Creating Corporate Value Report 2020
Financial Section
Year ended March 31, 2020

Refreshing the Air

Management’s Discussion and Analysis

Group Outline

22.9% year on year) thanks to foreign exchange gain on non-

The S.T. CORPORATION Group is composed of S.T.

operating income. Profit attributable to owners of parent was 2,261

CORPORATION, seven consolidated subsidiaries, three equity

million yen (up 25.4% year on year).
Accordingly, net income per share was 102.19 yen, up from themethod affiliated companies and other affiliated companies.

previous year’s figure of 81.66 yen. The ratio of net income to sales
increased from 3.8% to 4.8%, and ROE rose from 6.3% to 7.8%.

Sales Overview
Under brand value management, the S.T. Group worked on 5 main

Regarding the impact of the novel coronavirus pandemic in the

points, “Further deepening mainstay brand,” “Exploring new fields/

current year, there were no major impacts on production including

new markets,” “Undertaking overseas business structural reform,”

procurement of raw materials, and the impacts of self-quarantine on“Constructing a foundation for growth of the thermal care business,”sales were limited because most of our products are householdand “Creating a structure for growth.”

consumer goods.

As a result, sales of the current year stood at 47,546 million yen,down 0.5% year on year, as the sales of Thermal Care (Disposable

Financial Position

Warmers) decreased due to the significant impact of record-breaking

Total assets as of March 31, 2020 stood at 43,276 million yen, up

warm winter on market although the sales performance of Air Care

1,300 million yen from the end of the previous year. Major reasons for(Deodorizers and Air Fresheners) and Humidity Care (Dehumidifiers)

the increase are a decline of cash and time deposits of 915 million

remained strong. As for the sales of each category, Air Care saw ayen, an increase of notes and accounts receivable of 516 million yen,

1.3% year-on-year growth, Cloth Care 1.7%, and Humidity Carean increase of merchandise and finished goods of 1,056 million yen,

10.6%, while Thermal Care saw a 16.0% year-on-year drop, Hand

an increase of goodwill of 1,361 million yen, and a decline ofCare 0.3%, and Home Care 3.6%.

investment securities of 710 million yen.

As for profits, gross profit increased thanks to an increase in sales

Liabilities were 13,140 million yen, up 387 million yen from the end

volume of high-value-added products, cost reductions in our mainstayof the previous year, mainly because of an increase of income taxes

categories, and the effect of cost reductions through production

payable of 332 million yen, an increase of consumption taxes payable

efficiency improvements associated with the operation of the Tochigi

of 267 million yen, and a decline in electronically recorded obligations-

Plant. Consequently, operating income was 3,374 million yen (upnon-operating of 318 million yen.
Net assets were 30,136 million yen, up 913 million yen from the end

18.9% year on year). Ordinary income was 3,344 million yen (upOperating income /Operating income margin
Operating income (Millions of yen)

6.2

7.1

4.0

5.9

4.8

5.0
3.8

1,804

2,261

2,410
1,817
912

3,481

2.0

2,854

2,342

47,54647,782

48,62745,958

Profit attributable to owners of parent (Millions of yen)
Return on sales (%)

Operating income margin (%)

7.2

5.2

44,661

Profit attributable to owners of parent /Return on sales

3,374(Millions of yen)

2,839

Net sales

16

1

17

18

19

20

16

17

18

19

20

16

17

18

19

20

Notes: 1. ‌As a result of new accounting standards being applied effective from the fiscal year ended March 31, 2017, the figures for fiscal years 2016, 2017, 2018, 2019 and 2020 reflect those changes.
2. ‌As a result of new accounting standards being applied effective from the fiscal year ended March 31, 2019, the figures for fiscal years 2018, 2019 and 2020 reflect those changes. The figures for fiscal years 2016 and 2017 areas originally presented without retroactive application.

2,041 million yen for payment for transfer of business.

of the previous year. This is mostly because retained earnings

Net cash used in financing activities was 885 million yen (in theincreased 1,448 million yen and unrealized holding gain on othersame period of the previous fiscal year, net cash used in financing

securities, net of taxes decreased 505 million yen.

activities was 628 million yen). This is mainly because of the payment

Consequently, net assets per share increased from 1,295.38 yen atof dividends of 804 million yen.

the end of the previous year to 1,337.42 yen. Equity was 29,627

As a result, the balance of cash and cash equivalents at the end of

million yen, and equity ratio increased to 68.5%, up 0.3 points fromthe current year was 10,122 million yen, down 949 million yen fromthe end of the previous year.

the end of the previous year.
Capital Expenditures and Depreciation and Amortization
Capital expenditures increased from 3,060 million yen in the previous

Dividends and Return to Shareholders

year to 3,137 million yen in the current year. Depreciation andTaking into consideration such factors as net income and the need toamortization increased from 1,109 million yen in the previous year torealize shareholder returns, the company decided to distribute a

1,487 million yen in the current year.

term-end dividend of 18.0 yen (36.0 yen for the full year, including theinterim dividend, with a consolidated payout ratio being 35.2%). The

Cash Flows

company will continue to place importance on returns to

Net cash provided by operating activities was 3,638 million yen (in theshareholders.

same period of the previous fiscal year, net cash provided byoperating activities was 2,186 million yen). The main components ofBusiness and Operational Risks

the inflow were profit before income taxes of 3,289 million yen andBusiness and operational risks include: (1) intensifying competitive

depreciation and amortization of 1,390 million yen. The main

environment; (2) impacts of new business and capital and businesscomponents of the outflow were an increase in inventory of 875

alliance; (3) overseas business activities; (4) an escalation in raw

million yen and income taxes paid of 748 million yen.

materials prices; (5) situation of business partners, (6) sales

Net cash used in investing activities was 3,685 million yen (in theuncertainties due to climate change (unseasonal weather), (7) fairsame period of the previous fiscal year, net cash used in investment

business practices, (8) customer support, (9) fluctuations of stock

activities was 2,305 million yen). The main expenditures were 1,401

prices, (10) risks of information management and systems, (11)million yen for the purchase of property, plant and equipment andmaterial litigation risks, and (12) the impact from natural disasters.

Dividends per share /Payout ratio

ROA / ROE

1,487

1,109

4.1

5.3

4.3

44.1

35.2
36.0

6.3

31.0

6.0

28.3

Payout ratio (%)

28.7

22.0

3,137

3,060

52.4
7.8

7.6

1,822

Dividends per share (Yen)

2.7

608

970

ROE (%)

9.0

5.0

997

1,128

1,758

ROA (%)

36.0

Capital expenditures (Millions of yen)
Depreciation and amortization (Millions of yen)

24.0

Capital expenditures /Depreciation and amortization

16

17

18

19

20

16

17

18

19

20

16

17

18

19

20

2

Consolidated Balance Sheets
S.T.CORPORATION and Consolidated Subsidiaries
March 31, 2020 and 2019

Thousands of
U.S. dollars (Note 2)

Millions of yen

Assets

2020

2019

2020

Cash and time deposits (Notes 7, 11 and 18)¥10,159¥11,074$93,351

Trade notes and accounts receivable (Note 7)

5,797

5,281

53,263Merchandise and finished goods

5,902

4,846

54,235

237

242

2,176

1,046

800

9,613

511

560

4,693

(5)

(4)

(42)

23,647

22,799217,288

Land (Note 10)

3,319

3,411

30,497

Buildings and structures

8,819

9,314

81,036

Machinery, equipment and vehicles

8,443

7,583

77,583Tools, furniture and fixtures

4,078

3,896

37,472

Construction in progress

80

190

739

Leased assets (Note 19)

730

753

6,710

(14,670)(14,350)(134,800)

10,80010,797

99,236

1,361—

12,504

335

221

3,079

1,696

221

15,583

444

447

4,077

5,895

6,602

54,171Long-term loans

5

8

50

Net defined benefit asset (Notes 1 and 14)

9

8

81

Deferred tax assets other than unrealized revaluation loss on land (Note 12)

119

61

1,090

Other assets

660

1,034

6,069

7,132

8,159

65,538¥43,276¥41,976$397,645

Current assets:

Work in process
Raw materials and supplies
Other current assets
Less - allowance for doubtful accounts
Total current assets

Property, plant and equipment, at cost:Less - accumulated depreciation
Property, plant and equipment, net

Intangible assets, net of accumulated amortization
Goodwill
Other intangible assets
Total intangible assets

Investments and other assets:
Investments in non-consolidated subsidiaries and affiliates
Investment securities (Notes 7 and 9)

Total investments and other assets
Total assets3Thousands of
U.S. dollars (Note 2)

Millions of yen

Liabilities and net assets

2020

2019

2020

¥2,592¥2,459$23,820

2,615

2,752

24,026

736

519

6,765

Current liabilities:
Trade payables (Note 7)
Electronically recorded obligations-operating (Note 7)
Short-term loans payable
Lease obligations
Other payables (Note 7)
Accrued expenses

76

200

694

2,978

2,939

27,367

763

618

7,007

Electronically recorded obligations-non-operating

32

349

290

Income taxes payable

669

337

6,144

Consumption taxes payable

277

11

2,547

Allowance for sales returns

118

106

1,085

Other current liabilities

95

55

877

10,951

10,344

100,621

Total current liabilities
Long-term liabilities:
Lease obligations

92

95

844

Provision for directors’ retirement and severance benefits

115

115

1,054

Provision for executive officers’ incentive plan (Note 5)

76

74

703
12,124

1,319

1,265

Deferred tax liabilities (Note 12)

Net defined benefit liability (Notes 1 and 14)

315

544

2,899

Deferred tax liabilities - unrealized revaluation gain on land (Note 10)

262

262

2,409

Other non-current liabilities
Total long-term liabilities

9

53

84

2,189

2,408

20,116

Net assets (Note 15):
Shareholders’ equity:
Common stock:
Authorized - 96,817,000 shares in 2020 and 2019
7,066

7,066

64,922

Capital surplus

Issued and outstanding - 23,000,000 shares in 2020 and 2019

7,068

7,068

64,944140,308

Retained earnings

15,27013,822

Treasury stock, at cost

(1,108)(1,163)(10,180)

Total shareholders’ equity

28,295

26,792259,994

Unrealized holding gain on other securities, net of taxes

2,228

2,733

20,475

Unrealized revaluation loss on land, net of taxes (Note 10)

(537)

(537)

(4,936)

Translation adjustments

(342)

(329)

(3,141)Remeasurements of defined benefit plans

(18)

(15)

(161)

1,332

1,852

12,237

Accumulated other comprehensive income (loss):

Total accumulated other comprehensive income (loss)
Subscription rights

10

14

91

Non-controlling interests

499

565

4,587

Total net assets

30,13629,223276,907¥43,276¥41,976$397,645

Total liabilities and net assets
See notes to consolidated financial statements.

