イビデン（4062） – Notice of the 169th Ordinary General Meeting of Shareholders

Notice of the 169th Ordinary General Meeting of Shareholders Date & Time: 2:00 p.m. (JST), Friday, June 17, 2022 Venue: IBIDEN Co., Ltd. Headquarters Conference Room (the 2nd floor), 2-1 Kanda-cho, Ogaki-city, Gifu Pref. Agenda: Matters to be reported: (1) Business Report and Consolidated Financial Statements, and Audit Reports by the Accounting Auditors and the Audit and Supervisory Committee on the Consolidated Financial Statements, for the 169th Fiscal Year from April 1, 2021 to March 31, 2022 (2) Financial Statements for the 169th Fiscal Year from April 1, 2021 to March 31, 2022 Matters to be resolved: Proposal 1: Partial Amendments to the Articles of Incorporation Proposal 2: Election of Seven (7) Directors who are not Audit and Supervisory Committee Members Company’s Website: https://www.ibiden.co.jp/ If there is any minor amendment to the “Reference Materials for General Meeting of Shareholders,” “Business Report,” “Financial Report” and/or “Consolidated /Non-consolidated Financial Statements,” such amendment will be posted on the Company’s website indicated above. Additionally, pursuant to the Japanese laws and regulations and Article 15 of the Company’s, “Items related to Corporate Director (6) Outside Corporate Director,” “Company Structure and Company Policy” of Business Report, “Consolidated Financial Statements of Changes in Net Assets” and “Notes to Consolidated Financial Statements of Change in Net Assets” of Consolidated Financial Statements, and “Statements of Changes in Net Assets” and “Notes to Non-Consolidated Financial Statements” of Financial Statement will be posted on the website above, and thus not included in the documents accompanying the Notice of the 169th Ordinary General Meeting of Shareholders. Moreover, these items will be audited by the Accounting Auditors, and Audit and Supervisory Committee. This document is an English translation of the Notice of the 169th Ordinary General Meeting of Shareholders originally prepared in Japanese. This English translation is for general reference purposes only and is subject to errors and omissions. All information contained herein is deemed accurate, but is not guaranteed. ―1― Proposal 1 Partial Amendments to the Article of Incorporation 1. Reasons for the amendments The amendment provided in the proviso to Article 1 of the Supplementary Provisions of the Act Partially Amending the Companies Act (Act No. 70 of 2019) will be enforced on September 1, 2022. In order to prepare for the implementation of an electronic provision system of materials for the General Meeting of Shareholders, the Company proposes to amend the Articles of Incorporation of the Company as follows: (1) The proposed Article 15, Paragraph 1 provides that an electronic provision measure shall be taken for information that constitutes the contents of the reference documents, etc., for the General Meeting of Shareholders. (2) The proposed Article 15, Paragraph 2 is a new provision to limit the scope of matters to be described in written documents to be delivered to shareholders who request delivery of written documents. (3) The provision for disclosure via the Internet of reference documents for the General Meeting of Shareholders, etc. and deemed provision thereof (current Article 15 of the Articles of Incorporation) is deleted as it will become unnecessary. (4) As a result of the foregoing new provisions and deletion, supplementary provisions concerning the effective Underlined texts are to be amended Proposed Amendments (Eliminated) date, etc., are added. 2. Contents of the Amendment The amendments to the Articles of Incorporation are as follows. Current Articles of Incorporation Article 15: Online Disclosure of Reference Documents for General Meeting of Shareholders and Deemed Provision The Company may deem that it has provided shareholders with information relating to matters to be described or indicated in reference documents for a General Meeting of Shareholders, business reports, financial statements, and consolidated financial reports, by disclosing such information via the Internet, in accordance with the provision of Ordinance of the Ministry of Justice. (Newly established) Article 15: Measures for Electronic Provision, etc. On convening a General Meeting of Shareholders, the Company shall provide the contents of the reference documents, etc. for the General Meeting of Shareholders in an electronic format. 