Consolidated Financial Results
for the Year Ended March 31, 2023
[Japanese GAAP]May 11, 2023
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
General Manager of Corporate Communications Division
Phone 03-6830-9151
Scheduled date of Annual General Meeting of Shareholders: June 30, 2023
Scheduled date of commencing dividend payments: June 9, 2023
Scheduled date of filing annual securities report: June 30, 2023
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, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2023
510,767
14.7
16,07839.0
13,14928.9(13,745)
March 31, 2022
445,3179.8
11,56640.0
10,19741.8(24.5)
5,381(Note) Comprehensive income:Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:
Basic earnings
per share¥¥

Diluted earnings
per share(12,749) million [8,473 million [Rate of return on
equityOrdinary profit
to total assets-%](40.0)%]

Operating profit
to net sales ratio

Yen
Yen
%
%
%
Fiscal year ended
March 31, 2023
(248.37)(13.2)
4.2
3.1
97.68
March 31, 2022
97.65
5.0
3.4
2.6
(Reference) Equity in earnings (losses) of affiliated companies:
Fiscal year ended March 31, 2023:¥- million
Fiscal year ended March 31, 2022:¥- million(Note) Diluted earnings per share for the fiscal year ended March 31, 2023 is not presented even though the Company has issued
potential shares, because basic earnings per share was net loss.

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference)Equity:

Net assets

Million yen

310,692
310,256

As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

Million yen%

102,206
117,662¥¥

Net assets per share
Yen

31.0
36.1

1,738.02
2,023.35

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

96,195 million
111,946 million(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Million yen

Million yen

Million yen

Million yen

15,106
10,037(12,117)(14,184)(8,103)(5,496)43,81546,709

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end

Total

Dividends to
net assets
Payout ratio(consolidated) (consolidated)

Total
dividends

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2022

-

20.00

-

20.00

40.00

2,207

40.9

2.1

March 31, 2023

-

20.00

-

20.00

40.00

2,213

-

2.1

Fiscal year ending
March 31, 2024
(Forecast)

-

20.00

-

25.00

45.00

35.6

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

520,000
1.8
18,00011.9
15,000 14.1
7,000
126.48(Note) For details of consolidated financial results forecast for the fiscal year ending March 31, 2024, please refer to “1. Summaryof consolidated business results, etc. (4) Future outlook” on page 5 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
New(Company name:)
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 14 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, 2023:
57,629,140 shares
March 31, 2022:
57,629,140 shares2) Total number of treasury shares at the end of the period:
March 31, 2023:
2,281,668 shares
March 31, 2022:
2,301,938 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:

55,341,901 shares
55,091,175 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Million yen

Operating profit%

230,912232,428(0.7)
7.4

Basic earnings
per share

Million yen

Ordinary profit%-(10,073)
778

Million yen

5,884
3,622

Net income
%

62.5
179.1

Million yen(8,064)471%(94.4)

Diluted earnings
per share

Yen
Yen
Fiscal year ended
March 31, 2023
(145.72)
March 31, 2022
8.56
8.56
(Note) Diluted earnings per share for the fiscal year ended March 31, 2023 is not presented even though the Company has issued potential
shares, because basic earnings per share was net loss.

(2) Non-consolidated Financial Position
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Total assets