4Consolidated Statements of Income
S.T.CORPORATION and Consolidated Subsidiaries
For the Years Ended March 31, 2020 and 2019

Thousands of
U.S. dollars (Note 2)

Millions of yen

Net sales
Cost of sales (Notes 17 and 22)
Gross profit before reversal of allowance for sales returns
Allowance for sales returns
Reversal of allowance for sales returns
Gross profit
Selling, general and administrative expenses (Note 17)
Operating income
Non-operating income (expenses):
Interest and dividends received
Interest expense
Purchase discounts
Sales discounts
Share of profit of entities accounted for using equity method
Other, net
Total non-operating income (expenses)
Ordinary income
Special gains (losses), net:
Loss on disposition of property, plant and equipment, net
Impairment loss (Note 23)
Loss on valuation of investment securities
Gain (loss) on sales of investment securities, net
Total special gains (losses), net
Profit before income taxes
Income taxes (Note 12):Current
Deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

2020

2019

2020

¥47,546
27,052
20,494118
106
20,482
17,1073,374¥47,782
28,217
19,566106
127
19,587
16,7482,839$436,881
248,571
188,310
1,085
975
188,200
157,193
31,007

117
(16)
138
(488)
9
210
(30)
3,344

114
(7)
145
(489)
14
106
(117)
2,722

1,073
(145)
1,271
(4,488)
87
1,927
(276)
30,731

(25)
(30)
(1)
—
(55)
3,289

(22)
(0)
—
10
(12)
2,710

(225)
(272)
(9)
—
(506)
30,226

1,070
(85)
985
2,304
43
¥2,261

840
53
893
1,816
13
¥1,804

9,833
(781)
9,052
21,173396$20,778

See notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income
S.T.CORPORATION and Consolidated Subsidiaries
For the Years Ended March 31, 2020 and 2019
Thousands of
U.S. dollars (Note 2)

Millions of yen

2020

2020

Profit¥2,304¥1,816$21,173

Other comprehensive income (Note 6)
Unrealized holding gain on other securities, net of taxes
Translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income (loss) of entities accounted for using equity method
Total other comprehensive income
Comprehensive income

(505)
(8)
(3)
(6)
(521)
¥1,783

(702)
(74)
7
(23)
(792)
¥1,024(4,639)
(71)
(24)
(58)
(4,792)$16,382

1,741
42

1,039
(14)

15,993389

Total comprehensive income attributable to:
Owners of parent
Non-controlling interests
See notes to consolidated financial statements.

5

2019

Consolidated Statements of Changes in Net Assets
S.T.CORPORATION and Consolidated Subsidiaries
For the Years Ended March 31, 2020 and 2019

Millions of yen
Number of sharesof common stock(Thousands)

Balance at April 1, 2019
Cash dividends paid by distribution of retained earnings
Profit attributable to owners of parent
Purchases of treasury stock
Disposal of treasury stock
Net changes in items other than those in shareholders’ equity
Balance at March 31, 2020

23,00023,000Commonstock

CapitalsurplusRetainedearnings¥ 7,066¥ 7,068¥ 13,822
(804)
2,261

¥ 7,066¥ 7,068

Treasury stock,at cost¥ (1,163)

Total
shareholders’equity

(9)

(0)
56

¥ 26,792
(804)
2,261
(0)
46

¥ 15,270¥ (1,108)¥ 28,295

Subscription
rightsNon-controllinginterests

Total net
assetsMillions of yen
Unrealized
Unrealized
holding gain on revaluation loss onother securities, land, net of taxes
net of taxes(Note 10)

Balance at April 1, 2019
Cash dividends paid by distribution of retained earnings
Profit attributable to owners of parent
Purchases of treasury stock
Disposal of treasury stock
Net changes in items other than those in shareholders’ equity
Balance at March 31, 2020

Translation
adjustments

Remeasurements Total accumulatedof
other
defined benefit comprehensive
plansincome¥ 2,733¥ (537)¥ (329)¥ (15)¥ 1,852

¥ 14

¥ 565

(505)
¥ 2,228¥ (537)(13)¥ (342)(3)¥ (18)(521)¥ 1,332

(4)
¥ 10

(66)
¥ 499

¥ 29,223
(804)
2,261
(0)
46
(591)
¥ 30,136

Treasury stock,at costTotal
shareholders’equityMillions of yen
Number of sharesof common stock(Thousands)

23,000

Balance at April 1, 2018
Cash dividends paid by distribution of retained earnings
Profit attributable to owners of parent
Purchases of treasury stock
Disposal of treasury stock
Net changes in items other than those in shareholders’ equity
Balance at March 31, 2019

Commonstock

CapitalsurplusRetainedearnings¥ 7,066¥ 7,068¥ 12,830
(802)
1,804

23,000¥ 7,066¥ 7,068

Translation
adjustments

Remeasurements Total accumulatedof
other
defined benefit
comprehensive
plansincome¥ (1,230)

(10)

(1)
67

¥ 25,734
(802)
1,804
(1)
58

¥ 13,822¥ (1,163)¥ 26,792

Millions of yen
Unrealized
Unrealized
holding gain on revaluation loss onother securities, land, net of taxes
net of taxes(Note 10)

Balance at April 1, 2018
Cash dividends paid by distribution of retained earnings
Profit attributable to owners of parent
Purchases of treasury stock
Disposal of treasury stock
Net changes in items other than those in shareholders’ equity
Balance at March 31, 2019

Subscription
rightsNon-controllinginterests¥ 3,440¥ (537)¥ (264)¥ (22)¥ 2,617

¥ 19

¥ 652

(707)
¥ 2,733¥ (537)(65)¥ (329)7¥ (15)(765)¥ 1,852

(5)
¥ 14

(86)
¥ 565

¥ 29,022
(802)
1,804
(1)
58
(856)
¥ 29,223

Total net
assetsTotalshareholders’equityThousands of U.S. dollars (Note 2)
Number of sharesof common stock(Thousands)

Balance at April 1, 2019
Cash dividends paid by distribution of retained earnings
Profit attributable to owners of parent
Purchases of treasury stock
Disposal of treasury stock
Net changes in items other than those in shareholders’ equity
Balance at March 31, 2020

23,000Commonstock

CapitalsurplusRetainedearnings

Treasury stock,at cost$ 64,922$ 64,944$ 127,001(7,385)
20,778$ (10,690)

23,000$ 64,922$ 64,944

Translation
adjustments

Remeasurements Total accumulatedof
other
defined benefit
comprehensive
plansincome

(86)

(3)
512

$ 246,178(7,385)
20,778(3)426$ 140,308$ (10,180)$ 259,994

Subscription
rightsNon-controllinginterests

Total net
assets$ 268,522(7,385)
20,778(3)426(5,431)$ 276,907

Thousands of U.S. dollars (Note 2)
Unrealized
Unrealized
holding gain on revaluation loss onother securities, land, net of taxes
net of taxes(Note 10)

Balance at April 1, 2019
Cash dividends paid by distribution of retained earnings
Profit attributable to owners of parent
Purchases of treasury stock
Disposal of treasury stock
Net changes in items other than those in shareholders’ equity
Balance at March 31, 2020

$ 25,115$ (4,936)$ (3,020)$ (137)$ 17,021$ 130$ 5,194(4,640)$ 20,475$ (4,936)(120)$ (3,141)(24)$ (161)(4,785)$ 12,237

(39)
$ 91

(607)
$ 4,587

See notes to consolidated financial statements.

6

Consolidated Statements of Cash Flows
S.T.CORPORATION and Consolidated Subsidiaries
For the Years Ended March 31, 2020 and 2019

Thousands of
U.S. dollars (Note 2)

Millions of yen

Cash flows from operating activities:
Profit before income taxes
Adjustments to reconcile profit before income taxes to net cash
provided by operating activities:
Depreciation and amortization
Amortization of goodwill
Impairment loss
Loss on sales of property, plant and equipment
Loss (gain) on sales and valuation of investment securities
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in net defined benefit asset and liability
Increase (decrease) in provision for directors’ retirement and severance benefits
Increase (decrease) in provision for executive officers’ incentive plan
Increase (decrease) in allowance for sales returns
Interest and dividends received
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using equity method
Changes in operating assets and liabilities:
Receivables
Inventories
Payables and accrued expenses
Accrued consumption taxes
Increase (decrease) in lease and guarantee deposits
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments into deposits (more than three months)
Proceeds from withdrawal of time deposits (more than three months)
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for transfer of business (Note 18)
Purchases of investment securities
Proceeds from sales of investment securities
Purchase of investments in capital of subsidiaries
Other investments, net
Net cash used in investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Purchases of treasury stock
Proceeds from disposal of treasury stock
Payments of dividends
Payments of dividends to non-controlling interests
Other finance, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 18)
See notes to consolidated financial statements.

