContract amountdue after 1 year

Long-term borrowings

1,808,805

1,530,578

Fair value(Note)(Note) Since items subject to the exceptional accrual method for interest rate swaps are accounted for together with the longterm borrowings that are the hedged items, the fair values thereof are included in the fair values of the corresponding
long-term borrowings.

As of March 31, 2020
(Thousands of yen)
Hedge accounting
methodType of derivativetransaction

Exceptional
accrual method
for interest rate
swaps

Interest rate swap
contracts(Note)

Receive floating/ Pay fixed

Principal hedged item

Contract amountContract amountdue after 1 year

Long-term borrowings

1,512,983

1,237,815

Fair value(Note)

Since items subject to the exceptional accrual method for interest rate swaps are accounted for together with the longterm borrowings that are the hedged items, the fair values thereof are included in the fair values of the corresponding
long-term borrowings.

Retirement Benefits
1. Summary of retirement benefit plans adopted
To cover retirement benefits to employees, the Company and its consolidated subsidiaries have adopted
funded and unfunded defined-benefit plans.
Under the defined-benefit corporate pension plans, all of which are funded plans, lump-sum benefits or
pensions are paid based on salary and service period.
Under the retirement lump-sum payment plans, all of which are unfunded plans, lump-sum benefits arepaid as retirement benefits based on salary and service period. A retirement benefit trust has been
established for the retirement lump-sum payment plans, all of which are unfunded plans, since May
2015.
For defined-benefit corporate pension plans and retirement lump-sum payment plans held by someconsolidated subsidiaries, retirement benefit liability and retirement benefit expenses are calculated bya simplified method.

30

2. Defined-benefit plans(1) Reconciliation between balance of retirement benefit obligations at the beginning of period and thatat the end of period(Thousands of yen)
Fiscal year ended Fiscal year ended
March 31, 2019
March 31, 2020
Retirement benefit obligations at the beginning of period
Service cost

6,023,207

5,885,749

360,886

392,770

32,981

33,102

Actuarial differences(214,454)(73,493)Retirement benefits paid

(342,497)(322,288)–

31,851

Increase from newly consolidated subsidiaries

57,035–

Other(31,409)25,3985,885,749

5,973,089

Interest cost

Past service cost

Retirement benefit obligations at the end of period(2) Reconciliation between balance of plan assets at the beginning of period and that at the end of period(Thousands of yen)
Fiscal year ended Fiscal year ended
March 31, 2019
March 31, 2020
Plan assets at the beginning of period

5,469,922

5,491,677

Expected return on plan assets

141,476

122,431

Actuarial differences(133,850)(287,161)

Contribution by employer

171,610

173,152

Retirement benefits paid

(151,232)(155,489)(6,248)6,327

5,491,677

5,350,938

Other
Plan assets at the end of period(3) Reconciliation between balance of retirement benefit obligations and plan assets at the end of period
and that of retirement benefit liability and retirement benefit asset recorded in the consolidatedbalance sheets
As ofMarch 31, 2019

(Thousands of yen)
As ofMarch 31, 2020

Retirement benefit obligations from funded plans

2,940,821

2,924,850

Plan assets(3,438,543)(3,349,786)(497,721)(424,935)

Retirement benefit obligations on unfunded plans

891,793

1,047,086

Net amount of liability and asset recorded in consolidated balance sheets

394,071622,150Retirement benefit asset(565,739)(512,807)

Retirement benefit liability

959,810

1,134,958

Net amount of liability and asset recorded in consolidated balance sheets

394,071622,15031

(4) Retirement benefit expenses
Fiscal year ended
March 31, 2019

(Thousands of yen)
Fiscal year ended
March 31, 2020

Service cost

360,886

392,770

Interest cost

32,981

33,102(141,476)(122,431)

85,17896,810–31,851

378(11,653)

337,948

420,450

Expected return on plan assets
Amortization of actuarial differences
Amortization of past service cost
Other
Retirement benefit expenses on defined-benefit plans(5) Remeasurements of defined benefit plans
The components of remeasurements of defined benefit plans (before deducting tax effect) are as
follows:
Fiscal year ended
March 31, 2019

(Thousands of yen)
Fiscal year ended
March 31, 2020––

Actuarial differences(165,782)

