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, theoriginal shall prevail. The Company assumes no responsibility for this translation or for direct,
indirect or any other forms of damages arising from the translation.

Items Disclosed on the Internet for Notice ofthe 75th Annual General Meeting of Shareholders

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■
■
■
■
■
■

Matters Concerning Stock Acquisition Rights of
the Company
Matters Concerning Accounting Auditors
Matters Concerning the Development of
Systems to Ensure the Appropriateness ofBusiness Operations and the Operational Statusof Such Systems
Consolidated Statements of Changes inShareholders’ Equity
Consolidated Notes
Non-consolidated Statements of Changes inShareholders’ Equity
Non-consolidated Notes･･･

Page 1･･･

Page 2･･･

Page 3 to 8･･･

Page 9･･･

Page 10 to 20･･･

Page 21･･･

Page 22 to 28

IDEC Corporation

With respect to “Matters concerning stock acquisition rights of the Company,” “Matters concerning
Accounting Auditors,” “Matters concerning establishment of the system to ensure the appropriateness ofbusiness operations and the operational status of the said system”, “Consolidated statements of changes
in shareholders’ equity,” “Consolidated notes,” “Non-consolidated statements of changes in shareholders’equity,” and “Non-consolidated notes,” the Company provides them to shareholders by posting them on
the Company website (https://jp.idec.com) in accordance with laws and regulations and the provisions ofArticle 15 of the Articles of Incorporation.

Matters Concerning Stock Acquisition Rights of the Company
Stock acquisition rights granted during the fiscal year under review
Date of resolution for issuance
June 18, 2021
Number of the stock acquisition rights
4,000 (Note 3)
Type of shares subject to the stock acquisition
Common sharesrightsNumber of shares subject to the stock
400,000 (Note 3)
acquisition rights
Amount of cash to be paid when exercising
2,194 yen
the stock acquisition rights
Issue price of the stock acquisition rights
Free
Exercise period of the stock acquisition rights
From July 1, 2023 to June 30, 2025
Issue price of shares and amount to be
Issue price 2,194 yen
incorporated into capital in the event of
Amount to be incorporated into capital 1,097 yen
issuance of shares upon exercise of stockacquisition rights
Conditions for exercise of stock acquisition(Note 1) (Note 2)rightsStatus of granting to employees of the
269 employees 2,808 rights (280,800 shares)
Company
Status of granting to officers and employees
122 officers and employees 1,192 rights (119,200 shares)of the subsidiary of the Company(Notes) 1. At the time of exercise of the right, the stock acquisition right holder must be a Director, Executive
Officer or employee of the Company or its subsidiary. However, a right holder may exercise his or
her stock acquisition right if he or she has retired due to the expiration of his or her term of office,or if he or she has reached the mandatory retirement age, or has any other valid reason.
2. Other conditions shall be set forth in the “19th Stock Acquisition Rights Allocation Agreement”
between the Company and the person to whom the stock acquisition rights have been allocated.
3. Since the issuance date, the number of the stock acquisition rights decreased by 103, and the numberof shares subject to the stock acquisition rights fell by 10,300 due to forfeiture of the rights of 13
persons.

1

Matters Concerning Accounting Auditors
1 Name of the Accounting Auditor
Deloitte Touche Tohmatsu LLC
2 Amount of Remuneration, etc. Paid to the Accounting Auditor
Category
Details
AmountAmount of remuneration, etc. to be paid by the Company (amount of remuneration, etc.
41 million
1
for the services under Article 2, Paragraph 1 of the Certified Public Accountants Act
yen(Act No. 103 of 1948))
Total amount of cash and other property benefits to be paid by the Company and its
41 million
2
consolidated subsidiaries
yen(Notes) 1. In the audit agreement between the Company and the Accounting Auditor, the amount of audit fees,
etc. based on the Companies Act and that based on the Financial Instruments and Exchange Act are notseparated, nor can they be substantially separated. Therefore, the amount in 1 above is stated as thesum of these amounts.
2. The Audit and Supervisory Committee, after carrying out the necessary verification as to whether thecontents of the audit plan of the Accounting Auditor, the status of performance of accounting audit
duties, and the basis for calculation of the estimated remuneration, etc. are appropriate, has given
consent regarding the amount of remuneration, etc. for the Accounting Auditor as set forth in Article
399, Paragraph 1 of the Companies Act.
3. Of the major subsidiaries of the Company, foreign subsidiaries are audited by certified public
accountants or auditing firms (including those with qualifications equivalent to these qualifications inforeign countries) other than the Company’s Accounting Auditor.
3 Non-audit Work
Not applicable.
4 Policy for Determining the Dismissal or Non-reappointment of the Accounting Auditor
The Audit and Supervisory Committee shall decide on the content of the agenda regarding dismissal or nonreappointment of the Accounting Auditor to be submitted to the General Meeting of Shareholders, in the event whereappropriate implementation of an audit is deemed to be difficult, or a change of the Accounting Auditor isappropriate in order to further improve the appropriateness and reliability of audits due to an event that impairs theeligibility and independence of the Accounting Auditor. In the event any of the reasons stipulated in Article 340,
Paragraph 1 of the Companies Act becomes applicable to the Accounting Auditor, the Audit and Supervisory
Committee shall dismiss the Accounting Auditor based on the unanimous agreement of the Directors who are Audit
and Supervisory Committee Members.

2Matters Concerning the Development of Systems to Ensure the Appropriateness ofBusiness Operations and the Operational Status of Such Systems(1) Systems to ensure that the execution of duties by Directors and employees of the Company and theGroup companies complies with laws and regulations and the Articles of Incorporation
1 The Company shall actively appoint Outside Directors to strengthen the supervisory
function of the Board of Directors with regard to the execution of duties by Directors.
Corporate
2 In order to realize the enhancement of corporate value based on corporate goals andGovernancemanagement philosophy, the Company shall establish the “IDEC Corporate
Governance Policy” and promote the strengthening of corporate governanceaccordingly.
1 The Company shall establish the “IDEC Group Code of Conduct,” which sets forth theCompany’s basic stance on corporate ethics and compliance, and shall make it known
to all Directors and employees so that they will comply with the Code.
2 The Company shall establish corporate ethics consultation desks and internal reporting
desks inside and outside the Company, and widely accept requests for consultation andreports from employees concerning violations of laws and regulations, violations ofinternal regulations, violations of corporate ethics, and harassment in the workplace.
The contents of consultations and reports shall be deliberated on by the “RiskManagement Committee” under the “CSR Committee” chaired by the President of theCompliance
Company, and measures shall be taken to resolve the issues in accordance with laws
and regulations, the Articles of Incorporation, and corporate ethics.
3 The legal department shall provide information on compliance and laws and regulations
to Directors and employees on a regular basis, and education and enlightenment
activities on compliance shall also be conducted on a regular basis.
4 In addition to the above, the Company shall periodically review and improve internal
regulations and their operations concerning systems to ensure that the execution ofduties by Directors and employees complies with laws and regulations and the Articles
of Incorporation.
(2) Systems for the storage and management of information related to the execution of duties by Directors
The following documents shall be stored and managed in accordance with internal
regulations such as the Document Management Regulations, Approval Regulations,
Information
Confidential Information Management Regulations, and Information Security Policy
Storage andBasic Regulations: documents related to the General Shareholders Meeting, documents
Management
related to the Board of Directors and other important meetings, approval requests,
Systems
contracts, and other documents (including electromagnetic records; the same shall apply
hereinafter) containing information related to the execution of duties by Directors.

