鈴茂器工（6405） – [Delayed]Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (JGAAP)

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (JGAAP) May 13, 2022 Suzumo Machinery Co., Ltd. Tokyo Stock Exchange 6405 http://www.suzumokikou.com/ Minako Suzuki, President Toru Shiga, Executive Officer and General Manager of Administration Division +81-3-3993-1371 Company name: Listing: Stock code: URL: Representative: Contact: Phone: Scheduled date to hold the ordinary general meeting of shareholders: Scheduled date for dividend payment: Scheduled date to file quarterly report: Supplementary materials for quarterly financial statements: Yes Results briefing to be held: June 25, 2022 June 27, 2022 June 27, 2022 Yes (For analysts and institutional investors) (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 to March 31, 2022) (1) Consolidated Operating Results (Percentages indicate year-on-year change) Profit attributable to owners of parent Ordinary profit Net sales Operating profit Fiscal year ended 21.9 March 31, 2022 6.2 March 31, 2021 (Note) Comprehensive income: Fiscal year ended March 31 2022: 1,166 million yen (66.1%) Fiscal year ended March 31 2021: 702 million yen (146.9%) % Millions of yen 1,543 920 % Millions of yen 1,517 919 Millions of yen 11,565 9,486 65.1 20.1 % Millions of yen 1,070 683 67.7 31.1 % 56.6 112.4 Basic earnings per share Diluted earnings per share Return on equity Ordinary profit to total assets Operating profit to net sales Fiscal year ended March 31, 2022 March 31, 2021 (Reference) Equity in earnings of affiliates: Fiscal year ended March 31 2022: -2 million yen Fiscal year ended March 31 2021: -3 million yen Yen 165.92 105.76 Yen ― ― % 8.4 5.7 % 9.9 6.5 % 13.1 9.7 (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share As of March 31, 2022 March 31, 2021 Millions of yen 16,416 14,694 Millions of yen 13,254 12,198 % 80.6 82.9 Yen 2,051.63 1,890.64 (Reference) Shareholders’ equity: Fiscal year ended March 31 2022: 13,236 million yen Fiscal year ended March 31 2021: 12,184 million yen (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen Millions of yen Millions of yen Millions of yen 1,340 1,245 (268) (344) (194) (184) 8,276 7,342 1 2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Total dividend paid Payout ratio (Consolidated) Dividends to net assets (Consolidated) Fiscal year ended March 31, 2021 March 31, 2022 Yen — — Yen 0.00 0.00 Yen — — Yen Yen Millions of yen 20.00 40.00 20.00 40.00 128 258 % 18.9 24.1 Fiscal year ending March 31, 2023 (forecast) 3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023) 32.00 30.00 62.00 30.4 — — Net sales Operating profit Ordinary profit Earnings per share Full-year Millions of yen 13,000 % Millions of yen 1,800 12.4 % Millions of yen 1,800 18.6 % Millions of yen 1,315 16.6 % 22.9 Yen 203.62 (Percentages indicate year-on-year change) Profit attributable to owners of parent % 1.1 2.2 (1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in a change in the scope of consolidation): None Newly included: Excluded: — — (2) Changes in accounting policies, changes in accounting estimates, and retrospective restatement 1) Changes in accounting policies due to revision of accounting standards: 2) Changes in accounting policies due to other reasons: 3) Changes in accounting estimates: 4) Retrospective restatement: Yes None None None (3) Total number of issued shares (common stock) 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: 3) Average number of shares outstanding during the period: March 31, 2022: March 31, 2021: March 31, 2022: March 31, 2021: March 31, 2022: March 31, 2021: 6,480,000 shares 6,480,000 shares 28,450 shares 35,598 shares 6,449,859 shares 6,461,987 shares (Reference) Summary of non-consolidated financial results 1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) (1) Non-consolidated operating results (Percentage figures indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit Millions of yen 9,824 8,163 % 20.3 4.2 Millions of yen 1,091 683 % 59.8 19.1 Millions of yen 1,243 754 % 64.8 21.3 Millions of yen 956 593 % 61.2 96.8 Notes: Fiscal year ended March 31, 2022 March 31, 2021 Fiscal year ended March 31, 2022 March 31, 2021 Basic earnings per share Diluted earnings per share Yen 148.31 91.81 Yen — — 2 (2) Non-consolidated financial position As of March 31, 2022 March 31, 2021 Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen 14,971 13,936 12,676 11,839 % 84.7 84.9 Yen 1,964.89 1,837.14 (Reference) Shareholders’ equity: Fiscal year ended March 31 2022: 12,676 million yen Fiscal year ended March 31 2021: 11,839 million yen 