瑞光（6279） – [Delayed]Summary of Consolidated Financial Results for the Year Ended February 20, 2022

Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Financial Results for the Year Ended February 20, 2022 (Based on Japanese GAAP) April 5, 2022Company name: ZUIKO CORPORATION Stock exchange listing: Tokyo Stock code: Representative: 6279 CEOURL https://www.zuiko.co.jp/ Toyoshi Umebayashi Inquiries: Department General Manager of Corporate Strategy Scheduled date of ordinary general meeting of shareholders: Scheduled date to file Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Holding of financial results meeting: May 17, 2022 May 17, 2022 May 18, 2022 NoNoNorihiro Asada TEL (072)648-2215 1. Consolidated financial results for the year ended February 20, 2022 (from February 21, 2021 to February 20, 2022)(1) Consolidated operating resultsNet sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Year ended February 20, 2022 Year ended February 20, 2021 Millions of yen 23,580 23,087 % Millions of yen 2,145 2.11,892 (16.4)% Millions of yen 2,421 2,103 13.4(22.1)% Millions of yen 1,736 1,620 15.2(13.5)% 7.2(7.8)(Amounts less than one million yen are rounded down)Note: Comprehensive income Year ended February 20, 2022 ¥3,015 million [90.6%]Year ended February 20, 2021 ¥1,582 million [(0.7)%]Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Year ended February 20, 2022Year ended February 20, 2021Yen66.0761.69Yen65.7161.35%6.16.1Reference: Share of profit (loss) of entities accounted for using equity method Year ended February 20, 2022 Year ended February 20, 2021 %5.25.4%9.18.2¥– million ¥– million Note: The Company conducted a 4-for-1 share split of common shares on August 21, 2020. The figures for earnings per share and diluted earnings per share were calculated on the assumption that the share split was conducted at the beginning of the fiscal year ended February 20, 2021. (2) Consolidated financial positionAs of February 20, 2022 As of February 20, 2021 Reference: Equity Total assets Net assets Equity ratio Net assets per share Millions of yen 50,213 42,325 Millions of yen 30,055 27,480 % 59.6 64.7 Yen 1,138.92 1,041.69 As of February 20, 2022 As of February 20, 2021 ¥29,941 million ¥27,364 million Note: The Company conducted a 4-for-1 share split of common shares on August 21, 2020. The figure for net assets per share was calculated on the assumption that the share split was conducted at the beginning of the fiscal year ended February 20, 2021. (3) Consolidated cash flowsYear ended February 20, 2022 Year ended February 20, 2021Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 2,253 1,817Millions of yen (1,422)(10,001)Millions of yen 2,475 4,660Millions of yen 9,401 5,7542. Cash dividends Year ended February 20, 2021 Year ended February 20, 2022 Year ending February 20, 2023 (Forecast) Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen – – – Yen 10.00 6.20 8.10 Yen – – – Yen 11.25 10.00 8.10 Yen Millions of yen – 16.20 16.20 361 425 % 22.3 24.5 27.0 % 1.3 1.5 Note: The Company conducted a 4-for-1 share split of common shares with an effective date of August 21, 2020. Regarding the dividends per share paid in the fiscal year ended February 20, 2021, the amount shown for the end of the second quarter is before the share split and the amount shown for the year-end is after the share split. The annual dividend is not shown because a simple total cannot be calculated due to the share split. Under the assumption that the share split was conducted on the record date for the interim dividend, the interim dividend would have been ¥2.50 per share, resulting in a total annual dividend of ¥13.75 per share, including the year-end dividend. 3. Forecast of consolidated financial results for the year ending February 20, 2023 (from February 21, 2022 to February 20, 2023) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Full year Millions of yen 26,400 % Millions of yen 2,126 12.0 % Millions of yen 2,237 (0.9)% Millions of yen 1,575 (7.6)% (9.3)Yen 59.91 4. Notes (1) Changes in significant subsidiaries during the year ended February 20, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: No No Yes No No (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of February 20, 2022 28,800,000 shares As of February 20, 2021 28,800,000 shares As of February 20, 2022 2,510,688 shares As of February 20, 2021 2,530,888 