2024

Financial
Statements

Independent Auditor’s ReportInabata & Co., Ltd. and consolidated subsidiaries
For the Years ended March 31,
2024 and 2023

KPMG AZSA LLC
July 2024

This independent auditor’s report prepared by KPMG AZSA LLC (including the one that issigned with electoronic signatures) shall not be reprinted, disclosed, quoted, summarized,
translated, cited, circulated or otherwise used, in whole or in part, to any third party including
posting on the web without prior written consent as specified by KPMG AZSA LLC, except forthe purpose of compliance with laws, regulations and the like, or for usage in response to anorder or request from an administrative or judicial body.

© 2024 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law
and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee. All rights reserved.

Independent auditor’s report
To the Board of Directors of Inabata & Co., Ltd.:
OpinionWe have audited the accompanying consolidated financial statements of Inabata & Co., Ltd. (“theCompany”) and its consolidated subsidiaries (collectively referred to as “the Group”), which comprisethe consolidated balance sheets as at March 31, 2024 and 2023, the consolidated statements of income
and comprehensive income, changes in net assets and cash flows for the years then ended, and notes,
comprising a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2024 and 2023, and its
consolidated financial performance and its consolidated cash flows for the years then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Groupin accordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in thecontext of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

Valuation of allowance for doubtful accounts for trade receivables
The key audit matter

How the matter was addressed in our audit

Notes receivable – trade, Electronicallyrecorded monetary claims – operating andAccounts receivable – trade (hereinafterreferred to as “trade receivables”) of¥206,463 million were recognized in the
consolidated balance sheet of Inabata & Co.,
Ltd. (the “Company”) and its consolidated

The primary procedures we performed to assess thereasonableness of the valuation of allowance for
doubtful accounts on trade receivables included thefollowing:(1) Internal control testingsubsidiaries (collectively referred to as the“Group”), representing approximately 48%
of total assets. Allowance for doubtful
accounts of ¥475 million included incurrent assets was mostly on tradereceivables. In addition, other assets of¥9,169 million and allowance for doubtful
accounts of ¥6,131 million included ininvestments and other assets were mostly
attributed to trade receivables.
As described in Note 2 “Summary ofsignificant accounting policies (c) Allowancefor doubtful accounts” to the consolidated
financial statements, with respect to normal
accounts receivable – trade, the allowance isstated at an amount based on the actual rateof bad debts in the past, and for certain
doubtful receivables, the uncollectible
amount is individually estimated. As for
doubtful receivables of foreign consolidated
subsidiaries, management determines theestimate of the allowance.
Account receivables of the Group include
receivables of a large number of domestic
and overseas customers. Each groupcompany performs credit management
including the establishment of credit
classifications and preservation of claims.
The Company also performs credit
management for customers with receivables
that are material.
In the valuation of allowance for doubtful
accounts related to trade receivables, eachgroup company and the Company need to
identify the status of receivables, particularly
defaults on receivables and their subsequent
status in a timely and comprehensive
manner, and reasonably estimate future
uncollectible amounts using the debtor's
financial evaluation approach. The estimates
involve a certain level of uncertainty becausechanges in the economic environment andother factors affect the credit risk ofcustomers. Accordingly, management’s
judgment thereon may have a significant
effect on the estimates.

We tested the design and operating effectiveness ofcertain of the Company’s internal controls relevant to
the process of recognizing an allowance for doubtful
accounts on trade receivables with a main focus on thefollowing:⚫

IT controls related to the preparation of a list of
past due receivables used for accurate andcomplete identification of past due receivables;and⚫

Controls to obtain necessary information ofcustomers that are delinquent in payments andapprove credit classifications assigned to them aswell as the calculated the amount of allowance for
doubtful accounts.

(2) Assessment of the reasonableness of theestimated future uncollectible amounts
In order to assess the reasonableness of the estimatedfuture uncollectible amounts of past due receivables,
we:⚫

inquired of the personnel responsible for credit
management about the bases on which credit
classifications are assigned to customers andestimated future uncollectible amounts arecalculated, and obtained related information
including external credit information to evaluate
the reasonableness of those bases; and⚫

examined the recent collection status including
status after the end of the period, and when thestatus indicated increased credit risk, assessed
whether the increase in the risk was appropriatelyreflected in the estimated future uncollectible
amounts.

With respect to the valuation of allowance for doubtful
accounts on trade receivables of significant
consolidated subsidiaries, we requested the component
auditors of those subsidiaries to perform part of theabove audit procedures, and evaluated the report of thecomponent auditors on the results of the procedures
and concluded as to whether sufficient and appropriate
audit evidence was obtained.

We, therefore, determined that the valuationof allowance for doubtful accounts on tradereceivables was one most significance in our
audit of the consolidated financial statements
for the current fiscal year, and accordingly, a
key audit matter.

Other Information
The other information comprises the information included in the disclosure documents that contain or
accompany the audited consolidated financial statements, but does not include the consolidated
financial statements and our auditor’s report thereon.
We do not perform any work on the other information as we determine such information does not exist.
Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan and using the going concern basis ofaccounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
The audit and supervisory committee are responsible for overseeing the directors’ performance of theirduties with regard to the design, implementation and maintenance of the Group’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with auditing standards generally accepted in Japan
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, while the objective of the audit is not to express an
opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting
and based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group tocease to continue as a going concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are inaccordance with accounting standards generally accepted in Japan, the overall presentation,
structure and content of the consolidated financial statements, including the disclosures, andwhether the consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.

We communicate with the audit and supervisory committee regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide the audit and supervisory committee with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the audit and supervisory committee we determine those mattersthat were of most significance in the audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.

Fee-related Information
Fees paid or payable to our firm and to other firms within the same network as our firm for audit andnon-audit services provided to the Company and its subsidiaries are described in “Audit remuneration”
included in “4.Additional Information” of the Annual Report.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year
ended March 31, 2024 are presented solely for convenience. Our audit also included the translation of
yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis
described in Note 1 to the consolidated financial statements.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of
the Certified Public Accountants Act of Japan.
Koji Yasui
Designated Engagement Partner
Certified Public Accountant
Yoshinori Nishi
Designated Other Partner
Certified Public Accountant

KPMG AZSA LLC
Osaka Office, Japan
July 29, 2024
Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by theCompany and KPMG AZSA LLC.

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMarch 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024

2023

2024

ASSETS
Current assets:
Cash and time deposits (Notes 8, 12 and 17)¥

51,310¥36,353$338,885

Notes receivable - trade (Note 17)

7,792

6,693

51,465

Electronically recorded monetary claims - operating (Note 17)

23,406

16,553

154,588

Accounts receivable - trade (Note 17)

175,264

153,640

1,157,550

Merchandise and finished goods

78,286

83,097517,050

Work in Process

1,938

802

12,800Raw materials and supplies
Other current assets

4,843
11,6394,990
13,62331,991
76,872

(475)

(382)

(3,139)354,006

315,373

2,338,065

Allowance for doubtful accounts (Note 17)
Total current assets
Property, plant and equipment:
Land (Note 8)

4,134

3,295

27,309Buildings and structures (Note 8)

18,43918,491

121,786

Machinery and equipment

22,887

20,351

151,162

Construction in progress
Other property, plant and equipment
Less accumulated depreciation
Property, plant and equipment, net
Investments and other assets:
Investment securities (Notes 5, 8 and 17)
Long-term loans receivable (Note 17)
Intangible assets
Net defined benefit asset (Note 11)
Deferred tax assets (Note 7)

291

210

1,923

8,666

7,753

57,23754,419(35,794)

50,104(33,497)359,419(236,407)

18,625

16,606

123,01234,872
2,262
3,855
9,346
1,313

32,840
1,323
2,403
8,215
1,202

230,318
14,94025,463
61,731
8,675

Other assets

9,169

7,779

60,561

Allowance for doubtful accounts (Note 17)
Total investments and other assets(6,131)(5,300)(40,495)

54,68848,464361,196

Total assets¥

427,320¥

See accompanying Notes to Consolidated Financial Statements.

- 1 -380,443$2,822,274

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (CONTINUED)

March 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024

2023

2024

LIABILITIES AND NET ASSETS
Current liabilities:
Notes and accounts payable - trade (Note 17)¥

127,702¥105,730$

843,424

Short-term loans payable (Notes 10 and 17)
Income taxes payable
Accrued expenses
Provision for bonuses

42,946
2,498
1,911
1,863

49,474
3,589
1,859
1,606

283,640
16,503
12,624
12,308Other current liabilities (Note 15)

12,315

11,273

81,339Total current liabilities

189,238

173,534

1,249,841

7,500
12,389
5,952
42
262
－

7,500
7,795
5,176
37
206
－

49,534
81,82739,316282
1,735－

Net defined benefit liability (Note 11)

2,343

1,713

15,475

Other non-current liabilities
Total non-current liabilities

2,836

2,972

18,731

31,32725,402206,903

9,364
7,177
144,689

9,364
6,718
134,684

61,84847,407
955,611(904)(2,220)(5,974)160,327

148,546

1,058,893

10,289595
28,541412

12,805395
17,187526

67,9603,930
188,507
2,721

39,83830,914

263,119

Non-currrent liabilities:
Bonds payable (Note 17)
Long-term loans payable (Notes 10 and 17)
Deferred tax liabilities (Note 7)
Provision for directors' retirement benefits
Provision for management board incentive plan trust
Provision for loss on guarantees

Contingent liabilities (Note 21)
Net assets
Shareholders' equity (Note 18)
Common stock:
Authorized - 200,000,000 shares
Issued - 55,914,127 shares in 2024 and 57,114,127 shares in 2023
Capital surplus
Retained earnings (Note 22)
Treasury stock, at cost: (Note 8 and 19)
680,789 shares in 2024 and 1,284,045 shares in 2023
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

¥

6,588

2,046

43,516

206,754

181,507

1,365,530

427,320¥

See accompanying Notes to Consolidated Financial Statements.
- 2 -380,443$2,822,274

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
Years ended March 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024
Net sales (Notes 3 and 15)¥

Cost of sales
Gross profit
Selling, general and administrative expenses (Note 9)
Operating income

2023

766,022696,734¥

2024

735,620
672,745$

5,059,259
4,601,638

69,28862,874

457,620

48,09742,560317,664

21,19020,314

139,956

Other income (expenses):
Interest and dividend income

1,498

2,187

9,898

Interest expenses (Note 10)(1,873)(1,823)(12,371)

Foreign exchange gains (losses)

(204)

(703)

(1,350)

Provision of allowance for doubtful accounts
Share of profit of entities accounted for using equity method

(101)
311

(71)
(1,065)

(672)
2,054

Loss on retirement of non-current assets

(543)

－

(3,587)

Gain on sales of non-current assets

285

－

1,882

Gain on sales of investment securities

3,765

8,661

24,869

(69)

(250)

(457)

Gain on bargain purchase (Note 14)

3,419

－

22,585

Loss on step acquisitions (Note 14)

(225)

－

(1,490)Loss on valuation of investment securities

Other, net

572

286

3,782

28,02527,522

185,099

Income taxes - current

6,883

7,569

45,460

Income taxes - deferred

450

405

2,976

Net income

20,692691

19,547
69

136,662
4,570

Income before income taxes
Income taxes (Note 7)

Net income attributable to non-controlling interests
Net income attributable to owners of parent¥

20,000

Amounts per share:¥

19,478$

U.S. dollars(Note 1)

Yen
2024

Basic net income per share¥

Cash dividends per share applicable to the year

362.172023¥

120.00See accompanying Notes to Consolidated Financial Statements.

