TAKUMA CO., LTD. and Subsidiaries

Consolidated Financial Statements
For the Years ended March 31,
2022 and 2021
Together with Independent
Auditor’s Report

KPMG AZSA LLC
June 2022TAKUMA CO., LTD. and Consolidated Subsidiaries
FINANCIAL HIGHLIGHTS(Years Ended March 31, 2022 and 2021)
Millions of yen
2022
For the year:
Net sales
Operating profit
Ordinary income
Profit before income taxes
Profit attributable to owners of parent
As of year-end:
Total assets
Total net assets
Per share data:
ProfitDiluted profit
Net assets
Cash dividends applicable to the year

¥

2021

134,093
9,929
10,647
10,789
7,435¥

174,536
94,355

146,727
10,474
11,02910,701
7,529$

177,742
90,555

1,426,060
770,931
U.S. dollars
$
0.75
9.50
0.29

Yen
¥

91.53
1,162.87
36.00¥

Thousands of
U.S. dollars
2022

92.73
1,109.87
36.00

1,095,620
81,12586,994
88,15560,747

Note: 1. U.S. dollar amounts are shown solely for the convenience of readers and are translated at the rate of \122.39 to U.S.$1.00,
the exchange rate prevailing at March 31, 2022.
2. Ordinary income is a measure of accounting profit that equals operating profit plus other income minus other expenses,
except for extraordinary items under Japanese GAAP.

Consolidated Balance Sheets
TAKUMA CO., LTD. and Consolidated Subsidiaries
As of March 31, 2022 and 2021
Millions of yen
2022
Cash and deposits (Notes 6 and 8)
Notes and accounts receivable
Notes and accounts receivable – trade (Note 8)
Notes receivable – trade
Accounts receivable – trade
Contract assets
Unconsolidated subsidiaries
and affiliated companies
Other
Allowance for doubtful accounts

Inventories (Note 7)
Other

¥

Land
Buildings and structures       
Less accumulated depreciation

Investment securities (Notes 8, 9 and 10)
Investments in:
Unconsolidated subsidiaries
and affiliated companies
Other
Allowance for doubtful accountsDeferred tax assets (Note 17)
Net defined benefit asset
Other

¥

See accompanying notes.

42,9792021¥

44,422Thousands of
U.S. dollars(Note 1)
2022$

351,168

3,066
30,54648,18583,807-25,049249,582393,702

393
140
(16)
82,314
4,605
4,418
134,316

545
746
(16)
85,0824,466
1,087
135,057

3,209
1,144
(133)
672,553
37,62036,096
1,097,437

2,394
13,74314,09130,228(17,881)
12,3472,502
13,6099,797
25,908(16,148)
9,760

19,557112,288
115,136
246,981(146,099)
100,882

14,485

15,072

118,352

3,250
5,188
(135)
8,303
4,748
39
298
27,873

3,002
7,367
(142)
10,2277,311
48
267
32,92526,55042,389(1,102)
67,83738,796
318
2,438
227,741

174,536¥

177,742$1,426,060

Thousands of
U.S. dollars(Note 1)
2022

Millions of yen
2022
Short-term loans payable (Notes 8 and 11)
Current portion of long-term borrowings (Notes 8 and 11)
Notes and accounts payable (Note 8):
Trade
Unconsolidated subsidiaries
and affiliated companies
Other

Income taxes payable
Advances received
Contract liabilities
Provision for product warranties
Provision for loss on construction contracts
Provision for loss on liquidation of subsidiaries and associates
Other

¥

2021
220
80

¥

5,420
182

$

1,797
654

49,26043,648402,485

316
2,337
51,913
501
8,669
53
1,517
5,751
68,704307
2,525
46,480
2,569
9,349
67
3,946
1,004
7,140
76,1572,580
19,097424,162
4,093
70,833432
12,391
46,992561,354

Long-term borrowings (Notes 8 and 11)
Provision for retirement benefits for directors (and other officers)
Retirement benefit liability (Note 12)
Other

246
10,792439
11,47780,18180
242
10,451257
11,03087,187

2,012
88,175
3,588
93,775655,129

Share capital
Authorized: 321,840,000 shares
Issued: 83,000,000 shares
Capital surplus
Retained earnings
Treasury shares
2,243,777 shares in 2022 and
1,780,446 shares in 2021
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

13,367

13,367109,220

3,872
75,508(2,765)

3,841
70,851(2,088)31,637
616,943(22,594)

89,982
3,957
110
80
(220)
3,927
446

85,971
4,462
36
30
(356)
4,172
412

735,206
32,328904
650(1,798)32,084
3,641

94,35590,555

770,931¥

See accompanying notes.

174,536¥

177,742$1,426,060

Consolidated Statements of Operations
TAKUMA CO., LTD. and Consolidated Subsidiaries        ¥Gross profit
Operating profit (Note 20)
Interest and dividend income
Interest expenses
Gain on sales of investment securities (Note 9)
Settlement package
Provision for loss on liquidation of subsidiaries and associates
Loss on valuation of investment securities
Commitment fees
Loss on disposal of non-current assets
Provision for doubtful accounts
Share of profit of entities accounted for using equity method
Insurance claim income
New factory construction expenses 

Current
DeferredProfitProfit attributable to non-controlling interests
in consolidated subsidiaries
Profit attributable to owners of parent¥

Millions of yen
2022
2021
134,093¥
146,727
107,910
119,927
26,18326,800
16,254
16,326
9,929
10,474 
U.S. dollars(Note 1)2022$
1,095,620
881,689
213,931
132,806
81,125

453
(5)
197
(22)
(46)
(66)
179
300
(355)
225
860

457
(15)
1,504
(850)
(882)
(29)
(149)
(48)
218
21
227

3,697
(44)
1,610
(176)
(372)
(542)
1,461
2,451
(2,901)
1,846
7,030

10,78910,701

88,155

618
2,697
3,315

4,269
(1,122)
3,147

5,052
22,03927,091

7,474

7,554

61,064

39

25

317

7,435

¥

7,529

$

U.S. dollars(Note 1)

Yen
ProfitDiluted profit     See accompanying notes.

¥

91.53
36.00

60,747

¥

92.73
36.00

$

0.75
0.29

Consolidated Statements of Comprehensive Income
TAKUMA CO., LTD. and Consolidated Subsidiaries        Thousands of
U.S. dollars(Note 1)
2022

Millions of yen
2022
Profit  
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income   
Comprehensive income attributed to:
Owners of the parent
Non-controlling interests
See accompanying notes.

