パンチ工業（6165） – [Delayed]Summary of Consolidated Financial Results for the Year Ended March31,2022(Based on Japanese GAAP)

Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Financial Results for the Year Ended March 31, 2022 (Based on Japanese GAAP) May 13, 2022Company name: PUNCH INDUSTRY CO., LTD. Stock exchange listing: Tokyo Stock code: 6165 URL http://www.punch.co.jp/ir/ Representative: Chief Executive Officer Tetsuji Morikubo Inquiries: Chief Financial Officer Scheduled date of ordinary general meeting of shareholders: Scheduled date to file Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Takao Murata June 23, 2022 June 24, 2022 June 24, 2022 Yes Yes TEL 03-5753-3130 (for institutional investors and analysts) (Amounts less than one million yen are rounded down)Holding of financial results meeting: (1) Consolidated operating results 1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parentYear ended March 31, 2022 Year ended March 31, 2021 Millions of yen 39,358 32,462 % Millions of yen3,0411,61321.2(8.2)% Millions of yen 3,007 1,676 88.593.0% Millions of yen2,04047779.4 135.1 %327.2–Note: Comprehensive income Year ended March 31, 2022: ¥3,889 million [431.6 %] Year ended March 31, 2021: ¥731 million [–%] Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equityYear ended March 31, 2022 Year ended March 31, 2021 Yen 93.3621.90Yen84.3621.78%14.24.0% 11.2 6.7 Note: Share of profit (loss) of entities accounted for using equity method Year ended March 31, 2022: Year ended March 31, 2021: ¥– million ¥– million (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of March 31, 2022 As of March 31, 2021 Millions of yen28,77424,702Millions of yen16,30712,436% 56.5 50.2 Reference: Equity As of March 31, 2022: As of March 31, 2021: ¥16,264 million ¥12,398 million (3) Consolidated cash flows Year ended March 31, 2022 Year ended March 31, 2021 Cash flows from operating activitiesCash flows from investing activitiesCash flows from financing activities Cash and cash equivalents at end of periodMillions of yen2,9412,942Millions of yen(1,099)(670)Millions of yen (1,600)(1,684)Millions of yen4,6693,962%7.75.0Yen737.40568.26 2. Cash dividends Year ended March 31, 2021 Year ended March 31, 2022 Year ending March 31, 2023 (Forecast) Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-endTotal Total cash dividends (Total) Dividend payout ratio (Consolidated)Ratio of dividends to net assets (Consolidated) Yen – – – Yen0.004.006.50Yen–––Yen2.009.006.50Yen Millions of yen 2.0013.0013.0043 285 %9.113.913.7 3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per shareMillions of yen% Millions of yen% Millions of yen% Millions of yen % Six months ending September 30, 2022 Full year 21,50010.1 1,660(6.1)1,640(5.5)1,070 (15.0)43,50010.5 3,3008.53,2708.72,100 2.9 %0.42.0Yen48.5194.99No Yes No No (1) Changes in significant subsidiaries during the year ended March 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: Note: For details, please refer to “3. Consolidated Financial Statements Significant Notes Thereto, (5) Notes on consolidated financial No statements, Changes in accounting policies” on page 12 of the attached material. (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of March 31, 2022 22,332,400 shares As of March 31, 2021 22,122,400 shares As of March 31, 2022 275,868 shares As of March 31, 2021 303,406 shares Year ended March 31, 2022 21,858,118 shares Year ended March 31, 2021 21,813,902 sharesNumber of treasury shares at the end of the period Average number of shares during the period Notes (Reference) Overview of non-consolidated financial results Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (1) Non-consolidated operating results Percentages indicate year-on-year changesYear ended March 31, 2022 Year ended March 31, 2021 Net sales Operating profit Ordinary profit Profit Millions of yen 15,092 13,240 % Millions of yen45(402)14.0(13.5)% Millions of yen ––2,618 168.9 34.6 973 % Millions of yen2,228130%––Earnings per share Diluted earnings per shareYen101.935.96Yen92.105.93Year ended March 31, 2022 Year ended March 31, 2021 (2) Non-consolidated financial position As of March 31, 2022 As of March 31, 2021 Reference: Equity As of March 31, 2022: As of March 31, 2021: ¥5,834 million ¥3,624 million Total assets Net assets Equity ratio Net assets per share Millions of yen14,23512,672Millions of yen5,8603,651% 41.0 28.6 Yen264.54166.12 * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Appropriate use of financial forecasts; other special items (Caution concerning forward-looking statements) Forward-looking statements provided in this document, including financial forecasts, are based on the information currently available to the Company and certain assumptions considered reasonable. Such statements are included without any guarantee as to their future achievement. Actual results, etc. may differ materially from the forecasts depending on various factors. For the related matters concerning the financial forecasts, please refer to “1. Overview of Operating Results, Etc., (4) Future prospects” on page 3 of the attached material. (The Financial Results Briefing) The company has scheduled an online briefing for institutional investors and analysts on Friday, May 27, 2022. Attached Materials Index 1. Overview of Operating Results, Etc. …………………………………………………………………………………………………….. 