Financial Report 2024
For the Year Ended
March 31, 2024

Fujitec Co., Ltd.

1. Consolidated Financial Statements(1) [Consolidated Balance Sheets]a. [Consolidated Balance Sheets]
Previous consolidated
fiscal year
(March 31, 2023)(Millions of yen)
Current consolidated
fiscal year
(March 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other

58,29780,560*1,*2 75,545*1 85,141

4,968*2 3,303

3,672
4,322

*2 12,382

12,922
7,653

7,771

Allowance for doubtful accounts(3,135)(3,789)Total current assets

159,132

190,484*2 39,870*2 41,351

Accumulated depreciation(19,801)(21,507)

Buildings and structures, net

20,068

19,844*2 16,198*2 17,014(10,554)(11,463)

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

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

5,644

5,551

9,851
(7,111)

10,529(7,660)

2,739

2,869

*2 7,200*2 7,256

3,233

4,219

Accumulated depreciation(1,222)(1,839)Leased assets, net

2,010

2,380

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets

Construction in progress

843

1,645

38,50639,547

Goodwill
Other

1,503
3,903

2,210
3,826

Total intangible assets

5,406

6,036

*3 10,059*3 11,770

1,262
-

1,171
980

Total property, plant and equipment
Intangible assets

Investments and other assets
Investments securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other

4,812

3,580

*3 11,698*3 3,505

Allowance for doubtful accounts

(780)

(674)

Total investments and other assets

27,052

20,334

Total non-current assets
Total assets―1―

70,96565,917230,098

256,402

(Millions of yen)
Current consolidated
fiscal year
(March 31, 2024)

Previous consolidated
fiscal year
(March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating

18,5483,904

18,181
4,116

Short-term debt
Current portion of long-term debt

*2 9,789*2 5,733

6-

Accrued income taxes
Provision for bonuses

1,430
2,628

4,431
3,173

Provision for director bonuses
Provision for losses on construction contracts

46
8,568

57
10,227

Provision for warranties for completed construction
Provision for shareholder benefit program

2,086
114

2,234
127

*1 21,010*1 20,999

11,752

15,02179,88884,304Long-term debt
Deferred tax liabilities*2 13*2 128173

213

Net defined benefit liability
Asset retirement obligations

4,232
53

4,595
53

Other

1,618

1,931

Advances from customers
Other
Total current liabilities
Non-current liabilities

Total non-current liabilities

6,092

6,921

85,98091,225Paid-in capital
Additional paid-in capital

12,533
14,475

12,533
14,565Retained earnings
Treasury stock

99,545(2,287)

111,405(2,155)

Total Shareholders' equity

124,268

136,349

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

2,426

4,806

Deferred gains or losses on hedges
Foreign currency translation adjustments

(127)
2,098

(125)
7,473

Remeasurements of defined benefit plans

(768)

(146)

Total accumulated other comprehensive income

3,629

12,008Stock acquisition rights

35

35

Non-controlling interests

16,185

16,783

Total net assets
Total liabilities and net assets―2―

144,117

165,177

230,098

256,402

b. [Consolidated Statements of Income and Consolidated Statements of Comprehensive Income][Consolidated Statements of Income](Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(April 1, 2022 to March 31, 2023) (April 1, 2023 to March 31, 2024)
Net sales
Cost of sales
Gross profit*1 207,589*1 229,401*3,*7 165,430*3,*7 180,994

42,15848,407*2,*3 30,540*2,*3 33,835

Operating income

11,618

14,571Other income
Interest income

Selling, general and administrative expenses

1,175

2,429

Dividend income
Foreign exchange gains

235
649

261
752

Rent income
Miscellaneous income

154
425

189
999

Total other income

2,641

4,632

Other expenses
Interest expenses

185

387

571
93

13
-

Provision of allowance for doubtful accounts
Commission for purchase of treasury shares
Miscellaneous loss

77

86

Total other expenses

928

486

13,331

18,717*4 16*4 5,363

Gain on sales of investment securities
Subsidy income

10
268

466
-

Total special gain

295

5,830

*5 5

*5 4

Ordinary income
Special gain
Gain on sales of non-current assets

Special loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Total special loss

*6 37

*6 19

*8 1,146*8 607

0

-

0

-

1

-

1,190

631

Profit before income taxes

12,43523, 916

Income taxes expense
Income taxes for prior periods

2,474
-

*9 605

522

148

Deferred taxes expense

4,775

Total income taxes

2,997

5,529

Profit9,438

18,387

Profit attributable to non-controlling interests

1,005

556

Profit attributable to owners of parent

8,433

17,830―3―

[Consolidated Statements of Comprehensive Income](Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(April 1, 2022 to March 31, 2023) (April 1, 2023 to March 31, 2024)
ProfitOther comprehensive income

9,438

18,387

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(49)
(172)

2,379
2

Foreign currency translation adjustments
Remeasurements of defined benefit plans

9,953
(162)

6,209
622

*1,*2 9,568*1,*2 9,214

19,007

27,601

17,113
1,894

26,2091,391

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests―4―

c. [Consolidated Statements of Changes in Shareholders’ Equity]
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Paid-in capital
Balance at the beginning of thecurrent fiscal year
Change during the current fiscal
year
Change in ownership interest ofparent due to transactions with
non-controlling interests

Additional paid-in
capitalRetained earnings

14,474

104,649

12,533

Total Shareholders'equityTreasury stock(2,267)

129,391

00

Dividends from surplus(6,427)(6,427)

Changes in scope of consolidation

1,470

1,470

(19)

(19)

8,433

8,433

Effect of hyperinflation
Profit attributable to owners ofparentPurchases of treasury stock(8,932)(8,932)

7

345

352

(8,567)8,567-

Disposal of treasury stock
Cancellation of treasury stock
Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity
Total changes during the current
fiscal year
Balance at the end of the current
fiscal year

8,560

(8,560)--0(5,103)(19)(5,123)

12,533

14,47599,545(2,287)124,268

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at the beginning of thecurrent fiscal year
Change during the current fiscal
year
Change in ownership interest ofparent due to transactions with
non-controlling interests

2,475

17

Total
Stock
Foreign
Remeasurements accumulated acquisition
currency
otherof definedrightstranslation
benefit plans comprehensive
adjustments
income(5,794)(607)(3,908)35

Noncontrollinginterests

Total net
assets

14,964140,4820Dividends from surplus(6,427)

Changes in scope of
consolidation

1,470

Effect of hyperinflation(19)

Profit attributable to owners ofparent8,433

Purchases of treasury stock(8,932)

Disposal of treasury stock

352

Cancellation of treasury stock
Transfer from retained earnings
to capital surplus
Net changes of items other thanshareholders’ equity
Total changes during the current
fiscal year
Balance at the end of the current
fiscal year

(49)

(144)

7,892

(161)

7,537

-

1,220

8,758

(49)

(144)

7,892

(161)

7,537

-

1,220

3,635

2,426

(127)

2,098

(768)

3,629

35

16,185

144,117―5―

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Paid-in capital
Balance at the beginning of thecurrent fiscal year
Change during the current fiscal
year
Change in ownership interest ofparent due to transactions with
non-controlling interests

Additional paid-in
capitalRetained earnings

14,47599,545

12,533

Total Shareholders'equityTreasury stock(2,287)124,268

81

81

Dividends from surplus(5,852)(5,852)

Changes in scope of consolidation

(48)

(48)

Effect of hyperinflation

(70)

(70)

17,83017,830

Profit attributable to owners ofparentPurchases of treasury stock
Disposal of treasury stock

8

(1)

(1)

133

141

Cancellation of treasury stock-

Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity
Total changes during the current
fiscal year
Balance at the end of the current
fiscal year

-

-

89

11,859132

12,081

12,533

14,565

111,405(2,155)

136,349

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at the beginning of thecurrent fiscal year
Change during the current fiscal
year
Change in ownership interest ofparent due to transactions with
non-controlling interests

2,426

(127)

Total
Stock
Foreign
Remeasurements accumulated acquisition
currency
otherof definedrightstranslation
benefit plans comprehensive
adjustments
income
2,098

(768)

3,629

35

Noncontrollinginterests

Total net
assets

16,185

144,117

81

Dividends from surplus(5,852)

Changes in scope of
consolidation(48)

Effect of hyperinflation(70)

Profit attributable to owners ofparent17,830Purchases of treasury stock(1)

Disposal of treasury stock

141

Cancellation of treasury stock
Transfer from retained earnings
to capital surplus
Net changes of items other thanshareholders’ equity
Total changes during the current
fiscal year
Balance at the end of the current
fiscal year

2,379

1

5,375

622

8,379

-

598

8,977

2,379

1

5,375

622

8,379

-

598

21,059

4,806

(125)

7,473

(146)

12,00835

16,783

165,177―6―

d. [Consolidated Statements of Cash Flows](Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(April 1, 2022 to March 31, 2023) (April 1, 2023 to March 31, 2024)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses to
employees
Increase (decrease) in provision for loss on
construction contracts
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payabletrade
Loss (gain) on sales of investment securities

12,43523,916

4,033
1,146

4,421
607

294

343

(785)

490

(2,306)

1,260(1,411)
185(2,690)387(4,281)(5,323)(4,283)

1,065

870

(1,415)

(10)

(466)

Increase (decrease) in advances received
Loss (gain) on sale and retirement of non-current
assetsIncrease (decrease) in net defined benefit liability(3,354)(2,277)25(5,340)49

180

Loss (gain) on valuation of investment securities
Other, net

0(1,156)

4,270

Subtotal

1,453

19,428

Income taxes paid

(3,799)(1,930)Net cash provided by (used in) operating activities(2,346)

17,498Cash flows from investing activities
Payments into time deposits(17,503)(23,659)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of investment securities

25,879(3,723)

19,697(2,970)32

74(1,805)(128)

Proceeds from sales of investment securities
Purchase of intangible assets

46
(233)

689
(241)

Proceeds from sale of intangible assets
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Collection of loans receivable

-

5,405

(1,756)

(528)

177

81

Interest and dividends received
Other, net

1,116
(281)

2,161
(147)

Net cash provided by (used in) investing activities

1,949

433

―7―

(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(April 1, 2022 to March 31, 2023) (April 1, 2023 to March 31, 2024)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

5,775(4,457)

0
(383)

27
(136)

Purchase of treasury sharesInterest paid

(8,559)
(152)

(1)
(339)

Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net(6,414)(806)(5,851)
(595)

(1)

(254)

(128)

(496)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
year
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at the end of the fiscal year

(10,670)(12,104)

3,279

1,598

(7,788)7,424

39,042

31,463209

99*1 31,463*1 38,987

Proceeds from long-term borrowings
Repayments of long-term borrowings―8―[Notes to consolidated financial statements](Material basis for preparing consolidated financial statements)
1.

