Consolidated Financial Statements

(Millions of yen)

Asset
  FY2019
(As of March 31, 2020)
FY2020
(As of March 31, 2021)
Current assets    
Cash and deposits 101,522 102,916
Notes and accounts receivable - trade 175,687 187,266
Merchandise and finished goods 14,297 14,599
Work in process 7,516 5,335
Raw materials and supplies 15,527 15,796
Other 18,003 22,953
Allowance for doubtful accounts (3,673) (3,555)
Total current assets 328,882 345,311
Non-current assets    
Property, plant and equipment    
Buildings and structures, net 44,306 45,408
Machinery, equipment and vehicles, net 6,704 7,154
Tools, furniture and fixtures, net 5,881 6,270
Land 15,162 15,325
Leased assets, net 259 124
Right-of-use assets, net 7,929 7,405
Construction in progress 2,815 2,889
Total property, plant and equipment 83,059 84,579
Intangible assets    
Software 12,525 12,779
Goodwill 3,132 4,247
Other 7,108 9,275
Total intangible assets 22,766 26,302
Investments and other assets    
Investment securities 42,933 50,887
Deferred tax assets 6,485 6,246
Other 7,524 7,935
Allowance for doubtful accounts (1,971) (2,181)
Total investments and other assets 54,970 62,887
Total non-current assets 160,796 173,769
Total assets 489,678 519,081

(Millions of yen)

Liabilities
  FY2019
(As of March 31, 2020)
FY2020
(As of March 31, 2021)
Current liabilities    
Notes and accounts payable - trade 24,358 25,147
Electronically recorded obligations - operating 9,723 9,573
Short-term borrowings 16,400 6,921
Commercial papers 30,000 20,000
Accounts payable - other 13,367 16,806
Income taxes payable 4,769 5,646
Advances received 33,382 35,317
Lease obligations 2,202 2,183
Provision for bonuses 15,689 16,228
Provision for loss on construction contracts 7,606 7,419
Other 21,400 23,748
Total current liabilities 178,900 168,993
Non-current liabilities    
Long-term borrowings 4,080 20,000
Deferred tax liabilities 793 3,288
Retirement benefit liability 4,590 4,373
Lease obligations 6,757 5,544
Other 3,084 2,110
Total non-current liabilities 19,305 35,317
Total liabilities 198,206 204,310
Net assets
  FY2019
(As of March 31, 2020)
FY2020
(As of March 31, 2021)
Shareholders' equity    
Share capital 43,401 43,401
Capital surplus 54,386 54,392
Retained earnings 199,080 209,240
Treasury shares (1,400) (1,404)
Total shareholders' equity 295,466 305,629
Accumulated other comprehensive income    
Valuation difference on available-for-sale securities 7,020 11,351
Foreign currency translation adjustment (14,677) (7,568)
Remeasurements of defined benefit plans (1,905) (1,088)
Total accumulated other comprehensive income (9,562) 2,694
Non-controlling interests 5,568 6,447
Total net assets 291,472 314,770
Total liabilities and net assets 489,678 519,081

(Millions of yen)

  FY2019
(April 1, 2019-March 31, 2020)
FY2020
(April 1, 2020-March 31, 2021)
Net sales 404,432 374,206
Cost of sales 227,922 210,036
Gross profit 176,510 164,169
Selling, general and administrative expenses 140,921 132,569
Operating profit 35,588 31,599
Non-operating income    
Interest income 523 393
Dividend income 1,743 1,499
Foreign exchange gains - 550
Share of profit of entities accounted for using equity method 1,405 818
Miscellaneous income 1,222 1,171
Total non-operating income 4,894 4,433
Non-operating expenses    
Interest expenses 610 566
Commission expenses 135 218
Foreign exchange losses 1,884 -
Donations 199 217
Miscellaneous losses 1,351 923
Total non-operating expenses 4,181 1,925
Ordinary profit 36,301 34,107
Extraordinary income    
Gain on sale of non-current assets 517 70
Gain on sale of investment securities 26 155
Gain on sale of shares of subsidiaries and associates 1,468 -
Gain on sale of businesses *1) 823 -
Total extraordinary income 2,836 226
Extraordinary losses    
Loss on sale of non-current assets 13 17
Loss on retirement of non-current assets 286 565
Impairment losses *2) 9,507 *2) 486
Loss on sale of investment securities - 0
Loss on valuation of investment securities 92 0
Business restructuring expenses - *4) 1,739
Provision for reinforcing measures against soft errors *3) 3,478 -
Total extraordinary losses 13,379 2,809
Profit before income taxes 25,759 31,524
Income taxes - current 10,125 8,807
Income taxes - deferred (775) 1,413
Total income taxes 9,349 10,220
Profit 16,409 21,303
Profit attributable to non-controlling interests 1,722 2,084
Profit attributable to owners of parent 14,686 19,219

*1 Gain on sale of businesses
This gain relates to the transfer of the plastic vortex flow sensors business.