2 (1) Overview of operating results for the period ………………………………………………………………………………………. 2 (2) Overview of financial position for the period ……………………………………………………………………………………… 2 (3) Overview of cash flows for the period……………………………………………………………………………………………….. 3 (4) Future prospects ……………………………………………………………………………………………………………………………… 3 2. Basic Policy Regarding Selection of Accounting Standards ……………………………………………………………………… 3 3. Consolidated Financial Statements and Significant Notes Thereto ……………………………………………………………. 4 (1) Consolidated balance sheets …………………………………………………………………………………………………………….. 4 (2) Consolidated statements of income and consolidated statements of comprehensive income ……………………… 6 Consolidated statements of income …………………………………………………………………………………………………… 6 Consolidated statements of comprehensive income …………………………………………………………………………….. 7 (3) Consolidated statements of changes in equity …………………………………………………………………………………….. 8 (4) Consolidated statements of cash flows …………………………………………………………………………………………….. 10 (5) Notes on consolidated financial statements ………………………………………………………………………………………. 12 Notes related to the going concern assumption …………………………………………………………………………………. 12 Changes in accounting policies ………………………………………………………………………………………………………. 12 Segment information, etc. ………………………………………………………………………………………………………………. 13 Per share information …………………………………………………………………………………………………………………….. 15 Significant events after the reporting period ……………………………………………………………………………………… 15 4. Non-consolidated Financial Statements and Significant Notes Thereto ……………………………………………………. 16 (1) Non-consolidated balance sheets …………………………………………………………………………………………………….. 16 (2) Non-consolidated statements of income …………………………………………………………………………………………… 18 (3) Non-consolidated statements of changes in equity …………………………………………………………………………….. 19 11. Overview of Operating Results, Etc. (1) Overview of operating results for the period The global economy during the current fiscal year saw the progress of normalization of economic and social activities led by developed countries, resulting from the balance of the measures against the novel coronavirus disease (hereinafter “COVID-19”) and the relaxation of restrictions on economic activity. However, progress was halted by developments such as the emergence of new variants and their spread, the increase of geopolitical risk, and the disturbance of supply chains. Harsh conditions continue. In the manufacturing sector, the future remains uncertain for reasons including the marked increase of crude oil and raw material costs and the shortage of certain components, especially semiconductor components. In such an environment, the Group worked to rebuild financially from the negative effects of the prolonged US-China trade friction and COVID-19 with its Mid-term Business Plan “Value Creation (VC) 2020 Plus” that had started in April 2020. The Group achieved its goal of a V-shaped recovery. The consolidated operating results for the current fiscal year surpassed those of the previous fiscal year in all regions, riding on the general conditions of recovery from the spread of COVID-19. Net sales amounted to ¥14,020 million (up 13.6% year on year) for Japan; ¥20,956 million (up 24.1% year on year) for China; ¥1,740 million (up 26.4% year on year) for Southeast Asia; and ¥2,641 million (up 42.2% year on year) for Europe and the United States. This brought consolidated net sales to ¥39,358 million (up 21.2% year on year). All results by industry also surpassed those of the previous fiscal year. The results were ¥16,442 million (up 20.2% year on year) for automobile; ¥8,043 million (up 27.4% year on year) for electronic devices & semiconductors; ¥4,192 million (up 7.8% year on year) for consumer electronics & precision equipment; and ¥10,679 million (up 24.5% year on year) for other. As for profits, the Company posted the highest since it was listed. The rise in selling, general and administrative expenses accompanying the increase in sales was countered by the improved cost rate due to effects of increased revenue and raised factory operation and other factors such as reductions for depreciation as a result of recording impairment losses of past years. Operating profit was ¥3,041 million (up 88.5% year on year); ordinary profit was ¥3,007 million (up 79.4% year on year); and profit attributable to owners of parent was ¥2,040 million (up 327.2% year on year). (2) Overview of financial