Scope of consolidation(a) Number of consolidated subsidiaries: 25
Major consolidated subsidiaries:
Fujitec America, Inc. (U.S.A.)
Fujitec Singapore Corpn. Ltd. (Singapore)
Huasheng Fujitec Elevator Co., Ltd. (China)
Fujitec (HK) Co. Ltd. (Hong Kong)
Effective as of the current consolidated fiscal year, Elevadores EV International, S.A. de C.V. was included in the scope of
consolidation due to the increased importance of the company in question. In addition, Stampede Elevator INC. was includedin the scope of consolidation as it became a new subsidiary following the acquisition of all its outstanding shares throughFujitec Canada, Inc., a wholly owned subsidiary.
(b) Major non-consolidated subsidiaries
Major non-consolidated subsidiaries
Fujitec Saudi Arabia Co., Ltd. (Saudi Arabia)(Reasons for exclusion from the scope of consolidation)
Non-consolidated subsidiaries are excluded from the scope of consolidation because they are small in scale and combined
total assets, net sales, net income/loss (the Company's ownership percentage), and retained earnings (the Company's
ownership percentage) of said subsidiaries do not have a material impact on the consolidated financial statements.

2.

Application of the equity method(a) Non-consolidated subsidiaries accounted for under the equity method:

0 company(b) Affiliates accounted for under the equity method:

0 company(c) Non-consolidated subsidiaries not accounted for by the equity method (Fujitec Saudi Arabia Co., Ltd. and others) and affiliatedcompany (Toyo Elevator Co., Ltd.) are excluded from the scope of equity method accounting as net income or loss (ascalculated by the equity method) and retained earnings (as calculated by the equity method) have a minimal effect on the
consolidated financial statements and are not significant as a whole.
3.

Fiscal years of consolidated subsidiaries
The fiscal year end of all consolidated subsidiaries is December 31.
In preparing the consolidated financial statements, the Company use the financial statements of these subsidiaries as of that date.
Any adjustments necessary for consolidation are made for significant transactions that occurred between that date and theconsolidated fiscal year-end.

4.

Summary of Significant accounting policies(a) Valuation standards and methods for significant assetsi.

Valuation standards and methods for securities
Stock of non-consolidated subsidiaries and affiliated companies…Cost method based on the moving average method
Other securities
Items other than stocks, etc., with no market price: Fair value method (valuation differences charged or credited directly to
net assets, and cost of sales is calculated by the moving-average method)
Stocks, etc., with no market price: Cost method based on the moving average method

ii. Valuation standards and methods for derivatives: Fair value methodiii. Valuation standards and methods for inventories:
Mainly, the company calculates costs via the specific identification method or weighted average method(Values on the balance sheet are calculated via the book value reduction method based on decreased profitability.)―9―(b) Depreciation/amortization method for significant depreciable/amortizable assetsi.

Property, plant and equipment (excluding leased assets)
Mainly, the company uses the straight-line method.
Note that the most common useful economic life periods are as follows.

ii.

Buildings and structures

3-60 years

Machinery and equipment

2-20 years

Tools, furniture and fixtures

2-20 years

Intangible assets (excluding leased assets)
The company uses the straight-line method.
Note that for internal-use software, the Company uses the straight-line method based on the period of internal use (5 years).

iii.

Leased assets
Lease assets related to finance lease transactions without transfer of ownership
The Company uses the straight-line method, with the lease period as the useful economic life and zero residual value.
Note that some overseas subsidiaries prepare financial statements based on IFRS or U.S. GAAP, and apply IFRS 16(Leases) or ASU 2016-02 (Leases). Under IFRS 16 or ASU 2016-02 for lessees, in principle, all leases are recorded asassets and liabilities on the balance sheet.

(c) Standards for the recognition of significant allowancesi.

Allowance for doubtful accounts
To prepare for bad debt expenses accounts receivable, loans receivable, etc., the Company provides an allowance for
doubtful accounts based on the historical write-off rate for ordinary receivables, and the estimated amount of irrecoverable
debt is booked based on the recoverability of individual cases for specified receivables such as debt with a possibility ofdefault.

ii. Provision for bonuses
The company provides an allowance for the payment of bonuses to employees based on the estimated payment amount.
iii. Provision for director bonuses
The company provides an allowance for the payment of bonuses to directors based on the estimated payment amount.
iv.

Provision for losses on construction contracts
To provide for future losses on construction contracts, the Company records estimated losses on construction contracts thathave not been delivered as of the end of the current consolidated fiscal year, for which losses are expected and the amountof said losses can be reasonably estimated.

v.

Provision for warranties for completed construction
To provide for warranty expenses related to completed construction, the Company estimates the amount of warranty
expenses expected to be incurred in the future and records an amount representing a percentage of sales of completed
construction.

vi.

Provision for shareholder benefit program
The Company records an allowance for expenses expected to be incurred under the shareholder benefit program.

(d) Accounting treatment for retirement benefits
To provide for the payment of retirement benefits to employees, the Company records an amount equal to the projected
retirement benefit obligation less pension assets, based on the estimated amount of retirement benefits as of the end of thecurrent consolidated fiscal year.
i.

Method of attributing projected retirement benefits to fiscal periods
When calculating retirement benefit obligations, the Company uses a method of attributing retirement benefits to the period
through the end of the current consolidated fiscal year based on the benefit calculation method.

ii.

Method of amortizing actuarial gains and losses and prior service cost
Actuarial gains and losses are calculated under the straight-line method over a specified number of years (10 years) within
the average remaining service period of employees as of the consolidated fiscal year in which the difference arose, and―10―

prorated and expensed in the consolidated fiscal year following the year in which such differences occurred.
Prior service costs are amortized by the straight-line method over a specified number of years (10 years) within the averageremaining service period of employees at the time the cost is incurred.
Unrecognized actuarial gains and losses and unrecognized prior service cost are adjusted for tax effect, and then included in
net assets as remeasurements of defined benefit plans under other accumulated comprehensive income.
Certain consolidated subsidiaries adopt a simplified method for the calculation of net defined benefit liability andretirement benefit expenses, using the amount payable at the end of the fiscal year for retirement benefits as the retirement
benefit obligation.
(e) Basis for recognition of significant revenues and expenses
The major performance obligations in the principal operations of the Company and its consolidated subsidiaries related torevenues arising from contracts with customers and the general timing at which such performance obligations are satisfied (usual
timing for revenue recognition) are as follows.
i. New installation work
The Company performs new installation work on elevators, escalators, and other equipment. The Company recognizes
revenue for such contracts based on the percentage of completion related to the satisfaction of performance obligations overa specified period of time. This is a contract whereby the construction work in question creates an asset that cannot be
converted to an alternative use and the contractor has an enforceable right to receive consideration for the portion of thework completed. Since costs are incurred in accordance with the actual progress of construction, the Company has
determined that it can reasonably estimate the degree of progress in satisfying the performance obligation based on inputs
based on the costs incurred. The Company measures progress based on the percentage of construction costs incurred by theend of each reporting period compared with the total expected construction costs. In addition, certain foreign subsidiaries
recognize revenues from sales of equipment and installation of equipment under an integrated contract at a single point intime when the equipment is delivered to the customer, and recognize revenues related to the installation of the equipment
based on percentage of completion related to the satisfaction of performance obligations over a specified period of time.
This is a contract whereby the construction work in question creates an asset that cannot be converted to an alternative use
and the contractor has an enforceable right to receive consideration for the portion of the work completed. Since costs are
incurred in accordance with the actual progress of construction, the Company has determined that it can reasonably
estimate the degree of progress in satisfying the performance obligation based on inputs based on the costs incurred. The
Company measures progress based on the percentage of construction costs incurred by the end of each reporting period
compared with the total expected construction costs.
ii. Modernization projects
The Company performs modernization work for elevators, escalators, and other equipment. The Company recognizes
revenue for such contracts based on the percentage of completion related to the satisfaction of performance obligations overa specified period of time. This is a contract whereby the construction work in question creates an asset that cannot be
converted to an alternative use and the contractor has an enforceable right to receive consideration for the portion of thework completed. Since costs are incurred in accordance with the actual progress of construction, the Company has
determined that it can reasonably estimate the degree of progress in satisfying the performance obligation based on inputs
based on the costs incurred. The Company measures progress based on the percentage of construction costs incurred by theend of each reporting period compared with the total expected construction costs.
iii. Maintenance
The Company provides maintenance services for elevators, escalators, and other equipment. The Company recognizes
revenue for such maintenance contracts based on the percentage of completion related to the satisfaction of performanceobligations over a specified period of time. The Company measures progress based on an elapsed period to charge a fixedamount according to the duration of services rendered.
iv. Repairs
The Company performs repair work on elevators, escalators, and other equipment. The Company recognizes revenue forsuch contracts at the point in time in which work is completed.

―11―

(f) Standards for translating material foreign currency denominated assets or liabilities into Japanese currency
Receivables and payables denominated in foreign currencies are converted into yen at the spot exchange rate on the balance sheet
date and translation differences posted as profit or loss for the current period.
The assets and liabilities of overseas subsidiaries are converted to yen at the spot exchange rate on the balance sheet date, while
related revenues and expenses are converted to yen at the average rate during the period. These translation differences are posted
as foreign currency translation adjustments or non-controlling interests under net assets.
However, income and expenses of foreign subsidiaries in hyperinflationary economies are translated into yen at the spot
exchange rate on the balance sheet date in order to apply IAS 29, "Financial Reporting in Hyperinflationary Economies".
In the event of significant changes in exchange rates between the balance sheet date of foreign subsidiaries and the consolidatedbalance sheet date, balance sheet items of the foreign subsidiaries are translated into yen at the exchange rates prevailing as of
the consolidated balance sheet date.
(g) Important hedge accounting methodsi.

Hedge accounting method
As a rule, the Company uses deferral hedge accounting.

ii.

Hedge accounting methods and hedged items

iii.

Hedge accounting methods

Hedged items

Forward exchange contracts

Expected foreign-currency transactions

Hedging policy
The finance division of each company enters into derivative transactions for the purpose of hedging risks, hedging within acertain range the interest rate fluctuation risks and foreign exchange fluctuation risks associated with hedged items.

iv.

Evaluation of hedge effectiveness
The Company compares cumulative cash flow variations for hedged items and hedge accounting methods with market
fluctuation on a semi-annual basis, and assesses the effectiveness of hedges based on the amounts of variation in both cases.