7

2020

2019

2020

¥ 3,289¥2,710$30,226

1,390
97
30
25
1
1
42
—
2
12
(117)
16
(110)
(9)

1,109
—
0
22
(10)
(0)
14
(9)
12
(21)
(114)
7
(21)
(14)

12,770
893
272
225
9
5
384
—
20
110
(1,073)145(1,013)
(87)

(500)
(875)
(10)
267
492
236
4,277
123
(14)
(748)
3,638

127
107
(600)
(35)
(7)
(70)
3,206
117
(7)
(1,131)
2,186(4,598)(8,044)
(94)
2,449
4,525
2,171
39,2971,130(131)(6,869)33,428(55)
15(1,401)101(2,041)
(9)
—
(66)
(228)
(3,685)(0)35(2,313)
1
—
(10)
21
—
(39)
(2,305)(502)
133(12,874)924(18,753)
(87)
—
(606)
(2,095)(33,859)

183
(0)
42
(804)
(108)
(198)
(885)

347
(1)
52
(802)
(72)
(152)
(628)

1,685
(3)
387
(7,385)(996)(1,818)(8,130)(18)(949)
11,072¥10,122

(47)
(794)
11,866¥11,072(164)(8,725)
101,737$ 93,012

Notes to Consolidated Financial Statements
S.T.CORPORATION and Consolidated Subsidiaries
March 31, 2020

1 Summary of Significant Accounting Policies(a) Basis of presentation
S.T. CORPORATION (the “Company”) and its domestic subsidiaries
maintain their books of account in conformity with accounting principles
generally accepted in Japan, and its overseas subsidiaries maintain theirbooks of account in conformity with those of their countries of domicile.
Effective April 1, 2008, the Company adopted the “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (PITF No. 18, issued by the
Accounting Standards Board of Japan (ASBJ) on May 17, 2006).
The accompanying consolidated financial statements have been
prepared in accordance with accounting principles generally accepted inJapan, which are different in certain respects as to the application anddisclosure requirements of IFRS, and are compiled from the consolidated
financial statements prepared by the Company as required by the Financial
Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements,
certain reclassifications have been made to the consolidated financial
statements issued domestically for readers outside Japan. The notes tothe consolidated financial statements include information which is not
required under accounting principles generally accepted in Japan but ispresented herein as additional information. Furthermore, certain amounts
in the prior year’s financial statements have been reclassified to conform tothe current year’s presentation.
As permitted by Financial Instruments and Exchange Act, amounts arerounded to the nearest million. Consequently, the totals shown in theaccompanying consolidated financial statements (both in yen and U.S.
dollars) do not necessarily agree with the sum of the individual amounts.
(b) Scope of consolidation(1) Number of consolidated subsidiaries:
7 companies(2) Names of consolidated subsidiaries:
S.T. Trading Co., Ltd., S.T. Business Support Co., Ltd., S.T. MYCOAL
CO., LTD., S.T. (Thailand) Co., Ltd., Family Glove Co., Ltd. (Taiwan),
S.T. Korea Corporation (South Korea), and Shaldan (Thailand) Co.,Ltd.
(3) Name of major non-consolidated subsidiary:
ZETA S. R. L. (Italy), and JAPAN AROMA LABORATORY CO., LTD.
The number of unconsolidated subsidiaries increased by one because
the Company acquired an interest in ZETA S. R. L. (Italy).
(Reasons for exclusion from scope of consolidation)
The non-consolidated subsidiary has been excluded from the scope of
consolidation because the total amounts of its assets, net sales, profit
or loss (amount equivalent to equity interests), retained earnings(amount equivalent to equity interests) and other amounts are limited,
and the effect on the consolidated financial statements as a whole isnot significant.
(c) Scope of application of equity-method accounting(1) Number of affiliated companies accounted for by the equity method:
3 companies(2) Names of major companies:
Shaldan (Philippines), Inc., Aekyung S.T. Co., Ltd., and NS FaFa Japan
Co., Ltd.
(3) Name of non-consolidated subsidiary for which equity method is notappliedThe non-consolidated subsidiaries to which the equity method does
not apply (ZETA S. R. L. (Italy), JAPAN AROMA LABORATORY CO.,LTD) are accounted for using the cost method rather than the equity
method because the total amounts of its profit or loss (amountequivalent to equity interests), retained earnings (amount equivalent toequity interests) and other amounts are limited, and the effect on the
consolidated financial statements as a whole is not significant.

(d) Accounting period
The accounting period of the Company begins on April 1 and ends on
March 31 of the following year. The four overseas subsidiaries have fiscal
years ending on December 31. The necessary adjustments for significant
transactions, if any, during the intervening period are made on
consolidation.
(e) Translation of foreign currency transactions and financial
statements
Monetary assets and liabilities denominated in foreign currencies aretranslated into yen at the rates of exchange in effect at the balance sheet
date and the accounts of the overseas consolidated subsidiaries aretranslated into yen at the rates of exchange in effect at the balance sheet
date. Foreign exchange gains and losses are credited or charged toincome and translation adjustments are included in net assets.
(f) Marketable securities and investment securities
Other securities with determinable market value are carried at market value
with any changes in unrealized holding gain or loss, net of the related
deferred income tax assets or liabilities, included in net assets. Other
securities without determinable market value are stated at cost determinedby the moving-average method and the cost of other securities sold iscomputed based on the moving-average method. During the years ended
March 31, 2020 and 2019, the Company and its consolidated subsidiaries
did not have any trading securities.
(g) Inventories
Inventories are stated at the lower of cost or net selling value, cost being
determined by the average method.
(h) Property, plant and equipment, except for leased assets, anddepreciation
Property, plant and equipment are stated at cost. Depreciation of property,
plant and equipment of the Company and its domestic subsidiaries,
except for buildings (excluding structures attached to the buildings)
acquired on or after April 1, 1998, and facilities attached to the buildings
and structures acquired on or after April 1, 2016, is computed by the
declining-balance method in conformity with the Corporation Tax Law ofJapan. Depreciation of property and equipment of overseas subsidiaries
and buildings (excluding structures attached to the buildings) acquired on
or after April 1, 1998 and facilities attached to the buildings and structuresacquired on or after April 1, 2016 of the Company and domestic
subsidiaries is computed by the straight-line method.
The estimated useful lives of the major depreciable assets are as follows:
Buildings and structures
3 to 50 years
Machinery, equipment and vehicles
2 to 17 years
2 to 20 years
Tools, furniture and fixtures(i) Intangible assets
Intangible assets, except for leased assets, are amortized by the straightline method. Cost of software purchased for internal use is amortized by
the straight-line method over a period of mainly 5 years, the useful life
applicable to commercially available software.
(j) Leases
Non-cancelable lease transactions that transfer substantially all the risks
and rewards associated with the ownership of the leased assets areaccounted for as finance leases. All other lease transactions are accounted
for as operating leases and related payments are charged to income as
incurred.
Depreciation is computed by the straight-line method over therespective lease terms assuming a nil residual value.
(k) Allowance for doubtful receivables
The allowance for doubtful receivables is provided based on pastexperience for normal receivables and on an estimate of the collectabilityof receivables from companies in financial difficulty.

8Notes to Consolidated Financial Statements(l) Allowance for sales returns
The allowance for sales returns is provided for losses on sales returns
subsequent to the balance sheet date at an amount equivalent to that
calculated based on the actual percentage of returns in prior years.
(m) Employees’ retirement and severance benefits(1) Method of attributing expected benefit payments to the period
In calculating the retirement benefit obligation, the method of
attributing expected benefit payments to periods is based on thebenefit formula.
(2) Amortization method of actuarial gains/losses
Actuarial gain or loss is amortized in the year following the year inwhich the gain or loss is recognized by the straight-line method over a
period of a certain number of years (5 years) which is shorter than the
average remaining years of service of the employees.
(3) Adoption of a simplified method in some consolidated subsidiaries
Some consolidated subsidiaries adopt the simplified method whichassumes retirement benefit obligation to be equal to the benefits
payable if all eligible employees voluntarily terminated their employment
at the end of fiscal year for the calculation of net defined benefit liability
and retirement benefit expenses.

(n) Provision for directors’ retirement and severance benefits
The Company has accrued provision for directors’ retirement andseverance benefits at the amount which would be required to be paid if all
directors resigned from their positions and left the Company as of thebalance sheet date in accordance with its internal regulations.
(o) Provision for executive officers’ incentive plan
The Company has established an executive officers’ incentive plan trust
and a provision is made at the amount required for stock awards based on
the Company’s internal regulations for awarding stock.
(p) Consumption taxes
Transactions subject to consumption taxes are recorded at amounts
exclusive of consumption taxes.
(q) Amortization of goodwill
Goodwill is amortized on a straight-line basis over periods not exceeding
20 years.
(r) Cash and cash equivalents
Cash and cash equivalents in the accompanying consolidated statementsof cash flows consist of cash on hand, demand deposits and liquid
short-term investments with a maturity of three months or less from theirrespective dates of acquisition.

2 Basis of Translation
The consolidated financial statements presented herein are expressed inyen and, solely for the convenience of the reader, have been translated
into U.S. dollars at ¥108.83 = U.S.$1.00, the approximate exchange rate
prevailing on the Tokyo Foreign Exchange Market on March 31, 2020. Thistranslation should not be construed as a representation that all amounts
shown could have been, or could in the future be, converted into U.S.
dollars at that or any other rate.