116,856

Total(165,782)

116,856

Past service cost(6) Remeasurements of defined benefit plans (Accumulated other comprehensive income)The components of remeasurements of defined benefit plans (before deducting tax effect) are as
follows:
As ofMarch 31, 2019

(Thousands of yen)
As ofMarch 31, 2020––

Unrecognized actuarial differences

424,203541,060

Total

424,203541,060

Unrecognized past service cost(7) Plan assetsi) Main components of plan assets
The ratios of components to total plan assets by major category are as follows:
As ofMarch 31, 2019

As ofMarch 31, 2020

Bonds

10.1%

10.7%

Stocks

16.5%

14.1%

Cash and deposits

5.1%

5.4%

Insurance assets (general accounts)

7.5%

7.8%

Investment trust

37.4%

37.4%

Shared operating assets

23.5%

24.6%

Total

100.0%

100.0%(Note) Total plan assets includes the retirement benefit trust established for the retirement lump-sum payment
plans, which accounts for 37.4% and 37.5% of the total amount as of March 31, 2019 and March 31, 2020,
respectively.

32ii) Method for establishing long-term expected rate of return on plan assets
To establish the long-term expected rate of return on plan assets, the current and forecasted
allocation of plan assets and the current and expected future long-term rate of return from thevarious assets constituting the plan assets are taken into consideration.
(8) Calculation basis for actuarial assumptions
The main calculation basis for actuarial assumptions are as follows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Discount rate

0.00%

0.00%

Long-term expected rate of return

3.80%

2.80%

Expected rate of salary increase

7.70%

7.20%

Income Taxes
1. Significant components of deferred tax assets and liabilities(Thousands of yen)
As of March 31, 2020

As of March 31, 2019
Deferred tax assets
Allowance for doubtful accounts
Retirement benefit liability
Impairment loss
Provision for bonuses
Loss on valuation of investment securities
Asset retirement obligations
Net operating losses carryforward (Note)
Other
Subtotal of deferred tax assets
Valuation allowance related to net operating losses
carryforward (Note)
Valuation allowance related to total deductible temporary
difference, etc.
Subtotal of valuation allowance
Total deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities
Retirement benefit asset
Reserve for advanced depreciation of non-current assets
Reserve for special depreciation
Property, plant and equipment (asset retirement
obligations)
Reserved profit of overseas consolidated subsidiaries
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)

30,814
878,795
359,383
192,239
192,262
51,056
231,675
565,000
2,501,228(225,159)

27,113992,355
305,975
166,891
121,197
51,907333,014591,304
2,589,759(313,458)(515,429)(505,686)(740,589)
1,760,638(819,145)
1,770,614(888,695)(284,251)(69,980)(7,653)(28,954)(815,140)(277,068)(46,385)－(26,957)(468,222)(535,623)(2,283,381)(522,743)(503,583)(635,667)(2,304,801)(534,187)(Note) Amounts of tax loss carryforward and related deferred tax assets by carryforward period
As of March 31, 2019
Within 1
year(Thousands of yen)Over 1 year Over 2 years Over 3 years Over 4 years
Over 5 years
Total
to 2 years
to 3 years
to 4 years
to 5 years

Tax loss carryforward (a)

5,387

5,387

21,23847,53633,860118,264

231,675

Valuation allowance(5,387)(5,387)(21,238)(47,536)(33,860)(111,749)(225,159)

Deferred tax assets

–

–

–

–

–

6,515

(b) 6,515(a) Figures for tax loss carryforward are the amounts multiplied by effective statutory tax rate.
(b) For the tax loss carryforward of 231,675 thousand yen (amount multiplied by effective statutory tax rate), deferred tax assets
of 6,515 thousand yen have been recorded. The deferred tax assets of 6,515 thousand yen have been recognized primarily for33the balance of tax loss carryforward in the amount of 6,337 thousand yen (amount multiplied by effective statutory tax rate)of RIKEN ELASTOMERS CORPORATION, a consolidated subsidiary. The tax loss carryforward of the consolidated
subsidiary RIKEN ELASTOMERS CORPORATION accrued as a result of using immediate expensing system for the fiscal
year ended December 31, 2017. The said tax loss carryforward was determined to be recoverable as future taxable income isanticipated, and therefore valuation allowance has not been recognized.
As of March 31, 2020
Within 1
year(Thousands of yen)Over 1 year Over 2 years Over 3 years Over 4 years
Over 5 years
Total
to 2 years
to 3 years
to 4 years
to 5 years