Net assets

Million yen

196,123
196,081
As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

Million yen¥¥

72,951
83,28972,907 million
83,240 million

Net assets per share

%

Yen

37.2
42.5

1,317.27
1,504.52*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 5 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 ............................................................................................................................................ 4(4) Future outlook .......................................................................................................................................................... 5
2. Basic approach to selection of accounting standards ................................................................................................... 6
3. Consolidated Financial Statements and Notes ............................................................................................................. 7(1) Consolidated balance sheet....................................................................................................................................... 7(2) Consolidated statement of income and comprehensive income ............................................................................... 9
Consolidated statement of income ........................................................................................................................... 9
Consolidated statement of comprehensive income ................................................................................................ 10(3) Consolidated statement of changes in net assets ..................................................................................................... 11(4) Consolidated statement of cash flows .................................................................................................................... 13(5) Notes to the consolidated financial statements ....................................................................................................... 14
Notes on going concern assumption....................................................................................................................... 14
Changes in accounting policies .............................................................................................................................. 14
Additional information........................................................................................................................................... 14
Notes to the consolidated statement of income ...................................................................................................... 14
Segment information .............................................................................................................................................. 15
Per share information ............................................................................................................................................. 17
Significant subsequent events ................................................................................................................................ 17
4. Supplementary information ....................................................................................................................................... 18(1) Changes in information about financial results ...................................................................................................... 18(2) Changes in reportable segment information ........................................................................................................... 19(3) Changes in net sales by destination market ............................................................................................................ 20(4) Changes in proportion of overseas production by value ........................................................................................ 20(5) Changes in resource inputs ..................................................................................................................................... 20

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, 2023
The world economy for the fiscal year ended March 31, 2023 appeared to be in a favorable climate forrecovery with progress seen in balancing economic activities with measures taken to prevent COVID-19
infection in various countries. However, the economic outlook still remained uncertain due partly to theeffects of accelerated monetary tightening overseas and the Russian-Ukrainian problem, in addition to sharp
price rises, soaring raw material prices, and supply restrictions.
Amid such conditions, Toshiba Tec Corporation (the “Company”) and its subsidiaries (collectively, the“Group”) set forth the Basic Policy of the FY22-24 Mid-term Business Plan, “To become a global top
solutions partner by generating new value through co-creation with the aim of contributing to the resolutionof social issues.” 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 partner that helps solve issues in the domains ofstores, offices, logistics, and manufacturing, the Group has promoted initiatives to achieve the Sustainable
Development Goals (SDGs) together with customers and strived to contribute to realizing a sustainable
society.
In the fiscal year ended March 31, 2023, sales of POS systems for the overseas market and multifunction
peripherals (MFPs) for the overseas market increased due mainly to the impact of foreign exchange rates andgrowth in the Americas, resulting in net sales of ¥510,767 million (up 15% year on year). On the profit front,
although there were effects of tight supply-demand balance and soaring prices in components andinternational cargo transportation, profitability of MFPs improved, which resulted in operating profit of¥16,078 million (up 39% year on year), and ordinary profit of ¥13,149 million (up 29% year on year).
However, the recognition of “Loss on litigation” related to a patent dispute as an extraordinary loss, a partial
reversal of deferred tax assets and other factors resulted in loss attributable to owners of parent of ¥13,745
million (compared with profit attributable to owners of parent of ¥5,381 million in the previous fiscal year).
For details of the patent dispute, please refer to “3. Consolidated Financial Statements and Notes (5) Notes tothe consolidated financial statements (Notes to the consolidated statement of income) (Loss on litigation).”Regarding the year-end dividend for the fiscal year ended March 31, 2023, as a result of comprehensive
consideration of the above business results, the business environment, stable dividend payments and otherfactors, the Company has decided to pay 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, 2023 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 the impactof the spread of COVID-19 and intensifying competition with peers continue, the business group has worked
on various initiatives under the basic policy of “Aim at becoming a global top solutions partner in the
distribution industry.” These initiatives include solution business expansion through the global common retailplatform “ELERA” and strategic partnership, concentrated investment in growth fields (data services, next
generation stores, payment, and Supply Chain Management (SCM)), and the expansion of service business inoverseas markets.
Sales of POS systems for the domestic market declined under continued harsh conditions reflecting parts
supply constraints, rising prices, and other factors, despite a recovery trend in the investment appetite in theretail and restaurant businesses. However, sales showed signs of recovery due to efforts to expand sales
mainly of payment terminals, self-ordering systems, and smart receipts by taking into account measuresagainst COVID-19, as well as efforts to revise selling prices.
Sales of POS systems for overseas markets increased due to the impact of foreign exchange rates, anincrease in sales in the Americas, and other factors.
Sales of auto ID systems for the domestic market increased, primarily due to an increase in sales of barcode
printers, mainly to specific customers.

