スズデン（7480） – [Delayed] Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [Japanese GAAP]

Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [Japanese GAAP] May 9, 2022 Company name: SUZUDEN CORPORATION Stock exchange listing: Tokyo Stock Exchange Securities code: 7480 URL: https://www.suzuden.co.jp/ Representative: Toshio Suzuki, Representative Director, Chairman and President Contact: Satoshi Nakano, Executive Officer Phone: +81-3-6910-6801 Scheduled date of annual general meeting of shareholders: June 28, 2022 Scheduled date of commencing dividend payments: June 13, 2022 Scheduled date of filing annual securities report: June 29, 2022 Availability of supplementary briefing materials on financial results: Not available Schedule of financial results briefing session: Not scheduled (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (% indicates changes from the previous corresponding period.) (1) Consolidated Operating Results Profit attributable to owners of parent Operating profit Ordinary profit Net sales Fiscal year ended March 31, 2022 March 31, 2021 Million yen 59,690 45,281 115.5 (3.9) (Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥2,306 million [144.1%] 129.1 (3.4) 3,367 1,562 3,051 % Million yen – 1.6 1,332 % Million yen % Million yen 2,342 889 % 163.4 (17.1) Fiscal year ended March 31, 2021: ¥944 million [(12.4)%] Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended March 31, 2022 March 31, 2021 Yen 167.82 63.89 (Reference) Share of profit (loss) of entities accounted for using equity method: Yen – – % 13.8 5.4 % 11.4 5.9 % 5.1 2.9 Fiscal year ended March 31, 2022: ¥ – million Fiscal year ended March 31, 2021: ¥ – million (Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ended March 31, 2022. For this reason, the year-on-year change in net sales before the application of the above accounting standard, etc. is not provided. (2) Consolidated Financial Position As of March 31, 2022 As of March 31, 2021 32,736 26,441 Million yen Million yen 17,627 16,396 (Reference) Equity: As of March 31, 2022: ¥17,627 million As of March 31, 2021: ¥16,396 million Total assets Net assets Equity ratio Net assets per share Yen 1,261.67 1,175.22 % 53.8 62.0 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Million yen 426 2,514 Million yen (696) 671 Million yen 497 (1,768) Million yen 6,137 5,886 (3) Consolidated Cash Flows Fiscal year ended March 31, 2022 March 31, 2021 2. Dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) 31, 2023) 1st quarter-end Annual dividends 3rd quarter-end 2nd quarter-end Year-end Total dividends (total) Payout ratio (consolidated) Total Yen Yen Yen Yen Yen Million yen – – – 18.00 25.00 55.00 – – – 54.00 72.00 97.00 122.00 56.00 111.00 1,012 1,717 Ratio of dividends to net assets (consolidated) % 6.1 10.0 % 112.7 72.7 80.3 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March Net sales Operating profit Ordinary profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Basic earnings per share First half Full year Million yen 29,600 10.8 (0.5) 59,400 % Million yen 1,370 2,700 % Million yen 1,520 2,990 17.3 (11.5) % Million yen 980 1,930 15.4 (11.2) % 9.0 (17.6) Yen 70.22 138.29 * Notes: (1) Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation): Newly included: – ( ), Excluded: – ( ) (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards and other regulations: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): March 31, 2022: March 31, 2021: March 31, 2021: March 31, 2021: 14,652,600 shares 14,652,600 shares 681,287 shares 700,987 shares 2) Total number of treasury shares at the end of the period: 3) Average number of shares during the period: Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: 13,956,612 shares 13,920,912 shares (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022. (April 1, 2021 – March 31, 2022) (1) Non-consolidated Operating Results Net sales (% indicates changes from the previous corresponding period.) Operating profit Ordinary profit Net income Fiscal year ended March 31, 2022 March 31, 2021 Million yen 59,110 44,960 % Million yen – 1.9 3,035 1,343 125.9 % Million yen 3,367 1,578 (2.6) % Million yen 2,265 1,025 113.3 (3.8) % 120.9 (5.5) Basic earnings per share Diluted earnings per share Fiscal year ended March 31, 2022 March 31, 2021 Yen 162.32 73.67 Yen – – (Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ended March 31, 2022. For this reason, the year-on-year change in net sales before the application of the above accounting standard, etc. is not provided. (2) Non-consolidated Financial Position As of March 31, 2022 As of March 31, 2021 Total assets Net assets Equity ratio Million yen 32,521 Million yen 17,449 % 53.7 Net assets per share Yen 1,248.94 1,169.87 62.4 16,321 (Reference) Equity: As of March 31, 2022: ¥17,449 million As of March 31, 2021: ¥16,321 million 26,173 * These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm. * Explanation on the proper use of financial results forecasts and other special notes The financial results forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that have been deemed reasonable. They do not constitute a guarantee of future results. Actual performance may differ significantly from these forecasts due to a wide range of factors. For assumptions underlying the financial results forecasts and precautions regarding their use, please refer to “1. Overview of Operating Results, etc., (4) Future Outlook” on page 3 of the Attachments. Table of Contents – Attachments 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 ………………………………………………. 