Consolidated Financial Results
for the Year Ended March 31, 2022
[Japanese GAAP]May 11, 2022
Company name: Toshiba Tec Corporation
Stock exchange listing: Tokyo
Code number: 6588
URL: https://www.toshibatec.co.jp/
Representative: Hironobu Nishikori

President and CEO
Contact:
Akira Abe
Senior Manager of Corporate Communications Division
Phone 03-6830-9151:Scheduled date of Annual General Meeting of Shareholders: June 27, 2022
Scheduled date of commencing dividend payments: June 06, 2022
- Scheduled date of filing annual securities report: June 27, 2022
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toOperating profit
Net sales
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2022
445,3179.8
11,56640.0
10,19741.8
5,381(24.5)March 31, 2021
405,694(16.1)
8,263(40.9)
7,193(37.8)
91.0
7,126(Note) Comprehensive income:Fiscal year ended March 31, 2022:¥
8,473 million[(40.0)%]
Fiscal year ended March 31, 2021:¥
14,128 million[-%]
Basic earnings
per share

Diluted earnings
per share

Rate of return on
equityOrdinary profit
to total assets
ratio %

Operating profit
to net sales ratio

3.4
2.5
¥
¥

2.6
2.0
- million- million

Yen
Yen
%
Fiscal year ended
March 31, 2022
97.68
97.65
5.0
129.55
March 31, 2021
129.46
7.5(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:%(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference)Equity:

Net assets

Capital adequacy ratio

Million yen

Million yen

310,256
289,313

117,662
109,862
111,946 million
102,710 million

As of March 31, 2022:
As of March 31, 2021:¥¥

Net assets per share

%

Yen

36.1
35.5

2,023.35
1,867.01

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Million yen

Million yen

Million yen

Million yen

10,0379,240(14,184)(9,573)(5,496)(4,309)46,70951,753

2. Dividends

1stquarter-end
Fiscal year ended

Yen

March 31, 2021
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)

Annual dividends
2nd
3rd
Year-endquarter-end quarter-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00

-

20.00

20.00

1,100

15.4

1.2

-

20.00

-

20.00

40.00

2,207

40.9

2.1

-

20.00

-

30.00

50.00

34.4

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%

Million yen%

Million yen%

Million yen%

Yen

Full year
450,000
1.1
18,00055.6
15,500
52.0
8,000
48.7
145.21(Note) For details of consolidated financial results forecast for the fiscal year ending March 31, 2023, please refer to “1. Summary of
consolidated business results, etc. (4) Future Outlook” on page 4 of this report.
*Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(Company name:New)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(Note) For details, please refer to “3. Consolidated Financial Statements and Notes (5) Notes to the consolidated financial
statements (Changes in accounting policies)” on page 13 of this report.
(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022:
57,629,140 shares
March 31, 2021:
57,629,140 shares2) Total number of treasury shares at the end of the period:
March 31, 2022:
2,301,938 shares
March 31, 2021:
2,616,163 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:

55,091,175 shares
55,006,249 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Operating profit

Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

232,428
216,332

7.4(19.6)

778(2,169)

-

3,622
1,297

179.1
(84.7)

471
8,437(94.4)-

Basic earnings per share
Fiscal year ended
March 31, 2022
March 31, 2021

Diluted earnings per share

Yen

Yen

8.56
153.388.56
153.27(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

196,081
197,459
As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

Million yen¥¥

83,28983,476
83,240 million
83,419 million

Net assets per share

%

Yen

42.5
42.2

1,504.52
1,516.35*Financial results reports are exempt from the audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts, and other special matters(Explanation for the proper use of earnings forecasts)
Financial results forecasts are based on information currently available to the Company and certain assumptions deemed reasonable,
and are not intended to be the Company’s guarantee that they will be achieved. Actual results may significantly vary due to a variety
of factors.
For the assumptions used as the basis for the earnings forecasts and precautions regarding the use of the earnings forecasts, pleaserefer to “1. Summary of consolidated business results, etc. (4) Future Outlook” on page 4 of this report.

Table of Contents of Attachments
1. Summary of consolidated business results, etc............................................................................................................... 2(1) Summary of consolidated business results etc. for the period under review ............................................................... 2(2) Financial condition ..................................................................................................................................................... 3(3) Overview of Cash Flows ............................................................................................................................................ 3(4) Future Outlook ........................................................................................................................................................... 4
2. Basic approach to selection of accounting standards ..................................................................................................... 5
3. Consolidated Financial Statements and Notes ............................................................................................................... 6(1) Consolidated Balance Sheet ....................................................................................................................................... 6(2) Consolidated Statement of Income and Comprehensive Income ............................................................................... 8
Consolidated Statement of Income ............................................................................................................................ 8
Consolidated Statement of Comprehensive Income .................................................................................................. 9(3) Consolidated Statement of Changes in Net Assets................................................................................................... 10(4) Consolidated Statement of Cash Flows .................................................................................................................... 12(5) Notes to the consolidated financial statements ......................................................................................................... 13
Notes on going concern assumption ........................................................................................................................ 13
Changes in accounting policies ................................................................................................................................ 13
Segment information ................................................................................................................................................ 14
Per share Information ............................................................................................................................................... 16
Significant subsequent events .................................................................................................................................. 16
4. Supplementary information ......................................................................................................................................... 17(1) Changes in information about financial results ........................................................................................................ 17(2) Changes in reportable segment information ............................................................................................................. 18(3) Changes in net sales by destination market .............................................................................................................. 19(4) Changes in proportion of overseas production by value .......................................................................................... 19(5) Changes in resource inputs ....................................................................................................................................... 19