- 3 -132,092

343.31115.00

2024
$

2.39
0.79

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years ended March 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024
Net income

¥

2023

20,692¥2024

19,547$

136,662

Other comprehensive income (Note 13):
Valuation difference on available-for-sale securities(2,164)

Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income
Comprehensive income(9,873)(14,295)

195

(12)

1,293

11,313

5,351

74,718

(103)

14

(681)

88

102

581

9,329

(4,417)

61,616¥30,021¥

15,129$198,279¥

28,924¥15,025$

191,033

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

1,097

See accompanying Notes to Consolidated Financial Statements.

- 4 -

104

7,245

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

Years ended March 31, 2024 and 2023
Millions of yen
2024
Shareholders' equity
Commonstock
Balance at April 1, 2023¥

Net income attributable toowners of parent
Dividends of surplus
Purchase of treasury stock
Retirement of treasury
stock
Disposal of treasury stock
Change in scope of
consolidation
Change in scope of equity
methodPurchase of shares of
consolidated subsidiaries
Net changes in items otherthan shareholders' equity
Balance at March 31, 2024¥

Capitalsurplus9,364¥

Retainedearnings
6,718¥

Treasurystock

134,684¥(2,220)－－20,000

－

－
－

－
－

(6,658)－－(2,230)－－(3,337)

3,337

－

584

－

304

－

－

－

(283)

－

－

－

188

－

(124)

－

－

－

－

－

－

9,364

¥

7,177

¥

144,689

See accompanying Notes to Consolidated Financial Statements.

- 5 -

¥

(904)

Millions of yen
2024
Accumulated other comprehensive income

Balance at April 1, 2023

Valuation
Deferred gains
difference on(losses) on
availablehedges
for-sale

Foreigncurrencytranslation
adjustments

Remeasurements Non-controllinginterestsof defined
benefit plans

¥

¥

¥

Net income attributable toowners of parent
Dividends of surplus
Purchase of treasury stock
Retirement of treasury
stock
Disposal of treasury stock
Change in scope of
consolidation
Change in scope of equity
methodPurchase of shares of
consolidated subsidiaries
Net changes in items otherthan shareholders' equity
Balance at March 31, 2024¥

12,805¥395

17,187

526

¥

2,046

Total

¥

181,507

－

－

－

－

－

20,000

－
－

－
－

－
－

－
－

－
－

(6,658)(2,230)

－

－

－

－

－

－

－

－

－

－

－

889

－

－

－

－

－

(283)

－

－

－

－

－

188

－

－

－

－

－

(124)

(2,515)200

11,354

(114)

4,542

13,467

10,289¥595¥

28,541¥412¥

See accompanying Notes to Consolidated Financial Statements.

- 6 -

6,588

¥

206,754Millions of yen
2023
Shareholders' equity
Commonstock
Balance at April 1, 2022¥

Net income attributable toowners of parent

Capitalsurplus9,364¥

Retainedearnings
7,044¥

Treasurystock

130,540¥(7,398)－－19,478

－

－
－

－
－

(7,425)－－(2,635)－(40)(7,908)

7,949

－

40

－

379

－

－

－

(419)

Treasury stock transfer ofstock ownership trust

－

－

－

13

Purchase of shares of
consolidated subsidiaries

－

(326)

－

－

－

－

－

(108)

－

－

－

－

Dividends of surplus
Purchase of treasury stock
Retirement of treasury
stock
Disposal of treasury stock
Treasury stock purchase ofstock ownership trust

Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Net changes in items otherthan shareholders' equity
Balance at March 31, 2023

¥

9,364

¥

6,718

- 7 -

¥

134,684¥(2,220)Millions of yen
2023
Accumulated other comprehensive income

Balance at April 1, 2022

Valuation
Deferred gains
difference on(losses) on
availablehedges
for-sale

Foreigncurrencytranslation
adjustments

Remeasurements
Non-controllingof definedinterests
benefit plans

¥

¥

¥

Net income attributable toowners of parent
Dividends of surplus
Purchase of treasury stock
Retirement of treasury
stock
Disposal of treasury stock
Treasury stock purchase ofstock ownership trust
Treasury stock transfer ofstock ownership trust
Purchase of shares of
consolidated subsidiaries
Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Net changes in items otherthan shareholders' equity
Balance at March 31, 2023¥

22,667¥398

11,793

508

¥

1,996

Total
¥

176,914

－

－

－

－

－

19,478

－
－

－
－

－
－

－
－

－
－

(7,425)(2,635)

－

－

－

－

－

－

－

－

－

－

－

419

－

－

－

－

－

(419)

－

－

－

－

－

13

－

－

－

－

－

(326)

－

－

－

－

－

(108)

(9,861)

(3)

5,394

17

49

(4,402)

12,805¥395¥

17,187¥526¥

See accompanying Notes to Consolidated Financial Statements.

- 8 -

2,046

¥

181,507

Thousands of U.S. dollars (Note 1)
2024
Shareholders' equity
Commonstock
Balance at April 1, 2023$

Net income attributable toowners of parent
Dividends of surplus
Purchase of treasury stock
Retirement of treasury
stock
Disposal of treasury stock
Change in scope of
consolidation
Change in scope of equity
methodPurchase of shares of
consolidated subsidiaries
Net changes in items otherthan shareholders' equity
Balance at March 31, 2024$

Capitalsurplus61,848$Retainedearnings
44,370$Treasurystock

889,532$(14,664)－－

132,092－－－(43,973)

－

－

－

－
(14,729)－－(22,039)

22,039

－

3,859

－

2,013

－

－

－

(1,875)

－

－

－

1,242

－

(822)

－

－

－

－

－

－

61,848$47,407$

955,611

See accompanying Notes to Consolidated Financial Statements.

- 9 -

$

(5,974)

Thousands of U.S. dollars (Note 1)
2024
Accumulated other comprehensive income

Balance at April 1, 2023

Valuation
Deferred gains
difference on(losses) on
availablehedges
for-sale

Foreigncurrencytranslation
adjustments

Remeasurements
Non-controllingof definedinterests
benefit plans

$

$

$

Net income attributable toowners of parent
Dividends of surplus
Purchase of treasury stock
Retirement of treasury
stock
Disposal of treasury stock
Change in scope of
consolidation
Change in scope of equity
methodPurchase of shares of
consolidated subsidiaries
Net changes in items otherthan shareholders' equity
Balance at March 31, 2024$

84,575$

2,609

113,518

3,475

$

Total

13,513$ 1,198,778

－

－

－

－

－

132,092

－
－

－
－

－
－

－
－

－
－

(43,973)(14,729)

－

－

－

－

－

－

－

－

－

－

－

5,872

－

－

－

－

－

(1,875)

－

－

－

－

－

1,242

－

－

－

－

－

(822)

(16,614)

1,321

74,988(753)

30,003

88,94543,516$ 1,365,530

67,960

$

3,930

$

188,507

$

2,721

$

See accompanying Notes to Consolidated Financial Statements.

- 10 -

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended March 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024

2023

2024

Cash flows from operating activities:
Income before income taxes¥

Adjustments to reconcile income before income taxes to cash provided
by operating activities:
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity method
Loss (gain) on step acquisitions
Gain on bargain purchase
Loss on retirement of non-current assets
Gain on sales of non-current assets
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Decrease (increase) in other non-current assets

28,025¥27,522$

185,099

3,743

3,532

(139)

(42)

24,725(921)(1,498)1,873(2,187)
1,823(9,898)12,371

(311)
225

1,065
－

(2,054)
1,490(3,419)－(22,585)

42
(285)
69

－
－
250

283
(1,882)457(3,765)(3,861)
13,608(8,661)
15,661(5,512)(24,869)(25,504)
89,875

331

2,004

2,192

8

115

56

Increase (decrease) in notes and accounts payable - trade

4,184(15,328)

27,634

Increase (decrease) in other current liabilities
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset

1,374
278
(1,197)(1,242)(8)(1,795)

9,080
1,837
(7,911)Other, net

(277)

446

(1,835)

SubtotalInterest and dividend income received

39,0091,611

17,623
2,203

257,640
10,645Interest expenses paid

(1,886)(1,800)(12,461)

Income taxes paid

(8,546)(8,111)(56,448)

30,187

9,915

199,375

Net cash provided by (used in) operating activities

See accompanying Notes to Consolidated Financial Statements.

- 11 -

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

Years ended March 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024

2023

2024

Cash flows from investing activities:
Payments into time deposits¥(4,829)¥(6,681)$(31,899)

Proceeds from withdrawal of time deposits

6,909

7,545

45,631

Purchase of property, plant and equipment(2,595)(2,527)(17,143)

Proceeds from sales of property, plant and equipment

301

34

1,993

Purchase of intangible assets(1,864)(423)(12,316)

Purchase of investment securities(2,808)(1,424)(18,551)

Proceeds from sales of investment securities

4,213

12,111

27,825Purchase of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Net decrease (increase) in short-term loans receivable

(548)

(445)

(3,622)(852)－(5,627)

50

146

335

(1,052)
781
(90)

(167)
171
(58)

(6,950)
5,159
(595)

(2,386)

8,278(15,761)

Payments of long-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

See accompanying Notes to Consolidated Financial Statements.

- 12 -

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
Years ended March 31, 2024 and 2023
Thousands of
U.S. dollars(Note 1)Millions of yen
2024

2023

2024

Cash flows from financing activities:
Net increase (decrease) in short-term loans payable¥(13,978)¥(13,072)$(92,323)

Proceeds from long-term loans payable
Repayments of long-term loans payable

7,099(2,558)4,266(2,158)46,889(16,900)

Proceeds from issuance of bonds－(2,245)

7,454

Purchase of treasury stock(3,069)－(14,829)

Proceeds from disposal of treasury shares
Proceeds from sale of shares of parent held by subsidiaries

－
1,453

Increase/decrease in money held in trust for acquisition of treasury stock
Cash dividends paid

2,837
(6,658)－(2,837)(7,450)18,743(43,973)

(19)

(35)

(129)

1,000

－

6,604

(124)

(326)

(822)

(786)

(757)

(5,196)(13,981)(17,568)(92,342)

2,691

912

17,778Dividends paid to non-controlling interests
Proceeds from share issuance to non-controlling shareholders
Payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation
Other - net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

419

－
9,596

Net increase (decrease) in cash and cash equivalents

16,511

1,538

109,049

Cash and cash equivalents at beginning of year

29,79028,251

196,752

Cash and cash equivalents at end of year (Note 12)¥46,301¥

See accompanying Notes to Consolidated Financial Statements.

- 13 -

29,790$305,801

INABATA & CO., LTD. AND CONSOLIDATED SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.

Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of INABATA & CO., LTD. (“the Company”) have been prepared inaccordance with the provisions set forth in the Japanese Financial Instruments and Exchange Law and its related accounting
regulations and in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different incertain respects as to application and disclosure requirements from International Financial Reporting Standards.
The accounts of consolidated foreign subsidiaries are prepared in accordance with mainly either International Financial ReportingStandards or U.S. generally accepted accounting principles, with adjustments for the specified five items as applicable incompliance with ASBJ Practical Solution No. 18, “Tentative Treatment of Accounting for Foreign Subsidiaries in Preparing
Consolidated Financial Statements.”
The accompanying consolidated financial statements have been reformatted and translated into English (with some expanded
descriptions) from the consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filedwith the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law.
Certain supplementary information included in the statutory Japanese language consolidated financial statements is not presented
in the accompanying consolidated financial statements.
The translations of the Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside
Japan, using the prevailing exchange rate at March 31, 2024, which was ¥151.41 to US$1.00. These translations should not be
construed as representations that the Japanese yen amounts have been, could have been or could in the future be converted into
U.S. dollars at this or any other rate of exchange.
As permitted, amounts of less than one million Japanese yen are omitted in the presentation for 2023 and 2024. As a result, thetotals shown in the accompanying consolidated financial statements, both in Japanese yen and in U.S. dollars, do not necessarily
agree with the sum of the individual amounts.

- 14 -

2.

Summary of significant accounting policies(a) Consolidation
The consolidated financial statements include the accounts of the Company and its 46 (42 in 2023) significant domestic andforeign subsidiaries (together “the Companies”), the management of which is controlled by the Company. Investments inunconsolidated subsidiaries and affiliates are, with minor exceptions, accounted for by the equity method. The Company has 3affiliates (4 in 2023) accounted for by the equity method. Intercompany transactions and accounts are eliminated.
In the elimination of investments in subsidiaries, the assets and liabilities of the subsidiaries, including the portion attributable tonon-controlling shareholders, are evaluated using the fair value at the time the Company acquired control of the respective
subsidiary.
For 7 consolidated subsidiaries, including SHANGHAI INABATA TRADING CO., LTD., the consolidation method underwhich tentative financial statements as of March 31 (the consolidated balance sheet date) were prepared in the same manner as theregular year-end financial statements are used for consolidation purposes due to the regulations regarding the accounting period in
the respective countries.
(b) Cash and cash equivalents
In preparing the consolidated statements of cash flows, cash on hand, readily available deposits and short-term highly liquid
investments with maturities not exceeding three months at the time of purchase are considered to be cash and cash equivalents.
(c) Allowance for doubtful accounts
An allowance for doubtful accounts is provided to cover possible losses on collection. With respect to normal accounts
receivable - trade, the allowance is stated at an amount based on the actual rate of bad debts in the past. For certain doubtfulreceivables, the uncollectible amount is individually estimated. With respect to doubtful receivables of foreign consolidated
subsidiaries, the allowance is determined by estimates of management.
(d) Securities
Equity securities issued by subsidiaries and affiliates which are not consolidated or accounted for using the equity method arestated at moving average cost.
Available-for-sale equity securities with fair market values are stated at the fair market value on the last day of the year. Nonequity available-for-sale securities with fair market values are stated at fair market value on the last day of the year. Unrealized
gains and losses on these securities are reported, net of applicable income taxes, as a separate component of net assets. Realized
gains and losses on the sale of such securities are computed using moving average cost. Other securities with no available fairmarket values are also stated at moving average cost.

- 15 -

(e) Derivative transactions and hedge accounting
Derivative transactions are measured at fair value. Hedging instruments which meet the criteria for hedge accounting are
accounted for using deferral hedge accounting, which requires that the unrealized gain or loss to be deferred as a component of net
assets until the loss or gain on the related hedged item is recognized.
Certain forward foreign exchange contracts, certain currency swap transactions and certain interest rate swap transactions areaccounted for using the allocation method and the special method. The allocation method requires that foreign currency monetary
receivables and payables covered by forward foreign exchange contracts are translated at contract rates. Under the special method,interest rate swap transactions are accounted for as if the interest rates under those transactions were originally applied to theunderlying loans.
With regard to forward foreign exchange contracts and currency swap transactions, the evaluation of the hedge effectiveness isomitted if the significant terms of the hedging instruments and those of the hedged items are the same and the risk of change in
foreign exchange rates is effectively hedged. With regard to interest rate swap transactions which meet the criteria for the special
method, the evaluation of hedge effectiveness is omitted.
The Companies enter into forward foreign exchange contracts, interest rate swap transactions and currency swap transactions tocontrol risks related to fluctuations in the exchange rates of foreign currencies and interest rates. Forward foreign exchange
contracts and currency swap transactions are used to hedge the risk of fluctuations in foreign currency exchange rates with respect
to monetary receivables, payables and forecasted transactions denominated in foreign currencies. Interest rate swap transactions
are used to hedge the risk of fluctuations in interest rates with respect to long-term loans payable.
The Companies use these derivative transactions in connection with managing their market risk and not for speculation or
dealing purposes. The Companies minimize the credit risk exposure of these derivative transactions by using only highly rated
financial institutions as counterparties. The derivative transactions are entered into in accordance with risk management policies.
(f) Inventories
Inventories are mainly stated at cost determined by the moving-average method and the first-in, first-out method (the book valueof the inventories is written down due to a decline in profitability).
(g) Property, plant and equipment
Property, plant and equipment are carried at cost and depreciated by the straight-line method.
(h) Leased assets
Property and equipment capitalized under finance leases are depreciated by the straight-line method over the term of therespective lease.
(i) Intangible assets
Intangible assets are depreciated by the straight-line method. Software is depreciated by the straight-line method over its
estimated useful life.
(j) Goodwill
Goodwill is depreciated by the straight-line method over five years.
(k) Income taxes
Income taxes comprise corporation tax, prefectural and municipal inhabitants’ taxes and enterprise tax. The Companies recognize
the tax effects of temporary differences between the carrying amounts of assets and liabilities for tax purposes and financial
reporting purposes. The asset-liability approach is used to recognize deferred tax assets and liabilities for the expected future tax
consequences of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for income tax purposes.
(l) Translation of foreign currencies
Receivables and payables denominated in foreign currencies are translated into Japanese yen at year-end exchange rates. Assets
and liabilities of foreign subsidiaries are translated into Japanese yen at year-end exchange rates, except for net asset accounts,
which are translated at historical exchange rates. Revenue and expense accounts are translated into Japanese yen at the averageexchange rates during the year. The resulting translation adjustments are presented separately in the consolidated financial
statements as foreign currency translation adjustments and in non-controlling interests.

- 16 -

(m) Retirement benefits
The Companies provide retirement payment plans and funded non-contributory pension plans under which all eligible employees
are entitled to benefits based on the level of wages and salaries at the time of retirement or termination, length of service andcertain other factors. The Companies sometime make additional payments that are not based on the amounts obtained by actuarial
calculations. The Company has employee retirement benefit trusts for both plans.
The Companies provide for employees’ severance and retirement benefits based on the estimated amounts of projected benefit
obligation and the fair value of plan assets at the end of the year. Actuarial differences and prior service costs are recognized
mainly in expenses using the straight-line method within the average of the estimated remaining service years of employees
commencing with the following period.
The estimated amount of all retirement benefits to be paid at future retirement dates is attributed to each period using a benefit
formula basis.
Actuarial differences are recognized in the income statement using the straight-line method over mainly 13 years.
Prior service cost is recognized in the income statement using the straight-line method over mainly 14 years.
Unrecognized actuarial differences and unrecognized prior service cost are recognized as remeasurements of defined benefit
plans within the net asset section after adjusting for tax effects.
Directors, corporate auditors and executive officers of certain subsidiaries receive retirement payments based on establishedguidelines similar to the employees’ retirement benefit plan, subject to shareholders’ approval. Retirement benefits provided for
directors and corporate auditors are sufficient to cover stipulated benefits arising from services performed as of the balance sheet
date.
Directors’ retirement benefits for officers of the Company’s subsidiaries had been made at an estimated amount based on the
Company’s internal rules for retirement allowances.
(n) Recognition of revenues and expenses
The Companies’ main businesses are the sale of goods, the manufacture and sale of various products, and the provision ofservices in Japan and overseas in the four business areas of IT & Electronics, Chemicals, Life Industry, and Plastics.
Sales of goods or products are recognized as revenue when the goods or products are delivered to customers. However, fordomestic sales, revenue is recognized at the time of shipment if the period from the time of shipment to the time when control ofthe product or product is transferred to the customer is a normal period. In export sales, revenue is recognized when the risk istransferred to the customer based on the trade terms mainly stipulated in Incoterms.
If the commitment with the customer is a performance obligation to arrange for goods or services to be provided by anotherparty, the Company does not control the goods or services to be transferred to the customer and only provides the services toarrange them, and therefore, the Company recognizes the net amount of fees or consideration as revenue as an agent.
(o) Provision for bonuses
The Company and certain subsidiaries accrue amounts for employees’ bonuses based on estimated amounts to be paid in thesubsequent period.
(p) Provision for management board incentive plan trust
To prepare for the payment of the Company's shares, etc., to the director, allowance for board benefit trust is recorded by theCompany’s executive share benefit provision at the expected amount of obligations on stock-based compensation to Directors.
(q) Amounts per share
Computations of net income per share of common stock are based on the weighted average number of shares outstanding during
each period.
Diluted net income per share is omitted because there are no dilutive shares at March 31, 2024 and 2023.
Cash dividends per share represent the cash dividends proposed by the Board of Directors as applicable to the respective fiscal
years together with the interim cash dividends paid.

- 17 -

3.

Accounting changes(Significant accounting estimates)(a) Carrying amounts in the current year’s financial statements
Thousands of
U.S. dollars

Millions of yen
2024

2023

2024

Equity securities:
Allowance for doubtful accounts (current assets)

¥

(475)

¥

(382)

$

(3,139)Allowance for doubtful accounts (non-current assets)(6,131)(5,300)(40,495)(b) Information on the nature of significant accounting estimates for identified items
In calculating the allowance for doubtful accounts, the Company reasonably estimates the estimated uncollectible amount ofsubject receivables based on credit classifications, etc., established in consideration of past receivables and the actual
conditions of customers’ external credit information, etc., in accordance with the policy stated in “(2. Summary of significant
accounting policies) (c) Allowance for doubtful accounts ” and determines that such amount is appropriated. However,
unforeseeable changes in assumptions, such as changes in the economic environment and other factors, may cause the credit
risks of customers to fluctuate from the initial estimates, and lead to loan loss losses and an increase or decrease in the amountof allowance for loan losses. In addition, there is a possibility that an additional allowance for doubtful accounts may beprovided for general receivables due to an increase in the historical rate of bad debt.
With respect to the outlook, the global economy is expected to continue recovering, although weakness is seen in someregions. On the other hand, uncertainties are expected to remain due to price increases, fluctuations in financial and capital
markets, concerns about the outlook of the Chinese economy, and geopolitical developments in the Middle East.
(Changes in presentation method)- Consolidated balance sheets“Electronically recorded monetary claims -operating, ” which was included in“ Notes receivable - trade ” under “Current assets ”
in the previous consolidated fiscal year, is presented separately from the current consolidated fiscal year due to its increased
quantitative significance. The consolidated financial statements of the previous consolidated fiscal year have been reclassified toreflect this change in presentation method.
As a result, ¥16,553 million, which was presented as “Notes receivable - trade ” under“ Current assets ” in the consolidatedbalance sheets of the previous fiscal year, has been reclassified to “Electronically recorded monetary claims -operating ” of ¥16,553
million.
(Additional information)- Performance-based Stock Compensation Plan for Directors
The Company has introduced a performance-based stock compensation plan, “Board Benefit Trust,” (the “Plan”) for Directors
with a view to increase their consciousness to contribute to performance improvement and corporate value increase in the mediumand long-term by clarifying the linkage between compensation for Directors and the Company’s financial performance and stock
value and sharing not only benefits of an increase in the Company’s equity value but risks of its decline.
(a) Overview of Transaction
The Plan is a performance-based stock compensation plan where a trust (a trust established under the Plan is referred to as the“Trust”) acquired the Company’s stock using money contributed by the Company and provides Directors with the Company’s
stock and money equivalent to the amount of the Company’s stock as converted using fair value (the “Company’s Stock, etc.”)
in accordance with the Rules for Stock Compensation Granted to Directors established by the Company. The timing of
Directors receiving the Company’s Stock, etc. is at their retirement from Directors in principle.
(b) Company’s Stock Remaining in Trust
The Company has recorded the Company’s stock remaining in the Trust at carrying value in the Trust (excluding the amountof ancillary expenses) as treasury stock under net assets section. The carrying value of such treasury stock was ¥562 million
and the number of such treasury stock was 266,400 shares at March 31, 2023, while the carrying value of such treasury stockwas ¥562 million ($3,713 thousand) and the number of such treasury stock was 266,400 shares at March 31, 2024.