Tax loss carryforward (a)6,412

22,067

43,842

27,477

10,816

222,396

333,014

Valuation allowance(6,412)(22,067)(43,842)(27,477)(10,816)(202,841)(313,458)

Deferred tax assets

–

–

–

–

–

19,555(b) 19,555(a) Figures for tax loss carryforward are the amounts multiplied by effective statutory tax rate.
(b) For the tax loss carryforward of 333,014 thousand yen (amount multiplied by effective statutory tax rate), deferred tax assets
of 19,555 thousand yen have been recorded. The deferred tax assets of 19,555 thousand yen have been recognized primarily
for the balance of tax loss carryforward in the amount of 17,782 thousand yen (amount multiplied by effective statutory tax
rate) of RIKEN ELASTOMERS CORPORATION, a consolidated subsidiary. The said tax loss carryforward wasdetermined to be recoverable as future taxable income is anticipated, and therefore valuation allowance has not beenrecognized.

2. Reconciliation between the effective statutory tax rate and the effective tax rate
As ofMarch 31, 201930.6%

Effective statutory tax rate
Adjustments
Expenses not deductible permanently such as entertainment
expenses
Income not taxable permanently such as dividends income
Foreign withholding taxes
Change in valuation allowance
Tax rate differences from overseas consolidated
subsidiaries
Other
Effective tax rate

Business Combinations
This information has been omitted due to its insignificance.
Asset retirement obligations
This information has been omitted due to its insignificance.
Rental properties and other real estateThis information has been omitted due to its insignificance.

34

As of
March 31, 2020
30.6%

0.5

0.8

(0.7)
0.5
3.7

(0.9)
0.5
1.4

(4.7)

(4.8)

(1.1)
28.8

(0.1)
27.3

Segment Information and Others
Segment Information
1. Summary of reportable segments(1) Method of determining reportable segments
The Group’s reportable segments are components of the Group for which separate financial information isavailable and that are evaluated regularly by the Board of Directors to determine allocation ofmanagement resources and assess performance.
The Company has business units by market at the head office. Each business unit supervises and plans its
own domestic and overseas strategies by market and conducts global business activities.
Accordingly, the Group has classified the reportable segments based on markets and has four reportablesegments, “transportation,” “daily life & healthcare,” “electronics,” and “building & construction.”(2) The name, abbreviation, and main markets of each respective reportable segment
The name, abbreviation, and main markets of each respective reportable segment are as follows:
Transportation (TR): automobile, railroad, and shipping markets, etc.
Daily Life & Healthcare (DH): healthcare, materials for daily life, and food wrapping film markets, etc.
Electronics (EL): energy, communications, and IT equipment markets, etc.
Building & Construction (BC): housing, buildings, construction materials, and civil engineering markets(Note) The terms in parentheses are abbreviations for the reportable segments.

(3) Matters related to changes in reportable segments
The Group has reformed its organization to make it suitable for the global market, in order to execute thestrategy of the new mid-term management plan that began in the current fiscal year and to accurately
capture the market needs which are changing at a faster pace than ever.
In conjunction with this organizational change, we revised the business segment classification systemeffective from the current fiscal year. The previous product-based reportable segments of “compound,”“film” and “food wrapping film” were replaced with market-based segments of “transportation,” “daily
life & healthcare,” “electronics” and “building & construction.”
The segment information for the previous fiscal year contained in this report was prepared using the newclassification system, and is presented as figures for the fiscal year ended March 31, 2019 in “3.
Information about net sales, profit or loss, assets, liabilities and other items by reportable segment.”
2. Method for calculating net sales, profit or loss, assets, liabilities and other items by reportable segment
Accounting policies of reported business segments are mostly consistent with those disclosed in“Significant Matters in Preparing Consolidated Financial Statements.”
Segment profit is calculated on an operating profit basis.
Intersegment sales and transfers are based on actual market prices.