2

As a result, net sales of the Retail Solutions Business Group were ¥296,951 million (up 11% year on year).
Operating profit of the business group was ¥9,196 million (down 13% year on year) due to a deterioration in
profit and loss of POS systems for the domestic market affected by the negative impact of the cost increase
due to yen depreciation, and tight supply-demand balance and soaring prices in components.

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, andrelated products. Amid a severe business environment in which the impact of the spread of COVID-19, tightsupply-demand balance and soaring prices in components and international cargo transportation, declining
printing volume due to post-COVID-19 work style reforms and office DX promotion, and intensifying
competition with peers continue, the business group reinforced “Further strengthen our response capability tomarket changes” to focus on achieving its targets. At the same time, the business group worked onstrengthening solutions including Document Management System (DMS), the auto ID business, the cloud
solutions platform, and other measures in order to expand business in growth areas.
Sales of MFPs increased due to the impact of foreign exchange rates in addition to strong sales in theAmericas, Europe, Asia, and other overseas regions as a result of focusing on changing transportation method
or route, raising selling prices, and other efforts, despite the ongoing shortages in product supply caused by
the tight supply-demand balance in international cargo transportation, while the effects of the shortage ofcomponents were mitigated.
Sales of auto ID systems for overseas markets increased as a result of increased sales in the Americas,
Europe, Asia, and other overseas regions and the impact of foreign exchange rates.
Sales of inkjet heads decreased due to decreased sales to domestic customers despite increased sales tooverseas customers.
As a result, net sales in the Workplace Solutions Business Group were ¥217,672 million (up 20% year onyear). Operating profit for the business group improved to ¥6,882 million (up ¥5,924 million year on year)
due to the increase in net sales resulting from recovery from product supply disruptions, the increased selling
prices and other factors and vigorous efforts to reduce fixed costs, etc., in addition to progress of effectmitigation of the 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, 2023 increased by ¥436 million from the end of theprevious fiscal year to ¥310,692 million. This was mainly because cash and deposits, notes and accounts
receivable - trade, and contract assets, merchandise and finished goods, and “other” in current assets
increased by ¥4,042 million, ¥3,447 million, ¥2,810 million and ¥4,810 million, respectively, althoughgroup deposits paid in current assets, and deferred tax assets in investments and other assets declined by¥6,936 million and ¥6,872 million, respectively.
Liabilities increased by ¥15,892 million from the end of the previous fiscal year to ¥208,486 million.
This was mainly because accounts payable - other, income taxes payable, unearned revenue, “other” incurrent liabilities, and “other” in non-current liabilities increased by ¥5,581 million, ¥2,331 million,¥2,129 million, ¥1,557 million, and ¥2,984 million, respectively.
Net assets decreased by ¥15,456 million from the end of the previous fiscal year to ¥102,206 million. Thiswas primarily due to a decrease in retained earnings owing to the recording of loss attributable to owners ofparent of ¥13,745 million, the payment of dividends of ¥2,213 million, and a decrease in remeasurementsof defined benefit plans of ¥2,519 million, although foreign currency translation adjustment increased by¥2,312 million.

3(3) Overview of cash flows
Status of cash flows
An overview of cash flows during the fiscal year ended March 31, 2023 is as follows.
Net cash provided by operating activities was ¥15,106 million (compared with an inflow of ¥10,037 million
in the previous fiscal year), reflecting profit before income taxes of ¥4,710 million and depreciation andamortization totaling ¥16,755 million, partly offset by income taxes paid of ¥6,251 million, offset by.
Net cash used in investing activities was ¥12,117 million (compared with an outflow of ¥14,184 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 inflow of ¥2,989 million (compared with an outflow
of ¥4,147 million in the previous fiscal year).
Net cash used in financing activities was ¥8,103 million (compared with an outflow of ¥5,496 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, 2023 (cash andcash equivalents in the consolidated statement of cash flows) declined by ¥2,894 million from the end of theprevious fiscal year to ¥43,815 million.