position for the period Assets Liabilities Net Assets Total assets as of the end of the current fiscal year amounted to ¥28,774 million, an increase of ¥4,071 million compared with the end of the previous fiscal year. This was mainly due to an increase of trade receivables. Total liabilities amounted to ¥12,466 million, an increase of ¥200 million compared with the end of the previous fiscal year. This was mainly due to an increase in trade payables and a decrease in interest-bearing debt. Total net assets amounted to ¥16,307 million, an increase of ¥3,870 million compared with the end of the previous fiscal year. This was mainly due to an increase of retained earnings as a result of recording profit attributable to owners of parent and an increase of foreign currency translation adjustment. 2 (3) Overview of cash flows for the period Cash and cash equivalents as of the end of the current fiscal year increased by ¥707 million compared to the end of the previous fiscal year and amounted to ¥4,669 million. Cash flows from operating activities Net cash provided by operating activities for the current fiscal year amounted to ¥2,941 million (compared to ¥2,942 million provided for the previous fiscal year). This was mainly due to profit before income taxes of ¥2,847 million and non-cash items such as impairment losses of ¥159 million and depreciation of ¥971 million, as well as an increase of trade receivables by ¥286 million and income taxes paid of ¥732 million. Cash flows from investing activities Net cash used in investing activities for the current fiscal year amounted to ¥1,099 million (compared to ¥670 million used for the previous fiscal year). This was mainly due to purchase of property, plant and equipment of ¥999 million. Cash flows from financing activities Net cash used in financing activities for the current fiscal year amounted to ¥1,600 million (compared to ¥1,684 million used for the previous fiscal year.) This was mainly due to net increase (decrease) of short-term borrowings of ¥739 million, repayments of long-term borrowings of ¥653 million, and dividends paid of ¥131 million. (4) Future prospects The environment surrounding the management of the Group is one of general recovery, of the normalization of economic and social activities led by developed countries resulting from the balance of the measures against COVID-19 and the relaxation of restrictions on economic activity. In the manufacturing sector, however, the future is still uncertain for reasons including the marked increase of crude oil and raw material costs and the shortage of certain components, especially semiconductor components, as well as the threat of COVID-19, which continues to produce variants and shows no sign of abating. Under this recognition of the current state, the Company announced its three-year mid-term business plan “VC 2024” to work on initiatives that were not completed under the previous mid-term business plan and to work with new policies to increase corporate value. This plan, which commenced in April 2022, declared that always being the “customer’s first choice” is the Company’s “ideal state” and poised the use of “automation and labor-saving demand as the new growth engine.” With “Expansion of new and existing businesses,” “Strengthening the production system,” and “Strengthening R&D” as the three priority initiatives, the Company will pursue “DX promotion,” “Financial strategy,” and “Sustainability” to strengthen the management foundations that will support the pursuit of the initiatives. The prospective consolidated financial performance for the following fiscal year (ending March 31, 2023) forecasted by the company is an increase in revenue and profit. The company forecasts net sales of ¥43,500 million (an increase of 10.5% year on year); operating profit of ¥3,300 million (an increase of 8.5% year on year); ordinary profit of ¥3,270 million (an increase of 8.7% year on year); and profit attributable to owners of parent of ¥2,100 million (an increase of 2.9% year on year). The foregoing forecast of financial results have been prepared based on information currently obtainable by the Company as of the publication date of this document, and actual financial performance may differ from the forecast values due to various factors that arise. 2. Basic Policy Regarding Selection of Accounting Standards The Group prepares its consolidated financial statements based on Japanese GAAP. The Company is considering the voluntary adoption of International Financial Reporting Standards (IFRS), but the adoption date is yet to be determined. The appropriate decision will be made by taking into account the coming state of affairs in Japan and the globe. 