2021

¥

7,474

¥

(505)
74
68
136
(227)
7,247

¥

7,189
58

¥

7,554

¥

697
32
44
18
791
8,345

¥

8,309
36

$

61,064$(4,125)
608
555
1,109
(1,853)59,211$

58,742469

      
                           
    
     
    
   
   
           

 
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    
     
   
   
           

            
    
     
    
   
   
             
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    








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

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

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




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


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


  
     
  

  

 

 

 

 



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
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








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        



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
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
   

 



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

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



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


Consolidated Statements of Cash Flows
TAKUMA CO., LTD. and Consolidated Subsidiaries        Millions of yen
2022
Profit before income taxes
Adjustments to reconcile profit before income taxes
to net cash provided by (used in) operating activities:
Depreciation
Loss (gain) on sale of investment securities
Loss (gain) on disposal of non-current assets
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in provision for loss on liquidation of subsidiaries and associates
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities¥

10,7892021¥

10,701Thousands of
U.S. dollars(Note 1)2022$

88,155

962
(197)
66
8
(2,430)(1,003)
536
(453)
5
(179)
1,458
(138)
(108)
3,746
(2,633)
2,691
13,120522(8)(4,634)
9,000

1,037
(1,504)
149
210
545
170
366
(457)
15
(218)
(11,551)
215
238
539
2,528
(1,797)
1,186
527
(14)
(3,380)(1,681)

7,858(1,610)542
64(19,854)(8,200)4,378(3,697)44(1,461)
11,911(1,129)(883)
30,604(21,514)
21,987
107,195
4,269(68)(37,858)
73,538Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Collection of loans receivable
Other
Net cash provided by (used in) investing activities(246)(1,510)
117
(61)
(353)
377
(611)
171
(279)
(2,395)(59)(2,288)46(67)(1,428)
1,870
(50)
140
(218)
(2,054)(2,015)(12,342)958(503)(2,883)
3,084(4,991)
1,401(2,277)(19,568)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities(5,200)(182)(747)(2,925)(25)(33)(9,112)

4,950
(80)
(1)
(2,922)
(21)
(23)
1,903

(42,487)(1,489)(6,110)(23,899)
(196)
(273)
(74,454)46(2,461)
42,958
747
41,24437(1,795)44,75342,958374(20,110)
350,993
6,109
336,992

Net increase (decrease) in cash and cash equivalents
Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation¥
See accompanying notes.

¥$

Notes to Consolidated Financial Statements

TAKUMA CO., LTD. and Consolidated Subsidiaries

1. Basis of presenting financial statements
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Law and its related accounting regulations and in conformity with accounting
principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirements fromInternational Financial Reporting Standards.
The accounts of overseas subsidiaries are based on their accounting records maintained in conformity with generally accepted
accounting principles prevailing in the respective countries of domicile. However, necessary adjustments are made upon
consolidation. The accompanying consolidated financial statements have been restructured and translated into English from theconsolidated financial statements of TAKUMA CO., LTD. (the “Company”) prepared in accordance with Japanese GAAP and
filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Japanese Financial Instruments
and Exchange Law. Some supplementary information included in the statutory Japanese language consolidated financial
statements, but not required for fair presentation, is not presented in the accompanying consolidated financial statements.
The translations of the Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside
Japan, using the prevailing exchange rate at March 31, 2022, which was ¥122.39 to U.S.$1.00. The translations should not be
construed as representations that the Japanese yen amounts have been, could have been or could in the future be converted into
U.S. dollars at this or any other rate of exchange.

2. Summary of significant accounting policies(1) Principles of consolidation
The consolidated financial statements include the accounts of the Company and its 34 significant subsidiaries (the “Companies”).
Imet Co., Ltd., Energy Mate Co., Ltd., Kashihara High Trust Co., Ltd., and Uwajima High Trust Co., Ltd., which wereunconsolidated subsidiaries, have been included in the consolidation from the consolidated fiscal year ended March 31, 2022
because of their increased significance. Hakodate High Trust Co., Ltd., and Shida High Trust Co., Ltd., which were newly
established subsidiaries, have also been included in the consolidation from the consolidated fiscal year ended March 31, 2022.
All significant intercompany transactions and unrealized profits among the Companies have been eliminated in consolidation.
Investments in certain significant affiliates over which the Company and/or its subsidiaries are able to exert influence to amaterial degree with regard to financial and operating decision making, other than consolidated subsidiaries, are accounted for by
the equity method after the elimination of unrealized intercompany profits.
Investments in the remaining unconsolidated subsidiaries and affiliated companies are not accounted for by the equity method
because of the immaterial effect on the consolidated financial statements. Therefore, such investments are carried at cost,adjusted for any substantial and non-recoverable decline in value. Income from those unconsolidated subsidiaries and affiliatedcompanies is recognized only when the Companies receive dividends therefrom.
(2) Foreign currency translation
Revenue and expense are translated at the rates of exchange prevailing on the transaction date. Assets and liabilities denominatedin foreign currencies are generally translated at the rate of exchange prevailing at the balance sheet date, and the resulting
translation gains and losses are included in earnings.
The financial statements of a consolidated overseas subsidiary are translated into Japanese yen at the year-end rate, except thatnet asset accounts are translated at historical rates and income statement items resulting from transactions with the Company aretranslated at rates used by the Company. The resulting translation adjustments are shown as “Foreign currency translation
adjustment,” a separate component of net assets.
(3) Cash and cash equivalents
In preparing the consolidated statements of cash flows, cash and cash equivalents include cash on hand, readily available deposits
and short-term investments with maturities not exceeding three months from the date of acquisition and which have high liquidity
and low risk of price fluctuation.
(4) Securities
Equity securities issued by subsidiaries and affiliated companies which are not consolidated or accounted for using the equity
method are stated at cost determined by moving average cost. Available-for-sale securities with available fair market value arestated at fair market value, and unrealized gains and losses on these securities are reported net of applicable income taxes as aseparate component of net assets. Realized gains and losses on the sale of such securities are computed at cost using moving
average cost. Available-for-sale securities with no available fair market value are stated at cost determined by moving average
cost.
If the market value of equity securities issued by unconsolidated subsidiaries and affiliated companies or available-for-salesecurities declines significantly, such securities are stated at fair market value and the difference between fair market value andthe carrying amount is recognized as a loss in the period of the decline. If the fair market value of such securities is not readily
available, such securities should be written down to net asset value with a corresponding charge in the income statement in theevent the net asset value declines significantly. In these cases, the fair market value or the net asset value will be the carrying
amount of the securities at the beginning of the next year.

