Consolidated Financial Statements | Yokogawa Electric Corporation

Consolidated balance sheets
Profit and loss statement
Cash flow statement

(Millions of yen)
Asset
	FY2023 (As of March 31, 2024)	FY2024 (As of March 31, 2025)
Current assets
Cash and deposits	139,884	188,754
Notes receivable - trade	14,278	11,309
Accounts receivable - trade	142,569	140,063
Contract assets	85,856	87,118
Merchandise and finished goods	21,719	20,174
Work in process	5,857	5,791
Raw materials and supplies	27,138	24,962
Other	24,148	22,941
Allowance for doubtful accounts	(6,280)	(4,801)
Total current assets	455,173	496,313
Non-current assets
Property, plant and equipment
Buildings and structures, net	47,022	43,161
Machinery, equipment and vehicles, net	10,178	11,001
Tools, furniture and fixtures, net	7,261	7,483
Land	15,852	13,581
Leased assets, net	10	32
Right-of-use assets, net	8,598	9,677
Construction in progress	2,113	2,794
Total property, plant and equipment	91,038	87,732
Intangible assets
Software	17,512	21,387
Goodwill	5,971	6,563
Other	20,283	25,117
Total intangible assets	43,767	53,068
Investments and other assets
Investment securities	65,615	64,290
Deferred tax assets	10,526	10,547
Other	7,337	7,528
Allowance for doubtful accounts	(593)	(1,193)
Total investments and other assets	82,887	81,171
Total non-current assets	217,693	221,972
Total assets	672,866	718,285

(Millions of yen)
Liabilities
	FY2023 (As of March 31, 2024)	FY2024 (As of March 31, 2025)
Current liabilities
Notes and accounts payable - trade	31,818	34,730
Electronically recorded obligations - operating	9,657	7,509
Short-term borrowings	295	327
Accounts payable - other	21,274	21,444
Income taxes payable	9,795	12,730
Contract liabilities	51,588	59,524
Lease liabilities	2,780	2,584
Provision for bonuses	23,539	22,526
Provision for loss on construction contracts	8,746	8,847
Other	27,036	27,559
Total current liabilities	186,534	197,784
Non-current liabilities
Long-term borrowings	24,000	24,025
Deferred tax liabilities	3,864	4,916
Retirement benefit liability	6,048	6,726
Lease liabilities	5,808	7,115
Other	1,848	1,996
Total non-current liabilities	41,569	44,779
Total liabilities	228,103	242,564

Net assets
	FY2023 (As of March 31, 2024)	FY2024 (As of March 31, 2025)
Shareholders' equity
Share capital	43,401	43,401
Capital surplus	54,464	54,575
Retained earnings	303,979	342,573
Treasury shares	(19,357)	(23,251)
Total shareholders' equity	382,487	417,298
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	21,953	21,599
Deferred gains or losses on hedges	43	(38)
Foreign currency translation adjustment	32,831	28,576
Remeasurements of defined benefit plans	(674)	419
Total accumulated other comprehensive income	54,154	50,557
Non-controlling interests	8,120	7,865
Total net assets	444,763	475,721
Total liabilities and net assets	672,866	718,285

(Millions of yen)
	FY2023 (As of March 31, 2024)	FY2024 (As of March 31, 2025)
Net sales	540,152	562,404
Cost of sales	285,260	294,959
Gross profit	254,891	267,444
Selling, general and administrative expenses	176,091	183,921
Operating profit	78,800	83,523
Non-operating income
Interest income	1,887	2,678
Dividend income	957	1,239
Foreign exchange gains	1,049	－
Share of profit of entities accounted for using equity method	3,163	2,058
Miscellaneous income	1,396	1,060
Total non-operating income	8,454	7,036
Non-operating expenses
Interest expenses	1,179	1,214
Foreign exchange losses	－	2,074
Provision of allowance for doubtful accounts	54	－
Commission expenses	305	71
Miscellaneous losses	1,617	1,848
Total non-operating expenses	3,156	5,207
Ordinary profit	84,098	85,351
Extraordinary income
Gain on sale of non-current assets	39	2,916
Gain on sale of investment securities	16,990	645
Total extraordinary income	17,030	3,562
Extraordinary losses
Loss on sale of non-current assets	10	1,236
Loss on retirement of non-current assets	193	396
Impairment losses ^*	* 11,473	* 3,987
Loss on valuation of investment securities	1,041	3,130
Loss on sale of investments in capital of subsidiaries and associates	259	－
Loss on termination of retirement benefit plan	107	1,338
Business restructuring expenses	283	297
Total extraordinary losses	13,368	10,387
Profit before income taxes	87,760	78,527
Income taxes - current	22,531	22,910
Income taxes - deferred	(763)	411
Total income taxes	21,768	23,321
Profit	65,992	55,206
Profit attributable to non-controlling interests	4,306	3,082
Profit attributable to owners of parent	61,685	52,123

* Impairment Losses
Fiscal year ended March 31, 2024 (April 1, 2023-March 31, 2024)
Impairment losses were recorded for the following asset groups.