(h) Goodwill amortization method and period
The Company amortizes goodwill on a straight-line method between 5 and 14 years.
(i) Scope of funds reported on the consolidates statement of cash flows
The company reports cash on hand, deposits drawable at will, deposits readily convertible to cash, and price change-insensitive
short-term investments whose redemption period is within three months.
(j) Other significant matters for preparing consolidated financial statements
Not applicable.
(Significant accounting estimates)
The following are estimated items expected to have a particularly large impact on the Company’s consolidated financial statementsin the following fiscal year.
Provision for losses on construction contracts(1) Amount recorded in the consolidated financial statements for the current fiscal year
(Millions of yen)

Provision for losses on
construction contracts

Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

8,568

10,227(2) Information related to details of significant accounting estimates for specific items
The Group recognizes estimated losses on undelivered construction contracts at the end of the consolidated fiscal year when―12―

it is probable that the total construction costs, of such construction will exceed the amount of the revenue and when the
expected loss can be reasonably estimated. Calculations of the total construction costs are based on information available,
including contract details and past cost performance of identical models. The assumptions used in the calculations are subject
to continuous verification and revisions of estimates, since assumptions vary due to various factors, including contractchanges, construction conditions, and trends in material and subcontracting costs.
Revisions to these estimates and actual production costs that differ from estimates may have a significant impact on theprovision for losses on construction contracts and gross profit in the following consolidated fiscal year.
(Changes in Accounting Policies)(Adoption of Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses)
Effective as of current consolidated fiscal year, one Fujitec Group subsidiary utilizing U.S. GAAP has adopted ASU 2016-13,
Financial Instruments—Credit Losses. With this change, The Company revised our method for measuring financial
instruments. The aforementioned ASU also requires the recognition of write-downs for financial assets using an expectedcredit loss model. The adoption of this accounting standard update has no effect on consolidated financial statements or pershare information.

(Unapplied accounting standards)∙ Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022)∙ Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25, October 28, 2022)∙ Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022)(1) Overview
This standard establishes the treatment of tax effects related to the sale of shares of subsidiaries in the case when the accountingclassification of tax expenses and the group corporate taxation for other comprehensive income are applied.
(2) Scheduled date of application
Scheduled to be applied from the beginning of the fiscal year ending March 31, 2025.
(3) Effect of application of the aforementioned accounting standards
As of the preparation of these consolidated financial statements, the amount of impact is under evaluation.
(Changes in Presentation Methods)(Consolidated statements of cash flows)
The Company revised the account title for “loss (gain) on sales and retirement of property, plant and equipment”, which had
been presented under cash flows from operating activities in the previous consolidated fiscal year, to for the current
consolidated fiscal year due to the recording of a gain on sale related to intangible assets arising during the current
consolidated fiscal year.
As a result, the 25 million yen disclosed under “loss (gain) on sales and retirement of property, plant and equipment” in the
consolidated statements of cash flows for the previous consolidated fiscal year are presented as 25 million yen in “loss (gain)on sale and retirement of non-current assets”.
(Supplemental Information)(Transaction to deliver Fujitec Co., Ltd. shares to employees, etc. via trust)
At a meeting held November 6, 2020, the Fujitec Co., Ltd. board of directors resolved to adopt a Trust-Type Employee
Shareholding Incentive Plan (E-Ship). The purpose of this plan is to incentivize employees to raise corporate value over the
medium and long term, to expand employee welfare benefits, and to encourage steady company growth by motivating
employees through equity participation. However, the company terminated this trust on August 29, 2023.

―13―

(Hyperinflation Accounting)
The Group applied IAS 29, Financial Reporting in Hyperinflationary Economies, for adjustments in connection with theconsolidation of the financial statements of Fujitec Argentina S.A.. The economy of Argentina indicated a cumulative inflation
rate exceeding 100% over a three-year period.
(Consolidated balance sheets)*1 The amount of receivables and contract assets from contracts with customers among notes and account receivable-trade and contract
assets, and the amount of contract liabilities among advances from customers are as described under the Notes to Consolidated
Financial Statements (revenue recognition) 3.(1) Balance of contract assets, contract liabilities, etc..
*2 Collateral assets and secured debt
The following describes assets pledged as collateral and secured debts.
(Millions of yen)Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Notes and accounts receivable-trade,and contract assets

346-

Work in process24-

Raw materials and supplies

147-

Buildings and structures

2,318

2,292

Machinery and equipment

75

58

Land

529

295

3,441

2,646

Total

(Millions of yen)Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Short-term debt

654

369

Long-term debt

13

91

*3 The following describes items related to non-consolidated subsidiaries and affiliated companies.
(Millions of yen)

Investments securities (stock)
Investments and other assets, other(investments in capital)

Previous consolidated fiscal year
(March 31, 2023)
2,244

Current consolidated fiscal year
(March 31, 2024)
846

708

708

(Consolidated statements of income)*1 Revenues arising from contracts with customers
The Company do not separately provide revenues as revenues arising from contracts with customers and other revenues. The
amounts of revenues arising from contracts with customers are presented in Notes to consolidated financial statements(revenue recognition) 1. Disaggregation of revenues arising from contracts with customers.

―14―

*2 The following describes the major components of selling, general and administrative expenses.
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Salaries and allowances

11,55912,559Provision for bonuses

2,559

2,274

Provision for director bonuses

46

47

Retirement benefit expenses
Provision of allowance for doubtful
accounts
Provision of allowance forshareholder benefits

517

597

93

611

114

127

*3 Total research and development expenses included in general and administrative expenses and manufacturing expenses for the period
under review are as follows.
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

2,590

2,974

*4 The details of gain on sales of non-current assets are as follows.
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Machinery and equipment
Tools, furniture and fixtures
Leased assets

10
0
6

5
0
28

Other (Intangible assets)

-

5,330

16

5,363

Total
*5 The details of loss on sales of non-current assets are as follows.

(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Machinery and equipment

5

4

Tools, furniture and fixtures

0

0

5

4

Total

*6 The details of loss on retirement of non-current assets are as follows.
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)
Buildings and structures

21

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)
1

Machinery and equipment

44

Tools, furniture and fixtures

11

10

Demolition and removal costs

-

3

37

19

Total

―15―

*7 The provision for loss on construction contracts included in cost of sales is as follows.
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

6,470

10,188*8 Impairment loss
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Significant impairment losses are as follows
Place
The U.K.

Usage
-

Class
Goodwill

Impairment loss
(millions of yen)
1,046

The Group's assets are grouped based on management accounting categories in which profit and loss are continuously
monitored.
As a result of reviewing the business plan of Amalgamated Lifts Limited, the Company reduced the carrying value of goodwill
arising from the acquisition of shares of Amalgamated Lifts Limited to the recoverable amount because the Company nolonger expects the goodwill to generate the initially anticipated earnings. The recoverable amount is measured from value in
use, which is calculated by discounting future cash flows at a rate of 13.3%.
Impairment losses other than the above are not significant and are therefore omitted.
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
Significant impairment losses are as follows
Place
India

Usage
-

Class
Goodwill

Impairment loss
(millions of yen)464

The Group's assets are grouped based on management accounting categories in which profit and loss are continuously
monitored.
The Group reduced the carrying value of goodwill arising from the acquisition of Express Lifts Limited (currently Fujitec
Express Limited) to the recoverable amount after reviewing the discount rate and other factors. The Company recorded the
reduction as impairment loss under special loss. The recoverable amount is measured from value in use, which is calculated bydiscounting future cash flows at a rate of 15.2%.
Impairment losses other than the above are not significant and are therefore omitted.
*9 Income taxes for prior periods
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
As a result of an income tax audit conducted for taxable years from the fiscal year ended March 31, 2020 to the fiscal year ended
March 31, 2023, the Company recorded 605 million yen in income taxes for prior periods.

―16―

(Consolidated statements of comprehensive income)*1 Reclassifications and adjustments related to other comprehensive income(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Valuation difference on available-for-salesecurities
Gains (losses) arising during the year

32

3,796

Reclassifications and adjustments

(9)

(466)

Total

23

3,329

(168)

15

Deferred gains or losses on hedges
Gains (losses) arising during the year
Reclassifications and adjustments
Total

(4)

(12)

(172)

2

9,953

6,209

-

-

9,953

6,209

Foreign currency translation adjustments
Gains (losses) arising during the year
Reclassifications and adjustments
Total
Remeasurements of defined benefit plans
Gains (losses) arising during the year

(468)

704

Reclassifications and adjustments

132

240

Total

(335)

945

Total before tax effect adjustments
Tax effectTotal other comprehensive income

9,467

10,486100(1,272)

9,568

9,214

*2 Tax effect related to other comprehensive income(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)
Valuation difference on available-for-salesecurities
Before tax effect adjustments

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

23

3,329

Tax effect

(72)

(950)

After tax effect adjustments

(49)

2,379

(172)

2

-

-

(172)

2

9,953

6,209

-

-

9,953

6,209

(335)

945

Tax effect

173

(322)

After tax effect adjustments

(162)

622

Deferred gains or losses on hedges
Before tax effect adjustments
Tax effect
After tax effect adjustments
Foreign currency translation adjustments
Before tax effect adjustments
Tax effect
After tax effect adjustments
Remeasurements of defined benefit plans
Before tax effect adjustments

Total other comprehensive income
Before tax effect adjustments
Tax effect
After tax effect adjustments

―17―

9,467

10,486100(1,272)

9,568

9,214

(Consolidated statements of change in shareholders’ equity)
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
1.

Issued sharesClass of stock

Beginning of the fiscal
year (consolidated)

Increase

End of the fiscal year
(consolidated)

Decrease

Common stock
82,4003,500
78,900(thousand shares)(Summary of reasons for change)
The following provides details of increases and decreases.
Cancellation of treasury stock by resolution of the Board of Directors on February 8, 2023: 3,500 thousand shares
2. Treasury stock
Beginning of the fiscal
year (consolidated)

Class of stock

Increase

End of the fiscal year
(consolidated)

Decrease

Common stock
1,434
3,147
3,654
927
(thousand shares)(Note) The number of shares of common stock in treasury stock at the end of the current consolidated fiscal year was 51 thousand
shares of Company stock held as a Trust-Type Employee Shareholding Incentive Plan (E-Ship), and 876 thousand shares
due to the acquisition of treasury stock.
(Summary of reasons for change)
The following provides details of increases and decreases.
Increase due to purchase of fractional shares:
0 thousand shares
Acquisition of treasury stock by resolution of the Board of Directors on March 1, 2022:
3,147 thousand shares
Disposal of treasury stock by resolution of the Board of Directors on July 22, 2022:
8 thousand shares
Cancellation of treasury stock by resolution of the Board of Directors on February 8, 2023:
3,500 thousand shares
Decrease due to the sale of shares to the Trust-Type Employee Shareholding Incentive Plan (E-Ship): 146 thousand shares
3.

Stock acquisition rights

Company Name

FUJITEC CO., LTD.

FUJITEC CO., LTD.

FUJITEC CO., LTD.