3(3) Regulations and other systems for managing the risk of loss of the Company and the Group companies
1 The Company shall establish and operate the “Risk Management Regulations” for the
purpose of avoiding crises at the Company and the Group companies in advance andminimizing damage if a crisis should materialize.
2 In accordance with the Risk Management Regulations, the “Risk Management
Committee” shall be established under the “CSR Committee” chaired by the Presidentof the Company with the approval of the Board of Directors to manage risks at theCompany and the Group companies during normal times and to respond when a crisis
Riskmaterializes.
Management
Systems
3 In addition to responding to crises, the Risk Management Committee identifies andevaluates risks for the entire IDEC Group during normal times, and implements
measures to reduce risks. In addition, the “Compliance Subcommittee,” establishedwithin the Committee, shall handle internal reporting and implement measures tostrengthen compliance. The details of these efforts are reported to the “CSR
Committee” that meets periodically, and the Committee reports to the Board of
Directors.
In preparation for the occurrence of a disaster, etc., the Company shall establish a system
Safetyfor securing the safety of life and confirming the safety of employees, and shall also
Confirmation
promote the establishment of a system to ensure the continuation of important operations
and Recovery
and early recovery in the event of business interruption.
Systems(4) Systems to ensure the efficient execution of duties by Directors of the Company and the Group
companies
The Company shall achieve separation of business execution and supervision by having
the Board of Directors make decisions and supervise the execution of business byDirectors (excluding Directors who are members of the Audit and Supervisory
Separation ofCommittee) and executive officers. In addition, the Company shall establish a
Execution andManagement Committee chaired by the President of the Company to conduct preliminarySupervisiondeliberations and make decisions within the scope of authority delegated by the Board of
Directors, thereby strengthening the functions of the Board of Directors and improving
management efficiency.
The Company shall establish the “Administrative Authority Regulations” and the“Affiliated Company Management Regulations” which stipulate the duties,
Administrative responsibilities and authority of each position and the division of duties in each
Authority and organizational unit for the Directors and employees of the Company and the Group
companies to ensure efficient management, and shall periodically audit whether the
Auditsbusiness is being conducted in accordance with the stipulated system of duties andresponsibilities.
(5) Systems to ensure the appropriateness of operations in our corporate group
1 The Company shall establish and implement the “Affiliated Company Management
Regulations” which stipulate the matters necessary for the mutual cooperation andprosperity of the Company and the Group companies, as well as the basic matters forthe management, guidance and development of the affiliated companies.
Group
2 In accordance with the Affiliated Company Management Regulations, the Company
Company
shall have the Group companies report to the Company on a regular and continual basis
Managementon the status of their business performance and financial results.
and Reporting
Systems
3 In order to ensure that officers and employees of our overseas Group companies
understand our basic stance on compliance, the Company shall disseminate thephilosophy of the “IDEC Group Code of Conduct” on a global basis by translating it
into major languages.
The Company shall maintain appropriate business operations at the Group companies byGroupstrengthening monitoring and auditing of them by having the Company’s Internal
Company
Auditing Department and other related departments monitor and audit them in addition to
Auditsmonitoring and auditing within each company.
4(6) Systems to ensure the reliability of financial reporting
In order to ensure the reliability of the Group’s financial reporting, the Company shalldevelop related regulations and establish an appropriate system in accordance with thestandards for evaluating internal control over financial reporting. For the Group-wide
Reliability ofdevelopment and enhancement of the internal control system for financial reporting, theFinancialCompany shall establish the “Policy for Internal Control over Financial Reporting”,
Reportingclarify the Group-level promotion system, and establish a framework that allows eachdivision and Group company to conduct self-assessments and the Internal Auditing
Department to conduct independent monitoring on a continual basis.
(7) Matters related to employees who are requested by the Audit and Supervisory Committee to assist in
its duties, and matters related to ensuring the independence of such employees from Directors(excluding Directors who are members of the Audit and Supervisory Committee) and the effectivenessof instructions to such employees
If it becomes necessary to assign employees to assist the Audit and Supervisory
Committee in its duties, or if the Audit and Supervisory Committee so requests, theCompany shall, upon consultation with the Audit and Supervisory Committee, assign
employees who either work full-time for the Committee or serve other departments
Audit andconcurrently, as Audit and Supervisory Committee staff. Such employees shall be placed
Supervisory
under the administrative authority of the Audit and Supervisory Committee with regard
Committee
to the duties of the Audit and Supervisory Committee staff. In addition, the personnel
Staff
affairs of such employees, including issues such as appointments, transfers, evaluations,and wages, shall be decided upon after prior consultation with and consent of the Audit
and Supervisory Committee to ensure their independence from the executive departments.
(8) Systems for reporting to the Audit and Supervisory Committee by Directors (excluding Directors who
are members of the Audit and Supervisory Committee) and employees, systems for reporting to the
Audit and Supervisory Committee otherwise, and other systems for ensuring effective audits by the
Audit and Supervisory Committee
1 Directors (excluding Directors who are members of the Audit and Supervisory
Committee) and employees of the Company and the Group companies shall periodicallyreport to the Audit and Supervisory Committee on the status of execution of their duties,
and shall report as needed on important corporate matters in particular. In addition, theAudit and Supervisory Committee may request reports from the Directors (excluding
Directors who are members of the Audit and Supervisory Committee), employees, or
the Internal Control Departments of the Company and the Group companies asnecessary, and the Company shall improve the cooperation system of related
departments so that audits can be conducted more effectively in the future.
Reporting
2 The Company shall not give any disadvantageous treatment to Directors (excluding
Systems
Directors who are members of the Audit and Supervisory Committee) and employeesof the Company and the Group companies who have reported to the Audit andSupervisory Committee in accordance with the preceding item.
3 Executive Directors shall establish an environment in which Directors who are membersof the Audit and Supervisory Committee can periodically exchange opinions with
Directors (excluding Directors who are members of the Audit and Supervisory
Committee) of the Company and the Group companies and can attend important
meetings such as Management Committee meetings.
The Audit and Supervisory Committee shall strengthen the cooperation with the Internal
Cooperation
Auditing Department and may request the Internal Auditing Department to report andwith Internal
exchange information on a regular basis, and the Company shall secure such opportunities.
Auditing
In addition, the Audit and Supervisory Committee shall have the administrative authority
Department
to direct and order the Internal Auditing Department.
The Company shall budget a certain amount of money each year to cover expenses, etc.
Expenses, etc.
incurred in the execution of duties by the Audit and Supervisory Committee.