3 Accounting Standards not yet Applied, etc.
· Accounting Standard for Revenue Recognition (Statement No.29,
March 31, 2020 issued by the Accounting Standards Board of Japan(ASBJ))· Implementation Guidance on Accounting Standard for Revenue
Recognition (Implementation Guidance No.30, March 31, 2020
issued by the ASBJ)· Implementation Guidance on Disclosures about Fair Value of Financial
Instruments (Implementation Guidance No.19, March 31, 2020
issued by the ASBJ)(1) Summary
The International Accounting Standards Board (IASB) and US Financial
Accounting Standards Board (FASB) co-developed a new comprehensive
revenue recognition standard and issued “Revenue from Contracts with
Customers” in May 2014 (IASB: IFRS 15; FASB: Topic 606). Considering
IFRS 15 will be applied from fiscal years beginning on or after January 1,
2018 and Topic 606 from fiscal years beginning after December 15, 2017,
the ASBJ developed a comprehensive accounting standard on revenue
recognition and issued it together with implementation guidance.
The fundamental policy for developing Accounting Standard for Revenue
Recognition by the ASBJ was that the accounting standard would
incorporate the fundamental principles of IFRS 15 as the starting pointfrom the perspective of comparability of financial statements, which is theone of the benefits of achieving consistency with IFRS. If there are any
matters to be taken into consideration with regard to actual practices inJapan, etc., additional alternative accounting treatments will be provided
that do not impair financial statement comparability.

9(2) Scheduled date of application
The accounting standard and guidance will be applied from the beginningof the fiscal year ending March 31, 2022.
(3) Impact of application
The Company is currently assessing the impact of applying the accounting
standard and guidance on its consolidated financial statements.
· Accounting Standard for Disclosure of Accounting Estimates (Statement
No.31, March 31, 2020 issued by the ASBJ)(1) Summary
IASB published IAS No. 1 "Presentation of Financial Statements"(hereinafter referred to as "IAS 1") in 2003 which requires disclosure
regarding major sources of estimation uncertainty in the paragraph 125.
Regarding the major source of estimation uncertainty, there was arequest to ASBJ to consider requesting such disclosure even underJapanese GAAP as it is highly useful to users of financial statements.
As such, and the new accounting standard for the disclosure of theestimate (hereinafter referred to as "the accounting standard") has beendeveloped and published.
As a basic policy of its the development of the accounting standard,
ASBJ considered that it is appropriate not to expand individual disclosure
requirements but to introduce the principles (disclosure purposes) whereby
the reporting entity is required to determine the disclosure in light of theprinciples and purposes such as the provisions of IAS 1 paragraph 125.

(2) Scheduled date of application
The accounting standard and guidance will be applied from the end of the
fiscal year ending March 31, 2021.
· Accounting Standard for Accounting Policy Disclosures, Accounting
Changes and Error Corrections (Statement No.24, March 31, 2020
issued by the ASBJ)(1) Summary
In response to the proposal to consider the enhancement of theaccounting policy disclosures in cases where relevant accounting
standards are not directly available, ASBJ has released the revised
accounting standard to require to provide an outline of the applicableaccounting principles and procedures in cases where directly relevant
accounting standards are not available.
In addition, in applying the revised accounting standard where therelevant accounting standards are directly available, it is clarified to takeover the existing accounting guidance regarding disclosure of accounting
policies for the purpose not to affect the practices which have been
applied.
(2) Scheduled date of application
The accounting standard and guidance will be applied from the end of the
fiscal year ending March 31, 2021.

4 Changes in Presentation(Consolidated Statements of Cash Flows)“Increase (decrease) in lease and guarantee deposits”, which had been
included in “Other, net” of “net cash provided by operating activities” forthe previous fiscal year were presented separately for the fiscal year ended
March 31, 2020 due to an increase in materiality. In order to reflect thischange in presentation, the consolidated financial statements for theprevious fiscal year have been reclassified.

As a result of this change, “Other, net” of ¥ (77) million under “net cash
provided by operating activities” has been reclassified as “Increase(decrease) in lease and guarantee deposits” of ¥ (7) million and “Other,
net” of ¥ (70) million under “net cash provided by operating activities” inthe consolidated statement of cash flows for the previous fiscal year.

5 Additional Information(Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts)(a) Board Benefit Trust (BBT)The Company introduced a “Board Benefit Trust” with the goal ofincreasing awareness of the importance of contributing to further
enhancing the Company’s corporate value and performance over the
medium-to-long-term.
(1) Summary
The Company awards the Company’s stock to the executive officers
who satisfy certain requirements based on predetermined regulations
for awarding stocks. Executive officers are granted a certain number ofpoints depending on the financial results, and upon their retirement,
the officers will receive stock depending on the number of points they
have accumulated.
The Company has established the Trust by contributing funds to be
used for the acquisition of the Company’s stock on behalf of executive
officers. The Trust will acquire the Company’s stock to be awarded tothe executive officers in the future, and the shares are managed astrust assets.
(2) The Company’s stock in the Trust
The Company’s own stock in the Trust is recorded in treasury shares
under net assets based on the book value of the shares in the Trust(excluding ancillary expenses). The book value and the number ofthese treasury shares in the Trust as of March 31, 2020 were ¥96
million (U.S. $880 thousand) and 91,500 shares, respectively.
(b) Employee Stock Ownership Plan (ESOP) Trust
The Company introduced an Employee Stock Ownership Plan (ESOP)
Trust as an employee incentive plan with the aim of raising awareness of
the Company’s share price and strengthening financial performance.
(1) Summary
The Company awards the Company’s stock to the employees who
satisfy certain requirements based on predetermined regulations forawarding stocks.

If the Company’s profit is higher than a pre-determined standard,
the Company awards a certain number points to employees. Upon
their retirement, employees will receive the Company’s stock
depending on the number of points they have accumulated.
The Company has established the Trust by contributing funds to be
used for the acquisition of the Company’s stock on behalf ofparticipating employees. The Trust will acquire the Company’s stock
to be awarded to employees in the future, and the shares aremanaged as trust assets.
(2) The Company’s stock in the Trust
The Company’s own stock in the Trust is recorded in treasury shares
under net assets based on the book value of the shares in the Trust(excluding ancillary expenses). The book value and the number ofthese treasury shares in the Trust as of March 31, 2020 were ¥126
million (U.S. $1,154 thousand) and 120,000 shares, respectively.
(Impact of the New Type of Coronavirus Infection)
The impact on the consolidated financial statements for the current fiscal
year is limited because there are no major impacts such as on the
procurement of raw materials in terms of production, or on sales as
refraining from going out is not relevant due to the fact that the Group’s
manufactured goods are largely consumed within the household.
The impact on the consolidated financial statements for the next fiscal
year will be minor as a result of incorporating information known by theGroup regarding the new coronavirus disease at the end of the current
fiscal year.
However, if further situations occur and are not resolved or become
serious for a long period of time, the consolidated financial statements forthe next fiscal year may be affected by delays or suspensions of raw
material procurement, production activities, and declines in sales activities.

10Notes to Consolidated Financial Statements

6 Consolidated Statements of Comprehensive Income
The amount of recycling and amount of income tax effect associated with other comprehensive income for the years ended March 31, 2020 and 2019 wereas follows:
Thousands of
U.S. dollars

Millions of yen

2020

2019

2020

¥(714)
(1)
(715)
210
(505)

¥(1,016)(10)(1,026)323(702)$(6,560)(9)(6,569)1,930(4,639)Translation adjustments
Amount recognized in the year

(8)

(74)

(71)

Remeasurements of defined benefit plans, net of tax
Amount recognized in the year
Reclassification adjustments included in the statement of income
Before income tax effect adjustment
Amount of income tax effectRemeasurements of defined benefit plans, net of tax

(9)
5
(4)
1
(3)

1
9
10
(3)
7

(81)
46
(35)
11
(24)

(6)
—
(6)
¥(521)

(19)
(4)
(23)
¥(792)

(58)
—
(58)
$(4,792)

Unrealized holding gain (loss) on other securities, net of taxes
Amount recognized in the year
Reclassification adjustments included in the statement of income
Before income tax effect adjustment
Amount of income tax effectUnrealized holding gain (loss) on other securities, net of taxes

Other comprehensive income (loss) on equity method companies
Amount recognized in the year
Reclassification adjustments included in the statement of income
Other comprehensive income (loss) on equity method companies
Total other comprehensive income

7 Financial Instruments(1) Current status of financial instruments(a) Policy in relation to financial instruments
The Company and its consolidated subsidiaries (collectively, the “Group”)
raise necessary funds following capital investment plans for undertaking
the manufacturing-and-selling businesses. Surplus funds of the Groupare only invested in highly secure financial assets.
(b) Details of financial instruments and related risk
Trade receivables—trade notes and accounts receivable—are
exposed to credit risk in relation to customers. In addition, receivables
denominated in foreign currencies are exposed to foreign currency
exchange risk.
Investment securities, most of which are stocks of other companies
with which the Group has business relationships, are exposed tomarket price fluctuation risk.
Substantially all trade payables—notes and accounts payable-trade,electronically recorded obligations-operating and other payables—havepayment due dates within one year. In addition, payables denominatedin foreign currencies are exposed to foreign currency exchange risk.
(c) Risk management system for financial instruments(Credit risk management—the risk that customers or counterparties
may default)
The Company has established a management policy whereby theCompany evaluates the financial conditions of its customers and monitors

11

due dates and outstanding balances regularly to identify and mitigate
risks of bad debts from customers who are having financial difficulties.
The consolidated subsidiaries perform equivalent management
procedures as the Company.
(Market risk management—the risk arising from fluctuations in
exchange rates and interest rates)
The Company uses forward exchange contract transactions with theaim of avoiding risk related to fluctuation in future foreign exchange.
For investment securities, the Company periodically confirms themarket value of such financial instruments and reports to the director
in charge. The Company reviews the status of these investments on acontinuing basis.
(Liquidity risk management—the risk that the Group may not able tomeet its payment obligations on the schedule dates)
The Company manages liquidity risk by means of preparing monthly
financial plans.
(d) Supplementary explanation of items relating to the fair value of financial
instruments
The fair value of financial instruments is based on their quoted market
prices if available. If there are no market prices available, fair value isreasonably estimated. Because estimation of fair values incorporates
variable factors, adopting different assumptions can change the value.