2. Forecast for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023) The Company has omitted the disclosure of non-consolidated earnings forecasts from the fiscal year ended March 31, 2022. * The financial statements are outside the scope of reviews by certified public accountants and auditing firms. * Explanation of the proper use of financial results forecast and other notes Forward-looking statements in this document, including outlook on future performance, are based on currently available information and certain assumptions that the Company regards as reasonable, and actual results may differ substantially from the projections herein depending on various factors. For the preconditions of and precautions in using the financial results forecast, please refer to “1. Summary of Business Results” on page 2 of the Attachment. 3 Contents of Attached Materials 1. Summary of Business Results (1) Business Results for the Fiscal Year (2) Financial Condition During the Fiscal Year (3) Cash Flows for the Fiscal Year (4) Outlook 2. Approach to Selection of Accounting Standards 3. Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheet (3) Consolidated Statement of Change in Net Assets (4) Consolidated Cash Flow Statement (5) Notes to Consolidated Financial Statements (Notes on Going Concern Assumption) (Changes in Accounting Policies) (Segment Information) (Per-Share Information) (Subsequent Material Events) 4. Other (1) Changes in Directors and Corporate Auditors 2 2 3 3 4 5 6 6 8 10 12 14 14 14 15 15 15 16 16 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 1 1. Summary of Business Results (1) Summary of Business Results for the Fiscal Year Japan spent most of the current fiscal year either under emergency declarations due to the COVID-19 pandemic or priority measures to prevent the spread. Conditions were tough for personal services and accommodation and food services. However, manufacturing sector exports are in an uptrend as overseas demand recovers, primarily in advanced economies, as economic activities return to normal from the pandemic. The economy faces numerous risks going forward, including restricted supply of components such as semiconductors and Russia’s invasion of Ukraine and associated increases in prices in general and resources in particular. Under these conditions, in the current fiscal year, demand for the Company’s products was strong as moves by the restaurant and retail industries to mechanize and reduce labor accelerated. However, from the second quarter, our manufacturing operations remained impacted by the shortages of semiconductors and materials, and we worked to secure materials suppliers in order to meet rising demand. In Japan, while emergency declarations due to the pandemic and priority measures to prevent the spread COVID-19 weighed on eating out demand, takeout and delivery continued to grow and labor-saving moves progressed. By customer category, demand from major conveyor belt sushi chains grew as they installed machines for preparing takeout sushi and opened new restaurants. Mounting concerns about hygiene and food loss among business operators and end consumers saw rising demand for the Fuwarica rice-serving machine from new customer segments, such as hotels, inns, company cafeterias, and hospitals. In addition, sales from Japan System Project Co., Ltd. (JSP), which joined our group in October 2021, contributed from the fourth quarter. Domestic sales increased year on year. Overseas, demand for our products increased as economies reopened and the labor shortage in the food service and retail industries intensified and mechanization, the trend to replace human labor with machines, accelerated. By region, demand for sushi machines continued to grow among food service operators and supermarkets, especially in North America and Europe. Despite a recent impact on sales to Europe as logistics have been interrupted by Russia’s invasion of Ukraine, overseas sales were up significantly year on year. As a result, sales increased versus the year ended March 31, 2021. Net sales for the fiscal year ended March 31, 2022 came to 11,565 million yen (+21.9% YoY). This broke down to domestic sales of 7,729 million yen (+6.4% YoY) and overseas sales of 3,836 million yen (+72.7% YoY). Summary of results for the fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Amount of change Percentage change Millions of yen % of net sales Millions of yen % of net sales Millions of yen Net sales 9,486 100.0 11,565 100.0 2,079 7,264 2,221 4,394 919 920 683 76.6 23.4 46.3 9.7 9.7 7.2 7,729 3,836 5,683 1,517 1,543 1,070 66.8 33.2 