5(9) Basic views on eliminating anti-social forces and systems for development of measures
The Company has a basic policy to eliminate all involvement, including business
relationships, with anti-social forces and groups that threaten the order and safety of civilsociety when fulfilling its social responsibility in corporate activities, and declares in the“IDEC Group Code of Conduct” that it shall strive to continue as a law-abiding and fair
Measures tocompany.
Eliminate
In addition, the Company has clearly defined anti-social forces as a “crisis” in its “Crisis
Anti-Social
Management Regulations” to prevent crises from occurring and to respond promptly when
Forcesthey occur, as well as gather information on a daily basis and formulate a “Manual for
Dealing with Illegal Forces” to prepare for unreasonable demands in cooperation with
police authorities, lawyers, etc..
The Group is developing and operating an internal control system, and the operation status for the consolidated
fiscal year under review is as follows.
(1) Systems for corporate governance・ The Company has actively appointed Outside Directors. As of the end of the consolidated fiscal year underreview, the Company has appointed six Outside Directors (including one female Director) out of nine Directors.
These Outside Directors with diverse backgrounds and expertise supervise the management and actively
provide advice at meetings of the Board of Directors, thereby enhancing the transparency of the Board of
Directors and further strengthening the supervisory function.
・ As an opportunity to enhance communication among Outside Directors, the Company has continuously held
“Exchange meetings for Outside Directors.” During the consolidated fiscal year under review, we discussed
and exchanged opinions on the medium- and long-term strategies of the IDEC Group.
・ Based on the purpose of the revisions to the “Corporate Governance Code,” the Company has reviewed andrevised the “IDEC Corporate Governance Policy,” which sets forth its views and operational policies regarding
corporate governance in the Group.
・ The voluntary Nominating Committee, a majority of whose members are Outside Directors, has selectedcandidates for the next generation of executives and begun training them in accordance with the curriculum.
・ Through close communication and others with each Group company and other means, we continued tostrengthen corporate governance and realize synergies through integration throughout the Group.
(2) Systems for compliance・ In the Group, we continued holding training sessions on compliance at each level and theme, as well as
harassment-prevention training for managers. During the consolidated fiscal year under review, given thesituation of the COVID-19 pandemic, we reviewed our training methods, such as using our in-house filming
studio to shoot training videos and publishing them on the intranet, to further raise awareness of compliance.
・ The Company has established the “IDEC Hotline” as a point of contact for consultation and reporting on
violations of laws and regulations and internal rules, and on other inappropriate misconduct under normalsocial conventions. We have also been working on establishing the “Global Hotline” where our overseas Group
companies can directly report to the point of contact at the head office. The number of reports made during theconsolidated fiscal year under review was eight.
・ The Company has published material to explain the “IDEC Group Code of Conduct,” which was issued basedon “The IDEC Way,” on the Company intranet to promote understanding.
(3) Systems for information storage and management
・ The Group reviews its internal rules regarding the storage and management of information as appropriate, andcontinues to examine the necessity of revision of related rules and policies. The Group has partially revisedthem.
・ The Group continued to hold training sessions on information management to raise awareness of information
management.

6(4) Systems for risk management
・ In order to avoid or minimize crises in the Group, the Company held regular meetings of the “Risk Management
Committee” and reported the content of these meetings to the CSR Committee to monitor the status of crisis
management and take prompt actions.
・ The Company has established the “BCP Development Preparation Subcommittee” within the “RiskManagement Committee” to confirm the safety of employees and their families, confirm the operating statusof supply chains and business sites, and develop business continuity planning systems. The BCP Development
Preparation Subcommittee is working to formulate basic policies for disaster countermeasures and an initial
response flow assuming a Nankai megathrust earthquake.
・ The Company has established the “Risk Monitoring Subcommittee” within the “Risk Management Committee”
to strengthen the systems for evaluating the risks surrounding the Group, identifying high-risk events, andmonitoring efforts to reduce those risks.
(5) Systems to ensure efficient performance of duties
・ The Board of Directors actively exchanges opinions involving Outside Directors, and held meetings seventimes during the consolidated fiscal year under review. Also, for the common agendas, we have strengthened
cooperation with the Executive Officers Committee and the Management Committee, and established a systemthat enables efficient discussion and decision-making according to each role.
・ The Company has established the “Administrative Authority Regulations,” the “Affiliated Company
Management Regulations” and the “Ringi Approval Regulations” which stipulate the responsibilities, authority,
etc. of Directors, executive officers, and employees of the Company and the Group companies, examined thenecessity of revising the respective regulations based on the organizational structure, and partially revised themin the consolidated fiscal year under review.
(6) Systems to ensure the appropriateness of operations in our corporate group
・ The Company has established the “Affiliated Company Management Regulations” for the mutual cooperationand prosperity of the Company and the Group companies, and the Group companies have reported on theirperformance, etc. to the Company based on the Regulations. In addition, the related departments including theCompany’s Internal Auditing Department, etc. monitored and audited the Group companies as appropriate.
・ We have published the “IDEC Group Code of Conduct” on the Company intranet after adding the languages
used, to further raise awareness on a global basis.
・ In order to expand the scope of risk monitoring to the Group companies, we have established a risk map that
includes these Group companies, and are sequentially expanding the scope of the Group companies subject tomonitoring activities.
(7) Systems to ensure the reliability of financial reporting・ In order to ensure the reliability of financial reporting, the Company assessed the operational status of internal
controls.
(8) Systems to ensure an effective audit by Audit and Supervisory Committee Members
・ The Company has established the Secretariat of the Audit and Supervisory Committee within the Internal
Auditing Department, and has appointed the General Manager of the Internal Auditing Department as the chiefof the Secretariat, with one office employee with expertise serving as the Secretariat staff. The chief of theSecretariat ensures that minutes of meetings of the Board of Directors and other important meetings areavailable for review whenever necessary.
・ The Company places the Internal Auditing Department under the administrative authority of the Representative
Directors and the Audit and Supervisory Committee, and in particular, the Chairman of the Audit andSupervisory Committee gives independent and direct administrative orders to the Secretariat of the Audit andSupervisory Committee. The Chairman of the Audit and Supervisory Committee is directly involved inpersonnel evaluation, etc. of the chief of the Secretariat, and indirectly involved in personnel evaluation, etc.
of the Secretariat staff.
・ The Chairman of the Audit and Supervisory Committee, who is an appointed Audit and Supervisory Committee
Member, participates in important meetings other than the Board of Directors meetings such as the Management
Committee, etc. The chief of the Secretariat inspects minutes, etc. of the Board of Directors meetings and otherimportant meetings, ringi approval materials for decision-making of business execution, and other important
documents whenever necessary, and makes necessary reports to the Audit and Supervisory Committee.
7

・ The Audit and Supervisory Committee held 10 meetings during the consolidated fiscal year under review, andDirectors who are Audit and Supervisory Committee Members heard about management issues, etc. from two
Representative Directors at two of these meetings. In addition, the Company requested Executive Officers, etc.
of the Internal Control Departments, such as the Accounting Department, etc. and other business execution
departments to attend the Committee meetings and received the necessary reports.
・ During the consolidated fiscal year under review, Directors who are Audit and Supervisory Committee
Members conducted audits of distribution bases, and the Chairman of the Audit and Supervisory Committee
conducted an audit on one Group company, having confirmed the status of the development and operation of
the internal control system. In addition, the Audit and Supervisory Committee received detailed reports on all
audits and investigations conducted by the Internal Auditing Department before and after the audits, etc. wereconducted, and made the necessary requests, etc.
・ The Audit and Supervisory Committee voted on the audit plan and activity budget at the Audit Supervisory
Committee meeting held in July, notified them to the Representative Directors, and gave instructions to the
Accounting Department regarding expenditure procedures. Although no such expenses were incurred during
the consolidated fiscal year under review, the Company has ensured a system whereby the Chairman of the
Audit and Supervisory Committee can independently allow ringi approval for unbudgeted expenses in theevent of corporate scandals, etc.
(9) Systems to eliminate anti-social forces
・ The Company has declared that it will continue to be a fair company and regularly informed its employees
about this declaration through training sessions, etc.
・ The entire company has collected information on the trends of anti-social forces on a daily basis and secureda system to prepare for unreasonable demands.