(2) Estimated fair value of financial instruments
The carrying value of financial instruments recognized on the consolidated balance sheets as of March 31, 2020 and 2019, the estimated fair value of such items
and the differences between them are shown below. Financial instruments for which fair value is extremely difficult to estimate are not included in the following table.
Millions of yen
Year ended March 31, 2020

Carrying value

Fair value

a Cash and time deposits
b Trade notes and accounts receivablec Investment securities
Assets¥10,159
5,796
5,840
¥21,796¥10,159
5,796
5,840
¥21,796————

a Trade payables
b Electronically recorded obligations-operatingc Other payables
Liabilities¥2,592
2,614
2,978¥8,185¥2,592
2,614
2,978¥8,185————

Year ended March 31, 2019

Carrying value

Fair value

a Cash and time deposits
b Trade notes and accounts receivablec Investment securities
Assets¥11,074
5,281
6,547
¥22,902¥11,074
5,281
6,547
¥22,902————a Trade payables
b Electronically recorded obligations-operatingc Other payables
Liabilities¥2,459
2,752
2,939¥8,150¥2,459
2,752
2,939¥8,150————

Year ended March 31, 2020

Carrying value

Fair value

a Cash and time deposits
b Trade notes and accounts receivablec Investment securities
Assets$93,351
53,26353,664$200,278$93,351
53,26353,664$200,278————

a Trade payables
b Electronically recorded obligations-operatingc Other payables
Liabilities$23,820
24,02627,367$75,213$23,820
24,02627,367$75,213————

Difference

Millions of yen
Difference

Thousands of U.S. dollars
Difference

Notes: 1. Method of estimating the fair value of financial instruments and other matters relating to investment securities
Assetsa. Cash and time deposits and b. Trade notes and accounts receivable
Because these items are settled over the short term, the fair value and carrying value are nearly equivalent. Therefore, the relevant carrying value is used.
c. Investment securities
	‌Stocks are valued at the exchange trading price. Bonds are valued at the exchange trading price or at the price provided by the financial institutions offering these securities. For information on securities classified by purpose ofholding, please refer to the “Investment Securities” section of the notes to the financial statements.
Liabilities
a. Trade payables, b. Electronically recorded obligations-operating and c. Other payables
Because these items are settled over the short term, the fair value and carrying value are nearly equivalent. Therefore, the relevant carrying value is used.
2. Financial instruments for which fair value is extremely difficult to determine
Carrying value
Thousands of
U.S. dollars

Millions of yen

Unlisted equity securities

2020
¥ 55

2019
¥ 55

2020
$ 507

Because these instruments have no quoted market price and the fair value is extremely difficult to determine, they are not included in the above table.

12Notes to Consolidated Financial Statements

3. Redemption schedule for receivables and other securities with maturity dates at March 31, 2020 and 2019 are summarized as follows:Year ended March 31, 2020

Time deposits
Trade notes and accounts receivable
Investment securities
Other
Total

Year ended March 31, 2019

Time deposits
Trade notes and accounts receivable
Investment securities
Other
Total

One year or lessMillions of yen
More than 1 year andMore than 5 years andwithin 5 years
within 10 years

More than 10 years¥10,157
5,796

¥—
—

—
—

—
—

—
¥15,954

100
100

—
—

—
—

One year or lessMillions of yen
More than 1 year andMore than 5 years andwithin 5 years
within 10 years

More than 10 years¥11,073
5,281

—
—

—
—

—
—

—
¥16,354

100
100

—
—

—
—

Thousands of U.S. dollars
More than 1 year andMore than 5 years andwithin 5 years
within 10 years

Year ended March 31, 2020

One year or lessTime deposits
Trade notes and accounts receivable
Investment securities
Other
Total

$93,338
53,263

$—
—

—
—

—
—

—
$146,600

919
919

—
—

—
—

More than 10 years

8 Derivatives
The Company and its consolidated subsidiaries had no derivative instruments outstanding at March 31, 2020 and 2019.

9 Investment Securities(1) Other securities
The acquisition cost and related carrying value of other securities with a determinable market value at March 31, 2020 and 2019 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Acquisition cost
Carrying value
Total unrealized gain
Total unrealized loss2020
¥2,625
5,840
3,221
(6)

2019
¥2,616
6,547
3,933
(3)

2020
$24,124
53,66429,597(57)

At March 31, 2020 and 2019, unlisted stocks (whose carrying value was ¥55 million (U.S.$507 thousand) and ¥55 million, respectively) are not included in
the above table because they have no quoted market price and the fair value is extremely difficult to determine.

13

(2) Sales of other securities(Year ended March 31, 2020)
Millions of yen
Proceeds from sales

Gain on sales

Loss on sales

¥—

¥—

—

—
—
—
—
¥—

—
—
—
—
¥—

—
—
—
—
—

(1) Stocks(2) Bonds
a Government bonds
b Corporate bondsc Others(3) Other securities
Total(Year ended March 31, 2019)

Millions of yen(1) Stocks(2) Bonds
a Government bonds
b Corporate bondsc Others(3) Other securities
Total

Proceeds from sales

Gain on sales

Loss on sales

¥ 21

¥ 10

—

—
—
—
—
¥ 21

—
—
—
—
¥ 10

—
—
—
—
—

(Year ended March 31, 2020)
Thousands of U.S. dollars
Proceeds from sales

Gain on sales

Loss on sales

$—

$—

—

—
—
—
—
$—

—
—
—
—
$—

—
—
—
—
—

(1) Stocks(2) Bonds
a Government bonds
b Corporate bondsc Others(3) Other securities
Total(3) Impairment of investment securities
The Company recognized impairment loss on investment securities of ¥1 million (U.S.$9 thousand) for the year ended March 31, 2020.
There were no significant impairment losses on investment securities for the years ended March 31, 2019.

10 Land Revaluation
In accordance with the Land Revaluation Law (Proclamation No. 34 dated
March 31, 1998), land used for business activities was revalued at March
31, 2002. The revaluation difference, net of taxes, is stated as “Unrealized
revaluation loss on land, net of taxes” in net assets. Deferred tax liabilities
arising from this revaluation difference are presented separately fromdeferred tax liabilities for other temporary differences in the accompanying
consolidated balance sheets. The market value of the land as of March 31,
2020 and 2019 decreased by ¥286 million (U.S.$2,631 thousand) and¥433 million, respectively, after the revaluation.

11 Pledged Assets
Pledged assets at March 31, 2020 and 2019 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2020
Time deposits

¥5

2019
¥5

2020
$ 44

Time deposits were pledged as collateral mainly for leased office space at March 31, 2020 and 2019.

14

Notes to Consolidated Financial Statements

12 Income Taxes
At March 31, 2020 and 2019, the tax effect of the temporary differences which gave rise to a significant portion of the deferred tax assets (excluding deferredtaxes on unrealized revaluation loss on land) was as follows:
Thousands of
U.S. dollars

Millions of yen

2019

2020
Deferred tax assets:
Accrued employees’ bonuses

2020

¥165

¥129

$1,514

Allowance for sales returns

37

33

336

Accrued business taxes

58

37

534

Loss on valuation of inventories

15

32

138

Net defined benefit liability

389

386

3,575

Accrued payable due to transfer to defined contribution pension plan

15

31

139

Provision for directors’ retirement and severance benefits

36

36

327

Provision for executive officers’ incentive plan

24

23

218

Write-downs of securities

64

64

588

Impairment loss

—

46

—

Tax loss carryforwards

79

118

722

Other

205

139

1,884

1,086

1,073

9,975

Valuation allowance for tax loss carryforwards

(79)

(117)

(722)

Valuation allowance for the total of future deductible temporary differences etc.

(127)

(170)

(1,171)

Valuation allowance

(206)

(286)

(1,894)

Total deferred tax assets

880

786

8,081

Deferred gain on sales of property

(11)

(11)

(100)

Net defined benefit asset

(3)

(2)

(25)

Undistributed earnings of controlled foreign companies

(70)

(60)

(639)

Unrealized holding gain on other securities, net of taxes(985)(1,195)(9,054)

(8)

—

(72)

Total deferred tax liabilities(1,076)(1,269)(9,890)Net deferred tax liabilities¥(197)¥(483)$(1,809)

Gross deferred tax assets

Deferred tax liabilities:

Other

At March 31, 2020 and 2019, net deferred tax liabilities were included in the following items in the consolidated balance sheets.
Thousands of
U.S. dollars

Millions of yen

Non-current assets - deferred tax assets
Non-current liabilities - deferred tax liabilities

2020

2019

2020

¥119
(315)

¥61
(544)

$1,090(2,899)Amounts of tax loss carryforward and related deferred tax assets by tax loss carryforward for the year end March 31, 2020 and 2019, were as follows:Year ended March 31, 2020

Tax loss carryforwards
Valuation allowance
Deferred tax assets

Due in one year or less———Due after one year
through two years

Due after two year
through three years

Millions of yen
Due after three year
through four years

Due after four year
through five years

After five years

—
—
—

—
—
—

¥30
(30)
—

¥49
(49)
—

—
—
—

Due after one year
through two years

Due after two year
through three years

Due after three year
through four years

Due after four year
through five years

After five years

—
—
—

—
—
—

¥43
(43)
—

¥74
(74)
—

¥1
—
1

Total

¥79
(79)
—

Millions of yen
Year ended March 31, 2019

Tax loss carryforwards
Valuation allowance
Deferred tax assets

15

Due in one year or less

—
—
—

Total

¥118
(117)
1

Thousands of U.S. dollars
Year ended March 31, 2020

Tax loss carryforwards
Valuation allowance
Deferred tax assets

Due in one year or lessDue after one year
through two years

Due after two year
through three years

Due after three year
through four years

Due after four year
through five years

After five years

—
—
—

—
—
—

$273
(273)
—

$450
(450)
—

—
—
—

—
—
—

Total

$722
(722)
—

Note: Figures for tax loss carryforward were the amounts multiplied by effective statutory tax rate.