1

1. Summary of consolidated business results, etc.
(1) Summary of consolidated business results etc. for the period under review
Consolidated business results for the fiscal year ended March 31, 2022
The world economy for the fiscal year ended March 31, 2022 continued to face severe circumstances.
The economy did not fully recover under the impact of the resurgence of COVID-19, limitations on
supply and other factors despite being on a recovery track owing mainly to the diffusion of COVID-19
vaccines and economic measures.
Amid such conditions, Toshiba Tec Corporation (the “Company”) and its subsidiaries(collectively, the “Group”) set forth the Basic Policy of the FY21-23 Mid-term Business Plan (MTBP),“After the structural reform and transformation, accelerate concentrated investment in the growth field tobecome a solutions partner by utilizing data effectively.” Under the basic policy, the Group has focused its
energy on carrying out various measures to develop its business. At the same time, as a solutions partnerthat helps solve issues in the domains of stores, offices, logistics and manufacturing, the Group has
promoted initiatives to achieve the Sustainable Development Goals (SDGs) together with customers andstrived to contribute to realizing a sustainable society.
In the fiscal year ended March 31, 2022, the impact of the COVID-19 pandemic continued, and theGroup was affected by tight supply-demand balance and soaring prices in components and internationalcargo transportation. However, as economic activities showed more strength compared to the previous
fiscal year, net sales recovered to ¥445,317 million (up 10% year on year). Meanwhile, on the profit front,
the Group recorded operating profit of ¥11,566 million (up 40% year on year), ordinary profit of ¥10,197
million (up 42% year on year), and profit attributable to owners of parent of ¥5,381 million (down 25%
year on year) as a result of Income taxes deferred (profit) accounted due to a partial release of valuation
allowances on deferred tax assets in the previous fiscal year.
Regarding the year-end dividend for the fiscal year ended March 31, 2022, as a result of comprehensive
consideration of the above business results, the business environment and other factors, the Company has
decided to pay out a dividend of ¥20 per share, the same amount as the year-end dividend for the previous
fiscal year. We would like to seek approval of shareholders.
Results of reportable segments for the fiscal year ended March 31, 2022 were as follows.