49.1 13.1 13.3 9.3 465 1,614 1,289 597 622 386 % 21.9 6.4 72.7 29.3 65.1 67.7 56.6 On the profit front, all profit lines rose sharply year on year, driven by growth in net sales. Gross profit was up 29.3% to 5,683 million yen, operating profit increased by 65.1% to 1,517 million yen, and ordinary profit rose 67.7% to 1,543 million yen. Profit attributable to owners of parent rose 56.6% to 1,070 million yen. Domestic Overseas Gross profit Operating profit Ordinary profit Profit attributable to owners of parent 2 (2) Financial Condition for the Fiscal Year Assets, Liabilities, and Net Assets (Assets) (Liabilities) (Net assets) Total assets as of March 31, 2022 were up 1,721 million yen from March 31, 2021 to 16,416 million yen. This change was primarily due to increases of 933 million yen in cash and deposits and 397 million yen in inventories. Liabilities as of March 31, 2022 were up 665 million yen from March 31, 2021 to 3,161 million yen. This change was chiefly due to increases of 193 million yen in long-term borrowings and 91 million yen in income taxes payable. Net assets as of March 31, 2022 were up 1,056 million yen from March 31, 2021 to 13,254 million yen. This change was mainly due to 1,070 million yen in profit attributable to owners of parent and a 128 million yen decrease in retained earnings due to dividend payments. (3) Cash Flows for the Fiscal Year 31, 2021 to 8,276 million yen. (Cash Flows from Operating Activities) Cash and cash equivalents (referred to as “funds” below) as of March 31, 2022 were up 933 million yen versus March Cash flows from operating activities in the current fiscal year resulted in an increase of 1,340 million yen in funds (an increase of 95 million yen versus the previous fiscal year). This was the result of increases in funds of 1,582 million yen in profit before income taxes and 291 million yen in depreciation expenses. (Cash Flows from Investing Activities) Cash flows from investing activities in the current fiscal year resulted in a decrease of 268 million yen in funds (an increase of 76 million yen versus the previous fiscal year). This was the result of outflows of 146 million yen to acquire Cash flows from financing activities in the current fiscal year resulted in a decrease of 194 million yen in funds (a decrease of 10 million yen versus the previous fiscal year). This was the result of outflows of 128 million yen in dividend payments and outflows of 55 million yen in lease obligation repayments. intangible assets. (Cash Flows from Financing Activities) 3 (4) Outlook Turning to the economic outlook, the rollout of COVID-19 vaccines and development of treatments are positive developments for the full-fledged resumption of economic activities, but risks to the economy, including the shortage of parts and materials such as semiconductors and the impact of Russia’s invasion of Ukraine on resource and other prices, warrant continued attention. We think further lifestyle changes and intensifying labor shortages accompanying full-fledged resumption of economic activities will spur demand for labor-saving and mechanization as well as self-service applications from our group’s key customers in the food service and retail sectors. We think demand for our group’s products will remain strong in these circumstances. However, we also anticipate that Suzumo Machinery’s manufacturing operations will remain impacted by shortages of semiconductors and materials. We are rolling out initiatives to minimize the impact by such means as facilitating a switch to alternative components through changes to product designs. In Japan, we plan to tap into emerging needs to reduce labor through machines that produce takeout sushi, while continuing to develop customers for our rice-serving Fuwarica machine in new market segments such as hotels, inns, employee cafeterias, and hospitals amid mounting awareness of hygiene and concerns about food loss. Overseas, we expect the trend toward mechanization to accelerate and the cooked rice market to grow as Japanese companies expand overseas, and intend to tap into such demand. We also have plans to expand into new business areas. We aim to create a new business offering total solutions for restaurants in collaboration with Japan System Project Co., Ltd., which we made a subsidiary in October 2021. We aim to offer labor-saving and streamlining solutions that go beyond just the kitchen to include dining areas. Our consolidated earnings forecast for the year ending March 31, 2023 is for sales of 13,000 million yen (+12.4% YoY), operating profit of 1,800 million yen (+18.6%), ordinary profit of 1,800 million yen (+16.6%), and profit attributable to owners of parent of 1,315 million yen (+22.9%). 