(5) Allowance for doubtful accounts
The Companies provide an allowance for doubtful accounts by estimating the uncollectible amounts of certain individual
accounts and by applying a percentage based on collection experience to the remaining receivables.
(6) Inventories
Merchandise and finished goods are stated at cost using the moving average method. Work-in-process is stated at cost
determined by the identified cost method. Materials and supplies are stated at cost using the average method. For theseinventories, the carrying amounts on the balance sheet are written down to reflect decreases in profitability.
(7) Property, plant and equipment
Property, plant and equipment are depreciated principally using the declining balance method over the estimated useful life of theasset. However, buildings acquired after March 31, 1998 and facilities attached to buildings and structures acquired after March
31, 2016 are depreciated using the straight-line method. The range of useful lives is principally from 3 to 60 years for buildings
and structures and from 2 to 20 years for machinery, equipment and other. Maintenance and repairs, including minor renewals
and improvements, are charged to income as incurred.
Lease assets under finance leases in which the ownership of the lease assets is not transferred to the lessee are depreciated using
the straight-line method over the lease term with an assumption of no residual value.
(8) Provision for loss on construction contracts
For sales orders on hand at the balance sheet date for projects in which the estimated cost is expected to exceed the price of theorder by a wide margin, an provision for loss on construction contracts is recognized at the estimated aggregate amount.
(9) Provision for product warranties
Provision for product warranties is based on estimated amounts of expenditure in the warranty period after products aredelivered.
(10) Provision for loss on liquidation of subsidiaries and associates
To prepare for the loss on liquidation of subsidiaries and associates, a provision is made based on the estimated amounts.
(11) Provision for retirement benefits for directors (and other officers)
Directors are generally entitled to receive retirement benefits based on the Companies’ internal rules. The Companies provide anallowance for directors’ retirement benefits based on the amount that would be required if all directors retired at the balance sheet
date.
(12) Retirement benefit liability
In calculating retirement benefit obligations, the method of attributing expected benefits to periods employs principally a benefit
formula basis. Actuarial gains and losses are recognized in expenses using the straight-line method principally over 10 years
commencing with the following period. Prior service costs are recognized in expenses using the straight-line method principallyover 10 years.
(13) Revenue recognition
For construction contracts, that met one of the following criteria, it is determined that the performance obligations in suchcontracts are satisfied over time. The progress rate for fulfillment of the performance obligation is estimated and revenue isrecognized based on the progress, rate over time.
I. by fulfilling the obligations in the contract with the customer, the asset arises or the value of the asset increases and thecustomer obtains control of the asset as the asset arises or the value of the asset increases,
II. by fulfilling obligations in a contract with a customer, the asset that cannot be diverted to another use arises, and also thecompany has the enforceable right to receive compensation for the portion of the contract with the customer that has fulfilled
its obligations.
Estimates of the progress is measured on the basis of the construction costs incurred by the end of each reporting period relative
to the total expected construction costs. However, adopting alternative treatment, for construction contracts for which the period
from the commencement date of the contract to the date when it is expected that the performance obligation will be fully satisfied
is very short, revenue is not recognized over a certain period of time, and revenue is recognized at the time the performanceobligation is judged to be satisfied. Incidentally, the consideration for the transaction is mainly received in stages during thecontract period separately from the fulfillment of the performance obligation, and the remaining amount is received withinapproximately one year after all the performance obligations are satisfied, and the important financial factor is not included.
For Operation control and O&M contracts, the customer receives the benefits as we fulfill the obligations in the contract with thecustomer, therefore it is determined that the performance obligations in such contracts are satisfied over time. Since we have theright to receive from the customer the amount of consideration that directly corresponds to the value to the customer for the
portion that has been fulfilled so far, we recognize the revenue by the amount that we have the right to claim.
Incidentally, the consideration for the transaction is received within approximately one year after the performance obligation issatisfied, and does not include important financial factors.

(14) Income taxes
The Companies are subject to corporation tax, inhabitants tax and enterprise tax based on taxable income. The Companies
recognize the tax effects of the temporary differences between the carrying amounts of assets and liabilities for tax and financial
reporting. The provision for income taxes is computed based on the pretax income of each of the Companies, with certain
required adjustments. The asset-liability approach is used to recognize deferred tax assets and liabilities for the expected future
tax consequences of temporary differences.
The Companies have adopted the consolidated tax return system.
Application of tax effect accounting for the transition from the consolidated tax payment system to the group taxation system
Having regard to paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System” (PITF No.39, March 31, 2020), the Company and its domestic
consolidated subsidiaries did not follow paragraph 44 of “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance
No. 28, February 16, 2018) but applied provisions of pre-amended tax laws when calculating the amounts of deferred tax assets
and liabilities that relate to transitioning to the group taxation system and related amendments of tax laws for transitioning to thesingle tax payment system. “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (PITF
No. 42, August 12, 2021), which sets out accounting and disclosure of corporation and local taxes and tax effect accounting
under the group tax sharing system, will be applied from the beginning of the year ending March 31, 2023.
(15) Net income and cash dividends per share
Net income per share is computed based on the weighted average number of shares of share capital outstanding during eachperiod. Diluted net income per share is computed with the assumption that all convertible bonds were converted into share capitalat the beginning of each period. Cash dividends per share represent interim dividends declared by the Board of Directors during
each year and year-end dividends approved by the shareholders at the annual meeting held subsequent to the end of the fiscal
year.
(16) Derivatives and hedge accounting
The Companies generally state derivative financial instruments at fair value and recognize changes in the fair value as gains orlosses unless the derivative financial instruments are used for hedging purposes. If derivative financial instruments are used ashedges and meet certain hedging criteria, the Companies generally defer recognition of gain or loss resulting from a change in thefair value of the derivative financial instrument until the related loss or gain on the hedged item is recognized.
The Companies use currency forward contracts to hedge accounts receivable and payable denominated in foreign currencies(mainly U.S. dollars) against the risk of fluctuation in exchange rates that comes from foreign currency transactions.
Certain foreign exchange contracts are subject to appropriation if they satisfy the requirements of appropriation treatment.
Interest rate swaps that qualify for hedge accounting and meet specific matching criteria are not re-measured at market value.
(17) Reclassifications
Certain prior year amounts have been reclassified to conform to the 2022 presentation.