Retail Solutions Business GroupThe Retail Solutions Business Group handles POS systems for domestic and overseas markets, auto ID
systems for domestic market, and related products. Amid a severe business environment in which theimpact of the spread of COVID-19 and intensifying competition with peers continue, the business grouphas worked on various initiatives under the basic policy of “Aim at becoming a global top solutions
partner in the distribution industry.” These initiatives include concentrated investment in growth fields(data services, next generation stores, payment, and Supply Chain Management (SCM)), businessexpansion through strategic partnership, and the expansion of service business in overseas markets.
Sales of POS systems for domestic market rose as a result of efforts focused on expanding sales mainly of
payment terminals, self-ordering systems, smart receipts by taking into account measures against COVID19, amid a downturn in the investment appetite of retail and restaurant businesses.
Sales of POS systems for overseas markets increased as sales remained robust in each region.
Sales of auto ID systems for domestic market increased due to an increase in sales of barcode printersto specific customers.
As a result, net sales of the Retail Solutions Business Group were ¥266,964 million (up 7% year onyear). Operating profit of the business group was ¥10,609 million (down 23% year on year) due in part to
the impact of tight supply-demand balance of components despite the increase in net sales.
Workplace Solutions Business Group
The Workplace Solutions Business Group handles multifunction peripherals (MFPs) for domestic andoverseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets,and related products. Amid a severe business environment in which the impact of the spread of COVID-19
and intensifying competition with peers continue, the business group simultaneously reinforced “Customer2touch points functions” and “Overall business structure,” and built a robust and streamlined global
operation structure to focus on achieving its targets. At the same time, the business group worked onstrengthening Document Management System (DMS)/Enterprise Contents Management (ECM) solutions,the auto ID business, the cloud solutions platform, and other measures.
Sales of MFPs rose as a result of increased sales in the Americas, Europe, Asia and other overseas regions.
Sales of auto ID systems for overseas markets increased as a result of increased sales in the Americas,
Europe, Asia and other overseas regions.
Sales of inkjet heads increased due to increased sales to domestic and overseas customers.
As a result, net sales in the Workplace Solutions Business Group were ¥182,129 million (up 15% year onyear). Operating profit for the business group improved to ¥957 million (operating loss of ¥5,477 million
in the previous fiscal year) due mainly to the increase in net sales and reduction of fixed costs despite
being affected by tight supply-demand balance and soaring prices in components and international cargotransportation.
(Note) An auto ID system is a system that uses hardware and software devices to recognize and manage
data content by automatically scanning barcode and RFID tag data.
(2) Financial condition
Status of Assets, Liabilities and Net Assets
Assets at the end of the fiscal year ended March 31, 2022 increased by ¥20,943 million from the end of
the previous fiscal year to ¥310,256 million. This was mainly because notes and accounts receivable trade, and contract assets increased by ¥6,918 million, merchandise and finished goods increased by¥3,224 million, work in process increased by ¥1,259 million, raw materials and supplies increased by¥7,103 million and investment securities in investments and other assets increased by ¥6,044 million,
although cash and deposits declined by ¥3,534 million.
Liabilities increased by ¥13,144 million from the end of the previous fiscal year to ¥192,594 million.
This was mainly because notes and accounts payable-trade increased by ¥4,832 million, accounts payable– other increased by ¥1,769 million, income tax payable increased by ¥1,471 million, unearned revenue
increased by ¥2,174 million and “other” in current liabilities increased by ¥1,818 million.
Net assets rose by ¥7,800 million from the end of the previous fiscal year to ¥117,662 million. This wasprimarily due to an increase in retained earnings of ¥5,381 million owing to the recording of profit
attributable to owners of parent, a decrease of ¥2,200 million due to payment of dividends, and an increasein foreign currency translation adjustment of ¥5,013 million.
(3) Overview of Cash Flows
Status of Cash Flows
An overview of cash flows during the fiscal year ended March 31, 2022 is as follows.
Net cash provided by operating activities was ¥10,037 million (compared with an inflow of ¥9,240
million in the previous fiscal year), reflecting profit before income taxes of ¥9,124 million, an increase ininventories of ¥8,813 million and income taxes paid of ¥4,810 million, offset by depreciation andamortization totaling ¥15,469 million.
Net cash used in investing activities was ¥14,184 million (compared with an outflow of ¥9,573 million in
the previous fiscal year), reflecting outlays for purchase of property, plant and equipment and intangible
assets, purchase of investment securities and other outflows.
As a result of the above, free cash flow amounted to an outflow of ¥4,147 million (compared with an
outflow of ¥333 million in the previous fiscal year).
Net cash used in financing activities was ¥5,496 million (compared an outflow of ¥4,309 million in theprevious fiscal year), reflecting repayments of finance lease liabilities, dividends paid, and other factors.
As a result of the above, the balance of Group funding in the fiscal year ended March 31, 2022 (cash andcash equivalents in the consolidated statement of cash flows) declined by ¥5,043 million from the previous
fiscal year to ¥46,709 million.

3

Source of Group capital and capital liquidity
Needed funding is secured internally by the Group from retained earnings, and basic liquidity is secured
through autonomous funding generated by reduction of assets and increased rates of asset efficiency;
funds are procured from financial institutions and other sources as needed.
Outlook for cash flows in the next fiscal year
In operating and investing activities, the Company will work to generate free cash flow mainly byincreasing earnings and improving the efficiency of its cash conversion cycle (CCC) and of its investments.
Trends in cash flow indicators
Fiscal year ended

March 2018

March 2019

March 2020

March 2021

March 2022

Capital adequacy ratio

29.2%

33.0%

30.3%

35.5%

36.1%

Capital adequacy ratio based on market value

61.0%

61.4%

64.8%

77.1%

87.6%

Debt redemption years

0.4 years

0.5 years

1.3 years

2.9 years

2.5yearsInterest Coverage Ratio

47.7

50.6

40.7

18.2

20.0

(Notes) Capital adequacy ratio: Equity / Total assets
Capital adequacy ratio based on market value: Market capitalization / Total assets
Market capitalization = Stock market price× (Total number of issued shares - Number of treasury shares)
Debt redemption years: Interest-bearing debt / Cash flows from operating activities
Interest Coverage Ratio: Cash flows from operating activities / Interest expense*In all cases, calculations are based on consolidated-basis financial values.
*Interest-bearing debt refers to all of those obligations recorded in the consolidated balance sheets that are subject to interest
payments.
Interest payments are stated as “interest expenses paid” in the consolidated statement of cash flows.

