Consolidated Financial Statements
USHIO INC.

Year ended March 31, 2019 with
Independent Auditor’s ReportConsolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheet

AssetsCurrent assets
Cash and deposits (*2)
Notes and accounts receivable-trade (*2,3)
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

As of March 31, 2018

(Millions of yen)

As of March 31, 2019

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

74,72542,255
4,851
25,717
13,624
14,92010,436(1,590)184,940

85,65539,456
4,405
27,915
17,362
17,1639,770(1,610)200,119

771,743
355,492
39,691
251,517
156,436
154,643
88,026(14,513)
1,803,037

42,045(23,845)
18,19922,823(18,764)
4,058
8,534
2,439
31,869(23,524)
8,345
41,57844,334(25,225)
19,10923,326(18,617)
4,709
8,572
1,481
34,198(25,019)
9,178
43,050399,446(227,274)
172,171
210,165(167,738)
42,427
77,234
13,346308,125(225,424)
82,700387,880

2,358
3,952
6,311

1,370
3,271
4,642

12,351
29,47841,82963,819
170
1,883
3,780
2,922
(103)
72,473
120,362
305,303

51,005
347
2,104
3,391
2,505
(538)
58,815
106,509306,628

459,553
3,129
18,95630,554
22,572(4,848)529,918
959,628
2,762,6663

As of March 31, 2018

Liabilities
Current liabilities
Notes and accounts payable-trade (*3)
Short-term loans payable (*2)

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

As of March 31, 2019

(Millions of yen)

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

21,414
6,950

21,665
10,008

195,198
90,177

873
2,185
2,194
48
18,622
54,174

7,021
2,047
2,192
11
18,10569,572

63,26318,44919,750105
163,126
626,837

17,9898,975

10,4104,592

93,796
41,376

189
2,918
237
5,176
35,822
89,997

221
3,186
244
4,816
23,80093,373

1,999
28,7082,201
43,391
214,440
841,278

19,556
27,771
163,217(17,212)
193,332

19,556
27,727
162,936(10,811)
199,408

176,198
249,819
1,468,027(97,411)
1,796,634

24,247

14,445130,154

21,744

13,693

123,375

1,884

335

(15)
984
(3,471)

229
215,306
305,303

8,520

329

(17)
2,761
(3,496)152
213,254306,628

76,765

2,967

(156)
24,884(31,506)

1,378
1,921,388
2,762,666

4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
Gain on trading securities
Gain on investments in money held in trust
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on trading securities
Share of loss of entities accounted for using
equity method
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 transfer of benefit obligation relating toemployees' pension fundGain on step acquisitions
Total 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 disaster
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries andassociates
Loss on valuation of shares of subsidiaries andassociates
Extra retirement payment
Loss on revision of retirement benefit plan
Business structure improvement expenses (*8)
OtherTotal extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of the parent

Fiscal year ended
March 31, 2018
(Millions of yen)
173,497
111,350
62,14651,995
10,151

Fiscal year ended
March 31, 2019
(Millions of yen) (Thousands of U.S. dollars)
165,138
1,487,864
106,611
960,552
58,526527,31150,008450,566
8,517
76,745

1,320
1,409
357
104
429
3,621

1,719
1,467
85
55
499
3,827

15,492
13,226
773
499
4,496
34,488

608
926
-

560
162

5,046
1,468

167
1,722
12,050153
906
11,4391,380
8,166
103,068

395
5,991

85
12,201

767
109,93130
12,442

12,286110,698

367
8
1,875
66
181

80
9
141
20
60
-

729
86
1,271
187
542
-

-

116

1,046

19

6,024

176

380
3,055
21,4372,917
7,731
10,648
10,788(213)
11,001

30

-

-

40
2,576
289
3,335
20,390
9,028
100
9,129
11,260(65)
11,326

271

-

-

368
23,2152,608
30,056
183,710
81,346907
82,253
101,456(588)
102,0455

Consolidated Statement of Comprehensive Income

Fiscal year ended
March 31, 2018

ProfitOther 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 of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to;(Millions of yen)
10,788

Fiscal year ended
March 31, 2019

(Millions of yen) (Thousands of U.S. dollars)
11,260101,456(6,160)(9,801)(88,307)

(0)

1

11

11
(2,187)
3,057

(1)
1,765
(25)

(17)
15,906(228)(5,279)5,509(8,061)
3,198(72,636)
28,820Owners of the parent

5,759

3,274

29,504Non-controlling interests

(250)

(75)

(684)

6

3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2018

(Millions of yen)

Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends fromsurplusProfit attributable toowners of the parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of shares of
consolidated
subsidiaries
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
periodDividends fromsurplusProfit attributable toowners of the parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of shares of
consolidated
subsidiaries
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end of current
periodCapitalsurplus19,556

Retainedearnings

27,772

Treasury shares,
at costTotal shareholders'equity(17,216)

185,658

155,545(3,329)(3,329)11,001

11,001

(7)

(7)

10

10

(1)

(1)
-

-

(1)

19,556

27,771

7,672

3

163,217(17,212)

Accumulated other comprehensive income
Foreign
Total
Valuation
currenc
Remeasuraccumuldifference
Deferredyements ofatedongains ortranslati
definedotheravailablelosses ononbenefitcomprehfor-salehedgesadjustmplans
ensivesecurities
ent
income30,407

(26)

3,135

(6,529)7,674

26,987

193,332

Noncontrollinginterests

Total
net
assets643

213,289(3,329)11,001

(7)

10

(1)
(6,160)11(2,151)

3,057(5,242)(414)(5,657)(6,160)11(2,151)

3,057(5,242)

(414)

2,016

24,247(15)984(3,471)

21,744229

215,306

7

Fiscal year ended March 31, 2019

(Millions of yen)

Shareholders' equity

Balance at beginning ofcurrent period
Changes of items during
periodDividends from surplus
Profit attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

Capital stock

Capital surplus

19,556

27,771Retainedearnings

Treasury shares, at cost Total shareholders' equity

163,217(17,212)

193,332(3,329)(3,329)11,326(43)

11,326(2,263)
9(8,611)(2,263)
9

8,654

333

-

333
-

-

(43)

19,556

27,727

(281)

6,401

162,936

6,076(10,811)

199,408

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends from surplus
Profit attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

Valuationdifference on
availablefor-salesecurities

24,247

Deferred
gains orlosses onhedges(15)

Total
Foreign
NonRemeasure accumulate
currency
controllin
ments ofd othertranslation
definedcomprehens g interests
adjustmen
benefit plansivetincome984(3,471)

21,744229

Total net
assets215,306(3,329)11,326(2,263)9-333(9,801)

(1)

1,777

(25)

(8,051)(76)(8,127)(9,801)

(1)

1,777

(25)

(8,051)(76)(2,051)

14,445

(17)

2,761

(3,496)

13,693

152

213,2548

Fiscal year ended March 31, 2019
Shareholders' equity

Balance at beginning ofcurrent period
Changes of items during
periodDividends from surplus
Profit attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

Capital stock

Capital surplus

176,198

250,213Retainedearnings
1,470,563(Thousands of U.S. dollars)

Treasury shares, at cost Total shareholders' equity(155,084)(29,997)(29,997)

102,045(393)

1,741,890(20,391)85(77,586)

77,9793,002

102,045(20,391)
85
-

3,002
-

-

(393)

176,198

249,819(2,535)57,673

1,468,027(97,411)54,743

1,796,634

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends from surplus
Profit attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current period

Valuationdifference on
availablefor-salesecurities

218,462

Deferred
gains orlosses onhedges

(139)

Total
Foreign
NonRemeasure accumulate
currency
controllin
ments ofd othertranslation
definedcomprehens g interests
adjustmen
benefit plansivetincome8,871(31,277)

195,916

2,063

Total net
assets1,939,870(29,997)

102,045(20,391)
85
-

3,002
(88,307)(17)

16,013(228)(72,540)(685)(73,226)(88,307)(17)

16,013(228)(72,540)(685)(18,482)

130,154(156)

24,884(31,506)

123,375

1,378

1,921,388

94) Consolidated Statement of Cash Flows

Operating activities
Profit before income taxes
Depreciation
Impairment loss
Loss on disaster
Increase (decrease) in net defined benefit liability
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Business structure improvement expenses
Interest and dividend income
Interest expenses
Loss (gain) on trading securities
Share of loss (profit) of entities accounted forusing 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 andassociates
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Other
SubtotalInterest and dividends received
Interest paid
Payment of business structure improvement expenses
Income taxes refund (paid)
Net cash provided by (used in) operating activities

Fiscal year ended
March 31, 2018
(Millions of yen)

Fiscal year ended
March 31, 2019

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

21,437
6,790
1,875(7,180)1,327

20,390
6,775
141
20
415
1,135

183,71061,050
1,271
187
3,743
10,233(2,729)
608
(357)

2,576
(3,187)560
162

23,215(28,718)
5,046
1,468

(387)
367
(5,924)
181

(75)
80
(12,141)
-

(681)
729
(109,389)-(1,223)

2,471

22,267

543

19

-

391

30

116

3,526

271

1,046

(4,766)(8,995)(81,050)

2,869
18,444
2,757(586)(1,479)(3,568)15,567(1,309)
9,811
2,948
(586)
(702)
(2,617)
8,853(11,797)
88,402
26,565(5,283)(6,330)(23,580)
79,772