*2 Impairment losses
(Reference) FY2019 (April 1, 2019-March 31, 2020)
Impairment losses were recorded for the following asset groups.

Millions of yen

Location Use Category Impairment loss
United Kingdom Business assets Goodwill 2,936
Other intangible assets 3,674
Software 968
Right-of-use assets 580
Tools, furniture and fixtures 61
United States Business assets Goodwill 1,016
Other intangible assets 269
  Total 9,507

The Group's business assets are grouped based on management accounting classification.
The book values mainly with respect to the goodwill arising at the time of acquisition of shares of the U.K. based consolidated subsidiary, KBC Advanced Technologies Limited and the U.S. based consolidated subsidiary, Soteica Visual Mesa, Limited Liability Company were reduced to their respective recoverable amounts and the amount of said reductions were recorded as impairment losses on account of the business results of these companies falling below the initially forecasted business plans due to the impact of changes in the business environments surrounding each company.
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%.

FY2020 (April 1, 2020-March 31, 2021)
Impairment losses were recorded for the following asset group.

Location Use Category Impairment loss
Norway Business assets Goodwill 163
Other intangible assets 323
  Total 486

The Group’s business assets are grouped based on management accounting classification. The book values mainly with respect to the goodwill arising at the time of acquisition of shares of the Norway based consolidated subsidiary, Yokogawa TechInvent AS 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 these companies falling below the initially forecasted business plans due to the impact of changes in the business environments surrounding the company.
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%.

*3 Provision for reinforcing measures against soft errors
This provision is the amount of projected expenses incurred with the reinforcement of soft error measures and support for customers.

*4 Business restructuring expenses
Business restructuring expenses pertaining to extraordinary measures at a portion of consolidated subsidiaries with the aim of optimizing the Group overall were recorded.

(Millions of yen)

  FY2019
(April 1, 2019-March 31, 2020)
FY2020
(April 1, 2020-March 31, 2021)
Cash flows from operating activities    
Profit before income taxes 25,759 31,524
Depreciation 18,032 16,988
Amortization of goodwill 759 574
Increase (decrease) in allowance for doubtful accounts (433) (337)
Increase (decrease) in provision for bonuses 619 152
Increase (decrease) in retirement benefit liability 678 (381)
Interest and dividend income (2,266) (1,892)
Interest expenses 610 566
Share of loss (profit) of entities accounted for using equity method (1,405) (818)
Loss (gain) on sale of investment securities (26) (155)
Loss (gain) on sale of shares of subsidiaries and associates (1,468) -
Loss (gain) on sale of non-current assets (504) (53)
Loss on retirement of non-current assets 286 565
Loss (gain) on sale of businesses (823) -
Provision for reinforcing measures against soft errors 3,478 -
Increase (decrease) in provision for reinforcing measures against soft errors (739) (2,414)
Impairment losses 9,507 486
Decrease (increase) in trade receivables (13,039) (5,535)
Decrease (increase) in inventories (2,872) 3,037
Increase (decrease) in trade payables (402) (151)
Increase (decrease) in accrued expenses 1,409 (493)
Other, net 3,050 (1,985)
Subtotal 40,209 39,677
Interest and dividends received 2,310 2,118
Interest paid (612) (675)
Income taxes refund (paid) (10,774) (8,278)
Net cash provided by (used in) operating activities 31,132 32,842
Cash flows from investing activities    
Payments into time deposits (1,561) (243)
Proceeds from withdrawal of time deposits 368 580
Purchase of property, plant and equipment (9,925) (8,689)
Proceeds from sale of property, plant and equipment 867 237
Purchase of intangible assets (7,090) (7,827)
Proceeds from sale of businesses 902 -
Purchase of investment securities (1,696) (2,762)
Proceeds from sale and redemption of investment securities 45 1,563
Purchase of shares of subsidiaries and associates (759) -
Purchase of shares of subsidiaries resulting in change in scope of consolidation (1,550) (1,284)
Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation 2,287 -
Other, net (70) (190)
Net cash provided by (used in) investing activities (18,182) (18,617)
  FY2019
(April 1, 2019-March 31, 2020)
FY2020
(April 1, 2020-March 31, 2021)
Cash flows from financing activities    
Net increase (decrease) in short-term borrowings (1,615) 910
Net increase (decrease) in commercial papers 30,000 (10,000)
Proceeds from long-term borrowings - 20,000
Repayments of long-term borrowings (10,264) (14,592)
Repayments of lease obligations (2,790) (2,882)
Dividends paid (9,072) (9,073)
Dividends paid to non-controlling interests (1,316) (1,463)
Purchase of shares of subsidiaries not resulting in change in scope of consolidation (354) (0)
Other, net (3) (3)
Net cash provided by (used in) financing activities 4,583 (17,105)
Effect of exchange rate change on cash and cash equivalents (3,577) 4,426
Net increase (decrease) in cash and cash equivalents 13,957 1,545
Cash and cash equivalents at beginning of period 85,701 99,658
Cash and cash equivalents at end of period 99,658 101,204

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