8Consolidated Statements of Changes in Shareholders’ Equity
From April 1, 2021
to March 31, 2022

(Million yen)

Shareholders’ equity

Balance at beginning of the fiscal year

Capital stock

Capital surplus

10,056

9,215

Retainedearnings

28,076

Treasury shares

Total
shareholders’equity(5,329)42,018Change in the fiscal year
Dividends of surplus(1,949)(1,949)Profit attributable to owners of parent

7,896

7,896

Acquisition of treasury shares
Disposal of treasury shares

15(2,453)(2,453)24

39(Net) change in items other than theshareholders’ equity in the fiscal year-

Total change in the fiscal year

-

15

5,946

(2,429)3,532

Balance at end of the fiscal year

10,056

9,231

34,022(7,759)45,551

Accumulated other comprehensive income
Valuation
Foreign currency
difference ontranslation
available-for-saleadjustment
securities

Balance at beginning of the fiscal year

88

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

(4)

944

860

Stock acquisitionrightsNon-controllinginterests

Total Net Assets

148-

43,111

Change in the fiscal year
Dividends of surplus-(1,949)Profit attributable to owners of parent

-

7,896

Acquisition of treasury shares-(2,453)

Disposal of treasury shares-

39(Net) change in items other than theshareholders’ equity in the fiscal year

(46)

2,200

10

2,164

162

37

2,364

Total change in the fiscal year

(46)

2,200

10

2,164

162

37

5,897

Balance at end of the fiscal year

42

3,061

6

3,109

311

37

49,0089

Consolidated Notes
1. Note to the Significant Matters as the Basis for the Preparation of the Consolidated Financial Statements(1) Scope of Consolidation
The number of consolidated subsidiaries is 35 as follows.
1

IDEC SYSTEMS & CONTROLS CORPORATION

2IDEC LOGISTICS SERVICE CORPORATION

3IDEC AUTO-ID SOLUTIONS CORPORATION

4IDEC FACTORY SOLUTIONS CORPORATION

5IDEC SALES SUPPORT CORPORATION

6IDEC ALPS Technologies Co., Ltd.

7

IDEC CORPORATION

8IDEC Environmental Solutions LLC

9IDEC IZUMI ASIA PTE LTD.

10 IDEC ASIA(THAILAND)CO.,LTD.
11 IDEC CONTROLS INDIA PRIVATE LIMITED
12 IDEC IZUMI TAIWAN CORPORATION
13 IDEC Taiwan Corporation
14 IDEC IZUMI SUZHOU Co., Ltd.
15 IDEC HONG KONG CO.,LTD.
16 IDEC IZUMI(H.K.)CO.,LTD.
17 IDEC (SHANGHAI) CORPORATION
18 IDEC AUTOMATION (SHENZHEN) CORPORATION
19 IDEC ELECTRONICS TECHNOLOGY （SHANGHAI） CORPORATION
20 TAICANG CONET ELECTRONICS CO.,LTD.
21 MMI Technologies SAS
22 IHM Technologies SAS
23 APEM SAS
24 Contact Technologies UK Ltd
25 APEM Component Ltd
26 MEC ApS
27 APEM,Inc.
28 APEM AB
29 APEM GmbH
30 APEM Benelux N.V.
31 APEM B.V.
32 APEM ITALIA SRL
33 SACEMA SARL

10

34 SAMELEC SARL
35 APEM (Wujin) Electronic Co.,Ltd
Of the above, IDEC ALPS Technologies Co., Ltd. is included in the scope of consolidation as it was newly established during
the consolidated fiscal year under review.
In addition, IDEC Australia Pty. Ltd. and Apem Ltd., which were consolidated subsidiaries in the previous consolidated fiscal
year, were excluded due to the completion of their liquidation.

(2) Matters Concerning Application of the Equity Method
The number of affiliates to which the equity method is applied is one as follows.
Sayo IDEC Limited Liability Partnership(3) Matters Concerning Fiscal Years and Other Matters of Consolidated Subsidiaries
Of the consolidates subsidiaries, the balance sheet date of IDEC IZUMI SUZHOU Co., Ltd., IDEC (SHANGHAI)CORPORATION, IDEC AUTOMATION (SHENZHEN) CORPORATION, IDEC ELECTRONICS TECHNOLOGY（SHANGHAI） CORPORATION, and TAICANG CONET ELECTRONICS CO.,LTD. is December 31. In preparing theconsolidated financial statements, the Company uses non-consolidated financial statements based on the provisional closing
performed as of the consolidated balance sheet date The balance sheet date of the 15 APEM Group companies is December 31.
In preparing the consolidated financial statements, the Company makes necessary adjustments for consolidation for significant
transactions that occurred in the period to the consolidated balance sheet date by using the non-consolidated financial statements
as of the same date.

(4) Matters Concerning Accounting Policies
1

Evaluation standards and methods for significant assets(a)Securities
Other securities:
Securities other than shares, etc. without market priceMarket value method (valuation difference is reported as
a component of net assets, and the cost of securities soldis calculated by the moving-average method)

Shares, etc. without market price(b)

Stated at cost based on the moving-average method

Derivative transactions
Market value method(c)Inventories
Stated at cost based mainly on the periodic average method (calculated after book value is written down based on adecrease in profitability).

11

2

Methods of depreciation and amortization for significant depreciable assets(a)Property, plant and equipment (excluding leased assets and right-of-use asset)
Depreciation is calculated mainly by the straight-line method.
The useful lives are mainly as follows.

(b)

Buildings and structures

3 to 47 years

Machinery, equipment and vehicles

3 to 17 years

Tools, furniture and fixtures

2 to 20 years

Intangible assets (excluding leased assets and right-of-use assets)
Depreciation is calculated by the straight-line method.
Depreciation of software for internal use is calculated by the straight-line method based on the estimated useful lives(mainly 5 years).

(c)

Leased assets
Leased assets related to finance lease transactions that do not transfer ownership
Calculated by the straight-line method, with lease periods of such assets being useful lives, and residual values being
zero.

(d)

Right-of-use assets
Calculated by the straight-line method, with lease periods of such assets being useful lives, and residual values being
zero.

3

Accounting standards for significant provisions(a)Provision for doubtful accounts
To prepare for possible losses on accounts receivable, the Company sets aside an amount that is expected to be
irrecoverable, after it considers the possibility of recoverability of (a) general accounts receivable, mainly by actual
default ratio, and (b) specific accounts receivable where recoverability is in doubt, on a case-by-case basis.

(b)

Provision for retirement benefits for officers
To prepare for the expenditure of retirement benefits for officers, the Company sets aside the amount necessary at theend of fiscal year based on the Rules for Retirement Benefits for Officers.

(c)Provision for product warranties
To provide for expenses associated with product warranties, the Company sets aside the estimated amount necessary
for repairs in consideration of the possibility of occurrence.

12

4

Accounting standards for revenue and expenses
In accordance with the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020;
hereinafter referred to as the “Revenue Recognition Accounting Standard” ), the Company recognizes revenue in the amount
expected to be received in exchange for the promised goods or services upon transfer of control of the said goods or services
to the customer.
The Group’s main performance obligation is the sale of goods, for which revenue is recognized at the time of shipment when
the period from the time of shipment to the time of transfer of control of the merchandise or products to the customer is thenormal period for the domestic sale of merchandise or products, applying the alternative treatment set forth in Paragraph 98of the Guidance on Application of the Accounting Standard for Revenue Recognition. For export sales, the Company
recognizes revenue when the risk is transferred to the customer based mainly on the trade terms stipulated in Incoterms, etc.
At foreign subsidiaries, revenue is recognized when the risk is transferred to the customer at the time of shipment or delivery
under contract. For sale of goods, the Company measures revenue by deducting discounts, etc. from the amount expected tobe received in exchange for goods or services.

