Consolidated Financial Statements
USHIO INC.
Year ended March 31, 2021 with
Independent Auditor’s ReportIndependent Auditor’s Report

The Board of Directors
USHIO INC.

OpinionWe have audited the accompanying consolidated financial statements of USHIO INC. and its
consolidated subsidiaries (the Group), which comprise the consolidated balance sheet as at
March 31, 2021, and the consolidated statements of income, comprehensive income, changes in
net assets, and cash flows for the year then ended, and notes to the consolidated financial
statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2021, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of
the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Impairment of non-current assets in the imaging equipment business and light sources business
Description of Key Audit Matter

Auditor’s Response

The Company and some of its consolidated
subsidiaries manufacture and sell cinema andgeneral projectors (hereinafter referred to as"projectors") as well as xenon lamps, which
are light sources for those projectors, tocustomers across the world. However, thedemand for these products has decreased

We performed the following procedures on theestimates of total undiscounted future cash
flows for the purpose of determining therecognition of impairment losses on noncurrent assets in the imaging equipment
business and light sources business. Wesignificantly due to the continued suspensionof movie theaters and suspension of events
mainly in Europe and the United States as aresult of the spread of the novel coronavirus
infection (hereinafter referred to as "COVID19").

involved the work of component team in theaudit for the imaging equipment business.

• We evaluated the design and operating
effectiveness of internal controls related to thedetermination of the necessity of recognition
As a result, impairment indicators were of impairment losses.
identified for the asset group of the imaging
equipment business, which includes projector ・We compared periods for estimating future
manufacturing facilities and for the asset cash flows to the remaining useful lives ofgroup of the light sources business, which major assets.
includes xenon lamp manufacturing facilities. • We evaluated the consistency of future cash
In order to determine the recognition of flows with the business plans authorized by
impairment losses, estimates of future cash the Board of Directors.
flows were required. In such estimates, theexternal environment including the extent of ・ We discussed the rationale behind theassumptions
with
the
the
recoveryof
movie
theater significant
management,
comparedwithavailable
performances, the frequency and scale of theevents, etc., and the technological innovation external information, analyzed historicalfrom discharge lamps such as xenon lamps to trends, and performed sensitivity analysis withsolid-state light sources such as laser future volatility.
diodes, etc. may affect future cash flows.
・With regard to the ultimate disposition value
As described in the Notes (Significant of the asset groups and the net sales value of
Accounting Estimates), the Company has not the assets, we involved valuation specialists
recognized any impairment losses for the asset from our network firm to examine thegroup of the imaging equipment business appropriateness of applied valuation method
pertaining to property, plant and equipment of based on its purpose and the consistency
7,072 million yen and intangible assets of between the input information used to
911 million yen nor the asset group of the calculate the amount and external information.
light sources business pertaining toproperty,plant
andequipmentof
12,697 million yen and intangible assets of
70 million yen during the fiscal year ended
March 31, 2021 since the total undiscounted
future cash flows generated from the asset
group exceeded the net book value . Future
cash flows are estimated mainly based on thebusiness plan authorized by the Board of
Directors, the growth rate in subsequent
periods, and the ultimate disposition value ofthe asset groups or net sales value of the assets
after their use. Key assumptions involved inestimating future cash flows are theconvergence time of COVID-19, the extent ofrecovery in the performance of movie theaters
and events , the selling price and volume ofmajor products, the market growth rate of

discharge lamps and solid-state lightsources, the ultimate disposition value of theasset group, and the net sales value of the noncurrent assets.
Of the key assumptions used by theCompany, the extent of recovery in theperformance of movie theaters and events, andthe market growth rates of discharge lamps
and solid-state light sources are particularly
significant assumptions as they are
significantly affected by the convergence timeof COVID-19 and the technologicalinnovationofsolid-statelightsources, respectively, as described above. The
estimates of future cash flows including theseassumptions are highly uncertain, and thebook value of non-current assets affected isalso material. Based on the above factors, wehave determined it to be a key audit matter.
Responsibilities of Management and the Audit and Supervisory Committee for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, and forsuch internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Audit and Supervisory Committee is responsible for overseeing the Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial
statements.

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation inaccordance with accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with the Audit and Supervisory Committee regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Audit and Supervisory Committee with a statement that we have compliedwith the ethical requirements regarding independence that are relevant to our audit of the financial
statements in Japan, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Audit and Supervisory Committee, we determine thosematters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2021 are presented solely for convenience. Our audit also included thetranslation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made on the basis described in Note 4 (9) to the consolidated financial statements.

Ernst & Young ShinNihon LLC
Tokyo, Japan
June 29, 2021

北

本 佳永⼦

印

Designated Engagement Partner
Certified Public Accountant

須

⼭ 誠⼀郎

印

Designated Engagement Partner
Certified Public Accountant

Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheet
As of March 31, 2020

As of March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Property, plant and equipment, net
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities (*1)
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

1 －60,67940,326
4,222
25,75815,40916,014
10,467(2,043)
170,835

73,67034,024
2,915
22,885
17,884
17,110
10,585(2,716)
176,359

665,440
307,330
26,337
206,714
161,541
154,555
95,610(24,541)
1,592,990

44,619(26,222)
18,396
23,676(17,904)
5,772
8,393
2,061
36,018(26,400)
9,617
44,242

44,919(27,943)
16,97526,314(19,006)
7,307
8,650
2,268
38,114(28,494)
9,620
44,822405,738(252,405)
153,333
237,684(171,679)
66,005
78,132
20,492
344,274(257,376)
86,897
404,860

698
3,048
3,746

335
3,075
3,411

3,028
27,78230,81150,278
18
1,963
1,949
2,398
(529)
56,079104,069
274,904

56,364
517
1,994
5,391
1,950
(535)
65,682
113,915290,275

509,118
4,671
18,017
48,694
17,620(4,840)593,282
1,028,954
2,621,945

As of March 31, 2020

As of March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement
benefits
Provision for directors' stock payment
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares, at cost
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets－

2 －18,730
3,110
6,298
955
1,999
2,202
15
14,41647,72916,356
6,058
3,520
1,056
2,021
2,355
0
16,63948,007

147,741
54,721
31,794
9,543
18,25821,2741
150,294433,630

12,847
3,863

15,056
7,005

136,000
63,274

243

286

2,591

186
3,829
240
5,257
26,46874,198

87
4,098
272
4,280
31,08779,094794
37,0182,459
38,662
280,802714,432

19,556
27,727156,082(9,148)194,218

19,556
27,727
152,448(9,055)
190,676

176,644
250,451
1,377,003(81,791)
1,722,307

11,874

18,280165,119(10)(1,242)(4,223)(3)
3,582(1,433)(31)
32,363(12,948)

6,397

20,426

184,50289
200,705
274,904

77
211,180
290,275702
1,907,512
2,621,945

2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales (*1)
Gross profit
Selling, general and administrative expenses(*2,3)
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Realized and unrealized profit on trading
securities, net
Gain on investments in investment
partnerships
Gain on specified money in trust
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on trading securities
Loss on valuation of investment securities
Share of loss of entities accounted for using
equity method
Provision of allowance for doubtful accounts
Loss on specified money in trust
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets (*4)
Gain on sales of investment securities
Gain on change in ownership interest in
equityTotal extraordinary income
Extraordinary losses
Loss on retirement of non-current assets (*5)
Loss on sales of non-current assets (*6)
Impairment loss (*7)
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Retirement benefit expenses (*8)
Business structure improvement expenses (*9)
Loss on temporary closure (*10)
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners of theparentFiscal year ended
March 31, 2020
(Millions of yen)
159,009105,580
53,428－3 －Fiscal year ended
March 31, 2021
(Millions of yen) (Thousands of U.S. dollars)
118,558
1,070,894
78,719711,044
39,839359,850

46,76939,074352,948

6,659

764

6,902

1,686
1,143
98

1,010
884
-

9,131
7,990
-

-

284

2,574

294

129

1,167

436
3,659

213
1,432
447
4,402

1,928
12,935
4,039
39,768

663
226
168

442
1,015
-

3,996
9,172
-

54

80

726

183
12
271
1,580
8,738

6
214
1,759
3,407

56
1,941
15,89330,776

12
6,312

53
278

481
2,511

-

507

4,581

6,325

838

7,573

108
17
155
32

121
25
143
61
320

1,093
231
1,294
558
2,899

53

-

-

543
1,000
167
2,079
12,984
3,289
758
4,047
8,936

2,129
1,312
4,115
130
1,492
(675)
817
(687)

19,235
11,857
37,171
1,178
13,483(6,098)
7,385(6,206)

(31)

0

0

8,967

(687)

(6,206)

Consolidated Statement of Comprehensive Income

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to;

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)
8,936(Millions of yen) (Thousands of U.S. dollars)(687)(6,206)

Owners of the parent
Non-controlling interests－

4 －(2,658)

6,405

57,8607(3,995)
(726)

6
4,863
2,790

60
43,93325,202

(12)

(36)

(332)

(7,385)1,550

14,02913,342

126,724
120,518

1,584

13,341

120,508

(34)

1

9

3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies

Capital surplus

19,556

Retained earnings

Treasury shares, at cost

Total shareholders' equity

162,936(10,811)

199,408

27,727(64)

Restated balance

19,556

27,727(64)

162,871(10,811)

199,343

Changes of items during period
Dividends from surplus(6,316)(6,316)

Profit attributable toowners of the parent

8,967

8,967

Purchase of treasury shares(7,844)(7,844)

Disposal of treasury shares

68

68

9,439

-

Retirement of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period(9,439)--(6,788)

1,663(5,125)

19,556

27,727156,082(9,148)194,218

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

14,445

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

2,761(3,496)

13,693

152

(17)

87
14,533

87
(17)

2,761

(3,496)

13,780Total net
assets213,25422

152

213,277

Changes of items during period
Dividends from surplus(6,316)

Profit attributable toowners of the parent

8,967

Purchase of treasury shares(7,844)

Disposal of treasury shares

68

Retirement of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period(2,658)7(4,004)(726)(7,383)(63)(7,446)(2,658)7(4,004)(726)(7,383)(63)(12,571)

11,874(10)(1,242)(4,223)6,397

89200,705－

5 －Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period

Capital surplus

19,556

Retained earnings

Treasury shares, at cost

Total shareholders' equity

156,082(9,148)194,218

27,727

Changes of items during period
Dividends from surplus(3,141)(3,141)

Loss attributable toowners of the parent

(687)

(687)

Purchase of treasury shares

(3)

(3)

Disposal of treasury shares

96

96

Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

193

193
-

-

-

(3,634)93(3,541)

19,556

27,727

152,448(9,055)

190,676

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period

11,874

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment(10)(1,242)Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests(4,223)

6,397

89

Total net
assets200,705

Changes of items during period
Dividends from surplus(3,141)

Loss attributable toowners of the parent(687)

Purchase of treasury shares(3)

Disposal of treasury shares

96

Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

193
6,405

6

4,825

2,790

14,028(12)

14,016

6,405

6

4,825

2,790

14,028(12)

10,474

18,280(3)

3,582(1,433)

20,426

77

211,180－

6 －Fiscal year ended March 31, 2021
(Thousands of U.S. dollars)
Shareholders' equity

Capital stock

Balance at beginning ofcurrent period

Capital surplus

176,644

Retained earnings

Treasury shares, at cost

Total shareholders' equity

1,409,835(82,632)

1,754,298

250,451

Changes of items during period
Dividends from surplus(28,376)(28,376)

Loss attributable toowners of the parent(6,206)(6,206)

Purchase of treasury shares

(30)

(30)

Disposal of treasury shares

871

871

Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

1,750

1,750
-

-

-

(32,831)840(31,990)

176,644

250,451

1,377,003(81,791)

1,722,307

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period

107,258

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment(92)(11,227)

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests(38,151)

57,787811

Total net
assets1,812,897

Changes of items during period
Dividends from surplus(28,376)

Loss attributable toowners of the parent(6,206)