4 2. Approach to Selection of Accounting Standards For the time being, our group policy is to prepare its consolidated financial statements according to Japanese generally accepted accounting principles (JGAAP) in order to facilitate comparability of the accounts between financial periods and companies. The company’s policy is to apply International Financial Reporting Standards (IFRS) when appropriate, taking into consideration conditions in Japan and overseas. 5 3. Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheet Fiscal year ended March 31, 2021 (as of March 31, 2021) (Thousands of yen) Fiscal year ended March 31, 2022 (as of March 31, 2022) 7,342,853 1,321,992 16,709 1,801,579 85,595 10,568,730 3,376,969 (1,883,980) 1,492,988 82,670 (38,016) 44,653 1,800,687 (1,561,169) 239,517 1,125,607 12,503 (9,071) 3,431 2,906,199 — 205,053 205,053 411,383 439,481 172,558 (8,680) 1,014,743 4,125,996 14,694,726 8,276,521 1,287,167 172,495 2,199,405 150,156 12,085,747 3,386,551 (1,959,015) 1,427,535 106,703 (50,782) 55,921 1,726,192 (1,570,971) 155,220 1,125,607 33,757 (15,825) 17,931 2,782,217 41,864 282,871 324,736 403,207 509,644 319,180 (8,680) 1,223,352 4,330,306 16,416,053 Assets Current assets Cash and deposits Notes and accounts receivable – trade Electronically recorded monetary claims – operating Inventories Other Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Goodwill 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 Liabilities Current liabilities Accounts payable – trade Current portion of long-term borrowings Accounts payable – other Accrued expenses Income taxes payable Accrued consumption taxes Provision for bonuses Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Provision for retirement benefits for directors (and other officers) Retirement benefit liability 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 Non-controlling interests Total net assets Total liabilities and net assets Fiscal year ended March 31, 2021 (as of March 31, 2021) (Thousands of yen) Fiscal year ended March 31, 2022 (as of March 31, 2022) 1,382,112 1,775,043 468,338 — 128,935 148,041 231,658 68,321 175,749 161,066 — 965 8,765 1,035,616 69,206 1,114,552 2,496,665 1,154,418 982,960 10,160,882 (52,202) 12,246,058 99,568 (38,752) (122,820) (62,004) 14,006 12,198,060 14,694,726 489,936 46,273 172,673 191,421 323,417 38,453 182,648 330,218 193,180 38 10,105 1,106,754 76,865 1,386,943 3,161,987 1,154,418 986,618 11,102,138 (37,774) 13,205,400 91,095 47,881 (108,177) 30,800 17,864 13,254,066 16,416,053 7 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) (Thousands of yen) Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Consolidated Statement of Income Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Insurance claim income 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 insurance policies Loss on cancellation of leases Restricted stock-related expenses Share of loss of entities accounted for using equity method Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of investment securities Gain on extinguishment of tie-in shares Total extraordinary income Extraordinary losses Loss on retirement of non-current assets 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 8 9,486,060 5,091,604 4,394,456 3,475,279 919,177 941 1,695 — — 14,452 17,089 370 192 2,312 4,886 — — 3,321 3,843 557 15,484 920,782 — 41,516 41,516 174 174 962,124 345,003 (67,147) 277,856 684,268 868 683,399 11,565,869 5,882,229 5,683,640 4,166,465 1,517,174 224 2,852 14,142 12,065 8,160 37,445 736 222 — — 1,371 2,327 4,018 2,162 — 39,000 — 39,000 550 550 10,838 1,543,782 1,582,232 578,608 (68,894) 509,713 1,072,518 2,374 1,070,143 Consolidated Statement 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 Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income (Breakdown) Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) (Thousands of yen) Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) 684,268 27,353 (27,342) 27,837 (9,526) 18,320 702,588 702,226 362 1,072,518 (8,472) 70,860 14,643 17,256 94,288 1,166,806 1,162,948 3,858 9 (3) Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021) (Thousands of yen) Shareholders’ equity Accumulated other comprehensive income Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Non-controlling interests Total accumulated other comprehensive income Total net assets Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury stock Disposal of treasury stock Net changes of items other than