5

Accounting procedures for retirement benefits
To prepare for the provision of retirement benefits for employees, the Company sets aside an estimated amount for
retirement benefit obligations and pension assets as of the end of the consolidated fiscal year under review.
(a)Period attribution method for expected retirement benefit payments
In calculating retirement benefit obligations, the benefit formula basis is used for attributing the expected retirement
benefit payments to the period up to the end of the consolidated fiscal year under review.

(b)

Method of handling the cost of actuarial gains and losses
Actuarial gains and losses are recognized as expenses starting from the following consolidated fiscal year by thestraight-line method over the average remaining service period of the employees on payroll in the period when suchgains and losses arise (11 to 15 years).

6

Standards for translating significant foreign currency-denominated assets or liabilities into Japanese currency
Monetary claims and liabilities denominated in foreign currencies are translated into Japanese yen at the spot exchange rateon the consolidated balance sheet date, and the translation differences are accounted for as profit (loss).
Assets and liabilities of foreign consolidated subsidiaries are translated into Japanese yen at the spot exchange rate on the
consolidated balance sheet date. Revenues and expenses are translated into Japanese yen at the average exchange rateduring the period, and translation differences are included in foreign currency translation adjustments in the net assets.

7

Amortization method and period for goodwill
Goodwill is amortized by the straight-line method over the estimated period when its effect manifests (5 to 20 years).

13

2. Notes to Changes in Accounting Policies(Adoption of Accounting Standard for Revenue Recognition, Etc.)
The Company has decided to adopt the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) from the beginning of the consolidated fiscal year under review and recognize revenue in the amount expected to be received
in exchange for the promised goods or services upon transfer of control of the said goods or services to the customer.
The Group’s main performance obligation is the sale of goods, for which revenue is recognized at the time of shipment when the
period from the time of shipment to the time of transfer of control of the merchandise or products to the customer is the normal
period for the domestic sale of merchandise or products, applying the alternative treatment set forth in Paragraph 98 of the Guidanceon Application of the Accounting Standard for Revenue Recognition. For export sales, the Company recognizes revenue when therisk is transferred to the customer based mainly on the trade terms stipulated in Incoterms, etc. At foreign subsidiaries, revenue isrecognized when the risk is transferred to the customer at the time of shipment or delivery under contract. For sale of goods, theCompany measures revenue by deducting discounts, etc. from the amount expected to be received in exchange for goods or services.
Regarding the application of the Revenue Recognition Accounting Standard, etc., the Company follows the transitional treatment
as stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The Company has applied the new
accounting policy to the said beginning balance while adding or subtracting the cumulative effect of the retrospective applicationof the new accounting policy prior to the beginning of the consolidated fiscal year under review to or from the retained earnings
at the beginning of the consolidated fiscal year under review. However, there is no impact on the said beginning balance.
The impact on the consolidated financial statements is immaterial. Due to the application of the Revenue Recognition AccountingStandard, etc., a portion of “Advances received” and “Other” that were presented in “Current liabilities” in the consolidated balance
sheet in the previous consolidated fiscal year have been included in “Contract liabilities” from the consolidated fiscal year underreview.

(Adoption of Accounting Standard for Fair Value Measurement, Etc.)
The Company has decided to adopt the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019;
hereinafter referred to as the “Fair Value Measurement Accounting Standard”), etc. from the beginning of the consolidated fiscal
year under review, and apply the new accounting policy prescribed in the Fair Value Measurement Accounting Standard, etc. into
the future in accordance with the transitional treatment as stipulated in Paragraph 19 of the Fair Value Measurement AccountingStandard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019.)
There is no impact of these changes on the consolidated financial statements.

14

3. Notes on Revenue Recognition(1) Revenue breakdown information
Net sales of 70,789 million yen recorded in the consolidated statement of income consist of revenues arising from contracts withcustomers and are primarily performance obligations satisfied at one time, but include some performance obligations that aresatisfied over a certain period of time.
The amount recognized as the performance obligations to be satisfied over a certain period is immaterial.

(2) Underlying information to understand revenue
As the same information is provided in “4. Accounting standards for revenue and expenses,” in “(4) Matters concerning
Accounting Policies,” in “1. Note to the Significant Matters as the Basis for the Preparation of the Consolidated Financial
Statements,” it is omitted.

(3) Information to understand the amounts for the consolidated fiscal year under review and the following consolidated fiscal year
and thereafter
1

Balance, etc. of claims arising from contracts with customers and contract liabilities(Million yen)
Consolidated fiscal year under review
Balance at beginning of the

Balance at end of the fiscal year

fiscal year
Claims arising from contracts with customers
Contract liabilities

9,888

12,294386

584

Contract liabilities are the amount of consideration received from customers before the Group sells goods to them, and it
represents the balance for which performance obligations are not yet satisfied as of the end of the fiscal year.
The amount of revenue recognized in the consolidated fiscal year under review that was included in the beginning balanceof contract liabilities was 314 million yen.

2

Transaction prices allocated to remaining performance obligations
The Group applies a practical shortcut method to the note on the transaction prices allocated to remaining performanceobligations and does not include in the note any contracts with an initial expected term of one year or less.

15

4. Notes on Accounting Estimates
Impairment of goodwill, trademark rights and customer-related assets for the APEM Group(1) Amounts recorded in consolidated financial statements
Trademark right

2,383

million yen

Customer-related assets

7,587

million yen

Goodwill

11,593

million yen (of those, goodwill for the APEM Group was 11,354 million yen)

(2) Other information that contributes to the understanding of the users of consolidated financial statements with regard to the content
of the estimate
The Group records goodwill, trademark rights and customer-related assets in the consolidated financial statements in connection
with its acquisition of shares in APEM Group, which is engaged in the industrial switch business and other businesses globally.
The Group performs grouping of the above-mentioned goodwill, trademark rights and customer-related assets by reporting
segment in Japan, the Americas, EMEA and Asia-Pacific.
During the consolidated fiscal year under review, demand has been recovering rapidly in each area due to economic recovery
from the effects of the global economic downturn caused by the pandemic. However, some asset groups have yet to recover tothe level of the assumed business plan. As a result of identifying signs of impairment and comparing the carrying value with theaggregate undiscounted future cash flows derived from the asset group over the remaining amortization period of goodwill, theCompany determined that no impairment loss would be recognized in any asset group as the aggregate undiscounted future cash
flows exceed the carrying value.
The undiscounted future cash flows are estimated based on the following assumptions.
･ For business plans for the next three years, the Company calculates future cash flows based on the business plan approved bymanagement, after incorporating certain reasonable risks.
･ For future cash flows for periods in excess of the business plan, the Company calculates them primarily by factoring in sales
growth rates corresponding to economic growth rates, and assuming a constant profit ratio.
For example, if assumptions need to be revised, such as those where COVID-19 spreads again or expected synergies from theacquisition of the APEM Group cannot be fully realized, the Company may recognize an impairment loss in the following
consolidated fiscal year, and this may have a material impact on the consolidated financial statements.