A reconciliation of the statutory tax rates to the Company’s effective tax rates for the years ended March 31, 2020 and 2019 is summarized as follows:
2020
Japanese statutory tax rate
Permanent differences, such as entertainment expenses, etc.
Permanent differences, such as dividend income
Tax credit
Undistributed earnings of controlled foreign companies
Equity in loss of affiliates
Increase in valuation allowance
Consolidation adjustment of subsidiary stock valuation loss
Other
Effective tax rate

31.00%
0.53(0.29)(1.86)
0.29(0.09)
0.20(1.49)
1.66
29.95%

201931.00%
0.67(0.36)(2.09)(0.05)(0.16)
4.58(3.07)
2.45
32.97%

13 Business Combination
The Company aims to strengthen its production capacity for global
expansion, which is a medium-tern and long-term strategy in thedisposable warmer business, and also to improve the production efficiency
accompanying its sales expansion in the domestic market. Regarding theacquisition of the disposable warmer business of MYCOAL CO., LTD, weentered into a business transfer agreement with MYCOAL CO., LTD on
December 18, 2017, and took over it on April 1, 2019.
(1) Outline of business acquisition(a) Name the company and description of business involved in thebusiness acquisition.
· Name of transferor company: MYCOAL CO., LTD· Description of businesses: Manufacturing, development anddistribution of pocket heater and thermal products(b) Primary reason for business acquisition
The Group has positioned the "corresponding to the social structurechange" as one of the direction of the growth under the management
policy “brand value management”.
Given the importance of securing healthy living, which is a social
issue in recent years, the Group acquired the disposable warmer
business of MYCOAL CO., LTD with which the Group had previously
engaged in sales business partnerships.
MYCOAL CO., LTD from which the Group has acquired thedisposable warmer business, has excellent technology and had
consistently manufactured and sold Pocket heater and thermal
products under the concept of “for thermal insulation and health” since
its establishment in 1904.
The main products "On-Packs" of disposable Pocket heater havereceived support from a wide range of customers as light and thin, softand comfortable Pocket heater products.
With the acquisition of this business, by leveraging the productdevelopment and marketing capabilities of the Group, we aim further
to expand the scope of operations in domestic and overseas markets
and to improve corporate value while improving our profitability.

(d) Legal form of the business acquisition
Business transfer for cash(e) Name of company after the business acquisition
No change(f) Primary basis for deciding upon the company acquired
This is because the Company acquired the Pocket heater business forcash.
(2) Period of financial results of the acquired company included in
the consolidated financial statements
From April 1, 2019 to March 31, 2020
(3) Cost of acquisition of the acquired business and the breakdown
thereof by acquisition priceConsideration for acquisition – Cash
Acquisition cost

Millions of yen

Thousands of
U.S. dollars¥2,041¥2,041$18,753$18,753(4) Details and amount of major acquisition-related costs
Fee and commissions paid to advisors ¥8 million (U.S. $73 thousand)(5) Amount of goodwill recorded, reasons for recording goodwill,amortization method and amortization period(a) Goodwill recorded¥1,458 million (U.S. $13,397 thousand)(b) Reasons for recording goodwill
Goodwill arose from excess earning power expected from futurebusiness development.
(c) Amortization method and amortization period
Straight-line amortization over 15 years(c) Date of the business acquisition
April 1, 201916

Notes to Consolidated Financial Statements(6) Assets succeeded and liabilities taken over as of the date of the business combination

Current assets
Fixed assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

Millions of yen

Thousands of
U.S. dollars

¥394
326
720
127
10
¥137

$3,619
2,999
6,617
1,167
95
$1,262

14 Employees’ Retirement and Severance Benefits
The Company and its consolidated subsidiaries have defined benefit plansfor payments of employees’ retirement (either funded or unfunded), theCompany and some consolidated subsidiaries have a defined contribution
pension plan.
The Group pays a pension or lump sum based on length of service andsalary in the defined benefit corporate pension plan.
In unfunded retirement benefit plans, the Company pays a lump sum

based on length of service and salary as a retirement benefit.
Some consolidated subsidiaries adopt the simplified method whichassumes retirement benefit obligation to be equal to the benefits payable if
all eligible employees voluntarily terminated their employment at fiscal year
end for the calculation of net defined benefit liability and retirement benefit
expenses.

(1) Defined benefit plans
Adjustments of beginning and ending balance of retirement benefit obligations
Thousands of
U.S. dollars

Millions of yen

Balance at the beginning of the year
Service cost
Interest cost
Actuarial gain or loss
Payment of retirement benefits
Other
Balance at the end of the year

2020

2019

2020

¥1,357
98
10
(8)
(79)
3
¥1,381¥1,362
67
10
(3)
(76)
(4)
¥1,357$12,468
899
92
(74)
(722)
28
$12,689

Adjustments of beginning and ending balance of plan assets
Thousands of
U.S. dollars

Millions of yen

Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Payment of retirement benefits
Balance at the end of the year

2020

2019

2020

¥100
1
(17)
(14)
¥70

¥114
1
(2)
(14)
¥100

$918
11
(156)
(127)
$646

Adjustments of ending balance of retirement benefit obligations and plan assets, and net defined benefit asset and liability on consolidated balance sheet
Thousands of
U.S. dollars

Millions of yen

Funded retirement benefit obligations
Plan assets
Unfunded retirement benefit obligations
Net defined benefit asset and liability on consolidated balance sheet
Net defined benefit liability
Net defined benefit asset
Net defined benefit asset and liability on consolidated balance sheet

17

2020

2019

2020

¥62
(70)
(9)
1,319
1,311
1,319
(9)
¥1,311

¥92
(100)
(8)
1,265
1,257
1,265
(8)
¥1,257

$566
(646)
(81)
12,124
12,04312,124(81)$12,043

The following table summarizes the components of net retirement benefit expenses:
Thousands of
U.S. dollars

Millions of yen

2019

2020
Service cost
Interest cost on benefit obligation
Expected return on plan assets
Amortization of actuarial loss
Extraordinary additional retirement payments
Net retirement benefit expenses

¥98
10
(1)
5
30
¥142

2020

¥67
10
(1)
9
47
¥132

$899
92
(11)
46
277
$1,303

Remeasurements of defined benefit plans, before tax, in the consolidated statements of comprehensive income
Thousands of
U.S. dollars

Millions of yen

2019

2020
Actuarial gain (loss)

¥(4)

2020

¥10

$(35)

Remeasurements of defined benefit plans, before tax, in the consolidated balance sheets
Thousands of
U.S. dollars

Millions of yen

2020
Unrecognized actuarial gain (loss)

¥25

2019

2020

¥22

$234

2020

2019

Plan assets(a) Plan assets
The fair value of plan assets, by major category, as a percentage of total plan assets is as follows:

General accounts
Total

100.0%
100.0

100.0%
100.0(b) Calculation method of expected long-term rate of return on plan assets
The expected return on assets has been estimated based on the anticipated allocation to each asset class and the expected long-term returns on assets
held in each category.
The assumptions used in the actuarial calculation
The main assumptions used in the actuarial calculation (presented as a weighted average) are as follows:
2020
Discount rate
Expected rate of return on plan assets

2019

0.8%
1.3%

0.8%
1.3%

(2) Other retirement benefits
Contributions to the defined contribution pension plans of the Company and its consolidated subsidiaries for the years ended March 31, 2020 and 2019
amounted to ¥136 million (U.S. $1,252 thousand) and ¥130 million, respectively.

15 Net Assets
The Corporation Law of Japan (the “Law”), which superseded most of theprovisions of the Commercial Code of Japan, went into effect on May 1,
2006. The Law provides that an amount equal to 10% of the amount to be
disbursed as distributions of capital surplus (other than the capital reserve)
and retained earnings (other than the legal reserve) be transferred to thecapital reserve and the legal reserve, respectively, until the sum of thecapital reserve and the legal reserve equals 25% of the capital stock
account. Such distributions can be made at any time by resolution of theshareholders or by the Board of Directors if certain conditions are met.

Capital surplus and the legal reserve are not available for the distributionof dividends but may be used to reduce or eliminate a deficit or may betransferred to stated capital. At March 31, 2020, the legal reserve of theCompany included in retained earnings amounted to ¥550 million(U.S.$5,052 thousand).
The maximum amount which the Company can distribute as dividends
is calculated based on the non-consolidated financial statements of theCompany and in accordance with the Corporation Law of Japan.

18Notes to Consolidated Financial Statements

16 Amounts per Share
Net assets per share as of March 31, 2020 and 2019 were ¥1,337.42(U.S.$12.29) and ¥1,295.38, respectively. Basic earnings per share for theyears ended March 31, 2020 and 2019 were ¥102.19 (U.S.$0.94) and¥81.66, respectively.
Diluted earnings per share for the years ended March 31, 2020 and2019 were ¥101.97 (U.S.$0.94) and ¥81.34, respectively.