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 by increasing
earnings and improving the efficiency of its cash conversion cycle (CCC) and of its investments.
Trends in cash flow indicators
Fiscal year ended

March 2019

March 2020

March 2021

March 2022

March 2023

Capital adequacy ratio

33.0%

30.3%

35.5%

36.1%

31.0%

Capital adequacy ratio based on market value

61.4%

64.8%

77.1%

87.6%

69.7%

Debt redemption years

0.5 years

1.3 years

2.9 years

2.5 years

1.8 years

Interest Coverage Ratio

50.6

40.7

18.2

20.0

29.0

(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 paid” in the consolidated statement of cash flows.

4(4) Future outlook
Despite the expectation of gradual recovery on the back of economic stimulus measures around the world
and other effects, prospects for the global economy are expected remain uncertain due in part to the impact
of monetary tightening overseas, soaring raw material prices, the prolonged Russia-Ukraine conflict andother issues.
Against this backdrop, and in line with its basic policy, “To become a global top solutions partner bygenerating new value through co-creation with the aim of contributing to the resolution of social issues,” theGroup will work in concert to take a range of measures toward sustainable growth.
Specifically, the Group will work on building an ecosystem through co-creation with partners byleveraging its physical assets, namely its global customer base and sales and maintenance networks, topropose highly value-added solutions with the aim of contributing to the resolution of social issues, as wellas enhancing corporate value.
Major policies for each reportable segment in the fiscal year ending March 31, 2024 are as follows.

Retail Solutions Business GroupIn order to expand marketing of mainstay products, such as POS systems for domestic and overseas
markets, auto ID systems for the domestic market and related products in these fields, and to provide totalsolutions through promotion of Digital Transformation (DX) products, the Group will accelerate thestrengthening of cooperation of our global resources.
Specifically, the Group will proceed with co-creation with partners and reinforce its global development
system to accelerate solution development, tailor sales and marketing to regional markets, boost recurring
revenue business, optimize marketing service networks, and strengthen global cooperation in each measure,thereby improving profitability, expanding new business areas, and acquiring new customers. Furthermore,
the group aim to find solution partners with advanced IT technologies, develop new solutions, and create
future technologies by utilizing the Innovation & Incubation hub to be established in Dallas, Texas in 2022.
Workplace Solutions Business GroupWe plan to expand sales of our mainstay MFPs in overseas and domestic markets, auto ID systems inoverseas 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 bydeveloping and launching strategic new products, tailoring sales and marketing to local regions, optimizing
marketing service networks and strengthening businesses in emerging countries, to position us to provide
total solutions leveraging a wide range of product groups and markets.
The consolidated financial results forecast for the fiscal year ending March 31, 2024, based on the above
policies, is as follows.
Consolidated

Net sales

520.0

billion yen

Operating profit

18.0

billion yen

Ordinary profit

15.0

billion yen

Profit attributable to owners of parent

7.0

billion yen

The above performance forecasts assume average exchange rates of ¥130 to the dollar and ¥140 to the euro
for the fiscal year ending March 31, 2024.
* 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.

5

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.

63. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Million yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Group deposits paid

38,645
8,073

42,687
1,137

Notes and accounts receivable - trade, and contract
assets

70,84674,293Merchandise and finished goods

34,806

37,616Work in process

5,635

5,967

Raw materials and supplies

14,047

11,884Other

23,36328,173

Allowance for doubtful accounts(1,414)(1,185)

Total current assets

194,004

200,575

25,712

26,785

Accumulated depreciation(19,523)(20,658)

Buildings and structures, net

6,189

6,126

Machinery, equipment and vehicles

53,58258,582(43,902)(48,046)

9,680

10,536

Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures

40,322

40,468

Accumulated depreciation(35,760)(35,528)

4,562

4,940

1,272

1,275

Tools, furniture and fixtures, net
Land37,28546,756

Accumulated depreciation(17,456)(25,504)

