| Assets | ||
|---|---|---|
| FY2022 (As of March 31, 2023) |
FY2023 (As of March 31, 2024) |
|
| Current assets | ||
| Cash and deposits | 121,438 | 139,884 |
| Notes receivable - trade | 10,318 | 14,278 |
| Accounts receivable - trade | 133,654 | 142,569 |
| Contract assets | 65,297 | 85,856 |
| Merchandise and finished goods | 18,467 | 21,719 |
| Work in process | 4,932 | 5,857 |
| Raw materials and supplies | 25,006 | 27,138 |
| Other | 24,251 | 24,148 |
| Allowance for doubtful accounts | (6,106) | (6,280) |
| Total current assets | 397,261 | 455,173 |
| Non-current assets | ||
| Property, plant and equipment | ||
| Buildings and structures, net | 46,183 | 47,022 |
| Machinery, equipment and vehicles, net | 9,354 | 10,178 |
| Tools, furniture and fixtures, net | 6,550 | 7,261 |
| Land | 15,570 | 15,852 |
| Leased assets, net | 22 | 10 |
| Right-of-use assets, net | 8,097 | 8,598 |
| Construction in progress | 1,780 | 2,113 |
| Total property, plant and equipment | 87,559 | 91,038 |
| Intangible assets | ||
| Software | 14,137 | 17,512 |
| Goodwill | 14,614 | 5,971 |
| Other | 19,782 | 20,283 |
| Total intangible assets | 48,534 | 43,767 |
| Investments and other assets | ||
| Investment securities | 70,786 | 65,615 |
| Deferred tax assets | 8,921 | 10,526 |
| Other | 6,433 | 7,337 |
| Allowance for doubtful accounts | (859) | (593) |
| Total investments and other assets | 85,281 | 82,887 |
| Total non-current assets | 221,375 | 217,693 |
| Total assets | 618,637 | 672,866 |
| Liabilities | ||
|---|---|---|
| FY2022 (As of March 31, 2023) |
FY2023 (As of March 31, 2024) |
|
| Current liabilities | ||
| Notes and accounts payable - trade | 31,226 | 31,818 |
| Electronically recorded obligations - operating | 10,098 | 9,657 |
| Short-term borrowings | 20,475 | 295 |
| Commercial papers | 25,000 | － |
| Accounts payable - other | 18,741 | 21,274 |
| Income taxes payable | 6,472 | 9,795 |
| Contract liabilities | 45,837 | 51,588 |
| Lease liabilities | 2,219 | 2,780 |
| Provision for bonuses | 20,776 | 23,539 |
| Provision for loss on construction contracts | 7,380 | 8,746 |
| Other | 24,869 | 27,036 |
| Total current liabilities | 213,097 | 186,534 |
| Non-current liabilities | ||
| Long-term borrowings | 4,087 | 24,000 |
| Deferred tax liabilities | 2,519 | 3,864 |
| Retirement benefit liability | 5,081 | 6,048 |
| Lease liabilities | 5,292 | 5,808 |
| Other | 1,732 | 1,848 |
| Total non-current liabilities | 18,713 | 41,569 |
| Total liabilities | 231,811 | 228,103 |
| Net assets | ||
|---|---|---|
| FY2022 (As of March 31, 2023) |
FY2023 (As of March 31, 2024) |
|
| Shareholders' equity | ||
| Share capital | 43,401 | 43,401 |
| Capital surplus | 54,392 | 54,464 |
| Retained earnings | 251,277 | 303,979 |
| Treasury shares | (1,410) | (19,357) |
| Total shareholders' equity | 347,660 | 382,487 |
| Accumulated other comprehensive income | ||
| Valuation difference on available-for-sale securities | 19,106 | 21,953 |
| Deferred gains or losses on hedges | (98) | 43 |
| Foreign currency translation adjustment | 13,812 | 32,831 |
| Remeasurements of defined benefit plans | (854) | (674) |
| Total accumulated other comprehensive income | 31,965 | 54,154 |
| Non-controlling interests | 7,200 | 8,120 |
| Total net assets | 386,825 | 444,763 |
| Total liabilities and net assets | 618,637 | 672,866 |
| FY2022 (As of March 31, 2023) |
FY2023 (As of March 31, 2024) |
|
|---|---|---|
| Net sales | 456,479 | 540,152 |
| Cost of sales | 252,019 | 285,260 |
| Gross profit | 204,459 | 254,891 |
| Selling, general and administrative expenses | 160,050 | 176,091 |