4,994

252

2,272

10

Fiscal year ended
March 31, 2018
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
Purchase of shares of subsidiaries resulting inchange in scope of consolidation (*2)
Payments for sales of shares of subsidiaries
resulting in change in scope of consolidation(*3)
Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation(*3)
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for acquisition of business
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
Cash dividends paid to non-controllingshareholders
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
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (*1)(Millions of yen)

Fiscal year ended
March 31, 2019

(Millions of yen)(Thousands of U.S. dollars)(10,126)
13,902(324)
324(3,345)
8,861(4,207)2,070(642)(12,226)(16,577)
14,225(11)
129(1,002)
2,603(6,228)566(924)(2,869)(149,357)
128,172(104)
1,167(9,033)23,459(56,118)
5,104(8,332)(25,853)

(152)

-

-

(93)

-

-

-

714

6,438

(171)
3
(151)
5
4,322

(454)
0
(935)
2
2,719

(4,097)0(8,429)21
24,503

1,177

3,028

27,288

10,597

13,481

121,466

3,916(5,358)(7)(3,329)521(1,868)(2,263)(3,335)

4,699(16,835)(20,391)(30,050)(3,613)(3,916)(35,290)(1,215)

930

8,380

15,061

8,586

77,366

-

(0)

(0)

50,974
66,03566,03574,622594,967
672,333

(11)

(0)

(1)

11

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: 55(2) The changes in the scope of consolidation for the fiscal year ended March 31, 2019 are as follows:(Addition) ・One company included in the scope of consolidation due to new establishment
USHIO ASIA PACIFIC VIETNAM CO., LTD.
・One company excluded from the scope of consolidation due to merger with another(Exclusion)consolidated subsidiary
MAXRAY INC.
・One company excluded from the scope of consolidation due to sale of shares
Allure Global Solutions, Inc.
・One company excluded from the scope of consolidation due to termination ofparent-subsidiary relationship.
American Green Technology, 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 USHIO INC. (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, theCompany uses the financial statements of these companies as of their fiscal year end.
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
December
USHIO (SUZHOU) CO., LTD.
*1
31
December
USHIO SHANGHAI, INC.
*1
31
December
USHIO (GUANGZHOU) CO., LTD.
*1
31
December
USHIO (SHAOGUAN) CO., LTD.
*1
31
USHIO MEDICAL TECHNOLOGY
December*1(SUZHOU) CO., LTD.
31
CHRISTIE DIGITAL SYSTEMS
December*1(SHANGHAI) Co., LTD.
31
December
USHIO SHENZHEN, INC.
*1
31
CHRISTIE DIGITAL SYSTEMS
December*1(SHENZHEN) CO., LTD.
31
DecemberUnited Designers of Architectural Lighting, Inc.
*1
31
CHRISTIE TRADE DEVELOPMENT
December*1(SHANGHAI) LTD.
31
*1 Provisional financial statements as of the consolidated fiscal year-end date are used for thesecompanies.

12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-average method)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, the average
market price for one month prior to the fiscal year end). (Valuation difference is stated as acomponent 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 determinedby the gross average method (balance sheet amounts are determined based on the method of
writing down book value in accordance 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) 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 60 years
Machinery, equipment and
3 to 12 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 with five years.

13(c) Leased assets
Leased assets related to finance lease transactions that transfer ownership
Leased assets related to finance lease transactions that transfer ownership are depreciated by thesame 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 depreciatedby the straight-line method over the lease period that is deemed as the useful life, assuming noresidual 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 bymaking an estimation using the historical rate of credit loss in the case of general receivables,or based on individual consideration of collectibility in the case of 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 andcorporate auditors resigned at the balance sheet date based on their internal 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 tobe paid, which is determined using points allocated to each director as prescribed in 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 estimated amount 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 a provision
for loss on orders received equal to the amount of losses it anticipates after the year-end. Such aprovision is recognized when losses on orders received are probable and reasonably estimated at theend of the current fiscal year.
(4) Accounting treatment of retirement benefits(a) Method for attribution of estimated retirement benefits to periods
In the calculation of retirement benefit obligations, the expected retirement benefits are attributed
to the period up to the end of the current fiscal year based on the benefit formula method.
(b) 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 or losses
are recognized 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 gains or losses occur.

14

(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 the transaction
qualifies for such treatment.
(b) Hedging instruments and hedged items
Hedging instruments: Forward foreign exchange contracts and interest rate swaps
Hedged items:
Monetary receivables and payables denominated in foreign currencies,
forecasted transactions denominated in foreign currencies, securities
denominated in foreign currencies and foreign loans payable(c) Hedging policy
The Company and its consolidated subsidiaries (collectively, the “Group”) hedge the risks offluctuation 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 or cash
flows of the hedged items and those of the hedging instruments during the period from the inceptionof the hedge to the time of determining the effectiveness, and based on the respective amount ofchanges.
(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 investments thatare readily convertible to known amounts of cash and subject to insignificant risk of change in value anddue 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 theyear ended March 31, 2019 have been presented in U.S. dollars by translating all yen amounts at¥110.99 = U.S. $1.00, the exchange rate prevailing on March 31, 2019. This translation should not be
construed as a representation that the yen amounts have been, could have been, or could in the future beconverted into U.S. dollars at the above or any other rate.

15

(Accounting Standards Issued but Not yet Applied)・Revenue from Contracts with Customers (Accounting Standard Update (“ASU”) No. 2014-09 (Topic
606), issued on May 28, 2014)(1) Overview
ASU No. 2014-09 (Topic 606) provides a comprehensive standard for revenue recognition which
replaces the existing revenue recognition guidance under U.S. generally accepted accounting
principles (GAAP) issued by the Financial Accounting Standard Board (FASB). The core principle ofthis standard is that an entity should recognize revenue when the entity transfers promised goods orservices to customers at an amount that reflects the consideration to which the entity expects to beentitled in exchange for those goods or services. The adoption of this standard will have an impact on
certain overseas consolidated subsidiaries that adopt U.S. GAAP.
(2) Date of application
ASU No. 2014-09 (Topic 606) will be applied for fiscal years beginning on or after April 1, 2019.
(3) Impact of application
The impact of this standard on the consolidated financial statements is immaterial.
・Leases (ASU No. 2016-02 (Topic 842), issued on February 25, 2016)(1) Overview
This accounting standard and relevant regulations in principle require that recognition of assets andliabilities 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 years beginning on or after April 1,
2020.
(3) Impact of application
The impact of this standard on the consolidated financial statements is currently being evaluated.
・Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ)
Statement No. 29, issued on March 30, 2018)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30,
issued on March 30, 2018)(1) Overview
International Accounting Standards Board (IASB) and FASB jointly developed a comprehensive
accounting standard for revenue recognition and issued “Revenue from Contracts with Customers”(IFRS No. 15, issued by IASB and Topic 606 issued by FASB) in May 2014. Considering the situationthat IFRS No. 15 has become applicable from the fiscal year beginning on and after January 1, 2018
and Topic 606 from the fiscal year beginning after December 15, 2017, ASBJ developed acomprehensive accounting standard for revenue recognition and issued it together with
implementation guidance.
ASBJ’s basic policy in developing the accounting standard for revenue recognition was to establish
accounting standards as a starting point to adopt basic principles of IFRS No. 15 from the viewpointof comparability of financial statements, which is one of the benefits of maintaining consistency withIFRS No. 15, and to add alternative treatments to the extent not to impair comparability in cases whereprevious 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 applying the “Accounting Standard for Revenue Recognition,” etc. on the
consolidated financial statements is currently being evaluated.

16

(Changes in Presentation)(Changes in line with the application of the “Partial Amendments to Accounting Standard for Tax EffectAccounting”)
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16, 2018; hereinafter the “Partial Amendments to Tax EffectAccounting Standard”) effective from the beginning of the fiscal year ended March 31, 2019.
Accordingly, deferred tax assets were presented under “Investments and other assets” and deferred tax
liabilities were presented under “Non-current liabilities.” The Company has also made changes to thenotes to Tax Effect Accounting.
As a result, in the consolidated balance sheet for the previous fiscal year, deferred tax assets under“Current assets” decreased by ¥3,289 million and deferred tax assets under “Investments and otherassets” increased by ¥1,328 million. Deferred tax liabilities under “Current liabilities” decreased by ¥618
million and deferred tax liabilities under “Non-current liabilities” decreased by ¥1,342 million.
In addition, deferred tax assets were offset against deferred tax liabilities for the same tax jurisdiction,
and as a result, total assets decreased by ¥1,961 million compared to the previous methods of presentation.
Furthermore, in the notes to Tax Effect Accounting, contents described in the “Accounting Standard forTax Effect Accounting” explanatory note (Note 8) (excluding the total amount of valuation allowance) and
explanatory note (Note 9) set out in paragraphs 3 through 5 of the Partial Amendments to Tax EffectAccounting Standard have been added; provided, however, comparative information for the previous fiscal
year was not described in accordance with the transitional treatment as presented in paragraph 7 of thePartial Amendments to Tax Effect Accounting Standard.
(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, etc.”), in order to raise the incentive tocontribute to improving the Company’s medium- to long-term business performance and to increasing
enterprise value.
(1) Overview
The Company entrusts money equivalent to remuneration of Directors, etc. The Company’s shares
will be acquired using the entrusted money and the Company’s shares and the cash equivalent of theconversion value of the Company’s shares will be delivered and paid to Directors, etc., based on his
or her position and the degree of accomplishment of business performance. Directors, etc., areeligible to receive the Company’s shares and the cash equivalent of the conversion value of theCompany’s shares, in principle after retiring from the position of Director, etc. In order to maintainneutrality toward management of the Company, the voting rights of the Company’s shares in thetrust 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 shareholders’ equity 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 ¥484 million and 292,700 shares as ofMarch 31, 2018 and ¥573 million ($5,168 thousand) and 352,300 shares as of March 31, 2019,respectively.