2. The Company is permitted to not describe, in whole or in part, the matters to be provided by taking electronic provision measures, as stipulated in Ministry of Justice ordinances, in documents to be delivered to shareholders who requested delivery of said documents by the record date of voting rights. ―2― Current Articles of Incorporation Supplementary provisions Transitional Measure Concerning Limited Liability Agreement with Outside Statutory Auditors (Text omitted) Proposed Amendments Supplementary provisions Article 1: Transitional Measure Concerning Limited Liability Agreement with Outside Statutory Auditors (Unchanged) (Newly established) Article 2: Transitional Measures Concerning Electronic Provision Measures, etc. The deletion of Article 15 of the Articles of Incorporation “Online Disclosure of Reference Documents for General Meeting of Shareholders and Deemed Provision” and the establishment of Article 15 of the Articles of Incorporation after the amendment shall come into effect on September 1, 2022, the date on which the amendment provision as stipulated in Article 1, proviso, of the Supplementary Provisions of the “Act for Partial Amendment of the Companies Act” (Act No. 70 of 2019) shall be put into force. 2. Notwithstanding the provisions of the preceding Article, Article 15 of the current Articles of Incorporation prior to the amendment shall remain in force with respect to the General Meeting of Shareholders to be held on a date within six (6) months from September 1, 2022. 3. These supplementary provisions shall be deleted after the later of the date six months after September 1, 2022 or the date three (3) months after the date of the General Meeting of Shareholders mentioned in the preceding paragraph. ―3― Proposal 2 Election of Seven (7) Directors who are not Audit and Supervisory Committee Members The terms of office of all seven (7) current Directors will expire at the conclusion of the Ordinary General Meeting of Shareholders. Accordingly, it is proposed that seven (7) Members of the Board of Directors who are not Audit and Supervisory Committee Members be elected. The candidates for the Directors who are not Audit and Supervisory Committee Members are as follow: The brief personal information for respective candidates is referred to Page 5 through 9. Candidate Number Name Positions and Responsibilities 1 Reassignment Takeshi AOKI 2 Reassignment Kozo KODAMA 3 Reassignment Masahiko IKUTA Attendance at the Board of Directors’ Meeting in 2021 Years of Service 12/12 times (100%) 9 years 12/12 times (100%) 7 years 12/12 times (100%) 4 years President & CEO, Representative Director, Administrator of Corporate Business Operation and R&D Operation Officer Executive Vice President, Representative Director, Quality Unit Officer, Engineering Unit Officer, Production Unit Officer, GX Promotion Officer, President of Strategic Manufacturing Operation, Energy Control Unit Officer and Internal Audit Division Officer Executive Vice President, Representative Director, Deputy Administrator of Corporate Business Operation, DX Promotion Officer, IR Officer and President of Strategic Corporate Planning Operation Senior Executive Officer, Electronic Business Officer and President of PKG Operation 4 New Koji KAWASHIMA – – 5 Reassignment Chiaki YAMAGUCHI Candidate of Outside Director Candidate of Independent Director 12/12 times (100%) 8 years 6 Reassignment Toshio MITA Candidate of Outside Director Candidate of Independent Director 12/12 times (100%) 5 years 7 Reassignment Noriko ASAI Candidate of Outside Director Candidate of Independent Director 12/12 times (100%) 2 year ―4― Reassignment Numbers of the Company’s Shares Owned 72,300 Including Numbers of the Company’s Shares Granted on Stock Compensation Plan 41,000 Candidate Number 1 Takeshi AOKI Date of Birth: February 4, 1958 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held Joined IBIDEN Co., Ltd. April 1981 April 2008 Corporate Officer June 2013 Director & Corporate Officer April 2014 Director & Managing Officer April 2017 Administrator of Corporate Business Operation (present), Ceramics Business Officer June 2017 President & CEO, Representative Director (present) June 2018 R&D Operation Officer (present) April 2019 Corporate Executive Director of March 2016 Executive Vice President, Internal Audit Division Representative Director President of Ceramics Operation Reasons for his/her Nomination as a Candidate Mr. Takeshi AOKI has wide-range knowledge as President & CEO, Representative Director of the Company and abundant experience in business operation of the Company. As the Company judges that he has sufficient knowledge and experience that enable him to make decision on the execution of important business for the Company and to supervise the execution of duties by directors, we nominate him as a candidate of Director of the Company. Expected Expertise Company Management, Business Strategy, Wide-Range Knowledge of the Company Business, International Business, Innovation, Internal Control and Corporate Governance Kozo KODAMA Date of Birth: March 