3.Significant accounting estimates(Net sales where the performance obligations in construction contracts are satisfied over a certain period of time and provision
for loss on construction contracts)(1) Carrying amounts in the current year’s financial statements
Net sales that the performance obligations in construction contracts are satisfied over a certain period amounted to ¥ 44,277
million ($ 361,773 thousand) for the years ended March 31, 2022 and amounted to ¥ 40,833 million for the years ended March
31, 2021.
Provision for loss on construction contracts amounted to ¥ 1,517 million ($ 12,391 thousand) for the years ended March 31, 2022
and amounted to ¥ 3,946 million for the years ended March 31, 2021.
(2) Information on the nature of significant accounting estimates for identified items
The performance obligations in such construction contracts are satisfied over time, therefore revenue in The Takuma Group isrecognized based on the progress towards complete satisfaction of the performance obligation. Estimates of the progress ismeasured on the basis of the construction costs incurred by the end of each reporting period relative to the total expected
construction costs. In addition, in order to prepare for the loss of order construction, the estimated amount of construction costs
generated significantly exceeds the order amount. Excess amounts that are expected to occur after the consolidated fiscal year arerecorded as provision for loss on construction contracts.
In calculating the estimated cost of construction, information and conditions available as of the end of the current consolidated
fiscal year for each individual project (materials and equipment, construction prices, labor costs, specifications, construction
methods, etc.) are the basis for calculation.
However, after-sales service for various construction and delivery plants provided by the Group, the specifications, and someperiods from order to delivery and service delivery are long-term. Therefore, changes in the basis of calculations due toconstruction issues and changes in economic conditions will have a significant impact on consolidated financial statements forthe next consolidated fiscal year.
(Deferred tax assets)(1) Carrying amounts in the current year’s financial statements
Deferred tax assets was amounted to ¥ 4,748 million ($ 38,795 thousand) for the years ended March 31, 2022 and amounted to¥ 7,311 million for the years ended March 31, 2021.

(2) Information on the nature of significant accounting estimates for identified items
The Takuma Group reasonably estimates future taxable income based on business plans for deferred tax assets and the amountthat is expected to be recoverable.
Each group company determines the classification based on accounting standards, and the expected amount recoverable iscalculated based on future taxation within a reasonable estimate period according to the classification and the scheduling ofincome and one-time difference in future subtraction.
However, due to changes in the business environment because of a decrease in demand, etc., the estimated period based on theclassification and the estimated amount of future taxable income and deferred tax assets will be increased or reduced, which will
have a material impact on the consolidated financial statements for the next consolidated fiscal year.

4.Changes in accounting policies(Adoption of “Accounting Standard for Revenue Recognition”)
The Company and its subsidiaries adopted “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020), the Revenue Recognition Standards, from the beginning of the current consolidated fiscal year, and accordingly adopted
the accounting policy to recognize revenue at an amounts expected to be received in exchange for the promised goods or services
as the controls of such goods or services are transferred to customers.
For construction contracts in the previous consolidated fiscal year, when the outcome of an individual contract can be estimatedreliably, the domestic companies applied the percentage-of-completion method to work performed during the year. From thecurrent fiscal year, if the performance obligations in such construction contracts are satisfied over time, revenue in The Takuma
Group is recognized based on the progress towards complete satisfaction of the performance obligation. Estimates of the progressis measured on the basis of the construction costs incurred by the end of each reporting period relative to the total expected
construction costs. Incidentally, when it is short period of time from the date of commencement of the transaction in the contract
until the performance obligation is expected to be fully satisfied, as an alternative treatment, we do not recognize revenue over acertain period of time. When we meet the performance obligations completely, we recognize revenue.
The application of such changes in accounting policies follows the transitional treatment prescribed in the proviso of paragraph
84 of the Accounting Standard for Revenue Recognition, such that the new accounting policy was applied from the beginningbalance of retained earnings of the current consolidated fiscal year to add to or deducted from the amount of beginning balance ofretained earnings of the current consolidated fiscal year the cumulative effects of applying retrospectively the new accounting
policy from the beginning of the current consolidated fiscal year.
As a result, there is no impact on profit and loss as of March 31, 2022, and retained earnings at the beginning of the current
consolidated fiscal year.
Because of the application of such changes in accounting policies, Notes and accounts receivable – trade displayed in Current
assets in the consolidated balance sheet of the previous consolidated fiscal year are included in Notes receivable – trade,
Accounts receivable – trade and Contract assets from the current consolidated fiscal year. And from the current consolidated
fiscal year, Advances received that were displayed in Current liabilities will be included in Contract liabilities.
Incidentally, following the transitional treatment prescribed in paragraph 89-2 of the Accounting Standard for Revenue
Recognition, the previous consolidated fiscal year has not been reclassified using the new display method and also Revenue
Recognition notes are not included, following the transitional treatment prescribed of paragraph 89-3 of the Accounting Standard
for Revenue Recognition..
(Adoption of “Accounting Standard for Fair Value Measurement”)
The Company and its subsidiaries adopted “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019), the Accounting Standard for Fair Value Measurement, from the beginning of the current consolidated fiscal year andapplied the new accounting policies prescribed by the Accounting Standard for Fair Value Measurement in the future inaccordance with the transitional provision set out in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the “Accounting Standard for Financial Instruments”(ASBJ Statement No.9,July4,2019). And there is no
impact on the Consolidated Financial Statements.
In addition, fair value information of financial instruments by level are disclosed in the notes of “Financial Instruments”.
However, following the transitional treatment in paragraph 7-4 of “Implementation Guidance on Disclosures about Faire Valueof Financial Instruments” (ASBJ Guidance No.19, July 4, 2019), relevant information for the previous consolidated fiscal year is
not provided.

5. Additional information
As Covid-19 has had no significant effect on the consolidated financial statements for the year ended March 31, 2022, it isassumed that there is no significant effect on the accounting estimates.
If the virus were to have more influence on society and economy than ever, the consolidated financial statements for the next
fiscal year would reflect the influence.

6. Cash and cash equivalents
Amounts of cash and cash equivalents as of March 31, 2022 and 2021 were reconciled with cash and deposits as follows:
Millions of yen

Cash and deposits
Time deposits with maturities exceeding three months
from the date of acquisition
Total cash and cash equivalents

2022¥ 42,979¥(1,735)41,244

Thousands of U.S. dollars

2021¥ 44,422

2022$ 351,168(1,464)42,958(14,176)$ 336,992¥

7. Inventories
Inventories were summarized as follows:
Millions of yen

2022
Merchandise and finished goods
Work-in-process
Materials and supplies
Total inventories

¥
¥

834
2,140
1,631
4,605

Thousands of U.S. dollars

2021
¥
908
1,886
1,672
¥
4,466

2022
6,814
17,483
13,323$ 37,620$

8．Ｆｉｎａｎｃｉａｌ instruments(1) Status of financial instruments(a) Financial instruments policy
Under the Group policy, investments in financial instruments are limited primarily to short-term deposits and bank loans for raising funds. Derivative transactions are used to hedge risks offluctuations in foreign exchange and interest rates and the Companie's do not conduct speculative transactions.
(b) Financial instruments, risks and risk management structure
The Companies are working to reduce customer credit risk associated with notes and accounts receivable and contract assets through customer based due dates and other balance controls
in accordance with the Companies' regulations. Investment securities consist mainly of stocks and are periodically checked for the fair value of the listed shares.
Notes and accounts payables, or operating payables, are due within one year.
Short-term loans payable is primarily for operating funds while long-term borrowings is for capital investment.