shares Number of treasury shares at the end of the period Average number of shares during the period Year ended February 20, 2022 26,283,962 shares Year ended February 20, 2021 26,269,238 shares Note: The Company conducted a 4-for-1 share split of common shares on August 21, 2020. The figures for number of issued shares (common shares) were calculated on the assumption that the share split was conducted at the beginning of the fiscal year ended February 20, 2021. Reference: Summary of non-consolidated financial results 1. Non-consolidated financial results for the year ended February 20, 2022 (from February 21, 2021 to February 20, 2022) (1) Non-consolidated financial results Percentages indicate year-on-year changesNet sales Operating profit Ordinary profit Profit Year ended February 20, 2022 Year ended February 20, 2021 Millions of yen 17,151 16,240 % Millions of yen 2,086 5.6 1,196 (17.1)% Millions of yen 2,377 1,325 74.4 (41.4)% Millions of yen 1,688 908 79.3 (35.4)% 85.9 (36.5) Year ended February 20, 2022 Year ended February 20, 2021 Earnings per share Diluted earnings per share Yen 64.23 34.57 Yen 63.88 34.38 Note: The Company conducted a 4-for-1 share split of common shares on August 21, 2020. The figures for earnings per share and diluted earnings per share were calculated on the assumption that the share split was conducted at the beginning of the fiscal year ended February 20, 2021. (2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen 37,571 32,779 Millions of yen 22,275 21,004 % 59.0 63.7 Yen 842.98 795.14 As of February 20, 2022 As of February 20, 2021 Reference: Equity As of February 20, 2022 As of February 20, 2021 ¥22,161 million ¥20,887 million Note: The Company conducted a 4-for-1 share split of common shares on August 21, 2020. The figure for net assets per share was calculated on the assumption that the share split was conducted at the beginning of the fiscal year ended February 20, 2021. * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special matters The forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to achieve the stated performance. Actual business and other results may differ substantially due to various factors. ○Table of Contents 1. Overview of Operating Results, etc. ……………………………………………………………………………………………………………………… 2 (1) Overview of Operating Results for the Fiscal Year Under Review ……………………………………………………………………….. 2 (2) Overview of Financial Position for the Fiscal Year Under Review ………………………………………………………………………. 2 (3) Overview of Cash Flows for the Fiscal Year Under Review ………………………………………………………………………………… 3 (4) Future Outlook …………………………………………………………………………………………………………………………………………….. 3 (5) Basic Policy for the Distribution of Profits and Dividends for the Fiscal Year Under Review and Next Fiscal Year ……. 3 2. Basic Policy on the Selection of Accounting Standards ……………………………………………………………………………………………. 3 3. Consolidated Financial Statements and Key Notes ………………………………………………………………………………………………….. 4 (1) Consolidated Balance Sheets ………………………………………………………………………………………………………………………….. 4 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income …………………………………. 6 Consolidated Statements of Income ………………………………………………………………………………………………………………… 6 Consolidated Statements of Comprehensive Income ………………………………………………………………………………………….. 7 (3) Consolidated Statements of Changes in Equity …………………………………………………………………………………………………. 8 (4) Consolidated Statements of Cash Flows …………………………………………………………………………………………………………. 10 (5) Notes to Consolidate Financial Statements ……………………………………………………………………………………………………… 11 (Notes on Assumption of a Going Concern) ……………………………………………………………………………………………………. 11 (Change in Accounting Policies) …………………………………………………………………………………………………………………… 11 (Segment Information) ………………………………………………………………………………………………………………………………… 12 (Per-Share Information) ……………………………………………………………………………………………………………………………….. 12 (Significant Subsequent Events) ……………………………………………………………………………………………………………………. 12 (Additional Information) ……………………………………………………………………………………………………………………………… 12 4. Other ………………………………………………………………………………………………………………………………………………………………. 13 Net Sales, Orders Received and Backlogs by Product (consolidated) ………………………………………………………………………… 13 1 １．