23, 1963 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held Candidate Number 2 Joined IBIDEN Co., Ltd. April 1986 April 2012 Corporate Officer Vice President of IBIDEN Philippines Inc. June 2015 Director & Managing Officer March 2016 Executive Vice President, Representative Director (present) April 2017 President of Corporate Reassignment Numbers of the Company’s Shares Owned 49,900 Including Numbers of the Company’s Shares Granted on Stock Compensation Plan 28,000 Strategic Manufacturing Operation (present), Officer of CSR Promotion Division and Energy Control Unit Officer April 2021 April 2022 February 2018 June 2018 December 2018 President of MLB Chairman of IBIDEN Electronics Malaysia SDN.BHD. Quality Unit Officer, Engineering Unit Officer and Production Unit Officer (present) Operation, President of IBIDEN Electronics Beijing Co., Ltd. DX Promotion Unit Officer, Energy Control Unit Officer (present) GX Promotion Unit Officer (present), Internal Audit Division Officer (present) Reasons for his/her Nomination as a Candidate Mr. Kozo KODAMA has wide-range knowledge as a Representative Director of the Company, deep knowledge in Technology and Production Operations and experience in affiliating overseas production companies. As the Company judges that he has sufficient knowledge and experience that enable him to make decision on the execution of important business for the Company and to supervise the execution of duties by directors, we nominate him as a candidate of Director of the Company. Expected Expertise Engineering, Manufacturing, Risk Management, Internal Control and Corporate Governance ―5― Reassignment Numbers of the Company’s Shares Owned 45,600 Including Numbers of the Company’s Shares Granted on Stock Compensation Plan 21,000 Candidate Number 3 Masahiko IKUTA Date of Birth: August 19, 1962 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held April 1985 April 2010 October 2013 President of Strategic Joined IBIDEN Co., Ltd. Corporate Officer Corporate Planning Operations (present) IR Officer (present), FGM Business Officer Director & Managing Officer June 2014 March 2016 Director & Executive April 2017 Managing Officer Affiliates and Subsidiaries Officer June 2017 Executive Managing Officer June 2018 April 2019 April 2020 April 2021 April 2022 Director & Executive Managing Officer PKG Business Officer Director & Senior Executive Officer Executive Vice President, Representative Director (present), Electronics Business Officer Deputy Administrator of Corporate Business Operation (present), DX Promotion Officer (present) Reasons for his/her Nomination as a Candidate Mr. Masahiko IKUTA has wide-range knowledge as a Representative Director of the Company and adequate experience in Strategic Corporate Planning Operation. As the Company judge that he has sufficient knowledge and experience that enable him to make decision on the execution of important business for the Company and to supervise the execution of duties by directors, we nominate him as a candidate of Director of the Company. Expected Expertise Company Management, Business Strategy, Financial/Accounting/Tax Practice, Internal Control and Corporate Governance New Numbers of the Company’s Shares Owned 29,400 Including Numbers of the Company’s Shares Granted on Stock Compensation Plan 11,000 Candidate Number 4 Koji KAWASHIMA Date of Birth: September 15, 1963 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held April 1987 Joined IBIDEN Co., Ltd. April 2008 Director April 2010 Corporate Officer, President of PKG Operation April 2014 Human Resources Director of Strategic Corporate Planning Operations March 2016 Executive Managing Officer April 2017 April 2019 April 2020 April 2022 President of Electronics Operation President of PKG Operation (present) Senior Executive Officer (present) Electronics Business Officer (present) Reasons for his/her Nomination as a Candidate Mr. Koji KAWASHIMA has wide-range knowledge as a Director of the Company and adequate experience in Electronics Operation with a special focus on IC package. As the Company judge that he has sufficient knowledge and experience that enable him to make decision on the execution of important business for the Company and to supervise the execution of duties by directors, we nominate him as a candidate of Director of the Company. Expected Expertise Company Management, Business Strategy, Wide-Range Knowledge of the Company Business, International Business, Engineering and Manufacturing, ―6― Reassignment Candidate of Outside Director Candidate of Independent Director Numbers of the Company’s Shares Owned 12,900 Candidate Number ５ Chiaki YAMAGUCHI Date of Birth: December 25, 1949 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held April 1972 Joined TOYOTA MOTOR CORPORATION June 2003 Full-time Corporate Auditor of TOYOTA MOTOR CORPORATION (retired on June 2011) June 2011 Executive Managing Director of Toyota Industries Corporation June 2012 Representative Director & Senior Vice President of Toyota Industries Corporation (retired on June 2015) June 2014 Outside Director of IBIDEN Co., Ltd. (present) June 2015 President & Representative Director of TOYOTA FUDOSAN CO., LTD., formerly Towa Real Estate Co., Ltd.