33. Consolidated Financial Statements and Significant Notes Thereto (1) Consolidated balance sheets As of March 31, 2021 As of March 31, 2022 (Thousands of yen) 4,092,012 1,542,116 8,087,626 2,053,536 532,853 1,378,841 429,129 (55,416) 18,060,701 5,351,094 (3,830,312) 1,520,782 14,824,703 (11,570,501) 3,254,202 2,332,870 (1,922,961) 409,908 775,341 60,862 255,554 (82,115) 173,438 6,194,535 175,119 175,119 110,804 178,857 (17,486) 272,175 6,641,830 24,702,531 4,816,2712,043,2589,191,8122,408,754813,1411,569,159485,384(48,002)21,279,7805,905,167(4,140,358)1,764,80916,310,582(12,703,869)3,606,7122,514,054(2,081,516)432,538778,847168,440392,570(131,311)261,2597,012,607177,903177,903118,693198,737(13,623)303,8077,494,31828,774,098Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures 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 Construction in progress Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Other Total intangible assets Investments and other assets Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 4 As of March 31, 2021 As of March 31, 2022 (Thousands of yen)Liabilities Current liabilities Notes and accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Current portion of long-term borrowings Provision for bonuses for directors (and other officers) Income taxes payable Accrued expenses Provision for bonuses Other Total current liabilities Non-current liabilities Long-term borrowings 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 Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 2,342,543 954,991 2,007,163 1,317,488 270,698 1,155,002 271,444 – 1,135,535 9,454,866 1,251,698 1,083,928 475,800 2,811,426 12,266,293 2,897,732 2,590,646 7,016,866 (149,905) 12,355,340 119,846 (76,306) 43,540 26,970 10,386 12,436,237 24,702,531 2,738,7251,078,0591,774,655710,978384,1261,540,016400,26517,1831,357,04210,001,052907,8901,145,220412,7262,465,83612,466,8882,944,7762,512,1899,057,592(136,301)14,378,2561,962,065(75,761)1,886,30326,13016,51816,307,20928,774,098 5(2) Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income Fiscal year ended March 31, 2021(Thousands of yen)Fiscal year ended March 31, 2022 32,462,017 23,375,159 9,086,857 7,473,695 1,613,162 42,659 27,338 249 179,533 44,645 294,425 107,414 75,231 48,422 231,068 1,676,518 1,669 81,581 83,250 15,011 730,296 745,307 1,014,462 539,799 (4,133) 535,666 478,796 1,081 477,714 39,358,63427,913,72411,444,9108,403,3083,041,60153,04727,879–20,54228,960130,43053,90973,22537,243164,3783,007,6536,035–6,0355,953159,926165,8802,847,808805,177(2,994)802,1832,045,6244,8992,040,725Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Gain on sale of scraps Dividend income Subsidies for employment adjustment Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on reversal of reserve for loss on dissolution of employee’s pension fund Total extraordinary income Extraordinary losses Loss on sale and retirement of non-current assets Impairment losses Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Net profit Profit attributable to non-controlling interests Profit attributable to owners of parent 6Consolidated statements of comprehensive income Fiscal year ended March 31, 2021(Thousands of yen)Fiscal year ended March 31, 2022Net profit Other comprehensive income Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 478,796 216,202 36,614 252,817 731,613 731,163 450 2,045,6241,843,4525441,843,9963,889,6213,883,4896,132 7(3) Consolidated statements of changes in equity Fiscal year ended March 31, 2021 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Thousands of yen)Total shareholders’ equity Balance at beginning of period 2,897,732 2,631,4896,539,152(154,543) 11,913,830 (43,619)2,776477,7144,638 (43,619)477,7147,414– 2,897,732 (40,842)2,590,646477,7147,016,8664,638 441,509(149,905) 12,355,340 Changes during period Issuance of new shares Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Accumulated other comprehensive income Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period (96,987) (112,920)(209,908)33,4799,936 11,747,338 Changes during period Issuance of new shares Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 450 450 (43,619) 477,714 7,414 247,389 688,899 216,834 36,614253,448(6,509)216,834 119,846 36,614(76,306)253,44843,540(6,509)26,97010,386 12,436,237 8Fiscal year ended March 31, 2022 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity Balance at beginning of period 2,897,732 2,590,6467,016,866(149,905) 12,355,340Changes during period Issuance of new shares Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 47,044 47,044(131,013)2,040,7255,51113,603 19,11547,044 2,944,776 (78,457)2,512,1892,040,7259,057,59213,603 (136,301) 2,022,91514,378,256(Thousands of yen)Total shareholders’ equity 94,088(131,013)2,040,725 Accumulated other comprehensive income Foreign currency translation adjustment Total Remeasurements of defined benefit accumulated other plans comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 119,846 (76,306)43,54026,97010,386 12,436,237 Changes during period Issuance of new shares Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 