Purchase of treasury shares(30)

Disposal of treasury shares

871

Change in scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

1,750
57,86060

43,591

25,202

126,715(108)

126,606

57,86060

43,591

25,202

126,715(108)

94,615

165,119(31)

32,363(12,948)

184,502702

1,907,512－

7 －4) Consolidated Statement of Cash Flows
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in net defined benefit liability
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Retirement benefit expenses
Business structure improvement expenses
Interest and dividend income
Subsidies for employment adjustment
Loss (gain) on change in ownership interest
in equity
Interest expenses
Loss (gain) on trading securities
Share of loss (profit) of entities accounted
for using equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade

12,984
7,182
155
558
636

130
6,988
143
41
359

1,178
63,128
1,294
373
3,251

466

592

5,353

543
1,000
(2,830)-2,129(1,895)(1,432)

19,235(17,122)(12,935)-(507)(4,581)

663
226

442
(284)

3,996
(2,574)

54

80

726

4
108
(6,312)
201

(27)
121
(216)
320

(249)
1,093
(1,952)
2,899

53

-

-

(1,485)6,880

62,148

2,794

(472)

(4,272)(2,762)(2,446)(22,095)

Increase (decrease) in advances received(1,679)1,873

16,923

Other
SubtotalInterest and dividends received
Interest paid
Subsidy income for employment adjustment
Payment of business structure improvement expenses
Income taxes paid
Net cash provided by (used in) operating activities(1,569)10,995
2,883
(669)
(896)
(11,132)
1,179

1,166
13,988
2,054
(437)
1,272
(776)
(1,584)
14,517

10,534
126,353
18,557(3,953)
11,498(7,009)(14,312)131,133－

8 －Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation(*2)
Payments of long-term loans receivableCollection of long-term loans receivable
Other
Net cash provided by (used in) investing activities
Financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Proceeds from issuance of new shares of
consolidated subsidiaries to a third party
Net cash provided by (used in) financing
activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries fromconsolidation
Cash and cash equivalents at end of year (*1)－

9 －(4,420)13,495
(16)
85
(243)
1,639
(7,809)206(477)(5,574)(6,819)
5,448
(10)
30
(85)
1,835
(6,304)94(483)(2,395)(61,598)
49,217
(95)
277
(768)
16,583(56,949)854(4,371)(21,640)

7,456

5,255

47,473

65

-

-

(38)
25
0
4,394

(17)
0
31
(3,418)

(154)
7
287
(30,877)(6,644)

2,646

23,9088,852(8,415)(7,844)(6,312)

5,778(6,564)(3)(3,141)

52,198(59,298)(30)(28,378)

-

500

4,516

(20,363)(784)(7,083)

(786)

1,575

14,227(15,576)

11,890107,400

74,622

59,046533,339-(517)(4,677)59,04670,418636,062

Notes to Consolidated Financial Statements(Significant Matters Forming the Basis of Preparation of Consolidated Financial Statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 51(2) The changes in the scope of consolidation for the fiscal year ended March 31, 2021 are as
follows:
・One company excluded from the scope of consolidation due to merger with USHIO INC.
(Exclusion)(the “Company”)
USHIO OPTO SEMICONDUCTORS, INC.
・Two companies excluded from the scope of consolidation due to mergers between
consolidated subsidiaries
USHIO DEUTSCHLAND GmbH and KreisX GmbH・One company excluded from the scope of consolidation due to a decrease in thepercentage of ownership interest following the issuance of new shares to implementationof a third-party
Protosera Inc.
2. Application of equity method(1) Number of associates under equity method: One
Name of major company:
KA Imaging Inc.
(2) The associate that is not accounted for using the equity method (Hokkaido Saladpaprika Co.,
Ltd.) is excluded from the scope of the equity method since such exclusion has an immaterial
effect on consolidated financial statements of the Company in terms of profit or loss (amountcorresponding to the Company’s equity position), retained earnings (amount corresponding to theCompany’s equity position) and others, and the entity, as a whole, is not material.
(3) The fiscal year-end dates of certain companies accounted for using the equity method are
different from the consolidated fiscal year-end date. In preparing the consolidated financial
statements, the Company uses the financial statements of these companies as of their fiscal yearend.
3. Fiscal years, etc. of consolidated subsidiaries
The consolidated subsidiaries whose fiscal year end is different from the consolidated fiscal
year end are as follows:
Company nameFiscal year-end date

USHIO (SUZHOU) CO., LTD.
USHIO SHANGHAI, INC.

December 31
December 31*1*1

USHIO (GUANGZHOU) CO., LTD.
USHIO (SHAOGUAN) CO., LTD.
USHIO MEDICAL TECHNOLOGY (SUZHOU) CO., LTD.
CHRISTIE DIGITAL SYSTEMS (SHANGHAI) Co., LTD.

December 31
December 31
December 31
December 31

*1
*1
*1
*1

USHIO SHENZHEN, INC.
December 31 *1
CHRISTIE DIGITAL SYSTEMS (SHENZHEN) CO., LTD.
December 31 *1
United Designers of Architectural Lighting,
December 31 *1
Inc.
CHRISTIE TRADE DEVELOPMENT (SHANGHAI) CO.,
December 31 *1
LTD.
*1 Provisional financial statements as of the consolidated fiscal year-end date are used forthese companies.

－

10 －

4. Accounting policies(1) Valuation bases and methods for significant assets(a) Securities
1) Trading securities
Carried at fair value (the cost of securities sold is calculated by the moving-averagemethod)2) Held-to-maturity securities
Carried at amortized cost (straight-line method)3) Available-for-sale securities
Securities with determinable market value:
Carried at fair value based on market prices at the fiscal year-end date (for stocks, theaverage market price for one month prior to the fiscal year end). (Valuation difference isstated as a component of net assets in the consolidated balance sheets, the cost of
securities sold is calculated by the moving-average method.)
Securities without determinable market value:
Carried at cost using the moving-average method
4) Investments in an investment limited partnership and other similar partnerships (deemed as
securities according to Article 2, paragraph 2 of the Financial Instruments and Exchange
Act)
Carried at their corresponding equity value, based on the latest financial statements
available prepared on the financial reporting dates as specified in the respective
partnership agreements.
(b) Derivatives
Carried at fair value(c) Money held in trust for investment purposes
Carried at fair value(d) Inventories
1) Merchandise and finished goods, and work in process
Merchandise and finished goods, and work in process are stated principally at cost
determined by the gross average method (balance sheet amounts are determined based on themethod of writing down book value in accordance with decreased profitability) for theCompany and its domestic consolidated subsidiaries and at the lower of cost or market, cost
being determined by the first-in, first-out method for overseas consolidated subsidiaries.
2) Raw materials
Raw materials are stated principally at cost determined by the moving-average method(balance sheet amounts are determined based on the method of writing down book value inaccordance with decreased profitability) for the Company and its domestic consolidated
subsidiaries and at the lower of cost or market, cost being determined by the first-in,
first-out method for overseas consolidated subsidiaries.
(2) Accounting policy for depreciation of significant assets(a) Property, plant and equipment (excluding leased assets)
Depreciation of property, plant and equipment is calculated principally by the straight-line
method.
The estimated useful lives of the major assets are as follows:
Buildings and structures:
2 to 50 years
Machinery, equipment and
3 to 15 years
vehicles:Others:2 to 15 years(b) Intangible assets (excluding leased assets)
Amortization of intangible assets is calculated by the straight-line method.
In addition, amortization of software for internal use is calculated by the straight-line
method based on the estimated useful life of five years.

－

11 －

(c) Leased assets
Leased assets related to finance lease transactions that transfer ownership
Leased assets related to finance lease transactions that transfer ownership are depreciatedby the same approach as the depreciation method applied to self-owned non-current assets.
Leased assets related to finance lease transactions that do not transfer ownership
Leased assets related to finance lease transactions that do not transfer ownership are
depreciated by the straight-line method over the lease period that is deemed as the usefullife, assuming no residual value.
(3) Accounting policy for significant allowances(a) Allowance for doubtful accounts(i) The Company and its domestic consolidated subsidiaries
To prepare for losses from bad debts, an estimated uncollectible amount is provided
either by making an estimation using the historical rate of credit loss in the case ofgeneral receivables, or based on individual consideration of collectibility in the caseof specific receivables such as highly doubtful receivables.
(ii) Overseas consolidated subsidiaries
To prepare for losses from bad debts, an estimated uncollectible amount is provided
based on consideration of collectibility for individual receivables.
(b) Provision for bonuses
The provision for bonuses represents the amounts for future payments of employees’ bonuses.
The provision is recognized in the amount that is expected to be paid.
(c) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries recognize provision for retirement benefits for
directors, corporate auditors and others in the full amount that would have to be paid if all
the directors and corporate auditors resigned at the balance sheet date based on theirinternal regulations.
(d) Provision for directors’ stock payment
Provision for directors’ stock payment represents the amounts for future payments of theCompany’s stock to directors. The provision is recognized based on the amount that is
expected to be paid, which is determined using points allocated to each director as prescribedin the share granting rules.
(e) Provision for product warranties
Provision for product warranties is recognized for expenses for after-sales service and free
repairs for products sold by the Company and its consolidated subsidiaries in the estimatedamount to be incurred in the future.
(f) Provision for loss on orders received
To provide for future losses on contracted orders received, the Company recognizes aprovision for loss on orders received equal to the amount of losses it anticipates after the
year-end. Such a provision is recognized when losses on orders received are probable andreasonably estimated at the end of the current fiscal year.
(4) Accounting treatment of retirement benefits
1) Method for attribution of estimated retirement benefits to periods
In the calculation of retirement benefit obligations, the expected retirement benefits
attributed to the period up to the end of current fiscal year are based on the benefit formula
method.
2) Accounting method for actuarial gains or losses and past service costs
Past service costs are amortized by the straight-line method over a certain period (mainly
15 years) that is within the average remaining years of service of the eligible employees when
the costs are incurred.
Actuarial gains or losses are amortized in the year following the year in which the gains orlosses are recognized by the straight-line method over a certain period (mainly 15 years) thatis within the average remaining years of service of the eligible employees when the gains orlosses occur.

－

12 －

(5) Significant hedge accounting(a) Hedge accounting
Deferral hedge is applied. When hedging foreign currency risk, certain domestic consolidated
subsidiaries apply the foreign exchange rate designated in the forward contract when thetransaction qualifies for such treatment.
(b) Hedging instruments and hedged items
Hedging instruments: Forward foreign exchange contracts and interest rate swaps
Monetary receivables and payables denominated in foreign currencies,
Hedged items:
forecasted transactions denominated in foreign currencies, securities
and loans payable denominated in foreign currencies(c) Hedging policy
The Company and its consolidated subsidiaries (collectively, the “Group”) hedge the risksof fluctuation in foreign currencies and interest rates in accordance with internal management
rules on financial market risk and derivative transactions.
(d) Method of assessing the hedge effectivenessThe hedge effectiveness is assessed by comparing the cumulative changes in fair value orcash flows of the hedged items and those of the hedging instruments during the period from theinception of the hedge to the time of determining the effectiveness, and based on therespective amount of changes.
(6) Method and period for amortization of goodwill
Goodwill is amortized in equal portions over the period in which it is deemed to be valuable.
(7) Scope of cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investmentsthat are readily convertible to known amounts of cash and subject to insignificant risk of change
in value and due within three months from the date of acquisition.
(8) Other significant matters forming the basis of preparing the consolidated financial statements
Accounting method for consumption taxes
The consumption taxes are accounted for using the tax exclusion method.
(9) U.S. Dollar Amounts
For the readers’ convenience, the accompanying consolidated financial statements with respect
to the fiscal year ended March 31, 2021 have been presented in U.S. dollars by translating all yen
amounts at ¥110.71 = U.S. $1.00, the exchange rate prevailing on March 31, 2021. This translation
should not be construed as a representation that the yen amounts have been, could have been, or
could in the future be converted into U.S. dollars at the above or any other rate.