Overview of Operating Results, etc. (1）Overview of Operating Results for the Fiscal Year Under Review During the fiscal year under review (February 21, 2021 to February 20, 2022), the Japanese economy experienced restrictions on economic activities due to the issuance of declarations of a state of emergency for COVID-19 and the continued application of priority measures to prevent the spread of the disease. In addition, the future outlook remains uncertain due to the acute expansion of new variants. However, due to the progress of administering vaccinations in developed countries, restrictions on economic and social activities were gradually eased, and economic activities, mainly capital investment in Europe and the US, began to recover, with the trend picking up going into the 2H. In this economic environment, Our Group has been actively promoting online sales activities to capture domestic demand and aggressively expand into overseas markets, with the aim of achieving sustainable growth and increasing corporate value over the medium to long term. We are also continuing our efforts to improve productivity and profitability through consolidation and stable operation at the new Head Office Plant. As a result, net sales for the fiscal year under review fell slightly short of our forecast due to supply concerns such as the global shortage of parts and materials and stagnation in logistics, as well as soaring raw material prices, however profits managed to exceed our forecast due to ongoing efforts to reduce manufacturing costs and expenses. Net sales by major products were as follows: sanitary napkin manufacturing machinery: 3,754 million yen (up 24.3% YoY), baby disposable diaper manufacturing machinery: 11,118 million yen (up 16.2% YoY), adult disposable diaper manufacturing machinery: 4,568 million yen (up 20.8% YoY), other machinery: 1,615 million yen (up 28.2% YoY), and components: 2,038 million yen (up 0.8% YoY). As a result of the above, for the fiscal year under review, consolidated net sales were 23,580 million yen (up 2.1% YoY), operating profit was 2,145 million yen (up 13.4%), ordinary profit was 2,421 million yen (up 15.2%), and profit attributable to owners of the parent was 1,736 million yen (up 7.2%). On a non-consolidated basis, net sales were 17,151 million (up 5.6% YoY), operating profit was 2,086 million (up 74.4%), ordinary profit was 2,377 million (up 79.3%), and profit was 1,688 million (up 85.9%). In terms of the environment for orders, while there was a general trend toward an increase due to the recovery in capital investment and a sustained increase in demand for sanitary products in emerging countries, competition for market share in the sanitary products manufacturing machinery market remained intense, and orders received decreased 7.9% from the previous fiscal year, to 24,937 million yen, while backlogs at the end of the fiscal year under review were up 7.5%, to 19,323 million yen. (2）Overview of Financial Position for the Fiscal Year Under Review Total assets at the end of the fiscal year under review were 50,213 million yen, up 7,887 million yen from the end of the previous fiscal year. While construction in progress, notes and accounts receivable-trade, software in progress, and raw materials and supplies decreased by 4,807 million yen, 1,417 million yen, 255 million yen, and 101 million yen, respectively, buildings and structures (net), cash and deposits, work in process, electronically recorded monetary claims – operating, deferred tax assets, software, and machinery, equipment and vehicles, net increased by 5,834 million yen, 3,321 million yen, 1,961 million yen, 1,544 million yen, 253 million yen, 238 million yen, and 229 million yen, respectively. Total liabilities increased 5,312 million yen from the end of the previous fiscal year to 20,157 million yen. While electronically recorded obligations – operating and notes and accounts payable – trade decreased 1,243 million yen 342 million yen, respectively, long-term borrowings, advances received, income taxes payable, long-term accounts payable – other and current portion of long-term borrowings increased 2,750 million yen, 2,032 million yen, 615 million yen, 459 million yen and 250 million yen, respectively. Total net assets increased 2,574 million yen from the end of the previous fiscal year to 30,055 million yen. Retained earnings and foreign currency translation adjustments increased by 1,278 million yen and 1,253 million yen, respectively. 