ブイ・テクノロジー（7717） – Summary of Financial Results 2022

Consolidated Financial Statements for Fiscal Year Ended March 31, 2022 〔under Japanese GAAP〕 May 13, 2022 Registered Company Name: V-Technology Co., Ltd. Code Number: 7717, Tokyo Stock Exchange URL: https://www.vtec.co.jp Representative: Shigeto Sugimoto (President & CEO) Contact: Shogo Yoshimura (Leader of IR Group, Office of the President) TEL: 045-338-1980 Planned Date for annual general shareholder’s meetng: June 28, 2022 Planned Date for Submission of the Securities Report: June 29, 2022 Planned Date for Start of Dividend Payment: June 29, 2022 Supplementary materials for the financial statements: Yes Briefing session on financial results: Yes(for institutional investors) 1. Business Performance(April 1, 2021 through March 31, 2022) (1) Consolidated Results of Operations (Amounts less than one million yen have been omitted.) YoY(%)△ 6.8△ 17.3△ 14.219.5‐△ 10.9 ‐‐‐‐‐‐12 months ended March 31 ,2021 March 31 ,2022YoY(%)55,1866,6046,8363,5133635,022363-12912△ 941.616.811.18.1‐29.4‐‐‐‐‐‐51,4185,4615,8684,1984344,476434-13811△ 64As ofAs ofMarch 31 ,2021 March 31 ,202280,59132,91538.8 ％3,233.74 Yen31,26872,60134,54047.1 ％3,534.40 Yen34,17512 months endedMarch 31 ,202120,173△ 1,2511,97233,158March 31 ,20221,374△ 1,521△ 5,83927,778Net profit attributable to owners of the parent (Millions of Yen)Net sales (Millions of Yen)Operating profit (Millions of Yen)Ordinary profit (Millions of Yen)Net profit per share (Yen)*Notes: Comprehensive IncomeNet profit per share (Yen)Diluted net profit per share (Yen)Return (net profit) on equity (%)Return (ordinary profit) on assets (%)Return (operating profit) on sales (%)*Reference: Income or loss on investments(Million JPY):(2) Consolidated Financial Position Total assets (Millions of Yen) Net assets (Millions of Yen) Equity ratioNet assets per share*Reference: Shareholders’ equity (Millions of Yen) (3) Consolidated Cash Flows Cash flows from operating activities (Millions of Yen)Cash flows from investing activities (Millions of Yen)Cash flows from financing activities (Millions of Yen)Year end balance of cash and cash equivalents (Millions of Yen) 2. Dividends 3. Forecast for the Fiscal Year ending March 31, 2022 (April 1, 2021 through March 31, 2022) (%: Changes from corresponding period of previous fiscal year) 45,000 △ 12.54,500 △ 17.64,400 △ 25.02,900 △ 30.9299.92ーNet sales (Millions of Yen)Operating profit (Millions of Yen)Ordinary profit (Millions of Yen)Net profit attributable to owners of the parent (Millions of Yen)Net profit per share (Yen) (1) Changes in significant subsidiaries during the nine months ended March 31, 2022 (Changes in certain subsidiaries resulting in change in the scope of consolidation): None (2) Changes in accounting policies, Changes in accounting estimates, or Restatement a. Changes in accounting policies due to changes in accounting standards: Yes b. Changes other than “a.” above: None c. Changes in accounting estimates: None d. Restatements: None (3) Number of Shares Outstanding (Common stock) 1. Number of shares outstanding at end of year (Including treasury stock)2. Number of treasury shares at end of yearAs of March 31,As of March 31,3. Average number of shares outstanding (Cumulative quarterly period)As of March 31,As of March 31,20222022202210,057,600388,1959,669,4442021:2021:202110,057,600388,1359,669,478 Number of sharesNumber of sharesAs of March 31,As of March 31, *Reference: Overview of non-consolidated performance (April 1, 2021 through March 31, 2022) (1) Non-consolidated operating results Net profit attributable to owners of the parent (Millions of Yen)Net sales (Millions of Yen)Operating profit (Millions of Yen)Ordinary profit (Millions of Yen)Net profit per share (Yen)Diluted net profit per share (Yen)(2) Non-consolidated financial position Total assets (Millions of Yen) Net assets (Millions of Yen) Equity ratioNet assets per share*Reference: Shareholders’ equity (Millions of Yen)Year ended(%: Changes from previous fiscal year)March 31 ,2021March 31 ,2021248,6156,4967,3175,411559.66ー%1.431.929.445.9ーー39,3664,2695,4473,791392.14ー%△ 19.0△ 34.3△ 25.6△ 29.9ーー As ofAs ofMarch 31 ,2021 March 31 ,2022 71,39830,38942.6 %3,142.19 Yen30,38364,88632,98050.8 ％3,410.78 Yen32,980 *Brief Report of Financial Results is not subject to an audit by a certified public accountant or an audit corporation. * The forward-looking statements in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be reasonable.Actual results may differ materially from these statements due to a variety of factors. For the assumptions underlying the forecasts and precautions regarding their use, please refer to “1. Operating Results (4) Outlook” on page 3 of the attached materials. (5)Basic Policy of Profit Sharing and Dividends for the Current and the Next Fiscal Years Index １．