shareholders’ equity Total changes during period Balance at end of period 1,154,418 982,960 9,606,827 (22,043) 11,722,162 72,215 (2,388) (150,657) (80,831) 13,644 11,654,975 (129,324) (129,324) 683,399 683,399 (31,105) (31,105) (19) 946 926 (129,324) 683,399 (31,105) 926 27,353 (36,363) 27,837 18,827 362 19,189 — — 554,054 (30,158) 523,895 27,353 (36,363) 27,837 18,827 362 543,085 1,154,418 982,960 10,160,882 (52,202) 12,246,058 99,568 (38,752) (122,820) (62,004) 14,006 12,198,060 10 For the fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022) (Thousands of yen) Shareholders’ equity Accumulated other comprehensive income Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Non-controlling interests Total accumulated other comprehensive income Total net assets 1,154,418 982,960 10,160,882 (52,202) 12,246,058 99,568 (38,752) (122,820) (62,004) 14,006 12,198,060 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury stock Disposal of treasury stock Net changes of items other than shareholders’ equity Total changes during period Balance at end of period (128,888) (128,888) 1,070,143 1,070,143 (249) (249) 3,658 14,677 18,336 (128,888) 1,070,143 (249) 18,336 (8,472) 86,634 14,643 92,804 3,858 96,662 — 3,658 941,255 14,428 959,342 (8,472) 86,634 14,643 92,804 3,858 1,056,005 1,154,418 986,618 11,102,138 (37,774) 13,205,400 91,095 47,881 (108,177) 30,800 17,864 13,254,066 11 (4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in retirement benefit liabilities Increase (decrease) in provision for retirement benefits for directors Interest and dividend income Interest expenses and loss on sale of notes receivable – trade Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of investment securities Loss (gain) on extinguishment of tie-in shares Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accrued expenses Increase (decrease) in consumption tax payable Decrease (increase) in consumption tax receivable Other Subtotal Interest and dividends received Interest paid Payments for sale of notes receivable – trade Income taxes refund Income taxes paid Dividends received from entities accounted for using equity method Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of investment securities Proceeds from sale of investment securities Proceeds from redemption of investment securities Proceeds from purchase of shares of subsidiaries resulting in change in scope of consolidation Purchase of investment securities Purchase of intangible assets Proceeds from collection of loans receivable Payments of guarantee deposits Proceeds from refund of guarantee deposits Purchase of insurance funds Proceeds from maturity of insurance funds Other Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) (Thousands of yen) Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) 962,124 325,716 － － 6,842 80,081 1,340 (2,637) 562 3,843 － (41,516) (34,486) 2,708 184,065 1,618 (3,093) 1,492,337 1,541 3,626 2,795 (370) (192) 1,808 (257,857) 7,101 1,245,622 (5,864) － 100,000 － (380,711) (54,655) 1,662 (3,443) 4,084 (4,839) 0 (512) 1,582,232 291,392 2,203 1,399 6,899 92,244 1,340 (3,076) 958 2,162 (39,000) － (21,789) (293,756) (5,998) 16,492 (48,426) (18,233) 263,613 1,830,655 3,076 (324) (222) 354 (503,646) 10,788 1,340,683 (6,079) 45,500 － 30,313 (45,753) (146,086) 1,662 (140,899) 2,517 (3,553) 5,333 (11,004) (268,051) Net cash provided by (used in) investing activities (344,280) 12 Cash flows from financing activities Repayments of long-term borrowings Repayments of lease liabilities Dividends paid Purchase of treasury shares 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 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries Cash and cash equivalents at end of period Fiscal year ended March 31, 2021 (from April 1, 2020 to of March 31, 2021) (Thousands of yen) Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) － (23,672) (129,324) (31,105) (184,102) (21,611) 695,627 6,603,707 43,517 7,342,853 (9,672) (55,967) (128,888) (249) (194,777) 55,813 933,667 7,342,853 － 8,276,521 13 (5) Notes to Consolidated Financial Statements (Notes on Going Concern Assumption) There is no relevant information. (Changes in Accounting Policies) (Application of Accounting Standard for Revenue Recognition, etc.) We have applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) since the beginning of the current consolidated fiscal year. Based on this standard, revenue is recognized at the time the control of promised goods or services is transferred to the customer, and at the amount expected to be received in exchange for such goods or services. The application of the Accounting