35

3. Information about net sales, profit or loss, assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Thousands of yen)
Reportable segment

Net sales(1) Sales to externalcustomers(2) Intersegment
sales or transfers
Total
Segment profit
Segment assets
OthersDepreciation
Amortization of
goodwill
Increase in property,
plant and equipment
and intangible assets

Total

Other
(Note 1)

Total

Amountrecorded ontheAdjustment
consolidated(Note 2)statements
of income(Note 3)

20,853,047

97,144,198

669,762

97,813,960－

97,813,960

1,598

－

1,598

626,637

628,235(628,235)－

24,249,646

21,151,564

20,853,047

97,145,796 1,296,399

98,442,196(628,235) 97,813,960

1,668,629

408,051

470,725

5,547,794

55,196

5,602,991

158,804

5,761,796

8,736,337

10,046,820

10,033,178

7,696,857

36,513,193

188,126

36,701,320 58,506,582

95,207,902

1,273,538

782,262

844,879

754,904

3,655,584

1,442

3,657,027－

3,657,027

905

182,690363

15,242

199,201－

199,201－

199,201－

275,968

69,185－345,153－

345,153

3,228,757

3,573,911

TR

DH

EL

BC

30,891,538

24,249,646

21,149,966－－

30,891,538
3,000,388(Notes) 1. The “Other” category is the business segment that is not included in the reportable segments, and represents thepurchase and sales of raw materials, etc.
2. The adjustment to segment profit represents 158,804 thousand yen in inter-segment eliminations.
The adjustment to segment assets represents negative 303,511 thousand yen in inter-segment eliminations and58,810,094 thousand yen in corporate assets. The corporate assets mainly include funds to manage surplus assets(cash and deposits), long-term investment funds (investment securities) and assets related to the administration
division.
3. Segment profit is adjusted to operating profit in the consolidated statements of income.

36

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(Thousands of yen)
Reportable segment

Net sales(1) Sales to externalcustomers(2) Intersegment
sales or transfers
Total
Segment profit
Segment assets
OthersDepreciation
Amortization of
goodwill
Increase in property,
plant and equipment
and intangible assets

Total

Other
(Note 1)

Total

Amountrecorded ontheAdjustment
consolidated(Note 2)statements
of income(Note 3)23,290,521

98,241,216

567,455

98,808,671－

98,808,671

479

－

519

455,937

456,457(456,457)－

24,308,434

20,883,906

23,290,521

98,241,736 1,023,393

99,265,129(456,457)

98,808,671

1,860,082

282,607561,227

5,444,701

40,1475,484,849

96,9705,581,820

7,896,691

9,626,352

10,931,915

6,482,189

34,937,148

204,151

35,141,300 56,727,580

91,868,881

1,414,309

736,948

911,484

822,965

3,885,708

847

3,886,555－

3,886,555－

88,581

66,666

1,455

156,703－

156,703－

156,703－

197,014876,540－

1,073,555－

1,073,555

2,711,924

3,785,479

TR

DH

EL

BC

29,758,873

24,308,394

20,883,426－

40

29,758,873
2,740,784(Notes) 1. The “Other” category is the business segment that is not included in the reportable segments, and represents thepurchase and sales of raw materials, etc.
2. The adjustment to segment profit represents 96,970 thousand yen in inter-segment eliminations.
The adjustment to segment assets represents negative 225,197 thousand yen in inter-segment eliminations and56,952,778 thousand yen in corporate assets. The corporate assets mainly include funds to manage surplus assets(cash and deposits), long-term investment funds (investment securities) and assets related to the administration
division.
3. Segment profit is adjusted to operating profit in the consolidated statements of income.

37

Related Information
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
1. Information by product and service(Thousands of yen)

Sales to external customers

TR

DH

EL

30,891,538

24,249,646

BC

21,149,966

Other

20,853,047

Total

669,762

97,813,960

2. Information by geographical area
(1) Net sales(Thousands of yen)Japan

Thailand

U.S.

China

53,829,576

9,767,345

9,410,740

8,067,799(Note)

EuropeOther regions

Total

16,411,286

97,813,960

327,211Net sales are segmented by country or region based on customer location.

(2) Property, plant and equipment(Thousands of yen)Japan

Thailand

U.S.