3 (3) Overview of Cash Flows for the Fiscal Year under Review ………………………………………………………… 3 (4) Future Outlook …………………………………………………………………………………………………………………….. 3 (5) Company’s Medium- to Long-Term Management Strategies ……………………………………………………… 4 2. Basic Policy on Selection of Accounting Standards ………………………………………………………………………. 5 3. Consolidated Financial Statements and Principal Notes ………………………………………………………………… 6 (1) Consolidated Balance Sheets …………………………………………………………………………………………………. 6 (2) Consolidated Statements of Income and Comprehensive Income ……………………………………………….. 8 (3) Consolidated Statements of Changes in Equity ………………………………………………………………………. 10 (4) Consolidated Statements of Cash Flows ………………………………………………………………………………… 12 (5) Notes to Consolidated Financial Statements …………………………………………………………………………… 13 (Notes on going concern assumption) …………………………………………………………………………………… 13 (Changes in accounting policies) …………………………………………………………………………………………. 13 (Additional information) …………………………………………………………………………………………………….. 13 (Segment information, etc.) ………………………………………………………………………………………………… 14 (Per share information) ………………………………………………………………………………………………………. 15 (Significant subsequent events) …………………………………………………………………………………………… 15 4. Others …………………………………………………………………………………………………………………………………… 16 (1) Purchases and Sales …………………………………………………………………………………………………………….. 16 (2) Changes in Officers …………………………………………………………………………………………………………….. 16 1 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year under review. Accordingly, net sales for the fiscal year under review are presented without a year-on-year comparison (%) with the previous fiscal year. Details are explained in “3. Consolidated Financial Statements and Principal Notes (5) Notes to Consolidated Financial Statements (Changes in accounting policies).” Regarding the Group’s operating environment during the fiscal year under review (April 1, 2021 – March 31, 2022), amidst progress with COVID-19 vaccinations and relaxed restrictions on movement despite persistent uncertainties due to the impact of the disease, corporate production and capital investment demand have shown signs of recovery. Within this environment, from the perspective of business continuity planning, the Company has adopted measures that prioritize the health and safety of its employees, and to assist manufacturing processes as a “Manufacturing Support Company,” possesses a comprehensive inventory and has strived to provide a stable supply of products to its customers. This inventory strategy has garnered positive feedback from our customers. In the electrical equipment, electronic component, and industrial machinery industries, the principal markets of the Group, formerly stagnant production and capital investment demand have been showing signs of recovery from the latter half of the previous fiscal year. Moreover, with increased orders ahead of schedule due to the impact of shortages in semiconductors and resin materials, etc., as well as increased shipments from suppliers toward the end of the period, performance has been favorable. Especially regarding major customers of semiconductor manufacturing equipment, increased production and capital investment demand of semiconductor manufacturers on the back of the increased demand for semiconductors and worldwide shortages in semiconductors have fueled these favorable results throughout the fiscal year. In addition, additional orders received due to special demand unique to this fiscal year, which is attributable to shortages in goods, also contributed to the operating results. In terms of profit, the results in the previous fiscal year were surpassed as profit increased following the increase in sales. As a result, for the fiscal year under review, net sales amounted to ¥59,690 million (¥45,281 million in the previous fiscal year), operating profit was ¥3,051 million (up 129.1% year-on-year), ordinary profit was ¥3,367 million (up 115.5% year-on-year), and profit attributable to owners of parent was ¥2,342 million (up 163.4% year-on-year). As such, both sales and profit increased year-on-year. Net sales of the Group by product segment are as follows: (1) FA equipment Net sales amounted to ¥34,881 million with increased sales of RFID equipment, relay equipment, sensors, control equipment, etc. (2) Information and communication equipment Net sales amounted to ¥6,048 million with increased sales of CPUs, personal computers for industrial use, routers, network equipment, etc. (3) Electronics and devices (4) Materials for electric facilities Net sales amounted to ¥7,616 million with increased sales of connectors, switching power supplies, noise filters, etc. Net sales amounted to ¥11,143 million with increased sales of terminal blocks, cable accessories, boxes, etc. 2 (2) Overview of Financial Position for the Fiscal Year under Review (Assets) Total assets as of the end of the fiscal year under review amounted to ¥32,736 million, up ¥6,294 million from the end of the previous fiscal year. Current assets increased by ¥5,517 million from the end of the previous fiscal year to ¥26,902 million. This was primarily due to a ¥2,632 million increase in accounts receivable – trade, a ¥1,465 million increase in electronically recorded monetary claims – operating, and a ¥1,120 million increase in merchandise. Non-current assets increased by ¥776 million from the end of the previous fiscal year to ¥5,833 million. This was mainly due to a ¥1,001 million increase in buildings and structures associated with facility additions to Taiwa Plant. (Liabilities) Liabilities as of the end of the fiscal year under review amounted to ¥15,109 million, up ¥5,063 million from the end of the previous fiscal year. Current liabilities increased by ¥5,252 million from the end of the previous fiscal year to ¥13,925 million. This was primarily due to a ¥1,535 million increase in notes and accounts payable – trade and a ¥2,000 million increase in short-term borrowings. Non-current liabilities decreased by ¥189 million from the end of the previous fiscal year to ¥1,183 million. (Net assets) Net assets as of the end of the fiscal year under review amounted to ¥17,627 million, up ¥1,230 million from the end of the previous fiscal year. This was mainly due to the recording of profit attributable to owners of parent for the fiscal year under review of ¥2,342 million and dividend payments of ¥1,111 million. The equity ratio was 53.8%. (3) Overview of Cash Flows for the Fiscal Year under Review Cash and cash equivalents (hereinafter referred to as “net cash”) as of the end of the fiscal year under review amounted to ¥6,137 million, up ¥250 million from the end of the previous fiscal year. The status of cash flows and its contributing factors during the fiscal year under review are as follows. (Cash flows from operating activities) Due to operating activities, net cash increased by ¥426 million. (Net cash increased by ¥2,514 million in the previous fiscal year) This was mainly due to a ¥3,442 million increase in profit before income taxes, a ¥2,227 million increase in trade payables, a ¥4,041 million increase in trade receivables, and a ¥576 million decrease in income taxes paid. (Cash flows from investing activities) Due to investing activities, net cash decreased by ¥696 million. (Net cash increased by ¥671 million in the previous fiscal year) This was mainly due to purchase of property, plant and equipment of ¥829 million associated with facility additions to Taiwa Plant. (Cash flows from financing activities) Due to financing activities, net cash increased by ¥497 million. (Net cash decreased by ¥1,768 million in the previous fiscal year) This was mainly due to proceeds from short-term borrowings of ¥2,000 million and dividends paid of ¥1,111 million. (4) Future Outlook Regarding the future outlook, in the electrical equipment, electronic component, and industrial machinery industries, the principal markets of the Company, a high level of order volume is expected to continue mainly for manufacturers of semiconductor manufacturing equipment due to longer delivery times, and at present, the Company assumes that the same level of order volume will continue in the future. However, the Company assumes that net sales will decrease due to a fallback after the special demand unique to this fiscal year 3 attributable to shortages in goods and withdrawal of overseas subsidiaries. In addition, uncertainties remain such as supply concerns due to shortages in parts and materials, the impact of COVID-19, and geopolitical risks in the external environment. On the profit front, the Company expects that expenses, etc. will increase due to the impact of upfront investments to meet customer requirements, surging crude oil prices, etc., and that both sales and profit will decrease on a full-year basis. Forecasts and other forward-looking information are based on information currently available to the Company, and actual performance, etc. may vary due to a variety of factors. If there are any changes in the future, they will be disclosed appropriately. (5) Company’s Medium- to Long-Term Management Strategies With its management strategies aiming for enhancement of corporate value at the core, the Company will, as a “Manufacturing Support Company,” supply and provide support for facilities, equipment, components, services, etc. for manufacturing sites (production sites such as plants, construction sites, etc.). In addition, with the aim of further improving quality, productivity, and efficiency, the Company will make investment mainly in information technology (IT) and robotics to promote digital transformation (DX) for the purpose of, among others, making operations and logistics functions more efficient. In addition, the Company will work on efforts to enhance its educational system so that each and every employee can improve. In these ways, the Company will strive for sustainable growth and enhancement of corporate value. (i) Sales strategy The Company will concentrate management resources to selected growth markets