Leased assets, net

19,82921,252

Construction in progress

2,231

1,041

Total property, plant and equipment

43,76445,173

1,026

557

Leased assets

Intangible assets
Goodwill

301

213

Other

9,894

10,315

Total intangible assets

11,223

11,086

Investment securities

11,214

11,103Retirement benefit asset

9,534

8,748

Deferred tax assets

28,006

21,134Other

12,595

13,279Allowance for doubtful accounts(87)
61,264(408)
53,857116,252
310,256

110,117
310,692

Customer relationship assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

7

(Million yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

53,341

54,167859

1,779

Lease liabilities

6,464

6,652

Accounts payable - other

22,57828,159

Income taxes payable

2,846

5,177

Unearned revenue

17,18819,317

Other

33,73535,292

Total current liabilities

137,014150,546

Long-term borrowings

1,043

2,581

Lease liabilities

17,12115,804Retirement benefit liability

29,56528,722

Other

7,848

10,832

Non-current liabilities

Total non-current liabilities
Total liabilities

55,57957,940

192,594

208,486

39,97039,970Net assets
Shareholders' equity
Share capital
Capital surplus

854

902

Retained earnings

55,97740,017

Treasury shares(4,733)(4,695)

Total shareholders' equity

92,06876,195

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

1,626

1,525

12

(40)

Foreign currency translation adjustment

15,81918,131Minimum pension liability adjustments

(694)

(212)

Remeasurements of defined benefit plans

3,114

595

Total accumulated other comprehensive income

19,877

19,999

Share acquisition rights

48

43

Non-controlling interests

5,667

5,966

117,662102,206

310,256

310,692

Total net assets
Total liabilities and net assets8(2) Consolidated Statement of Income and Comprehensive Income
Consolidated Statement of Income(Million yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Net sales

445,317

510,767

Cost of sales

269,369

311,115Gross profit

175,948

199,651

Selling, general and administrative expenses

164,381

183,572

Operating profit

11,566

16,078Interest income

375

332

Dividend income

46

76

Gain on valuation of derivatives

413

86

Other

331

509

1,167

1,005

Interest expenses

488

584

Foreign exchange losses

691

1,487

Loss on sale and retirement of non-current assets

39

107

Commission expenses

233

405

1,082

1,349

Non-operating income

Total non-operating income
Non-operating expenses

Other

2,536

3,934

10,197

13,149Gain on sale of investment securities

286

45

Total extraordinary income

286

45

Impairment loss of noncurrent assets

23-

Loss on sale of investment securities

1-

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

-

819

1,333

371

-

392

-

6,900

1,359

8,484

Profit before income taxes

9,124

4,710

Income taxes - current

4,462

8,141

Income taxes - deferred

1,234

9,848

Total income taxes

5,696

17,989Profit (loss)

3,428(13,279)

Profit (loss) attributable to non-controlling interests(1,953)

466

Profit (loss) attributable to owners of parent

5,381(13,745)

Loss on valuation of investment securities
Restructuring cost
Loss on reversal of foreign currency translation
adjustment due to liquidation of overseas subsidiaries
Loss on litigation
Total extraordinary losses

9Consolidated Statement of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2022
3,428

(13,279)

Valuation difference on available-for-sale securities

(54)

(100)

Deferred gains or losses on hedges

29

(52)

Foreign currency translation adjustment

5,617

2,720

Minimum pension liability adjustment

137

482

Profit (loss)
Other comprehensive income(684)(2,519)

5,045

529

8,473

(12,749)

Owners of parent

9,822

Non-controlling interests(1,348)(13,623)874

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to10

(3) Consolidated Statement of Changes in Net Assets
For the fiscal year ended March 31, 2022

(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies

Capital surplus

Retained earnings

57

52,61639,970Treasury shares

Total shareholders'equity(5,372)87,273179

Restated balance

39,97057

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 thanshareholders’ equity
Total 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

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuation
Total
Minimum RemeasureDeferred
Foreigndifference
accumulated
pensionments ofgains or currency
on availableotherliability defined benefit
losses on translation
comprehensive
for-saleadjustment adjustment
hedgesplans
securities
income1,681(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
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(2,200)
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

For the fiscal year ended March 31, 2023
(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies

Capital surplus

Retained earnings

854

55,97739,970Treasury shares

Total shareholders’ equity(4,733)92,068–

Restated balance

39,970854

55,977(4,733)92,068Changes during period
Dividends of surplus
Profit (loss)
attributable to ownersof parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
period(2,213)(2,213)(13,745)(13,745)