Outlook of Operating Performance and Financial Positionr (1)Outlook of Operating Performance (2)Outlook of Assets, Liabilities and Net Assets (3)Outlook of Cash Flows (4)Outlook of Consolidated Forecast and Other Forecasts 2．Basic Rationale for Section of Accounting Standards 3．Consolidated Financial Statements and Major Notes （1）Consolidated Balance Sheets （2) Consolidated Statements of Income (3) Consolidated statement of shareholders’ equity (4) Consolidated Statements of Cash Flows (5) Notes on Consolidated Financial Statements 5~7 5~6 6~7 6 7 7 7 8~19 8~9 10~11 10 11 11~13 14~15 16~19 16 16 16 16 19 19 17~18 １．Outlook of Operating Performance and Financial Position (1) Outlook of Operating Performance During the consolidated fiscal year under review, the global economy as a whole showed a gradual recovery trend as “the new normal” progressed. However, the worsening situation in Ukraine, the impact of the “quantitative tightening” policy of the U.S. on the economies of various countries, the deadlock in China’s “zero-corona policy” and the start of lockdowns in major cities, and other factors further increased uncertainty about the future of the global Consolidated net sales for the fiscal year were 51,418 million yen (compared to net sales of 55,186 million yen for the same period last year), operating income was 5,461 million yen (compared to operating income of 6,604 million yen for the same period last year), and ordinary income was 5,868 million yen (compared to ordinary income of 6,836 million yen for the same period last year), and net income attributable to owners of the parent was 4,198 million yen (compared with net income attributable to owners of the parent of 3,513 million yen in the same period of the Orders received by the Group for the fiscal year totaled 53,200 million yen (36,980 million yen in the same period of the previous year), and the order backlog was 42,721 million yen (40,939 million yen in the same period of the Segment results are as follows. The reporting segments have been changed since the current consolidated fiscal year, and the following year-on-year comparisons are based on the figures for the same period of the previous year, which have been reclassified into the segment categories after the change. economy. (Net Sales & Incomes) previous fiscal year). (Orders &Backlogs) previous year). Business Segments (FPD Business) In the flat panel display (FPD) equipment business, capital investment in FPDs was made mainly in in China. As a result, orders received by the Group’s FPD business during the fiscal year were 43,965 million yen (31,405 million yen in the same period of the previous year), and the order backlog was 36,093 million yen (35,511 million yen in the same period of the previous year). As for the consolidated results of the FPD business of the Group for the fiscal year, net sales were 43,375 million yen (52,941 million yen in the same period of the previous year) , and operating income was 5,103 million yen (6,752 million yen in the same period of the previous year). (Semiconductor Business) expansion of existing plants. In the semiconductor equipment business, capital investment related to silicon wafers was firm against the backdrop of a global shortage of semiconductors, and business negotiations continued for the As a result, orders in the semiconductor business during the fiscal year totaled 9,137 million yen (compared with 5,427 million yen in the same period of the previous fiscal year), and the order backlog was 6,627 million yen (5,427 million yen in the same period of the previous fiscal year). Regarding the consolidated results of the our Group’s semiconductor business for the fiscal year, net sales were 7,679 million yen (2,441 million yen in the same period of the previous fiscal year), and operating income was 553 million yen (2 million yen in the same period of the previous fiscal year). (2) Outlook of Assets, Liabilities and Net Assets 1. Assets As of March 31, 2022, Total current assets amounted 63,085 million yen ,down 8,294 million yen from the previous fiscal year.This is mainly attributed to a 5,380 million yen decrease in “ Cash and deposits ” and a 4,548 million yen decrease in “Work in process”. Non-current assets