Details

Stock acquisitionrights as stock
options resolvedby the Board of
Directors on
November 8,
2013
Stock acquisitionrights as stock
options resolvedby the Board of
Directors on
August 7, 2014
Stock acquisitionrights as stock
options resolvedby the Board of
Directors on
August 7, 2015

Balance at theClass of
Number of shares eligible (shares)
end of theshares eligible
year
for stock Beginning ofEnd of the (consolidated)acquisition the fiscal year Increasefiscal year (Millions of
Decreaserights(consolidated)(consolidated)
yen)

-

-

-

-

-

21

-

-

-

-

-

11

-

-

-

-

-

2

-

-

-

-

35

Total

―18―

4.

Dividends(1) Cash dividends paid
Resolution

Class of stock

Total Dividend
Dividend per Share
Value
(Yen)
(Millions of yen)

Record date

Effective Date

Ordinary General
Meeting ofCommon stock
3,652
45.00
March, 31, 2022
June 24, 2022
Shareholders on
June 23, 2022
Board of Directors
Meeting on
Common stock
2,775
35.00 September, 30, 2022 December 1, 2022
November 8, 2022
(Notes) 1. The total amount of dividends resolved at the Ordinary General Meeting of Shareholders on June 23, 2022 included 8
million yen in dividends for Company shares held for the Trust-Type Employee Shareholding Incentive Plan (E-Ship).
2. The total amount of dividends resolved at the Board of Directors Meeting on November 8, 2022 included 4 million yen
in dividends for Company shares held for the Trust-Type Employee Shareholding Incentive Plan (E-Ship).

(2) Dividends with a record date during the fiscal year, but an effective date subsequent to the current consolidated fiscal year
Total Dividend
Source ofDividend per
Resolution
Class of stock
Value
Record date
Effective Date
Dividend
Share (Yen)(Millions of yen)
Ordinary General
Meeting ofCommonRetained
3,120
40.00 March, 31, 2023
June 21, 2023
Shareholders onstock
earnings
June 21, 2023
(Notes) 1. The total amount of dividends resolved at the Ordinary General Meeting of Shareholders on June 21, 2023 included 2
million yen in dividends for Company shares held for the Trust-Type Employee Shareholding Incentive Plan (E-Ship).
2. Dividends per share include a commemorative dividend of 5 yen per share for the 75th anniversary of the Company's
founding.
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
1.

Issued sharesClass of stock

Beginning of the fiscal
year (consolidated)

Common stock(thousand shares)

78,900

Increase

End of the fiscal year
(consolidated)

Decrease--

78,9002. Treasury stock
Class of stock

Beginning of the fiscal
year (consolidated)

Increase

Decrease

End of the fiscal year
(consolidated)

Common stock
927
0
58
869
(thousand shares)(Note) The number of common shares held as treasury stock as of the end of the current fiscal year consists of 0 shares fromfractional purchases and 869,000 shares from share buybacks.
(Summary of reasons for change)
The following provides details of increases and decreases.
Increase due to purchase of fractional shares
0 thousand shares
Disposal of treasury stock by resolution of the board of directors on July 21, 2023
7 thousand shares
Decrease due to the sale of shares to the Trust-Type Employee Shareholding Incentive Plan (E-Ship):
51 thousand shares

―19―

3.

Stock acquisition rights

Company Name

Balance at theClass of
Number of shares eligible (shares)
end of theshares eligible
year
for stock Beginning ofEnd of the (consolidated)acquisition the fiscal year Increase
Decrease
fiscal year (Millions ofrights(consolidated)(consolidated)yen)

Details

Stock acquisitionrights as stock
options resolved by
FUJITEC CO., LTD.
the Board of
Directors on
November 8, 2013

-

-

-

-

-

21

Stock acquisitionrights as stock
options resolved by
FUJITEC CO., LTD.
the Board of
Directors on
August 7, 2014

-

-

-

-

-

11

Stock acquisitionrights as stock
options resolved by
FUJITEC CO., LTD.
the Board of
Directors on
August 7, 2015

-

-

-

-

-

2

-

-

-

-

35

Total

4.

Dividends(1) Cash dividends paid
Total Dividend
Dividend per Share
Value
(Yen)
(Millions of yen)

Resolution

Class of stock

Record date

Effective Date

Ordinary General
Meeting of
Shareholders on
June 21, 2023

Common stock

3,120

40.00

March, 31, 2023

June 21, 2023

Board of Directors
Meeting on
November 8, 2023

Common stock

2,731

35.00 September, 30, 2023

December 1, 2023

(Note) The total amount of dividends resolved at the Ordinary General Meeting of Shareholders on June 23, 2023 included 2
million yen in dividends for Company shares held for the Trust-Type Employee Shareholding Incentive Plan (E-Ship). In
addition, dividends per share included a commemorative dividend of 5 yen per share for the 75th anniversary of theCompany's founding.
(2) Dividends with a record date during the fiscal year, but an effective date subsequent to the current consolidated fiscal year
Total Dividend
Source ofDividend per
Resolution
Class of stock
Value
Record date
Effective Date
Dividend
Share (Yen)(Millions of yen)
Ordinary General
Meeting of
Shareholders on
June 26, 2024

Commonstock

Retainedearnings

9,363

―20―

120.00March, 31, 2024

June 27, 2024

(Consolidated statements of cash flows)*1 The relationship between the period-end balance in cash and deposits and items listed on the consolidated balance sheet is as follows.
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

58,29780,560(26,833)(41,572)

31,46338,987

Cash and deposits
Time deposits with maturities of morethan three months
Cash and cash equivalents(Lease transactions)1.

Finance lease transactions
Finance lease transactions without transfer of ownership(1) Lease asset details
Property, plant and equipment
Property, plant and equipment are mainly office buildings (buildings and structures), business vehicles (machinery, equipment
and vehicles), production facilities (machinery, equipment and vehicles) and office fixtures (tools, furniture and fixtures).
(2) Depreciation method for lease assets
Depreciation for lease assets is as described under Material basis for preparing consolidated financial statements 4. Summary of
Significant accounting policies (b) Depreciation/amortization method for significant depreciable/amortizable assets.

2.

Operating lease transactions
Future minimum lease payments for noncancelable operating leases(Millions of yen)Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Due within one year

1,563

1,287

Over one year

3,325

2,224

4,889

3,512

Total

(Financial instruments)
1.

Matters on the status of financial instruments(1) Policy on financial instruments
The Fujitec Group raises funds for capital investment needs for the production, sales, installation, and maintenance ofelevators, escalators, and electric transport equipment through internal funds or debt financing. Cash surpluses are invested
in highly secure financial assets, and short-term operating funds are financed by internal funds or short-term debt financing.
Derivatives financial instruments are used to mitigate the risk of foreign exchange or interest rate fluctuations, and theCompany's policy is to not engage in speculative transactions.
(2)

Details and risks of financial instruments and risk management structure
Notes and accounts receivable-trade are exposed to customer credit risk. The Company manage this risk according to thecredit management rules, conducting collection date management and balance management for each customer. The
Company also monitor the credit status of major customers on a regular basis. Consolidated subsidiaries engage in similar
management. Foreign currency-denominated trade receivables arising from the Group's global operations are exposed toforeign exchange fluctuation risk. The Group use foreign currency forward contracts to hedge fluctuation risk, if necessary.
As investment securities, stocks are exposed to market price fluctuation risk. However, the Group owns stocks mainly incompanies with which the Group has business relationships. The Group periodically assesses the fair value of these stocks
and reviews holdings on an ongoing basis in consideration of relationships with business partners.
As trade payables, trade notes and accounts payable-trade, electronically recorded obligations are mainly due within one―21―year. A portion trade notes and accounts payable arising from the import of raw materials, etc., is denominated in foreign
currency and is exposed to market risk fluctuation for foreign currency exchange rates. However, the balance of payables
denominated in foreign currencies is always less than the balance of receivables denominated in foreign currencies.
Of debt payables, short-term debt is mainly related to operating activities and long-term debt is incurred mainly for
financing necessary capital investments.
Derivatives consists of foreign currency forward contracts used to manage the market risk of fluctuations in foreign
currency exchange rates. The finance departments of each Group company enters into derivative transactions for the
purpose of hedging risks. The results of derivative transactions are reported to the Company’s Finance HQ and the director
in charge of finance. Derivative transactions are limited to financial institutions with high credit ratings to reduce credit
risk.
Hedge accounting methods, hedged items, hedging policies, and evaluations of hedging effectiveness are as described inMaterial basis for preparing consolidated financial statements 4.(g) Important hedge accounting methods.
(3)

Supplementary information on fair values of financial instruments
As fair value calculations for financial instruments incorporate variable factors, values may fluctuate if different
assumptions are used. Nominal contract amounts related to derivative transactions under Derivatives in the notes to thesefinancial statements do not indicate the market risk of derivative transactions.

2.

Fair value, etc., of financial instruments
The following table describes the carrying amount, fair value, and gains or losses related to financial instruments on
consolidated financial statements.

Previous consolidated fiscal year (March 31, 2023)(Millions of yen)
Carrying value on
consolidated balance
sheets
66,373

Fair value

Difference

66,229(144)

59,12856,914(2,213)

7,695

7,695

-

1,262

1,259

(3)

134,461

132,099(2,361)(1) Notes and accounts payable-trade18,54818,548-(2) Electronically recorded obligations-operating

3,904

3,904

-

(3) Short-term debt

9,789

9,789

-

(4) Long-term debt (*4)

20

18

(1)

(5) Lease obligations (*5)

2,076

1,963

(112)

34,33934,224

(114)

(151)

(151)

-

(151)

(151)

-

(1) Cash and deposits (*1)(2) Notes and accounts receivable-trade and contract assets(Before deducting allowance for doubtful accounts) (*2)(3) Investments securities
Investments securities, other(4) Long-term loans receivable(Before deducting allowance for doubtful accounts)
Total assets

Total liabilities
Derivatives (*6)
Derivatives with hedge accounting
Total derivative transactions(*1) Cash and deposits also includes long-term time deposits (8,076 million yen on the consolidated balance sheets), which areincluded in other under investments and other assets on the consolidated balance sheets.
(*2) Contract assets are not included.
(*3) Stocks, etc. without market prices are not included in (3) Investments securities.
The amounts of relevant financial instruments on the consolidated balance sheet are as follows.
Classification

Previous consolidated fiscal year (Millions of yen)

Unlisted stocks

118

Stocks of subsidiaries and affiliates

2,244

―22―

(*4) Current portion of long-term debt under current liabilities and long-term debt under non-current liabilities are combined.
(*5) Lease obligations included in current liabilities, other and non-current liabilities, other have been combined.
(*6) Net claims and liabilities arising from derivative transactions are presented at net value, and the total of net liabilities are shownin parentheses.
Current consolidated fiscal year (March 31, 2024)(Millions of yen)

(1) Cash and deposits (*1)(2) Notes and accounts receivable-trade and contract assets(Before deducting allowance for doubtful accounts) (*2)(3) Investments securities