(retired on June, 2018) Outside Director of Nakanihon KOGYO Co., Ltd. (retired on June 2019) June 2018 Contract Officer for Special Duties of TOYOTA MOTOR CORPORATION (present) Outside Auditor of Central Nippon Expressway Company Limited (present) Corporate Advisor of TOYOTA FUDOSAN CO., LTD., formerly Towa Real Estate Co., Ltd. (retired on June 2019) June 2019 Contract Officer for Special Duties of TOYOTA FUDOSAN CO., LTD., formerly Towa Real Estate Co., Ltd. as former President & Representative Director (present) Other Major Position Concurrently Held Contract Officer for Special Duties of TOYOTA MOTOR CORPORATION Contract Officer for Special Duties of TOYOTA FUDOSAN CO., LTD., formerly Towa Real Estate Co., Ltd. Outside Auditor of Central Nippon Expressway Company Limited Relation between his/her Major Concurrent Duty and the Company The Company has no special interest with his concurrent duties. Reasons and Expectation for his/her Nomination as a Candidate of Outside Director Mr. Chiaki YAMAGUCHI has extensive and wide-ranging experience and expertise, including those in relation to corporate management as Representative Director & Senior Vice President of Toyota Industries Corporation and President & Representative Director of TOYOTA FUDOSAN CO., LTD., formerly Towa Real Estate Co., Ltd. The Company proposes that Mr. Chiaki YAMAGUCHI be reelected as Outside Director and be delegated Chairman of Nomination/Remuneration Committee in expectation of the advice and supervision, which he will be able to provide. Expected Expertise Company Management, Business Strategy, Financial/Accounting/Tax Practice, International Business, Risk Management, Internal Control and Corporate Governance ―7― Candidate Number ６ Toshio MITA Date of Birth: November 2, 1946 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held April 1969 Joined Chubu Electric Power Co., Inc. June 2003 Managing Officer, Tokyo Office Manager of Chubu Electric Power Co., Inc. June 2005 Director, Senior Managing Executive Officer, President of Sales Company of Chubu Electric Power Co., Inc. Outside Auditor of NYK Line (retired on June 2019) June 2006 President & CEO of Chubu Electric Power Co., Inc. June 2007 President &CEO, Representative Director of Chubu Electric Power Co., Inc. June 2010 Chairman of the Board at Chubu Electric Power Co., Inc. June 2015 Advisor of Chubu Electric Power Co., Inc. June 2017 Outside Director of IBIDEN Co., Ltd. (present) June 2018 Outside Auditor of Nagoya Railroad Co., Ltd. (present) June 2019 Outside Auditor of Chubu-Nippon Broadcasting Co., Ltd.(present) July 2020 Corporate Advisor of Chubu Electric Power Co., Inc. (present) Other Major Position Concurrently Held Corporate Advisor of Chubu Electric Power Co., Inc. Outside Auditor of Nagoya Railroad Co., Ltd. Outside Auditor of Chubu-Nippon Broadcasting Co., Ltd. Relation between his/her Major Concurrent Duty and the Company The Company has no special interest with his concurrent duties. Reasons and Expectation for his/her Nomination as a Candidate of Outside Director Mr. Toshio MITA has extensive and wide-ranging experience and expertise, including those in relation to corporate management as President &CEO, Representative Director of Chubu Electric Power Co., Inc. The Company proposes that Mr. Toshio MITA be reelected as Outside Director and be delegated a member of Nomination/Remuneration Committee in expectation of the advice and supervision, which he will be able to provide. Expected Expertise Company Management, Business Strategy, Risk Management, Internal Control and Corporate Governance Reassignment Candidate of Outside Director Candidate of Independent Director Numbers of the Company’s Shares Owned 3,300 ―8― Reassignment Candidate of Outside Director Candidate of Independent Director Numbers of the Company’s Shares Owned 500 Noriko ASAI Date of Birth: July 25, 1964 Brief Personal History, Positions, Responsibilities and Significant Positions Concurrently Held Candidate Number ７ Assistant Instructor at the School of Economics of Nagoya April 1997 Nagoya University Ph.D. in Economics March 1999 Professor at the School of Management of Chukyo University April 2007 Outside Director of CKD Corporation (present) June 2015 Outside Director of IBIDEN Co., Ltd. (present) June 2020 Outside Director of Okuma Corporation (present) June 2021 October 2021 