To cope with operating receivables and loans exposed to liquidity risk, each Group company prepares monthly cash-flow plans and enters into loan commitment agreements with several
financial institutions for raising working capital flexibly and stably.
(c) Supplementary remarks on fair values of financial instruments
The fair values of financial instruments do not reflect the market risks concerning the derivative trading.
(2) Fair value of financial instruments
Amounts recognized on the consolidated balance sheets, fair values and any differences between them as of March 31, 2022 and 2021, except items for which no fair value was obtainable,
were as follows:
The following summary excludes cash, and deposits, notes and accounts receivable – trade, notes and accounts payable, income taxes payable and short-term loans payable are not included
because the fair values of these instruments approximate their carrying amounts as they are expected to be settled shortly.
（Investment securities）
Millions of yen

Amounts recognized on the consolidated balance sheets
Fair value
Difference2022¥ 14,341
14,341¥-Thousands of U.S. dollars

2021¥ 14,936
14,936¥-2022$ 117,173
117,173$-(Long-term borrowings)
The following excludes long-term borrowings as of March 31, 2022 and is only the current portion of long-term borrowings (80 millions of yen), of which their the fair values approximate
their carrying amounts.
Millions of yen

2022
Amounts recognized on the consolidated balance sheets
Fair value
Difference¥¥-

Thousands of U.S. dollars

2021
¥
262
262
¥
0

2022
$
$

-

Equity securities without market price are not included in (Investment securities).
(Non-listed equity securities)
Millions of yen

Amounts recognized on the consolidated balance sheets
Equity securities

2022
¥
2,672

Thousands of U.S. dollars

2021
¥
2,805

$

2022
21,830(Derivative transactions)
Derivative transactions recorded in other assets and liabilities are presented as a lump sum.
Net claims and debts that arise from derivative transactions are presented on a net basis.

Millions of yen

2022
Amounts recognized on the consolidated balance sheets
Fair value
Difference

¥
¥

159
159
-

Thousands of U.S. dollars

2021
¥
¥

52
52
-

2022
1,301
1,301
$
$

(3) Redemption schedule of monetary assets with contractual maturities and repayment schedule of short-term loans payable and long-term borrowings
As of March 31, 2022
Millions of yen
Less than 1 year

Cash and deposits
Notes receivable
Accounts receivable
Investment securities
Total
Short-term loans payable
Long-term borrowings
Total

¥

¥
¥
¥

42,9793,066
30,851
76,896220
80
300

1 to 2 years¥

2 to 3 years

-

¥
¥

-

¥

¥

3 to 4 years

-

¥
¥

-

¥

¥

4 to 5 years

-

¥
¥

-

¥

¥

¥
¥
¥

More than 5 years

-

¥

¥
¥
¥

800
800
-

As of March 31, 2021
Millions of yen
Less than 1 year

2 to 3 years

3 to 4 years

4 to 5 years

¥

¥

¥

¥

Cash and deposits
Notes and accounts receivable¥

Investment securities
Total¥ 111,655¥

Short-term loans payable
Long-term borrowings
Total

¥

¥

¥

44,422
67,233

1 to 2 years

5,420
182
5,602

16,017
16,017

¥

¥

80
80

¥

-

$

167
167

¥

-

¥

805
805

¥
¥

-

¥
¥
¥

More than 5 years

-

¥

¥
¥
¥

800
800
-

As of March 31, 2022
Thousands of U.S. dollars
Less than 1 year

1 to 2 years

Cash and deposits
Notes receivable
Accounts receivable$ 351,168
25,049252,069

Investment securities
Total$ 628,286$

Short-term loans payable
Long-term borrowings
Total

$

$

$

1,797
654
2,451

$

$

2 to 3 years

-

$
$
$

3 to 4 years-$

4 to 5 years

-

$

$
$
$

$
-

$
$

More than 5 years

-

$

$
$
$

6,536
6,536
-

(4) Fair value information of financial instruments by level of inputs
Based on the observability and the significance of the inputs used to determine fair values, fair value information of financial instruments is presented by categorizing measurements into thefollowing three levels:
Level 1 fair value: the fair value measured by quoted prices of identical assets or liabilities in active markets.
Level 2 fair value: the fair value measured using observable inputs other than Level 1.
Level 3 fair value: fair values measured using unobservable inputs.
When multiple inputs of different categories are used in measuring fair value, the Company and its subsidiaries classified fair values into a category to which the lowest priority is assigned.
(a) financial instruments measured at fair values in the consokidated baalance sheet
As of March 31, 2022
Millions of yen
Level 1

Investment securities
Other investments in securities
Equity securities
Corporate bonds
Derivative transactions
Currency related
Total assets¥¥

13,536
13,536

Level 2¥

Level 3

804

¥

160
964

¥

¥

Total

-

¥

¥

13,536804
160
14,500

As of March 31, 2022
Thousands of U.S. dollars
Level 1

Investment securities
Other investments in securities
Equity securities
Corporate bonds
Derivative transactions
Currency related
Total assets$ 110,601$ 110,601

Level 2

$

$

6,572
1,302
7,874

Level 3

$

$

Total

-

$ 110,601
6,572

-

1,302
$ 118,475(b) Financial instruments other than those measured at fair values in the consolidated balance sheet
Not appliciable(Note) Valuation techniques and inputs used in measuring fair values
Investments in securities classified as current or non-current
Listed equity securities and corporate bonds are measured using quoted prices. The fair value of listed equity securities are classified as level 1, because they are exchanged in active
markets. The fair value of corporate bonds are classified as level 2, because their quoted prices are not considered to be a quoted price in active markets due to their low frequency oftransactions.
Derivative transactions
Derivatives are classified in Level 2 since they are measured at fair value using observable market inputs obtained from financial institutions.