47

Balance at end of period

(6)

(6)

45

92

–

47

(15,959)38(15,873)

39,970902

40,017(4,695)76,195

Share
Nonacquisition controllingrightsinterests

Total net
assets

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuation
Total
Minimum RemeasureDeferred
Foreigndifference
accumulated
pensionments ofgains or currency
on availableotherliability defined benefit
losses on translation
comprehensive
for-saleadjustment adjustment
hedgesplans
securities
income1,626

12

15,819

(694)

3,114

19,877

48

5,667

117,662
–

1,626

12

15,819

(694)

3,114

19,877

48

5,667

117,662

Changes during period
Dividends of surplus
Profit (loss)
attributable to ownersof parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(2,213)(13,745)
(6)
92
(100)

(52)

2,312

482

(2,519)

121

(4)

299

416

(100)

(52)

2,312

482

(2,519)

121

(4)

299

(15,456)

1,525

(40)

18,131(212)

595

19,99943

5,966

102,20612

(4) Consolidated Statement of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Loss (gain) on sale of investment securities
Impairment loss of noncurrent assets
Loss (gain) on valuation of investment securities
Restructuring cost
Loss on reversal of foreign currency translation
adjustment due to liquidation of overseas subsidiaries
Loss on litigation
Interest and dividend income
Interest expenses
Loss (gain) on sale and retirement of non-current
assetsIncrease (decrease) in allowance for doubtful accounts
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
Payment for extra retirement payments
Payments for loss on litigation
Income taxes paid
Income taxes refund
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
Purchase of shares of subsidiaries resulting in change inscope of consolidation
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 period

13

For the fiscal year
ended March 31, 2023

9,124
15,469
(284)
23
1,333
-

4,710
16,755
(45)
819
371
392

(422)
488
39

6,900
(408)
584
107

(67)
(3,210)1,179(8,813)(1,314)
187
13,733
435
(501)
(843)
(4,810)
2,023
10,037(22)(3,967)
1,620
1,991(4,710)9
25,108
404
(520)
(958)
(3,500)(6,251)
824
15,106477(6,846)201(2,619)(6,255)
358
11
(0)
4
(29)
-

(0)
(8,331)239(2,673)
(950)
80
3
(0)
4
(531)

511
(14,184)42(12,117)(598)(4,793)
825
(76)
(12)
1,439
(2,200)(79)(5,496)
4,601

388(7,679)
2,541
(559)
(6)
(2,213)(574)(8,103)
2,219(5,043)51,75346,709(2,894)46,70943,815