5. Notes to the Consolidated Balance Sheet
Accumulated depreciation of property, plant and equipment

31,846 million yen

16

6. Notes to the Consolidated Statements of Changes in Shareholders’ Equity(1) Type and total number of shares outstanding at the end of the consolidated fiscal year under review
Common shares

33,224,485(2) Number of treasury shares at the end of the consolidated fiscal year under review
Beginning of theType of sharesconsolidated fiscal year

Increase

Decrease

under review
Common shares

3,231,165(shares)

1,000,275

End of the consolidated
fiscal year under review

14,5004,216,940(Overview of the reasons for changes)
The breakdown of the increase is an increase of 1 million shares due to purchase of treasury shares and an increase of 275
shares due to purchase of shares less than one unit
The breakdown of the decrease is a decrease of 14,500 shares due to the exercise of stock options(3) Matters concerning dividends
1

Amounts paid as dividends
Resolution

2

Type ofsharesMay 14, 2021

CommonBoard of Directors

sharesNovember 2, 2021

CommonBoard of Directors

sharesTotal amount of
Amount ofdividends (million dividend per share
yen)
(yen)
749

1,200

25

Record date

March 31, 2021

Date to come into effectMay 31, 2021

40 September 30, 2021 November 26, 2021

Dividends that have a record date in the consolidated fiscal year under review, but which come into effect in the next
consolidated fiscal year
Resolution
May 13, 2022
Board of Directors

Type ofsharesCommonsharesTotal amount of
Amount ofdividends (million dividend per share
yen)
(yen)
1,740

60

Record date

March 31, 2022

Date to come into effectMay 30, 2022

Dividend payments are planned to be funded by retained earnings.

(4) Type and number of shares to be issued upon exercise of stock acquisition rights (excluding stock acquisition rights for which
the first day of the exercise period has not yet arrived) as of the end of the consolidated fiscal year under review
Common shares

60,50017

7. Notes on Financial Instruments(1) Matters concerning the status of financial instruments
The Group invests in highly secured financial instruments and procures funds by borrowing from financial institutions such as
banks.
The Group mitigates customer credit risk concerning trade receivables such as notes and accounts receivable–trade andelectronically recorded monetary claims–operating according to the Credit Management Regulations. Trade receivables
denominated in foreign currencies are exposed to foreign exchange fluctuation risks, so the Group uses forward exchange
contracts to avoid future foreign exchange fluctuation risks.
Investment securities mainly consist of shares related to business or capital alliances with business partners, and the fair value oflisted stocks is checked quarterly.
Trade payables such as notes and accounts payable–trade and electronically recorded obligations–operating are all due within
one year. Trade payables denominated in foreign currencies are exposed to foreign exchange risks but are always within the scopeof accounts receivable in the same currency unit.
For derivative transactions, the Group uses forward exchange contracts within the scope of ordinary transactions for the purposeof avoiding future foreign exchange fluctuation risks related to receivables and payables denominated in foreign currencies. In
addition, since the Group’s counterparties to forward exchange contracts, etc. are all domestic banks with high credit ratings, theGroup recognizes that there is little risk of default by such counterparties. The Director in charge supervises derivativetransactions in accordance with the policy determined by the Management Committee, and the Accounting Department executesand manages the transactions. The status of implementation is reported to the President each time a transaction is executed.

(2) Fair value, etc. of financial instruments
Amounts recorded in the consolidated balance sheet, fair values and differences of the financial instruments as of March 31, 2022
are as follows. Please note that shares, etc. without market price and investments in partnerships, etc. are not included in thefollowing table. (See (3) (Note 2).)
Notes are omitted as cash and deposits, notes and accounts receivable–trade, electronically recorded monetary claims–operating,notes and accounts payable–trade, electronically recorded obligations–operating, and short-term borrowings are settled in a shortperiod of time and their fair values approximate their carrying values.
(Million yen)Amount recorded in the

Fair value (*)

Difference

consolidated balance sheet (*)
Investment securities

206

206

-

Total assets

206

206

-

Current portion of long-term(20,365)(20,335)-29(20,365)(20,335)

-29

(276)

(276)

-

(276)

(276)

-

borrowings and long-term borrowings
Total liabilities
Derivative transactions
Total derivative transactions(*) Amounts recorded as liabilities are indicated in parentheses.

18

(3) Matters concerning the breakdown, etc. of fair values of financial instruments by level
The Company categorizes fair values of financial instruments into the following three levels based on the observability andsignificance of the inputs used to calculate fair values.
Level 1 fair values: Fair values calculated based on the (unadjusted) quoted price of the same asset or liability in an active market
Level 2 fair values: Fair values calculated using directly or indirectly observable inputs other than Level 1 inputs
Level 3 fair value: Fair values calculated using significant unobservable inputs
If multiple inputs are used that have significant influence on the determination of fair values, the Company classifies fair values
into the lowest level of priority in calculating fair values among the levels to which those inputs belong respectively.
1

Financial assets and liabilities whose fair value shall be the amount recorded in the consolidated balance sheet(Million yen)
Level 1

2

Level 2

Level 3

Total

Investment securities

206

-

-

206

Total assets

206

-

-

206

Derivative transactions

-

(276)

-

(276)

Total derivative transactions

-

(276)

-

(276)

Financial assets and liabilities whose fair value shall not be the amount recorded in the consolidated balance sheet(Million yen)
Level 1
Current portion of long-term

Level 2

Level 3

Total-

(20,365)-(20,365)-(20,365)-(20,365)

borrowings and long-termborrowings
Total liabilities(Note 1) Explanation of valuation techniques and inputs used to calculate fair values
Investment securities
Listed stocks are based on the price on the exchange. As listed stocks are traded in active markets, their fair values areclassified as Level 1 fair values.
Current portion of long-term borrowings and long-term borrowings
Fair values of the current portion of long-term borrowings and long-term borrowings are calculated using the discounted
present value method based on the total amount of principal and interest, the remaining term of the debts, the interest
rate on government bonds, and credit risks. The fair values are classified as Level 2 fair values.
Derivative transactions
Fair values of currency swaps are calculated using the discounted present value method using observable inputs such as
interest rates and exchange rates, and the fair values are classified as Level 2 fair values.

19Derivative transactions not designated for hedge accounting
Category

Type ofContract value,

Contract value,

Fair value

Valuation gaintransactions

etc. (million

etc. that exceeds(million yen)(loss) (million

yen)

one yearyen)(million yen)Non-market

Currency swap

4,847

3,508

-276

-276

transactions(Note 2) The amounts of shares, etc. without market price and investments in partnerships, etc. recorded in the consolidatedbalance sheet are as follows.
(Million yen)
Category

Amount recorded in the
consolidated balance sheet

Shares, etc. without market price (*1)

109

Investments in partnerships, etc. (*2)459(*1) Shares, etc. without a market price include unlisted stocks, and they are not subject to fair value disclosure in accordancewith Paragraph 5 of the “Guidance on Disclosures about Fair Value of Financial Statements” (ASBJ Guidance No. 19,
March 31, 2020).
(*2) Investments in partnerships, etc. are silent partnerships and limited liability partnerships. These are not subject to fairvalue disclosure in accordance with Paragraph 27 of the “Guidance on Application of Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019).