Carrying value on
consolidated balance
sheets80,565

Fair value

Difference

80,565(0)64,11961,078(3,041)

10,805

10,805

-

1,171

1,169

(2)

156,661

153,617(3,044)18,181

18,181-

Investments securities, other(4) Long-term loans receivable(Before deducting allowance for doubtful accounts)
Total assets(1) Notes and accounts payable-trade(2) Electronically recorded obligations-operating

4,116

4,116

-

(3) Short-term debt

5,733

5,733

-

(4) Long-term debt

128

128

-

2,487

2,371

(115)

30,64630,531

(115)

(149)

(149)

-

(149)

(149)

-

(5) Lease obligations (*4)
Total liabilities
Derivatives (*5)
Derivatives with hedge accounting
Total derivative transactions(*1) Cash and deposits also includes long-term time deposits (4 million yen on the consolidated balance sheets), which are included
in other under investments and other assets on the consolidated balance sheets.
(*2) Contract assets are not included.
(*3) Stocks, etc. without market prices are not included in (3) Investments securities.
The amounts of relevant financial instruments on the consolidated balance sheet are as follows.
Classification

Current consolidated fiscal year (Millions of yen)

Unlisted stocks

118

Stocks of subsidiaries and affiliates

846(*4) Lease obligations included in current liabilities, other and non-current liabilities, other have been combined.
(*5) Net claims and liabilities arising from derivative transactions are presented at net value, and the total of net liabilities are shownin parentheses.
(Note1) Scheduled redemption value of monetary claims and securities with maturity dates after the consolidated balance sheet datePrevious consolidated fiscal year (March 31, 2023)
Between one and fiveyears(Millions of yen)

Between five and ten
years(Millions of yen)

58,297

8,076

-

-

54,853

4,265

9

-

1,235

27

-

-

114,386

12,3709-Within one year
(Millions of yen)
Cash and deposits (*1)
Notes and accounts
receivable-trade andcontract assets (*2)
Long-term loans
receivable
Total

Over ten years(Millions of yen)(*1) Long-term time deposits (8,076 million yen on the consolidated balance sheets) included in investments and other assets, otheron the consolidated balance sheets are also included.
(*2) Contract assets are not included.

―23―

Current consolidated fiscal year (March 31, 2024)
Between one and fiveyears(Millions of yen)

Between five and ten
years(Millions of yen)

80,5604--

58,236

5,883

-

-

-

1,171

-

-

138,796

7,059

-

-

Within one year
(Millions of yen)
Cash and deposits (*1)
Notes and accounts
receivable-trade andcontract assets (*2)
Long-term loans
receivable
Total

Over ten years(Millions of yen)(*1) Long-term time deposits (4 million yen on the consolidated balance sheets) included in investments and other assets, other on the
consolidated balance sheets are also included.
(*2) Contract assets are not included.
(Note2) Long-term debt, lease obligations, and other interest-bearing debt scheduled after the consolidated balance sheet datePrevious consolidated fiscal year (March 31, 2023)
Within one year
(Millions of yen)

Between one and fiveyears(Millions of yen)

Between five and ten
years(Millions of yen)Over ten years(Millions of yen)

Short-term debt

9,789

-

-

-

Long-term debt

6

13

-

-

Lease obligations

560

1,149

366

-

10,356

1,163

366

-

Between one and fiveyears(Millions of yen)

Between five and ten
years(Millions of yen)

Total

Current consolidated fiscal year (March 31, 2024)
Within one year
(Millions of yen)Over ten years(Millions of yen)

Short-term debt

5,733

-

-

-

Long-term debt

-

128

-

-

Lease obligations

727

1,580

179

-

6,461

1,708

179

-

Total

3. Details, etc., of the fair value of financial instruments by level
The Company classifies the fair value of financial instruments into the following three levels based on the observability andmateriality of the inputs used to calculate fair value.
Level 1 Fair Value: Fair value measured using observable inputs that are quoted prices for identified assets or liabilities in
active markets
Level 2 Fair Value: Fair value measured using observable inputs other than those included within Level 1.
Level 3 Fair Value: Fair value measured using unobservable inputs.
When multiple inputs that have a significant effect on the calculation of fair value are used, fair value is classified into the levelwith the lowest priority in the calculation of fair value among the levels to which each of those inputs belongs.

―24―

(1) Financial instruments carried at fair value on the consolidated balance sheets
Previous consolidated fiscal year (March 31, 2023)
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Investments securities
Investments securities, other
Corporate bonds
StocksTotal assets

-

43

-

43

7,652

-

-

7,652

7,652

43

-

7,695

Derivative transactions
Currency-related derivatives

-

151

-

151

Total liabilities

-

151

-

151

Current consolidated fiscal year (March 31, 2024)
Classification

Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Investments securities
Investments securities, other
Corporate bonds

-

43

-

43

10,761--

10,761

10,76143-

10,805Currency-related derivatives

-

149

-

149

Total liabilities

-

149

-

149

StocksTotal assets
Derivative transactions(2) Financial instruments other than those carried at fair value on the consolidated balance sheets
Previous consolidated fiscal year (March 31, 2023)
Classification

Fair value (Millions of yen)
Level 1

Cash and deposits

Level 2

Level 3

Total-

66,229-66,229-56,914-56,914

-

1,259

-

1,259

-

124,403-

124,403

Notes and accounts payable-trade-18,548-18,548

Electronically recorded obligations-operating

-

3,904

-

3,904

Short-term debt

-

9,789

-

9,789

Long-term debt

-

18

-

18

Lease obligations

-

1,963

-

1,963

-

34,224-34,224

Notes and accounts receivable-trade and contract assets(Before deducting allowance for doubtful accounts) (*)
Long-term loans receivable(Before deducting allowance for doubtful accounts)
Total assets

Total liabilities(*) Contract assets are not included.

―25―

Current consolidated fiscal year (March 31, 2024)
Classification

Fair value (Millions of yen)
Level 1

Cash and deposits

Level 2

Level 3

Total-

80,565-80,565-61,078-61,078

-

1,169

-

1,169

-

142,812-

142,812

Notes and accounts payable-trade-

18,181-

18,181

Electronically recorded obligations-operating

-

4,116

-

4,116

Short-term debt

-

5,733

-

5,733

Long-term debt

-

128

-

128

Lease obligations

-

2,371

-

2,371

-

30,531-

30,531

Notes and accounts receivable-trade and contract assets(Before deducting allowance for doubtful accounts) (*)
Long-term loans receivable(Before deducting allowance for doubtful accounts)
Total assets

Total liabilities(*) Contract assets are not included.

(Note) Explanation of valuation techniques used and inputs related to the calculation of fair value
Investments securities
Listed stocks are valued based on quoted market prices. Since listed stocks are traded in active markets, fair value is classified as
Level 1 fair value. Corporate bonds are classified as Level 2 fair value, calculated based on the present value of the estimated amountof principal and interest to be received, reflecting the likelihood of collection and discounted at a safe interest rate for the remaining
period.
Derivative transactions
The fair value of forward exchange contracts is classified as Level 2 fair value, as the fair value of forward exchange contracts isbased on prices, etc., provided by financial institutions with which the Company enters transactions.
Cash and deposits
Fair values of cash and short-term deposits classified as Level 2 fair value, as these items are settled over a short period of time andfair values approximate carrying value. The fair value of long-term time deposits is classified as Level 2 fair value. The fair value isbased on the present value of the estimated amount of principal and interest to be received discounted by the interest rate assumed in
the case of a similar new contract.
Notes and accounts receivable-trade, and contract assets
Fair values are classified as Level 2 fair value, as these items are based on the present value of receivables discounted by interest
rates, etc., taking into account the period until maturity and credit risk for each receivable classified by certain periods of time.
Long-term loans receivable
Fair values are classified as Level 2 fair value, calculated based on the present value of the estimated amount of principal and interest
to be received, reflecting the likelihood of collection and discounted at a safe interest rate for the remaining period.
Notes and accounts payable-trade, electronically recorded obligations, and short-term debt
Fair values classified as Level 2 fair value, as these items are settled over a short period of time and fair values approximate carrying
value.
Long-term debt
Long-term debt payable in floating interest rates is classified as Level 2 fair value, as interest rates reflect market interest rates over ashort period of time and fair value approximates book value. Long-term debt payable under fixed interest rates is classified as Level 2
fair value, as fair value is calculated by discounting total principal and interest rate applicable to new similar transactions.

―26―

Lease obligations
Fair value classified as Level 2 fair value, as fair value is calculated by discounting total principal and interest rate applicable to new
similar transactions.
(Investments securities)
1. Trading securities
Previous and current consolidated fiscal years
Not applicable.
2. Held-to-maturity securities
Previous and current consolidated fiscal years
Not applicable.
3. Other securities
Previous consolidated fiscal year (March 31, 2023)

Items whose carrying value on the
consolidated balance sheets exceeds
purchase price
Items whose carrying value on the
consolidated balance sheets do not
exceed purchase priceClass

Carrying value on
consolidated balance sheets(Millions of yen)

Purchase price(Millions of yen)

Difference(Millions of yen)

Stock

6,578

2,708

3,870

Subtotal

6,578

2,708

3,870

Stock

1,073

1,402

(328)

Bonds

43

43

-

Subtotal

1,117

1,446

(328)

7,695

4,154

3,541

Total

(Note) These stocks are not included in investments securities, other as unlisted stocks and stocks of subsidiaries and affiliates arecarried on the balance sheet at purchase price. The carrying amounts of these stocks on the consolidated balance sheets are
as described under Notes to the consolidated financial statements (Financial instruments) 2. Fair value, etc., of financial
instruments.
Current consolidated fiscal year (March 31, 2024)

Items whose carrying value on the
consolidated balance sheets
exceeds purchase price
Items whose carrying value on the
consolidated balance sheets do not
exceed purchase priceClass

Carrying value on
consolidated balance sheets(Millions of yen)

Purchase price(Millions of yen)

Difference(Millions of yen)Stock10,675

3,790

6,884

Subtotal

10,675

3,790

6,884

Stock

86

100

(13)

Bonds

43

43

-

Subtotal

129

143

(13)

10,805

3,934

6,870

Total

(Note) These stocks are not included in investments securities, other as unlisted stocks and stocks of subsidiaries and affiliates arecarried on the balance sheet at purchase price. The carrying amounts of these stocks on the consolidated balance sheets are
as described under Notes to the consolidated financial statements (Financial instruments) 2. Fair value, etc., of financial
instruments.

―27―

4.

Investments securities, other sold during the consolidated fiscal year
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)Class

Sales proceeds

Stock
Total

Total gains on sales

Total losses on sales

46

10

0

46

10

0

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)(Millions of yen)Class

Sales proceeds

Stock
Total

5.