(4) Future Outlook
Despite the development and take-up of new COVID-19 vaccines and therapeutic drugs, andcontinuing recovery momentum on the back of economic stimulus measures around the world,
there is no end in sight to the spread of COVID-19, supply shortages, the Russia-Ukraine conflictand other issues. Looking ahead, we expect prospects for the global economy to remain uncertain.
Against this backdrop, and in line with a basic policy of “accelerating concentrated investment in
the growth field, after the structural reform and transformation, to become a solutions partner byutilizing data effectively,” the Group will work in concert to take a range of measures to develop its
business in the future.
In order to reduce the impact on business operations of the spread of COVID-19, the Group isalso working to further streamline operations, control indirect costs and reduce production andother costs, while ensuring continued benefits from structural reforms carried out so far. The Groupwill also take measures to expand sales in line with recovery in the global economy after the
COVID-19 disaster.
Major policies for the reporting segments in the coming year ending March 31, 2023 are as
follows.

Retail Solutions Business GroupIn order to expand marketing of mainstay products, such as POS systems for domestic andoverseas markets, auto ID systems for the domestic market and related products in these fields, andto provide total solutions through promotion of Digital Transformation (DX) products,
the Group will accelerate the strengthening of cooperation of our global resources.
Specifically, the Group will create new value by developing and launching new products geared
to market needs, tailoring sales and marketing to regional markets, strengthen service and supply
businesses, optimizing marketing service networks, and strengthen global cooperation in eachmeasure, so as to improve profitability, expand new business areas, and acquire new customers.

4

Workplace Solutions Business GroupWe plan to expand sales of our mainstay MFPs in overseas and domestic markets, auto ID
systems in overseas markets, and inkjet heads in domestic and overseas markets, as well as related
products. We will likewise work to construct a robust, lean global operational network and bolster
earnings structures by developing and launching strategic new products, tailoring sales andmarketing to local regions, optimizing marketing service networks and strengthening businesses inemerging countries, to position us to provide total solutions leveraging a wide range of productgroups and markets.
The consolidated financial results forecast for the fiscal year ending March 31, 2023, based on theabove policies, is as follows.
Consolidated

Net sales

450.0

billion yen

Operating profit

18.0

billion yen

Ordinary profit

15.5

billion yen

Profit attributable to owners of parent

8.0

billion yen

The above performance forecasts assume average exchange rates of ¥120 to the dollar and ¥135
to the euro for the fiscal year ending March 31, 2023.
*Financial results forecasts are based on information currently available to the Company and certain
assumptions deemed reasonable, and are not intended to be the Company’s guarantee that they will beachieved. Actual results may significantly vary due to a variety of factors.
2. Basic approach to selection of accounting standards
To ensure creative growth, the Group has set a basic policy for rigorous financial discipline and will work tocentralize operational administration and information disclosure based on unified global rules as well as
strengthen financial governance. To speed up these activities, and to further facilitate cross-border comparisonsof financial information in capital markets, the Group plans to voluntarily adopt the International Financial
Reporting Standards (IFRS); the timing of this transition is now under discussion.

53. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Million yen)
As of March 31,2021

As of March 31,2022

AssetsCurrent assets
Cash and deposits

42,17938,645

Group deposits paid

10,064

8,073

Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods

63,928--70,846

31,58234,806Work in process

4,376

5,635

Raw materials and supplies

6,944

14,047

Other

24,11523,363

Allowance for doubtful accounts(1,394)(1,414)

Total current assets

181,797

194,004

Non-current assets
Property, plant and equipment
24,55425,712

Accumulated depreciation(18,480)(19,523)

Buildings and structures, net

6,074

6,189

Buildings and structures

49,53253,582

Accumulated depreciation(39,399)(43,902)

Machinery, equipment and vehicles, net

10,133

9,680

Machinery, equipment and vehicles

Tools, furniture and fixtures

40,98340,322

Accumulated depreciation(35,856)(35,760)

5,126

4,562

Tools, furniture and fixtures, net
Land

1,270

1,272

Leased assets

33,98137,285

Accumulated depreciation(12,814)(17,456)

Leased assets, net

21,167

19,829Construction in progress

1,395

2,231

Total property, plant and equipment

45,16843,764

1,633

1,026

355

301

Other

9,521

9,894

Total intangible assets

11,510

11,223

Investment securities

5,170

11,214Retirement benefit asset

4,621

9,534

Deferred tax assets

27,36728,006

Other

Intangible assets
Goodwill
Customer relationship assets

Investments and other assets

13,76812,595

Allowance for doubtful accounts

(91)

(87)

Total investments and other assets

50,837

61,264

Total non-current assets

107,516

116,252

289,313

310,256

Total assets

6

(Million yen)
As of March 31, 2022

As of March 31, 2021
Liabilities
Current liabilities
48,509Notes and accounts payable - trade53,341542

859

Lease liabilities

7,178

6,464

Accounts payable - other

20,80922,578

Income taxes payable

1,375

2,846

Unearned revenue

15,014

17,188

Short-term borrowings

Other

31,91733,735

Total current liabilities

125,346

137,014

Non-current liabilities
Long-term borrowings

1,019

1,043

Lease liabilities

18,484

17,121Retirement benefit liability

26,62429,565

Other

7,976

7,848

Total non-current liabilities

54,10455,579179,450

192,594

39,97039,97057854

52,61655,977

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares(5,372)(4,733)