increased by 304 million yen from the end of the previous consolidated fiscal year to 9,516 million yen. Contributing factors were a 673 million yen increase in “Construction in progress” and a 467 million yen increase in “Investments in securities”. As a result, total assets decreased overall by 7,990 million yen compared to the previous fiscal year-end to 72,601 million yen. As of March 31, 2022, Total current liabilities amounted to 27,061 million yen, down 7,134 million yen from the previous fiscal year. This is mainly attributed to a 6,726 million yen decrease in “Advances received”. Total non-current liabilities amounted to 10,999 million yen, up 2,480 million yen from the previous consolidated fiscal year. This is mainly attributed to a 2,720 million yen increase in “Long-term borrowings”. As a result, total Liabilities decreased overall by 9,615 million yen compared to the previous fiscal year-end to 2. Liabilities 38,060 million yen. 3. Net Assets As of March 31, 2022, total net assets amounted to 34,540 million yen, up 1,625 million yen from the previous consolidated fiscal year ended March 31, 2021. This is mainly attributed to a 2,850 million yen increase in “ retained earnings ” and a 1,276 million yen increase in “Non-controlling interests”. (3)Outlook of Cash Flows Cash and cash equivalents (collectively, “Cash”) at the the fiscal year ended March 31, 2022 decreased by 5,380 million yen compared to the end of the previous fiscal year, to 27,778million yen. The following is a summary of each cash flow situation. 1. Net cash provided by operating activities Net cash provided by operating activities amounted to 1,374 million yen(the same period last year: provided 20,173 miliion). The major positive factors were a 6,450 million yen increase in“ Net income before adjustment for taxes, etc. ”, a 5,139 million yen decrease in “ inventories ” and an 1,351 million yen increase in “Depreciation”. The major negative factors were a 7,352 million yen decrease in “Advances received”, a 3,687 million yen decrease in “Corporate tax expense”. 2. Net cash used in investing activities Net cash used in investing activities amounted to 1,521 million yen(the same period last year: used 1,521 miliion yen). These were mainly due to an income of 886 million yen for a sale of fixed assets and a payment of 2,048 million yen for Acquisition of tangible fixed assets. 3. Net cash provided by financing activities non-controlling interests. Net cash provided by financing activities amounted to 1,974 million yen(the same period last year provided 4,074 miliion yen). The major positive factor was a 3,694 million yen increase in “Long-term borrowings”. The major negative factors were a payment of 974 million yen for dividends paid and a payment of 821 million yen for dividends paid to (4) Explanation of Consolidated Forecast and Other Forecasts We expect our semiconductor business, led by our group subsidiaries, to make great strides against the backdrop of the robust semiconductor market. On the other hand, the spread of coronavirus infection in China and the continuation of the “Zero Corona Policy” are having an adverse impact on plant closures and logistics, and we expect some projects for the fiscal year ending March 2023 to be delayed.Under such circumstances, we expect 45,000 million yen in net sales (△12.5% YoY), 4,500 million yen in operating profit (△17.6% YoY), 4,400 million yen in ordinary profit (△25.0% YoY) and 2,900 million yen in profit attributable to owners of the parent (△30.9% YonY). Exports of FPD equipment, the Company’s main product line, are mainly denominated in yen. Some transactions are denominated in foreign currencies, the Company hedges the risk of exchange rate fluctuations by entering into forward exchange contracts at the time of order receipt, as necessary. Therefore, the impact of exchange rate fluctuations on business is expected to be negligible. *Above forecasts for next fiscal year were prepared based on information available at this time. Therefore, actualresults may be affected by a number of important factors involving various risks and uncertainties and materiallydifferent from those discussed in forward-looking statements. (5）Basic Policy of Profit Sharing and Dividends for the Current and the Next Fiscal Years Our basic policy on profit sharing and dividends is to attempt stable and continuous profit distribution according to our operating results. We also consider securing appropriate internal reserves in order to accomplish future business expansion through such as M&A, capital investment, R&D investment, and reinforcement of our management. Based on this policy, we plan to pay a dividend of \ 60.00 per share (120.00 yen per year, including an interim dividend of 60.00 yen) for the year-end dividend for the fiscal year ending March 2021. For the next fiscal year, we plan to pay a dividend of 120.00 yen per share per year. Fiscal YearInterim (Yen)Year-end (Yen)Anual dividends per share (Yen)(Year ended)(Current)March 31 2021 March 31 202260.0060.00120.0060.00 (Forecast)60.00 (Forecast)120.00 (Forecast) ２．