1,842,218 1,842,218 1,962,065 5445441,842,7631,842,763(839)(839)6,132 1,848,056 6,132 3,870,972 (75,761)1,886,30326,13016,518 16,307,209 94,088 (131,013) 2,040,725 19,115 9(4) Consolidated statements of cash flows Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Increase (decrease) in retirement benefit liability Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in allowance for doubtful accounts Increase (decrease) in reserve for loss on dissolution of employee’s pension fund Interest and dividend income Interest expenses Subsidies for employment adjustment Foreign exchange losses (gains) Loss (gain) on sale and retirement of non-current assets Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable – other, and accrued expenses Other, net Subtotal Interest paid Interest and dividends received Subsidies for employment adjustment received Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Net decrease (increase) in time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Proceeds from sale of intangible assets Proceeds from sale of investment securities Proceeds from collection of long-term loans receivable Long-term loan advances Other, net Net cash provided by (used in) investing activities Fiscal year ended March 31, 2021(Thousands of yen)Fiscal year ended March 31, 2022 1,014,462 968,873 730,296 56,245 2,582 – (34,938) (92,819) (42,908) 107,414 (179,533) (43,289) 13,341 433,563 276,749 (250,751) 280,654 100,979 3,340,922 42,908 (122,869) 179,533 (497,718) 2,942,775 (106,212) (502,981) 9,879 (80,647) 315 14,201 8,519 (13,830) 555 (670,198) 2,847,808971,746159,92661,324128,34317,183(16,968)–(53,047)53,909(20,542)699(81)(286,768)(417,353)25,882168,13526,7833,666,98253,047(66,319)20,542(732,778)2,941,474(17,212)(999,260)10,997(73,376)––9,948(4,650)(26,006)(1,099,559)10 Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Repayments of installment payables Repayments of lease liabilities Proceeds from issuance of share acquisition rights Proceeds from issuance of shares Dividends paid Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Fiscal year ended March 31, 2021(Thousands of yen)Fiscal year ended March 31, 2022 – – 9 (338,342) 50,000 (1,220,016) (80,111) (52,643) (43,619) (1,684,722) 8,185 596,040 3,366,094 3,962,135 (739,954)(653,228)(81,889)(94,166)5,75093,605(131,013)–6(1,600,888)466,019707,0453,962,1354,669,180 11(5) Notes on consolidated financial statements Notes related to the going concern assumption There is nothing to report. 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) and relevant ASBJ regulations from the beginning of the current fiscal year, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at the amount expected to be received upon exchange of said goods or services. It has applied the alternative accounting treatment provided for in paragraph 98 of the “Implementation Guidance on Accounting Standard for Revenue Recognition” and, for domestic sales of merchandise or finished goods, recognizes revenue at the time the said merchandise or finished goods is shipped if the time elapsed from the time the product is shipped to the time the control of said goods is transferred to the customer is of an ordinary duration. The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The opening balance of retained earnings of the current fiscal year was adjusted with the cumulative effect of applying the new accounting policy retrospectively prior to the beginning of the current fiscal year, and the new accounting policy was applied from the opening balance of the current fiscal year as a change in the accounting policy. There is no resulting effect on the gains or losses of the current fiscal year. Neither is there an effect on the opening balance of retained earnings of the current fiscal year. 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) and relevant ASBJ regulations from the beginning of the current fiscal year under review, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard for Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect of the foregoing on the consolidated financial statements of the current fiscal year. 12Segment information, etc. [Segment Information] This information is omitted because the Group has only one segment, the parts of molds and dies business. [Related Information] Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) 1. Information by Finished Goods or Service This information is omitted because the Group’s net sales to external customers in one category of finished goods or service exceeds 90% of net sales on the consolidated statement of income. 2. Information by Region (1) Net sales Japan China Other(Thousands of yen)Total12,338,335 16,888,743 3,234,938 32,462,017 Note: Sales are categorized by country or region based on the customer’s location. (2) Property, plant and equipment Japan China Other(Thousands of yen)Total1,527,010 4,026,494 641,030 6,194,535 3. Information by Major Customer Information by major customer is omitted because, compared to net sales to all external customers, net sales to a specific customer does not amount to 10% of the net sales on the consolidated statement of income. Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) 1. Information by Finished Goods or Service This information is omitted because the Group’s net sales to external customers in one category of finished goods or service exceeds 90% of net sales on the consolidated statement of income. 2. Information by Region (1) Net sales Japan China Other(Thousands of yen)Total14,020,213 20,956,488 4,381,932 39,358,634 Note: Sales are categorized by country or region based on the customer’s location. (2) Property, plant and equipment Japan China Other(Thousands of yen)Total1,341,296 5,056,548 614,762 7,012,607 3. Information by Major Customer Information by major customer is omitted because, compared to net sales to all external customers, net sales to a specific customer does not amount to 10% of the net sales on the consolidated statement of income. 13[Information on Impairment Losses on Non-Current Assets by Reporting Segment] Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Consolidated impairment losses on non-current assets recorded in the current fiscal year amounted to ¥730,296 thousand. The information is not presented by reporting segment because the Group has only one segment, the parts of molds and dies business. Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Consolidated impairment losses on non-current assets recorded in the current fiscal year amounted to ¥159,926 thousand. The information is not presented by reporting segment because the Group has only one segment, the parts of molds and dies business. [Information on Amortization and Unamortized Balance of Goodwill by Reporting Segment] There is nothing to report. [Information on Gain on Bargain Purchase by Reporting Segment] There is nothing to report. 14Note: 1. The calculations for the earnings per share and the diluted earnings per share are based on the following. Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 477,714 2,040,725 (Yen)737.40 93.36 84.36 2,040,725 21,858 – – – 2,332 [2,332] 568.26 21.90 21.78 – 477,714 21,813 120 [120] – – Per share information Net assets per share Earnings per share Diluted earnings per share Earnings per share Profit attributable to owners of parent (thousands of yen) (thousands of yen) Profit not attributable to common shareholders Profit attributable to owners of parent pertaining to common shares (thousands of yen) Average number of common shares during the period (thousand shares) Diluted earnings per share Adjustments to profit attributable to owners of parent (thousands of yen) Number of increased common shares (thousand shares) [Share acquisition rights (thousand shares)] Overview of dilutive shares not included in calculating diluted earnings per share due to no dilutive effect Significant events after the reporting period There is nothing to report. 154. Non-consolidated Financial Statements and Significant Notes Thereto (1) Non-consolidated balance sheets As of March 31, 2021 As of March 31, 2022 (Thousands of yen) Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Advance payments to suppliers Prepaid expenses Accounts receivable from subsidiaries and associates – other Short-term loans receivable from subsidiaries and associates Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings Structures Vehicles Land Machinery and equipment Tools, furniture and fixtures Total property, plant and equipment Intangible assets Total intangible assets Investments and other assets Investment securities Shares of subsidiaries and associates Investments in capital Investments in capital of subsidiaries and associates Long-term loans receivable Distressed receivables Long-term loans receivable from subsidiaries and associates Long-term loans receivable from employees Prepaid pension costs Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 16 392,839 540,718 2,189,951 775,086 91,833 253,102 1 49,423 1,100,436 45,430 90,726 (3,829) 5,525,722 0 0 0 0 – 386 2,045,665 6,295 3,785,672 7,063 2,980 2,025,993 10,375 94,597 76,792 (2,036,480) 6,019,340 7,147,052 12,672,775 259,786665,1232,289,892734,626115,821266,99753,0882,455,89987,429(1,975)6,926,689––0000–3862,045,6656,2953,995,6721,6031,8652,141,8259,81967,50371,824(2,145,778)6,196,6837,308,49114,235,180487,758 471,854639,951 1,127,712 639,9511,111,808 As of March 31, 2021 As of March 31, 2022 (Thousands of yen) 38,899 954,991 989,421 2,007,163 1,307,480 616,477 103,335 158,520 22,323 198 246,032 – 90,942 6,535,785 1,217,544 190 991,183 112,238 164,357 2,485,514 9,021,300 2,897,732 431,094 2,159,551 2,590,646 63,970 210,000 (1,987,939) (1,713,969) (149,905) 3,624,504 26,970 3,651,474 12,672,775 