| Operating profit | 44,409 | 78,800 |
| Non-operating income | ||
| Interest income | 1,058 | 1,887 |
| Dividend income | 1,970 | 957 |
| Foreign exchange gains | － | 1,049 |
| Share of profit of entities accounted for using equity method | 3,374 | 3,163 |
| Miscellaneous income | 1,617 | 1,396 |
| Total non-operating income | 8,021 | 8,454 |
| Non-operating expenses | ||
| Interest expenses | 1,091 | 1,179 |
| Foreign exchange losses | 1,009 | － |
| Provision of allowance for doubtful accounts | 21 | 54 |
| Commission expenses | 332 | 305 |
| Miscellaneous losses | 1,365 | 1,617 |
| Total non-operating expenses | 3,821 | 3,156 |
| Ordinary profit | 48,608 | 84,098 |
| Extraordinary income | ||
| Gain on sale of non-current assets | 526 | 39 |
| Gain on sale of investment securities | 834 | 16,990 |
| Gain on step acquisitions | *1 1,066 | － |
| Total extraordinary income | 2,428 | 17,030 |
| Extraordinary losses | ||
| Loss on sale of non-current assets | 5 | 10 |
| Loss on retirement of non-current assets | 432 | 193 |
| Impairment losses | *2 558 | *2 11,473 |
| Loss on valuation of investment securities | － | 1,041 |
| Loss on sale of investments in capital of subsidiaries and associates | － | 259 |
| Loss on termination of retirement benefit plan | － | 107 |
| Business restructuring expenses | 240 | 283 |
| Total extraordinary losses | 1,237 | 13,368 |
| Profit before income taxes | 49,799 | 87,760 |
| Income taxes - current | 11,662 | 22,531 |
| Income taxes - deferred | (3,799) | (763) |
| Total income taxes | 7,863 | 21,768 |
| Profit | 41,936 | 65,992 |
| Profit attributable to non-controlling interests | 3,015 | 4,306 |
| Profit attributable to owners of parent | 38,920 | 61,685 |
*1 Gain on Step Acquisitions
FY2022 (April 1, 2022-March 31, 2023)
This was recognized as a result of the step acquisition of shares of Yokogawa Fluence Analytics, Inc. (former Fluence Analytics, Inc.).
*2 Impairment Losses
I. (Reference) FY2022 (April 1, 2022-March 31, 2023)
Impairment losses were recorded for the following asset groups.
(Millions of yen)
| Location | Use | Category | Impairment losses |
|---|---|---|---|
| United Kingdom | Business assets | Goodwill | 261 |
| Norway | Business assets | Other intangible assets | 296 |
| Total | 558 | ||
The Group’s business assets are grouped based on management accounting classification.
The book value with respect to the goodwill arising at the time of acquisition of shares of the UK-based consolidated subsidiary, Yokogawa RAP Limited was reduced to its recoverable amount and the amount of said reduction has been recorded as impairment loss because the non-consolidated business performance of the company is expected to fall below the initially forecasted business plans in line with changes made to the company’s positioning with respect to business expansion.
The recoverable amount for the said asset group is measured by value in use and is calculated by discounting future cash flows at a rate of 10%.
The book value with respect to the other intangible assets arising at the time of acquisition of shares of the Norway based consolidated subsidiary, Yokogawa TechInvent AS, was reduced to its recoverable amount and the amount of said reduction has been recorded as impairment loss on account of the business results of the company falling below the initially forecasted business plans due to the impact of changes in the business environments surrounding the company.
The recoverable amount for the said asset group is measured by value in use and is calculated by discounting future cash flows at a rate of 10%.