－

13 －

(Significant Accounting Estimates)
1. Impairment of non-current assets(1) Amount recorded in the consolidated financial statements for the fiscal year ended March 31,
2021
In the fiscal year ended March 31, 2021, the Company recognized indications of impairment for
the asset group comprising assets of the Company and some of its consolidated subsidiaries
within the “Light sources business” (mainly manufacturing facilities for xenon lamps forvideo projectors) and the asset group comprising assets of some consolidated subsidiaries
within the “Imaging equipment business.” As a result, the Company reviewed the necessity ofrecording an impairment loss.
As a result of the review, no impairment loss was recognized because the undiscounted future
cash flows exceeded the book values of each asset group.
Fiscal year ended March 31, 2021
(Thousands of U.S.
(Millions of yen)dollars)“Light sourcesbusiness” asset group“Imaging equipment
business” asset group

Property, plant andequipment
Intangible assets

12,697

114,687

70

640

Property, plant andequipment

7,072

63,884

Intangible assets

911

8,234

(2) Information on the nature of significant accounting estimates for identified items
1) Method of calculating the amount recorded in the consolidated financial statements for the
fiscal year ended March 31, 2021
For non-current assets or asset groups for which there is an indication of impairment, if thetotal undiscounted future cash flow from the asset or asset group is less than the book value,
the Group writes down the book value to the recoverable amount and records the amount of thewrite-down as an impairment loss.
2) Key assumptions used to calculate the amount recorded in the consolidated financial statements
for the fiscal year ended March 31, 2021(“Light sources business” asset group)
Although it is difficult to accurately predict the convergence time of the COVID-19 pandemic,
the Group assumes that the pandemic’s impact will continue to some extent in the fiscal year
ending March 31, 2022. Accordingly, the Group estimates the undiscounted future cash flows basedon the value in use calculated by taking into account the extent of recovery in the performanceof movie theaters and events, the market growth rate of discharge lamps and solid-state lightsources, and the selling prices and volumes of major products, etc., and the net sales value
based on the real estate appraisal value provided by a real estate appraiser.
(“Imaging equipment business” asset group)
Although it is difficult to accurately predict the convergence time of the COVID-19 pandemic,
the Group assumes that the pandemic’s impact will continue to some extent in the fiscal year
ending March 31, 2022. Accordingly, the Group estimates the undiscounted future cash flows basedon the value in use and the ultimate disposition value of the asset group, which are calculated
by taking into account the extent of recovery in the performance of movie theaters and events,
and the selling prices and volumes of major products, etc.
3) Effect on the consolidated financial statements for the next fiscal year
If future events deviate from the assumptions in 2) above, such as greater decline in sales
prices or decrease in sales volume than expected as well as a further delay in the estimatedtiming of the end of the COVID-19 pandemic, the Company may record an impairment loss on noncurrent assets in the next fiscal year.

－

14 －

2. Recoverability of deferred tax assets(1) Amount recorded in the consolidated financial statements for the fiscal year ended March 31,
2021
Fiscal year ended March 31, 2021
Deferred tax assets
Deferred tax assets (Before offsetting against
deferred tax liabilities)(Millions of yen)
1,994

(Thousands of U.S. dollars)
18,017

5,628

50,838(2) Information on the nature of significant accounting estimates for identified items
1) Method of calculating the amount recorded in the consolidated financial statements for the
fiscal year ended March 31, 2021
The Group determines the recoverability of deferred tax assets by making reasonable estimatesof future taxable income for each tax jurisdiction.
2) Key assumptions used to calculate the amount recorded in the consolidated financial statements
for the fiscal year ended March 31, 2021
The estimate of taxable income is mainly based on the business plan used by the Group. Although
it is difficult to accurately predict the convergence time of the COVID-19 pandemic, the Groupassumes that the pandemic’s impact will continue to some extent in the fiscal year ending March
31, 2022. Accordingly, the Group estimates future taxable income by incorporating this impact
into the business plan that forms the basis of the taxable income estimates.
3) Effect on the consolidated financial statements for the next fiscal year
The recoverability of deferred tax assets depends on estimates of future taxable income.
Therefore, if the estimated amount of taxable income decreases, deferred tax assets may be
reduced and tax expenses may be recorded.

－

15 －

(Accounting Standards Issued but Not Yet Applied)(Accounting Standard for Revenue Recognition, etc.)
・Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement
No. 29, issued on March 31, 2020)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30,
issued on March 26, 2021)(1) Overview
International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards
Board (FASB) jointly developed a comprehensive accounting standard for revenue recognition andissued “Revenue from Contracts with Customers” (IFRS No. 15, issued by IASB and Topic 606
issued by FASB) in May 2014. Considering the situation that IFRS No. 15 has become applicablefrom the fiscal year beginning on and after January 1, 2018 and Topic 606 from the fiscal year
beginning after December 15, 2017, ASBJ developed a comprehensive accounting standard forrevenue recognition and issued it together with implementation guidance.
ASBJ’s basic policy in developing the accounting standard for revenue recognition was toestablish accounting standards by adopting basic principles of IFRS No. 15 as a starting pointfrom the viewpoint of comparability of financial statements, which is one of the benefits ofmaintaining consistency with IFRS No. 15, and to add alternative treatments to the extent not to
impair comparability in cases where previous practices and others in Japan should be considered.
(2) Date of application
These standards will be applied from the beginning of the fiscal year ending March 31, 2022.
(3) Impact of application
The impact of these standards on the consolidated financial statements is immaterial.
(Leases)・Leases (ASU No. 2016-02 (Topic 842))(1) Overview
This accounting standard and relevant regulations in principle require that recognition ofassets and liabilities arising from all leases to be conducted by the lessee of a lease. There
are no significant changes to the accounting requirements of the lessor.
(2) Date of application
ASU No. 2016-02 (Topic 842) will be applied from the fiscal year beginning on April 1, 2022.
(3) Impact of application
The impact of this standard on the consolidated financial statements is currently being
evaluated.
(Accounting Standard for Fair Value Measurement, etc.)
・Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, issued on July 4, 2019)
・Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9, issued on July 4, 2019)
・Accounting Standard for Financial Instruments (ASBJ Statement No. 10, issued on July 4, 2019)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,
issued on July 4, 2019)
・Implementation Guidance on disclosures about Fair Value of Financial Instruments (ASBJ GuidanceNo. 19, issued on March 31, 2020)(1) Overview
In light of the situation in which the International Accounting Standards Board (IASB) and the
U.S. Financial Accounting Standards Board (FASB) have established detailed guidance on fairvalue measurement with almost the same content (IFRS 13 “Fair Value Measurement” inInternational Financial Reporting Standards (IFRS), and Accounting Standards Codification Topic
820 “Fair Value Measurement” in the US GAAP), ASBJ addressed to ensure consistency of theJapanese GAAP with internationally recognized accounting standards mainly for guidance on fairvalue and disclosures of financial instruments and issued the “Accounting Standard for Fair
Value Measurement” as well as related accounting standards and implementation guidances.

－

16 －

The ASBJ’s basic policy for the development of the accounting standard for fair value
measurement is to incorporate, in principle, all the provisions of IFRS 13 from the perspectiveof increasing comparability of financial statements among companies in Japan and overseas byusing the unified measurement method, and to establish other treatments of individual items to
the extent that consideration is given to practices in Japan to date and comparability is not
significantly impaired among financial statements.
(2) Date of application
These standards will be applied from the beginning of the fiscal year ending March 31, 2022.
(3) Impact of application
The impact of applying the “Accounting Standard for Fair Value Measurement” and otheraccounting standards and implementation guidances on the consolidated financial statements iscurrently not determined.
(Changes in Presentation)(Application of “Accounting Standard for Disclosure of Accounting Estimates”)
The “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31, issued
on March 31, 2020) has been applied to the consolidated financial statements from the end of the
fiscal year ended March 31, 2021, and significant accounting estimates are noted in the consolidated
financial statements.
However, in the notes to the consolidated financial statements, in accordance with thetransitional treatment provided for in the provision to paragraph 11 of said accounting standard,
the details related to the previous fiscal year are not described.

－

17 －

(Additional Information)(Stock remuneration plan for directors)
The Company has introduced a stock remuneration plan for directors of the Company (excluding
outside directors) and executive officers who have entered into an engagement agreement with theCompany (excluding overseas residents, hereinafter “Directors, et al.”), in order to raise the
incentive to contribute to improving the Company’s medium- to long-term business performance and toincreasing enterprise value.
(1) Overview
The Company entrusts money equivalent to remuneration of Directors, et al. The Company’s
shares will be acquired using the entrusted money and the Company’s shares and the cash
equivalent of the conversion value of the Company’s shares will be delivered and paid to
Directors, et al. based on his or her position and the degree of accomplishment of businessperformance. Directors, et al. are eligible to receive the Company’s shares and the cash
equivalent of the conversion value of the Company’s shares, in principle after retiring fromthe position of Director, et al. In order to maintain neutrality toward management of theCompany, the voting rights of the Company’s shares in the trust may not be exercised during
the trust period.
(2) The Company’s shares in the trust
The Company’s shares in the trust were recorded as treasury shares in net assets on the
consolidated balance sheet with the carrying value in the trust (excluding ancillary
expenses). The carrying value and number of treasury shares in the trust were ¥505 million
and 310,450 shares as of March 31, 2020 and ¥409 million ($3,694 thousand) and 251,200 shares
as of March 31, 2021, respectively.

－

18 －

(Consolidated Balance Sheet)*1 Investments in associates are as follows:
As of March 31, 2020
(Millions of yen)
Investment securities (stocks)

As of March 31, 2021
(Millions of yen)

273

(Thousands of U.S. dollars)

221

1,996

(Consolidated Statement of Income)*1 The ending inventory balance is the amount after write-down of book value due to decline inprofitability (the figure in parenthesis is a reversal), and the loss on valuation of inventories
included in cost of sales is as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

(Millions of yen)
(648)

(Thousands of U.S. dollars)
2,117

19,125*2 The main components of selling, general and administrative expenses are as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

(Millions of yen)(Thousands of U.S. dollars)

12,993

10,69596,607

Provision for bonuses

683

594

5,366

Retirement benefit expenses

618

534

4,831

Provision for directors' retirement benefits

68

59

538

Provision for directors' stock payment

30

-

-

Research and development expenses

10,174

10,093

91,169

656

631

5,707

Salaries and wages

Provision of allowance for doubtful accounts*3 Research and development expenses included in general and administrative expenses are as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

(Millions of yen)
10,174(Thousands of U.S. dollars)
10,093

91,169*4 The breakdown of gain on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2020
(Millions of yen)

Fiscal year ended
March 31, 2021
(Thousands of(Millions of yen)
U.S. dollars)

Buildings and structures

-

28

256

Machinery, equipment and vehicles

3

22

201

Other

9

2

22

12

53

481

Total

－

19 －

*5 The breakdown of loss on retirement of non-current assets is as follows:
Fiscal year ended
March 31, 2020
(Millions of yen)

Fiscal year ended
March 31, 2021
(Thousands of(Millions of yen)
U.S. dollars)

Buildings and structures

9

18

170

Machinery, equipment and vehicles

7

35

320

Construction in progress

24

5

49

Other

66

61

553

108

121

1,093

Total

*6 The breakdown of loss on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2020
(Millions of yen)

Fiscal year ended
March 31, 2021
(Thousands of(Millions of yen)
U.S. dollars)

Machinery, equipment and vehicles

0

5

46

Land

16

-

-

Other

0

20

185

17

25

231

Total
*7 Impairment loss
Fiscal year ended March 31, 2020
Location

Classification by use

Type of assets(Millions of yen)

California, U.S.A.