2 (3）Overview of cash flows for the fiscal year under review Cash and cash equivalents (“cash”) in the fiscal year under review increased 3,647 million yen from the end of the previous fiscal year to 9,401 million yen. The status of each cash flow segment and contributing factors in the fiscal year under review are as follows: (Cash flows from operating activities) Net cash provided by operating activities for the fiscal year under review was 2,253 million yen (up 24.0% year on year). This was mainly due to recording profit before income taxes of 2,364 million yen, an increase in advances received of 1,751 million yen, and depreciation of 573 million yen, which offset a decrease in notes and accounts payable – trade of 1,468 million yen, an increase in inventories of 1,351 million yen, income taxes paid of 373 million yen, and increase in consumption taxes refund receivable of 368 million yen. Net cash used in investing activities amounted to 1,422 million yen (down 85.8% from the previous year) in the fiscal year under review. This was mainly due to expenditures of 2,062 million yen for the purchase of property, plant and equipment and 280 million yen for the purchase of intangible assets, despite a decrease of 920 million yen in time deposits. Net cash provided by financing activities amounted to 2,475 million yen (down 46.9% from the previous year) in the fiscal year under review. This was mainly due to proceeds from long-term borrowings of 3,000 million yen, while cash dividends paid totaled 458 million yen. (Cash flows from investing activities) (Cash flows from financing activities) (4）Future Outlook With regard to the outlook for future operating results, we expect that the situation will continue to be unpredictable due to the ongoing impact of COVID-19 on the economy, as well as trends in crude oil prices and exchange rates, shortages of parts and materials, stagnation of logistics and other factors, and circumstances in the Ukraine. In this environment, our Group will steadily increase sales by linking the recovery trend in capital investment to orders and continue to improve productivity and profitability through the full-scale operation of the new Head Office Plant. In addition, after reviewing the Medium-Term Management Plan scheduled to end in the next fiscal year, we will formulate the next Medium-Term Management Plan that will lead to long-term growth and promote aggressive investments in R&D and HR development, as well as SDGs initiatives, aiming to enhance corporate value and realize a sustainable society. Based on the above, for the fiscal year ending February 20, 2023, we project net sales of 26,400 million yen, operating profit of 2,126 million yen, ordinary profit of 2,237 million yen, and net income attributable to owners of parent of 1,575 million yen. Please note that the above forecasts are based on the information currently available to the Group and may differ significantly due to various factors. (5）Basic Policy for the Distribution of Profits and Dividends for the Fiscal Year Under Review and Next Fiscal Year The Company regards the return of profits to shareholders as an important management measure, and its basic policy is to realize continuous dividend payments and increase corporate value while further strengthening the Group’s competitiveness and maintaining financial soundness. The Company pays dividends from surplus twice a year, an interim dividend and a year-end dividend. The decision-making bodies for these dividends are the General Meeting of Shareholders for the year-end dividend and the Board of Directors for the interim dividend. For the fiscal year under review, the Company will pay a year-end dividend of 10 yen per share and an interim dividend of 6.20 yen per share, resulting in a total annual dividend of 16.20 yen per share. For the next fiscal year, the Company plans to pay an interim dividend of 8.10 yen per share and a year-end dividend of 8.10 yen per share, for a total annual dividend of 16.20 yen per share, anticipating that the severe business environment will continue. ２．Basic Policy on the Selection of Accounting Standards The Group prepares its consolidated financial statements in accordance with Japanese GAAP. Regarding the application of international accounting standards in the future, our policy is to respond appropriately, taking into consideration various circumstances in Japan and overseas. 