23,4991,078,059999,7381,774,655700,970722,535110,054305,43022,260–374,01017,183148,0916,276,488883,7441841,019,124114,09380,6512,097,7998,374,2872,944,776491,2402,020,9482,512,18963,970210,000240,128514,098(136,301)5,834,76226,1305,860,89314,235,180Liabilities Current liabilities Notes payable – trade Electronically recorded obligations – operating Current portion of long-term borrowings Accounts payable – trade Short-term borrowings Accounts payable – other Accrued expenses Income taxes payable Deposits received Unearned revenue Provision for bonuses Provision for bonuses for directors (and other officers) Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Provision for retirement benefits Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Legal capital surplus Other capital surplus Total capital surplus Retained earnings Legal retained earnings Other retained earnings General reserve Total retained earnings Treasury shares Total shareholders’ equity Share acquisition rights Total net assets Total liabilities and net assets Retained earnings brought forward 17 Fiscal year endedMarch 31, 2021(Thousands of yen)Fiscal year endedMarch 31, 202213,240,271 9,745,000 3,495,270 3,897,965 (402,695) 65,500 1,335,973 156,291 1,557,766 87,547 25,471 28,938 39,356 181,314 973,756 81,581 108 – 81,689 7,997 730,058 738,056 317,390 187,521 (246) 187,274 130,115 15,092,21711,051,2604,040,9573,995,12845,82822,3582,794,45620,7542,837,56937,122–201,47126,289264,8832,618,514–1,77491,01692,790488159,926160,4142,550,890322,828(6)322,8222,228,068(2) Non-consolidated statements of income Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit (loss) Non-operating income Interest income Dividend income Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Other Total non-operating expenses Ordinary profit Extraordinary income Provision of allowance for doubtful accounts Gain on reversal of reserve for loss on dissolution of employee’s pension fund Gain on sale of non-current assets Reversal of allowance for doubtful accounts Loss on sale and retirement of non-current assets Total extraordinary income Extraordinary losses Impairment losses Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Net profit 18(3) Non-consolidated statements of changes in equity Fiscal year ended March 31, 2021 (Thousands of yen)Shareholders’ equity Capital surplus Share capitalLegal capital surplus Other capital surplus Total capital surplus Legal retained earnings General reserve 2,897,7322,626,732 4,7562,631,48963,970210,000 (2,118,055)(1,844,085)Retained earnings Other retained earnings Total retained earnings Retained earnings brought forward 130,115 130,115Balance at end of period 2,897,732431,094 2,159,5512,590,64663,970210,000 (1,987,939)(1,713,969)–(2,195,638)2,154,795(40,842)–– 130,115 130,115 Balance at beginning of period Changes during period Issuance of new shares Transfer from legal capital surplus to other capital surplus Dividends of surplus Net profit Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at beginning of period Changes during period Issuance of new shares Transfer from legal capital surplus to other capital surplus Dividends of surplus Net profit Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period (2,200,000)2,200,000–4,361 (47,981)(43,619)2,7762,776 – Shareholders’ equity Treasury shares Total shareholders’ equity Share acquisition rights Total net assets(154,543)3,530,593 33,4793,564,072(43,619)130,115 4,6387,414 –(43,619)130,1157,414 (6,509)(6,509)Balance at end of period (149,905)3,624,504 26,9703,651,4744,63893,910 (6,509)87,401 19Fiscal year ended March 31, 2022 (Thousands of yen)Shareholders’ equity Capital surplus Share capitalLegal capital surplus Other capital surplus Total capital surplus Legal retained earnings General reserve 2,897,732431,094 2,159,5512,590,64663,970210,000 (1,987,939)(1,713,969)Retained earnings Other retained earnings Total retained earnings Retained earnings brought forward 2,228,068 2,228,06847,04460,145 (138,603)(78,457)–– 2,228,068 2,228,068Balance at end of period 2,944,776491,240 2,020,9482,512,18963,970210,000 240,128 514,09847,04447,044 47,04413,101 (144,114)(131,013)5,5115,511 Shareholders’ equity Treasury shares Total shareholders’ equity Share acquisition rights Total net assets(149,905)3,624,504 26,9703,651,47494,088 94,088(131,013)2,228,068 13,60319,115 (131,013)2,228,06819,115(839)(839) 13,6032,210,258 (839)2,209,418Balance at end of period (136,301)5,834,762 26,1305,860,893 Balance at beginning of period Changes during period Issuance of new shares Transfer from legal capital surplus to other capital surplus Dividends of surplus Net profit Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at beginning of period Changes during period Issuance of new shares Transfer from legal capital surplus to other capital surplus Dividends of surplus Net profit Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period 20