Assets planned tobe sold

Other (Intangible assets)

101

Higashiosaka,
Osaka
Kanzaki-Gun,
Hyogo,
Osaka, Osaka

Business assets

Buildings and structures,
Other (Property, plant andequipment), Machinery,equipment and vehicles

28

Chiyoda-ku, Tokyo
Takasago, Hyogo
and others

Business assets

Other (Property, plant andequipment)

25

In principle, the Group’s business assets are grouped according to division or to whom assets arelent, assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets andassets planned to be sold are grouped on an individual asset basis.
The book values of business assets are written down to zero or the net sales values due to adecrease in the recoverability of the assets, and the write-downs are recorded as impairment loss in
extraordinary losses. The book values of assets planned to be sold are written down to the net sales
values due to a decision to sell the assets, and the write-downs are recorded as impairment loss in
extraordinary losses. The net sales values are based on the expected sales prices.
* Breakdown of impairment loss by location is as follows:・Impairment loss of \101 million recognized for California, U.S.A. is for other (intangible
assets).
・Impairment loss of ¥28 million recognized for Higashiosaka, Osaka, etc. includes ¥13 million forother (property, plant and equipment), ¥13 million for buildings and structures, and ¥1 million
for machinery, equipment and vehicles.

－

20 －

・Impairment loss of \25 million recognized for Chiyoda-ku, Tokyo, etc. is for other (property,
plant and equipment).
Fiscal year ended March 31, 2021
Location
California, U.S.A.

Classification by use

Type of assets(Millions of yen)(Thousands of
U.S. dollars)

Business assets

Buildings and structures

445

4,020

Business assets

Buildings and structures,
Other (Property, plant andequipment), Machinery,equipment and vehicles

85

774

Business assets

Buildings and structures,
Machinery, equipment andvehicles, Other (Property,
plant and equipment), Other(Intangible assets)

81

734

Chiyoda-ku, Tokyo
Kawasaki, Kanagawa
Takasago, Hyogo
and others

Business assets

Buildings and structures,
Machinery, equipment andvehicles, Other (Property,
plant and equipment)

54

492

Steinhöring,
Germany

Business assets

Other (Property, plant andequipment)

3

27

Osaka, Osaka,
Nagoya, Aichi,
Fukuoka, Fukuoka
Kanzaki-Gun,
Hyogo,

Fukaya, Saitama,
Taito-ku, Tokyo

In principle, the Group’s business assets are grouped according to division or to whom assets arelent, assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets andassets planned to be sold are grouped on an individual asset basis.
The book values of business assets are written down to zero or the net sales values due to adecrease in the recoverability of the assets, and the write-downs are recorded as impairment loss in
extraordinary losses.
Regarding the business assets of California, U.S.A., the book values were written down to zeroaccompanying the business structure improvement of CHRISTIE Group, and the write-downs wererecognized as business structure improvement expenses under extraordinary losses.
The book values of business assets of Fukaya, Saitama and Taito-ku, Tokyo were written down to zero
because these assets are not expected to be used in the future, with the resolution to dissolve WACOM
ELECTRIC CO., LTD., and the write-downs were recorded as business structure improvement expenses
under extraordinary losses.
* Breakdown of impairment loss by location is as follows:・Impairment loss of \445 million ($4,020 thousand) recognized for California, U.S.A. is forbuildings and structures.
・Impairment loss of ¥85 million ($774 thousand) recognized for Osaka, Osaka, etc. includes ¥65
million ($590 thousand) for buildings and structures, ¥16 million ($148 thousand) for other(property, plant and equipment), and ¥3 million ($35 thousand) for machinery, equipment andvehicles.
・Impairment loss of ¥81 million ($734 thousand) recognized for Fukaya, Saitama, etc. includes ¥51
million ($469 thousand) for buildings and structures, ¥17 million ($155 thousand) for machinery,equipment and vehicles, ¥6 million ($58 thousand) for other (property, plant and equipment), and¥5 million ($50 thousand) for other (intangible assets).
・Impairment loss of \54 million ($492 thousand) recognized for Chiyoda-ku, Tokyo, etc. includes¥28 million ($253 thousand) for buildings and structures, ¥13 million ($123 thousand) for

－

21 －

machinery and equipment, and ¥12 million ($116 thousand) for other (property, plant andequipment).
・Impairment loss of \3 million ($27 thousand) recognized for Steinhöring, Germany is for other(property, plant and equipment).

－

22 －

*8 Retirement benefit expenses
Fiscal year ended March 31, 2020
Certain domestic consolidated subsidiaries had applied the simplified method for calculating
retirement benefit obligations, but because of the revision of the retirement benefit plan due toreorganization in the lighting business, the number of employees who are eligible following thiscalculation method exceeded 300. Therefore, we switched to the principle method from the firstquarter of the fiscal year ended March 31, 2020.
As a result of this change, net defined benefit liability increased by ¥543 million and werecorded extraordinary losses of ¥543 million as retirement benefit expenses at the end of theprevious fiscal year.
Fiscal year ended March 31, 2021
Not applicable.
*9 Business structure improvement expenses
Fiscal year ended March 31, 2020
Business structure improvement expenses were incurred in implementing the business structure
improvement to maintain and improve the profitability of the Company’s businesses. The major
components in the breakdown of these expenses were ¥924 million of expenses for personnel
downsizing, etc. due to the restructuring of CHRISTIE Group.
Fiscal year ended March 31, 2021
Business structure improvement expenses were incurred in implementing the business structure
improvement to maintain and improve the profitability of the Company’s businesses. The major
components in the breakdown of these expenses were \1,490 million ($13,462 thousand) of expenses
for personnel downsizing, etc. due to the restructuring of CHRISTIE Group and Ushio Germany GmbH as
well as the resolution to dissolve WACOM ELECTRIC CO., LTD., and \526 million ($4,754 thousand) of
impairment loss, etc. due to the reorganization of unprofitable businesses.
*10 Loss on temporary closure
Fiscal year ended March 31, 2020
In response to requests from national governments regarding COVID-19, the Group has suspended
operations of factories and temporarily closed part of the imaging equipment business after taking
regulations in each country and prevention of the spread of infection into consideration.
As a result, fixed expenses (labor costs, depreciation, etc.) incurred during the period ofsuspension or closure are recorded as extraordinary losses due to closure of business, etc.
Fiscal year ended March 31, 2021
In response to requests from national governments regarding COVID-19, the Group has suspended
operations of factories and temporarily closed part of the imaging equipment business after taking
regulations in each country and prevention of the spread of infection into consideration.
As a result, fixed expenses (labor costs, depreciation, etc.) incurred during the period ofsuspension or closure are recorded as extraordinary losses due to closure of business, etc.

－

23 －

(Consolidated Statement of Comprehensive Income)
Reclassification adjustments and income tax effect allocated to each component of othercomprehensive income are as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Valuation difference on available-for-salesecurities:
Amount arising during the year
Reclassification adjustments

2,952(6,684)

8,814
197

79,6201,781

Amount before income tax effect(3,731)

9,012

81,401

Income tax effect1,073(2,606)(23,541)

Valuation difference on available-for-salesecurities(2,658)

6,405

57,860

2
8

1
7

16
71

Deferred gains or losses on hedges:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect

10

9

87

Income tax effect

(3)

(2)

(26)

Deferred gains or losses on hedges

7

6

60

(3,998)3

4,863-

43,933-

Amount before income tax effect
Income tax effect(3,995)-

4,863-

43,933-Foreign currency translation adjustment(3,995)

4,863

43,933(1,645)

3,396

30,677

619

628

5,677

(1,025)299

4,024(1,234)36,354(11,152)

Remeasurements of defined benefit plans

(726)

2,790

25,202

Share of other comprehensive income of entities
accounted for using equity method:Amount arising during the year

(12)

(36)

(332)

(12)

(36)

(332)

(7,385)

14,029126,724

Foreign currency translation adjustment:
Amount arising during the year
Reclassification adjustments

Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effect

Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income

－

24 －

(Consolidated Statement of Changes in Net Assets)
Fiscal year ended March 31, 2020
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2019

Increase

Decrease

Number ofshares as ofMarch 31, 2020

Shares issued:
Common shares
Total

133,628,721-

6,628,721

127,000,000

133,628,721-

6,628,721

127,000,000

7,641,087

5,510,467

6,670,571

6,480,983

7,641,087

5,510,467

6,670,571

6,480,983

Treasury shares:
Common shares (Note)
Total(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (352,300 shares and 310,450 shares at the beginning and end of the current fiscal
year, respectively).
2. The increase of 5,510,467 shares of treasury shares is made up by an increase of 5,507,300 sharesthrough market purchase and an increase of 3,167 shares by purchasing shares of less thanstandard unit.
3. The decrease of 6,670,571 shares of treasury shares is made up by a decrease of 6,628,721 shares
resulting from the retirement of treasury shares and a decrease of 41,850 shares due to issuancefrom the trust to eligible persons according to the stock remuneration plan for directors.
2. Dividends(1) Dividends paid
Resolution

Type ofsharesTotal
dividends(Millionsof yen)Annual general meeting of
the shareholders on June27, 2019

Commonshares6,316

Dividends per
share
(Yen)

50

Cut-off
date

Effective
date

March 31,2019

June 28,2019(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 27,
2019 include ¥17 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.
(2) Dividends with the cut-off date in the fiscal year ended March 31, 2020 and the effective datein the fiscal year ended March 31, 2021

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Sourceofdividends

Dividends
per share(Yen)

Cut-off
date

Effective
date

Annual general
meeting of theshareholders on
June 26, 2020

Commonshares3,141

Retainedearnings

26

March 31,2020

June 29,2020(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 26,
2020 include ¥8 million of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.

－

25 －

Fiscal year ended March 31, 2021
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2020

Increase

Number ofshares as ofMarch 31, 2021

Decrease

Shares issued:
Common shares
Total

127,000,000--

127,000,000

127,000,000--

127,000,000

6,480,983

2,574

59,2506,424,307

6,480,983

2,574

59,2506,424,307

Treasury shares
Common shares (Note)
Total(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration planfor directors (310,450 shares and 251,200 shares at the beginning and end of the current fiscal
year, respectively).
2. The increase of 2,574 shares of treasury shares is due to purchase of shares of less thanstandard unit.
3. The decrease of 59,250 shares of treasury shares is due to issuance from the trust to eligible
persons according to the stock remuneration plan for directors.
2. Dividends(1) Dividends paid

Resolution

Type ofsharesTotal
dividends(Millionsof yen)Annual general
meeting of theshareholders on
June 26, 2020
CommonsharesCommonshares

3,141

Total
Dividends per
dividends
share(Thousands of(Yen)
U.S. dollars)

28,376

26

Dividends
per share(U.S.
dollars)Cut-off
date

Effective
date

0.23

March 31,2020

June 29,2020(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 26,
2020 include ¥8 million ($72 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

－

26 －

(2) Dividends with the cut-off date in the fiscal year ended March 31, 2021 and the effective datein the fiscal year ending March 31, 2022

Resolution

Type ofsharesAnnual general
meeting of theshareholders
on June 29,
2021

Commonshares

Total
Total
dividends
Sourcedividends(Thousandsof(Millionsof U.S.
dividendsof yen)dollars)

Dividends
per share(Yen)

Dividends
per share(U.S.
dollars)Cut-off
date

Effective
date

Retainedearnings

26

0.23

March 31,2021

June 30,
2021

3,141

28,375(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29,
2021 include ¥6 million ($58 thousand) of dividends on the Company’s shares held by the trust forthe stock remuneration plan for directors.