Standard for Revenue Recognition, etc. does not affect our earnings results or segment information. The application of the standard is in line with the transitional treatment stipulated in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition. It has no impact on the balance of retained earnings at the beginning of the consolidated fiscal year. Furthermore, as allowed by the transitional treatment stipulated in Article 89-3 of the Accounting Standard for Revenue Recognition, notes to revenue recognition for the previous fiscal year have not been described. (Application of Accounting Standard for Fair Value Measurement) We have applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4, 2019) since the beginning of the current consolidated fiscal year. In accordance with the transitional treatment outlined in Paragraph 19 of the said standard and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019), we have decided to continue to apply the new accounting policies set forth by the Accounting Standard for Fair Value Measurement in the future. The change has no impact on our consolidated financial statements. 14 (Segment information, etc.) (Segment information) (Per-share data) Our group operates in a single segment, the cooked-rice processing equipment business, so segment data are omitted. Fiscal year ended March 31, 2021 (from April1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (from April1, 2021 to March 31, 2022) Shareholders’ equity per share (yen) Earnings per share (yen) 1,890.64 105.76 2,051.63 165.92 Notes: 1. Diluted EPS is omitted because there are no dilutive shares outstanding. 2. The basis for calculating earnings per share is as follows. Fiscal year ended March 31, 2021 (from April1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (from April1, 2021 to March 31, 2022) Earnings per share (yen) Profit attributable to owners of parent (thousands of yen) Profit not attributable to shareholders of common stock (thousands of yen) Profit attributable to shareholders of common stock of parent (thousands of yen) Average number of shares of common stock during period (Subsequent Material Events) There is no relevant information. 683,399 1,070,143 ― 683,399 6,461,987 ― 1,070,143 6,449,859 15 4. Other (1) Changes in directors and corporate auditors At its meeting held on April 14, 2022, the Board of Directors of Suzumo Machinery unofficially decided to make the following changes to our directors and corporate auditors. The changes will be officially decided after approval at the Annual General Meeting of Shareholders scheduled for June 25, 2022. 1. Candidates for director (effective June 25, 2022) Name Current position New position Minako Suzuki Toru Taniguchi Masami Takahashi Akio Takahashi Yasushi Hashimoto Representative director, President Director, Senior Managing Executive Officer Outside director Outside director Outside director (Reappointment) (Reappointment) (Reappointment) (Reappointment) (Reappointment) The changes in the five candidates for director are due to the expiry of their terms of office (the Company plans to reappoint them). 2. Changes to corporate auditors (effective June 25, 2022) (1) Names and positions of candidates for auditor Name Jun Kono Current position New position Head of audit office Full-time corporate auditor (new appointment) Outside corporate auditor (new appointment) Takamasa Nakashima － (2) Names and positions of retiring corporate auditors Name Current position Kazhiko Segawa Outside corporate auditor (full-time) Kimioki Usa Outside corporate auditor 16 3. Brief personal histories of candidates for corporate auditor Name (date of birth) CV, position, and important concurrent positions Number of company shares owned March 2010 Joined Suzumo, general manager, Tokyo plant July 2010 Technical director, Tokyo plant Jun Kono April 2012 General manager of technical management, (July 20, 1962) Tokyo plant 400 0 October 2015 General manager of product department July 2019 Head of audit office (current position) April 1978 Joined Mitsubishi Motors Corporation May 1993 JTUC Research Institute for Advancement of Living Standards, senior researcher (secondment) July 2001 ITOCHU Human Resources Services Inc. (currently ITOCHU Human Resources & General Affairs Services Inc.), general manager of HR Department and Consulting Business Department February 2004 Nihon Aim Co. (currently UT Group Co.) Executive officer, head of HR Department April 2007 Kindai University, Professor, Faculty of Business Administration and Professor, Graduate School of Commerce Takamasa Nakashima (March 31, 1956) 17