The basis for the calculation of basic earnings per share and diluted earnings per share for the years ended March 31, 2020 and 2019 was as follows:
Thousands of
U.S. dollars

Millions of yen

Basic earnings per share:
Profit attributable to owners of parent
Amount not attributable to shareholders of common stock
Amount attributable to shareholders of common stock
Weighted-average number of shares outstanding(Millions of shares)
Diluted earnings per share:
Adjustments to profit attributable to owners of parent
Increase in number of shares outstanding(Millions of shares)(Subscription rights to shares)
Shares having an anti-dilutive effect(Millions of shares)

2020

2019

2020

¥2,261—2,261¥1,804—
1,804$20,778—
20,778

22

22

—

—

—

—

0
(0)

0
(0)

—
—

—

—

—

The basis for calculation of total net assets per share as of March 31, 2020 and 2019 was as follows:
Thousands of
U.S. dollars

Millions of yen

Total net assets per share:
Total net assets
Deductions:
Subscription rights
Non-controlling interests
Amounts attributable to shareholders of common stock
Number of shares outstanding at year end(Millions of shares)

2020

2019

2020

¥30,136509
10
499
29,627¥29,223
579
14
565
28,644$ 276,907
4,677
91
4,587
272,23022

22—

17 Major Expenses
Major expenses included in selling, general and administrative expenses for the years ended March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars

Millions of yen

Sales promotion expenses
Advertising costs
Salaries
Shipment and storage expenses
Provision for employees’ retirement and severance benefits
Provision for executive officers’ incentive plan
Provision of allowance for doubtful accounts

2020¥3,399
2,649
2,394
1,687
196
2
0

2019
¥3,355
2,821
2,363
1,562
215
18
—

2020
$31,235
24,342
21,99915,503
1,798
20
5Research and development expenses included in general and administrative expenses and cost of sales for the years ended March 31, 2020 and 2019
amounted to ¥725 million (U.S.$6,660 thousand) and ¥643 million, respectively.

19

18 Cash and Time Deposits
A reconciliation of cash and cash equivalents in the accompanying consolidated statements of cash flows to cash and time deposits in the accompanying
consolidated balance sheets at March 31, 2020 and 2019 is as follows:
Thousands of
U.S. dollars

Millions of yen

2020¥10,159(60)
23¥10,122

Cash and time deposits
Time deposits with a maturity in excess of three months
Other current assets (*)
Cash and cash equivalents

2019¥11,074(20)
18¥11,0722020$93,351(552)
213$93,012

Millions of yen

Thousands of
U.S. dollars

¥394
326
1,458
(127)
(10)
¥2,041$3,619
2,999
13,397(1,167)(95)$18,753(*) These represent the Company’s contributions of funds to a bank in order to establish the “Board Benefit Trust (BBT)” and “Employee Stock Ownership Plan (ESOP) Trust.”

Assets and liabilities increased due to business transfer for the year ended March 31, 2020 is as follows:

Current assets
Fixed assets
Goodwill
Current liabilities
Non-current liabilities
Payments for transfer of business19 Leases(Finance leases)
Leased assets included in property, plant and equipment are buildings and structures, machinery, equipment and vehicles, tools, furniture and fixtures in thedaily necessities segment. Leased assets included in intangible assets are software.
(Operating leases)
The Company and its consolidated subsidiaries had no significant operating leases at March 31, 2020 and 2019.

20 Segment Information(1) Summary of Reporting Segments
Segment information for the years ended March 31, 2020 and 2019 is omitted as the Group operates as a single segment.
(2) Calculation method of sales, profits or losses, and other items by reportable segment
Information on the calculation method is omitted as the Group operates as a single segment.
(3) Information on the amounts of sales, income, and other items by reportable segments
Information on the amounts of sales and other items for the years ended March 31, 2020 and 2019 is omitted as the Group operates as a single segment.
(4) Related Information(a) Information by products and services
Millions of yen
Year ended March 31, 2020

Air Care

Cloth Care

Thermal Care

Hand Care

Others

Total

Sales to third parties¥21,079¥9,266¥4,325¥5,758¥7,117¥47,546

Year ended March 31, 2019

Air Care

Cloth Care

Thermal Care

Hand Care

Others

Total

Sales to third parties¥20,809¥9,109¥5,147¥5,776¥6,942¥47,782

Year ended March 31, 2020

Air Care

Cloth Care

Thermal Care

Hand Care

Others

Total

Sales to third parties$193,685$85,146$39,740$52,911$65,399$436,881

Millions of yen

Thousands of U.S. dollars

20Notes to Consolidated Financial Statements(b) Information by geographical segment(Sales)Geographical segment information is not presented as overseas sales
were less than 10% of consolidated net sales for the years ended
March 31, 2020 and 2019.

(Property, plant and equipment)
Geographical segment information is not presented as the amount ofproperty, plant and equipment in Japan exceeded 90% of the total ofproperty, plant and equipment at March 31, 2020 and 2019.

(c) Information by major customers

Sales
Thousands of
U.S. dollars

Millions of Yen

Customers

PALTAC CORPORATION
ARATA CORPORATION

2020

2019

2020

¥16,343¥11,289¥16,730¥10,753$150,166$103,728

Related segment

Daily necessities
Daily necessities

21 Related Party Transactions(Years ended March 31, 2020 and 2019)
Not applicable

22 Inventory Valuation Loss Included in Cost of Sales
Inventory valuation loss write-downs below cost to net selling value are included in cost of sales and amounted to ¥335 million (U.S.$3,076 thousand) and¥352 million for the years ended March 31, 2020 and 2019, respectively.

23 Impairment loss
The Company recognized impairment losses for the year ended March 31, 2020 as follows:
Location

Purpose of use

Type of assets

Millions of yen

Thousands of U.S. dollars

ThailandBusiness-use assets

Machinery, equipment and vehicles

¥ 30

$ 272

The Company determines the business asset group in consideration of management accounting, and regards corporate assets such as the head office as theentire business unit. In addition, idle assets and assets to be sold that are not directly used for business are grouped by individual property.
Since fixed assets held by the consolidated subsidiary Shaldan (Thailand) CO., Ltd. have declined in profitability, the book value was reduced to therecoverable amount, and this reduction was recorded as an impairment loss under extraordinary loss.
Although the recoverable value is measured by the value in use, the value in use is evaluated by the memorandum value because the future cash flow of thisasset is negative.
The Companies accounted for impairment losses for the year ended March 31, 2019 as follows:
Location

Purpose of use

Type of assets

Millions of yen

ThailandBusiness-use assets

Machinery, equipment and vehicles¥0

The Company determines the business asset group in consideration of management accounting, and regards corporate assets such as the head office as
the entire business unit. In addition, idle assets and assets to be sold that are not directly used for business are grouped by individual property.
Since fixed assets held by the consolidated subsidiary S.T. (Thailand) CO., Ltd. have declined in profitability, the book value was reduced to the recoverable
amount, and this reduction was recorded as an impairment loss under extraordinary loss.
Although the recoverable value is measured by the value in use, the value in use is evaluated by the memorandum value because the future cash flow of thisasset is negative.

21

24 Note to Consolidated Statements of Changes in Net Assets
Shares in issue and outstanding and treasury stock at March 31, 2020 and 2019 were as follows:(Year ended March 31, 2020)
Number of shares in issue and outstanding:Common stock
Number of shares held in treasury:
Common stock

Subscription rights at March 31, 2020 were as follows:
Subscription rights for stock options¥10 million (U.S. $91 thousand)

23,000 thousand
848 thousand

Note: Details of the change in the number of shares of treasury stock are as follows:
Increase due to purchase of shares less than standard unit:
0 thousand
Decrease due to the exercise of stock options:
40 thousand
The common stock owned by the Trust (212 thousand shares) is included in the number of shares held intreasury stock.

Dividends paid from retained earnings for the year ended March 31, 2020 were as follows:
Total amount of dividends

Dividends per share

Resolution

Millions of yen

Thousands of U.S. dollars

Yen

U.S. dollars

Record date

Effective date

Board of directors’ meeting
held on May 20, 2019

¥ 402

$ 3,692¥ 18$ 0.17

March 31, 2019

June 4, 2019

Board of directors’ meeting
held on October 30, 2019

402

3,693

18

0.17

September 30, 2019

December 6, 2019

Dividends for which the record date was in the year ended March 31, 2020 and the effective date is in the year ending March 31, 2021 were as follows:
Total amount of dividends

Dividends per share

Resolution

Millions of yen

Thousands of U.S. dollars

Source of dividends

Yen

U.S. dollars

Record date

Effective date

Board of directors’ meeting
held on May 18, 2020

¥ 403

$ 3,699

Retained earnings¥ 18$ 0.17

March 31, 2020

June 2, 2020

(Year ended March 31, 2019)
Number of shares in issue and outstanding:Common stock
Number of shares held in treasury:
Common stock

Subscription rights at March 31, 2019 were as follows:
Subscription rights for stock options

23,000 thousand¥14 million

888 thousand

Note: Details of the change in the number of shares of treasury stock are as follows:
0 thousand
Increase due to purchase of shares less than standard unit:
44 thousand
Decrease due to the exercise of stock options:
Decrease due to issuance of treasury shares by the stock benefit trust (BBT):
6 thousand
The common stock owned by the Trust (212 thousand shares) is included in the number of shares held intreasury stock.