9. Securities(1) Acquisition costs and book values of available-for-sale securities with available fair values as of March 31, 2022 and 2021 were as follows:
As of March 31, 2022
Securities with book values exceeding acquisition costs：
Equity securities
Subtotal
Securities with book values not exceeding acquisition costs：
Equity securities
Debt securities
Subtotal
Total

Acquisition cost

As of March 31, 2021
Securities with book values exceeding acquisition costs：
Equity securities
Subtotal
Securities with book values not exceeding acquisition costs：
Equity securities
Debt securities
Subtotal
Total

Acquisition cost

As of March 31, 2022
Securities with book values exceeding acquisition costs：
Equity securities
Subtotal
Securities with book values not exceeding acquisition costs：
Equity securities
Debt securities
Subtotal
Total

Acquisition cost

¥

¥

¥

¥

$

$

Millions of yen
Book value

6,517
6,517

¥

1,301
828
2,129
8,646

¥

12,542
12,542
995
804
1,799
14,341Millions of yen
Book value

4,927
4,927

¥

2,751
828
3,579
8,506

¥

11,613
11,613
2,515
808
3,323
14,936

Thousands of U.S. dollars
Book value

53,24653,246$ 102,479
102,479

10,626
6,767
17,39370,6398,122
6,572
14,694$ 117,173

Difference
¥

¥

6,025
6,025
(306)
(24)
(330)
5,695

Difference
¥

¥

6,686
6,686
(236)
(20)
(256)
6,430

Difference$$

49,23349,233(2,504)(195)(2,699)46,534(2) Available-for-sale securities sold for the years ended March 31, 2022 and 2021 were as follows:
Millions of yen

2022
Total sales amount
Gains

¥

377
197

Thousands of U.S. dollars

2021
¥
1,870
1,504

¥

2022
3,084
1,610

10. Pledged assets
The following assets were pledged to secure short-term loans payable, long-term borrowings, and ｃontingent liabilities under guarantees for bank loans of affiliated companies and fulfillmentof contracts as of March 31, 2022 and 2021:
Millions of yen

2022
Investment securities
Time deposits as construction contract guarantees
Total

¥
¥

64
64

Thousands of U.S. dollars

2021
¥
150
72
¥
222

2022
$
$

527
527

11. Short-term loans payable and long-term borrowings
Short-term loans payable as of March 31, 2022 and 2021 were as follows:
Millions of yen

2022
SecuredUnsecured

¥

220
220

¥

Thousands of U.S. dollars

2021
¥
5,420
¥
5,420

2022
$
$

1,797
1,797

Current portion of long-term borrowings as of March 31, 2022 and 2021 was as follows:
Millions of yen

2022
SecuredUnsecured

¥

80
80

¥

Thousands of U.S. dollars

2021
¥
¥

2022
182
182

$

654
654

$

Long-term borrowings as of March 31, 2022 and 2021 was as follows:
Millions of yen

2022
SecuredUnsecured¥-¥Thousands of U.S. dollars

2021
¥

2022
80
80

¥

$
$

-

The annual average interest rate applicable to bank loans at March 31, 2022 and 2021 was as follows:
2022
Short-term loans payable
Current portion of long-term borrowings
Long-term borrowings

2021
0.8%
2.2%
1.0%

0.8%
5.4%
0.8%

12. Employees' retirement benefits(1) Outline of adopted retirement benefit scheme
The Company and a part of consolidated subsidiaries provide three types of post-employment benefit plans, unfunded lump-sum payment plans, funded non-contributory pension plans anddefined contribution plan. A part of consolidated subsidaiaries which provide funded non-contributory pension plans and unfunded lump-sum payment plans, calculate retirement benefit
liability and retirement benefit costs applying simplifued method.
(2) Defined benefit plans
Movement in retirement benefit obligations (except plans applying the simplified method) for the years ended March 31, 2022 and 2021 was as follows:
Millions of yen

Balance at April 1, 2022 and 2021
Service cost
Interest cost
Actuarial loss (gain)
Benefits paid
Balance at March 31, 2022 and 2021

2022
¥
9,738
633
52
(67)
(330)
¥ 10,026

Thousands of U.S. dollars

2021
¥
9,392
617
51
106
(428)
¥
9,738

2022
79,566
5,173
426
(545)
(2,698)$ 81,922$

Movement in retirement benefit liability of plans applying the simplified method for the years ended March 31, 2022 and 2021 was as follows:
Millions of yen

2022
Balance at April 1, 2022 and 2021
Retirement benefit costs
Contributions paid by the employer
Benefits paid
Other
Balance at March 31, 2022 and 2021

¥

¥

665
120
(30)
(39)
10
726

Thousands of U.S. dollars

2021
¥
665
113
(29)
(90)
6
¥
665

2022
5,435
983
(243)
(318)
78
$
5,935
$

Reconciliation from retirement benefit obligations and plan assets to retirement benefit liability as of March 31, 2022 and 2021 was as follows:
Millions of yen

2022

Thousands of U.S. dollars

Unfunded retirement benefit obligations
Total retirement benefit liability (asset) at March 31, 2022 and 2021

619
(435)
184
10,56910,753

2021
¥
611
(426)
185
10,218
10,403Retirement benefit liability
Net defined benefit asset
Total retirement benefit liability (asset) at March 31, 2022 and 2021

10,792(39)
10,753

10,451(48)
10,403Funded retirement benefit obligations
Plan assets

¥

¥

¥

$

$

2022
5,058
(3,556)
1,502
86,35587,857
88,175(318)
87,857(Note)Including plans applying the simplified method
Retirement benefit costs for the years ended March 31, 2022 and 2021 were as follows:
Millions of yen

2022
Service cost
Interest cost
Amortization of actuarial differences
Amortization of prior service cost
Retirement benefit costs based on the simplified method
Total retirement benefit costs for the fiscal years ended March 31, 2022 and 2021

¥

633
52
129
120
934

¥

Thousands of U.S. dollars

2021
¥
617
51
133
(2)
113
¥
912

2022
5,173
426
1,052
983
$
7,634
$

Remeasurements of defined benefit plans for the years ended March 31, 2022 and 2021 were as follows:
Millions of yen

Thousands of U.S. dollars

2022
Prior service costs
Actuarial gains and losses
Total ｒemeasurements of defined benefit plans for the fiscal years ended
March 31, 2022 and 2021

2021

2022

¥

195

¥

(2)
28

$

1,597

¥

195

¥

26

$

1,597

Accumulated ｒemeasurements of defined benefit plans as of March 31, 2022 and 2021 were as follows:
Millions of yen

Actuarial gains and losses yet to be recognized
Total balance at March 31, 2022 and 2021

2022
¥
(317)
¥
(317)

Thousands of U.S. dollars

2021
¥
¥

(512)
(512)

$
$

2022
(2,589)(2,589)The principal actuarial assumptions at March 31, 2022 and 2021 were as follows:
Discount rate
Expected rate of salary increase2022
principally 0.64%
principally 5.4%

2021
principally 0.64%
principally 6.9%

(3) Defined contribution plan
The amount of contribution required for the defined contribution plans of the Companies for the years ended March 31, 2022 and 2021 was \154 million ($1,258 thousand) and \146 million,
respectively.

