Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 13, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

IWATSU ELECTRIC CO., LTD.
Tokyo Stock Exchange
6704
https://www.iwatsu.co.jp
Toru Nishido, President
Shogo Kimura, Director & Senior Executive Officer, General Manager of Management
Division
Telephone:+81-3-5370-5111
Scheduled date of annual general meeting of shareholders:June 24, 2022
Scheduled date to commence dividend payments:
June 27, 2022
Scheduled date to file annual securities report:
June 24, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021-March 31,
2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Revenue
Fiscal year ended
March 31, 2022
March 31, 2021

Millions of yen% Millions of yen

23,182
21,706

Note: Comprehensive income

6.8
(2.6)

Reference:% Millions of yen

501
(968)

Diluted earnings
per share

Yen

59.96
527.52

Profit attributable toowners of parent

Ordinary profit

–
–

590
(896)

For the fiscal year ended March 31, 2022 ¥772 million
For the fiscal year ended March 31, 2021 ¥5,499 million

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

Operating profit

Return on equity

Yen

–
–

% Millions of yen

%

595
5,233

(88.6)
8,993.6––[(86.0)%][-%]Ordinary profit/
total assets

Operating profit/
net sales

%

%

%

2.4
23.6

1.6
(2.8)

2.2
(4.5)

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2022¥-million
For the fiscal year ended March 31, 2021¥-million(2) Consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

36,441
36,11025,35924,971

69.6
69.2

2,551.64
2,516.42

Reference:

EquityAs of March 31, 2022
As of March 31, 2021

¥25,359 million¥24,971 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

1,318
(648)

(549)
(1,913)

(409)
(14)

5,755
5,364

2. Cash dividends
Annual dividends per share

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

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

Total cash
dividends(Total)Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

0.00

–

40.00

40.00

401

7.6

1.8

–

0.00

–

25.00

25.00

251

41.7

1.0

–

0.00

–

0.00

0.00

–

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023 (April 1, 2022March 31, 2023)
Revenue

Full year(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen

23,700

2.2

(400)

%

–

Millions of
yen

(350)

%

–

Millions of
yen

(350)

%

–

Yen

(35.22)

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(Note) For details, please refer to “Notes on Changes in Accounting Policies” on page 12.
(3) Number of issued shares (common shares)(i) Number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

10,080,344 shares

As of March 31, 2021

10,080,344 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

141,711 shares

As of March 31, 2021

157,111 shares(iii) Average number of shares during the period
Fiscal year ended March 31, 2022

9,934,209 sharesFiscal year ended March 31, 2021

9,920,723 shares[Reference] Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021-March 31,
2022)(1) Non-consolidated operating results
Revenue
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Millions of yen

17,064
16,525

Ordinary profit% Millions of yen

3.3
(8.7)

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

(Percentages indicate year-on-year changes.)% Millions of yen

81
(981)

–
–

Diluted earnings per
share

Yen

34.54
527.94

Profit

Yen

–
–

288
(830)

–
–

% Millions of yen

%

343
5,237

(93.4)–

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

34,06833,12722,26922,30065.4
67.3

2,240.71
2,247.29

EquityAs of March 31, 2022
As of March 31, 2021

¥22,269 million¥22,300 million* These financial statements are not subject to audit by a certified public accountant or an auditing firm.
* Explanation of appropriate use of earnings forecasts and other special notes
Forward-looking statements in this document, including earnings forecasts, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, andare not intended to be a guarantee that it will achieve these forecasts. Actual results may differ
significantly due to various factors. Please refer to “Overview of Operating Results, etc.” on page 2 of
the attached materials for assumptions, etc. underlying the earnings forecasts.

IWATSU ELECTRIC CO., LTD. (6704)

Attached Materials
Index
1. Overview of operating results, etc. ........................................................................................................... 2(1) Overview of operating results, etc. ..................................................................................................... 2(2) Future outlook .................................................................................................................................... 3
2. Basic approach to selection of accounting standards ................................................................................ 4
3. Consolidated financial statements and significant notes thereto............................................................... 5(1) Consolidated balance sheet ................................................................................................................ 5(2) Consolidated statements of income and comprehensive Income ....................................................... 7(Consolidated statement of income) ................................................................................................... 7(Consolidated statement of comprehensive income) .......................................................................... 8(3) Consolidated statements of changes in equity .................................................................................... 9(4) Consolidated statement of cash flows .............................................................................................. 11(5) Notes to consolidated financial statements ....................................................................................... 12
Notes on going concern assumption ................................................................................................. 12
Notes on changes in accounting policies .......................................................................................... 12
Segment information ........................................................................................................................ 12
Notes on per share information ........................................................................................................ 14
Notes on significant subsequent events ............................................................................................ 15-1-