Dividends paid from retained earnings for the year ended March 31, 2019 were as follows:
Total amount of dividends(Millions of yen)

Dividends per share(Yen)

Record date

Effective date

Board of directors’ meeting held on
May 21, 2018

¥ 401

¥ 18

March 31, 2018

June 5, 2018

Board of directors’ meeting held on
October 30, 2018

401

18

September 30, 2018

December 7, 2018

Resolution

Dividends for which the record date was in the year ended March 31, 2019 and the effective date was in the year ended March 31, 2020 were as follows:
Resolution

Board of directors’ meeting held on
May 20, 2019

Total amount of dividends(Millions of yen)

Source of dividends

Dividends per share(Yen)

Record date

Effective date

¥ 402

Retained earnings¥ 18

March 31, 2019

June 4, 201922

Notes to Consolidated Financial Statements

25 Stock Option Plans
At March 31, 2020, the Company had stock option plans, which were approved at the annual general meetings of the shareholders and by the Board of
Directors. Details of these stock option plans are summarized as follows:
Date of approval

Number of shares granted

Eligible participants

Exercisable period

June 15, 2012
June 14, 2013

130,000
130,000

3 officers and 8 employees
2 officers and 10 employees

Aug 2, 2014 – Aug 1, 2019
Aug 2, 2015 – Aug 1, 2020

June 17, 2014

175,000

6 officers and 11 employees

Aug 2, 2016 – Aug 1, 2021

The option price per share was determined on the date the options were granted based on an established formula for determining option prices. The
options are exercisable during the above periods provided that the recipients are still directors, officers or employees of the Company or its subsidiaries.
Description of stock options
2013
3 officers and 8 employees

2014
2 officers and 10 employees

2015
6 officers and 11 employees

Common stock

Common stock

Common stock

130,000

130,000

175,000

August 1, 2012

August 1, 2013

August 1, 2014

Working from August 1, 2012
to August 1, 2014
August 1, 2012 to August 1, 2014

Working from August 1, 2013
to August 1, 2015
August 1, 2013 to August 1, 2015

Working from August 1, 2014
to August 1, 2016
August 1, 2014 to August 1, 2016

Within 5 years after the vestingdate (those retiring after the vestingdate cannot exercise their stock
options)

Within 5 years after the vestingdate (those retiring after the vestingdate cannot exercise their stock
options)

Within 5 years after the vestingdate (those retiring after the vestingdate cannot exercise their stock
options)

GranteesType of stock
Number of stock options granted (*)
Grant dateCondition for exercise
Working period
Exercisable period(*) Number of stock options in the column “Number of stock options granted” has been converted into the equivalent numbers of shares.

Stock option activity during the year ended March 31, 2020 was as follows:
Number of shares2013
Non-vested outstanding at beginning of year
Granted during the year
Forfeited during the year
Vested during the year
Outstanding at end of year
Vested outstanding at beginning of year
Vested during the year
Exercised during the year
Forfeited during the year
Outstanding at end of year

2014

—
—
—
—
—
3,000
—
3,000
—
—

—
—
—
—
—
48,000—11,000—37,000

2013
¥946
1,670
¥153

2014
¥1,066
1,696
¥117

2015
—
—
—
—
—
83,000—26,000—57,000Price of stock options
Yen

Exercise price
Weighted-average market price
Fair value per option on grant date2015
¥1,059
1,665¥97

The fair value of each stock option grant was estimated at the grant date using the Black-Scholes option pricing model.
Method of estimating exercised stock options
The Company estimated the number of exercised stock options based on the actual number of forfeitures because it is difficult to estimate the number ofstock options which will be forfeited in the future.

23

Report of Independent Auditors24

Five-Year Financial Summary
S.T. CORPORATION and Consolidated Subsidiaries
Years Ended March 31

Thousands of
U.S. dollars(Except per sharedata and ratios)

Millions of yen(Except per share data and ratios)

2020

2019

2018

2017

2016

2020
$436,881

For the Year¥47,546¥47,782¥48,627¥45,958¥44,661

Cost of sales

Net sales

27,06428,19628,552

27,47327,294

248,681

Selling, general and administrative expenses

17,107

16,748

16,594

15,63015,025

157,193

Operating income

3,374

2,839

3,481

2,854

2,342

31,007

Profit before income taxes

3,289

2,710

3,478

2,751

1,703

30,226

Profit attributable to owners of parent

2,261

1,804

2,410

1,817

912

20,778

Capital expenditures

3,137

3,060

1,822

608

1,758

28,823

Depreciation and amortization

1,487

1,109

970

997

1,128

13,663

725

643

596

611

536

6,660

R&D expenses
Cash flows from operating activities

3,638

2,186

2,660

5,150

2,481

33,428Cash flows from investing activities(3,685)(2,305)(1,826)

(622)

(624)

(33,859)

Free cash flow

(47)

(119)

835

4,529

1,857

(431)

Cash flows from financing activities

(885)

(628)

(428)

(640)

(876)

(8,130)¥23,647¥22,799¥23,736¥22,467¥19,708$217,288

10,80010,797

8,931

8,001

8,659

99,236

At Year-End
Total current assets
Property, plant and equipment, net
Total assets

43,276

41,976

42,11238,45834,924

397,645

Total current liabilities

10,951

10,344

10,241

9,666

8,781

100,621

Total long-term liabilities

2,189

2,408

2,849

2,980

2,648

20,116

Total net assets

30,13629,22329,02225,812

23,496276,907

Cash and cash equivalents

10,122

11,072

11,866

11,396

7,552

93,012

Number of shares issued (Thousands)

23,00023,00023,00023,00023,000Treasury stock (Thousands)

848

888

937

1,123

1,301

Number of employees (People)

1,032

948

952

890

860

Per Share (Yen and U.S. dollars)¥102.19¥81.66¥109.58¥83.57¥42.01

Dividends

36.00

36.00

31.00

24.00

22.00

0.33

Net assets

1,337.42

1,295.38

1,285.01

1,148.41

1,049.58

12.29

Stock price

1,601

1,892

2,286

1,809

1,114

14.71

Operating income margin

7.1

5.9

7.2

6.2

5.2

Profit before income taxes/net sales

6.9

5.7

7.2

6.0

3.8

Return on sales

4.8

3.8

5.0

4.0

2.0

ROA

5.3

4.3

6.0

5.0

2.7

ROE

7.8

6.3

9.0

7.6

4.1

Equity ratio

68.5

68.2

67.3

65.3

65.2

Profit attributable to owners of parent$0.94

Ratios (%)

25

Notes: 1. U.S. dollar amounts are translated from yen for convenience only, at the rate of ¥108.83 = U.S.$1.00, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2020.
2. ‌As a result of new accounting standards being applied effective from the fiscal year ended March 31, 2017, the figures for fiscal years 2016, 2017, 2018, 2019 and 2020 reflect those changes.
3. ‌As a result of new accounting standards being applied effective from the fiscal year ended March 31, 2019, the figures for fiscal years 2018, 2019 and 2020 reflect those changes. The figures for fiscal years 2016 and 2017 areas originally presented without retroactive application.
4. The stock prices listed are as of the end of the fiscal year ended in March.
5. ROA = Profit attributable to owners of parent divided by average total assets for the fiscal year.
6. ROE = Profit attributable to owners of parent divided by average total equity (total net assets minus subscription rights less non-controlling interests in consolidated subsidiaries) for the fiscal year.

Investor Information
As of March 31, 2020

Group Companies

Corporate Data
Company Name

S.T. CORPORATION

Headquarters

1-4-10 Shimo-ochiai, Shinjuku Ward,

S.T. PRO CO., LTD.

Tokyo 161-8540 Japan

S.T. Business Support Co., Ltd.

Establishment

August 31, 1948

Common Stock¥7,065,500,000

Fiscal Year-end

March 31

Shares Issued and Outstanding

23,000,000

Listed Stock ExchangeTokyo Stock Exchange, First Section

Shareholders

16,555

Registered Transfer Agent

Mizuho Trust & Banking Co., Ltd.

S.T. MYCOAL CO., LTD.
S.T. (Thailand) Co., Ltd.
Family Glove Co., Ltd. (Taiwan)

Accounting Auditors

Ernst & Young ShinNihon LLC

Annual Shareholders’ Meeting

Middle of June each year

Employees

Consolidated: 1,032

S.T. Korea Corporation (South Korea)
Japan Aroma Laboratory Co., Ltd.

Non-consolidated: 442

Shaldan (Thailand) Co., Ltd.

(Excluding part-time and temporary employees)

Contact

Kouichi Yoshizawa,

ZETA S.R.L. (Italy)

Public Relations Department
E-mailir@st-c.co.jp

Telephone+81-3-3367-6115

Facsimile+81-3-3367-6320

Major Shareholders
Thousands of shares% of total

Shaldan Co., Ltd.

5,587

25.0

Nippon Life Insurance Company

1,336

6.0

TCSB (Mizuho Bank)

884

4.0

The Master Trust Bank of Japan, Ltd. (Trust Account)

787

3.5

Takashi Suzuki

665

3.0

Japan Trustee Services Bank, Ltd. (Trust Account)

552

2.5

Individuals, etc. .......................... 34.5%

FUMAKILLA LIMITED

541

2.4

Other Japanese corporations ..... 33.9%

MUFG Bank, Ltd.

524

2.3

Financial institutions .................. 23.6%

Takako Suzuki

504

2.3

Non-Japanese institutions .......... 7.7%

Kanichi Suzuki

500

2.2

Securities fi rms ............................0.3%

Notes: 1 The Company holds treasury stock of 636 thousand shares as of March 31, 2020; however, it is
excluded from the list of major shareholders shown above.
2 The 884 thousand shares held by Trust & Custody Services Bank, Ltd. as trustee for Mizuho Bank
Retirement Benefit Trust Account re-entrusted by Mizuho Trust and Banking Co., Ltd. are the trust
assets of Mizuho Bank, Ltd., which established the Company’s shares held by Mizuho Bank, Ltd. as its
retirement benefit trust.

Stock Chart
Stock price (Yen)

Nikkei 225 (Yen)

3,500

25,0002,800

20,0002,100

15,00010,0001,400
Trading volume (Shares)
3,500,000700

017/6 78

9 10 11 12 18/1 2

3

4

5

6

7

8

9 10 11 12 19/1 2

3

4

5

6

7

8

9 10 11 12 20/1 2

3

4

5

6

5,000

0

26

1-4-10 Shimo-ochiai, Shinjuku Ward, Tokyo 161-8540 Japan
https://www.st-c.co.jp/english/
Printed in Japan, September 2020