17

(Consolidated Balance Sheet)*1 Investments in associates are as follows:

As of March 31, 2018

Investment securities (stocks)(Millions of yen)30

As of March 31, 2019

(Millions of yen)53

*2 Assets pledged as collateral
The assets pledged as collateral for loans payable are as follows:
As of March 31, 2018

Cash and deposits
Notes and accounts receivable-trade
Total(Millions of yen)
14
127
141

(Thousands of U.S. dollars)
485

As of March 31, 2019

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

The related loans payable for which the above assets are pledged as collateral are as follows:
As of March 31, 2018

Short-term loans payable
Total(Millions of yen)
400
400

As of March 31, 2019

(Millions of yen)-(Thousands of U.S. dollars)-*3 Notes maturing at the fiscal year end
Notes maturing at the fiscal year end are accounted for on the clearing dates. Since the last day of the
fiscal year ended March 31, 2019 was a holiday of financial institutions, the following notes maturing at
the fiscal year end are included in the balances at the fiscal year end.
As of March 31, 2018

Notes receivable-trade
Notes payable-trade(Millions of yen)116713

As of March 31, 2019

(Millions of yen)125
651

(Thousands of U.S. dollars)
1,130
5,868

18

(Consolidated Statement of Income)*1 The ending inventory balance is the amount after write-down of book value due to decline in profitability,
and the loss on valuation of inventories included in cost of sales is as follows:
Fiscal year ended
March 31, 2018
(Millions of yen)

(Millions of yen)

984

Fiscal year ended
March 31, 2019
917

(Thousands of U.S. dollars)
8,266*2 The main components of selling, general and administrative expenses are as follows:
Fiscal year ended
March 31, 2018
(Millions of yen)
13,951

Salaries and wages

Provision for bonuses

716

Retirement benefit expenses

Fiscal year ended
March 31, 2019

(Millions of yen)
13,567878

642

Research and development expenses

Provision of allowance for doubtful accounts

4,503

66

77

Provision for directors' stock payment

7,918

499

69

Provision for directors' retirement benefits(Thousands of U.S. dollars)
122,244595

41

10,675374

10,110399

91,093231

2,087*3 Research and development expenses included in general and administrative expenses are as follows:
Fiscal year ended
March 31, 2018
(Millions of yen)

Fiscal year ended
March 31, 2019
(Millions of yen)(Thousands of U.S. dollars)
10,11091,093

10,675*4 The breakdown of gain on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2018

Buildings and structures
Machinery, equipment andvehicles
Land
Other

Total

Fiscal year ended
March 31, 2019

(Millions of yen)
196

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

138

-

-

14

46

395

24

60

85

224

542

767

19

*5 The breakdown of loss on retirement of non-current assets is as follows:
Fiscal year ended
March 31, 2018

Buildings and structures
Machinery, equipment andvehiclesConstruction in progress
Other (tools, furniture andfixtures, etc.)
Total

Fiscal year ended
March 31, 2019

(Millions of yen)
1

(Millions of yen)
27

(Thousands of
U.S. dollars)
251

175

-

-

11

7

178

45

367

80

64

413

729

*6 The breakdown of loss on sales of non-current assets is as follows:
Fiscal year ended
March 31, 2018

Buildings and structures
Machinery, equipment andvehicles
Other

Total

Fiscal year ended
March 31, 2019

(Millions of yen)-

(Millions of yen)
8

(Thousands of
U.S. dollars)
78

0

-

-

7

0

8

*7 Impairment loss
Fiscal year ended March 31, 2018
Classification
Locationby useBusiness
Indiana, U.S.A.
assetsBusiness
Tennessee, U.S.A.
assets9Type of assets
Goodwill, Other (Intangible assets)

7

86(Millions of
yen)

1,007

Other (Intangible assets)

416

Buildings and structures, Machinery,equipment and vehicles, Construction inprogress, Other (Property, plant andequipment, and Intangible assets)

141

Buildings and structures

135

Kawasaki, Kanagawa
and others

Business
assetsKanzaki, Hyogo

Assetsplannedto be soldOsaka, Osaka

Business
assets

Machinery, equipment and vehicles,
Construction in progress, Other (Property,
plant and equipment, and Intangible assets)

79

Amagasaki, Hyogo

Business
assets

Machinery, equipment and vehicles, Other(Property, plant and equipment)

49

Buildings and structures, Land, Other46

Osaka, Osaka

Assetsplannedto be sold20

In principle, the Group’s business assets are grouped according to division or to whom assets are lent,
assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets and assets 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 realizable values due to a decreasein 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 realizable values due to adecision to sell the assets, and the write-downs are recorded as impairment loss in extraordinary losses. The
net realizable values are based on the expected sales prices.
* Breakdown of impairment loss by location is as follows:・Impairment loss of ¥1,007 million recognized for Indiana, U.S.A. includes ¥245 million for goodwill
and ¥761 million for other (intangible assets).
・Impairment loss of ¥416 million recognized for Tennessee, U.S.A. is for other (intangible assets).
・Impairment loss of ¥141 million recognized for Kawasaki, Kanagawa and others includes ¥6 million
for buildings and structures, ¥7 million for machinery, equipment and vehicles, ¥48 million for
construction in progress, ¥65 million for other (property, plant and equipment) and ¥13 million for other(intangible assets).
・Impairment loss of ¥135 million recognized for Kanzaki, Hyogo is for buildings and structures.
・Impairment loss of ¥79 million recognized for Osaka, Osaka includes ¥10 million for machinery,equipment and vehicles, ¥3 million for construction in progress, ¥33 million for other (property, plantand equipment) and ¥31 million for other (intangible assets).
・Impairment loss of ¥49 million recognized for Amagasaki, Hyogo includes ¥49 million for machinery,equipment and vehicles and ¥0 million for other (property, plant and equipment).
・Impairment loss of ¥46 million recognized for Osaka, Osaka includes ¥23 million for buildings andstructures, ¥13 million for land and ¥8 million for other.

21

Fiscal year ended March 31, 2019

Location

Georgia, U.S.A.
California, U.S.A.
Chiyoda-ku,
Tokyo
Kawasaki,Kanagawa
Takasago, Hyogo
and others
KanzakiGun,Hyogo
Chuo-ku, Tokyo
and Others
Gotemba,
Shizuoka

Osaka, Osaka

Classification by use

Type of assets

Assets planned tobe sold
Assets planned tobe sold

Goodwill, Other (Intangible
assets)
Machinery, equipment andvehicles(Millions of yen)

578

(Thousands of
U.S. dollars)
5,209

310

2,798

Business assets

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

79

716

Business assets

Machinery, equipment andvehicles, Construction inprogress, Other (Property,
plant and equipment, andIntangible assets)

46

417

Machinery, equipment andvehicles

10

92

5

45

Business assets
Business assets

Buildings and structures

Concerning assets planned to be sold of Georgia, U.S.A. and California, U.S.A., the book values are
written down to the net realizable value due to the decision to sell the assets accompanying the businessstructure improvement of CHRISTIE Group, and the write-downs are recognized as a business structure
improvement expense under extraordinary losses.
In principle, the Group’s business assets are grouped according to division or to whom assets are lent,
assets of consolidated subsidiaries are grouped by company, and the Group’s idle assets and assets 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 realizable values due to a decreasein 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 realizable values due to adecision to sell the assets, and the write-downs are recorded as impairment loss in extraordinary losses. The
net realizable values are based on the expected sales prices.
* Breakdown of impairment loss by location is as follows:・Impairment loss of ¥578 million ($5,209 thousand) recognized for Georgia, U.S.A. includes ¥461
million ($4,162 thousand) for goodwill and ¥116 million ($1,047 thousand) for other (intangible assets).
・Impairment loss of ¥310 million ($2,798 thousand) recognized for California, U.S.A. includes ¥310
million ($2,798 thousand) for machinery, equipment and vehicles.
・Impairment loss of ¥79 million ($716 thousand) recognized for Chiyoda, Tokyo, etc. includes ¥52
million ($471 thousand) for other (property, plant and equipment), ¥18 million ($163 thousand) for
buildings and structures, and ¥9 million ($81 thousand) for machinery, equipment and vehicles.
・Impairment loss of ¥46 million ($417 thousand) recognized for Kanzaki, Hyogo, etc. includes ¥26
million ($241 thousand) for machinery, equipment and vehicles, ¥11 million ($104 thousand) for
construction in progress, ¥5 million ($48 thousand) for other (property, plant and equipment), ¥1 million($11 thousand) for other (intangible assets), and ¥1 million ($11 thousand) for buildings and structures.
・Impairment loss of ¥10 million ($92 thousand) recognized for Gotemba, Shizuoka includes ¥10 million($92 thousand) for buildings and structures.
・Impairment loss of ¥5 million ($45 thousand) recognized for Osaka, Osaka includes ¥5 million ($45
thousand) for machinery, equipment and vehicles.

22

*8 Business structure improvement expenses
Fiscal year ended March 31, 2018
Not applicable.
Fiscal year ended March 31, 2019
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 ¥1,101 million ($9,923 thousand) of expenses for
personnel downsizing, etc. due to the restructuring of CHRISTIE Group, and ¥888 million ($8,008
thousand) of impairment loss on goodwill and other non-current assets, etc. accompanying the disposalof unprofitable operations.