and areas, and work to improve financial results by expanding, strengthening, and cultivating market territories to a deeper extent with a “customer-first” spirit. As part of priority measures, the Company will work to eliminate labor shortages, improve productivity and enhance quality management by selling robot- and Internet of Things (IoT)-based products. The Company will also make proposals for construction of smart plants. The Robots and Solutions Section, established as an engineering department, is committed to the provision of comprehensive solutions for making customers’ production sites a smart plant. Such solutions include selection of equipment such as robots, and data accumulation and utilization. In addition, as the semiconductor industry is expected to continue to grow following the practical application of 5G communications, AI, autonomous driving, etc. and accelerated development of technologies, the Company will concentrate its management resources and focus on customers related to semiconductor manufacturing equipment and electronic components. Moreover, for medical markets including the medical equipment-related market and the medical practice- and nursing care-related market, on which the Company has placed an emphasis over the medium to long term, and for the Internet business in which demand is expected to continue to increase in association with changes in customers’ purchasing modes, the Company has identified the expansion of functions of and the range of products handled at “FAUbon,” the e-commerce website its operates, as one of its priority strategies. The Company will also add various services to accommodate major customers’ centralization of purchasing, etc. to the website, and thereby work to improve financial results. As a “manufacturing” base of the Company, Taiwa Plant (Kurokawa County, Miyagi Prefecture) has long engaged in assembly, processing, etc. of custom-build personal computers, terminal blocks, unit products, etc. The Company will shortly build an extension to the plant for purposes including assembly of aluminum frames for semiconductor manufacturing equipment, and whereby strengthen its manufacturing functions and respond to customers’ requirements. The Company will continue to further strengthen the system to provide high-value-added products and meet advanced requirements for supply chain management (SCM). (ii) Product strategy As a “Manufacturing Support Company,” the Company will promote proposals for cutting-edge controlling equipment and materials for electric facilities and push forward with the sale of mechatronics 4 products, safety products, environment-related products, etc. in response to key words such as “quality, environment (saving), and safety,” improvement of which is required by production sites at all times. In the robot and IoT areas, which are growth areas, the Company will make solution proposals such as energy saving, labor saving, and introduction of IoT in line with customers’ needs, through strengthening of the ability to make proposals by providing training programs for manufacturers and other efforts to develop human resources, cooperation with systems integrators, and collaboration with the engineering departments of the Company. In addition, as for the original brand “Ubon,” the Company will further enhance the product assortments of mainstay wiring accessories and in-panel parts and accelerate development of products proactively incorporating customers’ needs including high-value-added products such as customized personal computers, as well as testing kits, and thereby work to improve customers’ convenience and increase revenue. 2. Basic Policy on Selection of Accounting Standards Many of the stakeholders of the Group are shareholders, creditors and business partners in Japan and overseas subsidiaries of domestic business partners, among others, and there is little necessity to procure funds from overseas. Therefore, the Company has adopted Japanese generally accepted accounting principles. Going forward, it is the policy of the Company to consider applying International Financial Reporting Standards taking into account factors especially such as the trends in the application of such accounting standards by other companies listed in the market of Tokyo Stock Exchange, which is the same exchange market as the Company. 5 3. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets As of March 31, 2021 As of March 31, 2022 (Thousand yen) 6,148,188 1,628,772 10,444,542 4,585,551 3,657,056 441,830 (3,326) 26,902,616 4,052,689 (1,602,214) 2,450,474 1,909,493 75,379 (37,055) 38,323 11,000 221,931 (156,685) 65,245 4,474,538 113,767 113,767 394,752 459,881 425,224 (34,592) 1,245,265 5,833,572 32,736,188 5,907,920 1,678,191 7,812,054 3,120,337 2,536,758 331,942 (2,515) 21,384,689 3,051,449 (1,546,821) 1,504,627 1,909,493 86,867 (31,848) 55,018 9,350 293,485 (176,492) 116,993 3,595,483 66,266 66,266 498,848 329,669 602,717 (35,842) 1,395,392 5,057,141 26,441,831 Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable – trade Electronically recorded monetary claims – operating Merchandise Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 6 As of March 31, 