3 Consolidated financial statements Consolidated balance sheets As of February 20, 2021 As of February 20, 2022 (Thousands of yen) Assets Current assets Cash and deposits Notes and accounts receivable – trade Electronically recorded monetary claims – operating 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, net Machinery, equipment and vehicles, net Land Leased assets, net Construction in progress Other, net Total property, plant and equipment Intangible assets Software Software in progress Other Total intangible assets Investments and other assets Investment securities Retirement benefit asset Deferred tax assets Other Total investments and other assets Total non-current assets Total assets Liabilities Current liabilities Notes and accounts payable – trade Current portion of long-term borrowings Electronically recorded obligations – operating Provision for bonuses for directors (and other officers) Lease obligations Accounts payable – other Income taxes payable Advances received Provision for bonuses Provision for product warranties Asset retirement obligations Other Total current liabilities 4 10,530,771 6,257,339 1,080,031 65,627 4,774,995 1,710,226 926,083 (70,479) 25,274,595 2,372,207 788,151 6,014,199 23,104 5,205,418 179,695 14,582,778 203,138 255,403 338,044 796,586 1,533,171 1,688 58,592 78,450 1,671,903 17,051,268 42,325,864 – 2,081,091 3,915,553 14,622 449,521 141,408 2,598,018 287,640 36,414 54,403 – 210,703 9,789,378 13,852,559 4,839,678 2,624,365 95,081 6,736,832 1,609,164 1,459,767 (76,647) 31,140,802 8,206,748 1,018,108 6,057,847 13,709 398,080 551,912 16,246,407 441,964 – 374,607 816,571 1,569,229 11,497 311,970 116,741 2,009,438 19,072,416 50,213,219 1,738,117 250,000 2,672,542 4,185 557,621 756,735 4,630,786 296,090 32,800 65,515 31,731 852,735 11,888,861 As of February 20, 2021 As of February 20, 2022 (Thousands of yen) Non-current liabilities Bonds payable Long-term borrowings Deferred tax liabilities Asset retirement obligations Lease obligations Long-term accounts payable – other Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Total net assets Total liabilities and net assets 5,000,000 – 681 28,161 15,109 11,590 77 5,055,619 14,844,997 1,888,510 2,750,330 23,737,574 (596,693) 27,779,721 890,852 (1,165,229) (141,882) 795 (415,464) 116,610 27,480,866 42,325,864 5,000,000 2,750,000 6,882 28,161 12,406 471,255 – 8,268,705 20,157,566 1,888,510 2,765,633 25,015,764 (591,929) 29,077,978 914,729 (1,165,229) 1,111,990 1,921 863,410 114,263 30,055,652 50,213,219 5 Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income Fiscal year ended February 20, 2021 (Thousands of yen) Fiscal year ended February 20, 2022 Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Selling, general and administrative expenses Dividend income Reversal of long-term accounts payable for directors retirement benefits Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Interest on bonds Bond issuance costs Foreign exchange losses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on retirement of non-current assets Impairment losses Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to owners of parent 23,087,478 18,641,087 4,446,390 2,554,099 1,892,290 132,035 51,689 105,000 – 59,475 348,200 5,623 5,589 29,890 90,031 6,215 137,349 2,103,140 1,151 17,604 18,755 – – 3,414 3,414 2,118,482 382,258 115,705 497,963 1,620,518 1,620,518 23,580,821 18,243,019 5,337,801 3,191,894 2,145,907 136,862 39,942 – 53,169 81,511 311,486 9,905 24,000 – – 1,514 35,420 2,421,974 3,106 – 3,106 30 8,333 51,739 60,103 2,364,977 881,562 (253,281) 628,281 1,736,696 1,736,696 6 Consolidated statements of comprehensive income Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests Fiscal year ended February 20, 2021 (Thousands of yen) Fiscal year ended February 20, 2022 – 1,620,518 124,438 (160,947) (1,449) (37,958) 1,582,559 1,582,559 1,736,696 23,876 1,253,872 1,125 1,278,875 3,015,571 3,015,571 – 7 Consolidated statements of changes in equity Fiscal year ended February 20, 2021 Balance at beginning of period 1,888,510 2,750,330 22,346,913 (596,145) 26,389,608 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (229,857) 1,620,518 (Thousands of yen) Total shareholders’ equity (229,857) 1,620,518 (547) (547) Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period – – 1,390,660 (547) 1,390,113 Balance at end of