Total shareholders' equity

87,27392,068

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,681

1,626

(16)

12

Foreign currency translation adjustment

10,805

15,819Minimum pension liability adjustments

(832)

(694)

Remeasurements of defined benefit plans

3,799

3,114

Total accumulated other comprehensive income

15,436

19,87757

48

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

7

7,094

5,667

109,862

117,662

289,313

310,256

(2) Consolidated Statement of Income and Comprehensive Income
Consolidated Statement of Income(Million yen)
For the fiscal year
ended March 31, 2021

For the fiscal year
ended March 31, 2022

Net sales

405,694445,317

Cost of sales

243,421269,369

Gross profit

162,272

175,948

Selling, general and administrative expenses

154,009

164,381

8,263

11,566

Interest income

272

375

Dividend income

46

46

Gain on valuation of derivatives-

413

Operating profit
Non-operating income

Foreign exchange gains

832

-

Other

484

331

1,635

1,167

Interest expenses

506

488

Loss on valuation of derivatives

673-

Foreign exchange losses-

691

Loss on sale and retirement of non-current assets

48

39

Other

1,476

1,316

Total non-operating expenses

2,705

2,536

7,193

10,197

Gain on sale of investment securities-

286

Reversal of environmental expenses

284-

Total extraordinary income

284

286

-

23

Loss on sale of investment securities-

1

Loss on valuation of investment securities

25-

Restructuring cost

7,628

1,333

Total extraordinary losses

7,653

1,359

Profit (loss) before income taxes

(176)

9,124

Income taxes - current

1,212

4,462

Income taxes - deferred(6,614)

1,234

Total income taxes(5,402)

5,696

Profit

5,225

3,428

Loss attributable to non-controlling interests(1,900)(1,953)

Profit attributable to owners of parent

7,126

5,381

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss of noncurrent assets

8Consolidated Statement of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2021
Profit

For the fiscal year
ended March 31, 2022

5,225

3,428

473

(54)

(12)
3,263

29
5,617

Remeasurements of defined benefit plans, net of tax

(311)
5,490

137
(684)

Total other comprehensive income

8,902

5,045

Comprehensive income

14,1288,473

Comprehensive income attributable to
Owners of parent
Non-controlling interests

15,776(1,648)

9,822(1,348)Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Minimum pension liability adjustment

9(3) Consolidated Statement of Changes in Net Assets
For the fiscal year ended March 31, 2021
(Million yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

Capital surplus

39,970Retained earnings

Treasury shares

Total shareholders'equity46,040(5,422)80,612

24

39,970

Restated balance

24

46,040(5,422)80,612

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
period

(549)

(549)

7,126

7,126

33

Balance at end of period

(12)

(12)

62

95

-

33

6,576

50

6,660

39,97057

52,616(5,372)87,273

Accumulated other comprehensive income
Valuation
Total
DeferredForeign
Minimum Remeasuredifference
accumulated
gains orcurrency
pensionments ofon availableotherlosses on translation
liability defined benefit
for-salecomprehensive
hedges adjustment adjustment
plans
securities
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

1,208

(4)

7,795

(521)

(1,691)

6,786

Share
Nonacquisition controllingrightsinterests

110

8,873

Total net
assets96,384
-

1,208

(4)

7,795

(521)

(1,691)

6,786

110

8,873

96,384

Changes during period(549)

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period

7,126
(12)
95
473

(12)

3,010

(311)

5,490

8,650

(53)

(1,779)

6,817

473

(12)

3,010

(311)

5,490

8,650

(53)

(1,779)13,478

1,681

(16)

10,805

(832)

3,799

15,43657

7,094

109,86210

For the fiscal year ended March 31, 2022
(Million yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

Capital surplus

39,970Retained earnings
57

Total shareholders'equityTreasury shares

52,616(5,372)87,273

179
39,970

Restated balance

57

179

52,796(5,372)87,452

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
period(2,200)(2,200)

5,381

5,381

796

Balance at end of period

(12)

(12)

651

1,448

-

796

3,180

638

4,616

39,970854

55,977(4,733)92,068

Accumulated other comprehensive income
Valuation
Total
DeferredForeign
Minimum Remeasuredifference
accumulated
gains orcurrency
pensionments ofon availableotherlosses on translation
liability defined benefit
for-salecomprehensive
hedges adjustment adjustment
plans
securities
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

1,681

(16)

10,805

(832)

3,799

15,436

Share
Nonacquisition controllingrightsinterests

57

7,094

Total net
assets109,862
179

1,681

(16)

10,805

(832)

3,799

15,43657

7,094

110,042

Changes during period(2,200)

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period

5,381
(12)
1,448
(54)

29

5,013

137

(684)

4,440

(8)

(1,427)

3,004

(54)

29

5,013

137

(684)

4,440

(8)

(1,427)

7,620

1,626

12

15,819

(694)

