Consolidated Financial Statements

(Millions of yen)

Asset
  FY2018
(As of March 31, 2019)
FY2019
(As of March 31, 2020)
Current assets    
Cash and deposits 86,515 101,522
Notes and accounts receivable - trade 171,084 175,687
Merchandise and finished goods 13,092 14,297
Work in process 9,126 7,516
Raw materials and supplies 14,622 15,527
Other 16,250 18,003
Allowance for doubtful accounts △4,130 △3,673
Total current assets 306,560 328,882
Non-current assets    
Property, plant and equipment    
Buildings and structures, net 45,721 44,306
Machinery, equipment and vehicles, net 6,492 6,704
Tools, furniture and fixtures, net 5,875 5,881
Land 15,750 15,162
Leased assets, net 198 259
Right-of-use assets, net - 7,929
Construction in progress 1,102 2,815
Total property, plant and equipment 75,141 83,059
Intangible assets    
Software 15,798 12,525
Goodwill 6,608 3,132
Other 11,650 7,108
Total intangible assets 34,057 22,766
Investments and other assets    
Investment securities 42,550 42,933
Deferred tax assets 6,606 6,485
Other 7,214 7,524
Allowance for doubtful accounts △2,016 △1,971
Total investments and other assets 54,354 54,970
Total non-current assets 163,553 160,796
Total assets 470,114 489,678

(Millions of yen)

Liabilities
  FY2018
(As of March 31, 2019)
FY2019
(As of March 31, 2020)
Current liabilities    
Notes and accounts payable -trade 25,130 24,358
Electronically recorded obligations -operating 9,966 9,723
Short-term borrowings 13,832 16,400
Commercial papers - 30,000
Accounts payable -other 13,530 13,367
Income taxes payable 4,332 4,769
Advances received 36,891 33,382
Lease obligations 273 2,202
Provision for bonuses 15,538 15,689
Provision for loss on construction contracts 7,806 7,606
Provision for reinforcing measures against soft errors - 898
Other 20,366 20,502
Total current liabilities 147,669 178,900
Non-current liabilities    
Long-term borrowings 18,670 4,080
Deferred tax liabilities 1,914 793
Retirement benefit liability 4,050 4,590
Lease obligations 201 6,757
Provision for reinforcing measures against soft errors - 1,840
Other 1,457 1,243
Total non-current liabilities 26,293 19,305
Total liabilities 173,963 198,206
Net assets
  FY2018
(As of March 31, 2019)
FY2019
(As of March 31, 2020)
Shareholders' equity    
Share capital 43,401 43,401
Capital surplus 54,602 54,386
Retained earnings 193,468 199,080
Treasury shares △1,397 △1,400
Total shareholders' equity 290,074 295,466
Accumulated other comprehensive income    
Valuation difference on available-for-sale securities 9,431 7,020
Deferred gains or losses on hedges 20 -
Foreign currency translation adjustment △8,314 △14,677
Remeasurements of defined benefit plans △1,351 △1,905
Total accumulated other comprehensive income △214 △9,562
Non-controlling interests 6,290 5,568
Total net assets 296,150 291,472
Total liabilities and net assets 470,114 489,678

(Millions of yen)