－

27 －

(Consolidated Statement of Cash Flows)*1. Reconciliation between cash and cash equivalents at end of period and the amount on the
consolidated balance sheet
Fiscal year ended
March 31, 2020
Cash and deposits
Time deposits with a maturity of morethan three months
Money management funds and others
included in securities
Cash and cash equivalents(Millions of yen)
60,679Fiscal year ended
March 31, 2021
(Millions of yen)
73,670(Thousands of U.S. dollars)
665,440(1,861)(3,423)(30,923)

228

171

1,544

59,04670,418636,062*2. Major components of assets and liabilities of companies excluded from the scope of consolidation
due to sale of sharesFiscal year ended March 31, 2020
Information is omitted because of immateriality.
Fiscal year ended March 31, 2021
Not applicable.
(Lease Transactions)1. Finance lease transactions
Finance lease transactions that do not transfer ownership
1) Leased assets
・Property, plant and equipment
These leases are mainly production facilities (machinery, equipment and vehicles) andinspection instruments (other) of the Company.
・Intangible assets
These leases are mainly software (other) of the Company’s consolidated subsidiaries.
2) Depreciation of leased assets
Leased assets are depreciated by the straight-line method over the lease period that is deemedas the useful life, assuming no residual value.
2. Operating lease transactions
Future minimum lease payments under non-cancelable operating leases
As of March 31, 2020

As of March 31, 2021

(Millions of yen)

(Millions of yen)(Thousands of U.S. dollars)

Due within one year

1,115

936

8,462

Due after one year

1,247

1,679

15,168

Total

2,363

2,616

23,630－28 －(Financial Instruments)
1. Overview of financial instruments(1) Basic policy on treating financial instruments
The Group invests floating money and funds reserved for future business expansion mainly inhighly safe financial assets, according to the Group’s cash management plan. Method of fundraising is determined based upon the use of funds and financing environment. The Group utilizes
derivative transactions only to avoid foreign exchange rate fluctuation risk and interest rate
fluctuation risk, and does not use them for trading or speculative purposes.
(2) The nature and risk of financial instruments
Notes and accounts receivable – trade, which are operating receivables, are exposed to customer
credit risk. Operating receivables denominated in foreign currencies are also exposed to foreignexchange risk; however, such risk is hedged by using forward foreign exchange contracts.
Securities and investment securities consist mainly of equity securities issued by companies
with whom the Group has business alliances and equity or debt securities held for the purpose of
short-term investment of floating money and reserved funds. Investments in money held in trust isalso held for the purpose of investment of reserved funds. These investments are exposed to market
risk. A part of securities, investment securities, and investments in money held in trust are
denominated in foreign currency, and they are exposed to foreign exchange risk; however, such risk
is hedged by using forward foreign exchange contracts.
Notes and accounts payable – trade, which are operating payables, are mostly due within one
year. Some of them are denominated in foreign currencies and exposed to foreign exchange risk;
however, such risk is hedged by using forward foreign exchange contracts.
Short-term and long-term loans payable, which are made to obtain working capital, are mostly due
within two years after the end of the current fiscal year. While floating-rate loans payable areexposed to interest rate risk, certain long-term floating-rate loans payable are hedged by using
interest rate swaps.
As for derivative transactions, forward foreign exchange contracts are entered into for the
purpose of hedging foreign exchange risk deriving from operating receivables and payables
denominated in foreign currencies, loans payable denominated in foreign currencies and securities
denominated in foreign currencies. In addition, interest rate swaps are entered into for the
purpose of hedging interest rate fluctuation risk deriving from interest payments for loans
payable. For the hedging instruments and hedged items under the hedge accounting, hedging policy,
and the method of assessing the hedge effectiveness, please refer to “Significant Matters Forming
the Basis of Preparation of Consolidated Financial Statements, 4. Accounting policies, (5)Significant hedge accounting” prescribed above.
(3) Risk management structure regarding financial instruments
1) Management of credit risk (customers’ default risk, etc.)
For operating receivables, the Company reviews the credibility of customers by monitoring theirfinancial status on a daily and continuous basis in accordance with the internal regulations for
credit exposure management. At the same time, it endeavors to early identify and mitigate any
concern on the collection of receivables due to deteriorated financial conditions by managing due
dates and balances for each customer and appropriately reviewing the credit lines. The Company’s
consolidated subsidiaries also manage operating receivables in the same manner in accordance with
the Company’s internal rules for credit exposure management. The credit risk associated withdebt securities is immaterial since the Group invests in debt securities with high credit
ratings.
Derivative transactions are entered into only with highly rated financial institutions in orderto mitigate counterparty risk.
As of the end of the current fiscal year, the maximum credit risk amount is presented as theconsolidated balance sheet amounts of financial assets that are exposed to credit risk.

－

29 －

2) Management of market risk (fluctuation risk of foreign currency exchange and interest rates,
etc.)
The Company utilizes forward foreign exchange contracts for foreign exchange risk identified bycurrency and by month in relation to operating receivables and payables denominated in foreign
currencies, loans payable denominated in foreign currencies and securities denominated in foreign
currencies in accordance with the internal rules for market risk management. Some of theCompany’s consolidated subsidiaries also manage market risk in the same manner in accordancewith the Company’s internal rules for market risk management.
For securities and investment securities, market prices and the financial position of theissuers are periodically monitored and reported to directors in charge in accordance with theinternal rules for market risk management. In addition, the holding status of shares issued bycompanies with business relationships is continuously reviewed in consideration of therelationships with those companies.
Derivative transactions are reported to directors in charge on a daily basis as well as to theBoard of Directors in accordance with the internal rules for derivative transactions that define
the authorization policy and limits of transactions. The Company’s consolidated subsidiaries
also manage derivative transactions in the same manner in accordance with the Company’s internal
rules.
3) Management of liquidity risk associated with fund raising (risk of inability to pay on due
date)
Liquidity risk of the Company and its consolidated subsidiaries is managed by the Finance andTreasury Departments, preparing and updating the cash management plan based upon reports fromeach department as well as by maintaining certain level of liquidity.
(4) Supplementary explanation concerning fair values of financial instruments, etc.
The notional amounts of derivative transactions in “2. Fair value of financial instruments” donot, in themselves, indicate the market risk associated with the derivative transactions.

－

30 －

2. Fair value of financial instruments
The table below presents the amounts of financial instruments recorded in the consolidated balance
sheet and their fair values, as well as their differences. Financial instruments whose fair values
cannot be reliably determined are not included.
As of March 31, 2020
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

60,67960,679-38,449-(1) Cash and deposits(2) Notes and accounts receivable-trade40,326

Allowance for doubtful accounts (*1)

(1,877)38,449(3) Securities and investment securities
Trading securities

1,394

1,394

-

Available-for-sale securities

50,92450,924-(4) Investments in money held in trust

2,269

2,269

-

153,717

153,717-(1) Notes and accounts payable-trade

18,73018,730-(2) Short-term loans payable

3,110

3,110

-

(3) Current portion of long-term loans payable

6,298

6,446

147

(4) Long-term loans payable

12,847

13,139292

40,98741,427440

Assets, total

Liabilities, total
Derivative transactions (*2)
for which hedge accounting is not applied

63

63

-

for which hedge accounting is applied

(14)

(14)

-

(*1): The deducted amount includes general and specific allowance for doubtful accounts relating tonotes and accounts receivable – trade.
(*2): Assets and liabilities arising from derivative transactions are stated in the net amount. The
figures in brackets indicate net liabilities.

－

31 －

As of March 31, 2021
Consolidated balance
sheet amount(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

(1) Cash and deposits

73,67073,670-(2) Notes and accounts receivable-trade34,024

Allowance for doubtful accounts (*1)(2,510)31,51431,514-

Trading securities

1,307

1,307

-

Available-for-sale securities

55,98755,987-(4) Investments in money held in trust

1,812

1,812

-

164,293

164,293-(1) Notes and accounts payable-trade

16,356

16,356-(2) Short-term loans payable

6,058

6,058

-

(3) Current portion of long-term loans payable

3,520

3,519

(0)

(4) Long-term loans payable

15,056

14,740(315)

40,991

40,674(316)

for which hedge accounting is not applied

(62)

(62)

-

for which hedge accounting is applied

(5)

(5)

-

Consolidated balance
sheet amount(Thousands of U.S. dollars)

Fair value(Thousands of U.S. dollars)(3) Securities and investment securities

Assets, total

Liabilities, total
Derivative transactions (*2)

As of March 31, 2021

(1) Cash and deposits

665,440

Difference(Thousands of U.S. dollars)

665,440-

284,658

284,658-

Trading securities

11,813

11,813-Available-for-sale securities

505,714505,714-(4) Investments in money held in trust

16,367

16,367-

1,483,994

1,483,994-(1) Notes and accounts payable-trade147,741

147,741-(2) Short-term loans payable

54,72154,721-(2) Notes and accounts receivable-trade307,330

Allowance for doubtful accounts (*1)

(22,672)(3) Securities and investment securities

Assets, total(3) Current portion of long-term loans payable

31,794

31,786(7)(4) Long-term loans payable

136,000

133,149(2,851)

370,258

367,399(2,859)for which hedge accounting is not applied

(561)

(561)

-

for which hedge accounting is applied

(45)

(45)

-

Liabilities, total
Derivative transactions (*2)(*1): The deducted amount includes general and specific allowance for doubtful accounts relating tonotes and accounts receivable – trade.
(*2): Assets and liabilities arising from derivative transactions are stated in the net amount. The
figures in brackets indicate net liabilities.

－

32 －

(Notes) 1. Measurement method of fair values of financial instruments and matters concerning securities andderivative transactions
Assets(1) Cash and deposits and (2) Notes and accounts receivable – trade
The fair value of these accounts approximates their book value because they are settled ina short period of time. Thus, the fair value is presented as their book value.
(3) Securities and investment securities
The fair value of equity securities is based on market prices at the stock exchange, andthat of debt securities is obtained from financial institutions. Please refer to Note
“Securities and Investment Securities” for notes on securities by holding purpose.
(4) Investments in money held in trust
The fair value is based upon the price obtained from financial institutions.
Liabilities(1) Notes and accounts payable – trade and (2) Short-term loans payable
The fair value of these accounts approximates their book value because they are settled ina short period of time. Thus, the fair value is presented as their book value.
(3) Current portion of long-term loans payable and (4) Long-term loans payable
The fair value of long-term loans payable is measured by discounting the total of principal
and interest at an assumed rate for similar new borrowings.
Derivative transactions
The fair value is measured based upon the prices obtained from financial institutions.
Please refer to Note “Derivative Transactions” for notes on derivative transactions bytype of transaction.
2. Financial instruments whose fair values cannot be reliably determinedClassification

Consolidated balance
sheet amount(As of March 31, 2020)(Millions of yen)

Unlisted shares and investments
in business partnerships withlimited liability

Consolidated balance sheet amount(As of March 31, 2021)(Millions of yen)

2,182

(Thousands of U.S. dollars)

1,984

17,929The above financial instruments are not included in “(3) Securities and investment securities” because
their market prices are not available and their fair values cannot be reliably determined.
3. Redemption schedule for monetary receivables and securities with maturity dates after the
consolidated balance sheet date
As of March 31, 2020
Due after one
Due after fiveDue within one year
year and up to
years and up to Due after ten years(Millions of yen)five years
ten years(Millions of yen)
(Millions of yen) (Millions of yen)
Cash and deposits

60,679---40,270

56

-

-

-

-

-

-

(2) Corporate bonds

1,531

8,236

1,188

1,741

Total

102,480

8,293

1,188

1,741

Notes and accounts
receivable-trade
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds

－

33 －

As of March 31, 2021
Due within one year
(Millions of yen)
Cash and deposits

Due after one
year and up to
five years(Millions of yen)

Due after five
years and up to Due after ten years(Millions of yen)ten years(Millions of yen)

73,670---33,965

58

-

-

-

-

-

-

555

8,142

1,539

1,771

108,192

8,201

1,539

1,771

Due after one
year and up to
five years(Thousands of
U.S. dollars)

Due after five
years and up toten years(Thousands of
U.S. dollars)

665,440---

306,798

532

-

-

-

-

-

-

(2) Corporate bonds

5,016

73,551

13,90316,000

Total

977,255

74,083

13,90316,000Notes and accounts
receivable-trade
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds(2) Corporate bonds
Total

As of March 31, 2021
Due within one year
(Thousands of
U.S. dollars)
Cash and deposits
Notes and accounts
receivable-trade
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds

－

34 －

Due after ten years(Thousands of
U.S. dollars)4. Redemption schedule for bonds, long-term loans payable, lease obligations and other interest
bearing debts after the consolidated balance sheet date
As of March 31, 2020
Due after three
Due after two years
Due after four years
Due after one year
years and up to fourand up to three
Due within one year
and up to five years
and up to two years
years
years
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
Short-term loans payable