Total gains on sales

Total losses on sales

689

466

-

689

466

-

Securities subject to impairment losses
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
The Company recognized impairment losses of 0 million yen related to other securities and 1 million yen related to stock ofsubsidiaries and affiliates.
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
Not applicable.
(Derivative transactions)1.

Derivative transactions not treated under hedge accounting
Currency-related derivatives
Previous consolidated fiscal year (March 31, 2023)
Not applicable.
Current consolidated fiscal year (March 31, 2024)
Not applicable.

2.

Derivative transactions treated under hedge accounting

Currency-related derivatives
Previous consolidated fiscal year (March 31, 2023)(Millions of yen)
Hedge accounting
methodTransaction type

Main hedge items

Contract value

Due after one year

Fair value

USD

2,182

743

(92)

RMB

2,815

1,089

(58)

4,998

1,832

(151)

Foreign currency
forward contracts
BuyingPrinciple method

Expected foreign
currency transaction

Total

―28―

Current consolidated fiscal year (March 31, 2024)(Millions of yen)
Hedge accounting
methodTransaction type

Main hedge items

Contract value

Due after one year

Fair value

USD

1,546

-

(47)

RMB

1,850

492

(101)

3,397

492

(149)

Foreign currency
forward contracts
BuyingPrinciple method

Expected foreign
currency transaction

Total(Retirement benefits)
1.

Overview of retirement benefits plans
The Company and consolidated subsidiaries have adopted both funded and non-funded defined benefit plans, as well as adefined contribution plan to provide for employee retirement benefits.
Of these plans, the Company has adopted a defined benefit pension plan and a lump-sum severance payment plan, while
consolidated subsidiaries mainly adopt a lump-sum severance payment plan and a defined contribution pension plan.
Certain consolidated subsidiaries calculate net defined benefit liability and retirement benefit expenses using the simplified
accounting method.

2.

Defined benefit plans(1) Changes to the balance of retirement benefit obligations at the beginning and end of the period as of March 31, 2024 and 2023
(excluding plans adopting the simplified accounting method)(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)
Retirement benefit obligations at the beginning of theperiodService cost
Interest cost

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

16,954

17,119

1,080

1,043

74

108

Actuarial gains and losses

(121)

302

Retirement benefits paid

(1,018)(1,072)

149

73

17,11917,575

Other
Retirement benefit obligations at the end of the period(2) Changes to the balance of pension assets at the beginning and end of the period as of March 31, 2024 and 2023 (excluding plans
adopting the simplified accounting method)(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)
Pension assets at the beginning of the period

13,345Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)
12,966

Expected return on plan assets

266

259

Actuarial gains and losses

(589)

1,006

Employer contributions

501

490

Retirement benefits paid
Pension assets at the end of the period

―29―

(558)

(594)

12,966

14,128

(3) Changes to the balance of net defined benefit liability for plans adopting the simplified accounting method at the beginning andend of the period as of March 31, 2024 and 2023
(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)
Net defined benefit liability at the beginning of theperiodRetirement benefit expenses

64

Retirement benefits paid
Other
Net defined benefit liability at the end of the period(4)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)
80

8

33

(2)

(9)

9

64

80

168

Changes to the balance of retirement benefit obligations and pension assets at the end of the period as of March 31, 2024 and2023, and net defined liabilities and assets recorded in the consolidated balance sheets(Millions of yen)Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Funded retirement benefit obligations

12,995

13,148Pension assets(12,966)(14,128)

29

(980)

4,203

4,595

4,232

3,614

4,232

4,595

-

(980)

4,232

3,614

Non-funded retirement benefit obligations
Net liabilities and assets recorded in the consolidatedbalance sheets
Net defined benefit liability
Net defined benefit asset
Net liabilities and assets recorded in the consolidatedbalance sheets(Note) Includes plans adopting the simplified accounting method.
(5) Retirement benefit expenses and details(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)
Service cost

1,080Interest cost

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)
1,043

74

108

Expected return on plan assets

(266)

(259)

Amortization of actuarial gains and losses
Retirement benefit expenses calculated by thesimplified accounting method
Retirement benefit expenses under defined benefit
plans

132

240

8

33

1,028

1,167

(6) Remeasurements of defined benefit plans
The details of remeasurements of defined benefit plans (before deductions of tax effects) are as follows:(Millions of yen)Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Actuarial gains and losses

(335)

945

Total

(335)

945

―30―

(7) Cumulative remeasurements of defined benefit plans
The details of cumulative remeasurements of defined benefit plans (before deductions of tax effects) are as follows:(Millions of yen)Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Unrecognized actuarial gains and losses

1,213

268

Total

1,213

268

(8) Items related to pension assets
a. Details of main pension assets items
Ratios for each main classification of pension assets are as described below.
Previous consolidated fiscal year
(March 31, 2023)

Current consolidated fiscal year
(March 31, 2024)

Bonds

59%

52%

Stocks23%

35%

General accounts

5%

4%

Other

13%

9%

Total

100%

100%

b. Method for determining expected long-term rate of return on plan assets
In determining the expected long-term rate of return on plan assets, the Company considers current and expected distributionsof pension assets and the current and expected long-term rate of return from the various assets that comprise pension assets.
(9) Items related to the basis for actuarial calculations
The main basis for actuarial calculations is as described below.
Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Discount rate

0.2%

0.2%

Expected long-term rate of return

2.0%

2.0%

3. Defined contribution plans
Required contributions to defined contribution plans amounted to 109 million yen for the previous consolidated fiscal year and 119
million yen for the current consolidated fiscal year under review.
(Stock options)1

Stock option details, scope, and variability(1)

Stock option details
Number of stock
options by typeof stock

Date of
Resolution

Classification andNumber of Eligible
Individuals

November 8,
2013

4 directors of theCommon stock: November 25,
November 26, 2013 toCompany excluding
Not granted Not determined
36,000 shares
2013
November 25, 2043
outside directors

August 7,2014

4 directors of theCommon stock:Company excluding
24,000 sharesoutside directors

August 25,
2014

Not granted Not determined

August 26, 2014 toAugust 25, 2044

August 7,2015

4 directors of theCommon stock:Company excluding
7,000 sharesoutside directors

August 25,
2015

Not granted Not determined

August 26, 2015 toAugust 25, 2045

Grant date

―31―

Vesting terms

Eligible
service period

Exercise period

(2)Stock option details, scope, and variability
The Company converted the number of stock options to a number of shares for eligible stock options existing as of the current
consolidated fiscal year.
a. Number of stock options
Unvested Shares (Shares)
Date ofresolution

End of theprevious
Granted Expired Vested
consolidated
fiscal year

November 8,
2013
August 7,
2014
August 7,
2015

Vested Shares (Shares)
Balance ofunvested
sharesEnd of theprevious
consolidated
fiscal year

Vested Exercised Expired Unexercised

-

-

-

-

-

21,000---21,000

-

-

-

-

-

14,000---14,000

-

-

-

-

-

4,000

-

-

-

4,000

b. Unit price information

2.

Average Stock Price at Timeof Exercise (yen)Fair Unit Value Price on
Grant Date (yen)Date of Resolution

Exercise Price (yen)November 8, 2013

1

-

1,016

August 7, 2014

1

-

815

August 7, 2015

1

-

696

Method of estimating fair value per unit of stock options granted for the fiscal year ended March 31, 2024
Not applicable.

3.

Estimation method for number of vested stock options
As there are no vesting terms, all stock acquisition rights are vested when granted.
(Tax effect accounting)

1. Details of deferred tax assets and general deferred tax liabilities by major source
Previous consolidated
fiscal year
(March 31, 2023)(Millions of yen)
Current consolidated
fiscal year
(March 31, 2024)

Deferred tax assets
Tax loss carryforwards (Note) 1

2,090

1,611

Net defined benefit liability
Provision for bonuses

1,132
567

703
791

Provision for losses on construction contracts
Allowance for doubtful accounts

1,622
973

1,405
1,149

Other

2,144

2,455

8,530

8,116

(1,299)
(586)

(945)
(490)

Subtotal of valuation allowances(1,886)(1,435)

Total deferred tax assets
Deferred tax liabilities

6,643

6,681

(1,114)(446)(2,064)(551)

Subtotal of deferred tax assets
Valuation allowance related to net tax loss carryforwards (Note) 1.
Valuation allowance related to total future deductible amounts, etc.

Valuation difference on available-for-sale securities
Retained earnings of foreign consolidated subsidiaries

(405)

(697)

Total deferred tax liabilities

Other(1,966)(3,313)

Deferred tax assets net

4,677

3,367

(Notes) 1. Net tax loss carryforwards and deferred tax assets by carryforward period
Previous consolidated fiscal year (March 31, 2023)―32―

(Millions of yen)
Withinone year

Betweenone and
two years

Betweentwo and
three
years

Betweenthree and
four
years

Betweenfour andfive years

Over fiveyears

Net tax loss carryforwards (a)

77

47

101

97

250

1,515

2,090

Valuation allowance

(75)

(31)

(60)

(46)

(177)

(908)

(1,299)Deferred tax assets

2

16

41

50

73

606

790

Total

(a) Net tax loss carryforward is the amount multiplied by the statutory tax rate.
Current consolidated fiscal year (March 31, 2024)(Millions of yen)
Withinone year

Betweenone and
two years

Betweentwo and
three
years

Betweenthree and
four
years

Betweenfour andfive years

Over fiveyears

Net tax loss carryforwards (a)

65

48

56

174

138

1,128

1,611

Valuation allowance

(64)

(38)

(40)

(89)

(62)

(650)

(945)

Deferred tax assets

1

10

15

85

76

478

666

Total

(a) Net tax loss carryforward is the amount multiplied by the statutory tax rate.
2. Reconciliation between the statutory tax rate and the effective income tax rate after applying tax effect accounting, and main causesof said differences
Previous consolidated fiscal Current consolidated fiscal
year
year
(March 31, 2023)(March 31, 2024)
30.62%
30.62%

Effective statutory tax rate
(Adjustments)
Non-deductible entertainment expenses

0.54%

0.36%

Valuation allowances
Per capita inhabitant tax

1.84%
1.08%

(0.40)%
0.58%

0.73%
(10.07)%0.27%(8.11)%-%

2.53%

Net loss of consolidated subsidiaries
Effect of foreign tax rate differences
Income taxes for prior periods
Non-taxable gain on sales of non-current assets of foreignsubsidiaries
Other

-%

(3.65)%(0.63)%

0.92%

Income tax rate after application of tax effect accounting

24.11%

23.12%(Business combinations)
Business combination through acquisition
1. Overview of business combination(1) Name of acquired company and its business lines
Name of Acquired Company

Stampede Elevator Inc.