8. Notes on Per-share Information(1) Net asset amount per share*

1,677.51 yen

The basis for calculating net assets per share is as follows.
Net assets in the consolidated balance sheet

49,008 million yen

Stock acquisition rights

311 million yen

Non-controlling interests

37 million yen

Number of shares of common stock at the end of the period used for264.12 yen(2) Profit per share*

29,007,545

The basis for calculating profit per share is as follows.
Profit in the consolidated statement of income

7,896 million yen

Amount not attributable to common shareholders
Profit for common shares- million yen
7,896 million yen

Average number of common shares outstanding during the period

20

29,895,610

Non-consolidated Statements of Changes in Shareholders’ Equity
From April 1, 2021
to March 31, 2022

(Million yen)
Shareholders’ equity

Legal capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of the fiscal year

10,056

Capitalsurplus

5,000

Other capitalsurplus

Total capitalsurplus

4,118

9,118

Reserve fortax-purpose
reduction
entry of noncurrent assets

533

TreasurysharesTotal
retainedearnings

Retainedearnings
brought
forward(5,329)Total
shareholders’equity14,726

15,26029,106(1,949)(1,949)(1,949)

217

-

-

6,347

6,347

6,347

Change in the fiscal year
Dividends of surplus-

Reversal of reserve for tax-purpose
reduction entry of non-current assets-

Profit (loss)-

Acquisition of treasury shares--(2,453)(2,453)

15

-

24

39

15

Disposal of treasury shares(Net) change in items other than theshareholders’ equity in the fiscal year

(217)

-

-

-

-

-

Total change in the fiscal year

-

-

15

15

(217)

4,615

4,397

(2,429)1,983

Balance at end of the fiscal year

10,056

5,000

4,134

9,134

316

19,342

19,658(7,759)31,089Valuation and translation
adjustments

Balance at beginning of the fiscal year

Valuationdifference on
available-forsale
securities

Total
valuation andtranslation
adjustments

110

110

Stock
acquisitionrightsTotal net
assets148

29,364

Change in the fiscal year
Dividends of surplus-(1,949)

Reversal of reserve for tax-purpose
reduction entry of non-current assets--

Profit (loss)

-

6,347

Acquisition of treasury shares-(2,453)

Disposal of treasury shares-

39(Net) change in items other than theshareholders’ equity in the fiscal year

(42)

(42)

162

120

Total change in the fiscal year

(42)

(42)

162

2,103

Balance at end of the fiscal year

67

67

311

31,46821

Non-consolidated Notes
1. Notes to Matters concerning Significant Accounting Policies(1) Evaluation standards and methods for securities
1

Shares of subsidiaries and affiliates

2

Other securities:

Stated at cost based on the moving-average method

Securities other than shares, etc. without market price Market value method (all valuation differences are reported as acomponent of net assets, and the cost of securities sold is calculatedby the moving-average method)
Shares, etc. without market price(2) Evaluation method for derivative transactions

Stated at cost based on the moving-average method
Market value method(3) Evaluation standards and method for inventories
Stated at cost based mainly on the periodic average method (calculated after book value is written down based on a decrease inprofitability).
(4) Methods of depreciation and amortization for non-current assets
1

Property, plant and equipment (excluding leased assets)

Depreciation is calculated by the straight-line method.

The useful lives are mainly as follows.

2

Intangible assets (excluding leased assets)

Buildings

6 to 47 years

Structures

7 to 32 years

Machinery and equipment

7 to 12 years

Vehicles4 to 6 years

Tools, furniture and fixtures

2 to 17 years

Depreciation is calculated by the straight-line method.
Depreciation of software for internal use is calculated by thestraight-line method based on the internally estimated useful lives(5 years).

3

Leased assets

Leased assets related to finance lease transactions that do nottransfer ownership
Calculated by the straight-line method, with lease periods of such
assets being useful lives, and residual values being zero.

4

Goodwill

Goodwill is amortized by the straight-line method over theestimated period when its effect manifests (5 years).

(5) Accounting standards for provisions
1

Provision for doubtful accounts

To prepare for possible losses on accounts receivable, the Company
sets aside an amount that is expected to be irrecoverable, after it
considers the possibility of recoverability of (a) general accounts
receivable, by actual default ratio, and (b) specific accounts
receivable where recoverability is in doubt, on a case-by-case basis.

2

Provision for retirement benefits

To prepare for the provision of retirement benefits for employees,
the Company sets aside an estimated amount for retirement benefit
obligations and pension assets as of the end of fiscal year underreview.

22

(a) Period attribution method for expected retirement benefit
payments
In calculating retirement benefit obligations, the benefit
formula basis is used for attributing the expected retirement
benefit payments to the period up to the end of the fiscal year.
(b) Method of handling the cost of actuarial gains and losses
Actuarial gains and losses are recognized as expenses startingfrom the following fiscal year by the straight-line method over
the average remaining service period of the employees on
payroll in the period when such gains and losses arise (11 to 15
years).
(6) Accounting standards for revenue and expenses
In accordance with the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020;

hereinafterreferred to as the “Revenue Recognition Accounting Standard” ), the Company recognizes revenue in the amount expected to bereceived in exchange for the promised goods or services upon transfer of control of the said goods or services to the customer.
The Company’s main performance obligation is the sale of goods, for which revenue is recognized at the time of shipment when
the period from the time of shipment to the time of transfer of control of the merchandise or products to the customer is thenormal period for the domestic sale of merchandise or products, applying the alternative treatment set forth in Paragraph 98 of
the Guidance on Application of the Accounting Standard for Revenue Recognition. For export sales, the Company recognizes
revenue when the risk is transferred to the customer based mainly on the trade terms stipulated in Incoterms, etc. For sale ofgoods, the Company measures revenue by deducting discounts, etc. from the amount expected to be received in exchange forgoods or services. Please note that other parties are involved in some sales. As the nature of this involvement is considered mainly
as an agent, revenue is recognized in the amount of the consideration received from customers less payments to suppliers. With
respect to supply-for-a-fee transactions, the Company is not aware of the extinction of the supplied materials as we have theobligation to repurchase such materials.
(7) Standards for translating significant foreign currency-denominated assets or liabilities into Japanese currency
Monetary claims and liabilities denominated in foreign currencies are translated into Japanese yen at the spot exchange rate on
the balance sheet date, and the translation differences are accounted for as profit (loss).
(8) Accounting procedures for retirement benefits
Accounting procedures adopted for unrecognized actuarial gains and losses associated with retirement benefits are different fromthose in the consolidated financial statements.