3,110

-

-

-

-

Long-term loans payable

6,298

3,548

8,874

424

-

Total

9,409

3,548

8,874

424

-

As of March 31, 2021
Due after three
Due after two years
Due after four years
and up to three
years and up to fourand up to five years
years
years
(Millions of yen)
(Millions of yen)
(Millions of yen)

Due within one year
(Millions of yen)

Due after one year
and up to two years(Millions of yen)

Short-term loans payable

6,058

-

-

-

-

Long-term loans payable

3,520

15,056

-

-

-

Total

9,578

15,056---

As of March 31, 2021
Due within one year
(Thousands of U.S. dollars)

Due after one year and up to Due after two years and up Due after three years and up Due after four years and up
two years
to three years
to four years
to five years(Thousands of U.S. dollars) (Thousands of U.S. dollars) (Thousands of U.S. dollars) (Thousands of U.S. dollars)

Short-term loans payable

54,721----Long-term loans payable

31,794136,000

-

-

-

Total

86,516

136,000

-

-

-

－

35 －

(Securities and Investment Securities)
1. Trading securities
As of March 31, 2020
(Millions of yen)
Valuation difference included in
profit or loss

As of March 31, 2021
(Millions of yen)(Thousands of U.S. dollars)

(351)

(119)

(1,081)

Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

27,771

8,945

18,825

-

-

-

4,292

4,215

76

1,058

761

296

33,121

13,92319,198

518

1,007

(489)

-

-

-

17,056

18,316(1,260)---17,574

19,324(1,750)50,69633,247

17,4482. Available-for-sale securities
As of March 31, 2020

(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities whosecarrying value
exceeds theiracquisition
costs(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporate
bonds

Securities whosecarrying value
does not exceed
theiracquisition
costs(3) Other
Subtotal
Total(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on
the consolidated balance sheet: ¥2,182 million) are not included in the above table of“Available-for-sale securities” as their market prices are not available and their fair values
cannot be reliably determined.

－

36 －

As of March 31, 2021

Securities whosecarrying value
exceeds theiracquisition
costs

Type

Carrying value(Millions of yen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Shares

35,584

9,259

26,325---

11,00910,606402(2) Bonds:
1) National
and local
government
bonds2) Corporatebonds(3) Other
Subtotal(1) Shares

Securities whosecarrying value
does not exceed
theiracquisition
costs(2) Bonds:
1) National
and local
government
bonds2) Corporatebonds(3) Other

1,212

774

437

47,806

20,64027,166

237

384

(146)

-

-

-

7,771

7,926

(154)

-

-

-

8,009

8,310

(300)

55,81628,95026,865Carrying value(Thousands of
U.S. dollars)
321,423

Acquisition cost(Thousands of
U.S. dollars)
83,633Difference(Thousands of
U.S. dollars)
237,790---

99,441

95,801

3,639

Subtotal
Total
As of March 31, 2021
Type(1) Shares

Securities whosecarrying value
exceeds theiracquisition
costs

Securities whosecarrying value
does not exceed
theiracquisition
costs(2) Bonds:
1) National
and local
government
bonds2) Corporatebonds(3) Other

10,954

7,000

3,954

Subtotal

431,819

186,434

245,384(1) Shares(2) Bonds:
1) National
and local
government
bonds2) Corporatebonds(3) Other

2,149

3,469

(1,320)---70,201

71,597(1,396)---

Subtotal
Total

72,35075,067(2,716)504,169

261,501

242,667(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on
the consolidated balance sheet: ¥1,984 million ($17,929 thousand)) are not included in the abovetable of “Available-for-sale securities” as their market prices are not available and their fairvalues cannot be reliably determined.

－

37 －

3. Available-for-sale securities soldFiscal year ended March 31, 2020
Type

Amount sold(Millions of yen)

(1) Shares

Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

6,609

6,312

-

(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds

-

-

-

-

-

-

(3) Other

-

-

-

6,609

6,312

-

Aggregate gains on sales(Millions of yen)

Aggregate losses on sales(Millions of yen)

329

255

-

-

-

-

4,891

22

61

-

-

-

5,220

278

61

Amount sold(Thousands of U.S. dollars)

Aggregate gains on sales(Thousands of U.S. dollars)

Aggregate losses on sales(Thousands of U.S. dollars)

2,974

2,305

-

-

-

-

44,184

205

558

-

-

-

47,158

2,511

558

Total
Fiscal year ended March 31, 2021
Type

Amount sold(Millions of yen)

(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds(3) Other
Total
Fiscal year ended March 31, 2021
Type(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds(3) OtherTotal

4. Impairment loss recognized on securities
Fiscal year ended March 31, 2020
For the fiscal year ended March 31, 2020, impairment loss of ¥86 million was recognized for
securities (¥53 million for shares of associates and ¥32 million for available-for-salesecurities).
Fiscal year ended March 31, 2021
For the fiscal year ended March 31, 2021, impairment loss of ¥320 million ($2,899 thousand) was
recognized for securities for available-for-sale securities - bonds.
Impairment loss is recognized for all the securities whose fair value at the end of the fiscal
year declines by 50% or more of their acquisition cost. It is also recognized when the fair value
declines by approximately 30% to 50% of the acquisition cost at the amount deemed necessary
considering the recoverability of the fair value of the security.

－

38 －

(Derivative Transactions)
1. Derivative transactions for which hedge accounting is not applied
Currency-related transactions:
As of March 31, 2020
Estimated
Maturing
Notional amounts
fair value
after one year
Classification
Type of transaction(Millions of yen)
(Millions of yen) (Millions of yen)
Forward foreignexchange contracts:

Valuation
gain (loss)(Millions of yen)

Sell:
Bilateraltransactions

USD

441

-

6

6

EUR

153

-

9

9

USD

83

-

2

2

JPY

1,506

-

52

52

2,184

-

72

72

Buy:

Total

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2021
Classification

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

Estimated
fair value(Millions of yen)

Valuation
gain (loss)(Millions of yen)

USD

966

-

(28)

(28)

EUR

147

-

(8)

(8)

USD

59

-

0

0

JPY

933

-

(24)

(24)

2,106

-

(62)

(62)

Type of transaction
Forward foreignexchange contracts:
Sell:

Bilateraltransactions

Buy:

Total

－

39 －

As of March 31, 2021
Classification

Notional
amounts(Thousands of
U.S. dollars)

Maturing
after one year
(Thousands of
U.S. dollars)

USD

8,734

-

(260)

(260)

EUR

1,329

-

(80)

(80)

USD

533

-

3

3

JPY

8,431

-

(224)

(224)

19,028

-

(561)

(561)

Type of transaction

Estimated
fair value(Thousands of
U.S. dollars)

Valuation
gain (loss)(Thousands of
U.S. dollars)

Forward foreignexchange contracts:
Sell:
Bilateraltransactions

Buy:

Total

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
Interest-rate-related transactions:
As of March 31, 2020
Classificati
onBilateraltransactionsType of transaction

Notional
amounts(Millions ofyen)

Maturing
after one year
(Millions of
yen)

484

464

Estimated
fair value(Millions ofyen)

Valuation
gain (loss)(Millions ofyen)Interest rate swaps:
Receive floating/
Pay fixed

(9)

(9)

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2021
Not applicable.

－

40 －

2. Derivative transactions for which hedge accounting is applied
Interest-rate-related transactions:
As of March 31, 2020
Hedge accounting

Deferred hedge
accounting

Type oftransaction
Interest rate
swaps:
Receivefloating/ Pay
fixed

Hedged item

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)

3,450

3,450

(14)

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)

3,450

－

(5)

Long-termloans payable

As of March 31, 2021
Hedge accounting

Deferred hedge
accounting

Type oftransaction
Interest rate
swaps:
Receivefloating/ Pay
fixed

Hedged item

Long-termloans payable

As of March 31, 2021

Hedge accounting

Deferred hedge
accounting

Type oftransaction
Interest rate
swaps:
Receivefloating/ Pay
fixed

Hedged item

Notional amounts(Thousands of
U.S. dollars)Long-termloans payable

31,162

Maturing after
one year(Thousands of
U.S. dollars)

Estimated fairvalue
(Thousands of
U.S. dollars)－(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.

－

41 －

(45)

(Retirement Benefit Plans)
1. Overview of retirement benefit plan adopted by the Company
To prepare for the payment of employees’ retirement benefits, the Company and its consolidated
subsidiaries adopted funded and unfunded defined benefit plans, and a defined contribution plan.
Under the defined benefit corporate pension plans, all of which are funded, the Company provides
lump-sum or pension benefits based on salaries and length of service.
In addition, retirement benefit trusts are set up for said corporate pension plans of the Company.
Under the lump-sum retirement benefit plans, which are principally unfunded and partially funded asa result of the setup of retirement benefit trusts, the Company provides lump-sum benefits based onsalaries and length of service.
Under the defined benefit corporate pension plans and the lump-sum retirement benefit plans forcertain consolidated subsidiaries, net defined benefit liability and retirement benefit expenses arecalculated by the simplified method.
2. Defined benefit plan
(1) Reconciliation between retirement benefit obligations at beginning of period and end of period
Fiscal year ended
March 31, 2020

Fiscal year ended March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Retirement benefit obligation at beginning of period
Current service costs

21,85823,523

212,476

1,138

1,191

10,765Interest costs

146

150

1,363

Actuarial gains and losses arising during period

54

(302)

(2,736)

(600)

(611)

(5,527)

92

-

-

299

-

-

543

-

-

(10)

50

456

23,52324,001

216,796

Retirement benefits paid
Past service costs
Amount transferred due to change from
simplified accounting method to principle
methodExpenses associated with change from
simplified accounting method to principle
methodEffect of exchange rate changes
Retirement benefit obligation at end of period

－

42 －

(2) Reconciliation between plan assets at beginning of period and end of period (excluding plans towhich simplified method is applied stated in (3))
Fiscal year ended
March 31, 2020

Fiscal year ended March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Plan assets at beginning of period
Expected return on plan assets
Actuarial gains and losses arising during period

22,79321,924

198,039

326

318

2,872

(1,497)

3,093

27,941

Contributions from employer

838

894

8,079

Retirement benefits paid

(527)

(487)

(4,405)

(9)

13

123

21,92425,756

232,650

Effect of exchange rate changes
Plan assets at end of period(3) Reconciliation between net defined benefit liabilities for plans to which simplified method isapplied at beginning of period and end of period
Fiscal year ended
March 31, 2020

Fiscal year ended March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Net defined benefit liability at beginning of period

729

281

2,539

Retirement benefit expenses

160

52

471

Retirement benefits paid

(24)

(19)

(172)

(268)

-

-

(299)

-

-

Amount transferred to long-term accrualand accrual
Amounts transferred due to change from
simplified accounting method to principle
methodExtra retirement payments

-

157

1,426

Other

(11)

(15)

(140)

Effect of exchange rate changes

(4)

5

53

281

462

4,177

Net defined benefit liability at end of period(Note) The amounts of debt that has been confirmed has been transferred from “net defined benefit
liability” to “long-term accrual” and “accrual” as a result of the absorption-type merger of
certain consolidated subsidiaries at April 1, 2020.