Guest Faculty Member of Graduate School /School of Economics of Nagoya University Other Major Position Concurrently Held Outside Director of CKD Corporation Outside Director of Okuma Corporation Guest Faculty Member of Graduate School /School of Economics of Nagoya University Relation between his/her Major Concurrent Duty and the Company The Company has no special interest with her concurrent duties. Reasons and Expectation for his/her Nomination as a Candidate of Outside Director Ms. Noriko ASAI has abundant and wide-ranging academic knowledge, expertise and experience in business economics with a special focus on production management as an academic expert even though she has not been directly involved in the management of corporation except being an Outside Director. The Company proposes that Ms. Noriko ASAI be reelected as an Outside Director and be delegated a member of Nomination / Remuneration Committee in expectation of the advice and supervision, which she will be able to provide. Expected Expertise Company Management, Business Strategy, Innovation, Risk Management, (Annotation) 1. The Company has no special interests with any of the candidates above. 2. The Company has executed with Messrs. Chiaki YAMAGUCHI, Toshio MITA and Ms. Noriko ASAI, Outside Directors, with an agreement for limitation of liability for damage as stipulated in Article 423.1 of the Companies Act. Outline of contents of the liability limitation agreement as follows: (i) Liability for damage incurred due to an outside director’s failure to perform his/her duties as an Outside Director shall be up to the amount of 20 million yen or the minimum liability amount stipulated in Article 425.1 of the Companies Act, whichever is higher. (ii) The limitation of liability above applies only if an outside director has performed the duties which have caused his/her liability, without knowledge thereof and has not been grossly negligent in performing the same. 3. The Company has insured Directors’ and Officers’ Liability Insurance (hereafter “D&O”), which is insurance coverage intended to protect individuals from personal losses on business during serving as a director or an officer of a business or other type of organization except disclaimer clauses on the policy. Full premium payment for the all is made on the Company. If the proposal is approved and then respective candidates are appointed Directors who are not Audit and Supervisory Committee Members, each of them shall be an insured person. On account of the one-year D&O, we will be renewing it in July, 2022. 4. Pursuant to the provisions prescribed by Tokyo Stock Exchange, Inc. and Nagoya Stock Exchange, Inc. Messrs. Chiaki YAMAGUCHI, Toshio MITA and Ms. Noriko ASAI as Independent Directors, have been appointed and registered with both Stock Exchanges. 5. Mr. Toshio MITA engaged in NYK Line as an Outside Director from June 2015 to June 2019. For the duration of the term, he corroborated his suspicion that some of former local management of NYK Car Carrier (China), one of its consolidated subsidiaries, accounted unjust expenditures though the investigation ended on March 2018. Nippon Cargo Airlines Co., Ltd, one of NYK Line’s subsidiaries, also received the administrative measures by the Minister of land, Infrastructure, Transport and Tourism for the inappropriate operations of aircraft maintenance etc. and filed implement measures on July 2018. Mr. Toshio MITA had been unaware of the said cases until he was reported. He used to make statements from the point of view of legal compliance until then, and he continued delivering proposals on exhaustive investigations into the cause of them and recurrence preventions for them. ―9― CONSOLIDATED BALANCE SHEETS Account Millions of Yen Millions of Yen Account (Assets) Current Assets Cash and deposits Notes and accounts receivable – trade, and contract assets Merchandise and finished goods Work in process Raw materials and supplies Other – current assets Allowance for doubtful accounts Noncurrent Assets Property, plant and equipment Buildings and Structures Machinery, equipment and vehicles Land Lease assets Construction in progress Other – property, plant and equipment Intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other assets Allowance for doubtful accounts 363,270 185,592 92,083 26,822 19,785 27,959 11,120 △94 301,062 225,920 76,266 87,979 20,108 285 34,013 7,266 5,448 69,693 64,638 8 3,951 1,343 △247 (Liabilities) Current Liabilities Notes and accounts payable – trade Short-term loans payable Current portion of bonds Accounts payable – other Income taxes payable Provision for bonuses Provision for bonuses for directors Provision for loss on liquidation of subsidiaries and associates Notes payable – facilities Other – current liabilities