23

(Consolidated Statement of Comprehensive Income)
Reclassification adjustments and income tax effect allocated to each component of other comprehensive
income are as follows:
Fiscal year ended
March 31, 2018

Valuation difference on available-for-salesecurities:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effect
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments
Amount before income tax effect
Income tax effectRemeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method:Amount arising during the year
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income

Fiscal year ended
March 31, 2019

(Millions of yen)

(Millions of yen)(Thousands of U.S. dollars)(2,738)(6,039)(8,777)
2,617(1,783)(12,213)(13,996)
4,195(16,068)(110,040)(126,109)
37,801

0
4
4
6
11

5
(7)
(2)
0
(1)

46
(71)
(24)
7
(17)

(2,962)774(2,187)(2,187)

1,623
142
1,765
1,765

14,626
1,280
15,906
15,906

172
4,236
4,409
(1,351)
3,057

(515)
501
(14)
(11)
(25)

(4,646)
4,517
(129)
(99)
(228)

(0)

1

11

(5,279)(8,061)(6,160)(0)(9,801)

1(88,307)11(72,636)24

(Consolidated Statement of Changes in Net Assets)
Fiscal year ended March 31, 2018
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as ofApril 1, 2017

Shares issued:

Common shares

139,628,721

Increase

Number ofshares as ofMarch 31,2018

Decrease--

139,628,721

Total

139,628,721--

139,628,721

Common shares (Note)

11,867,972

4,721

6,400

11,866,293

Treasury shares

Total

11,867,972

4,721

6,400

11,866,293(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration plan for
directors (299,100 shares and 292,700 shares at the beginning and end of the current fiscal year,
respectively).
2. The increase of 4,721 shares of treasury shares is due to purchase of shares of less than standard unit.
3. The decrease of 6,400 shares of treasury shares is due to issuance from trust to eligible persons
according to stock remuneration plan for directors.
2. Dividends(1) Dividends paid
Resolution
Annual general
meeting of theshareholders on
June 29, 2017

Type ofsharesTotal dividends(Millions ofyen)

Dividends
per share(Yen)

Cut-off date

Effective dateCommonshares3,329

26March 31,2017

June 30,
2017(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 29, 2017
include ¥7 million of dividends on the Company’s shares held by the trust for the stock remuneration planfor directors.
(2) Dividends with the cut-off date in the fiscal year ended March 31, 2018 and the effective date in thefiscal year ended March 31, 2019
DividenTotal dividends
Type of
Source ofds perEffective
Resolution
Cut-off date(Millions ofsharesdividends
share
date
yen)
(Yen)
Annual general
meeting of theCommonRetained
March 31,
June 29,
3,329
26
shareholders on
sharesearnings
2018
2018
June 28, 2018

(Note)Total dividends based on resolution at the annual general meeting of the shareholders on June 28, 2018
include ¥7 million of dividends on the Company’s shares held by the trust for the stock remuneration planfor directors.

25

Fiscal year ended March 31, 2019
1. Type and total number of shares issued, and type and number of treasury shares
Number ofshares as of
Increase
Decrease
April 1, 2018

Shares issued:

Common shares

Total

139,628,721-

6,000,000

133,628,721

11,866,293

1,780,494

6,005,700

7,641,087

139,628,721

Treasury shares

Common shares (Note)
Total

Number ofshares as ofMarch 31, 201911,866,293-

1,780,494

6,000,000

6,005,700

133,628,721

7,641,087(Notes) 1. Treasury shares include the Company’s shares held by the trust for the stock remuneration plan for
directors (292,700 shares and 352,300 shares at the beginning and end of the current fiscal year,
respectively).
2. The increase of 1,780,494 shares of treasury shares is made up by an increase of 1,712,000 sharesthrough market purchase, an increase of 65,300 shares held by the trust for the stock remuneration planfor directors, and an increase of 3,194 shares by purchasing shares of less than standard unit.
3. The decrease of 6,005,700 shares of treasury shares is made up by a decrease of 6,000,000 shares
resulting from the retirement of treasury shares and a decrease of 5,700 shares due to issuance fromtrust to eligible person according to stock remuneration for directors.
2. Dividends(1) Dividends paid
Total
Dividends
Total
Dividends perType ofdividends
per share
Cut-off
Effective
dividends
Resolution
share
shares(Millions (Thousands of
(U.S.
date
date
(Yen)
of yen)dollars)
U.S. dollars)
Annual general
meeting of theshareholders on
June 28, 2018

Commonshares3,329

29,99726

0.23

March 31,2018

June 29,2018(Note) Total dividends based on resolution at the annual general meeting of the shareholders on June 28, 2018
include ¥7 million ($68 thousand) 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, 2019 and the effective date in thefiscal year ending March 31, 2020
Total
Total
Dividends
dividends
Source Dividends
Type of dividends
per share
Cut-off
Effective
Resolution(Thousandsof
per shareshares(Millions
(U.S.
date
date
of U.S. dividends(Yen)of yen)dollars)
dollars)

Annual general
meeting of theCommonshareholders
shareson June 27,
2019

6,316

56,915Retainedearnings50

0.45

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 ($158 thousand) of dividends on the Company’s shares held by the trust for the stock
remuneration plan for directors.

26

(Consolidated Statement of Cash Flows)*1. Reconciliation between cash and cash equivalents at end of period and the amount on the consolidatedbalance sheet
Fiscal year ended
March 31, 2018

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)
74,725(8,689)-66,035

Fiscal year ended
March 31, 2019

(Millions of yen)
85,655(11,202)(Thousands of U.S. dollars)
771,743(100,930)

168

1,520

74,622

672,333*2. Major components of assets and liabilities of companies included in the scope of consolidation throughshare acquisition
Fiscal year ended March 31, 2018
Information is omitted because of immateriality.
Fiscal year ended March 31, 2019
Not applicable.
*3. Major components of assets and liabilities of companies excluded from the scope of consolidation due tosale of sharesFiscal year ended March 31, 2018
Information is omitted because of immateriality.
Fiscal year ended March 31, 2019
Information is omitted because of immateriality.
(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) and inspection
instruments (other) of the Company’s consolidated subsidiaries.
・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 deemed as theuseful life, assuming no residual value.
2. Operating lease transactions
Future minimum lease payments under non-cancelable operating leases
As of March 31, 2018

Due within one year
Due after one year
Total

As of March 31, 2019

(Millions of yen)
1,372(Millions of yen)
1,522

(Thousands of U.S. dollars)
13,715

4,083

3,282

29,573

2,710

1,760

15,85827

(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 in highly
safe financial assets, according to the Group’s cash management plan. Method of fund raising isdetermined based upon the use of funds and financing environment. The Group utilizes derivativetransactions only to avoid foreign exchange rate fluctuation risk and interest rate fluctuation risk, anddoes 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 foreign exchange risk;
however, such risk is hedged by using forward foreign exchange contracts.
Securities and investment securities consist mainly of equity securities issued by companies withwhom 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 is also 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 three years after the end of the current fiscal year. While floating-rate loans payable are exposed
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 and currency swaps 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 ofhedging 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 ofConsolidated Financial Statements, 4. Accounting policies, (5) Significant hedge accounting” prescribedabove.
(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 thecollection of receivables due to deteriorated financial conditions by managing due dates and balancesfor 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 with debt securities isimmaterial since the Group invests in debt securities with high credit ratings.
Derivative transactions are entered into only with highly rated financial institutions in order tomitigate counterparty risk.
As of the fiscal year end, the maximum credit risk amount is presented as the consolidated balance
sheet amounts of financial assets that are exposed to credit risk.
2) Management of market risk (fluctuation risk of foreign currency exchange and interest rates, etc.)
The Company utilizes forward foreign exchange contracts and currency swaps for foreign exchange
risk identified by currency and by month in relation to operating receivables and payables denominatedin foreign currencies, loans payable denominated in foreign currencies and securities denominated inforeign 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 accordance with28

the Company’s internal rules for market risk management.
For securities and investment securities, market prices and the financial position of the issuers are
periodically monitored and reported to directors in charge in accordance with the internal rules formarket risk management. In addition, the holding status of shares issued by companies with business
relationships is continuously reviewed in consideration of the relationships with those companies.
Derivative transactions are reported to directors in charge on a daily basis as well as to the Board 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 derivativetransactions 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 from eachdepartment as well as by maintaining certain liquidity.
(4) Supplementary explanation concerning fair values of financial instruments, etc.
The notional amounts of derivative transactions in “2. Fair value of financial instruments” do not, inthemselves, indicate the market risk associated with the derivative transactions.

29

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, 2018

(1) Cash and deposits(2) Notes and accounts receivable – trade
Allowance for doubtful accounts (*1)

Consolidated balance
sheet amount(Millions of yen)
74,72542,255(1,586)
40,669Fair value(Millions of yen)

Difference(Millions of yen)

40,669-74,725-(3) Securities and investment securities
Trading securities
2,329
2,329
Available-for-sale securities
64,01564,015(4) Investments in money held in trust
2,322
2,322
Assets, total
184,061
184,061(1) Notes and accounts payable – trade21,414
21,414(2) Short-term loans payable
6,950
6,950
(3) Current portion of long-term loans
1,884
1,891
6
payable(4) Long-term loans payable
17,98917,837(151)
Liabilities, total
48,23848,093(144)
Derivative transactions (*2)
89
89
for which hedge accounting is not applied
for which hedge accounting is applied
(22)
(22)
(*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 figuresin brackets indicate net liabilities.