2021 As of March 31, 2022 (Thousand yen) Liabilities Current liabilities Notes and accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Current portion of long-term borrowings Lease liabilities Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Asset retirement obligations Other Total current liabilities Non-current liabilities Long-term borrowings Lease liabilities Provision for share-based remuneration for directors (and other officers) Retirement benefit liability Asset retirement obligations 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 Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Total liabilities and net assets 4,663,370 2,381,604 – 354,084 37,421 340,109 244,133 70,700 44,600 536,332 8,672,355 41,544 212,601 43,993 957,709 1,816 115,529 1,373,194 10,045,550 1,819,230 1,541,190 13,530,310 (604,973) 16,285,757 98,604 7,549 4,369 110,523 16,396,280 26,441,831 6,198,414 3,077,472 2,000,000 41,544 27,995 1,002,683 459,936 211,000 – 905,992 13,925,038 – 33,980 57,010 927,843 49,145 115,989 1,183,969 15,109,008 1,819,230 1,558,048 14,761,556 (586,718) 17,552,116 36,915 31,757 6,391 75,063 17,627,179 32,736,188 7 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Thousand yen) Net sales Cost of sales Gross profit Selling, general and administrative expenses Packing and transportation costs Salaries, allowances and bonuses Share-based payment expenses Legal welfare expenses Retirement benefit expenses Rent expenses Depreciation Provision of allowance for doubtful accounts Provision for bonuses Provision for bonuses for directors (and other officers) Other Total selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Purchase discounts Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Loss on sale of notes receivable – trade Sales discounts Foreign exchange losses Loss on cancellation of leases Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of investment securities Gain on reversal of lease obligations Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Impairment losses Loss on valuation of investment securities Extra retirement payments Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to owners of parent 8 45,281,607 38,719,067 6,562,539 479,673 2,359,440 26,589 376,316 139,710 377,578 189,806 (1,635) 244,133 70,700 967,887 5,230,200 1,332,339 8,987 15,721 208,957 – 32,307 265,973 13,045 1,837 5,576 7,565 3,970 3,669 35,665 1,562,648 14,359 – 14,359 8,431 124,995 20,327 – 153,754 1,423,253 544,061 (10,216) 533,845 889,408 889,408 59,690,852 50,552,605 9,138,247 559,941 2,519,896 34,989 439,099 139,312 427,837 191,572 (439) 459,936 211,000 1,103,324 6,086,471 3,051,775 868 17,636 262,760 23,041 30,273 334,581 9,703 2,395 – – 3,497 3,389 18,986 3,367,370 1,418 108,746 110,164 1,177 10,474 – 23,024 34,676 3,442,858 1,205,388 (104,795) 1,100,592 2,342,265 2,342,265 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 Owners of parent Non-controlling interests For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Thousand yen) 889,408 54,666 1,248 (448) 55,467 944,875 944,875 – 2,342,265 (61,689) 24,208 2,021 (35,459) 2,306,806 2,306,806 – 9 (3) Consolidated Statements of Changes in Equity For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Thousand yen) Total shareholders’ equity Balance at beginning of period 1,819,230 1,530,825 13,623,165 (642,661) 16,330,559 (982,263) 889,408 (982,263) 889,408 10,365 37,687 48,053 Total changes during period 10,365 (92,855) 37,687 (44,802) Balance at end of period 1,819,230 1,541,190 13,530,310 (604,973) 16,285,757 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Balance at beginning of period 43,937 6,300 4,818 55,056 16,385,615 – Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes of items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes of items other than shareholders’ equity Total changes during period Balance at end of period (982,263) 889,408 48,053 55,467 10,664 54,666 54,666 98,604 1,248 1,248 7,549 (448) (448) 4,369 55,467 55,467 110,523 16,396,280 10 For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Thousand yen) Total shareholders’ equity Balance at beginning of period 1,819,230 1,541,190 13,530,310 (604,973) 16,285,757 (1,111,020) 2,342,265 (1,111,020) 2,342,265 16,858 18,255 35,113 Total changes during period － 16,858 1,231,245 18,255 1,266,358 Balance at end of period 1,819,230 1,558,048 14,761,556 (586,718) 17,552,116 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Balance at beginning of period 98,604 7,549 4,369 110,523 16,396,280 (1,111,020) 2,342,265 35,113 2,021 2,021 6,391 Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes of items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes of items other than shareholders’ equity (61,689) 24,208 (35,459) (35,459) Total changes during period Balance at end of period (61,689) 36,915 24,208 31,757 (35,459) 1,230,899 75,063 17,627,179 11 For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Thousand yen) (4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in provision for share awards for directors (and other officers) Increase (decrease) in retirement benefit liability Increase (decrease) in allowance for doubtful accounts Interest and dividend income Interest