IWATSU ELECTRIC CO., LTD. (6704)

1. Overview of operating results, etc.
(1) Overview of operating results, etc.
(i) Operating results
The Japanese economy during the fiscal year ended March 31, 2022 showed signs of gradual
recovery due to the uptake of vaccination against COVID-19, despite stagnation in economic
activities caused by the declaration of states of emergency and the implementation of priority
measures to prevent the spread of the virus. However, the outlook remains uncertain, as the impact
on corporate earnings caused by stagnation in production activities due to shortages in the supplyof semiconductors and other manufactured components, as well as increasing raw material prices,
has become apparent.
Under such circumstances, the Group has continued its business activities while continuing to takemeasures to prevent infection, and has focused on parts procurement activities and production
activities in order to recover revenue.
As a result, revenue for the fiscal year ended March 31, 2022 was ¥23,182 million, up 6.8% fromthe previous fiscal year. In terms of profits, operating profit was ¥501 million (compared to a lossof ¥968 million in the previous fiscal year), ordinary profit was ¥590 million (compared to a loss of¥896 million in the previous fiscal year) and profit attributable to owners of parent was ¥595
million (compared to profit of ¥5,233 million in the previous fiscal year).
The main reason for the ¥4,637 million deterioration in profit attributable to owners of parent
compared to the previous fiscal year, despite the ¥1,486 million improvement in ordinary profit,
was that in the previous fiscal year, a gain on sale of land of ¥8,333 million due to the sales of partof the land and buildings on the site of the Company’s headquarters was recorded as extraordinary
income, and the resulting income taxes-current of ¥161 million and income taxes-deferred of¥2,005 million were also recorded.
The following is a breakdown by segment.
Business communication systems
In the Business communication systems, overall revenue was ¥17,917 million, up 5.3% from theprevious fiscal year, due to an increase in revenue of the main product of business phones and contract
production revenue at the production subsidiary. Segment profit was ¥1,596 million (compared to profitof ¥877 million in the previous fiscal year) due to the increase in revenue.
Printing systems
In the Printing systems, there was a decrease in revenue of printing-related equipment, but an increase
in revenue of consumables resulted in overall revenue of ¥1,849 million, up 5.9% from the previous
fiscal year. Segment profit was ¥20 million (compared to loss of ¥269 million in the previous fiscal
year) due to the increase in revenue.
Test and measurement equipment
In the Test and measurement equipment, overall revenue was ¥2,953 million, up 15.7% from theprevious fiscal year, mainly due to an increase in revenue of power electronics-related products andelectronic components. Segment profit was ¥215 million (compared to loss of ¥114 million in theprevious fiscal year) due to the increase in revenue.
Property leasing
In the Property leasing, overall revenue was ¥460 million, up 16.3% from the previous fiscal year,
mainly due to an increase in revenue from income-producing properties. Segment profit was ¥103
million (compared to profit of ¥116 million in the previous fiscal year) due to one-time expenses suchas leasing costs.
(ii) Financial position
Total assets at the end of the fiscal year under review were ¥36,441 million, an increase of ¥331
million from the end of the previous fiscal year. Current assets were ¥17,232 million, up ¥937
million from the end of the previous fiscal year, mainly due to increases of ¥390 million in cash
-2-