30

As of March 31, 2019(1) Cash and deposits(2) Notes and accounts receivable-trade
Allowance for doubtful accounts (*1)(3) Securities and investment securities
Trading securities
Available-for-sale securities(4) Investments in money held in trust
Assets, total(1) Notes and accounts payable-trade(2) Short-term loans payable(3) Current portion of long-term loans payable(4) Long-term loans payable
Liabilities, total
Derivative transactions (*2)
for which hedge accounting is not applied
for which hedge accounting is applied
As of March 31, 2019(1) Cash and deposits(2) Notes and accounts receivable-trade
Allowance for doubtful accounts (*1)

Consolidated balance
sheet amount(Millions of yen)
85,65539,456(1,607)
37,848Fair value(Millions of yen)

Difference(Millions of yen)

37,848-2,079
51,1392,314
179,038
21,665
10,008
8,520
10,41050,604

2,079
51,1392,314
179,038
21,665
10,008
8,582
10,40750,663

61
(3)
58

275
(25)

275
(25)

-

Fair value(Thousands of U.S. dollars)

Difference(Thousands of U.S. dollars)

Consolidated balance
sheet amount(Thousands of U.S. dollars)
771,743
355,492(14,484)
341,00785,655

771,743--

341,007(3) Securities and investment securities
Trading securities
18,734
18,734
Available-for-sale securities
460,761
460,761(4) Investments in money held in trust
20,856
20,856
Assets, total
1,613,103
1,613,103(1) Notes and accounts payable-trade195,198
195,198(2) Short-term loans payable
90,177
90,177(3) Current portion of long-term loans payable
76,76577,323558(4) Long-term loans payable
93,796
93,766(29)
Liabilities, total
455,938
456,467
528
Derivative transactions (*2)
2,478
2,478
for which hedge accounting is not applied
for which hedge accounting is applied
(226)
(226)
(*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 inbrackets indicate net liabilities.

31

(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 in a shortperiod 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, and that ofdebt securities is obtained from financial institutions. Please refer to Note “Securities andInvestment 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 in a shortperiod 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 andinterest 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 by type oftransaction.
2. Financial instruments whose fair values cannot be reliably determined
Consolidated balance
Consolidated balance sheet amountClassification
sheet amount(As of March 31, 2019)(As of March 31, 2018)(Millions of yen)
(Millions of yen)(Thousands of U.S. dollars)

Unlisted shares and investments inbusiness partnerships with limited
liability

2,326

2,191

19,748The above financial instruments are not included in “(3) Securities and investment securities” because theirmarket 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, 2018
Due after one
Due after fiveDue within one
year and up to
years and up to
Due after ten years
year
five years
ten years(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
Cash and deposits
74,725
Notes and accounts
41,881374
receivable - trade
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds(2) Corporate bonds
1,650
2,843
212
9,316
Total
118,256
3,218
212
9,316

32

As of March 31, 201985,655Due after one
year and up to
five years(Millions of yen)-

Due after five
years and up toten years(Millions of yen)
-

-

-

-

Due within one year
(Millions of yen)
Cash and deposits
Notes and accounts
receivable-trade
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds(2) Corporate bonds
Total

39,322-

744
125,723

7,145
7,279

983
983

Due within one year
(Thousands of
U.S. dollars)

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

354,291-

1,200

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

-

-

-

As of March 31, 2019

Cash and deposits
Notes and accounts
receivable-trade
Securities and investment
securities
Available-for-salesecurities withmaturities(1) National and local
government bonds(2) Corporate bonds
Total

133

771,743

6,708
1,132,744

64,38265,582

-

8,863
8,863

Due after ten years(Millions of yen)
-

-

9,733
9,733

Due after ten years(Thousands of
U.S. dollars)--

87,696
87,69633

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, 2018
Due within one year
(Millions of yen)
Short-term loans payable
Long-term loans payable
Total

6,950
1,884
8,835

As of March 31, 2019
Due within one year
(Millions of yen)
Short-term loans payable
Long-term loans payable
Total

10,008
8,520
18,529As of March 31, 2019
Due within one year
(Thousands of U.S. dollars)
Short-term loans payable
Long-term loans payable
Total

90,17776,765
166,942Due after one year
and up to two years(Millions of yen)

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

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

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

7,984
7,984

6,137
6,137

5,843
5,843

3,828
3,828

4,161
4,161

20
20

-

424
424

Due after one year and up to Due after two years and up to Due after three years and up Due after four years and up
two years
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)

55,29955,29934,49634,496

180
180

3,820
3,820

34

(Securities and Investment Securities)
1. Trading securities

As of March 31, 2018

Valuation difference included in profit orloss
2. Available-for-sale securities
As of March 31, 2018
Type(1) Shares(2) Bonds:
1) National
and local
Securities whose
governmcarrying value
ent bonds
exceeds their
2) Corporate
acquisition costs
bonds(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
Securities whose
and local
carrying value
governmdoes not exceed
ent bonds
their acquisition
2) Corporate
costs
bonds
(3) Other
Subtotal
Total

As of March 31, 2019

(Millions of yen)

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

Carrying value(Millions of yen)
43,461

Acquisition cost
(Millions of yen)
7,619

Difference(Millions of yen)
35,841

-

-

-

479

462

17

290

(45)

(407)

985
44,927
1,990

951
9,033
2,049

34
35,893
(59)

-

-

-

17,097

17,971(874)

19,08764,01520,021
29,054(933)
34,960(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on the
consolidated balance sheet: ¥2,326 million) are not included in the above table of “Available-for-salesecurities” as their market prices are not available and their fair values cannot be reliably determined.

35

As of March 31, 2019

Type(1) Shares(2) Bonds:
1) National
and local
Securities whose
government
carrying value
bonds
exceeds theiracquisition costs2) Corporatebonds(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
Securities whose
and local
carrying value
government
does not exceedbonds
their acquisition
2) Corporate
costs
bonds
(3) Other
Subtotal
Total
As of March 31, 2019
Type(1) Shares(2) Bonds:
1) National
and local
Securities whose
government
carrying value
bonds
exceeds theiracquisition costs2) Corporatebonds(3) Other
Subtotal(1) Shares(2) Bonds:
1) National
Securities whose
and local
carrying value
government
does not exceedbonds
their acquisition
2) Corporate
costs
bonds
(3) Other
Subtotal
Total

Carrying value(Millions of yen)
29,341

Acquisition cost
(Millions of yen)
7,458

Difference(Millions of yen)
21,883

-

-

-

1,666

1,622

44

1,112
32,1202,485

1,042
10,1222,717

70
21,997
(232)

-

-

-

16,365

17,151

19,86929,992(786)(1,019)20,978Carrying value(Thousands of
U.S. dollars)
264,364

Acquisition cost(Thousands of
U.S. dollars)
67,198Difference(Thousands of
U.S. dollars)
197,165---

15,014

14,616

9,390
91,20624,487397

630
198,193(2,094)---147,448

154,535(7,087)

18,85050,971

10,021
289,400
22,392

169,840459,241

179,022270,228(9,181)
189,012(Note) Unlisted shares and investments in business partnerships with limited liability (carrying value on the consolidatedbalance sheet: ¥2,191 million ($19,748 thousand)) are not included in the above table of “Available-for-salesecurities” as their market prices are not available and their fair values cannot be reliably determined.

36

3. Available-for-sale securities soldFiscal year ended March 31, 2018
Amount sold
Type
(Millions of yen)
(1) Shares
6,962(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds
1,814(3) Other
640
Total
9,417

Aggregate gains on sales(Millions of yen)
5,792

Aggregate losses on sales(Millions of yen)
61

-

-

9
189
5,991

5
66

Amount sold(Millions of yen)
12,957Aggregate gains on sales(Millions of yen)
12,201Aggregate losses on sales(Millions of yen)
-

-

-

-

169
13,126

12,20160
60

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)

-

-

-

1,527
118,268

109,931

542
542

Fiscal year ended March 31, 2019
Type(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds(3) Other
Total

Fiscal year ended March 31, 2019
Type(1) Shares(2) Bonds:
1) National andlocal government
bonds2) Corporate bonds(3) Other
Total

116,740

109,931-

4. Impairment loss recognized on securities
Fiscal year ended March 31, 2018
Impairment loss amounted to ¥181 million is recognized in shares classified as available-for-salesecurities.
Fiscal year ended March 31, 2019
Not applicable.
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 byapproximately 30% to 50% of the acquisition cost at the amount deemed necessary considering therecoverability of the security.