Basic Rationale for Section of Accounting Standards In order to ensure comparability with domestic peer companies, we apply Japanese standards for accounting standards. Regarding the application of IFRS, we are considering it appropriately and taking into consideration various domestic and international situations. – 7 – 3．Consolidated Financial Statements and Major Notes （1）Consolidated Balance Sheets As of March 31, 2021 As of March 31, 2022 (Millions 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 Accumulated depreciation Buildings, net Machinery and equipment Accumulated depreciation Machinery and equipment, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Goodwill Patent right Other Total intangible assets Investments and other assets Shares of subsidiaries and associates Investment securities Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets – 8 – 33,278 19,329 51 196 13,977 1,783 3,158 △396 71,379 799 △329 470 6,074 △3,811 2,263 2,386 △1,760 626 63 953 17 △12 5 4,382 1,104 37 483 1,625 1,167 193 1,306 560 △23 3,203 9,212 80,591 27,898 19,537 246 176 9,428 1,801 4,500 △503 63,085 992 △392 600 5,160 △3,649 1,510 2,332 △1,853 479 495 1,627 21 △14 7 4,720 930 25 540 1,495 1,002 660 1,018 650 △31 3,300 9,516 72,601 As of March 31, 2021 As of March 31, 2022 (Millions of yen) 6,477 5,264 120 2,796 818 2,288 15,061 373 634 19 340 34,195 12,964 6 224 136 79 68 13,480 47,676 2,847 2,977 27,262 △1,916 31,172 6 89 96 5 1,641 32,915 80,591 6,323 4,546 394 2,911 724 767 8,334 386 2,041 82 547 27,061 10,243 7 372 140 156 78 10,999 38,060 2,847 2,503 30,113 △1,916 33,548 79 546 626 (cid:695) 365 34,540 72,601 Liabilities Current liabilities – obligations recorded Notes and accounts payable – trade Electronically operating Short-term borrowings Current portion of long-term borrowings Accounts payable – other Income taxes payable Advances received Provision for bonuses Provision for product warranties Provision for loss on orders received Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Retirement benefit liability Asset retirement obligations Provision for share awards 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 Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets – 9 – (Millions of yen) Fiscal year ended Fiscal year ended March 31, 2021 March 31, 2022 （2) Consolidated Statements of Income Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest and dividend income Subsidy income Gain on donation Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Share of loss of entities accounted for using equity method Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Other Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on retirement of non-current assets Impairment losses Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 55,186 39,481 15,704 9,100 6,604 22 138 74 122 38 395 54 94 271 28 299 0 78 (cid:695) 3 82 14 163 6,836 7,054 3,049 △587 2,462 4,592 1,078 3,513 – 10 – 51,418 35,932 15,486 10,024 5,461 30 30 (cid:695) 354 102 518 42 64 834 17 852 (cid:695) 19 238 12 269 5 111 5,868 6,450 1,849 345 2,194 4,255 57 4,198 (Millions of yen) Fiscal year ended Fiscal year ended March 31, 2021 March 31, 2022 Profit 4,592 423 430 5,022 3,866 1,156 Other comprehensive income Valuation difference on available-for-sale securities 7 Foreign currency translation adjustment Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (3) Consolidated statement of shareholders’ equity Year ended March 31, 2021 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Other Net changes in items other than shareholders’ equity Total changes during period (cid:695) 3 3 △974 3,513 △210 1 Balance at end of period 2,847 2,977 2,330 27,262 210 △1,916 4,255 72 148 221 4,476 4,353 123 △512 723 △974 3,513 △512 512 4 2,543 31,172 (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity 2,847 2,974 24,932 △2,126 28,628 – 11 – Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment comprehensive income Total Share Non-accumulated acquisition