IWATSU ELECTRIC CO., LTD. (6704)
and deposits, ¥198 million in electronically recorded monetary claims - operating, ¥268 million inmerchandise and finished goods and ¥647 million in raw materials and supplies, despite decreasesof ¥260 million in accounts receivable-trade and ¥287 million in other assets.
Non-current assets were ¥19,208 million, down ¥606 million from the end of the previous fiscal
year, due to decreases of ¥198 million in property, plant and equipment, ¥299 million in intangible
assets and ¥107 million in investments and other assets.
Total liabilities at the end of the fiscal year under review were ¥11,081 million, a decrease of ¥57
million from the end of the previous fiscal year.
Current liabilities were ¥4,275 million, up ¥21 million from the end of the previous fiscal year,
mainly due to an increase of ¥215 million in accounts payable-other, despite a decrease of ¥146
million in notes and accounts payable-trade.
Non-current liabilities were ¥6,805 million, down ¥79 million from the end of the previous fiscal
year, mainly due to a decrease of ¥69 million in retirement benefit liability.
Net assets at the end of the fiscal year under review were ¥25,359 million, an increase of ¥388
million from the end of the previous fiscal year, mainly due to an increase of ¥200 million inretained earnings, resulting from the recording of ¥396 million in dividends of surplus and ¥595
million in profit attributable to owners of parent, and an increase of ¥130 million in foreign
currency translation adjustment.
(iii) Cash flows
Cash and cash equivalents at the end of the fiscal year under review were ¥5,755 million, an
increase of ¥390 million from the previous fiscal year.
Cash flows from operating activities
Net cash provided by operating activities was ¥1,318 million, an increase of ¥1,967 million from theprevious fiscal year. This was mainly due to the recording of ¥652 million in profit before income taxes
and ¥1,081 million depreciation, and a decrease in trade receivables of ¥109 million.
Cash flows from investing activities
Net cash used in investing activities was ¥549 million, an increase of ¥1,364 million from the previous
fiscal year. This was mainly due to ¥526 million for the purchase of property, plant and equipment and¥202 million for the purchase of intangible assets.
Cash flows from financing activities
Net cash used in financing activities was ¥409 million, a decrease of ¥394 million from the previous
fiscal year. This was mainly due to dividends paid of ¥394 million.
(2) Future outlook
The Group has formulated a new four-year medium-term management plan, “REBORN,” with fiscal
2022 as the starting point for its own reforms, and will promote with unwavering resolve bold cost
structure reforms with no reservations, growth strategies that contribute to the realization of a carbonneutral society through energy conservation and efficiency improvements, and ESG management.
As for the future outlook, economic activities are expected to gradually pick up as the COVID-19
pandemic subsides due to the uptake of vaccinations and other factors. On the other hand, the impact on
production activities due to increasing raw material prices caused by the prolonging of the situation in
Ukraine and shortages in the procurement of manufacturing components, especially semiconductors, is
expected to continue, and there are concerns about the impact on business activities in fiscal 2022
onwards.
Under these circumstances, for the fiscal year ending March 31, 2023, although revenue is expected toincrease, revenue of ¥23,700 million, operating loss of ¥400 million, ordinary loss of ¥350 million andloss attributable to owners of parent of ¥350 million are expected due to a deterioration in the cost of
sales ratio caused by increasing raw material prices and one-time expenses aimed towards the future.
This will be a recorded loss for the purpose of structural reforms to complete the new medium-term-3-

IWATSU ELECTRIC CO., LTD. (6704)
management plan, “REBORN,” and the Group will make a concerted effort to enhance corporate value
through the new medium-term management plan.

2. Basic approach to selection of accounting standards
For the time being, the Group intends to prepare its consolidated financial statements in accordance withJapanese GAAP, taking into account the comparability of the consolidated financial statements between
periods and between companies.
With regard to the adoption of IFRS, the Group will take appropriate action after considering the situationin Japan and overseas.

-4-

IWATSU ELECTRIC CO., LTD. (6704)

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

5,536

5,927

485
380

514
578

Accounts receivable - trade
Merchandise and finished goods

4,815
1,464

4,555
1,732

Work in process
Raw materials and supplies

774
2,397

725
3,044

441
(0)

154
(0)

16,295

17,232

Buildings and structures, net
Machinery, equipment and vehicles, net

5,475
679

5,377
615

Tools, furniture and fixtures, net
Land

635
10,007562
10,032

3

15

16,802

16,603

Software
Other

1,210
45

911
45

Total intangible assets

1,256

956

Investments and other assets
Investment securities

Notes receivable - trade
Electronically recorded monetary claims - operating

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets

1,288

1,149

Other
Allowance for doubtful accounts

502
(35)

533
(34)

Total investments and other assets

1,756

1,648

19,815

19,20836,11036,441

Total non-current assets
Total assets-5-

IWATSU ELECTRIC CO., LTD. (6704)(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