Business Lines

Maintenance, repair and modernization of elevators and escalators(2) Major reasons for business combination
The Company's M&A strategy as outlined in Vision24 Medium-Term Management Plan is to strengthen ourmaintenance business in mature markets. The Group has decided to increase our presence in Canada by acquiring
Stampede Elevator Inc., which operates a maintenance business in the Calgary area and is in good financial condition.
(3) Date of business combination
April, 1, 2023
(4) Legal form of business combination
Acquisition of shares for cash―33―

(5) Name of company after combination
No change.
(6) Percentage of voting rights acquired
100%(7) Main basis for deciding on the company for acquisition
The Company acquired the shares for cash through wholly owned subsidiary Fujitec Canada, Inc.
2. Period of the acquired company's results included in the consolidated financial statements
From April 1, 2023 to December 31, 2023
3. Acquisition cost of the acquired company and breakdown by type of consideration
Consideration for acquisition:

Cash

Total acquisition cost:

656 million yen
656 million yen

4. Description and amount of major acquisition-related expenses
Fees and commissions paid to advisory firms: 24 million yen
5. Amount of goodwill incurred, reason for goodwill, amortization method, and amortization period(1) Amount of goodwill incurred
626 million yen
The balance of goodwill is based on a provisional calculation since the Company have not completed identification ofidentifiable assets and liabilities as of the date of the business combination and the estimation of fair value, and theallocations of acquisition cost is not completed as of the end of the current consolidated fiscal year.
(2) Reason for goodwill
This is the excess earning power expected from future business development.
(3) Amortization method and amortization period
Straight-line amortization over 5 years
6. Amounts of assets acquired and liabilities assumed on the date of business combination and their breakdown(Millions of yen)
Current assets

126

Non-current assets

10

Total assets

137

Current liabilities

42

Non-current liabilities

0

Total liabilities

42

7. Estimated amount and calculation method of the effect of the business combination on the consolidated statements of income
for the current consolidated fiscal year if the business combination were to have been completed at the beginning of theconsolidated fiscal year
This information is not significant and is therefore omitted.
Finalization of provisional accounting treatment for business combinations
The business combination with Express Lifts Limited (currently Fujitec Express Limited) on September 20, 2022, subject toprovisional accounting treatment in the previous consolidated fiscal year, was finalized in the current consolidated fiscal year.
With the finalization of this provisional accounting treatment, the Group reflected a significant revision in the preliminary
allocation of acquisition costs, allocating 150 million yen to intangible assets and 39 million yen to deferred tax liabilities. As a―34―

result, the amount of goodwill calculated provisionally decreased 111 million yen from 1,496 million yen to 1,385 million yen.
Other under intangible assets and foreign currency translation adjustments increased 146 million yen and 0 million yen,respectively, while goodwill, other under investments and other assets, retained earnings, and non-controlling interests
decreased 108 million yen, 38 million yen, 0 million yen, and 0 million yen, respectively, as of the end of the previous
consolidated fiscal year.
(Revenue recognition)
1. Disaggregation of revenues arising from contracts with customers
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable Segments
Japan

East Asia

South Asia

The Americas

Total

and Europe

New Installations

25,18348,750

9,183

9,324

92,442Aftermarket

49,821

22,204

14,693

26,981

113,700

30

1,148

246

20

1,445

Revenues arising from contracts withcustomers

75,035

72,10324,12336,326

207,589

Sales to external customers

75,035

72,10324,12336,326

207,589

Other

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable Segments
Japan

East Asia

South Asia

The Americas

Total

and Europe

New Installations

31,41039,667

13,236

11,84496,158Aftermarket

54,122

25,462

17,35832,602

129,545

33

1,963

404

1,294

3,696

Revenues arising from contracts withcustomers

85,56567,09430,99945,741

229,401

Sales to external customers

85,56567,09430,99945,741

229,401

Other

2. Basic Information for Understanding Revenues(1) New Installations
The Company performs new construction of elevators, escalators, and other equipment, recognizing revenue over a specified
period of time based primarily on the percentage of completion measured as a ratio of actual costs incurred compared to total
construction costs. The Company takes this approach as the construction work in question creates assets that cannot be
converted to an alternative use and the contract has an enforceable right to receive consideration for the completed portion of
the work. Further, costs are incurred in accordance with the actual progress of the work, and the Company has determinedthat the degree of progress in satisfying performance obligations can be estimated reasonably based on inputs tied to costs
incurred. The Company's new installation contracts include free maintenance services to be performed for a certain period oftime after completion and delivery. The Company allocates the transaction price for such maintenance services as a separate
performance obligation and recognizes revenue over time. Arm's length sales prices are estimated based on various factors,
including market conditions and cost performance. Consideration for transactions is generally received within approximately
one year from of the satisfaction of performance obligations.

―35―

(2) Aftermarket
The Company provides maintenance, repair and modernization services for elevators, escalators and other equipment. For
maintenance work, the Company recognizes revenue over time, as the Company charge a fixed amount based on the durationof services rendered. For repair work, the Company recognizes revenue at the point in time in which work is completed. For
modernization projects, the Company recognizes revenue over a specified period of time based primarily on the percentage
of completion measured as a ratio of actual costs incurred compared to total construction costs. The Company takes thisapproach as the construction work in question creates assets that cannot be converted to an alternative use and the contract
has an enforceable right to receive consideration for the completed portion of the work. Further, costs are incurred inaccordance with the actual progress of the work, and the Company has determined that the degree of progress in satisfying
performance obligations can be estimated reasonably based on inputs tied to costs incurred. The Company's modernization
contracts include free maintenance services to be performed for a certain period of time after completion and delivery. The
Company allocates the transaction price for such maintenance services as a separate performance obligation and recognizes
revenue over time. Arm's length sales prices are estimated based on various factors, including market conditions and cost
performance. Consideration for transactions is generally received within approximately one year from of the satisfaction of
performance obligations.
(3) Other
The Company sells products primarily to foreign customers and recognizes revenue at a point in time in which delivery iscompleted.
3. Information for Understanding Revenue for the Current and Next Fiscal Years
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(1) Balance of contract assets, contract liabilities, etc.
(Millions of yen)Previous consolidated fiscal year
Beginning of period
Receivables arising from contracts
with customers

52,718End of period
59,128Contract assets

13,62916,416

Contract liabilities

22,69321,010Contract assets relate to the rights of the Company or subsidiaries to consideration for goods or services for which theCompany or subsidiaries have satisfied or partially satisfied performance obligations under new installation andmodernization contracts as of the balance sheet date, but for which invoices have yet to be issued. The Company or
subsidiaries reclassifies contract assets to accounts receivable when the rights to consideration become unconditional.
Consideration for new installation and modernization contracts is billed on a milestone basis. Some amounts may be received
prior to the satisfaction of performance obligations.
Contract liabilities represent unearned consideration received from customers in advance of the performance of contracts forgoods or services provided by the Company and consolidated subsidiaries. The liability is reversed as revenue is recognized
for the contracts related to said unearned consideration.
Of the beginning balance of contract liabilities, 15,074 million yen was recognized as revenue during the period.
(2) Transaction prices allocated to remaining performance obligations
The total transaction price allocated to the remaining performance obligations as of March 31, 2023 was 172,848 million yen.
The Company expects the remaining performance obligations to be satisfied generally within three years. The Company
applied the practical expedient method in the notes related to transaction prices allocated to remaining performanceobligations. The notes do not include contracts for fixed amounts based on service time rendered for services for whichrevenue is recognized in accordance with Paragraph 19 of Implementation Guidance on Accounting Standard for Revenue
Recognition.

―36―

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)(1) Balance of contract assets, contract liabilities, etc.
(Millions of yen)
Current consolidated fiscal year
Beginning of period
Receivables arising from contracts
with customers

End of period

59,92264,119Contract assets

16,41621,021

Contract liabilities

22,02520,999Contract assets relate to the rights of the Company or subsidiaries to consideration for goods or services for which theCompany or subsidiaries have satisfied or partially satisfied performance obligations under new installation andmodernization contracts as of the balance sheet date, but for which invoices have yet to be issued. The Company or
subsidiaries reclassifies contract assets to accounts receivable when the rights to consideration become unconditional.
Consideration for new installation and modernization contracts is billed on a milestone basis. Some amounts may be received
prior to the satisfaction of performance obligations.
Contract liabilities represent unearned consideration received from customers in advance of the performance of contracts forgoods or services provided by the Company and consolidated subsidiaries. The liability is reversed as revenue is recognized
for the contracts related to said unearned consideration.
Of the beginning balance of contract liabilities, 17,587 million yen was recognized as revenue during the period.
The material changes in contract assets for the current consolidated fiscal year are due mainly to the recognition of revenue
associated with the progress of construction and other activities.

(2) Transaction prices allocated to remaining performance obligations
The total transaction price allocated to the remaining performance obligations as of March 31, 2024 was 179,533 million yen.
The Company expects the remaining performance obligations to be satisfied generally within three years. The Company
applied the practical expedient method in the notes related to transaction prices allocated to remaining performanceobligations. The notes do not include contracts for fixed amounts based on service time rendered for services for whichrevenue is recognized in accordance with Paragraph 19 of Implementation Guidance on Accounting Standard for Revenue
Recognition.
(Segment and Other Information)[Segment Information]
1. Overview of reportable segments
The Fujitec Group’s reportable segments are units of the group whose financial information is available separately and arereviewed regularly by the Fujitec Co., Ltd. board of directors for determining the distribution of management resources and theevaluation of business performance.
The Fujitec Group is engaged mainly in the production, sales, installation, and maintenance of elevators, escalators, and otherproducts. Fujitec Co., Ltd. is in charge of businesses in Japan, while independent local subsidiaries are in charge of overseas
businesses in East Asia (China, Hong Kong, Taiwan, and South Korea), South Asia (mainly Singapore and India), and The
Americas and Europe (the United States, Canada, Argentina, Mexico, and the United Kingdom).
Accordingly, the Fujitec Group consists of regional segments based on an integrated system of production, sales, installation,and maintenance, representing four reportable segments: (1) Japan, (2) East Asia, (3) South Asia, and (4) The Americas andEurope.
Effective as of the current consolidated fiscal year, Elevadores EV International, S.A. de C.V. is included in the scope of
consolidation under The Americas and Europe due to its increased importance.
2. Method of calculating net sales, profit (loss), assets, liabilities, and other items of each reportable segment
The accounting treatment for each reportable segment is essentially the same as that described under Material basis for preparing
consolidated financial statements. Profit for each reportable segment reflects figures based on operating income.
Intersegment internal revenues and transfers are based on prevailing market prices.