  FY2018
(As of March 31, 2019)
FY2019
(As of March 31, 2020)
Net sales 403,711 404,432
Cost of sales 230,641 227,922
Gross profit 173,070 176,510
Selling, general and administrative expenses 138,475 140,921
Operating profit 34,594 35,588
Non-operating income    
Interest income 672 523
Dividend income 1,650 1,743
Share of profit of entities accounted for using equity method 1,086 1,405
Miscellaneous income 1,138 1,222
Total non-operating income 4,549 4,894
Non-operating expenses    
Interest expenses 330 610
Commission expenses 149 135
Foreign exchange losses 545 1,884
Miscellaneous loss 1,347 1,550
Total non-operating expenses 2,373 4,181
Ordinary profit 36,770 36,301
Extraordinary income    
Gain on sales of non-current assets 33 517
Gain on sales of investment securities 718 26
Gain on sales of shares of subsidiaries and associates 1,804 1,468
Gain on sale of businesses - *1) 823
Total extraordinary income 2,557 2,836
Extraordinary losses    
Loss on sales of non-current assets 14 13
Loss on retirement of non-current assets 365 286
Impairment loss 113 *2) 9,507
Provision for reinforcing measures against soft errors - *3) 3,478
Loss on sales of investment securities 2 -
Loss on valuation of investment securities 176 92
Loss on sales of shares of subsidiaries and associates 227 -
Total extraordinary losses 899 13,379
Profit before income taxes 38,428 25,759
Income taxes - current 10,784 10,125
Income taxes - deferred △2,530 △775
Total income taxes 8,253 9,349
Profit 30,174 16,409
Profit attributable to non-controlling interests 1,727 1,722
Profit attributable to owners of parent 28,446 14,686

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

*2 Impairment loss
An impairment loss was recorded for the following asset groups for the fiscal year ended March 31, 2020.

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 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 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%.

*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.

(Millions of yen)

  FY2018
(As of March 31, 2019)
FY2019
(As of March 31, 2020)
Cash flows from operating activities    
Profit before income taxes 38,428 25,759
Depreciation 16,126 18,032
Amortization of goodwill 880 759
Increase (decrease) in allowance for doubtful accounts 52 △433
Increase (decrease) in provision for bonuses 940 619
Increase (decrease) in retirement benefit liability 406 678
Interest and dividend income △2,323 △2,266
Interest expenses 330 610
Share of loss (profit) of entities accounted for using equity method △1,086 △1,405
Loss (gain) on sales of investment securities △716 △26
Loss (gain) on sales of shares of subsidiaries and associates △1,576 △1,468
Loss (gain) on sales of non-current assets △19 △504
Loss on retirement of non-current assets 365 286
Loss (gain) on sale of businesses - △823
Provision for reinforcing measures against soft errors - 3,478
Impairment loss 113 9,507
Decrease (increase) in trade receivables △15,733 △13,039
Decrease (increase) in inventories △9,017 △2,872
Increase (decrease) in trade payables 1,860 △402
Increase (decrease) in accrued expenses 91 1,409
Other, net 2,105 2,310
Subtotal 31,228 40,209
Interest and dividends received 2,184 2,310
Interest paid △337 △612
Income taxes (paid) refund △11,664 △10,774
Net cash provided by (used in) operating activities 21,410 31,132
Cash flows from investing activities    
Payments into time deposits - △1,561
Proceeds from withdrawal of time deposits 1,568 368
Purchase of property, plant and equipment △7,890 △9,925
Proceeds from sales of property, plant and equipment 174 867
Purchase of intangible assets △5,593 △7,090
Proceeds from sale of businesses - 902
Purchase of investment securities △1,392 △1,696
Proceeds from sales and redemption of investment securities 1,100 45
Purchase of shares of subsidiaries and associates - △759
Purchase of shares of subsidiaries resulting in change in scope of consolidation △194 △1,550
Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation 8,027 2,287
Other, net 112 △70
Net cash provided by (used in) investing activities △4,088 △18,182
  FY2018
(As of March 31, 2019)
FY2019
(As of March 31, 2020)
Cash flows from financing activities    
Net increase (decrease) in short-term borrowings 2,481 △1,615
Net increase (decrease) in commercial papers - 30,000
Repayments of long-term borrowings △176 △10,264
Repayments of lease obligations △507 △2,790
Dividends paid △8,008 △9,072
Dividends paid to non-controlling interests △773 △1,316
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation - △354
Other, net △4 △3
Net cash provided by (used in) financing activities △6,988 4,583
Effect of exchange rate change on cash and cash equivalents △469 △3,577
Net increase (decrease) in cash and cash equivalents 9,864 13,957
Cash and cash equivalents at beginning of period 75,836 85,701
Cash and cash equivalents at end of period 85,701 99,658
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