1,911

1,764

Short-term borrowings
Accounts payable - other

80
717

75
933

Contract liabilities
Income taxes payable

359
171

375
95

Provision for bonuses
Provision for product warranties

516
62

520
65

Other

435

444

4,254

4,275

Deferred tax liabilities
Provision for share awards

3,240
58

3,226
56

Retirement benefit liability
Other

3,035
550

2,966
557

Total non-current liabilities

6,885

6,805

11,13911,081

Share capital
Capital surplus

6,025
6,948

6,025
6,948

Retained earnings
Treasury shares

11,776(147)

11,977(135)

Total shareholders’ equity

24,60324,815

268

304

(130)
229

0
239

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-6-

367

544

24,971

25,35936,11036,441IWATSU ELECTRIC CO., LTD. (6704)(2) Consolidated statements of income and comprehensive Income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Revenue
Cost of sales

21,706
14,75723,182
15,217Gross profit

6,948

7,964

Selling, general and administrative expenses

7,917

7,463

Operating profit (loss)

(968)

501

Interest income
Dividend income

6
40

5
42

Gain on investments in capital
Rental income from land and buildings

–
38

20
36

Other

47

29

Total non-operating income

132

135

Interest expenses
Sales discounts

2
7

2
–

Foreign exchange losses
Loss on retirement of non-current assets

25
14

15
21

Other

9

6

Non-operating income

Non-operating expenses

Total non-operating expenses

60

45

(896)

590

8,333
3

–
87

Subsidy income
Insurance claim income

205
24

102
–

Total extraordinary income

8,567

189

Ordinary profit (loss)
Extraordinary income
Gain on sale of land
Gain on sale of investment securities

Extraordinary losses
Loss on sale of buildings

55–

Loss on retirement of non-current assets
Loss on valuation of investment securities

172
3

–
112

Loss on disaster

40

15

271

127

Profit before income taxes

Total extraordinary losses

7,399

652

Income taxes - current
Income taxes - deferred

161
2,005

105
(48)

Total income taxes

2,166

56

Profit5,233

595

Profit attributable to owners of parent

5,233

595

-7-

IWATSU ELECTRIC CO., LTD. (6704)(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2021
ProfitFiscal year ended
March 31, 2022

5,233

595

Other comprehensive income
Valuation difference on available-for-sale securities

179

35

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

19
67

130
10

Total other comprehensive income

266

176

Comprehensive income

5,499

772

Comprehensive income attributable to
Owners of parent

5,499

772

-8-

IWATSU ELECTRIC CO., LTD. (6704)(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodChanges during period
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

Share capital

Capital surplus

6,025

6,948

Retained earnings
6,543

Treasury shares
(153)

5,233

Total shareholders’equity19,363

5,233
(0)

(0)

6

6

–

–

5,233

6

5,239

6,025

6,948

11,776(147)

24,603

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of
periodChanges during period
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

89

Foreign currencytranslation
adjustment(149)

Remeasurementsof defined benefit
plans
161

Total
accumulated
othercomprehensive
income101

Total net assets

19,465

5,233
(0)
6
179

19

67

266

266

179

19

67

266

5,505

268

(130)

229

367

24,971-9-

IWATSU ELECTRIC CO., LTD. (6704)
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

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

Share capital

Capital surplus

6,025

6,948

Retained earnings
11,776

Treasury shares
(147)

1
6,025

6,948

11,778

Total shareholders’equity24,603
1(147)

24,604

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

595

595

(396)

(396)
(0)

(0)

12

12

–

–

198

11

210

6,025

6,948

11,977(135)

24,815

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance268

Foreign currencytranslation
adjustment(130)

Remeasurementsof defined benefit
plans
229

Total
accumulated
othercomprehensive
income367

Total net assets

24,971
1

268

(130)

229

367

24,972

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

595
(396)
(0)
12
35

130

10

176

176

35

130

10

176

387

304

0

239

544

25,359- 10 -IWATSU ELECTRIC CO., LTD. (6704)(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

7,399
734

652
1,081

Interest and dividend income
Interest expenses

(46)
2

(48)
2

Decrease (increase) in trade receivables
Decrease (increase) in inventories

459
(368)

109
(852)

Increase (decrease) in trade payables
Other, net

567(9,677)

(168)
591

(928)

1,368

Interest and dividends received
Interest paid

46
(2)