expenses Loss (gain) on valuation of investment securities Loss (gain) on sale of investment securities Loss on retirement of property, plant and equipment Gain on reversal of lease obligations Extra retirement payments Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase/decrease in consumption taxes payable/consumption taxes refund receivable Other Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds from redemption of securities Purchase of investment securities Proceeds from sale of investment securities Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits Payments into time deposits Proceeds from withdrawal of time deposits 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 Repayments of finance lease obligations Dividends paid 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 1,423,253 189,806 124,995 2,217 (3,300) 18,434 (23,543) (1,635) (24,709) 13,045 20,327 (14,359) 8,431 – – 811,985 59,524 171,613 146,200 32,028 2,954,315 36,256 (12,966) (462,718) 2,514,888 (49,076) (11,450) 900,000 (25,988) 55,085 (207,470) 9,983 (21,000) 21,000 671,084 – (1,342) 2,000,000 (2,749,968) (34,553) (982,263) (1,768,127) 812 1,418,657 4,468,262 5,886,920 12 3,442,858 191,572 10,474 215,803 140,300 17,157 (29,866) (439) (18,505) 9,703 – (1,418) 1,177 (108,746) 23,024 (4,041,432) (1,118,912) 2,227,584 (71,962) 105,366 993,738 18,289 (9,638) (576,175) 426,213 (829,655) (69,369) － (26,005) 36,329 (6,921) 188,822 (11,000) 21,000 (696,799) 2,000,000 – – (354,084) (1,111,525) 497,353 23,501 250,268 5,886,920 6,137,188 (37,036) (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Changes in accounting policies) (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 “Revenue Recognition Standard”), etc. from the beginning of the fiscal year under review. Accordingly, revenue is recognized at the point in time at which control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. As a result, for some transactions, the Company had previously recognized revenue on a gross basis, but has changed to a method of recognizing revenue on a net basis for transactions in which the role of the Company in providing a good or service to the customer is an agent. The Group primarily sells products related to electrical and electronic components, and the performance obligations related to the sale of such products are to be fulfilled at a point in time. Therefore, the revenue is recognized at the point in time at which a product has been shipped and requirements are judged to have been met in light of the contractual terms with the customer and the number of days required for shipping and delivery. The application of the Revenue Recognition Standard, etc. is in accordance with the transitional treatment set forth in the proviso of Paragraph 84 of the Revenue Recognition Standard, and the aggregate amount of the impact of retroactively applying the new accounting policy prior to the beginning of the fiscal year under review is added to or subtracted from retained earnings at the beginning of the fiscal year under review. The new accounting policy is applied from the said beginning balance of retained earnings, but there will be no impact on such balance. As a result, net sales and cost of sales for the fiscal year under review each decreased by ¥247,618 thousand, while there is no impact on operating profit, ordinary profit, and profit before income taxes. There is no impact on per share information. (Application of accounting standard for fair value measurement, etc.) The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019, hereinafter “Fair Value Measurement Standard”), etc. from the beginning of the fiscal year under review, and plans to prospectively apply the new accounting policy determined by the Fair Value Measurement Standard, etc. in accordance with the transitional treatment set forth in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standards for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).” There was no impact on the consolidated financial statements. (Additional information) (Accounting estimate related to the impact of the spread of COVID-19) The Group makes accounting estimates based on the information available at the time of preparing the consolidated financial statements. At this point in time, the Group believes that there is no significant impact of the spread of COVID-19 on the assumptions used to make the accounting estimates. As the impact of COVID-19 on economic activities is highly uncertain, if there are any changes in the assumptions caused by the future situation, they may affect the future financial position and operational results of the Group. 