(5)Notes to the consolidated financial statements
Notes on going concern assumption
Not applicable
Changes in accounting policies
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the Implementation Guidance on Accounting Standard for Fair Value
Measurement (ASBJ Guidance No. 31, June 17, 2021; hereinafter, the “Implementation Guidance on
Fair Value Measurement Standard”) from the beginning of the fiscal year ended March 31, 2023. In linewith the transitional treatment stipulated in Paragraph 27-2 of the Implementation Guidance on Fair
Value Measurement Standard, the Company will apply the new accounting policy provided by the
Implementation Guidance on Fair Value Measurement Standard prospectively. This does not affect theconsolidated financial statements.
Additional information
Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System
Effective from the fiscal year ended March 31, 2023, the Company and some of its domestic
consolidated subsidiaries have shifted from the consolidated taxation system to the group tax sharing
system. In accordance with this change, the accounting treatment and disclosure of corporate and local
income taxes and tax effect accounting are in accordance with the Practical Solution on the Accounting
and Disclosure Under the Group Tax Sharing System (ASBJ Practical Solution No. 42, August 12,2021; hereinafter, the “Practical Solution No. 42”). In addition, in accordance with Paragraph 32 (1) of
the Practical Solution No. 42, the Company has deemed that there is no impact of the change inaccounting policy resulting from the application of the Practical Solution No. 42.
Notes to the consolidated statement of income
Loss on litigation
The Company and a domestic subsidiary (hereinafter, the “Company, etc.”) received a complaint forpatent infringement and a petition for order of provisional disposition in June 2021, as well as anotherpetition for order of provisional disposition in February 2022, filed by Teraoka Seiko Co., Ltd.
(hereinafter, the “Plaintiff”) in the Tokyo District Court for infringement of its patent rights related tosemi-self checkout. (Hereinafter, these complaint and petitions are collectively referred to as the“Teraoka’s Complaint.”)
On the other hand, the Company filed several petitions for provisional disposition with the Tokyo
District Court, with the Plaintiff and its group company DIGI I’s Ltd. as debtors, based on the patentrights held by the Company. (Hereinafter, these petitions are collectively referred to as the “Company’s
Petitions.”) The Company has been taking appropriate measures after carefully examining the details of
the Teraoka’s Complaint.
In the first quarter of the fiscal year ended March 31, 2023, the Tokyo District Court encouraged boththe Plaintiff and the Company, etc. to seek a settlement, and since July 2022, the Company has been
engaged in settlement negotiations with the Plaintiff in an effort to reach a resolution of the Teraoka’sComplaint and the Company’s Petitions. As a result, the Plaintiff and the Company reached anagreement to settle on November 30, 2022, and accordingly the Teraoka’s Complaint and theCompany’s Petitions have been resolved.
In the second quarter of the fiscal year ended March 31, 2023, it became possible to reasonably
estimate the amount deemed necessary as a settlement payment, hence provision for loss on litigation
was recorded as an extraordinary loss to prepare for possible future losses. In the third quarter of the
fiscal year ended March 31, 2023, as the Plaintiff and the Company reached an agreement to settle andthe amount of loss on litigation was finalized, it is shown as Loss on litigation.

14

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 product and service.
(2) Type of products and services belonging to each reportable segment
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.
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
the accounting treatment methods used in the compilation of the consolidated financial statements.
Intersegment sales and transfers are based on actual market prices.

15

3. Amounts of net sales, profit or loss, assets and others by reportable segment
I Fiscal year ended March 31, 2022
Reportable segments(Million yen)

Adjustment(Note) 1

Consolidated
amount(Note) 2

Retail Solutions

Workplace
Solutions

266,884

178,433

445,317－445,317

79

3,696

3,776

(3,776)－

266,964

182,129

449,094445,317

Net sales
Sales to external customers
Intersegment sales and transfers
Total

Total

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

11,566

Other items
Depreciation and amortization
Amortization of goodwill

Increase in property, plant and－
4,370
10,50814,87914,879equipment and intangible assets(Notes) 1. Adjustments totaling ¥18,165 million in segment assets chiefly comprise surplus operating funds (cash) and longterm investment funding (investment securities, etc.) at companies submitting reports.
2. Segment profit corresponds with operating profit in the consolidated statement of income.

II Fiscal year ended March 31, 2023

(Million yen)
Reportable segments

Net sales
Sales to external customers
Intersegment sales and transfers
Total

Adjustment(Note) 1

Consolidated
amount(Note) 2

Retail Solutions

Workplace
Solutions

296,915

213,851

510,767－

510,767

36

3,820

3,857

(3,857)－

Total

296,951

217,672

514,624

9,196

6,882

16,078(3,857)－510,767

Segment profit
Segment assets

138,275

154,675

292,950

17,741

310,692

4,125

12,084

16,210－16,210

－

544

544

－

544

5,185

12,365

17,550－17,55016,078Other items
Depreciation and amortization
Amortization of goodwill
Increase in property, plant andequipment and intangible assets(Notes) 1. Adjustments totaling ¥17,741 million in segment assets chiefly comprise surplus operating funds (cash) and longterm investment funding (investment securities, etc.) at companies submitting reports.
2. Segment profit corresponds with operating profit in the consolidated statement of income.