48
(2)

Income taxes paid
Other, net

27
207

(195)
99

Net cash provided by (used in) operating activities

(648)

1,318

Cash flows from investing activities
Purchase of property, plant and equipment(9,413)(526)

Purchase of intangible assets
Proceeds from sale of investment securities

(740)
6

(202)
173

Payments into time deposits
Proceeds from withdrawal of time deposits

(120)
120

(120)
120

Other, net

8,233

5

Net cash provided by (used in) investing activities(1,913)(549)

Dividends paid
Other, net

(0)
(14)

(394)
(15)

Net cash provided by (used in) financing activities

(14)

(409)

(2)

30

Subtotal

Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(2,579)390

Cash and cash equivalents at beginning of period

7,944

5,364

Cash and cash equivalents at end of period

5,364

5,755

- 11 -IWATSU ELECTRIC CO., LTD. (6704)(5) Notes to consolidated financial statements
Notes on going concern assumption
Not applicable.
Notes on changes in accounting policies
a. Application of Accounting Standard for Revenue Recognition, etc.
The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020) and other standards from the beginning of the current fiscal year, and has recognizedrevenue at the amount expected to be received in exchange for the promised goods or services at thetime that control of the promised goods or services is transferred to the customer. As a result, theCompany does not recognize the depletion of supplied raw materials and other items for paid-intransactions in which the Company has an obligation to repurchase the supplied goods. In addition,
sales discounts that were previously recorded as non-operating expenses are now deducted fromrevenue.
In accordance with the transitional handling prescribed in the proviso to Paragraph 84 of the
Accounting Standard for Revenue Recognition, the amount of the cumulative effect of retrospective
application of the new accounting policy prior to the beginning of the current fiscal year has been
added to or deducted from retained earnings at the beginning of the current fiscal year, and the new
accounting policy has been applied from the balance at the beginning of the current fiscal year.
“Notes and accounts receivable-trade,” which was presented in current assets in the consolidatedbalance sheet for the previous fiscal year, is included in “Notes receivable-trade,” “Electronicallyrecorded monetary claims - operating” and “Accounts receivable-trade” in the current fiscal year, and“Other,” which was presented in current liabilities, is included in “Contract liabilities” and “Other” inthe current fiscal year (“Electronically recorded monetary claims - operating” is presented due to its
increased materiality.). In addition, “Net sales” in the consolidated statement of income has beenrenamed “Revenue” in the current fiscal year. The consolidated financial statement for the previous
fiscal year has been rearranged to reflect this change in presentation.
The effect of this change on the consolidated balance sheet, consolidated statement of income and pershare information for the current fiscal year is negligible. The beginning balance of retained earnings in
the consolidated statements of changes in equity increased by ¥1 million due to the cumulative effectreflected in the net assets at the beginning of the current fiscal year.
b. Application of Accounting Standard for Fair Value Measurement, etc.
The Company adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30,
July 4, 2019) and other standards from the beginning of the current fiscal year, and in accordance withthe transitional handling prescribed in Article 19 of the Accounting Standard for Fair Value
Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019), the Company has decided to apply the new accounting policy
prospectively. As a result, there is no effect on the consolidated financial statements for the current
fiscal year.
Segment information
a. Reportable segments
1. Method of determining reportable segments
Reportable segments of the Company are determined as segments which separate financial
information is accessible from among the constituent units of the Company and are subject toperiodic examinations to enable the Company’s Board of Directors to decide how to allocate
management resources and assess performance.
The Company has business divisions or business subsidiaries for each product or service,formulates comprehensive strategies for products and services that they handle in domestic andoverseas, and conducts business activities.

- 12 -IWATSU ELECTRIC CO., LTD. (6704)
Accordingly, the Company consists of segments based on product and service, and are divided
into four reportable segments: “Business communication systems,” “Printing systems,” “Testand measurement equipment,” and “Property leasing.”
2. Types of products and services that belong to each reportable segment“Business communication systems” manufactures and sells communication equipment.
“Printing systems” manufactures and sells printing and plate-making equipment. “Test andmeasurement equipment” manufactures and sells electronic measurement equipment. “Property
leasing” engages in the leasing, etc. of real estate.
b. Method for calculating revenue, profit or loss, assets, liabilities and other items by reportablesegment
The accounting methods for the reportable segments are, in general, the same as those used toprepare consolidated financial statements.
c. Information on revenue, profit or loss, assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segment