13. Contingent liabilities
The Companies were contingently liable under guarantees for bank loans of affiliated companies and other companies as of March 31, 2022 and 2021 as follows:
Millions of yen

2022
Unsecured¥Thousands of U.S. dollars

2021
¥
149

119

2022
$

972

14. Net assets
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as share capital. However, a company may, by a resolution of the Board of
Directors, designate an amount not exceeding one half of the price of the new shares as additional paid-in capital, which is included in capital surplus.
Under the Japanese Corporate Law (the “Law”), in cases in which a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess, if any, of
25% of share capital over the total of additional paid-in capital and legal earnings reserve must be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is
included in retained earnings in the accompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital can be used to eliminate or reduce a deficit or be capitalized by a resolution of the shareholders' meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all additional paid-in capital and all legal earnings reserve may be transferred toother capital surplus and retained earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the nonconsolidated financial statements of the Company
in accordance with Japanese laws and regulations.
The appropriation of retained earnings with respect to a given financial year is made by resolution of the shareholders at a general meeting held
subsequent to the close of such financial year. The accounts for that year do not, therefore, reflect such appropriations.

15. Provision for losses on sales contracts
Provision for losses on sales contracts included in cost of sales for the years ended March 31, 2022 and 2021 was as follows:
Millions of yen

2022¥

Thousands of U.S. dollars

2021
¥
1,807

28

2022
$

227

16. Research and development expenses
Research and development expenses are charged to income as incurred. Such expenses included in cost of sales and selling, general and administrative expenses for the years ended March
31, 2022 and 2021 were as follows:
Millions of yen

2022
¥
1,006

Thousands of U.S. dollars

2021
¥
1,047

$

2022
8,223

17. Income taxes
Components of the Companies' deferred tax assets and liabilities as of March 31, 2022 and 2021 were as follows:
Millions of yen

2022
Deferred tax assets:
Retirement benefit liability
Accrued cost of sales
Provision for bonuses
Provision for loss on construction contracts
Loss carryforwards for tax purposes (Note2)
Other
Deferred tax assets – subtotal
Valuation reserve for carryforward tax loss (Note2)
Valuation reserve for deductible temporary differences
Valuation reserves – total
Total deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Other
Total deferred tax liabilities
Net deferred tax assets

¥

¥
¥
¥

Thousands of U.S. dollars

2021

3,323
1,871
1,034
472
924
2,313
9,937
(326)
(2,709)(3,035)
6,902¥(1,724)(443)(2,167)
4,735

¥

¥

¥

2022

3,214
1,821
1,031
1,135
5,246
12,447(2,968)(2,968)9,479$(1,955)(236)(2,191)
7,288$(Note1) Changes in presentation method
Provision for bonuses as of March 31, 2021 and 2022 are separated from other of deferred tax assets because of the significance.
And allowance for doubtful accounts as of March 31, 2021 and 2022 are included in other of deferred tax assets because of the significance decrease.

27,15015,287
8,444
3,859
7,547
18,901
81,188(2,666)(22,133)(24,799)$ 56,389(14,087)(3,617)(17,704)$ 38,685

(Note2) Carryforward tax loss and its deferred tax assets by expiration periods.
There was no carryforward tax loss and its deferred tax assets for the years ended March 31, 2021.
As of March 31, 2022
Millions of yen
Less than 1 year

Carryforward tax loss (a)Valuation reserve
Net deferred tax assets¥

1 to 2 years-¥

2 to 3 years-¥

3 to 4 years-¥

4 to 5 years-¥

More than 5 years

-

¥

Total

924
(326)
597

¥

924
(326)
597 (b)As of March 31, 2022
Thousands of U.S. dollars
Less than 1 year

Carryforward tax loss (a)Valuation reserve
Net deferred tax assets¥

1 to 2 years-¥

2 to 3 years-¥

3 to 4 years-¥

4 to 5 years-¥

More than 5 years

-

¥

Total

8
(3)
5

¥

8
(3)
5 (b)

(a) Carryforward tax loss shown in the above table is after multiplying the statutory tax rate.
(b) Deferred tax asset of \ 597 million was recognized for carryforward tax loss of \ 923 million (amount multiplied by the statutory tax rate).
No valuation reserve is recognized for the carryforward tax loss for the amount was determined to be recoverable based on expected future taxable income.

There was no significant difference between the normal effective statutory tax rates and the effective tax rates reflected in the accompanying consolidated statements of income for the years
ended March 31, 2021 and March 31, 2022.

18. Revenue
Disaggregated revenue by business unit is as follows:

As of March 31, 2022

Millions of yen

Reportable segments
Domestic Environment and Energy Business
Municipal Solid Waste
Plants
Net sales

Energy Plants

70,669Other

29,110Subtotal
8,348

As of March 31, 2022

Total

Overseas
Environment andEnergy Business

Package Boiler
Business

Equipment
andSystem Business

931

16,468

8,567

Overseas
Environment andEnergy Business

Package Boiler
Business

Equipment
andSystem Business

7,606

134,552

70,000108,127

134,093

Thousands of U.S. dollars

Reportable segments
Domestic Environment and Energy Business
Municipal Solid Waste
Plants
Net sales

Energy Plants

577,407237,843

Other

Subtotal
68,212

883,462

Total

1,095,620

Information about the relationship between the fulfillment of performance obligations based on the contract with the customer and the cash flow generated from the contract, and the amountand timing of revenue expected to be recognized from the contract with the customer existing at the end of the current consolidated fiscal year after the next consolidated fiscal year.
(1) Balance of contract assets and contract liabilities, etc.
Millions of yen

Receivables arising from contracts with customers（beginning balance）
Receivables arising from contracts with customers（balance at the end of the period）
Contract assets（beginning balance）
Contract assets（balance at the end of the period）
Contract liabilities（beginning balance）
Contract liabilities（balance at the end of the period）

2022¥ 42,313
33,916
41,91048,185
9,349
8,669

Thousands of U.S. dollars

2022$ 345,719
277,118
342,428
393,70276,387
70,833Contract assets consist of the rights to receive consideration in exchange for the fulfilled portion of contractual obligations, which is measured based on the progress of such obligations forconstruction contracts at the end of the reporting period, and when they become unconditional, the rights to the consideration are transferred to receivables arising from contracts withcustomers.
Contract liabilities are advances received from customers for construction contracts, used for expenditures as revenue is recognized.
In revenue recognized at the current consolidated fiscal year, which was included in contract liabilities at the beginning of the current consolidated fiscal year is 5,684 million yen.
Incidentally, the amount of revenue recognized from performance obligations satisfied in the previous periods is not material for the current fiscal year.
(2) Transaction price allocated to remaining performance obligation
The aggregate amount of the transaction price allocated to the performance obligations that were unsatisfied (or partially unsatisfied) were ¥433,351 million for the years ended March 31,
2022. These performance obligations are related to construction, operational control and O&M contracts in the Domestic Environment and Energy Business and expected to be recognized
as revenue within approximately 5 years in construction contracts and 20 years in operational control and O&M contracts.
There is no significant variable consideration which is not included in transaction price in the amount of consideration from contracts with customers.