controlling other rights interests Total net assets △0 △335 △335 7 1,034 29,335 △100 △1,176 4,198 △0 △974 3,513 △512 512 4 1,036 3,580 equity 31,172 △100 △1,176 4,198 △0 (cid:695) △540 △4 2,477 33,548 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Other Net changes in items other than shareholders’ equity 7 Total changes during period 7 Balance at end of period 6 Year ended March 31, 2022 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Transfer from retained earnings to capital surplus Change in ownership interest of Net changes in items other than shareholders’ equity Total changes during period (cid:695) Balance at end of period 2,847 424 424 89 431 431 96 △2 △2 5 606 606 1,641 32,915 Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ (Millions of yen) Balance at beginning of period 2,847 2,977 27,262 △1,916 Restated balance 2,847 2,977 27,161 △1,916 31,071 68 △68 parent due to transactions with △540 non-controlling interests Other △2 △2 △474 2,503 2,951 30,113 △0 △1,916 – 12 – Accumulated other comprehensive income Valuation Foreign difference on currency available-for-translation sale securities adjustment Share acquisition rights accumulated Total other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 6 89 96 1,641 32,915 Restated balance 6 89 96 1,641 32,814 5 5 △100 △1,176 4,198 △0 (cid:695) △540 △4 457 457 546 530 530 626 △5 △5 (cid:695) △1,276 △751 △1,276 1,725 365 34,540 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Transfer from retained earnings to capital surplus Change in ownership interest of parent due to transactions with non-controlling interests Other Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 72 72 79 – 13 – （4) Consolidated Statements of Cash Flows Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen)Cash flows from operating activities (decrease) for doubtful in allowance Profit before income taxes Depreciation Amortization of goodwill Impairment losses Loss (gain) on sale of investment securities Increase accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for product warranties Gain on reversal of share acquisition rights Increase (decrease) in retirement benefit liability Increase (decrease) in provision for loss on orders received Increase (decrease) in provision for share awards Interest and dividend income Interest expenses Loss on sale of notes receivable – trade Foreign exchange losses (gains) Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of property, plant and equipment Loss on retirement of property, plant and equipment Loss (gain) on sale of intangible assets Loss on retirement of intangible assets Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in other current assets Decrease (increase) in other non-current assets Increase (decrease) in trade payables Increase (decrease) in advances received Increase (decrease) in other current liabilities Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Income taxes refund Net cash provided by (used in) operating activities 7,054 1,855 250 (cid:695) △25 103 △0 △139 △2 27 △50 79 △22 54 0 △27 94 0 78 △271 0 5,507 9,021 1,711 41 △1,384 △3,308 △23 3 20,629 22 △55 △1,004 580 20,173 6,450 1,351 372 238 △1 100 △8 67 △5 12 62 76 △30 42 0 △209 64 △496 19 △338 1 △364 5,139 △655 △15 542 △7,352 1 0 5,066 30 △40 △3,687 39 1,408 – 14 – (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from investing activities Purchase of investment securities Proceeds from sale of investment securities Purchase of shares of subsidiaries and associates Purchase of shares of subsidiaries resulting in change in scope of consolidation Proceeds from purchase of shares of subsidiaries resulting in change in scope of consolidation Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Proceeds from sale of intangible assets Short-term loan advances Proceeds receivable Other proceeds Other payments from collection of short-term loans Net cash provided by (used in) investing activities Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from issuance of shares Purchase of treasury shares Proceeds from disposal of treasury shares Dividends paid Purchase of shares of subsidiaries not resulting in change in scope of consolidation Dividends paid to non-controlling interests 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 △208 105 (cid:695) (cid:695) 129 △1,460 (cid:695) △137 322 △21 21 (cid:695) △1 △1,251 7,270 △7,430 7,262 △3,567 234 △512 512 △974 (cid:695) △821 1,972 283 21,177 11,981 33,158 △200 10 △402 △132 (cid:695) △2,048 886 △176 400 △3 117 4 △9 △1,554 520 △301 (cid:695) △2,968 170 △0 (cid:695) △1,176 △1,000 △1,083 △5,839 605 △5,380 33,158 27,778 – 15 – （5) Notes on Consolidated Financial Statements Not applicable Not applicable Application of Accounting Standard for Revenue Recognition, etc. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020, hereinafter referred to as the “Accounting Standard for Revenue Recognition”) from the beginning of the current first quarter, The Company will recognize revenue at the amount it expects to receive in exchange for the promised goods or services when control of the goods or services is transferred to the customer. The Group is mainly engaged in the sale of products such as FPD manufacturing equipment and inspection equipment, etc. For products that require installation at the time of delivery to the customer, the Group previously recognized revenue by defining “post-installation confirmation of operation” as the time when the transfer of goods or completion of services and the establishment of consideration are confirmed, but the Group has changed its method of recognizing revenue by identifying performance obligations based on contracts with customers and defining “completion of installation” as the time when the performance obligations are satisfied. In addition, effective from the first quarter of the current fiscal year, a portion of personnel expenses and other costs that were previously recorded as cost of sales are now recorded as selling, general and administrative expenses.This is due to a review of the scope of cost aggregation as a result of examining the positioning of costs related to performance obligations related to equipment sales, triggered by the application of the “Accounting Standard for Revenue Recognition” from the first quarter of the current fiscal year. For the application of the revenue recognition accounting standard, etc., the Company follows the transitional treatment prescribed in the proviso of paragraph 84 of the revenue recognition accounting standard. Then, the cumulative effect of retrospective application of the new accounting policy prior to the beginning of the first quarter of the current fiscal year is added to or deducted from retained earnings at the beginning of the first quarter of the current fiscal year, and the new accounting policy is applied from the relevant beginning balance. As a result, net sales for the first quarter of the current fiscal year decreased by 822 million yen, cost of sales decreased by 852 million yen, selling, general and administrative expenses increased by 237 million yen, and operating income, ordinary income and income before income taxes and minority interests decreased by 207 million yen respectively. In addition, the balance of retained earnings at the beginning of the period decreased by 100 million In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification has been made for the previous fiscal year using the new presentation method. In addition, in accordance with the transitional treatment prescribed in Paragraph 28-15 of the “Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on revenue from contracts with customers for the first quarter of the previous fiscal year has not been broken down. Application of Accounting Standards for Calculation of Fair Value, etc. The “Accounting Standard for Measurement of Fair Value” (ASBJ Statement No. 30, July 4, 2019; hereinafter referred to as the “Accounting Standard for Measurement of Fair Value”) has been adopted from the beginning of the current first quarter. In accordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard for Market Value Measurements and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the new accounting policies prescribed by the Accounting Standard for Market Value Measurements, etc. will be applied prospectively. – 16 – yen. 【Segments Information】 1. Overview of Reportable Segments The Group’s reportable segments provide separate financial information of the Group’s constituent units. The Board of Directors regularly reviews them to determine the allocation of management resources and evaluate The Group consists of industry segments based on the Company and its consolidated subsidiaries. The two reportable segments are “FPD business” and “Semiconductor business. The overview of each reportable their performance. segment is as follows. (FPD Business) evaporation masks for OLEDs. (Semiconductor Business) The FPD business develops, designs, manufactures, sells, and provides related services for manufacturing equipment, inspection equipment, and photomask equipment, as well as materials and components, including The semiconductor business develops, designs, manufactures, sells, and provides related services for manufacturing equipment, inspection equipment, and equipment for photomasks. 