―37―

Further, during the current consolidated fiscal year, the Company finalized the provisional accounting treatment for businesscombinations. The segment information disclosed for the previous consolidated fiscal year represents amounts subsequent toreflecting a significant revision of the allocation of acquisition costs after finalizing the provisional accounting treatment of theprevious consolidated fiscal year.
3. Information on net sales, profit (loss), assets, liabilities, and other items of each reportable segment
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)

Reportable Segments(Millions of yen)AmountRecorded on
Adjustments Consolidated(Note 1)
Financial
Statements(Note 2)

East Asia

South Asia

The Americas
and Europe

75,035

72,10324,12336,326

207,589-

207,589

2,471

10,8245

35

13,336(13,336)-

Total

77,50782,927

24,12836,361

220,925(13,336)

207,589

Segment income

2,111

4,486

3,543

1,525

11,667(48)

11,618Segment assets

94,584

106,178

35,65923,642260,065(29,967)

230,098

2,143

957

342

590

4,033

-

4,033

-

-

32

81

114

-

114

99

-

-

1,046

1,146

-

1,146

Japan

Total

Net sales
Sales to externalcustomers
Intersegment
sales/transfers

Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss

Increase in property,
plant and equipment and
2,703
178
851
793
4,527
4,527
intangible assets(Notes) 1 Adjustments are as follows:(1) Segment income adjustments of (48) million yen include eliminations of intersegment transactions of 6 million yen andinventory adjustments of (55) million yen.
(2) Segment asset adjustments of (29,967) million yen include eliminations of intersegment transactions of (29,766)
million yen and inventory adjustments of (201) million yen.
2 Segment income has been adjusted to operating income on the consolidated statements of income.
3 The increase in property, plant and equipment and intangible assets does not include an increase in amounts stemming fromnew consolidations.

―38―Current consolidated fiscal year (April 1, 2023 to March 31, 2024)

Reportable Segments(Millions of yen)AmountRecorded on
Adjustments Consolidated(Note 1)
Financial
Statements(Note 2)

East Asia

South Asia

The Americas
and Europe

85,56567,09430,99945,741

229,401-

229,401

2,506

12,284035

14,826(14,826)-

Total

88,072

79,37831,00045,776244,228(14,826)

229,401

Segment income

6,645

1,630

5,010

1,455

14,741(169)

14,571

Segment assets

106,211

107,063

42,37829,709285,362(28,960)

256,402

2,183

970

564

702

4,421

-

4,421

-

-

124

160

284

-

284

142

-

464

-

607

-

607

Japan

Total

Net sales
Sales to externalcustomers
Intersegment
sales/transfers

Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss

Increase in property,
plant and equipment and
2,737
297
498
585
4,120
4,120
intangible assets(Notes) 1 Adjustments are as follows:(1) Segment income adjustments of (169) million yen include eliminations of intersegment transactions of (0) million yen
and inventory adjustments of (169) million yen.
(2) Segment asset adjustments of (28,960) million yen include eliminations of intersegment transactions of (28,625)
million yen and inventory adjustments of (334) million yen.
2 Segment income has been adjusted to operating income on the consolidated statements of income.
3 The increase in property, plant and equipment and intangible assets does not include an increase in amounts stemming fromnew consolidations.
[Related Information]
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
1. Information by product and service
The main business of the Fujitec Group is the production, sales, installation, and maintenance of elevators, escalators, andelectric transport equipment. In the elevator and escalator market, the Group provides equipment from new installation tomaintenance as an integrated service. Information by product and service is omitted, as sales to external customers in therelated business exceed 90% of net sales in the consolidated statements of income.
2. Information by region(1) Net sales(Millions of yen)Japan
75,005

East Asia
71,053

South Asia

The Americas,
Europe and Others

24,37037,159

Total
207,589(Notes) 1. Net sales are classified into the country or region where the customer in question is located.
2. China accounts for 49,150 million yen of East Asia results.
3. The United States accounts for 25,177 million yen of the Americas, Europe and Others results.

―39―

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

East Asia

23,889(Note)South Asia

8,594

The Americas andEurope

3,691

2,330

Total
38,506China accounts for 4,964 million yen of East Asia results.

3. Information by major customer
This information is omitted as there are no external customers who accounted for over 10% of sales in the consolidated statements
of income.
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
1. Information by product and service
The main business of the Fujitec Group is the production, sales, installation, and maintenance of elevators, escalators, andelectric transport equipment. In the elevator and escalator market, the Group provides equipment from new installation tomaintenance as an integrated service. Information by product and service is omitted, as sales to external customers exceed
90% of net sales in the consolidated statements of income.
2. Information by region(1) Net sales(Millions of yen)Japan

East Asia

85,532South Asia

65,175The Americas,
Europe and Others

31,87546,818

Total
229,401(Notes) 1. Net sales are classified into the country or region where the customer in question is located.
2. China accounts for 41,020 million yen of East Asia results.
3. The United States accounts for 31,422 million yen of the Americas, Europe and Others results.

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

East Asia

24,382South Asia

8,484

The Americas andEurope

3,893

2,786

Total
39,547(Note) China accounts for 4,867 million yen of East Asia results.
3. Information by major customer
This information is omitted as there are no external customers who accounted for over 10% of sales in the consolidated statements ofincome.
[Information related to impairment of non-current assets by reportable segment]
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)Japan
Impairment
loss

The Americas Corporate andSouth Asia
and Europe Eliminations

East Asia
99

-

-

―40―

1,046

-

Total
1,146

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)(Millions of yen)Japan
Impairment
loss

East Asia

142

South Asia-

The Americas Corporate andand Europe Eliminations

464

-

Total

-

607

[Information on Amortization and Unamortized Balance of Goodwill per Reporting Segment]
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)Japan

East Asia

South Asia

The Americas Corporate andand Europe Eliminations

Total

Balance atthe end of the
1,353
149
1,503
previous
fiscal year
(Note) Information on amortization of goodwill is omitted as similar information is provided undersegment information.
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)(Millions of yen)Japan

East Asia

The Americas Corporate andSouth Asia
and Europe Eliminations

Total

Balance atthe end of the
854
1,355
2,210
current fiscal
year(Note) Information on amortization of goodwill is omitted as similar information is provided undersegment information.
Information on gain on negative goodwill by reporting segment
Previous consolidated fiscal year and current consolidated fiscal year
Not applicable.
[Related-Party Information]
1.

Related-party transactions(1) Transactions between the company submitting consolidated financial statements and related parties
Officers and major shareholders(restricted to individuals only.) of the company submitting consolidated financial statements
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.
Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
Not applicable.
(2) Transactions between the consolidatad subsidiaries of the company submitting consolidated financial statements and relatedparties
Previous consolidated fiscal year and current consolidated fiscal year
Not applicable.

2.

Notes on parent company or significant affiliates
Not applicable.

―41―

(Per-Share Information)(Yen)
Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Net assets per share

1,640.29

1,901.28

Net income per share

106.67228.55

Diluted net income per share

106.61228.44Item

Note 1. In calculating the number of shares of common stock and average number of shares of common stock during the periodused as a basis for the calculation per-share information, treasury shares deducted for said calculation include Fujitec Co.,
Ltd. stock (51,400 shares as of the end of the previous consolidated fiscal year; - shares as of the end of the current
consolidated fiscal year under review) held as a trust-type employee shareholding incentive plan (E-Ship). The average
number of Fujitec Co., Ltd. shares held in the trust was 124,154 shares in the previous consolidated fiscal year and 12,583
shares in the current consolidated fiscal year under review.
2. The basis for calculating net income per share and diluted net income per share is shown in the table below.
Previous consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

8,433

17,830

-

-

8,433

17,83079,06278,015(Millions of yen)--(Thousand shares)

38

38(Thousand shares)

(38)

(38)

-

-

3. The basis for calculating net assets per share is shown in the table below.
Previous consolidated fiscal year
Item
(April 1, 2022 to March 31, 2023)

Current consolidated fiscal year
(April 1, 2023 to March 31, 2024)

Item
Net income per share
Profit attributable to owners of parent(Millions of yen)Amounts not attributable to(Millions of yen)shareholders of common stock
Profit attributable to common stock(Millions of yen)owners of parent
Average number of outstanding(Thousand shares)
shares of common stock

Diluted net income per share
Adjustment of net income
attributable to owners of parent
Increase in number of common
stock(Stock acquisition rights included)

Outline of dilutive stock not included in calculation ofdiluted net income per share due to anti-dilutive effectTotal net assets(Millions of yen)

144,117

165,177

Amount deducted from total net assets(Millions of yen)

16,22016,819(Stock acquisition rights included)(Millions of yen)

(35)

(35)

(Non-controlling interests included)(Millions of yen)

(16,185)(16,783)(Millions of yen)

127,897

148,358(Thousand shares)

77,97278,030Net assets attributable to common
stock at the end of the fiscal year
Number of common stock at the endof the fiscal year used to calculate net
assets per share(Significant subsequent events)
Not applicable.

―42―e. [Consolidated Supplementary Schedules][Corporate Bond Schedule]
Not applicable.
[Schedule of Borrowings]
Beginning of period(Millions of yen)

End of period(Millions of yen)

Average interest rate
(%)

9,789

5,733

4.30

-

Current portion of long-term debt

6

-

-

-

Current portion of lease obligations

560

727

-

-

Long-term debt (excludes current portion)

13

128

3.34

January 2025

Lease obligations (excludes current portion)

1,515

1,759

-

August 2032

-

-

-

-

11,886

8,349

-

-

Classification
Short-term debt

Other interest-bearing debt
Total

Due date(Notes) 1. Average interest rate is the weighted average interest rate for the borrowings fiscal end of the period.
2. Average interest rate for lease obligations omitted, as lease obligations are recorded on the consolidated balance sheetsat the amount before deducting amounts equivalent to interest included in total lease payments.
3. Scheduled repayments for long-term debt and lease obligations (excluding current portion) for the five years following
the consolidated balance sheet date are as described below.
Between one and two Between two and three Between three and four Between four and five
Classification
years (Millions of yen) years (Millions of yen) years (Millions of yen) years (Millions of yen)
Long-term debt

128

-

-

-

Lease obligations

488

419

383

288

[Schedule of Asset Retirement Obligations]
Information is omitted pursuant to Article 92-2 of the Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements, as the amount of asset retirement obligations at the beginning and end of the current
consolidated fiscal year is less than 1/100 of the total liabilities and net assets at the beginning and end of the current
consolidated fiscal year.

(2) [Other]
Quarterly information for the current consolidated fiscal year:(Year-to-date)

1st quarter2nd quarter3rd quarter

Year end

Net sales(Millions of yen)

50,453

107,024

166,902229,401

Profit before income taxes(Millions of yen)

4,627

10,76919,371

23,916

Profit attributable to ownersof parent(Millions of yen)

3,546

7,722

15,681

17,830

(Yen)

45.48

99.01

201.02228.55

Net income per share(Fiscal year)
Net income per share

1st quarter(Yen)

2nd quarter

45.48

53.53

―43―

3rd quarter
102.00

4th quarter
27.54