Revenue
Revenues from externalcustomers
Transactions with othersegments
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Increase in property, plant andequipment and intangible assets

Business
communicat
ion systems

Printing
systems

Test andmeasurement equipment

Property
leasing

Adjustment

Carrying
amount17,011

1,746

2,552

396

–

21,706

–

–

–

–

–

–

17,011

1,746

2,552

396

–

21,706

877

(269)

(114)

116

(1,578)(968)

14,221

1,344

2,061

12,7405,742

36,110

450

52

66

77

86

734

1,094

32

70

8,802

211

10,211

Notes: 1. Adjustments made are as follows:(1) Adjustments of ¥(1,578) million in segment profit (loss) include ¥(1,578) million in corporate expenses notallocated to reportable segments. Corporate expenses are mainly general administrative expenses that are not
attributable to reportable segments.
(2) Adjustments of ¥5,742 million in segment assets include ¥5,742 million in corporate assets not allocated toreportable segments. Corporate assets are mainly surplus funds that are not attributable to reportable segments.
(3) Adjustments of ¥211 million in increase in property, plant and equipment and intangible assets are capital
investments for headquarter departments.
2. Segment profit (loss) is adjusted with operating profit (loss) in the consolidated statement of income.

- 13 -IWATSU ELECTRIC CO., LTD. (6704)
Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment

Revenue
Revenues from externalcustomers
Transactions with othersegments

Business
communicat
ion systems

Printing
systems

Test andmeasurement equipment

Property
leasing

Adjustment

Carrying
amount17,917

1,849

2,953

460

–

23,182

–

–

–

–

–

–

Total

17,917

1,849

2,953

460

–

23,182

Segment profit (loss)

1,596

20

215

103

(1,434)

501

Segment assets

13,985

1,418

2,163

12,651

6,222

36,441

722

46

68

155

87

1,081

287

28

41

31

183

572

Other items
Depreciation
Increase in property, plant andequipment and intangible assets

Notes: 1. Adjustments made are as follows:(1) Adjustments of ¥(1,434) million in segment profit (loss) include ¥(1,434) million in corporate expenses notallocated to reportable segments. Corporate expenses are mainly general administrative expenses that are not
attributable to reportable segments.
(2) Adjustments of ¥6,222 million in segment assets include ¥6,222 million in corporate assets not allocated toreportable segments. Corporate assets are mainly surplus funds that are not attributable to reportable segments.
(3) Adjustments of ¥183 million in increase in property, plant and equipment and intangible assets are capital
investments for headquarter departments.
2. Segment profit (loss) is adjusted with operating profit (loss) in the consolidated statement of income.

Notes on per share information
a. Net assets per share
(Yen)
Item

As of March 31, 2021

As of March 31, 2022

Net assets per share

2,516.42

2,551.64

Note: The Company’s own shares that remain in the stock-granting ESOP trust and are recorded as treasury shares inshareholders’ equity are included in the number of treasury shares deducted from the total number of issued
shares at the end of the fiscal year for the purpose of calculating net assets per share. The number of treasury
shares at the end of the fiscal year was 120,100 shares for the previous fiscal year and 103,900 shares for thecurrent fiscal year.

- 14 -IWATSU ELECTRIC CO., LTD. (6704)
b. Basic earnings per share
As of March 31, 2021

As of March 31, 2022

Item
Basic earnings per share (Yen)

527.52

59.96(Basis of calculation)
Profit attributable to owners ofparent (Millions of yen)

5,233

595

–

–

Profit attributable to owners ofparent related to common shares(Millions of yen)

5,233

595

Average number of commonshares during the period (Shares)

9,920,723

9,934,209

Amount not attributable tocommon shareholders (Millions ofyen)

Notes: 1. Diluted earnings per share is not presented because there are no potential shares.
2. The Company’s own shares that remain in the stock-granting ESOP trust and are recorded as treasury sharesin shareholders’ equity are included in the treasury shares deducted in the calculation of the average numberof shares during the fiscal year for the purpose of calculating basic earnings per share. The average numberof treasury shares during the fiscal year was 122,800 shares for the previous fiscal year and 108,650 sharesfor the current fiscal year.

Notes on significant subsequent events
Not applicable.

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