37

(Derivative Transactions)
1. Derivative transactions for which hedge accounting is not applied
Currency-related transactions:
As of March 31, 2018
Maturing
Notional amounts
Classification
after one year
Type of transaction(Millions of yen)
(Millions of yen)
Forward foreignexchange contracts:
Sell:
EUR
293
147
Buy:
Bilateraltransactions
USD
719
JPY
665
Currency swaps:
Receive JPY/ Pay
3,070
3,070
USD
Total
4,749
3,218

Estimated
fair value(Millions of yen)

Unrealized
gain (loss)(Millions of yen)

(28)

(28)

(22)
8

(22)
8

131

131

89

(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2019

Classification

Bilateraltransactions

Type of transaction
Forward foreignexchange contracts:
Sell:
USD
EUR
Buy:
USD
JPY
Currency swaps:
Receive JPY/ Pay
USD
Total

Notional amounts(Millions of yen)

Maturing
after one year
(Millions of yen)

110
154

-

(0)
3

(0)
3

88
825

-

(0)
6

(0)
6

3,070

-

277

277

4,249

-

Estimated
fair value(Millions of yen)

89

287

Unrealized
gain (loss)(Millions of yen)

287

38

As of March 31, 2019
Classification

Bilateraltransactions

Type of transaction
Forward foreignexchange contracts:
Sell:
USD
EUR
Buy:
USD
JPY
Currency swaps:
Receive JPY/ Pay
USD
Total

Notional
amounts(Thousands of
U.S. dollars)

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

995
1,392

-

(2)
30

(2)
30

797
7,434

-

(0)
62

(0)
62

27,668

-

2,497

2,497

38,288-Estimated
fair value(Thousands of
U.S. dollars)

2,587

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

2,587Interest-rate-related transactions:
As of March 31, 2018
Not applicable.
As of March 31, 2019
ClassificationBilateraltransactionsType of transaction
Interest rate swaps:

Receive floating/
Pay fixed

As of March 31, 2019
ClassificationBilateraltransactionsType of transaction
Interest rate swaps:

Receive floating/
Pay fixed

Notional
amounts(Millions ofyen)

Maturing
after one year
(Millions ofyen)

Estimated
fair value(Millions ofyen)

Unrealized
gain (loss)(Millions of
yen)

504

484

(12)

(12)

Notional
amounts(Thousands of
U.S. dollars)

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

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

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

4,540

4,360

(108)

(108)

39

2. Derivative transactions for which hedge accounting is applied
Currency-related transactions:
As of March 31, 2018
Not applicable.
As of March 31, 2019
Hedge accounting
Designatedhedge
accounting of
forward foreignexchange
contracts, etc.

Type oftransaction

Hedged item

Notional amounts(Millions of yen)Accounts
receivable– trade5

Hedged item

Notional amounts(Thousands of
U.S. dollars)

Accounts
receivable– trade53

Hedged item

Notional amounts(Millions of yen)

Forward foreignexchange
contracts:
Sell:

USD

As of March 31, 2019
Hedge accounting
Designatedhedge
accounting of
forward foreignexchange
contracts, etc.

Type oftransaction
Forward foreignexchange
contracts:
Sell:

USD

Interest-rate-related transactions:
As of March 31, 2018
Hedge accounting

Type oftransaction

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)－0

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

Estimated fairvalue
(Thousands of
U.S. dollars)－0

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)Interest rate
swaps:
Deferred hedge
Receive
Long-term
accounting
floating/ Pay
loans
3,450
3,450
fixed
payable(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.
As of March 31, 2019
Hedge accounting
Deferred hedge
accounting

Type oftransaction

Interest rate
swaps:
Receivefloating/ Pay
fixed

(22)

Hedged item

Notional amounts(Millions of yen)

Maturing after
one year(Millions of yen)

Estimated fairvalue(Millions of yen)

Long-term
loans
payable

3,450

3,450

(25)

40

As of March 31, 2019
Hedge accounting Type of transaction
Deferred hedge
accounting

Interest rate swaps:

Receive floating/
Pay fixed

Hedged item

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

31,083Maturing after
one year(Thousands of
U.S. dollars)

Estimated fairvalue
(Thousands of
U.S. dollars)

31,083(227)(Note) Methods of fair value measurement
Fair values are calculated based on the prices provided by counterparty financial institutions.

41

(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 lumpsum 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 as aresult of the setup of retirement benefit trusts, the Company provides lump-sum benefits based on salaries
and length of service.
The Company received approval from the Minister of Health, Labour and Welfare on April 1, 2016 forthe waiver of future payment obligations and on May 1, 2017 for the return of the benefit obligations
related to past employee service for a substitutional portion of the welfare pension fund. On August 14,
2018, Ushio Denki Kigyo Nenkin Kikin (Ushio Corporate Pension Fund), in which the Company
participates, paid to the government ¥7,942 million ($71,558 thousand) comprising the transfer amount of
the substitutional portion (minimum policy reserve). Its impact on profit or loss in the fiscal year ended
March 31, 2019 amounted to ¥5 million ($46 thousand) which was recognized in selling, general andadministrative expenses.
Under the defined benefit corporate pension plans and the lump-sum retirement benefit plans for certain
consolidated subsidiaries, net defined benefit liability and retirement benefit expenses are calculated by thesimplified method.
2. Defined benefit plan
(1) Reconciliation between retirement benefit obligations at beginning of period and end of period
Fiscal year ended
March 31, 2018

Retirement benefit obligation at beginning of period
Current service costs
Interest costs
Actuarial gains and losses arising during period
Retirement benefits paid
Past service costs
Reduction amount associated with transfer
of benefit obligation relating to employees'
pension fund
Other
Effect of exchange rate changes
Retirement benefit obligation at end of period(Millions of yen)
37,701
1,016
214
619
(1,177)(53)

Fiscal year ended March 31, 2019

(Millions of yen)
28,629
1,046
158
408
(449)
-

(Thousands of U.S. dollars)
257,950
9,425
1,432
3,676
(4,051)-(9,667)(7,937)(71,512)(0)(23)
28,6292
21,85821
196,94242

(2) Reconciliation between plan assets at beginning of period and end of period (excluding plans to whichsimplified method is applied stated in (3))
Fiscal year ended
March 31, 2018

Plan assets at beginning of period
Expected return on plan assets
Actuarial gains and losses arising during period
Contributions from employer
Retirement benefits paid
Reduction amount associated with transfer
of benefit obligation relating to employees'
pension fund
Effect of exchange rate changes
Plan assets at end of period(Millions of yen)
28,310
303
742
1,907
(1,131)

Fiscal year ended March 31, 2019

(Millions of yen)
30,109
322
(107)
822
(414)

(Thousands of U.S. dollars)
271,278
2,904
(969)
7,410
(3,736)-(7,942)(71,558)(22)
30,1093
22,79335
205,363(3) Reconciliation between net defined benefit liabilities for plans to which simplified method is applied at
beginning of period and end of period
Fiscal year ended
March 31, 2018

Net defined benefit liability at beginning of period
Retirement benefit expenses
Retirement benefits paid
Contribution to plans
Other
Effect of exchange rate changes
Net defined benefit liability at end of period(Millions of yen)
539
176
(53)
(18)
(28)
1
617

Fiscal year ended March 31, 2019

(Millions of yen)
617
157
(27)
(9)
(6)
(1)
729

(Thousands of U.S. dollars)
5,562
1,419
(250)
(83)
(59)
(14)
6,574

43

(4) Reconciliation between retirement benefit obligation and plan assets at end of period, and defined
benefit liability and defined benefit asset for retirement recognized on the consolidated balance sheet
As of March 31, 2018

Retirement benefit obligation for funded plans
Plan assets
Retirement benefit obligation for unfunded plans
Net balance of liability and asset recognizedon the consolidated balance sheet

Net defined benefit liability
Net defined benefit asset
Net balance of liability and asset recognizedon the consolidated balance sheet(Millions of yen)
28,629(30,109)(1,479)
617
(861)

2,918
(3,780)(861)(5) Retirement benefit expenses and their breakdown

Fiscal year ended
March 31, 2018

As of March 31, 2019

(Millions of yen)
21,858(22,793)
(934)
729
(204)

3,186
(3,391)(204)(Thousands of U.S. dollars)
196,942(205,363)(8,421)
6,574(1,846)28,708(30,554)(1,846)

Fiscal year ended March 31, 2019

(Millions of yen)
(Millions of yen) (Thousands of U.S. dollars)
Current service costs
1,016
1,046
9,425
Interest costs
214
158
1,432
Expected return on plan assets
(303)
(322)
(2,904)
Amortization of actuarial gains and losses
646
506
4,566
Amortization of past service costs
(7)
(5)
(49)
Other
(80)
(96)
(871)
Retirement benefit expenses applying
176
157
1,419
simplified method
Retirement benefit expenses under defined
1,663
1,444
13,018benefit plans(Note) In addition to the above, for the fiscal year ended March 31, 2019, ¥40 million ($368 thousand) wasrecorded as loss on revision of retirement benefit plan in extraordinary losses following the revision of
the lump-sum retirement benefit plans relating to employees of certain consolidated subsidiaries. For the
fiscal year ended March 31, 2019, ¥1,101 million ($9,923 thousand) in extra retirement payments andother 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, 2018
(Millions of yen)
1,878
(6,288)(4,409)

Past service costs
Actuarial gains and losses
Total

Fiscal year ended March 31, 2019

(Millions of yen)
5
8
14

(Thousands of U.S. dollars)
49
79
129

(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, 2018
(Millions of yen)
(179)
5,162
4,983

Unrecognized past service costs
Unrecognized actuarial gains and losses
Total

As of March 31, 2019

(Millions of yen)
(173)
5,189
5,015

(8) Plan assets
1) Breakdown of plan assets
Percentage of each main category to total plan assets is as follows:
As of March 31, 2018

(Thousands of U.S. dollars)(1,563)46,75645,193As of March 31, 2019

Bonds
27%
36%
Securities
14%
20%
Cash and deposits
5%
7%
Alternative investments (Note 1)
17%
24%
Advance payment of the minimum policy
27%-%
reserve
Other
10%
13%
Total (Note 2)
100%
100%
(Notes) 1. Alternative investments mainly consist of investment to hedge funds.
2. Total plan assets include retirement benefit trusts of 6% and 8% that are set up for a corporate pension
plan as of March 31, 2018 and 2019, 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 long-term rateof return on various asset categories comprising plan assets.
(9) Actuarial assumptions
Major bases for actuarial calculation
Discount rateLong-term expected rate of return
Expected rate of salary increase

Fiscal year ended March 31, 2018 Fiscal year ended March 31, 2019
0.6～0.7%
1.5%
3.0%

0.4～0.6%
1.5%
3.0%

3. Defined contribution plan
The required contribution to the defined contribution plan amounts to ¥586 million and ¥560 million($5,050 thousand) for the fiscal years ended March 31, 2018 and 2019, respectively.