13 (Segment information, etc.) [Segment information] The business segments of the Group are the Company’s constituent units for which separate financial information is available and are subject to regular review by the Board of Directors to determine the allocation of management resources and evaluate performance. The Group primarily engages in the business of purchasing and selling products related to electrical and electronic components, and its business segments consist of its subsidiaries and departments. However, each of these segments is business related to the “Sale of Electrical and Electronic Components.” In addition, unification of them can be judged to help provide appropriate information on the details of business activities and the business environment to understand past financial results of the Group and evaluate future cash flow forecast appropriately. Accordingly, the Group uses the unified business segment, “Sale of Electrical and Electronic Components,” as the single reportable segment. [Related information] For the fiscal year ended March 31, 2021 Information by major customer Name of customer Net sales Tokyo Electron Miyagi Ltd. ¥6,108,087 thousand The Group has transactions with Tokyo Electron Technology Solutions Ltd. and Tokyo Electron Kyushu Ltd., which are group companies of the above-mentioned customer, and the trends in capital investment, changes in production plans, etc. of the customer’s group may have an impact on operating results, financial position, etc. of the Group. For the fiscal year ended March 31, 2022 Information by major customer Name of customer Net sales Tokyo Electron Miyagi Ltd. ¥9,117,022 thousand The Group has transactions with Tokyo Electron Technology Solutions Ltd. and Tokyo Electron Kyushu Ltd., which are group companies of the above-mentioned customer, and the trends in capital investment, changes in production plans, etc. of the customer’s group may have an impact on operating results, financial position, etc. of the Group. 14 (Per share information) For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 Net assets per share Basic earnings per share ¥1,175.22 ¥63.89 ¥1,261.67 ¥167.82 Notes 1. Diluted earnings per share are not presented, as there are no potential shares with dilutive effects. 2. The basis for calculation of basic earnings per share is as follows. For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 889,408 2,342,265 889,408 2,342,265 13,920,912 13,956,612 – – (–) – – (–) Basic 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 relating to common shares (Thousand yen) Average number of common shares outstanding during the period (Shares) Amounts deducted from total net assets (Thousand yen) (Of which, share acquisition rights (Thousand yen)) Net assets relating to common shares at end of period (Thousand yen) Number of common shares at end of period used to calculate net assets per share (Shares) 3. The basis for calculation of net assets per share is as follows. As of March 31, 2021 As of March 31, 2022 Total net assets (Thousand yen) 16,396,280 17,627,179 16,396,280 17,627,179 13,951,613 13,971,313 4. In calculating net assets per share, shares of the Company remaining in the trust, which are recorded as treasury shares under shareholders’ equity, are included in treasury shares deducted from the total number of shares issued as of the end of period (112 thousand shares for the previous fiscal year and 107 thousand shares for the fiscal year under review). In addition, in calculating basic earnings per share, such treasury shares are included in treasury shares deducted when calculating the average number of shares during the period (121 thousand shares for the previous fiscal year and 108 thousand shares for the fiscal year under review). (Significant subsequent events) Not applicable. 15 Item name Year-on-year change (%) For the fiscal year ended March 31, 2022 (Thousand yen) 4. Others (1) Purchases and Sales Purchases FA equipment Information and communication equipment Electronics and devices Materials for electric facilities Total FA equipment Information and communication equipment Electronics and devices Materials for electric facilities Total Notes: 1. Amounts of less than one thousand yen are rounded down. 2. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the fiscal year under review. Accordingly, the year-on-year change in values before the application of the above accounting standard, etc. is not provided. Sales Item name Year-on-year change (%) For the fiscal year ended March 31, 2022 (Thousand yen) 31,131,045 5,425,124 6,142,573 8,972,366 51,671,110 34,881,739 6,048,374 7,616,883 11,143,855 59,690,852 – – – – – – – – – – Notes: 1. Amounts of less than one thousand yen are rounded down. 2. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the fiscal year under review. Accordingly, the year-on-year change in values before the application of the above accounting standard, etc. is not provided. (2) Changes in Officers (i) Changes in representatives Newly appointed representative directors (on April 1, 2022) Takefumi Takaya, Representative Director and Senior Managing Director Sokichi Yasutake, Representative Director and Senior Managing Director (ii) Other changes in officers (planned for June 28, 2022) 1. Candidates for new director Kazuhiro Minegishi, Director Masahiro Nakajima, Director and Audit & Supervisory Committee Member (currently Director) 16 (Note) Candidates for new director, Messrs. Kazuhiro Minegishi and Masahiro Nakajima are Outside Directors. 2. Directors who are slated to retire Shigeru Suzuki, Director Masahiro Nakajima, Director Kenji Sada, Director and Audit & Supervisory Committee Member Hiroaki Sasaki, Director and Audit & Supervisory Committee Member 17