period 1,888,510 2,750,330 23,737,574 (596,693) 27,779,721 Accumulated other comprehensive income Revaluation reserve for land Foreign currency translation Remeasurements of defined benefit adjustment plans Valuation difference on available-for-sale securities Total accumulated other Share acquisition comprehensive income rights Total net assets Balance at beginning of period 766,414 (1,165,229) 19,064 2,245 (377,505) 98,151 26,110,253 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 124,438 124,438 890,852 – – (160,947) (141,882) (229,857) 1,620,518 (547) (160,947) (1,449) (37,958) 18,458 (19,499) (1,165,229) 795 (415,464) 116,610 27,480,866 (1,449) (37,958) 18,458 1,370,613 8 Balance at beginning of period 1,888,510 2,750,330 23,737,574 (596,693) 27,779,721 Share capital Capital surplus Retained earnings Treasury shares Fiscal year ended February 20, 2022 Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Shareholders’ equity (458,506) 1,736,696 (Thousands of yen) Total shareholders’ equity (458,506) 1,736,696 15,303 4,764 20,067 Total changes during period – 15,303 1,278,190 4,764 1,298,257 Balance at end of period 1,888,510 2,765,633 25,015,764 (591,929) 29,077,978 Accumulated other comprehensive income Revaluation reserve for land Foreign currency translation Remeasurements of defined benefit adjustment plans Valuation difference on available-for-sale securities Total accumulated Share other comprehensive acquisition rights income Total net assets Balance at beginning of period 890,852 (1,165,229) (141,882) 795 (415,464) 116,610 27,480,866 Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period 23,876 23,876 – – 1,125 1,921 Balance at end of period 914,729 (1,165,229) 1,111,990 863,410 114,263 30,055,652 1,253,872 1,125 1,278,875 (2,347) 1,276,528 1,253,872 1,278,875 (2,347) 2,574,786 (458,506) 1,736,696 20,067 9 Consolidated statements of cash flows Cash flows from operating activities Profit before income taxes Depreciation Loss (gain) on sale of non-current assets Loss on retirement of non-current assets Impairment losses Decrease (increase) in retirement benefit asset Loss (gain) on sale of investment securities Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in allowance for doubtful accounts Interest and dividend income Increase (decrease) in long-term accounts payable – other Interest expenses Interest expenses on bonds Bond issuance costs Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in advances received Increase (decrease) in accrued consumption taxes Decrease (increase) in consumption taxes refund receivable Other, net Subtotal Interest and dividends received Income taxes paid Interest paid Net cash provided by (used in) operating activities Cash flows from investing activities Net decrease (increase) in time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Purchase of insurance funds Proceeds from cancellation of insurance funds Other, net Cash flows from financing activities Proceeds from long-term borrowings Proceeds from issuance of bonds Repayments of long-term accounts payable – other Purchase of treasury shares Dividends paid Repayments of lease obligations Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 10 Fiscal year ended February 20, 2021 (Thousands of yen) Fiscal year ended February 20, 2022 2,118,482 388,124 (1,151) 3,414 – (1,688) (17,604) (2,259) (16,266) 33,384 (183,724) (280,497) 5,623 5,589 29,890 (274,960) (288,853) 1,461,982 (454,337) (21,376) (578,913) 90,882 2,015,739 183,724 (376,003) (5,623) 1,817,837 (1,847,933) (8,101,063) 1,234 (99,886) (1,933) 21,061 (176) 13,715 13,409 – – – 4,970,109 (547) (229,857) (79,453) 4,660,250 (86,355) (3,609,840) 9,364,058 5,754,218 2,364,977 573,755 (3,076) 8,333 51,739 (9,809) – 3,320 (3,614) 6,167 23,547 9,905 24,000 – 10,209 (176,805) (1,351,117) (1,468,332) 1,751,842 (94,435) (368,579) 1,122,208 2,474,235 176,805 (373,355) (24,082) 2,253,603 920,629 (2,062,582) 8,207 (280,026) (2,013) (6,806) (1,422,592) 3,000,000 (48,919) (458,506) (17,436) 2,475,145 341,605 3,647,762 5,754,218 9,401,980 – – – – – 7 Net cash provided by (used in) investing activities (10,001,573) （５）Notes to Consolidate Financial Statements （Notes on Assumption of a Going Concern） No applicable matter. （Change in Accounting Policies） periodic accounting of profit and loss since the new system started operation in the fiscal year under