45

(Tax Effect Accounting)
1. Breakdown of major reason for deferred tax assets and deferred tax liabilities
As of March 31,
As of March 31, 20192018
(Millions of yen)
(Millions of yen)(Thousands of U.S. dollars)
Deferred tax assets:
Net losses carried forward (Note 2)
3,601
4,702
42,364
Allowance for doubtful accounts
480
355
3,200
Provision for bonuses
634
611
5,512
Provision for product warranties
174
451
4,070
Net defined benefit liability
707
867
7,820
Provision and accrual for directors'
259
331
2,989
retirement benefits
Loss on valuation of inventories
1,410
1,710
15,410Research and development expenses
589
744
6,710
Impairment loss
803
672
6,060
Deferred revenue
1,521
744
6,711
Elimination of unrealized income on
145
740
6,670
inventories
Other
1,568
3,081
27,760Total gross deferred tax assets
11,89515,014135,280
Valuation allowance for tax losses carried(4,199)(37,837)
forward (Note 2)
Valuation allowance for total amount of(3,869)(34,865)
deductible temporary differences
Valuation allowance (Note 1)(6,211)(8,069)(72,703)
Total deferred tax assets
5,684
6,945
62,577
Deferred tax liabilities:
Net defined benefit asset
(561)
(462)
(4,170)
Valuation difference on available-for-sale(10,898)(6,744)(60,766)
securities
Depreciation
(553)
(585)
(5,279)Retained earnings of subsidiaries and(607)(1,433)(12,915)
associates
Other
(155)
(206)
(1,864)
Total deferred tax liabilities(12,775)(9,433)(84,997)
Net deferred tax assets (liabilities)(7,091)(2,488)(22,419)(Notes) 1. Valuation allowance increased by ¥1,858 million ($16,742 thousand). The main reason for this change
was an increase in valuation allowance for tax losses carried forward of consolidated subsidiaries.
2. The amounts of tax losses carried forward and deferred tax assets by carry-forward period are as
follows:
As of March 31, 2019

(Millionsof yen)Due after
one yearand up totwo years(Millionsof yen)Due after
two years
and up tothree years(Millionsof yen)Due after
three years
and up tofour years(Millionsof yen)Due after
four years
and up to
five years(Millionsof yen)

36

164

113

410

8

86

113

27

78

-

Due within
one yearTax losses
carriedforward (*1)
Valuation
allowance
Deferred tax
assetsDue after
five years

Total(Millionsof yen)(Millionsof yen)

126

3,851

4,702

410

126

3,454

4,199

-

-

396

502

46

As of March 31, 2019
Due within
one year(Thousands of U.S.
dollars)

Due after
one yearand up totwo years(Thousands of U.S.
dollars)

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

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

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

Tax losses
carried
324
1,483
1,021
3,699
1,136
forward (*1)
Valuation
76
781
1,021
3,699
1,136
allowance
Deferred tax
248
702
assets(*1) The amounts of tax losses carried forward are multiplied by the statutory tax rate.

Due after
five years

Total(Thousands of U.S.
dollars)(Thousands of U.S.
dollars)

34,69842,364

31,122

37,837

3,575

4,526

2. Reconciliation of significant difference between statutory tax rate and effective tax rate after application oftax effect accounting
As of March 31,
As of March 31,
2018
2019
Statutory tax rate
30.9%
30.6%
Reconciliation:
Increase (decrease) in valuation allowance for
6.6
7.0
deferred tax assets
Non-taxable income for income tax purposes
(0.6)
(0.7)
(e.g. dividend income)Non-deductible expenses for income tax
0.7
0.6
purposes (e.g. entertainment expenses)
Tax deductions related to R&D activities
(2.1)
(2.5)
Different tax rates applied to consolidated
(2.0)
(1.5)
subsidiaries
Amortization of goodwill
1.7
1.5
Share of profit (loss) of entities accounted for
(0.0)
0.0
using equity method
Retained earnings of subsidiaries and
10.5
3.8
associates
Decrease of deferred tax assets at fiscal year3.7
0.9
end by the change of tax rate
Transfer pricing taxation-related
4.2
Other
0.4
1.0
Effective tax rate after application of tax effect
49.7
44.8
accounting

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 toassess 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., and eachdivision 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 two categories based on product type andsales market.
“Light sources business” conducts manufacturing and sales of halogen lamps and discharge lamps, etc.
“Equipment business” conducts manufacturing and sales of optical equipment and visual image
equipment, etc.
2. Methods of determining the amounts of net sales, profit or loss, assets, liabilities, and other items byreportable 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.
3. Information about net sales, segment profit or loss, assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2018
(Millions of yen)Amounts
Reportable segmentonEliminatio
Other
consolida
Light
ns or
Equip
businesstedsourceTotalunallocate
mentes
financials
Total
d amounts
busine(Note 1)statement
busine(Note 2)sss
ss
(Note 3)
Net sales
72,412
97,656
170,068
3,428
173,497
173,497
Sales to external customers
Intersegment sales or
1,891
60
1,951
35
1,987
(1,987)transfers
Total
74,303
97,716
172,020
3,464
175,485(1,987) 173,497
Segment profit (loss)
10,402
(509)
9,893
129
10,022
129
10,151
Segment assets
108,860
112,030
220,891
46,953
267,845
37,458305,303
Other items:
Depreciation
3,128
3,613
6,741
48
6,790
6,790
540
787
1,327
1,327
1,327
Amortization of goodwill
Investment in associates
30
30
30
30
under equity method
Increase in property, plant
2,329
1,973
4,302
955
5,258
5,258
and equipment andintangible assets (Note 4)(Notes) 1. “Other businesses” represents business segments that are not included in other reportable segments
and other revenue-generating business activities, including industrial machinery and fundmanagement activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to ¥129 million, include
elimination of intersegment transactions totaling ¥163 million.
(2) Eliminations or unallocated amounts of segment assets, amounting to ¥37,458 million, include

48

elimination of intersegment receivables and payables totaling ¥(12,762) million and corporate
assets not allocable to any reportable segment or other revenue-generating business activities
totaling ¥50,527 million that consists primarily of surplus funds (cash and securities) and long-term
investments (investment securities), etc.
3. Segment profit (loss) is reconciled to operating profit on the consolidated statement of income.
4. The increase in long-term prepaid expense is included in increases in property, plant and equipment
and intangible assets.
Fiscal year ended March 31, 2019
Reportable segment

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit (loss)
Segment assets
Other items:
Depreciation
Amortization of goodwill
Investment in associates
under equity method
Increase in property, plantand equipment and intangible
assets(Note 4)(Millions of yen)
Eliminations Amounts onorconsolidated
unallocatedfinancialamountsstatements(Note 2)
(Note 3)

Total

Other
businesses(Note 1)

Total

94,641
63
94,704(300)
125,052

161,834716
162,551
8,067
236,141

3,303
52
3,355
100
46,728165,138
769
165,9078,168
282,869

(769)
(769)
349
23,758165,138
165,1388,517
306,628

3,121
423

3,615
712

6,737
1,135

38
-

6,775
1,135

-

6,775
1,135

2,508

4,518

7,026

1,435

8,462

-

8,462

Light
sourcesbusiness

Equipment
business

67,193653
67,8478,367
111,089

-

-

-

-

Fiscal year ended March 31, 2019
Reportable segment

Lightsourcesbusiness

Equipment
business

Total

Net sales
605,403852,699 1,458,103
Sales to external customers
5,887
570
6,457
Intersegment sales or transfers
Total
611,291
853,269 1,464,561
Segment profit (loss)
75,391(2,704)
72,687
Segment assets
1,000,893 1,126,700 2,127,593
Other items:
Depreciation
28,121
32,57860,6993,812
6,420
10,233
Amortization of goodwill
Investment in associates
under equity method
Increase in property, plant
22,596
40,71063,307and equipment and intangible
assets(Note 4)

Otherbusinesses(Note 1)---(Thousands of U.S. dollars)Eliminations Amounts onorconsolidated
Total
unallocatedfinancialamountsstatements(Note 2)
(Note 3)29,760 1,487,864
471
6,929
30,232 1,494,793
905
73,593421,012 2,548,605- 1,487,864(6,929)(6,929) 1,487,864
3,152
76,745
214,061 2,762,666

350-

61,050
10,233-61,050
10,233

12,93776,245-76,245

-

-

-

-

49

(Notes) 1. “Other businesses” represents business segments that are not included in other reportable segments
and other revenue-generating business activities, including industrial machinery and fundmanagement activities.
2. Adjustments are as follows:(1) Eliminations or unallocated amounts of segment profit (loss), amounting to ¥349 million ($3,152
thousand), include elimination of intersegment transactions totaling ¥165 million ($1,486
thousand).
(2) Eliminations or unallocated amounts of segment assets, amounting to ¥23,758 million ($214,061
thousand), include elimination of intersegment receivables and payables totaling ¥(8,435) million($(76,002) thousand) and corporate assets not allocable to any reportable segment or otherrevenue-generating business activities totaling ¥32,354 million ($291,511 thousand) that consists
primarily of surplus funds (cash and securities) and long-term investments (investment securities),
etc.
3. Segment profit (loss) is reconciled to operating profit on the consolidated statement of income.
4. The increase in long-term prepaid expense is included in increases in property, plant and equipment
and intangible assets.
Related information
Fiscal year ended March 31, 2018
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 salesJapan

35,879North America
U.S.A.
Other
44,837
3,041

EuropeChina
41,806

17,930Asia

Other27,779(Note) Sales are classified by country or region based on the location of customers.