- 18 -

4.

Additional Information(Audit remuneration)(1) Remuneration of the Auditor
Thousands of
U.S. dollars

Millions of yen
Category

The Company

2024
2023
2024
Remuneration for Remuneration Remuneration for Remuneration Remuneration for Remuneration
audit andforaudit andforaudit andforattestation
non-audit
attestation
non-audit
attestation
non-audit
services
services
services
services
services
services
¥
87
145
79
2 $
576
963

Consolidated subsidiaries

－

－

－

－

－

－

Total

87

145

79

2

576

963

Remuneration for non-audit services included preparation of comfort letters related to the issuance of corporate bonds andreports required for PE TAX filing in Thailand for the years ended March 31, 2023.
Remuneration for non-audit services mainly included financial due diligence for the years ended March 31, 2024.
(2) Remuneration of the network firms to which the Auditor belongs (KPMG LLP), excluding Remuneration of the Auditor
Thousands of
U.S. dollars

Millions of yen
Category

The Company
Consolidated subsidiaries
Total

2024
2023
2024
Remuneration for Remuneration Remuneration for Remuneration Remuneration for Remuneration
audit andforaudit andforaudit andforattestation
non-audit
attestation
non-audit
attestation
non-audit
services
services
services
services
services
services
¥
1
1 $
7
－
－
－
119
7
107
16
792
50
119

8

107

17

792

58

Remuneration for non-audit services mainly include consulting services related to international taxation for the years ended
March 31, 2024 and 2023.
(3) Remuneration for other significant audit and attestation services
TAIWAN INABATA SANGYO CO., LTD. and INABATA AMERICA CORPORATION, which are significant consolidated
subsidiaries of the Company, paid compensation to PricewaterhouseCoopers Taiwan and MAYER HOFFMAN McCANN P.C. foraudit and attestation services for the years ended March 31, 2024 and 2023

- 19 -

5.

Securities(a) The following summarizes information on securities with fair values at March 31, 2024 and 2023.
(1) Trading securities:
At March 31, 2024 and 2023, there were no trading securities with fair market values.
(2) Available-for-sale securities at March 31, 2024 and 2023:
Securities with book values (fair values) exceeding acquisition costs:
Thousands of
U.S. dollars

Millions of yen
2024

2023

2024

Equity securities:
Acquisition costs¥

Book values

4,836

¥

4,227

21,441

Differences$

20,52931,946
141,611¥

16,604¥16,301$

109,665

¥

－

¥

－

$

－

Bonds:
Acquisition costs
Book values－

Differences

－

－

¥

－

¥

－

$

－

Acquisition costs
Book values

¥

102
114

¥

－
－

$

675
758

Differences

¥

12

¥

－

$

82

Others:Securities with book values (fair values) not exceeding acquisition costs:
Thousands of
U.S. dollars

Millions of yen
2024

2023

2024

Equity securities:
Acquisition costs

¥

640

¥
¥

Book values

4,231

(153)

$

(1,418)

20

$

132

378

(214)

¥

20

¥

425

Differences

$

¥

225

2,813

Bonds:
Acquisition costs
Book values

19

Differences

19

131

¥

(0)

¥

(0)

$

(0)

¥

－

¥

－

$

－

Others:Acquisition costs
Book values－

Differences

¥

－

－
¥

－

－
$

－

Unlisted equity securities in amount of ¥8,121 million ($53,637 thousand) and ¥5,268 million at March 31, 2024 and 2023,
respectively, are excluded from available-for-sale securities in the above table as they are stocks with no market price and the
difficulty in estimating future cash flows.
(b) The following table summarizes information on available-for-sale securities sold in the years ended March 31, 2024 and 2023:
Thousands of
U.S. dollars

Millions of yen
2024
Total sales of available-for-sale securities:

¥

2023

4,213

¥

2024

11,946$27,825

Amount of related gains

3,401

8,661

22,467

Amount of related losses

2

35

17

- 20 -

(c) The loss on valuation of investment securities at March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Loss on valuation of investment securities

¥

2023
69

¥

2024
250

$

457

The Companies recognize impairment loss, at the end of the period, when the fair value of marketable and investment securities
is reduced to less than 50% of the acquisition cost. A loss may also be recognized when the fair market value declines less than
50% but more than 30%, if necessary, considering the possibility of market value recovery and other factors.

- 21 -

6.

Derivatives(a) Derivative transactions for which hedge accounting is not applied(1) Currency related
Millions of yen
March 31, 2024
Classification

Non-market
transaction

Type of derivative transaction

Contracted
amountContracted
amountover 1 year

12

－

(0)

(0)

509

－

(24)

(24)

Forward foreign exchange contracts:
Selling:
U.S. dollars
Buying:Japanese yen
Total

¥

522

¥

－

Recognized
gains(losses)

Fair
Value

¥

(24)

¥

(24)

Millions of yen
March 31, 2023
Classification
Non-market
transaction

Type of derivative transaction

Contracted
amountContracted
amountover 1 year

405－

Recognized
gains(losses)

Fair
Value

Forward foreign exchange contracts:
Buying:Japanese yen
Total

¥

405

¥

－

(4)
¥

(4)

(4)
¥

(4)

Thousands of U.S. dollars
March 31, 2024
Classification

Type of derivative transaction

Contracted
amountContracted
amountover 1 year

85－

Recognized
gains(losses)

Fair
Value

Forward foreign exchange contracts:
Non-market
transaction

Selling:
U.S. dollars
Buying:Japanese yen
Total

3,364
$

3,450

There were no interest rate related derivative transactions at March 31, 2024 and 2023.
(3) Stock related
There were no stock related derivative transactions at March 31, 2024 and 2023.

－

(0)

(162)

－
$

(2) Interest rate related- 22 -

(0)

$

(162)

(162)
$

(162)

(b) Derivative transactions for which hedge accounting is applied(1) Currency related
Millions of yen
March 31, 2024
Method for hedge
accounting

Type of derivative transaction

Major
hedged item

Contracted
amountover 1 year

Contracted
amountFair
value

Forward foreign exchange contracts:
Selling:

Deferral hedge
accounting (*1)

U.S. dollars
Euro
China yuan
Thai baht

Accounts
receivable¥- trade

1,528
168
363
51

¥

－

(35)
(5)
(11)
0

6,322

2,121

917

477
165

－
－
－

5
8

－
－
－

¥

Buying:U.S. dollars
Euro
China yuan

Accounts
payable- tradeThai baht

616

6Forward foreign exchange contracts:
Selling:
U.S. dollars
G.B. poundEuro
Allocation method for

China yuan

forward foreignexchange contracts,
etc.

Thai baht
New Zealand dollars
Buying:U.S. dollars
G.B. poundEuro
China yuan¥
Accounts
receivable- trade

3,773
146
231

¥

－

581

－
－
－

68
63
2,934
42
200
44

Accounts
payable- tradeThai baht¥- 23 -

17,840

(*1)

－
－
－
－
－

61

Total

－
－

¥

2,121

¥

885

Millions of yen
March 31, 2023
Method for hedge
accounting

Type of derivative transaction

Major
hedged item

Contracted
amountover 1 year

Contracted
amountFair
value

Forward foreign exchange contracts:
Selling:
U.S. dollars
Euro
Deferral hedge
accounting

China yuan
Thai baht¥
Accounts
receivable- tradeChina yuan
Thai baht

¥

165
52

New Zealand dollars
Buying:U.S. dollars
Euro

2,303
441

Accounts
payable- trade

－
－
－

¥

(2)
(7)

－

(1)
(0)

0

－

－

7,403
279

2,610
－

580
7

64

－

(0)

822

－

6

Forward foreign exchange contracts:
Selling:

Allocation method forforward foreignexchange contracts,
etc.

U.S. dollars
G.B. poundEuro
China yuan¥
Accounts
receivable- trade

4,774
72
697
150

¥

－
－
－
－

Thai baht

54－

Buying:U.S. dollars
G.B. pound

Accounts

2,244
57

－
－

Euro
China yuan

payable- trade

105
19

－
－

Thai baht

124

Total

¥

- 24 -

19,834

(*1)

－
¥

2,610

¥

581

Thousands of U.S. dollars
March 31, 2024
Method for hedge
accounting

Type of derivative transaction

Major
hedged item

Contracted
amountover 1 year

Contracted
amountFair
value

Forward foreign exchange contracts:
Selling:
U.S. dollars
Euro
Deferral hedge
accounting

China yuan
Thai baht

Accounts
receivable

Euro
China yuan
Thai baht

$

2,399
341

- tradeAccounts
payable- tradeForward foreign exchange contracts:
Selling:
U.S. dollars
G.B. poundEuro
forward foreignexchange contracts,
etc.

10,095
1,111

－
－
－

$

(237)
(33)

－

(73)
0

41,757

14,010

6,062

3,152

－

33

1,090
4,072

－

57
40

Buying:U.S. dollars

Allocation method for$

China yuan
Thai baht
New Zealand dollars$
Accounts
receivable- trade24,923

－

$

－

969
1,529

－
－

3,839
449
420

－
－
－

(*1)

Buying:U.S. dollars
G.B. poundEuro

Accounts
payable19,379278
1,323

China yuan

- trade

291

－
－
－
－

405

－

Thai baht
Total$

117,832$

14,010$5,851(*1) Foreign exchange forward contracts are accounted for as hedged items together with accounts receivable and accounts payable,
which are settled in a short period of time, and their fair values are close to their book values, so notes are omitted.