China

Europe12,670,385

3,908,286

5,362,570

1,637,761

Other regions
–

Total

3,933,763

27,512,767

3. Information by major customer
This information has been omitted as there is no major external customer that accounts for 10% or more of the
net sales recorded on the consolidated statements of income.
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
1. Information by product and service(Thousands of yen)

Sales to external customers

TR

DH

EL

29,758,873

24,308,394

BC

20,883,426

Other

23,290,521

Total

567,455

98,808,671

2. Information by geographical area
(1) Net sales(Thousands of yen)Japan

Thailand

U.S.

China

56,387,791

9,836,259

8,874,550

7,138,120(Note)

Europe251,102

Other regions

Total

16,320,849

98,808,671

Net sales are segmented by country or region based on customer location.

(2) Property, plant and equipment(Thousands of yen)Japan

Thailand

U.S.

China

13,048,867

3,644,564

5,094,717

1,501,81738

EuropeOther regions–

3,613,037

Total
26,903,003

3. Information by major customer
This information has been omitted as there is no major external customer that accounts for 10% or more of the
net sales recorded on the consolidated statements of income.
Information about Impairment Loss on Non-current Assets by Reportable Segment
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Not applicable.
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Not applicable.

Information about Amortization of Goodwill and Balance of Unamortized Goodwill by Reportable
Segment
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Thousands of yen)
Reportable segment
TR
Balance as of March 31,
2019

DH

–

EL

88,581

–

BC

Total

11,640100,221

Other

Total

–

100,221

Amountrecorded ontheAdjustment
consolidated
financialstatements–

100,221(Note) Amortization of goodwill has been omitted, as identical information is disclosed in segment information.

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(Thousands of yen)
Reportable segment
TR
Balance as of March 31,
2020

DH

–

–

EL

BC

Total

733,333

10,185743,518

Other

Total

–

743,518

Amountrecorded ontheAdjustment
consolidated
financialstatements–(Note) Amortization of goodwill has been omitted, as identical information is disclosed in segment information.

Information about Gain on Bargain Purchase by Reportable Segment
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
This information has been omitted due to its immateriality.
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Not applicable.
Information on Related Parties
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Not applicable.
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Not applicable.

39

743,518

Per Share Information(Yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net assets per share

753.31788.77

Basic profit attributable to owners of parent per share

47.43

48.11

Diluted profit attributable to owners of parent per share

45.93

－

(Notes) 1. Diluted profit attributable to owners of parent per share for the fiscal year ended March 31, 2020 is not presented
because there are no potential shares.
2. The basis used for calculating net assets per share is as follows.

As of March 31, 2019

As of March 31, 2020

Total net assets (Thousands of yen)

56,478,468

57,586,816

Deduction from total net assets (Thousands of yen)

7,536,367

7,876,489[7,536,367][7,876,489]

Net assets related to common stock (Thousands of yen)

48,942,100

49,710,327

Number of treasury shares of common stock (Shares)

1,144,315

3,091,387

Number of shares of common stock outstanding used for
calculation of net assets per share (Shares)

64,969,504

63,022,432[Of the above, non-controlling interests (Thousands ofyen)](Note)

Because shares in the Company held by Trust Account E are recognized as treasury shares in the consolidated financial
statements, the number of those shares has been deducted from the number of shares of common stock outstanding at
the fiscal year-end used for the calculation of net assets per share.

40

3. The basis used for calculating basic profit attributable to owners of parent per share and diluted profit attributable toowners of parent per share is as follows.
Fiscal year ended
Fiscal year ended
March 31, 2019
March 31, 2020
Profit attributable to owners of parent (Thousands of yen)

3,060,922

3,064,349––

3,060,922

3,064,349

64,534,937

63,700,223

–

–

–

–

Increase in common stock (Shares)

2,102,673–[Of the above, convertible bond-type bonds with
subscription rights to shares (Shares)]2,102,673–––

Amount not attributable to common shareholders(Thousands of yen)
Profit attributable to owners of parent regarding
common stock (Thousands of yen)
Average number of shares of common stock outstanding
during the period (Shares)

Diluted profit attributable to owners of parent per share
Adjustment on profit attributable to owners of parent[Of the above, interest expenses (net of corresponding
tax amount) (Thousands of yen)][Of the above, subscription rights to shares (Shares)]
Outline of potential shares that were not used in–

calculating diluted profit attributable to owners of parent
per share because they have no dilutive effects(Note)

Because shares in the Company held by Trust Account E are recognized as treasury shares in the consolidated financial
statements, the number of those shares has been deducted from the average number of shares of common stock
outstanding during the period used for the calculation of basic profit attributable to owners of parent per share anddiluted profit attributable to owners of parent per share.