3,114

19,877

48

5,667

117,66211

(4) Consolidated Statement of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2021
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Loss (gain) on sales of investment securities
Reversal of environmental expenses
Impairment loss of noncurrent assets
Loss (gain) on valuation of investment securities
Restructuring cost
Interest and dividend income
Interest expenses
Loss (gain) on sale and retirement of non-current
assetsIncrease (decrease) in allowance for doubtful accounts

For the fiscal year
ended March 31, 2022

(176)
15,884
(284)
25
7,628
(318)
506

9,124
15,469
(284)
23
1,333
(422)
488

48

39

22
(4,106)(67)(3,210)

Payment for extra retirement payments(1,046)
4,989(8,788)
8,776
23,161
346(508)(7,505)

1,179(8,813)(1,314)
187
13,733
435
(501)
(843)

Income taxes paid

(6,319)(4,810)

Income taxes refund

66

2,023

9,240

10,037(450)(6,986)383(2,128)
(316)
11
57
(3)
7
(124)
(23)
(9,573)477(6,846)201(2,619)(6,255)
358
11
(0)
4
(29)
511
(14,184)(291)(3,932)
609
(12)
(552)
(130)
(4,309)(598)(4,793)
825
(76)
(12)
1,439
(2,200)(79)(5,496)

3,093

4,601

(1,549)53,30251,753(5,043)51,75346,709

Increase (decrease) in retirement benefit liability
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest 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 sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Net decrease (increase) in short-term loans receivable
Long-term loan advances
Proceeds from collection of long-term loans receivable
Payments for acquisition of businesses
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of finance lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale 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 period12(5) Notes to the consolidated financial statements
Notes on going concern assumption
Not applicable
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020; hereinafter, the “Revenue Recognition Standard”) and other standards from the
beginning of the fiscal year ended March 31, 2022. Under the standard, the Company recognizes
revenue when control over promised goods or services are transferred to customers at an amount
expected to be received in exchange for the goods or services.
Major changes resulting from the application of the Revenue Recognition Standard, etc. are as follows:

For contracts for commissioned software, etc. specified by the customer, to which the completed
contract method was previously applied, we have changed to a new method regarding the contracts
for which performance obligations are fulfilled over a certain period of time. Under the new method,
we estimate the progress status of fulfilment of performance obligations and recognize revenue overa certain period of time based on the progress status.
Regarding some of the transactions of consumables and transactions with the Company’s agents,
for which revenue was previously recognized at the time of shipment, we have changed to a new
method. Under the new method, we recognize revenue when control over merchandise and finishedgoods are transferred, or primarily at the point of the delivery of merchandise and finished goods.

While we previously applied the method of processing sales rebates and other types ofconsideration paid to the Company’s agents or customers as selling, general and administrative
expenses, we have changed to a new method to deduct the amount from net sales.
The Company applies the Revenue Recognition Standard, etc. in accordance with the transitional
treatment stipulated in the proviso of Paragraph 84 of the Revenue Recognition Standard, etc. The
cumulative impact of retrospectively applying the new accounting policy before the beginning of the
fiscal year ended March 31, 2022 has been added to or subtracted from retained earnings at the
beginning of the fiscal year, and the new accounting policy is applied from the balance at the beginningof the fiscal year.
As a result, retained earnings at the beginning of the period increased by ¥179 million by reflecting the
cumulative impact in net assets at the beginning of the fiscal year ended March 31, 2022.
Compared to the previous method, for the fiscal year ended March 31, 2022, net sales decreased by¥205 million, cost of sales increased by ¥313million, and selling, general and administrative expenses
decreased by ¥330 million. Operating profit, ordinary profit and profit before income taxes decreased by¥187 million, respectively and basic earnings per share decreased by ¥2.36.
Due to the application of the Revenue Recognition Standard, etc., notes and accounts receivable – trade,which had been presented under current assets in the consolidated balance sheet for the previous fiscal
year, are included in notes and accounts receivable - trade, and contract assets from the fiscal year ended
March 31, 2022.
In line with the transitional treatment provided in Paragraph 89-2 of the Revenue Recognition Standard,
figures for the previous consolidated fiscal year have not been reclassified by the new presentation
method.
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No.
30, July 4, 2019; hereinafter, the “Fair Value Measurement Standard”) and other standards from the
beginning of the fiscal year ended March 31, 2022. In line with the transitional treatment stipulated in
Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the Accounting Standard
for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company will apply the new
accounting policy provided by the Fair Value Measurement Standard, etc. prospectively. This does notaffect the consolidated financial statements.
13