- 25 -

(2) Interest rate related
Millions of yen
March 31, 2024
Method for hedge
accounting

Type of derivative transaction

Major
hedged item

Contracted
amountContracted
amountover 1 year

Long-termloans payable

1,000

－

(*1)

1,000

－

－

Fair
value

Interest rate swaps:
Special method(Pay fixed rate, receive floating rate)
Total

¥

Millions of yen
March 31, 2023
Method for hedge
accounting

Type of derivative transaction

Major
hedged item

Contracted
amountContracted
amountover 1 year

Long-termloans payable

1,000

1,000

(*1)

1,000

1,000

－

Fair
value

Interest rate swaps:
Special method(Pay fixed rate, receive floating rate)
Total

¥

Thousands of U.S. dollars
March 31, 2024
Method for hedge
accounting

Type of derivative transaction

Major
hedged item

Contracted
amountContracted
amountover 1 year

Long-termloans payable

6,604

－

(*1)

6,604

－

－

Fair
value

Interest rate swaps:
Special method(Pay fixed rate, receive floating rate)
Total

$

(*1) Since interest rate swaps are accounted for by the special method (refer to Note 2(e)), the fair value of long-term loans payable
and long-term loans payable due within one year are included in that of the long-term loans payable and short-term loans payable
disclosed in Note 17, “Financial instruments” respectively.

- 26 -

7.

Income taxes
The Company and its domestic subsidiaries are subject to a number of taxes based on income, which, in the aggregate, indicate astatutory income tax rate in Japan of approximately 30.6% and 30.6% for the years ended March 31, 2024 and 2023, respectively.

(a) The following table summarizes the significant differences between the statutory tax rate and the effective tax rate for financial
statement purposes:
2024

2023

Statutory tax rate

30.6%

Share of (profit) loss of entities accounted for using equity method

(0.3)

1.2

Expenses not deductible for income tax purposes
Dividends and other income deductible for income tax purposes
Net adjustment resulting from elimination of dividend income

0.7
(7.2)
6.7

1.3
(3.9)
3.7

Unrealized tax benefits, such as those net operating losses carried forward for consolidated
subsidiaries

0.1

(0.2)

Unrealized tax benefits related to allowance for doubtful accounts

0.0

(0.1)

Gain on bargain purchase
Loss on step acquisitions
Expenses related to stock acquisition
Different tax rates applied at foreign subsidiaries

(3.7)
0.2
0.6
(3.3)

－
－
－
(3.9)

Income taxes for prior periods
Foreign withholding tax

0.6
1.4

0.0
0.4

Other, net

(0.2)

(0.1)

Effective tax rate

26.2%

29.0%

30.6%

(b) Significant components of the Companies’ deferred tax assets and liabilities at March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024

2023

2024

Deferred tax assets:
Allowance for doubtful accounts

¥

448

¥

438

$

2,962

Loss carryforwards

3,096

2,718

20,452

Net defined benefit liability
Directors’ retirement benefits
Unrealized profit on inventories
Unrealized profit on property, plant and equipment

1,122
106
380
240

971
87
405
277

7,414
701
2,513
1,587

Depreciation
Write-down of golf club memberships
Write-down of investment securities

288
12
331

307
11
360

1,906
81
2,189

Write-down of inventories
Provision for bonuses

164
461

115
389

1,088
3,046

Enterprise taxes payable
Other

137
1,186

155
1,070

906
7,838

Total deferred tax assets

7,977

7,309

52,689Valuation allowance(4,235)(3,843)(27,970)

Net deferred tax assets

3,742

3,465

24,718Deferred tax liabilities:
(661)

(661)

(4,369)Net defined benefit asset

Gain on securities contributed to employee retirement benefit trust(2,256)(1,967)(14,901)

Valuation difference on available-for-sale securities
Other(4,803)(660)(4,378)(432)(31,723)(4,364)(8,382)(7,439)(55,359)

Total deferred tax liabilities
Net deferred tax liabilities¥- 27 -(4,639)¥(3,974)$(30,641)

8.

Pledged assets
At March 31, 2024 and 2023, the following assets were pledged as security for trading transactions:Thousands of
U.S. dollars

Millions of yen
2024
Investment securities¥

Treasury shares
Land

3,681
44
19

Cash and deposits
Buildings and structures

¥

¥

3,777

2024

4,634

18
14

Total
9.

2023

¥

－
－

24,313
295
127

－
－

118
93

4,634

$

$

24,949Research and development expenses
Research and development expenses included in selling, general and administrative expenses for the years ended March 31, 2024
and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Research and development expenses

¥

2023
53

¥

2024
55

$

353

10. Short-term loans payable and long-term loans payable
Short-term loans payable at March 31, 2024 and 2023 consisted of bank loans bearing interest at average annual rates of 2.09%
and 3.61%, respectively. Long-term loans payable due within one year at March 31, 2024 and 2023 consisted of bank loans
bearing interest at average annual rates of 0.92% and 0.87%, respectively.
(a) Long-term loans payable at March 31, 2024 and 2023 consisted of the follows:
Thousands of
U.S. dollars

Millions of yen
2024
Unsecured loans from banks and insurance companies

2024

14,881(2,492)¥

10,234(2,439)$98,289(16,462)¥

12,389

¥

7,795

$

81,827Less amounts due within one year
Total

2023

¥

(b) The aggregate annual maturities of long-term loans payable at March 31, 2024 were as follows:

2025

Millions of yen

Thousands of
U.S. dollars

2024

2024

¥

2026

1,038
2,538

2027
2028
2029 and thereafter
Total

¥

$

6,857
16,764

38

252

2,639
6,134

17,43440,517

12,389$81,827(c) In order to achieve more efficient and flexible financing, the Company has concluded multi currency lines of credit agreementswith four banks. The status of these lines of credit at March 31, 2024 and 2023 were as follows:
Thousands ofMillions of yen
U.S. dollars
2024
Multi currency lines of credit¥

Credit utilized

2023

30,282－- 28 -¥

2024

26,706－$200,000－

11. Retirement and pension plans(a) Defined benefit pension plans(1) The change in the retirement benefit obligation for the years ended March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Balance at the beginning of the year

¥

2023

8,492

¥

2024

9,675

$

56,089Service cost
Interest cost

584
118

369
65

3,862
781

Actuarial differences
Prior service cost(47)

(1,129)
(211)

(312)

Retirement benefits paid

－
(346)

Increase due to a change in the scope of consolidation
Others479
106

Balance at the end of the year

¥

9,387

¥

(349)

－
(2,290)

－
73

3,169
703

8,492

$

62,002(2) The change in plan assets for the years ended March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Balance at the beginning of the year¥

Expected return on plan assets

2023

14,993
389

¥

2024

14,441356$

99,0282,573

Actuarial differences(82)(1,220)(543)

Contributions by the Company and its consolidated subsidiaries
Retirement benefits paid
Increase due to a change in the scope of consolidation

959
(215)
340

1,674
(260)

6,335
(1,422)
2,248

Others－2

5

Balance at the end of the year¥

16,391¥

14,993

38$

108,258(3) The following table sets forth the funded status of the plans and the amounts recognized in the Company’s and its consolidated
subsidiaries’ defined benefit plans:
Thousands of
U.S. dollars

Millions of yen
2024
Funded projected benefit obligations¥

Plan assets
Subtotal

7,369(16,391)

2023
¥

6,907
(14,993)2024$

48,672(108,258)

Unfunded projected benefit obligations(9,021)
2,018(8,086)
1,585(59,585)
13,329Net amount of liability and asset in consolidated balance sheet(7,003)(6,501)(46,255)

Liabilities (net defined benefit liability)
Assets (net defined benefit asset)

2,343(9,346)

1,713(8,215)

15,475(61,731)

Net amount of liability and asset in consolidated balance sheet- 29 -¥(7,003)¥(6,501)$(46,255)

(4) The components of retirement benefit expense for the years ended March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Service cost

¥

2023

Interest cost

584
118

Expected return on plan assets
Amortization of actuarial differences
Amortization of prior service cost

(389)
(95)
(15)

Retirement benefit expense

¥

202

¥

2024
369
65

$

(356)
(89)
(11)
¥

(22)

3,862
781
(2,573)
(630)
(99)

$

1,339

Actuarial differences and prior service cost included in other comprehensive income for the years ended March 31, 2024 and2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Prior service cost

2024

(15)
(130)

¥

200
(179)

$

(99)
(860)

¥

(145)

¥

21

$

(960)

Actuarial differences
Total

2023

¥

(5) Unrecognized actuarial differences and unrecognized prior service cost included in accumulated other comprehensive income atMarch 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Unrecognized prior service cost¥

Unrecognized actuarial differences

2023
(185)

¥

(422)

Total

¥

(607)

2024
(200)

$

(552)
¥

(753)

(1,224)(2,791)$(4,015)(6) The allocation of plan assets by major category as a percentage of total plan assets at the fair value at March 31, 2024 and 2023
were as follows:
2024

2023

Bonds

48.0%

42.4%

Equity securities
Cash and time deposits

33.0
6.1

33.1
11.7

Alternative

12.5

12.5

Others
Total

0.4

0.3

100.0%

100.0%

Notes: 1. The expected long-term rate of return on plan assets is determined with consideration for both the present and future portfolio
allocation and the expected long-term rate of return on multiple plan assets at present and in the future.
2. Total plan assets include securities contributed to the retirement benefit trust (17.1% at March 31, 2024 and 21.6% at March
31, 2023).
(7) The assumptions used in accounting for the above plans were as follows:
2024

2023

Discount rate (mainly)

1.0%

1.0%

Expected long-term rate of return on plan assets (mainly)

3.0%

3.0%

- 30 -

(b) Defined contribution pension plans
The required contribution to the defined contribution pension plans for the years ended March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Contribution to defined contribution pension plans by the Company and its¥
consolidated subsidiaries

2023
150

¥

2024
102

$

993

12. Cash and cash equivalents
The reconciliation of cash and time deposits in the consolidated balance sheets and cash and cash equivalents in the consolidated
statements of cash flows at March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Cash and time deposits¥

Time deposits with maturities of more three months
Marketable Securities (MRF and MMF)

51,3102023¥(5,074)64

Cash and cash equivalents¥

46,3012024

36,353$(6,563)(33,513)429－¥

29,790338,885$

305,801

Major breakdown of assets and liabilities of the companies that were newly consolidated in the current consolidated fiscal year
due to the acquisition of its shares
Breakdown of assets and liabilities of Maruishi Chemical Trading Co., Ltd. and Maruishi Techno Co., Ltd. at the time of its
consolidation due to the acquisition of their shares and the relationship between the acquisition cost and the expenditure for theacquisition of the shares (net amounts) are as follows.
Thousands of
U.S. dollars

Millions of yen
2024
Current assets

¥

2024

Non-current assets
Current liabilities

16,7356,700(13,058)

Non-current liabilities(1,543)(10,195)

Gain on bargain purchase
Minority interests(3,047)(2,563)(20,128)(16,930)

Acquisition cost of the shares
Equity method recognized at acquisition of control
Loss (gain) on step acquisitions
Cash and cash equivalents
Difference: purchase of shares¥$

110,529
44,251(86,244)

3,222

21,281(2,429)225(16,045)
1,490

(552)

(3,649)

466

$

3,077

The breakdown of assets and liabilities of the other company that was newly consolidated in the current consolidated fiscal year
due to the acquisition of shares is omitted due to its immateriality.
In addition, expenses of ¥386 million ($2,549 thousand) related to the acquisition of shares of Daigo Tsusho Co., Ltd., which
was newly consolidated in the current consolidated fiscal year, are included in the amount of “Payments for acquisition of sharesof subsidiaries resulting in a change in the scope of consolidation ” in the consolidated statements of cash flows.