review. Previously, the Company’s raw material inventories were valued at cost using the first-in, first-out method, but effective from the fiscal year under review, the cost method has been changed to the moving-average method. （Change in inventory valuation method） This change is due to our judgment that inventory valuation by the moving average method is more appropriate for inventory valuation and The impact of this change is immaterial. Since it is practically impossible to perform the calculation using the moving average method for past fiscal years and it is impossible to calculate the cumulative effect of retrospective application, the book value at the end of the previous fiscal year is used as the beginning balance for the fiscal year under review. 11（Segment Information） （Per Share Information） [Segment information] The previous fiscal year (February 21, 2020 – February 20, 2021) and fiscal year under review (February 21, 2021 – February 20, 2022) The Group is engaged in the manufacture of general industrial machinery and equipment, including sanitary napkin manufacturing machinery and disposable diaper manufacturing machinery, as well as other businesses. However, segment information is omitted because other businesses account for only a small percentage of all segments and are not significant in terms of disclosure information. Item Net assets per share (yen) Earnings per share (yen) Diluted earnings per share (yen) Fiscal year ended February 20, 2021 Fiscal year ended February 20, 2022 1,041.69 61.69 61.35 (Note) 1. The basis for calculation of earnings per share and diluted earnings per share is as follows: 2. The Company conducted a 4-for-1 stock split of shares of common stock on August 21, 2020, and per share information is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. Fiscal year ended February 20, 2021 Fiscal year ended February 20, 2022 Earnings per share Profit attributable to owners of parent (thousand yen) Amount not attributable to common shareholders (thousand yen) Profit attributable to owners of parent related to common stock (thousand yen) Average number of shares of common stock during the period (shares) Diluted earnings per share Profit attributable to owners of parent (thousand yen Increase in common stock (shares) (of which stock acquisition rights (shares)) Summary of potential shares not included in the calculation of diluted earnings per share due to the lack of dilutive effect （Significant Subsequent Events） No applicable matter. （Additional Information） 1,620,518 ― 1,620,518 26,269,238 ― 146,965 (146,965) ― (Note) The Company conducted a 4-for-1 stock split of shares of common stock on August 21, 2020, and per share information is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. （Accounting estimate for the impact of COVID-19） Group. Although it is difficult to accurately predict when COVID-19 will come under control, the Group makes accounting estimates for the impairment of non-current assets and the recoverability of deferred tax assets based on information and forecasts currently available to the 1,138.92 66.07 65.71 1,736,696 ― 1,736,696 26,283,962 ― 146,978 (146,978) ― 12４．Other Net Sales, Orders Received, and Backlogs by Product (consolidated) By product Fiscal year ended February 20, 2021 Fiscal year ended February 20, 2022 （thousand yen） Change Sanitary napkin mfg. machinery 3,019,739 3,754,540 734,800 Baby disposable diaper mfg. machinery 9,567,620 11,118,162 1,550,542 Adult disposable diaper mfg. machinery 4,568,107 (1,198,813) Net sales Other machinery 1,615,216 2,038,061 486,733 3,597,435 2,038,061 486,733 3,214,861 8,982,678 (635,637) 16,810 25,641 493,342 461,430 779,449 16,810 25,641 (101,489) 744,732 23,087,478 23,580,821 Sanitary napkin mfg. machinery 3,191,619 3,653,050 Baby disposable diaper mfg. machinery 10,833,916 11,862,894 1,028,978 Adult disposable diaper mfg. machinery 3,299,133 (4,441,730) Orders Other machinery 27,066,730 24,937,309 (2,129,420) Sanitary napkin mfg. machinery Baby disposable diaper mfg. machinery Adult disposable diaper mfg. machinery 3,976,165 (1,268,974) Backlogs Other machinery 3,149,747 1,982,219 ― ― ― ― 17,966,963 19,323,452 1,356,488 Parts Other Total Parts Other Total Parts Other Total 5,766,921 2,250,854 2,021,251 461,091 7,740,863 2,817,986 2,021,251 461,091 3,316,350 8,237,945 5,245,139 1,167,528 ― ― 13