II. FY2023 (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 |
| Leased assets | 103 | ||
| Goodwill | 3,563 | ||
| Other intangible assets | 3,701 | ||
| Germany | Business assets | Goodwill | 3,104 |
| Other intangible assets | 881 | ||
| Japan | Business assets | Machinery, equipment and vehicles | 46 |
| Other intangible assets | 1 | ||
| Long-term prepaid expenses | 4 | ||
| Idle assets | Machinery, equipment and vehicles | 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 group are measured by value in use and are calculated by discounting future cash flows at a rate of 10%.
| FY2022 (As of March 31, 2023) |
FY2023 (As of March 31, 2024) |
|
|---|---|---|
| Cash flows from operating activities | ||
| Profit before income taxes | 49,799 | 87,760 |
| Depreciation | 18,037 | 20,272 |
| Impairment losses | 558 | 11,473 |
| Amortization of goodwill | 1,659 | 2,298 |
| Increase (decrease) in allowance for doubtful accounts | 128 | (782) |
| Increase (decrease) in provision for bonuses | 3,091 | 1,476 |
| Increase (decrease) in retirement benefit liability | 49 | 378 |
| Interest and dividend income | (3,029) | (2,844) |
| Interest expenses | 1,091 | 1,179 |
| Share of loss (profit) of entities accounted for using equity method | (3,374) | (3,163) |
| Loss (gain) on sale of investment securities | (834) | (16,990) |
| Loss (gain) on sale of non-current assets | (520) | (29) |
| Loss on retirement of non-current assets | 432 | 193 |
| Loss (gain) on step acquisitions | (1,066) | － |
| Increase (decrease) in allowance for soft error | (272) | 339 |
| Loss (gain) on valuation of investment securities | － | 1,041 |
| Decrease (increase) in trade receivables | (13,692) | (17,364) |
| Decrease (increase) in inventories | (5,415) | (4,103) |
| Increase (decrease) in trade payables | 3,421 | (1,819) |
| Increase (decrease) in accounts payable - other | 587 | 1,203 |
| Increase (decrease) in accrued expenses | (874) | 175 |
| Other, net | (253) | 1,694 |
| Subtotal | 49,521 | 82,390 |
| Interest and dividends received | 2,983 | 3,789 |
| Interest paid | (1,002) | (1,143) |
| Income taxes refund (paid) | (11,080) | (21,203) |
| Net cash provided by (used in) operating activities | 40,422 | 63,833 |
| Cash flows from investing activities | ||
| Payments into time deposits | (3,284) | (8,862) |
| Proceeds from withdrawal of time deposits | 278 | 8,973 |
| Purchase of property, plant and equipment | (8,637) | (8,718) |
| Proceeds from sale of property, plant and equipment | 554 | 152 |
| Purchase of intangible assets | (12,205) | (15,410) |
| Purchase of investment securities | (2,540) | (1,276) |
| Proceeds from sale and redemption of investment securities | 1,087 | 28,266 |
| Proceeds from sale of businesses | 428 | － |
| Purchase of shares of subsidiaries and associates | (2,021) | － |
| Purchase of shares of subsidiaries resulting in change in scope of consolidation | (6,744) | － |
| Other, net | 145 | (469) |
| Net cash provided by (used in) investing activities | (32,939) | 2,653 |
| Cash flows from financing activities | ||
| Net increase (decrease) in short-term borrowings | (1,144) | (225) |
| Net increase (decrease) in commercial papers | 5,000 | (25,000) |
| Proceeds from long-term borrowings | － | 20,000 |
| Repayments of long-term borrowings | － | (20,110) |
| Repayments of lease liabilities | (3,432) | (2,556) |
| Dividends paid | (9,078) | (8,982) |
| Purchase of treasury shares | － | (17,947) |
| Dividends paid to non-controlling interests | (2,274) | (2,757) |
| Other, net | (2) | 83 |
| Net cash provided by (used in) financing activities | (10,932) | (57,496) |
| Effect of exchange rate change on cash and cash equivalents | 4,286 | 9,060 |
| Net increase (decrease) in cash and cash equivalents | 836 | 18,050 |
| Cash and cash equivalents at beginning of period | 115,541 | 116,378 |
| Cash and cash equivalents at end of period | 116,378 | 134,428 |