Segment information
1. Outline of reportable segments(1) Determination of reportable segments
The Company’s reportable segments are the business units for which the Company is able to obtainrespective financial information separately for the Board of Directors to conduct periodic investigations
to determine distribution of management resources and evaluate the Group’s business results.
In order to take a leading role in the business environment and enable the Company to provide all
customers with solutions that are one step ahead, the Group has decided to add two new reporting
segments, the “Retail Solutions Business Group” and the “Workplace Solutions Business Group,”
through a separated classification of business management structure by products and services.
(2) Type of products and services belonging to each reportable segments
The Retail Solutions Business Group develops, manufactures, sells, and maintains POS systems fordomestic and overseas markets, auto ID systems for domestic market, and related products.
The Workplace Solutions Business Group develops, manufactures, sells, and maintains multifunction
peripherals (MFPs) for domestic and overseas markets, auto ID systems for overseas markets, inkjet
heads for domestic and overseas markets, and related products.
(3) Changes in reportable segment, etc.
From the fiscal year ended March 31, 2022, the Company has renamed the Printing Solutions
Business Group as the Workplace Solutions Business Group. The MFP business for the Japanesemarket formerly included in the Retail Solutions Business Group has been transferred to the
Workplace Solutions Business Group.
Segment information for the fiscal year ended March 31, 2021 disclosed above have been preparedbased on the reportable segment categories for the fiscal year ended March 31, 2022.
2. Method of calculation of the amounts of net sales, profit or loss, assets and others by reportablesegment
The accounting treatment methods used for reportable business segments are generally the same as theaccounting treatment methods used in the compilation of the consolidated financial statements.
Intersegment sales and transfers are based on actual market prices.
As stated in “Changes in accounting policies” above, the Company has applied the Revenue Recognition
Standard, etc. from the beginning of the fiscal year ended March 31, 2022 and changed the accounting
method of revenue recognition. Accordingly, the method of calculating profit or loss by reportablesegment has been changed in the same manner.
Due to the change, compared to the previous method, net sales of the Retail Solutions Business Groupfor the fiscal year ended March 31, 2022 decreased by ¥311 million and its segment profit decreased by¥211 million, while net sales of the Workplace Solutions Business Group increased by ¥105 million andits segment profit increased by ¥24 million.

14

3. Amounts of net sales, profit or loss, assets and others by reportable segment
I Fiscal year ended March 31, 2021
(Million yen)
Reportable segments
Adjustment(Note) 1

Retail Solutions

Workplace
Solutions

248,395

157,298

405,694

－

74

1,626

1,701

(1,701)

Net sales
Sales to external customers
Intersegment sales and transfers

Total

Consolidated
amount(Notes) 2

405,694－

Total

248,470

158,925

407,395

13,741(5,477)

8,263(1,701)－

405,694

Segment profit (loss)
Segment assets

125,571

140,093

265,664

23,648289,313

3,893

11,17015,063－15,063820
14,820

8,263

Other items
Depreciation and amortization
Amortization of goodwill
Increase in property, plant andequipment and intangible assets

－

820

820

－

5,456

9,364

14,820－(Notes) 1. Adjustments totaling ¥23,648 million in segment assets chiefly comprise surplus operating funds (cash) andlong-term investment funding (investment securities, etc.) at companies submitting reports.
2. Segment profit (loss) corresponds with operating profit in the consolidated statement of income.

Ⅱ Fiscal year ended March 31, 2022
(Million yen)
Reportable segments
Adjustment(Note) 1

Consolidated
amount(Note) 2

Retail Solutions

Workplace
Solutions

266,884

178,433

445,317

－

79

3,696

3,776

(3,776)

266,964

182,129

449,094445,317Total

Net sales
Sales to external customers
Intersegment sales and transfers
Total

445,317－

Segment profit

10,609957

11,566(3,776)－

Segment assets

143,794

148,296

292,091

18,165

310,256

3,626

11,176

14,802－14,802

－

666

666

－

666

14,879－14,87911,566

Other items
Depreciation and amortization
Amortization of goodwill
Increase in property, plant andequipment and intangible assets

4,370

10,508(Notes) 1. Adjustments totaling ¥18,165 million in segment assets chiefly comprise surplus operating funds (cash) andlong-term investment funding (investment securities, etc.) at companies submitting reports.
2. Segment profit corresponds with operating profit in the consolidated statement of income.

15Per share Information

For the fiscal year ended March 31, 2021
Net assets per share

For the fiscal year ended March 31, 2022

1,867.01 yen Net assets per share

2,023.35 yen

Basic earnings per share

129.55 yen Basic earnings per share

97.68 yen

Diluted earnings per share

129.46 yen Diluted earnings per share

97.65 yen

(Note) The bases for calculation of earnings per share and diluted earnings per share are as follows.

For the fiscal year
ended March 31, 2021

For the fiscal year
ended March 31, 2022

Basic earnings per share
Profit attributable to owners of parent (million yen)

7,126

5,381

－

－

7,126

5,381

55,00655,091

Adjustments to profit attributable to owners of parent (million
yen)

－

－

Increase in common shares (thousands of shares)

39

16(Share acquisition rights (thousands of shares))

(39)

(16)

Overview of dilutive stock not included in calculations ofdilutive earnings per share due to the absence of dilutive effect－－Amount not attributable to common stockholders (million yen)
Profit attributable to owners of parent related to common stock(million yen)
Weighted average number of common shares outstanding
during the period (thousands of shares)
Diluted earnings per share

Significant subsequent events
Not applicable*Notes considered immaterial to presentation of financial results statements have been omitted indisclosures.