－

43 －

(4) Reconciliation between retirement benefit obligation and plan assets at end of period, anddefined benefit liability and defined benefit asset for retirement recognized on the
consolidated balance sheet
As of March 31, 2020

As of March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Retirement benefit obligation for funded plans

23,52324,001

216,796

Plan assets(21,924)(25,756)(232,650)

1,598(1,755)(15,853)

281

462

4,177

Net balance of liability and asset
recognized on the consolidated balance sheet

1,879(1,292)(11,676)

Net defined benefit liability

3,829

4,098

37,018Net defined benefit asset(1,949)(5,391)(48,694)

Net balance of liability and asset
recognized on the consolidated balance sheet

1,879(1,292)(11,676)Retirement benefit obligation for unfunded plans(5) Retirement benefit expenses and their breakdown
Fiscal year ended
March 31, 2020

Fiscal year ended March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

1,138

1,191

10,765Interest costs

Current service costs

146

150

1,363

Expected return on plan assets

(326)

(318)

(2,872)

Amortization of actuarial gains and losses

624

628

5,681

Amortization of past service costs

(6)

(0)

(4)

Expenses associated with change from
simplified accounting method to principle
method

543

-

-

Other

(76)

(47)

(431)

Retirement benefit expenses applying
simplified method

160

52

471

2,204

1,657

14,973Retirement benefit expenses under defined
benefit plans(Note) In addition to the above, for the fiscal year ended March 31, 2020, ¥924 million in extra
retirement payments and other was recorded as part of business structure improvement expenses under
extraordinary losses.
In addition to the above, for the fiscal year ended March 31, 2021, ¥1,490 million ($13,462
thousand) in extra retirement payments and other was recorded as part of business structure
improvement expenses under extraordinary losses.

－

44 －

(6) Remeasurements of defined benefit plans
The breakdown of the amount recognized in remeasurements of defined benefit plans (before tax
effect) in the consolidated statement of comprehensive income is as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Past service costs

99

0

4

Actuarial gains and losses

926(4,025)(36,358)

1,025(4,024)(36,354)

Total(7) Accumulated remeasurements of defined benefit plans
The breakdown of the amount recognized in accumulated remeasurements of defined benefit plans(before tax effect) on the consolidated balance sheet is as follows:
As of March 31, 2020

As of March 31, 2021

(Millions of yen)

(Millions of yen) (Thousands of U.S. dollars)

Unrecognized past service costs
Unrecognized actuarial gains and losses
Total

(74)

(73)

(667)

6,117

2,093

18,911

6,042

2,019

18,243(8) Plan assets
1) Breakdown of plan assets
Percentage of each main category to total plan assets is as follows:
As of March 31, 2020

As of March 31, 2021

Bonds

35%

31%

Securities

27%

35%

Cash and deposits

6%

6%

Alternative investments (Note 1)

26%

23%

Other

6%

5%

100%

100%

Total (Note 2)(Notes) 1. Alternative investments mainly consist of investment to hedge funds.
2. Total plan assets include retirement benefit trusts of 6% and 7% that are set up for a
corporate pension plan as of March 31, 2020 and 2021, respectively.
2) Determination of expected long-term rate of return on plan assets
In determining the expected long-term rate of return on plan assets, the Company takes into
consideration the current and future plan asset allocation, and the current and expected longterm rate of return on various asset categories comprising plan assets.
(9) Actuarial assumptions
Major bases for actuarial calculation
Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021
Discount rate

0.5～0.6%

0.5～0.7%

Long-term expected rate of return

1.5%

1.5%

Expected rate of salary increase

2.9%

2.9%

3. Defined contribution plan
The required contribution to the defined contribution plan amounts to \509 million and \356 million($3,220 thousand) for the fiscal years ended March 31, 2020 and 2021, respectively.

－

45 －

(Tax Effect Accounting)
1. Breakdown of major reason for deferred tax assets and deferred tax liabilities
As of March 31, 2020

As of March 31, 2021

(Millions of yen)
Deferred tax assets:
Net losses carried forward (Note 2)
Allowance for doubtful accounts
Provision for bonuses
Provision for product warranties
Net defined benefit liability
Provision and accrual for directors'
retirement benefits
Loss on valuation of inventories
Research and development expenses
Impairment loss
Deferred revenue
Elimination of unrealized income oninventories
Other
Total gross deferred tax assets
Valuation allowance for tax losses carriedforward (Note 2)
Valuation allowance for total amount of
deductible temporary differences
Valuation allowance (Note 1)
Total deferred tax assets
Deferred tax liabilities:
Net defined benefit asset
Valuation difference on available-for-salesecurities
Retained earnings of subsidiaries andassociates
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)(Millions of yen)(Thousands of U.S. dollars)

4,424
390
589
203
1,163

4,549
560
617
309
1,182

41,094
5,066
5,578
2,796
10,677

308

100

906

1,307
780
480
371

1,390
1,362
371
444

12,55912,305
3,357
4,012

739

659

5,955

3,732
14,491

3,387
14,93530,595
134,904(3,902)(4,431)(40,029)(5,009)(4,875)(44,037)(8,912)
5,579(9,306)
5,628(84,066)
50,838(43)(1,130)(10,213)(5,795)(8,089)(73,068)(1,324)(1,386)(12,520)(316)(7,480)(1,900)(32)(10,638)(5,010)(293)(96,095)(45,257)(Notes) 1. There is no significant change in the valuation allowance.
2. The amounts of tax losses carried forward and deferred tax assets by carry-forward expiry
period are as follows:
As of March 31, 2020

Tax losses
carriedforward (*1)
Valuation
allowance
Deferred tax
assetsDue within
one year

Due after
one yearand up totwo years(Millionsof yen)(Millionsof yen)Due after
two years
and up to
three
years
(Millionsof yen)

135

118

404

70

104

65

13

Due after
three
years andup to fouryears(Millionsof yen)Due after
four years
and up to
five years

Due after
five years

Total(Millionsof yen)(Millionsof yen)(Millionsof yen)

118

331

3,315

4,424

404

118

331

2,873

3,902

-

-

-

442

521

－

46 －

As of March 31, 2021

Tax losses
carriedforward (*1)
Valuation
allowance
Deferred tax
assetsDue within
one year

Due after
one yearand up totwo years

Due after
two years
and up to
three
years

Due after
three
years andup to fouryears

Due after
four years
and up to
five years

Due after
five years

Total(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions of
yen)

109

399

114

212

252

3,459

4,549

45

399

114

212

252

3,406

4,431

64

-

-

-

-

53

117

Due within
one year

Due after
one yearand up totwo years

Due after
two years
and up to
three
years

Due after
three
years andup to fouryears

Due after
four years
and up to
five years

Due after
five years

Total(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)(Thousandsof U.S.
dollars)

990

3,608

1,037

1,923

2,282

31,25041,094

407

3,608

1,037

1,923

2,282

30,76840,029

583

-

-

-

-

481

1,065

As of March 31, 2021

Tax losses
carriedforward (*1)
Valuation
allowance
Deferred tax
assets(*1) The amounts of tax losses carried forward are multiplied by the statutory tax rate.
2. Reconciliation of significant difference between statutory tax rate and effective tax rate after
application of tax effect accounting
As of March 31, 2020 As of March 31, 2021
Statutory tax rate
Reconciliation:
Increase (decrease) in valuation allowancefor deferred tax assets
Non-taxable income for income tax purposes(e.g. dividend income)Non-deductible expenses for income tax
purposes (e.g. entertainment expenses)
Inhabitant tax on per capita basis
Tax deductions related to R&D activities
Different tax rates applied to consolidated
subsidiaries
Amortization of goodwill
Share of profit (loss) of entities accounted
for using equity method
Retained earnings of subsidiaries andassociates
Transfer pricing taxation-related
Gain on change in ownership interest in
equityOther
Effective tax rate after application of tax
effect accounting

－

30.6%

30.6%

6.1

(236.2)(3.6)(67.6)

3.3

606.7

0.3
(4.6)

39.6
(132.4)

(2.7)

293.3

1.2

81.9

0.1

20.9

2.5

109.1

(2.1)

-

-

(117.3)

0.0

(2.2)

31.2

626.5

47 －

(Segment Information, etc.)
Segment information
1. Summary of reportable segments
The Company defines a reportable segment as a component of the Company for which discrete financial
information is available and whose operating results are regularly reviewed by the Board of Directors
to assess its business performance and make decisions about resources to be allocated to the segment.
The Company has a division system based on product type and similarity in sales market, etc., andeach division develops and implements comprehensive domestic and overseas strategies for its
development, manufacturing and sales of products and service, and engages in its business activities
globally.
Thus, reportable segments of the Company are divided into three categories based on product typeand sales market.
“Light sources business” conducts manufacturing and sales of halogen lamps and discharge lamps,
etc.
“Optical equipment business” conducts manufacturing and sales of optical equipment, etc.
“Imaging equipment business” conducts manufacturing and sales of imaging equipment, etc.
2. Changes to reportable segments(Changes to reportable segments)
Beginning with the first quarter of the current fiscal year, the reportable segments have beenchanged from “Light Sources” and “Equipment” to “Light sources business,” “Optical equipment
business,” and “Imaging equipment business.”
The change is that “Equipment” has been subdivided into “Optical equipment business” and“Imaging equipment business.” This was a result of changes to the management control structure
which were carried out, following the formulation of the new Medium-Term Management Plan, whose
initial fiscal year was the current fiscal year, to clarify the management issues of the “Opticalequipment business” and “Imaging equipment business” and facilitate the achievement of theestablished management targets through steady execution of business strategies in response to therespective business environments.
“Information about net sales, segment profit or loss, assets, liabilities and other items byreportable segment” for the previous fiscal year has been restated to reflect the above changes.
3. Methods of determining the amounts of net sales, profit or loss, assets, liabilities, and otheritems by reportable segment
Accounting policies for business segment reported are generally consistent with those given in“Significant Matters Forming the Basis of Preparation of Consolidated Financial Statements.”
Segment profit presents the operating profit of the segment.
Intersegment sales and transfers are recognized based on the market price.

－

48 －

4. Information about net sales, segment profit or loss, assets, liabilities and other items byreportable segment
Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segment

Other
busines
ses
(Note
1)

Total

Eliminations orunallocatedamounts(Note 2)

Amounts on
consolidat
edfinancialstatements(Note 3)Light
sourcesbusiness

Opticalequipment
business

Imagingequipment
business

Total

Net sales
Sales to external customers
Intersegment sales or transfers

58,599108

36,18348

60,862
40

155,645
197

3,363
31

159,009228- 159,009(228)(228) 159,009

Total

58,70736,23260,903

155,8423,394

159,237

Segment profit (loss)

6,061

(585)

903

6,379

30

6,409

249

6,659

Segment assets

88,54363,066

54,682

206,291

56,160262,451

12,452274,904

3,044
284

1,642
182

2,455
169

7,142
636

39
-

7,182
636

-

7,182
636

-

273

-

273

-

273

-

273

3,489

3,186

1,269

7,945

324

8,270

-

8,270

Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property, plantand equipment andintangible assets (Note 4)(Notes) 1. “Other businesses” represents business segments that are not included in other reportablesegments and other revenue-generating business activities, including industrial machinery andfund management activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to \249 million,
include elimination of intersegment transactions totaling \156 million.
(2) Eliminations or unallocated amounts of segment assets, amounting to \12,452 million, include
elimination of intersegment receivables and payables totaling ¥(9,692) million and corporate
assets not allocable to any reportable segment or other revenue-generating businessactivities totaling ¥22,333 million that consists primarily of surplus funds (cash andsecurities) and long-term investments (investment securities), etc.
3. Segment profit (loss) is reconciled to operating profit on the consolidated statement ofincome.
4. The increase in long-term prepaid expense is included in increases in property, plant andequipment and intangible assets.