- 31 -

13. Other comprehensive income
Amounts reclassified to net income (loss) in the current period that were recognized in other comprehensive income in thecurrent or previous periods and the tax effects for each component of other comprehensive income for the years ended March 31,
2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024

2023

2024

Valuation difference on available-for-sale securities:
Increase (decrease) during the year
Reclassification adjustments¥

1,517 ¥
(3,350)(5,236) $(8,661)

10,019(22,126)

Tax effect(1,833)(331)(13,898)
4,025(12,106)(2,189)Subtotal, net of tax effect(2,164)(9,873)(14,295)

Increase (decrease) during the year
Reclassification adjustments

544
(255)

214
(234)

3,595
(1,685)

Amount before tax effectTax effect

289
(93)

(19)
6

1,910
(616)

Subtotal, net of tax effect

195

(12)

1,293

11,313

5,166

74,718Amount before tax effect

Deferred gains (losses) on hedges:

Foreign currency translation adjustment:
Increase (decrease) during the year
Reclassification adjustments
Amount before tax effectTax effect

－

184

－

11,313

5,351

74,718－－－

11,313

5,351

74,718

(77)
(67)

161
(140)

(514)
(446)

Tax effect

(145)
42

21
(6)

(960)
278

Subtotal, net of tax effect

(103)

14

(681)

Increase (decrease) during the year
Reclassification adjustments

88

102

581

－

－

－

Subtotal

88

102

581

(4,417) $61,616

Subtotal, net of tax effectRemeasurements of defined benefit plans, net of tax:
Increase (decrease) during the year
Reclassification adjustments
Amount before tax effect

Share of other comprehensive income of entities accounted
for using equity method:

Total other comprehensive income¥- 32 -

9,329¥

14. Business Combination
Business combination through acquisition(1) Outline of the business combination(i) Name and main business of the acquiree
Name of the acquiree
Maruishi Chemical Trading Co., Ltd.
Business description
Sales, import and export of industrial chemicals, synthetic resins, synthetic rubbers, rubber chemicals, paints, dyes, water treatment
chemicals, other chemical products and machinery and equipment, and design and execution of construction, painting, waterproofing
and machinery installation work(ii) Main reason to the business combination
The Company aims to achieve its long-term vision "IK Vision 2030," the ideal vision by around 2030.
As a result, the Company is promoting "New Challenge 2023," a 3-year medium-term management plan ended on March 31,
2024.The Company is continuously upgrading the trading company function, which is the foundation of the Company.
At the same time, the Company is investing in business fields and domains where the Group's strengths can be leveraged.
By acquiring the shares of the company and making it a subsidiary, the Company believes that it will contribute to further
strengthening the trading company function by incorporating personnel with advanced expertise, mainly in the chemicals field, into
the Group. The Company's information gathering capabilities and excellent customer base, which it has cultivated over its more than
100 year history, will contribute to further strengthening of trading company function.
(iii) Date of business combination
April 1, 2023(iv) Legal form of business combination
Share acquisition(v) Name of the acquiree after the business combination
There is no change(vi) Ratio of voting rights acquired
Immediately before acquisition: 47.03%
Additional acquisition: 23.95%
After acquisition: 70.98%(vii) Main grounds for determining the acquirer
The Company acquired the shares in exchange for cash
(2) Period for which the operations of the acquiree are included in the consolidated financial statements
From April 1, 2023 to March 31, 2024
(3) Breakdown of acquisition cost and type of consideration for the acquiree
Market value of the acquiree's shares held immediately prior to the business combination as of the business combination date: ¥2,203
million ($14,554 thousand)Consideration for the acquisition of additional common shares acquired
On the date of the business combination (cash): ¥1,018 million ($6,727 thousand)Acquisition cost: ¥3,222 million ($21,281 thousand)(4) Description and amounts of major acquisition related expenses
Advisory fees and commissions, etc.: ¥52 million ($344 thousand)(5) Description and amounts of Loss (gain) on step acquisitions
Loss (gain) on step acquisitions: ¥225 million ($1,490 thousand)- 33 -

(6) Amount of Gain on bargain purchase, reason(i) Amount of Gain on bargain purchase¥3,047 million ($20,128 thousand)(ii) Reason
As the fair value of the net assets of the acquired company at the time of the business combination exceeded the acquisition cost, thedifference is recognized as Gain on bargain purchase.
(7) Amounts of the assets acquired and the liabilities assumed on the business combination date and their major details
Thousands of
U.S. dollars

Millions of yen
2024
Current assets

¥

2024

Non-current assets

16,735
6,700

Total assets

23,435

154,781

Current liabilities

13,05886,244Non-current liabilities

1,543

10,195

Total liabilities¥

14,601$$

110,529
44,251

96,439(8) Estimated impact on the consolidated statement of income for the year ended March 31, 2024 assuming the business combination
had been completed at the beginning of the year ended March 31, 2024 and its method of calculation.
There was no impact because the acquisition date was the beginning of the current fiscal year.

- 34 -

15. Revenue recognition(a) Breakdown of revenue from contracts with customers
Millions of yen
Year ended March 31, 2024
IT &Electronics

Chemicals

81,171
19,45486,582
13,54540,637244

135,519
147,798

343,911
181,042

Northeast Asia
The Americas

110,201
15,164

5,186
5,130

2,128
8,252

57,874
17,075

175,391
45,623－－－

Europe13,122

2,212

2,334

2,202

19,871－

19,871

Revenue fromContracts with
Customers (*2)

239,114112,657

53,597360,471765,840－

765,840

－

－

－

－

－

181

181

239,114112,657

53,597360,471765,840

181

766,022

Others (*1)

Consolidated

Japan
Southeast Asia¥

Other income (loss)
Sales to externalcustomers¥

Life
Industry

Plastics

Total

Others (*1)

Consolidated－

343,911
181,042
175,391
45,623

Millions of yen
Year ended March 31, 2023
IT &Electronics

Chemicals

86,12819,144

61,474
11,931

29,840309

119,305
164,558

296,749
195,944－－296,749
195,944

Northeast Asia
The Americas
Europe111,650
11,462
9,616

5,854
5,859
4,700

1,179
10,0692,263

62,333
14,3783,378

181,018
41,77019,959－－－181,018
41,77019,959

Revenue fromContracts with

238,00389,82043,662363,955

735,441－

735,441

－

－

－

－

－

178

178

238,00389,82043,662363,955

735,441

178

735,620

Others (*1)

Consolidated

Japan
Southeast Asia¥

Life
Industry

Plastics

Total

Customers (*2)
Other income (loss)
Sales to externalcustomers¥

Thousands of U.S. dollars
Year ended March 31, 2024

Japan

ChemicalsLife
Industry

Plastics

Total

536,106

571,842

268,390895,050

2,271,390－

2,271,390

Southeast Asia
Northeast Asia

128,488727,832

89,46334,254

1,614
14,060976,146
382,238

1,195,713
1,158,385－－

1,195,713
1,158,385

The Americas

100,156

33,88854,505

112,776

301,326－

301,326

EuropeRevenue fromContracts with
Customers (*2)

86,665

14,60915,41914,549131,243－

131,243

1,579,249

744,058

353,989

2,380,761

5,058,058－

5,058,058

－

－

－

－

－

1,200

1,200

$ 1,579,249

744,058

353,989

2,380,761

5,058,058

1,200

5,059,259

Other income (loss)
Sales to externalcustomers$

IT &Electronics(*1) "Others" include businesses, such as real estate rental services, not included in reportable segments.
(*2) “Revenue from Contracts with Customers” is classified into countries or regions based on the location of the distributor.

- 35 -

(b) The basic information for understanding revenue from contracts with customer
The basic information for understanding revenue from contracts with customer is as described in Note 2. (n), “Recognition of revenues
and expenses.”(c) Information regarding the relationship between satisfaction of performance obligations under contracts with customers and cash
flows arising from such contracts and the amount and timing of revenue expected to be recognized from contracts with customers
existing at the end of the current consolidated fiscal year in the following consolidated fiscal year
(1) Contract assets and contract liabilities

Accounts receivables arising from contracts with customers(Beginning balance)
Accounts receivables arising from contracts with customers(Ending balance)

Millions of yen

Millions of yen

Thousands of
U.S. dollars

2024

2023

2024

¥

Contract liabilities (Beginning balance)
Contract liabilities (Ending balance)

176,887¥

184,698$

1,168,268

206,463

176,887

1,363,603

2,798
3,455

3,818
2,798

18,48522,824Contract liabilities are mainly the consideration received from customers before delivery of goods and are included in "Other
current liabilities" under "Current liabilities" in the consolidated balance sheets. The amount of revenue recognized which was
included in contract liabilities at the beginning of the consolidated fiscal year was ¥2,323 million ($15,348 thousand) and ¥3,807
million at March 31,2024, and 2023, respectively. .
(2) Transaction price allocated to remaining performance obligations
There are no significant transactions in the Companies with an expected term of more than one year. In addition, there is nomaterial amount of consideration arising from contracts with customers that is not included in the transaction price.

- 36 -

16. Segment information(a) General information about reportable segments
Inabata Group’s reportable segments represent the group’s component divisions for which separate financial information isavailable. This information is regularly evaluated by the Board of Directors in deciding how to allocate management resources andin assessing performance. Inabata Group is primarily engaged in the trading of merchandise, the manufacture and sale of various
products and the provision of services in Japan and abroad and operates its business in line with a comprehensive strategy
regarding merchandise, products and services for domestic and international markets. For effective business management
purposes, Inabata Group has segmented its corporate sales and marketing functions into four divisions (reportable segments) basedon merchandise, products and target markets/industries, namely: IT & Electronics, Chemicals, Life Industry and Plastics.
The major merchandise, products and services covered by each reportable segment are as follows:
IT & Electronics:

Semiconductor manufacturing equipment
Electronic materials, including parts
Dyes for printing
Raw materials for copying

Chemicals:

Motor parts and raw materials
Raw materials for plastic resin
Dyestuffs
LumberComposite materials
Wooden building materials

Life Industry:

Residential housing equipment
Pharmaceutical and agricultural chemicals and bulk raw materials
Raw materials for insecticides
Raw materials for toiletries
Raw and processed agricultural products
Raw and processed marine products

Plastics:

General purpose plastics
Engineering plastics(b) Basis of measurement for reportable segment profit and loss, segment assets, segment liabilities and other material items
Accounting methods applied to the reportable business segments are generally the same as those described in Note 2, “Summaryof significant accounting policies.” Segment income derives from operating income. Inter-segment profits and transfers are basedon prevailing market prices.