19. Comprehensive income
Amounts reclassified to net income in the current period that were recognized in other comprehensive income in the current or previous periods and the tax effects for each component ofother comprehensive income were as follows:

Millions of yen

2022
Valuation difference on available-for-sale securities
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Deferred gains or losses on hedges
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Foreign currency translation adjustment
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Remeasurements of defined benefit plans
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Total other comprehensive income¥

Thousands of U.S. dollars

2021

(547)
(188)
(735)
230
(505)

¥

107
107
(33)
74

¥

68
68
68

¥

¥

¥

67
129
196
(60)
136

¥

(227)

¥
¥

¥

¥

¥
¥

2022

2,506
(1,504)
1,002
(305)
697

$

46
46
(14)
32

$

44
44
44

$

$

¥

(106)
132
26
(8)
18

$

545
1,052
1,597
(488)
1,109

¥

791

$

(1,853)

¥

¥

¥

$

$

$

(4,468)(1,539)(6,007)
1,882(4,125)
876
876
(268)
608

555
555
555

20. Segment information(Supplemental information - Accounting Standard for Disclosures about Segments of an Enterprise and Related Information)(1) General information about reportable segments
In the Group, businesses for which separate financial information is available are grouped into the following four reportable segments in accordance with thesimilarity of products and services of the respective business. The results of each reportable segment are reviewed periodically by the Board of Directors to assess
the segment's business performance.
Domestic Environment and Energy Business
General waste treatment plants, industrial waste treatment plants, waste recycling plants, wastewater treatment plants, sludge combustion plants and biomass power
plantsOverseas Environment and Energy Business
Waste combusting power plants and biomass power plants
Package Boiler BusinessCompact through-flow boilers and vacuum water heating systems
Equipment and System Business
Construction equipment, equipment for semi-conductor industry and cleaning systems(2) Basis of measurement about reportable segment profit or loss and other material items
Accounting methods used for reportable segments are the same those explained in the Note 2, “Summary of significant accounting policies.”
Profits of reportable units are operating profit. Internal revenue and transfers between reportable segments are recorded using prevailing market prices.
(3) Information about reportable segment profit or loss and other material items
Reportable segment information for the years ended March 31, 2022 and 2021 was as follows:Year ended March 31, 2022
Sales:
Outside customers
Intersegment
Total
Reportable segment income (loss)
Others:Depreciation

Year ended March 31, 2021
Sales:
Outside customers
Intersegment
Total
Reportable segment income (loss)
Others:Depreciation

Year ended March 31, 2022
Sales:
Outside customers
Intersegment
Total
Reportable segment income (loss)
Others:Depreciation

Millions of yen
Domestic
Overseas
Equipment
Environment and Environment andPackageandEnergy Business Energy Business Boiler Business System Business¥ 108,127
530
108,657¥ 10,906

¥

¥

770

¥

¥

931
74
1,005
(219)

¥

¥

16,46831
16,499
674

¥

8,567
24
8,591
656

¥

3

¥

162

¥

22

Total

¥

843

¥

¥

¥

1,187
2
1,189
(141)

¥

¥

16,891
41
16,932
641

¥

8,195
76
8,271
877

¥

5

¥

162

¥

20

$

7,606
608
8,214
(1,789)

$

$

23

6,288

$

$ 134,552
252
134,804
$
5,497

$
$

70,000192
70,192
5,363

$

$

179

1,332

¥

¥ 134,093
134,093
¥
9,929

¥

(659)
(659)
(2,088)

¥

¥

5

957

Total

¥

¥ 146,727
146,727¥ 10,474

¥

¥

¥

7

¥

1,037

Adjustment

Consolidated$$1,095,620
1,095,620$ 81,125$1,095,620
5,387
1,101,007$ 98,183$(5,387)(5,387)(17,058)

$

$

36

7,822

962

Consolidated

(436)
(436)
(2,378)

1,030¥

Adjustment¥ 146,727
436
147,163¥ 12,852

Thousands of U.S. dollars
Domestic
Overseas
Equipment
Environment and Environment andPackageandEnergy Business Energy Business Boiler Business System BusinessTotal$ 883,462
4,335
887,797$ 89,112

Consolidated¥ 134,093
659
134,752¥ 12,017

Millions of yen
Domestic
Overseas
Equipment
Environment and Environment andPackageandEnergy Business Energy Business Boiler Business System Business¥ 120,454
317
120,771¥ 11,475

Adjustment

$

7,858

Adjustments in reportable segment income (loss) include eliminations of transactions between segments and corporate expenses not allocated to reportable segment
expenses, including selling, general and administrative expenses not attributable to reportable segments.
Total reportable segment income is adjusted with operating profit reported on the Consolidated Statements of Operations.
Disclosure of information related to segment assets is omitted since assets are not allocated to business segments.

(Related information)
Reportable segment information for the years ended March 31, 2022 and 2021 was as follows:(1) Information about products and services
Disclosure of this information is omitted since similar information is disclosed in Note 20, “Segment information.”(２) Information about geographic areas
Revenues
Since over 90% of net sales reported on the Consolidated Statements of Operations were sales to outside customers within Japan, disclosure of this information isomitted.
Tangible fixed assets
Since 90% of tangible noncurrent assets reported on the consolidated balance sheet (in terms of values) were located within Japan, disclosure of this information isomitted.
(３) Information about major customers
Since no outside customer accounted for 10% or more of net sales reported on the income statement, disclosure of this information is omitted.
（Information related to noncurrent asset impairment loss by reportable segment）
Not applicable（Information related to amortization and unamortized balance of goodwill）
Not applicable（Information related to gain on negative goodwill by reportable segment）
Not applicable