16

4. Supplementary information(1) Changes in information about financial results[Consolidated]
Description(Million yen)

For the fiscal year ended
March 31,2021

Net sales

For the fiscal year ended
March 31,2022

For the fiscal year ending
March 31, 2023
(Forecast)405,694445,317450,000

Year-on-year change

84%

110%

101%

Operating profit

8,263

11,56618,000Year-on-year change

59%

140%

156%

Ordinary profit

7,193

10,197

15,500Year-on-year change

62%

142%

152%

Profit attributable to owners of parent

7,126

5,381

8,000

Year-on-year change

191%

75%

149%

Basic earnings per share (yen)129.5597.68

145.2172

69

undecided

105.79112.05120.00123.21130.54135.00

Number of consolidated subsidiaries

Average exchange rate
(Yen to the US dollar)
Average exchange rate
(Yen to the euro)[Non-consolidated]
Description(Million yen)
For the fiscal year ended
March 31,2021

Net sales

For the fiscal year ended
March 31,2022

216,332

232,428

Year-on-year change

80%

107%

Operating profit (loss)(2,169)778

Year-on-year change－－

Ordinary profit

1,297

3,622

Year-on-year change

15%

279%

Profit

8,437

471

－

6%

Annual dividend per share (yen)

20.00

40.00

Basic earnings per share (yen)153.38

8.56

Year-on-year change17

(2) Changes in reportable segment information[Consolidated net sales]

Description(Million yen)

For the fiscal year ended
March 31,2021

For the fiscal year ended For the fiscal year ending
March 31, 2023
March 31,2022(Forecast)

248,470

266,964

265,000

－

107%

99%

158,925

182,129

195,000

－

115%

107%

Subtotal

407,395

449,094

460,000

Elimination(1,701)(3,776)(10,000)

Total

405,694445,317450,000

84%

110%

101%

Retail Solutions Business Group
Year-on-year change
Workplace Solutions Business Group
Year-on-year change

Year-on-year change(Note) 1 Net sales for each business are included in “Intersegment sales and transfers.”
2 Segment information for the fiscal year ended March 31, 2021 disclosed have been reclassed on thereportable segment categories after the fiscal year ended March 31, 2022.

[Consolidated operating profit]

Description(Million yen)
For the fiscal year ended
March 31,2021

For the fiscal year ended For the fiscal year ending
March 31, 2023
March 31,2022(Forecast)

Retail Solutions Business Group

13,741

10,60911,500Operating profit margin

5.5%

4.0%

4.3%

Workplace Solutions Business Group

(5,477)

957

6,500

Operating profit margin(3.4)%

0.5%

3.3%

Total

8,263

11,56618,000Operating profit margin

2.0%

2.6%

4.0%

(Note) Segment information for the fiscal year ended March 31, 2021 disclosed have been reclassed on
the reportable segment categories after the fiscal year ended March 31, 2022.

18

(3) Changes in net sales by destination market[Changes in net sales by destination market / Consolidated]
Description

For the fiscal year ended
March 31,2021

Japan

178,906

44%

40%

115,201

137,11428%

31%

76,79884,53919%

19%37,59144,7579%

10%405,694445,317

100%

100%

Percentage of consolidated net sales
EuropePercentage of consolidated net sales
Other
Percentage of consolidated net sales
Total
Percentage of consolidated net sales

For the fiscal year ended
March 31,2022

176,103

Percentage of consolidated net sales
Americas(Million yen)

(4) Changes in proportion of overseas production by value[Changes in proportion of overseas production by value / Consolidated]
Description

For the fiscal year ended
March 31,2021

For the fiscal year ended
March 31,2022

73%

Overseas ratio

77%(5) Changes in resource inputs[Increase in property, plant and equipment and intangible assets / Consolidated]
Description

For the fiscal year ended
March 31,2021

Consolidated

For the fiscal year ended
March 31,2022

For the fiscal year ending
March 31, 2023
(Forecast)

14,82014,87918,500

66%

100%

124%

Year-on-year change[Research and development expenses / Consolidated]
Description(Million yen)

(Million yen)

For the fiscal year ended
March 31,2021

For the fiscal year ended
March 31,2022

For the fiscal year ending
March 31, 2023
(Forecast)

Consolidated

21,81821,94925,500Net sales ratio

5.4%

4.9%

5.7%

Year-on-year change

81%

101%

116%

[Number of employees at the end of the fiscal year / Consolidated]
Description

For the fiscal year ended
March 31,2021

For the fiscal year ended
March 31,2022

For the fiscal year ending
March 31, 2023
(Forecast)

Consolidated

18,511

18,53918,700Year-on-year change(1,503)28

161

19