23

2. Notes to Changes in Accounting Policies(Adoption of Accounting Standard for Revenue Recognition, Etc.)
The Company has decided to adopt the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
from the beginning of the fiscal year under review and recognize revenue in the amount expected to be received in exchange for thepromised goods or services upon transfer of control of the said goods or services to the customer.
The Company’s main performance obligation is the sale of goods, for which revenue is recognized at the time of shipment when the
period from the time of shipment to the time of transfer of control of the merchandise or products to the customer is the normal
period for the domestic sale of merchandise or products, applying the alternative treatment set forth in Paragraph 98 of the Guidanceon Application of the Accounting Standard for Revenue Recognition. For export sales, the Company recognizes revenue when therisk is transferred to the customer based mainly on the trade terms stipulated in Incoterms, etc. For sale of goods, the Company
measures revenue by deducting discounts, etc. from the amount expected to be received in exchange for goods or services. Please
note that other parties are involved in some sales. As the nature of this involvement is considered mainly as an agent, revenue isrecognized in the amount of the consideration received from customers less payments to suppliers. With respect to supply-for-a-fee
transactions, the Company is not aware of the extinction of the supplied materials as we have the obligation to repurchase suchmaterials.
Regarding the application of the Revenue Recognition Accounting Standard, etc., the Company follows the transitional treatment
as stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The Company has applied the new
accounting policy to the said beginning balance while adding or subtracting the cumulative effect of the retrospective application of
the new accounting policy prior to the beginning of the fiscal year under review to or from the retained earnings at the beginning of
the fiscal year under review. However, there is no impact on the said beginning balance.
As a result, net sales fell by 2,440 million yen, cost of sales was down 2,440 million yen, and accounts receivable for suppliedmaterials decreased 550 million yen, and work in process increased by 550 million yen for the fiscal year under review.
Due to the application of the Revenue Recognition Accounting Standard, etc., a portion of “Advances received” that was presented
in “Current liabilities” in the balance sheet in the previous fiscal year has been included in “Contract liabilities” from the fiscal year
under review.
(Adoption of Accounting Standard for Fair Value Measurement, Etc.)
The Company has decided to adopt the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019;
hereinafter referred to as the “Fair Value Measurement Accounting Standard”), etc. from the beginning of the fiscal year underreview, and apply the new accounting policy prescribed in the Fair Value Measurement Accounting Standard, etc. into the future inaccordance with the transitional treatment as stipulated in Paragraph 19 of the Fair Value Measurement Accounting Standard andParagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no impactof these changes on the non-consolidated financial statements.
3. Notes on Revenue Recognition
Underlying information to understand revenue
As the same information is provided in “(6) Accounting standards for revenue and expenses” in “1. Notes to Matters Concerning
Significant Accounting Policies,” it is omitted.

24

4. Notes on Accounting Estimates
Valuation of shares of subsidiary MMI Technologies SAS(1) Amount recorded in non-consolidated financial statements
Shares of subsidiaries and affiliates: 26,287 million yen (of those, shares of MMI Technologies SAS: 22,156 million yen)
(2) Other information that contributes to the understanding of the users of non-consolidated financial statements with regard to thecontent of the estimate
The Company has acquired shares in MMI Technologies SAS, a holding company of the APEM Group engaged in the industrial
switch business and other businesses globally, and has recorded shares of subsidiaries and affiliates in the non-consolidated
financial statements.
In view of the complementarity of the APEM Group in terms of regional characteristics, business model and market strategy, theCompany believes that making the APEM Group a subsidiary will generate synergies for the Group, and has acquired shares of
MMI Technologies SAS at a price that is expected to generate excess earning capacity. As such, the acquisition price of MMI
Technologies SAS shares includes a portion that values the excess earning capacity.
During the fiscal year under review, the Company assessed MMI Technologies SAS shares by comparing the carrying value withthe real value reflecting the excess earning power. As a result, no damage was found to the excess earning power. Therefore, theCompany has determined that there will be no significant decrease in the real value. For example, if assumptions need to berevised, such as those where COVID-19 spreads again or expected synergies from the acquisition of the APEM Group cannot be
fully realized, the Company may recognize a loss on valuation of shares of subsidiaries and associates in the following fiscal
year, and this may have a material impact on the non-consolidated financial statements.
5. Notes to the Non-consolidated Balance Sheet(1) Accumulated depreciation of property, plant and18,128 million yen

equipment(2) Assets and liabilities to affiliates include the following, in addition to those listed separately.
Long-term monetary claims

29 million yen

Short-term monetary claims

3,521 million yen

Long-term monetary obligations

11 million yen

Short-term monetary obligations

1,347 million yen(3) Guarantee obligations
IDEC Factory Solutions Corporation

800 million yen

6. Notes to the Non-consolidated Statement of Income(1) Amounts of transactions with affiliates
Operating transactions
Net sales

7,445 million yen

Purchase

4,461 million yen

Other2,984 million yen

Non-operating transactions

2,564 million yen

7. Notes to the Non-consolidated Statements of Changes in Shareholders’ Equity
Number of treasury shares as of the end of the fiscal year under review
Common shares

4,216,940

25

8. Notes to Tax-Effect Accounting(Breakdown of main reasons for existence of deferred tax assets and deferred tax liabilities)(Deferred tax assets)
Accrued enterprise tax

106 million yen

Inventories

101 million yen

Provision for doubtful accounts

11 million yen(Property, plant and equipment)

18 million yen

Investment securities

14 million yen

Shares of subsidiaries and affiliates

60 million yen

Accrued expenses

280 million yen

Provision for retirement benefits

264 million yen

Asset retirement obligations

2 million yen

Other

141 million yen

Subtotal of deferred tax assets

1,001 million yen

Valuation reserve-102 million yen

Total deferred tax assets

899 million yen(Deferred tax liabilities)
Reserve for tax-purpose reduction entry of non-current assets

139 million yen

Retirement cost corresponding to asset retirement obligations

1 million yen

Valuation difference on available-for-sale securities

8 million yen

Enterprise tax refund receivable

3 million yen

Total deferred tax liabilities

151 million yen

Balance: Net deferred tax assets

747 million yen

26

9. Notes to Transactions with Related Parties(1) Subsidiaries and affiliates, etc.
(Million yen)
Share
Type

Name

capital or

Details ofinvestments

businessin capital

Percentage Relationshipof votingwith related

rightsparties

Details ofTransaction

transaction

amountBalance at
Item

end of the
fiscal year

Short-term
loans

Making ofSubsidiary

MMI
Technologies

3,970

Holdingcompany

Collectionof loans

1,235

1,367

and affiliates

Concurrently

Long-term

serving as
officerfromsubsidiaries

loans
100.0%

receivable

loans
Receipts ofinterest *1

100

receivable
from

2,872

subsidiaries
and affiliates
Sale of theSubsidiaryIDEC
CORPORATION

Company’s

Sale of733

control

100.0%

equipment

products
Concurrently

Sale ofproducts *2

Accounts
2,756

receivable–

1,302

trade

serving as
officer
Sale of the

IDEC
Subsidiary (SHANGHAI)

Company’s

Sale of40

CORPORATION

control

100.0%

equipment

products
Concurrently

Sale ofproducts *2

Accounts
1,611

receivable–

670

trade

serving as
officer

Short-term
loans
Solar power

Affiliate

Limited Liability
Partnership

Making ofgeneration

Sayo IDEC
300

businessandCollectionof loans

60

partnerbusiness

Long-term
loans
Receipts ofinterest*1

1

receivable
fromsubsidiaries
and affiliates*1 The Company determines whether or not to make loans after considering market interest rates.
*2 The Company determines whether or not to sell products after considering market prices, etc.

27

60

and affiliates

Concurrently
serving as

agriculturalfrom
subsidiaries

loans
50.0%

receivable10610. Notes on Per-share Information(1) Net asset amount per share*

1,074.11 yen

The basis for calculating net assets per share is as follows.
Net assets in the balance sheet

31,468 million yen

Stock acquisition rights

311 million yen

Number of shares of common stock at the end of the period used for

29,007,545

calculation of net assets per share
212.32 yen(2) Profit per share*

The basis for calculating profit per share is as follows.
Profit in the statement of income

6,347 million yen

Amount not attributable to common shareholders
Profit for common shares- million yen
6,347 million yen

Average number of common shares outstanding during the period

28

29,895,610