Other
areas
2,221

(2) Property, plant and equipment
Japan

26,954

North America
U.S.A.
Canada7,240
2,637

Europe

1,469

Asia

3,253

Other areas

21(Millions of yen)Total

173,497(Millions of yen)Total

41,578

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.
Fiscal year ended March 31, 2019
1. Information by product and service
Information by product and service has been omitted as the similar information is disclosed in thesegment information.

50

2. Information by geographic area
(1) Net salesJapan

36,229Japan

326,424

North America
U.S.A.
Other
38,681
2,166
North America
U.S.A.
Other
348,514
19,521

Asia
China
Other
42,06528,058Europe16,148Asia

EuropeChina
379,005

145,496(Millions of yen)

Other areas

1,787

Other
252,798

Other areas

16,104(2) Property, plant and equipment
Japan28,454

Japan

256,365

North America
U.S.A.
Canada66,39523,877

Europe1,329Europe11,979165,138(Thousands of U.S. dollars)(Note) Sales are classified by country or region based on the location of customers.

North America
U.S.A.
Canada
7,369
2,650

Total

Asia

3,234

Other areas

13

Total

1,487,864(Millions of yen)Total

43,050(Thousands of U.S. dollars)Asia

29,142Other areas

119

Total

387,880

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, 2018

Impairment loss

Reportable segment
Equipment
Light sourcesbusinessbusiness
1,267
607

Total

1,875

Other
businesses-

Eliminations orunallocatedamounts-

Fiscal year ended March 31, 2019

Impairment loss

Reportable segment
Equipment
Light sourcesbusinessbusiness
46
983

Total

1,029

Other
businesses

Impairment loss

Total

9,280

Other
businesses

Total
1,875
(Millions of yen)-

Eliminations orunallocatedamounts--(Thousands of U.S. dollars)Eliminations or
Total
unallocatedamounts
9,280

Fiscal year ended March 31, 2019
Reportable segment
Equipment
Light sourcesbusinessbusiness
417
8,862(Millions of yen)

Total
1,029

(Note) Of the impairment losses relating to the equipment business segment, ¥888 million ($8,008 thousand) wasrecorded in the consolidated statement of income as part of business structure improvement expenses.

51

Information on amortization and unamortized balance of goodwill by reportable segment
Fiscal year ended March 31, 2018

Amortized forthe year
Balance

Reportable segment
Equipment
Light sourcesbusinessbusiness
540

955

787

1,403

Total

Other
businesses

1,327

-

2,358

-

Eliminations orunallocatedamounts-

Fiscal year ended March 31, 2019

Amortized forthe year
Balance

Light sourcesbusiness

Reportable segment
Equipment
business

423

630

712
740

Total

Other
businesses

1,135

-

1,370

-

Fiscal year ended March 31, 2019

Amortized forthe year
Balance

Light sourcesbusiness

Reportable segment
Equipment
business

3,812

5,681

6,420
6,669

Total

Other
businesses

10,233
12,351-Eliminations orunallocatedamounts-(Millions of yen)
Total
1,327
2,358
(Millions of yen)
Total
1,135
1,370

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

10,233
12,351

Information on gain on negative goodwill by reportable segment
Fiscal year ended March 31, 2018
Not applicable.
Fiscal year ended March 31, 2019
Not applicable.

52

Related party information
Fiscal year ended March 31, 2018
1. Related party transactions
Not applicable.
2. Information on the parent company and major associates
Not applicable.
Fiscal year ended March 31, 2019
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, 2018

Fiscal year ended March 31, 2019

Net assets per share¥1,683.42 Net assets per share¥1,691.45 Net assets per share$15.23¥86.11 Basic earnings per share¥88.85 Basic earnings per share$0.80
Basic earnings per share
Diluted earnings per share is not
Diluted earnings per share is not
Diluted earnings per share is notpresented since no potential sharespresented since no potential sharespresented since no potential shares
exist.
exist.
exist.
(Notes) 1. The basis used for calculating basic earnings per share is as follows:
Fiscal year ended
March 31, 2018

Profit attributable to owners of the parent
Profit not attributable to commonshareholders
Profit attributable to owners of the parent
attributable to common shares
Average number of common shares
outstanding during the year (Shares)(Millions of yen)
11,001

Fiscal year ended March 31, 2019

(Millions of yen)
11,326(Thousands of U.S. dollars)

102,045---

11,001

11,326

102,045

127,762,858

127,466,615

127,466,615

2. The Company’s shares held by the trust for the stock remuneration plan for directors are recorded astreasury shares in shareholders’ equity which are deducted from the total number of shares issued at
the balance sheet date for the purpose of calculating net assets per share (292,700 shares and 352,300
shares as of March 31, 2018 and 2019, respectively).
The Company’s shares held by the trust for the stock remuneration plan for directors are recorded astreasury shares in shareholders’ equity which are deducted from the weighted-average number ofshares outstanding during the year for the purpose of calculating the basic earnings per share(294,522 shares and 328,775 shares for the fiscal years ended March 31, 2018 and 2019,respectively).

53

(Subsequent Events)
Purchase of treasury shares
In accordance with the resolution by the Board of Directors meeting held on December 20, 2018 topurchase treasury shares pursuant to the provisions of Article 156 of the Companies Act, as appliedmutatis mutandis pursuant to the provisions of Article 165, paragraph 3 of the Companies Act, theCompany has made the purchase of treasury shares as follows:(1) Reason for purchase of treasury shares
To raise capital efficiency and enable the implementation of flexible capital policy.
(2) Details of purchase・Type of shares to be purchased:
Common shares of the Company
・Total number of shares to be purchased:
8,000,000 shares (maximum)¥10,000,000,000 ($90,098 thousand)・Total amount of shares to be purchased:(maximum)・Purchase period:
December 21, 2018 to December 20, 2019(3) Results of purchase1) Details of treasury shares purchased on or before March 31, 2019
・Type of shares purchased:
Common shares of the Company
・Total number of shares purchased:
1,712,000 shares・Total amount of shares purchased:¥2,160,448,400 ($19,465 thousand)・Purchase period:
December 21, 2018 to March 31, 2019Market purchase on the Tokyo Stock・Purchasing method:
Exchange2) Details of treasury shares purchased on or after April 1, 2019
・Type of shares purchased:
Common shares of the Company
・Total number of shares purchased:
1,249,600 shares・Total amount of shares purchased:¥1,700,301,400 ($15,319 thousand)・Purchase period:
April 1, 2019 to May 31, 2019Market purchase on the Tokyo Stock・Purchasing method:
Exchange54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 Balance at
beginning
end ofBalance atBalance atof current
current
Average
beginning of
Repaymentend of current
current
periodperiodinterest rate
term
period(Thousands (Thousands(%)
period(Millions of yen)of U.S.
of U.S.
(Millions of yen)dollars)
dollars)
6,950
10,00862,61990,177
2.4
1,884

8,520

16,98376,765

1.6

-

4

91

41

824

0.0

-

17,98910,410162,077

93,796

1.9

0

166

2

1,502

0.0

26,82829,197

241,723

263,065-

From 2020
to 2023
From 2020
to 2024-(Notes) 1. The average interest rate represents the weighted-average interest rate over the year-end balance ofloans.
2. The average interest rates on lease obligations are omitted for lease obligations which are recorded in
the consolidated balance sheet at the amount before deducting interest equivalents included in the
total lease payment and only those for which the standard method is applied are shown.
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:

Long-term loans
payableLease obligations

Long-term loans
payableLease obligations

Due after one year
and up to two years(Millions of yen)
6,137
91

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

55,299822

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

3,828
65

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

34,496591

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

20
7

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

180
71

Due after four years
and up to five years(Millions of yen)424
1

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

3,820
17

Annexed detailed schedule of asset retirement obligations
Information is omitted because the amounts of asset retirement obligations at the beginning and the endof 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 theRegulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements.

55

(2) Other Information
Quarterly information for the fiscal year ended March 31, 2019

Fiscal year ended
March 31, 2019

(Cumulative period)First three months

First six months

First nine months

Net sales (Millions of yen)

39,95182,603

122,394

2,257

3,508

5,675

11,326

17.67

27.46

44.43

88.85

Profit before income taxes(Millions of yen)
Profit attributable toowners of the parent(Millions of yen)
Basic earnings per share (Yen)(Accounting period)

Basic earnings per share (Yen)3,268First quarter

17.67

5,623

Second quarter

9.79

Quarterly information for the fiscal year ended March 31, 2019

(Cumulative period)
Net sales(Thousands of U.S. dollars)Profit before income taxes(Thousands of U.S. dollars)Profit attributable to owners of
the parent(Thousands of U.S. dollars)
Basic earnings per share(U.S. dollars)(Accounting period)

Basic earnings per share(U.S. dollars)

9,202

165,138
20,390Third quarter

Fourth quarter

16.97

44.54

First three months

First six months

First nine months

Fiscal year ended
March 31, 2019359,952

744,240

1,102,751

1,487,864

29,446

50,664

82,911

183,710

20,341

31,61051,136

102,045

0.15

0.24

0.40

0.80

First quarter

0.15

Second quarter

0.08

Third quarter

0.15

Fourth quarter

0.4056