2. Method of calculating sales, profit or loss, assets, liabilities, and other items by reportable segment The accounting method of reportable segments is in accordance with the accounting policies adopted to prepare consolidated financial statements. Income of reportable segments is based on operating income. Inter-segment revenues and transfers are based on prevailing market prices. – 17 – 3. Information on net sales, income or loss, assets, liabilities and other items by reportable segment I Previous Consolidated Financial Year (from April 1, 2020 to March 31, 2021)Reportable segmentsFPDSEMIbusinessbusinessTotalOther(*1)Adjustment(*2)(Unit: Million JPY)Amount recorded inconsolidated financialstatements(*3)SalesSales to external customersIntersegment sales and transfersTotalSegment profit (△loss)52,9411152,9526,7522,2412,411-255,1831155,1946,7553-3△ 151△ 11△ 11₋₋55,186₋55,1866,604*1 “Other” is a business segment not included in the reportable segments and includes OLED lighting, etc.*2 ”Adjustment” represents elimination of intersegment transactions.*3 Segment income (loss) is adjusted with operating income in the consolidated financial statements.II Previous Consolidated Financial Year (from April 1, 2020 to March 31, 2021)Reportable segmentsFPDSEMIbusinessbusinessTotalOther(*1)Adjustment(*2)(Unit: Million JPY)Amount recorded inconsolidated financialstatements(*3)SalesSales to external customersIntersegment sales and transfersTotalSegment profit (△loss)43,3754243,4175,1037,679-7,67955351,0544251,0975,656363-363△ 194△ 42△ 42₋₋*1 “Other” is a business segment not included in the reportable segments and includes OLED lighting, Agriculture business and so on.*2 ”Adjustment” represents elimination of intersegment transactions.*3 Segment income (loss) is adjusted with operating income in the consolidated financial statements.51,418₋51,4185,461 4. Matters concerning changes in reportable segments, etc. In accordance with the quantitative criteria, the Company’s reportable segment was changed to “FPD business” only, and the segment information was omitted. In the current consolidated fiscal year, the quantitative importance of the semiconductor business has increased. We have changed our reportable segments into two segments, “FPD business” and “Semiconductor business. Information on business segments not included in the reportable segments was disclosed as “Other. Segment information for the previous fiscal year has been restated in accordance with the new reportable Business segments that are generally similar in terms of markets, types of customers, and services are segment classifications. aggregated. – 18 – Net assets per share (JPY)Net profit per share (JPY)Diluted net profit per share (Yen)Note1. Diluted net income per share is not shown because there are no dilutive securities.2. The basis for calculating net assets per share is as followsTotal net assets（Millions of JPY） Deduction from total net assets（Millions of JPY） （Share acquisition rights（Millions of JPY）） （Non-controlling interests（Millions of JPY）） Year-end net assets related to commonstock（Millions of JPY）Year-end common stock used for thecalculation of net assets per share(shares) 9,669,465 3. The basis for calculating net income per share is as followsNet income attributable to owners of the parent (Millions of yen) Deduction from total net assets（Millions of JPY）Amount not attributable to common shareholders (Millions of yen)Net income attributable to owners of the parent related to common stock(Millions of yen)Diluted net income per share is not disclosed because there is no dilutive effect.Fiscal year endedMarch 31 ,2021March 31 ,20229,669,4786,669,4444.The Company’s shares remaining in the trust, which are recorded as treasury stock in the net assets section, are included intreasury stock deducted in the calculation of the average number of shares during the period for the purpose of calculating netincome per share. The average number of shares of treasury stock deducted in the calculation of net income per share was132,000 shares for the fiscal year ended March 31, 2021 and 2022.Fiscal year endedMarch 31 ,2021March 31 ,20223,233.74363.41-3,534.40434.21-Fiscal year endedMarch 31 ,2021March 31 ,202232,9151,647(5)(1,641)31,2683,5133,513–34,540365-(365)34,1759,669,40534,5404,198– None – 19 –