Non-Current Liabilities Bonds payable Long-term loans payable Lease obligations Deferred tax liability for land revaluation Retirement benefit liability Provision for share-based Compensation Deferred tax liabilities Other – non-current liabilities Total Liabilities (Net Assets) Shareholders’ Equity Capital stock Capital surplus Retained earnings Treasury shares Accumulated other comprehensive Income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustments Non-controlling interests Total Net Assets Total Liabilities and Net Assets 156,160 51,150 20,130 20,000 18,278 14,909 5,384 173 176 4,806 21,251 137,443 50,000 80,000 199 68 578 493 5,095 1,007 293,603 309,994 64,152 64,494 184,612 △3,264 54,581 26,626 160 27,795 6,152 370,728 664,332 Total Assets 664,332 Note: Amounts less than one million yen are omitted. (Concluded) ―10― CONSOLIDATED STATEMENTS OF INCOME Millions of Yen Account Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest and dividend income Foreign exchange gain, net Other – non-operating income Non-operating expenses Interest expenses Bond issuance cost Other – non-operating expenses Ordinary income Extraordinary income Gain on sales of non-current assets Gain on sales of investment securities Insurance claim income Compensation income Other – extraordinary income Extraordinary loss Loss on retirement of non-current assets Impairment loss Loss on valuation of investment securities Loss on sales of shares of subsidiaries and associates Other – extraordinary loss Income before income taxes Income taxes – current Income taxes – deferred Net income Profit attributable to non-controlling interests Profit attributable to owners of parent Note: Amounts less than one million yen are omitted. 1,410 2,051 1,306 280 145 769 136 90 98 410 35 6,113 1,218 630 7,097 854 19,048 △1,359 401,138 281,059 120,079 49,258 70,821 4,768 1,195 74,394 772 15,914 59,252 17,688 41,563 331 41,232 (Concluded) ―11― BALANCE SHEETS Account (Assets) Current Assets Millions of Yen Account (Liabilities) Current Liabilities Millions of Yen Cash and deposits Notes receivable – trade Accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Other – current assets Allowance for doubtful accounts Noncurrent Assets Property, plant and equipment Buildings Structures Land Machinery and equipment Construction in progress Other – property, plant and equipment Intangible assets Investments and other assets Investment securities Stock of subsidiaries and associates Other assets Allowance for doubtful accounts Total Assets Note: Amounts less than one million yen are omitted. 238,087 136,443 1,542 54,455 11,861 12,926 7,488 13,381 △13 305,907 121,003 27,912 13,530 45,964 11,473 17,713 4,408 2,081 182,822 62,725 119,675 444 △23 543,994 Notes payable – trade Accounts payable – trade Short-term loans payable Current portion of bonds Accounts payable – other Income taxes payable Deposit received Provision for bonuses Provision for bonuses for directors Notes payable – facilities Other – current liabilities Non-Current Liabilities Bonds payable Long-term loans payable Provision for share-based compensation Deferred tax liabilities Other – non-current liabilities Total Liabilities (Net assets) Shareholders’ Equity Capital stock Capital surplus Legal capital surplus Other capital surplus Retained earnings Legal retained earnings Other retained earnings General reserve Retained earnings brought forward Treasury shares Valuation and translation adjustments Valuation difference on available-for-sale securities Total Net Assets Total Liabilities and Net Assets 147,026 5,004 29,223 20,000 20,000 16,869 12,897 22,355 3,895 173 4,675 11,932 135,304 50,000 80,000 421 4,667 216 282,330 235,409 64,152 64,580 64,579 0 109,941 3,548 106,392 8,600 97,792 △3,264 26,254 26,254 261,663 543,994 (Concluded) ―12― Selling, general and administrative expenses STATEMENTS OF INCOME Account Net Sales Cost of sales Gross profit Operating income Non-operating income Interest and dividend income Foreign exchange gains, net Other – non-operating income Non-operating expense Interest expenses Bond issuance cost Rent expenses on facilities Other – non-operating expenses Ordinary income Extraordinary income Gain on sales of non-current assets Gain on sales of investment securities Insurance claim income Compensation income Extraordinary loss Loss on retirement of non-current assets Impairment loss Loss on valuation of investment securities Other – extraordinary loss Income before income taxes Income taxes – current Income taxes – deferred Net income Note: Amounts less than one million yen are omitted. Millions of Yen 5,942 1,577 520 411 145 121 81 65 84 25 410 4,909 699 630 159 14,943 △877 242,967 163,561 79,406 29,811 49,595 8,041 859 56,776 585 6,399 50,963 14,066 36,896 (Concluded) ―13―