Significant Subsequent Events
Not applicable.

41

e. Consolidated Supporting Schedules
Detailed Statement of Bonds
Company name

Type of bondDate ofissuance

Balance as ofApril 1, 2019
(Thousands ofyen)

Balance as ofMarch 31, 2020
(Thousands of
yen)

RIKEN
TECHNOSCORPORATION

Yen-denominatedconvertible bonds
with stockacquisition rights
due 2020 (Note 1)

March 19,2015

800,000

Total

–

–

800,000(Note)

Interest
rate(%)

Collateral

Date ofmaturity

–

–

None

March 19,
2020

–

–

–

–

1. The information about the bonds with stock acquisition rights is as provided below.
Yen-denominated convertible bonds withType of bondstock acquisition rights due 2020

Shares to be issued

Common stock

Issue price per stock acquisition right (Yen)

Without contribution

Issue price per share (Yen)469

Total issue value (Thousands of yen)

4,000,000

Total issue value of shares issued upon exercise of stock acquisitionrights (Thousands of yen)

3,545,000

Granting ratio of stock acquisition rights (%)

100
From March 31, 2015
to February 27, 2020

Exercise period of stock acquisition rights(at the close of bank operations in thelocal time of the location where theexercise request is received)(Note)

When there is a request from a bond holder intending to exercise the stock acquisition rights, in place of theredemption of the full amount of the bonds to which the stock acquisition rights are attached, it is deemedthat the full amount to be paid in upon exercise of the stock acquisition rights has been paid in. In addition,
when stock acquisition rights are exercised, it is deemed that the said request has been received.

42

Detailed Statement of Borrowings
Category

Balance as of
Balance as ofApril 1, 2019
March 31, 2020
(Thousands of yen) (Thousands of yen)

Short-term borrowings

Averageinterest rate(%)

Repayment period

8,144,431

7,324,167

1.4–

Current portion of long-termborrowings

712,703614,308

2.6–

Current portion of lease obligations

15,572

15,252––

4,120,063

3,458,857

2.52021 – 2025

30,691

18,528–2021 – 2026

–

–

–

–

13,023,462

11,431,114––

Long-term borrowings(excluding current portion)
Lease obligations(excluding current portion)
Other interest-bearing debt
Total

(Notes) 1. Method of calculating average interest rates
Average interest rates are calculated using the average outstanding balance during the period.
2. The amount of lease obligations in the consolidated balance sheets includes the interest equivalent.
3. Repayment of long-term borrowings and lease obligations scheduled within five years after the balance sheet dateare as follows:(Thousands of yen)Over 1 year
Over 2 years
Over 3 years
Over 4 years
Categoryto 2 years
to 3 years
to 4 years
to 5 years
Long-term borrowings

611,152

537,316

498,714452,781

Lease obligations

10,077

5,259

1,820

653

Detailed Statement of Asset Retirement Obligations
As the amount of asset retirement obligations as of April 1, 2019 and March 31, 2020 is not more than 1% of
the total amount of liabilities and net assets as of the same dates, this information is omitted pursuant to theprovisions of Article 92-2 of the Ordinance on Consolidated Financial Statements.
(2) Others
Quarterly information for the fiscal year ended March 31, 2020
(Year-to-date period)
Net sales (Thousands of yen)
Profit before income taxes(Thousands of yen)
Profit attributable to owners ofparent (Thousands of yen)
Basic profit attributable toowners of parent per share (Yen)(Three-month period)
Basic profit attributable toowners of parent per share (Yen)

1st quarter2nd quarter3rd quarter

Fiscal year ended
March 31, 2020

24,555,035

49,541,346

74,132,526

98,808,671

1,413,049

2,818,355

4,255,050

6,025,530

725,247

1,432,888

2,228,164

3,064,349

11.16

22.15

34.84

48.11

1st quarter2nd quarter

11.16

10.98

43

3rd quarter
12.70

4th quarter
13.34