－

49 －

Fiscal year ended March 31, 2021
Reportable segment

Other
business
es(Note 1)

(Millions of yen)
Elimination Amounts on
consolidateds or
financialunallocatedstatements
amounts(Note 3)(Note 2)Light
sourcesbusiness

Opticalequipment
business

Imagingequipment
business

Total

Net sales
Sales to external customers
Intersegment sales or transfers

45,77458

38,99942

31,052
10

115,826
111

2,732
31

118,558
143(143)

118,558-

Total

45,83339,041

31,063

115,938

2,763

118,701(143)

118,558

Total

Segment profit (loss)

3,232

845

(3,491)

587

56

644

120

764

Segment assets

98,804

68,18349,424

216,41260,439276,852

13,422

290,275

2,775
177

2,053
182

2,124
-

6,953
359

35
-

6,988
359

-

6,988
359

-

221

-

221

-

221

-

221

2,031

3,977

459

6,468

417

6,886

-

6,886

Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property, plantand equipment andintangible assets(Note 4)

Fiscal year ended March 31, 2021
Reportable segment

Net sales
Sales to external customers
Intersegment sales or transfers
Total

Light
sourcesbusiness

Opticalequipment
business

Imagingequipment
business

413,463352,267

280,484 1,046,215

530

380

413,993352,648

98

Total

1,009

280,582 1,047,224

Otherbusiness
es(Note 1)(Thousands of U.S. dollars)Elimination Amounts on
consolidateds or
financialunallocatedTotalstatements
amounts(Note 3)(Note 2)

24,679 1,070,894
283

1,293

24,963 1,072,187- 1,070,894(1,293)-(1,293) 1,070,894

Segment profit (loss)

29,202

7,640

Segment assets

892,462

615,878446,432 1,954,773

25,067

18,552

19,191

62,811

317

63,128-63,128

1,604

1,647

-

3,251

-

3,251

-

3,251

-

1,996

-

1,996

-

1,996

-

1,996

18,34835,9304,149

58,4283,774

62,203-62,203

Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property, plantand equipment andintangible assets(Note 4)(31,537)

5,304

512

5,817

545,930 2,500,703

1,085

6,902

121,242 2,621,945(Notes) 1. “Other businesses” represents business segments that are not included in other reportablesegments and other revenue-generating business activities, including industrial machinery andfund management activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to \120 million($1,085 thousand), include elimination of intersegment transactions totaling \150 million($1,363 thousand).
(2) Eliminations or unallocated amounts of segment assets, amounting to \13,422 million ($121,242
thousand), include elimination of intersegment receivables and payables totaling ¥(10,250)
million ($(92,585) thousand) and corporate assets not allocable to any reportable segment orother revenue-generating business activities totaling ¥23,786 million ($214,856 thousand)that consists primarily of surplus funds (cash and securities) and long-term investments(investment securities), etc.

－

50 －

3. Segment profit (loss) is reconciled to operating profit on the consolidated statement ofincome.
4. The increase in long-term prepaid expense is included in increases in property, plant andequipment and intangible assets.
Related information
Fiscal year ended March 31, 2020
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
39,655

North America
U.S.A.

EuropeOther

33,016

Asia

2,399

China

14,972Other areas

Other

34,811

31,202

2,951

Total
159,009(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
30,516

North America
U.S.A.
7,099

EuropeCanada
2,026

1,279

Asia

Other areas

3,314

Total
6

3. Information by significant customer
Information by significant customer has been omitted since there is no external customer who
accounts for 10% or more of net sales in the consolidated statement of income.

－

51 －

44,242

Fiscal year ended March 31, 2021
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.
2. Information by geographic area
(1) Net sales(Millions of yen)Japan
35,385

North America
U.S.A.

EuropeOther

19,289

Asia

851

China

8,553

Other areas

Other

29,614

24,112

Total

751

118,558(Thousands of U.S. dollars)Japan
319,619

North America
U.S.A.

EuropeOther

174,232

Asia

7,695

Other areas

China

Other

267,498

217,799

77,264

Total

6,785

1,070,894(Note) Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment(Millions of yen)Japan
32,179North America
U.S.A.

EuropeCanada

6,780

1,698

Asia

1,157

Other areas

3,004

Total
2

44,822(Thousands of U.S. dollars)Japan
290,665

North America
U.S.A.

EuropeCanada61,243

15,338Asia

10,452Other areas

27,140Total

20

404,860

3. Information by significant customer
Information by significant customer has been omitted since there is no external customer who
accounts for 10% or more of net sales in the consolidated statement of income.
Information on impairment loss on non-current assets by reportable segment
Fiscal year ended March 31, 2020

Impairment loss

Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
28
25
101

Total
155

Other
businesses-(Millions of yen)
Eliminations
or
Total
unallocatedamounts-

155

Fiscal year ended March 31, 2021

Impairment loss

Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
111
112
445

－

52 －

Total
669

Other
businesses-(Millions of yen)
Eliminations
or
Total
unallocatedamounts-

669

Fiscal year ended March 31, 2021

Impairment loss

Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness
1,011
1,017
4,020

(Thousands of U.S. dollars)Eliminations
or
Other
Total
unallocatedbusinesses
amounts

Total
6,049

-

-

6,049

(Note) The impairment losses recorded in the consolidated statement of income as business structure
improvement expenses are as follows.
"Optical equipment business" \81 million ($734 thousand)"Imaging equipment business" \445 million ($4,020 thousand)Information on amortization and unamortized balance of goodwill by reportable segment
Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness

Total

Other
businesses

Eliminations
orunallocatedamounts

Total

Amortized forthe year

284

182

169

636

-

-

636

Balance

307

390

-

698

-

-

698

Fiscal year ended March 31, 2021
Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness

Total

Other
businesses(Millions of yen)
Eliminations
or
Total
unallocatedamounts

Amortized forthe year

177

182

-

359

-

-

359

Balance

126

208

-

335

-

-

335

Fiscal year ended March 31, 2021
Reportable segment
OpticalImagingLight sources
equipment
equipment
businessbusinessbusiness

Total(Thousands of U.S. dollars)Eliminations
Other
or
Total
businesses
unallocatedamounts

Amortized forthe year

1,604

1,647

-

3,251

-

-

3,251

Balance

1,146

1,881

-

3,028

-

-

3,028

Information on gain on negative goodwill by reportable segment
Fiscal year ended March 31, 2020
Not applicable.
Fiscal year ended March 31, 2021
Not applicable.

－

53 －

Related party information
Fiscal year ended March 31, 2020
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
Fiscal year ended March 31, 2021
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
(Per Share Information)
Fiscal year ended March 31, 2020
Net assets per share¥1,664.60
Basic earnings per share¥73.25
Diluted earnings per share is notpresented since no potential
shares exist.

Fiscal year ended March 31, 2021
Net assets per share¥1,750.79
Basic loss per share(¥5.70)
Diluted earnings per share is notpresented since the Company
posted a basic loss per share andno potential shares exist.

Net assets per share$15.81
Basic loss per share($0.05)
Diluted earnings per share is notpresented since the Company
posted a basic loss per share andno potential shares exist.

(Notes) 1. The basis used for calculating basic earnings (loss) per share is as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended March 31, 2021

(Millions of yen)
Profit (loss) attributable to owners of
the parent

Average number of common shares
outstanding during the year (Shares)(Thousands of U.S. dollars)

8,967

(687)

(6,206)

-

-

-

8,967

(687)

(6,206)

122,432,099

120,551,331

120,551,331

Profit (loss) not attributable tocommon shareholders
Profit (loss) attributable to owners of
the parent attributable to commonshares(Millions of yen)

2. The Company’s shares held by the trust for the stock remuneration plan for directors arerecorded as treasury shares in shareholders’ equity which are deducted from the total numberof shares issued at the balance sheet date for the purpose of calculating net assets per share(310,450 shares and 251,200 shares as of March 31, 2020 and 2021, respectively).
The Company’s shares held by the trust for the stock remuneration plan for directors arerecorded as treasury shares in shareholders’ equity which are deducted from the weightedaverage number of shares outstanding during the year for the purpose of calculating the basic
earnings (loss) per share (323,989 shares and 276,995 shares for the fiscal years ended March
31, 2020 and 2021, respectively).

－

54 －

(Subsequent Events)
Transfer of non-current assets
Ushio America, Inc., a wholly owned subsidiary of the Company, transferred the following non-current
assets on June 3, 2021.
(1) Reason for transfer of non-current assets
In line with the policy of effective utilization of management resources(2) Description of transferred assets
Classifications
Building and structures, and Land
Location
California, U.S.A.
(3) Date of transfer
June 3, 2021
(4) Transferee
The transferee was Kaeser Compressors, Inc., a foreign corporation. There are no capital
relationships, personal relationship, or business relationships between the transferee and theGroup. Moreover, the transferee does not fall under the definition of a related party of theGroup.
(5) Impact of transfer on profit and loss
The Group plans to include \1,100 million ($9,935 thousand) in gain on sales of non-current assets
under extraordinary income in the consolidated financial statements for the fiscal year ending
March 31, 2022.

－

55 －

5) Annexed Consolidated Detailed Schedules
Annexed detailed schedule of corporate bonds
Not applicable.
Annexed detailed schedule of borrowings

Classification

Short-term loans payable
Current portion of long-termloans payable
Current portion of leaseobligations
Long-term loans payable(excluding current portion)
Lease obligations (excluding
current portion)
Total

Balance at
beginning
Balance atBalance atof current
beginning of
end of current
periodcurrent
period(Thousands
period(Millions of yen)of U.S.
(Millions of yen)dollars)

Balance at
end ofcurrent
period(Thousandsof U.S.
dollars)

Averageinterest
rate(%)

Repayment
term

3,110

6,058

28,09354,721

0.9

-

6,298

3,520

56,89531,794

0.8

-

88

80

797

723

0.0

-

12,847

15,056116,047

136,000

1.8

2022

72

191

656

1,727

0.0

From 2022
to 2035

22,417

24,906

202,489

224,968--(Notes) 1. The average interest rate represents the weighted-average interest rate over the year-end
balance of loans.
2. The average interest rates on lease obligations are omitted for lease obligations which arerecorded in the consolidated balance sheet at the amount before deducting interest equivalents
included in the total lease payment. The average interest rates of lease obligations for which
the standard method is applied is shown on the table above.
3. The redemption schedule for long-term loans payable and lease obligations (excluding current
portions) for the five years after the consolidated balance sheet date is as follows:
Due after one year
and up to two years(Millions of yen)
Long-term loans
payableLease obligations

Long-term loans
payableLease obligations

Due after two years
and up to three years(Millions of yen)

Due after three years
and up to four years(Millions of yen)

Due after four years
and up to five years(Millions of yen)

15,056

-

-

-

16

14

12

12

Due after one year
and up to two years(Thousands of U.S. dollars)

Due after two years
and up to three years(Thousands of U.S. dollars)

Due after three years
and up to four years(Thousands of U.S. dollars)

Due after four years
and up to five years(Thousands of U.S. dollars)

136,000

-

-

-

148

134

117

117

Annexed detailed schedule of asset retirement obligations
Information is omitted because the amounts of asset retirement obligations at the beginning and theend of the current fiscal year are not more than 1% of the total amounts of liabilities and net assets
at the beginning and the end of the current fiscal year, in accordance with the provision under Article
92-2 of the Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial
Statements.

－

56 －

(2) Other Information
Quarterly information for the fiscal year ended March 31, 2021
(Cumulative period)
Net sales (Millions of yen)
Profit (loss) before
income taxes (Millions ofyen)Profit (loss)
attributable to owners of
the parent (Millions ofyen)
Basic earnings (loss) per
share (Yen)(Accounting period)
Basic earnings (loss) per
share (Yen)First three months

First six months

First nine months

Fiscal year ended
March 31, 2021

23,68652,021

82,431

118,558(350)(1,196)

(374)

130

(1,055)(1,971)(1,047)(687)(8.76)(16.36)(8.69)(5.70)First quarter

Second quarter(8.76)(7.60)

Third quarter

Fourth quarter

7.66

2.99

Quarterly information for the fiscal year ended March 31, 2021
(Cumulative period)
Net sales(Thousands of U.S. dollars)Profit (loss) before income
taxes (Thousands of U.S.
dollars)
Profit (loss) attributable toowners of the parent(Thousands of U.S. dollars)
Basic earnings (loss) per
share (U.S. dollars)(Accounting period)
Basic earnings (loss) per
share(U.S. dollars)First three months

First six months

First nine months

Fiscal year ended
March 31, 2021

213,954469,887744,571

1,070,894(3,162)(10,806)(3,384)

1,178(9,536)(17,809)(9,462)(6,206)(0.07)(0.14)(0.07)(0.05)First quarter

Second quarter(0.07)(0.06)－

57 －Third quarter
0.06

Fourth quarter0.02