- 37 -

(c) Information about reportable segment profit and loss, segment assets, segment liabilities and other material items for the years
ended March 31, 2024 and 2023 were as follows:
Millions of yen
Year ended March 31, 2024

Net sales:
Outside customers ¥Intersegment
Total

IT &
Electronics

Life
Industry

Chemicals

239,114112,657

53,597360,471

181

－

－

－

－

－

239,114112,657

53,597360,471

Plastics

Elimination& Corporate

OthersConsolidated－－

766,022181－－

766,022

Segment income

¥

6,904

2,788

1,480

9,879

137

－

21,190Total assets¥

108,71462,22433,182

184,773350

38,075427,320

Depreciation andamortization

¥

590

451

302

2,400

－

－

3,743

－

－

－

1

－

－

1

1,141

－

－

1,201

－

－

2,342

142

244

475

1,697

－

1,900

4,460

Elimination& Corporate

Consolidated

Amortization of
goodwill
Investments inequity method
affiliates
Increases intangible andintangible assets¥

Millions of yen
Year ended March 31, 2023

Net sales:
Outside customers ¥Intersegment
Total

IT &
Electronics

Life
Industry

Chemicals

238,00389,82043,662363,955

178

－

－

－

－

－
－

735,620－

Plastics

Others－Segment income¥

238,003
5,269

89,8202,770

43,662
1,936

363,955
10,205

178
131

－
－

735,620
20,314

Total assets¥

103,289

46,97424,935

165,740

348

39,155

380,443

¥

642

380

254

2,254

－

－

3,532

－

－

－

－

－

－

－

1,003

3,370

－

1,056

－

－

5,430

69

120

188

1,528

－

1,044

2,950

Depreciation andamortization
Amortization of
goodwill
Investments inequity method
subsidiary andaffiliates
Increases intangible andintangible assets¥- 38 -

Thousands of U.S. dollars
Year ended March 31, 2024
IT &Electronics

ChemicalsLife
Industry

Plastics

OthersElimination& Corporate

Consolidated

Net sales:
Outside customers $ 1,579,249
Intersegment－

744,058

353,989

2,380,761

－

－

－

Total

1,579,249

744,058

353,989

2,380,761

1,200

5,059,259

－

－
－

1,200

－

5,059,259－

Segment income$

45,602

18,416

9,779

65,250907－

139,956

Total assets$

718,011

410,965

219,158

1,220,352

2,315

251,470

2,822,274

Depreciation andamortization

$

3,899

2,979

1,994

15,851－－

24,725

－

－

－

8

－

－

8

7,536

－

－

7,935

－

－

15,471

941

1,612

3,140

11,213

Amortization of
goodwill
Investments inequity method
affiliates
Increases intangible andintangible assets$

12,552
29,459－Notes: 1. “Others” includes business, such as real estate rental services, not included in reportable segments.
2. Corporate assets included in the Elimination & Corporate column in the amount of ¥38,075 million ($251,470 thousand) and¥39,155 million for the years ended March 31, 2024 and 2023, respectively, are mainly surplus funds (cash and deposits),
long-term investment funds (investment securities, etc.) and assets pertaining to administrative functions of the Company.
3. Increases in tangible and intangible assets stated in the Elimination & Corporate column in the amount of ¥1,900 million($12,552 thousand) and ¥1,044 million for the years ended March 31, 2024 and 2023, respectively, are attributable to theCompany’s administrative functions.
4. Segment income has been adjusted to be consistent with operating income in the consolidated financial statements.

- 39 -

[Related information](a) Geographic information(1) Net sales
Millions of yen
Year ended March 31, 2024
Japan¥

Southeast Asia

307,143¥

189,770

Northeast Asia¥

The Americas

210,531¥

39,635

Europe¥Consolidated

18,941¥

766,022

Millions of yen
Year ended March 31, 2023
Japan¥

Southeast Asia

262,966¥

201,375

Northeast Asia¥

The Americas

213,640¥

38,881

Europe¥Consolidated

18,755¥735,620

Thousands of U.S. dollars
Year ended March 31, 2024
Japan$

Southeast Asia

2,028,554$

1,253,352

Northeast Asia$

The Americas

1,390,474$

261,777

Europe$Consolidated

125,101$

5,059,259

Note: Sales amounts are based on customer locations and divided into countries and regions.
(2) Property, plant and equipment
Millions of yen
Year ended March 31, 2024
Japan¥

Southeast Asia
6,537

¥

7,522

Northeast Asia¥

The Americas

1,521

¥

2,011

Europe¥Consolidated

1,032

¥

18,625

Millions of yen
Year ended March 31, 2023
Japan
¥

5,327

Southeast Asia
¥

7,033

Northeast Asia
¥

1,520

The Americas
¥

1,814

Europe¥Consolidated
910¥

16,606

Thousands of U.S. dollars
Year ended March 31, 2024
Japan$

43,175Southeast Asia$

49,684

Northeast Asia$

10,050The Americas$

13,283

Europe$(b) Information on the amount of impairment loss on non-current assets by reportable segment
There was no impairment loss on non-current assets for the year ended March 31, 2024 and 2023.

- 40 -

6,817

Consolidated$

123,012(c) Information on the amount of amortization and the unamortized balance of goodwill by reportable segment
There was no amount of amortization and the unamortized balance of goodwill for the year ended March 31, 2023.
Millions of yen
Year ended March 31, 2024
IT &Electronics
Amortization
Unamortizedbalance¥－

Life
Industry

Chemicals
¥

－

－

¥

－

－

Plastics¥

Others
1

¥

－

18

－

Elimination& Corporate

Consolidated

¥

¥

－

1

－

18

Elimination& Corporate

Consolidated

$

$

－

Thousands of U.S. dollars
Year ended March 31, 2024
IT &Electronics
Amortization
Unamortizedbalance

$

－
－

Life
Industry

Chemicals
$

－
－

$

－
－

- 41 -

Plastics$

Others
8

123

$

－
－

－
－

8
123

17. Financial Instruments(Fair values of financial instruments)
Book values and fair values of the financial instruments on the consolidated balance sheet at March 31, 2024 and 2023 were as
follows:
Millions of yen
March 31, 2024
Book values

Fair values

Differences

Securities and investment securities (*4)
Available-for-sale securities
Bonds
Long-term loans receivable

21,98219
2,262

Allowance for doubtful accounts (*5)

21,982
19

－
－

1,988

(29)

(243)
2,018

Total Assets¥

Long-term loans payable (*3)

24,020¥14,881
7,500

Bonds payable
Total Liabilities¥

23,990¥14,876
7,459

22,381

¥

(24)

¥

(29)
5
41

22,335

¥

46

(24)

¥

－

Derivative transactions (*6)
Derivative transactions for which hedge accounting is not applied¥

Derivative transactions for which hedge accounting is applied
Total Derivative Transactions

885
¥

861

885
¥

861

－
¥

－

Millions of yen
March 31, 2023
Book values

Fair values

Differences

Securities and investment securities (*4)
Available-for-sale securities
Bonds
Long-term loans receivable
Allowance for doubtful accounts (*5)

20,75420,754

19

19

－
－

1,157

56

1,323
(222)
1,100

Total Assets¥

21,874¥

21,931¥

56

Long-term loans payable (*3)

10,234

10,21915

Bonds payable

7,500

7,522

(22)

Total Liabilities¥

17,734¥

17,741

¥

(6)

¥

(4)
581

¥

(4)
581

¥

－
－

¥

577

¥

577

¥

－

Derivative transactions (*6)
Derivative transactions for which hedge accounting is not applied
Derivative transactions for which hedge accounting is applied
Total Derivative Transactions- 42 -

Thousands of U.S. dollars
March 31, 2024
Book values

Fair values

Differences

Securities and investment securities (*4)
Available-for-sale securities
Bonds

145,182131

Long-term loans receivable
Allowance for doubtful accounts (*5)

14,940(1,608)13,332

Total Assets$

Long-term loans payable (*3)

158,646$

Total Liabilities$－－

13,134(197)

158,448

98,28949,534

Bonds payable

145,182
131

$

(197)

98,25549,262

147,823

$

(162)

$

33
271

147,517

$

305

(162)

$

－

Derivative transactions (*6)
Derivative transactions for which hedge accounting is not applied$

Derivative transactions for which hedge accounting is applied
Total Derivative Transactions

5,851
$

5,688

5,851
$

5,688

－
$

－

(*1) "Cash and time deposits," "Notes receivable - trade," "Electronically recorded monetary claims - operating," "Accounts receivable- trade," "Notes and accounts payable - trade" and "Short-term loans payable" are omitted because cash and time deposits, notes
receivable - trade, electronically recorded monetary claims - operating, accounts receivable - trade, notes and accounts payable trade, and short-term loans payable are close to their book values because they are settled in a short period of time.
(*2) There are balances of Accounts receivable - trade and Notes receivable - trade with settlement periods exceeding one year, which
are omitted due to their immateriality.
(*3) Long-term loans payable include ¥2,492 million ($16,462 thousand) and ¥2,439 million of long-term loans payable within 1 year
for the years ended March 31, 2024 and 2023.
(*4) Stocks with no fair values are not included in “Securities and investment securities.” The amounts recorded on the consolidatedbalance sheet for these financial instruments at March 31, 2024 and 2023 were as follows. The following “Investments in capital”
is not subject to market value disclosure because they are investments in a partnership whose equity equivalent is recorded net on
the consolidated balance sheet.
Thousands of
U.S. dollars

Millions of yen
2024
Shares of subsidiaries and associates

¥

2023
¥

2024

Investments in capital of subsidiaries and associates

3,513
1,235

6,156
641

$

23,207
8,160

Unlisted equity securities

7,978

5,249

52,694

Investments in capital

142

19

942

(*5) The balance of “Allowance for doubtful accounts” is deducted individually from the balances of “Long-term loans receivable.”(*6) Net receivables and payables generated from derivative transactions are shown above. Items that represent net payables are shownin parentheses.

- 43 -

(a) Financial instruments with maturities at March 31, 2024 and 2023 were as follows:
Millions of yen
March 31, 2024
Over 1 year but
within 5 years

Within 1 year
Cash and time deposits¥

Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade
Available-for-sale securities
Bonds
OthersLong-term loans receivable (*)
Total

¥

51,310
7,785

¥

－
6

Over 5 years but
within 10 years¥－－

Over 10 years¥－－

23,406－－－

175,126

14

123

－

－
－
－

19

－
－
13

－
－
239

257,629

－
1,174
¥

1,216

¥

137

¥

239

Millions of yen
March 31, 2023
Over 1 year but
within 5 years

Within 1 year
Cash and time deposits¥

Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade
Available-for-sale securities
Bonds
OthersLong-term loans receivable
Total

¥

36,353
6,693

¥

－
－

Over 5 years but
within 10 years¥－－

Over 10 years¥－－

16,553－－－

153,481

158

－

－

－
－
－

19

－
－
90

－
－
84

213,082

－
1,148
¥

1,326

¥

90

¥

84

Thousands of U.S. dollars
March 31, 2024
Over 1 year but
within 5 years

Within 1 year
Cash and time deposits$

Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade338,885
51,420$－45Over 5 years but
within 10 years$－－

Over 10 years$－－

154,588－－－

1,156,639

95

816

－

－
－

131

－
－
91

－
－
1,580

Available-for-sale securities
Bonds
OthersLong-term loans receivable (*)
Total

－
7,760

－
$

1,701,532

$

8,033

$

907

$

1,580

(*) Long-term loans receivable does not include Long-term loans receivable to Group companies with no fixed repayment period of¥834 million ($5,508 thousand) for the years ended March 31, 2024.