16Per share information
For the fiscal year ended March 31, 2022
Net assets per share

For the fiscal year ended March 31, 2023

2,023.35 yen Net assets per share

1,738.02 yen

Basic earnings per share

97.68 yen Basic earnings per share (loss)

Diluted earnings per share

97.65 yen Diluted earnings per share(248.37) yen－(Note) 1. Diluted earnings per share for the fiscal year ended March 31, 2023 is not presented even though the Company has
issued potential shares, because basic earnings per share was net loss.
2. The bases for calculation of earnings per share (loss) and diluted earnings per share are as follows.
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

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

5,381

(13,745)－－

Profit (loss) attributable to owners of parent related tocommon stock (million yen)

5,381

(13,745)

Weighted average number of common shares outstanding
during the period (thousands of shares)

55,091

55,341

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

－

－

Increase in common shares (thousands of shares)

16－(Share acquisition rights (thousands of shares))

(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)

Diluted earnings per share

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

17

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

For the fiscal year ended
March 31,2022

For the fiscal year ended
March 31,2023

For the fiscal year ending
March 31, 2024
(Forecast)

445,317

510,767

520,000

Year-on-year change

110%

115%

102%

Operating profit

11,566

16,07818,000Year-on-year change

140%

139%

112%

Ordinary profit

10,197

13,14915,000Year-on-year change

142%

129%

114%

Profit (loss) attributable to owners ofparent5,381(13,745)

7,000

Year-on-year change

75%

－

－

Basic earnings per share (loss) (yen)97.68(248.37)

126.48

Number of consolidated subsidiaries

69

67

undecided

112.05135.11130.00130.54140.86140.00Description
Net sales

Average exchange rate
(Yen to the US dollar)
Average exchange rate
(Yen to the euro)[Non-consolidated]
Description
Net sales(Million yen)
For the fiscal year ended
March 31,2022

For the fiscal year ended
March 31,2023

232,428

230,912Year-on-year change

107%

99%

Operating profit (loss)

778(10,073)

Year-on-year change－－

Ordinary profit

3,622

5,884

Year-on-year change

279%

163%

Profit (loss)

471(8,064)Year-on-year change

6%－

Annual dividend per share (yen)

40.00

40.00

Basic earnings per share (loss) (yen)8.56(145.72)18

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

For the fiscal year ended
March 31,2022

Retail Solutions Business GroupFor the fiscal year ended For the fiscal year ending
March 31, 2024
March 31,2023(Forecast)

266,964

296,951

307,000

107%

111%

103%

182,129

217,672

218,000

115%

120%

100%

Subtotal

449,094

514,624

525,000

Elimination(3,776)(3,857)(5,000)Total

445,317

510,767

520,000

110%

115%

102%

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

Year-on-year change(Note) Net sales for each business are included in “Intersegment sales and transfers.”[Consolidated operating profit]
Description(Million yen)
For the fiscal year ended
March 31,2022

For the fiscal year ended For the fiscal year ending
March 31, 2024
March 31,2023(Forecast)

Retail Solutions Business Group

10,609

9,196

11,000Operating profit margin

4.0%

3.1%

3.6%

Workplace Solutions Business Group

957

6,882

7,000

Operating profit margin

0.5%

3.2%

3.2%

Total

11,566

16,07818,000Operating profit margin

2.6%

3.1%

3.5%

19

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

For the fiscal year ended
March 31,2022

Japan

174,52440%

34%

137,114

183,98831%

36%

84,53994,94819%

19%44,75757,30410%

11%445,317

510,767

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 31,2023

178,906

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 31,2022

Overseas ratio

For the fiscal year ended
March 31,2023
73%

77%

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

For the fiscal year ended
March 31,2022(Million yen)

For the fiscal year ended For the fiscal year ending
March 31, 2024
March 31,2023(Forecast)

Consolidated

14,87917,55021,000Year-on-year change

100%

118%

120%

[Research and development expenses / Consolidated]
Description(Million yen)

For the fiscal year ended
March 31,2022

For the fiscal year ended For the fiscal year ending
March 31, 2024
March 31,2023(Forecast)

Consolidated

21,94924,531

29,000Net sales ratio

4.9%

4.8%

5.6%

Year-on-year change

101%

112%

118%

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

For the fiscal year ended
March 31,2022

Consolidated
Year-on-year change

20

For the fiscal year ended For the fiscal year ending
March 31, 2024
March 31,2023(Forecast)

18,53918,906

19,40028367494