(Millions of yen)

Location	Use	Category	Impairment losses
United States	Business assets	Tools, furniture and fixtures	38
		Right-of-use assets	103
		Goodwill	3,563
		Other intangible assets	3,701
Germany	Business assets	Goodwill	3,104
Germany	Business assets	Other intangible assets	881
Japan	Business assets	Machinery, equipment and vehicles	46
		Other intangible assets	1
		Other intangible assets	4
	Idle assets	Machinery, equipment and	28
		Total	11,473

The Group's business assets are grouped based on management accounting classification.
The book values, mainly with respect to the goodwill, etc. arising at the time of acquisition of U.S. based consolidated subsidiaries PXiSE Energy Solutions, LLC and Yokogawa Fluence Analytics, Inc., and Germany based consolidated subsidiary Yokogawa Insilico Biotechnology GmbH, were reduced to their respective recoverable amounts and the amount of said reductions have been recorded as impairment losses on account of the business results of the relevant companies falling below the initially forecasted business plans.
The recoverable amounts for the said asset groups are measured by value in use and are calculated by discounting future cash flows at a rate of 10%.

Fiscal year ended March 31, 2025 (April 1, 2024-March 31, 2025)
Impairment losses were recorded for the following asset groups.

(Millions of yen)

Location	Use	Category	Impairment losses
United States	Business assets	Machinery, equipment and vehicles	97
		Tools, furniture and fixtures	2
		Right-of-use assets	25
		Software	0
		Goodwill	2,222
		Other intangible assets	1,480
Japan	Business assets	Tools, furniture and fixtures	15
	Business assets	Software	5
	Idle assets	Buildings and structures	115
	Idle assets	Land	22
		Total	3,987

The Group's business assets are grouped based on management accounting classification.
The book values mainly with respect to the goodwill, etc. arising at the time of acquisition of the U.S. based consolidated subsidiary, Yokogawa Fluence Analytics, Inc. were reduced to their respective recoverable amounts and the amounts of said reductions have been recorded as impairment losses because the business performance of the company is expected to fall below the initially forecasted business plans.
The recoverable amounts for the said asset groups are measured by value in use and are calculated by discounting future cash flows at a rate of 10%.

(Millions of yen)
	FY2023 (As of March 31, 2024)	FY2024 (As of March 31, 2025)
Cash flows from operating activities
Profit before income taxes	87,760	78,527
Depreciation	20,272	21,064
Impairment losses	11,473	3,987
Amortization of goodwill	2,298	1,800
Increase (decrease) in allowance for doubtful accounts	(782)	(759)
Increase (decrease) in provision for bonuses	1,476	(810)
Increase (decrease) in retirement benefit liability	378	629
Interest and dividend income	(2,844)	(3,917)
Interest expenses	1,179	1,214
Share of loss (profit) of entities accounted for using equity method	(3,163)	(2,058)
Loss (gain) on sale of investment securities	(16,990)	(645)
Loss (gain) on sale of non-current assets	(29)	(1,680)
Loss (gain) on valuation of investment securities	1,041	3,130
Loss on termination of retirement benefit plan	107	1,338
Decrease (increase) in trade receivables	(17,364)	10,214
Decrease (increase) in inventories	(4,103)	5,256
Increase (decrease) in trade payables	(1,819)	1,566
Increase (decrease) in accounts payable - other	1,203	(891)
Increase (decrease) in accrued expenses	175	954
Other, net	2,120	(5,856)
Subtotal	82,390	113,062
Interest and dividends received	3,789	3,751
Interest paid	(1,143)	(1,267)
Income taxes refund (paid)	(21,203)	(16,521)
Net cash provided by (used in) operating activities	63,833	99,025
Cash flows from investing activities
Payments into time deposits	(8,862)	(11,313)
Proceeds from withdrawal of time deposits	8,973	6,984
Purchase of property, plant and equipment	(8,718)	(10,845)
Proceeds from sale of property, plant and equipment	152	6,628
Purchase of intangible assets	(15,410)	(16,069)
Purchase of investment securities	(1,276)	(782)
Proceeds from sale and redemption of investment securities	28,266	796
Purchase of shares of subsidiaries resulting in change in scope of consolidation	－	(4,471)
Other, net	(469)	432
Net cash provided by (used in) investing activities	2,653	(28,639)
	FY2023 (As of March 31, 2024)	FY2024 (As of March 31, 2025)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(225)	(23)
Net increase (decrease) in commercial papers	(25,000)	ー
Proceeds from long-term borrowings	20,000	14
Repayments of long-term borrowings	(20,110)	(17)
Repayments of lease liabilities	(2,556)	(3,821)
Dividends paid	(8,982)	(13,521)
Purchase of treasury shares	(17,947)	(4,046)
Decrease (increase) in deposits for treasury shares purchase	－	(960)
Dividends paid to non-controlling interests	(2,757)	(3,861)
Other, net	83	－
Net cash provided by (used in) financing activities	(57,496)	(26,237)
Effect of exchange rate change on cash and cash equivalents	9,060	680
Net increase (decrease) in cash and cash equivalents	18,050	44,828
Cash and cash equivalents at beginning of period	116,378	134,428
Cash and cash equivalents at end of period	134,428	179,257