- 44 -

(b) Short-term loans payable and long-term loans payable with maturities at March 31, 2024 and 2023 were as follows:
Millions of yen
March 31, 2024
Over 1 year but
within 5 years

Within 1 year
Short-term loans payable¥

Long-term loans payable

40,453
2,492

Bonds payable¥¥

42,946

¥

－
6,134

7,500

－
Total

－
6,254

Over 5 years but
within 10 years¥

13,754

Over 10 years
¥

－
－

－
¥

6,134

－
¥

－

Millions of yen
March 31, 2023
Over 1 year but
within 5 years

Within 1 year
Short-term loans payable¥

47,0342,439¥

49,474Long-term loans payable
Bonds payable
Total

Over 5 years but
within 10 years

¥

－
3,622
7,500

¥

－
4,173

¥

11,122

¥

4,173

－

Over 10 years
¥

－
－

－

－
¥

－

Thousands of U.S. dollars
March 31, 2024
Over 1 year but
within 5 years

Within 1 year
Short-term loans payable$

Long-term loans payable
Bonds payable
Total

267,178$

16,462－$

283,640$

Over 5 years but
within 10 years－
41,30949,534$

90,843$－40,517

Over 10 years
$

－
－
－

$

－

－
40,517(Fair value information for financial instruments by level of inputs)
Based on the observability and the significance of the inputs used to determine fair values, fair value information for financial
instruments is presented by categorizing measurements into the following three levels:
Level 1 fair value: The fair value measured by quoted prices of identical assets or liabilities in active markets.
Level 2 fair value: The fair value measured using observable inputs other than Level 1.
Level 3 fair value: The fair values measured using unobservable inputs.
When multiple inputs of different categories are used in measuring fair value, the Company and its subsidiaries classify fairvalues into a category to which the lowest priority is assigned.
Millions of yen
March 31, 2024
Level 1
Securities and investment securities¥

Available-for-sale securities
Bonds

¥

Total

¥

¥

－
－

－
19

21,867
19

－

－

114

－

(24)

－

(24)

－

885

－

885

－
114

Derivative transactions for which hedge
accounting is not applied
Derivative transactions for which hedge
accounting is applied

Level 3¥
21,867

Investment trust
Derivative transactions

Total

Level 2

21,982¥- 45 -

861

¥

19

¥

22,863

Millions of yen
March 31, 2023
Level 1
Securities and investment securities¥

Available-for-sale securities
Bonds
Derivative transactions

accounting is applied¥

Level 3

¥

Total

¥

20,754

Derivative transactions for which hedge
accounting is not applied
Derivative transactions for which hedge
Total

Level 2¥－
19

20,754

－

－
－

－

(4)

－

(4)

－

581

－

581

20,754

¥

577

¥

19

19

¥

21,351Thousands of U.S. dollars
March 31, 2024
Level 1
Securities and investment securities$

Available-for-sale securities
Bonds

$

－
－

－
131

144,424
131

－

－

758

－

(162)

－

(162)

－

5,851

－

5,851

－
758

Derivative transactions for which hedge
accounting is applied

Total

$

144,424$

Level 3$

Investment trust
Derivative transactions
Derivative transactions for which hedge
accounting is not applied

Total

Level 2

145,182

$

5,688

$

131

$

151,002

Millions of yen
March 31, 2024
Level 1Long-term loans receivable¥

Level 2－－－Long-term loans payable
Bonds payable¥

Level 3

1,988

¥

－
14,876
7,458

－
－

Total
¥

1,988
14,876
7,458

Millions of yen
March 31, 2023
Level 1Long-term loans receivable¥

Level 2－¥

Level 3

1,157¥

Long-term loans payable－－－
10,219Bonds payable

－

－

7,522

Total
¥

1,157
10,219
7,522

Thousands of U.S. dollars
March 31, 2024
Level 1Long-term loans receivable$

Level 2Long-term loans payable－－

Bonds payable－$- 46 -

Level 3

13,134$－－
98,255－49,262

Total$

13,134
98,25549,262

(a) Valuation techniques and inputs used in measuring fair values(1) Securities and investment securities
Listed equity securities and investment trusts are measured using quoted prices. Fair values of listed equity securities andinvestment trusts are classified as Level 1 fair value because they are traded in active markets.
(2) Long-term loans receivable
Long-term loans receivable is classified as Level 2 because the fair value at fixed interest rates is the present value of future cash
flows of the receivables. The receivables are categorized into certain periods and divided into groups according to credit risk. In
calculating the fair values, the allowance for doubtful accounts, which is separately provided for in long-term loans receivable, isdeducted. For long-term loans to Group companies with no fixed repayment period, the book value is considered to approximate
the fair value based on the expected repayment period and interest rate conditions. The fair value is classified as Level 2 fair value.
(3) Long-term loans payable
Long-term loans payable is classified as Level 3 because the fair value is measured using the discounted present value method
based on the interest rates that reflect the total amount of payment obligations of principal and interests, when a similar loan is
newly borrowed. As the fair value of some long-term loans payable is subject to currency swaps and interest rate swaps, the fairvalue is calculated using the discounted present value method using future cash flows which are treated together with the currency
swaps and interest rate swaps and are based on the interest rate that would be assumed if a similar new payable was made.
(4) Bonds payable
Bonds payable are classified as Level 3 because the fair value is measured using the discounted present value method based on
the interest rates that would be assumed if similar new issues were made.
(5) Derivative Transactions
Derivative Transactions are classified as Level 2 because, the fair value is based on the prices presented by financial institutions.
The special treatment of interest rate swaps is treated as an integral part of the long-term loans payable that are hedged, and,
therefore, the fair values are included in the fair values of such long-term loans payable.
(b) Level 3 fair value information for financial instruments whose fair values are recorded on the consolidated balance sheet
Notes omitted due to lack of significance.

- 47 -

18. Shareholders’ equity
The Japanese Corporate Law (the “Law”) became effective on May 1, 2006, replacing the Japanese Commercial Code (the“Code”). The Law is generally applicable to events and transactions occurring after April 30, 2006 and for fiscal years ending
after that date.
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock.
However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the price ofthe new shares as additional paid-in capital, which is included in capital surplus.
Under the Law, in cases in which a dividend distribution of surplus is made, the smaller of an amount equal to 10% of thedividend or the excess, if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve must
be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in theaccompanying consolidated balance sheets.
Under the Law, additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Code,however, on condition that the total amount of legal earnings reserve and additional paid-in capital remained equal to or exceeded
25% of common stock, they were available for distribution by resolution of the shareholders’ meeting. Under the Law, alladditional paid-in capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings,
respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the nonconsolidated financial
statements of the Company in accordance with Japanese laws and regulations.
The change in common stock for the years ended March 31, 2024 and 2023 were as follows:
Number of sharesYear ended March 31, 2024
April 1, 2023
Common stock

Increase

57,114,127

Decrease
1,200,000－

March 31, 2024
55,914,127

1. The decrease in common stock related with the cancellation of treasury stock by resolution of the Board of Directors for the year
ended March 31, 2024.
Number of sharesYear ended March 31, 2023
April 1, 2022
Common stock

60,799,227

Increase

Decrease－

3,685,100

March 31, 2023
57,114,127

1. The decrease in common stock related with the cancellation of treasury stock by resolution of the Board of Directors for the year
ended March 31, 2023.

- 48 -

19. Treasury stock
The change in treasury stock for the years ended March 31, 2024 and 2023 were as follows:
Number of sharesYear ended March 31, 2024
April 1, 2023
Treasury stock

1,284,045

Increase

Decrease

996,4031,599,659

March 31, 2024
680,789

1. Treasury stock at the end of the current consolidated fiscal year included 266,400 shares of the Company owned by the Board
Benefit Trust (BBT) for the year ended March 31, 2024.
2.The increase in treasury stock consists of 765,000 shares from the purchase of shares by resolution of the Board of Directors,
230,400 shares due to the ownership of an equity-method affiliate, 900 shares due to the Restricted Stock (RS) and an increase of 103
shares from the purchase of shares of less than one voting unit for the year ended March 31, 2024.
3. The decrease in treasury stock consists of 1,200,000 shares from the cancellation of treasury stock by resolution of the Board of
Directors, 341,059 shares due to sale of shares of parent held by subsidiaries, 58,600 shares from the payment of due to the Restricted
Stock (RS) for the year ended March 31, 2024.
Number of sharesYear ended March 31, 2023
April 1, 2022
Treasury stock

3,682,139

Increase
1,474,906

Decrease
3,873,000

March 31, 2023
1,284,045

1. Treasury stock at the end of the current consolidated fiscal year included 266,400 shares of the Company owned by the Board
Benefit Trust (BBT) for the year ended March 31, 2023.
2.The increase in treasury stock consists of 1,035,000 shares from the purchase of shares by resolution of the Board of Directors,
259,824 shares due to the ownership of an equity-method affiliate, 180,000 shares due to the additional contribution of Board Benefit
Trust (BBT) pursuant to a resolution of the Board of Directors and an increase of 82 shares from the purchase of shares of less than one
voting unit for the year ended March 31, 2023.
3. The decrease in treasury stock consists of 3,685,100 shares from the cancellation of treasury stock by resolution of the Board of
Directors, 180,000 shares from the disposal of treasury stock through a third-party allotment in accordance with the additional
contribution of the Board Benefit Trust (BBT) pursuant to a resolution of the Board of Directors, 7,900 shares from the payment of due
to the Board Benefit Trust (BBT) for the year ended March 31, 2023.

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20. Related party disclosures
The Company is an affiliate of SUMITOMO CHEMICAL COMPANY, LIMITED, which owned 10.2% and 25.0% of theCompany’s voting shares at March 31, 2024 and 2023, respectively.
SUMIKA TECHNOLOGY CO., LTD. is the subsidiary of SUMITOMO CHEMICAL COMPANY, LIMITED.
The Company controlled 15% and 15% of the voting shares of SUMIKA TECHNOLOGY CO., LTD. at March 31, 2024 and2023, respectively.
(a) Significant transactions with related parties for the years ended March 31, 2024 and 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen
2024

2023

2024

SUMITOMO CHEMICAL COMPANY, LIMITEDNet sales¥

Purchases
Accounts receivable - trade
Accounts payable - trade
Pledges of investment securities
SUMIKA TECHNOLOGY CO., LTD.
Net sales
Accounts receivable - trade

¥

4,497

¥

4,879

$

29,707

15,344
1,918

16,767
1,604

101,345
12,672

4,037
2,256

3,868
4,592

26,664
14,904

12,0694,053¥

11,485
5,344$

79,716
26,774(b) The consolidated subsidiaries’ significant transactions with related parties for the years ended March 31, 2024 and 2023 were as
follows:
There were no significant transactions at March 31, 2024 and 2023.
21. Contingent liabilities
At March 31, 2024 and 2023, the Company and its consolidated subsidiaries were contingently liable as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Discounted notes receivables¥

Discounts on electronically recorded monetary claim - operating
Guarantees for loans of customers and others
Total

¥

340
742
¥

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2023
124

1,207

2024
203

$

124
972
¥

1,300

821
2,251
4,903

$

7,976

22. Subsequent events(Cash dividends)
At the meeting of the Board of Directors of the Company held on May 9, 2024 and May 10, 2023, an appropriation of nonconsolidated
retained earnings for the years ended March 31, 2024 and 2023 were duly approved as follows:
Thousands of
U.S. dollars

Millions of yen
2024
Cash dividends - ¥65.00 ($0.43) per share

¥

3,629

2023
¥

3,675

2024
$

23,972

Note: Total dividends of ¥3,629 million ($23,972 thousand) and ¥3,675 million for the years ended March 31, 2024 and 2023,
respectively, by the resolution at the Board of Directors include dividends on the Company’s stock held by the Board Benefit Trust(BBT trust account) of ¥17 million ($114 thousand) and ¥17 million.

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