Consolidated Financial Statements | Yokogawa Electric Corporation

Consolidated balance sheets
Profit and loss statement
Cash flow statement

(Millions of yen)
Asset
	FY2024 (As of March 31, 2025)	FY2025 (As of March 31, 2026)
Current assets
Cash and deposits	188,754	217,549
Notes receivable - trade	11,309	8,877
Accounts receivable - trade	140,063	158,203
Contract assets	87,118	93,221
Merchandise and finished goods	20,174	21,492
Work in process	5,791	6,619
Raw materials and supplies	24,962	24,533
Other	22,941	27,368
Allowance for doubtful accounts	(4,801)	(6,271)
Total current assets	496,313	551,595
Non-current assets
Property, plant and equipment
Buildings and structures, net	43,161	43,842
Machinery, equipment and vehicles, net	11,001	12,580
Tools, furniture and fixtures, net	7,483	8,116
Land	13,581	13,172
Leased assets, net	32	48
Right-of-use assets, net	9,677	9,643
Construction in progress	2,794	4,589
Total property, plant and equipment	87,732	91,995
Intangible assets
Software	21,387	21,604
Goodwill	6,563	12,987
Other	25,117	29,402
Total intangible assets	53,068	63,993
Investments and other assets
Investment securities	64,290	70,796
Deferred tax assets	10,547	11,046
Other	7,528	6,953
Allowance for doubtful accounts	(1,193)	(763)
Total investments and other assets	81,171	88,033
Total non-current assets	221,972	244,022
Total assets	718,285	795,618

(Millions of yen)
Liabilities
	FY2024 (As of March 31, 2025)	FY2025 (As of March 31, 2026)
Current liabilities
Notes and accounts payable - trade	34,730	41,446
Electronically recorded obligations - operating	7,509	5,918
Short-term borrowings	327	24,318
Accounts payable - other	21,444	20,952
Income taxes payable	12,730	11,741
Contract liabilities	59,524	63,667
Lease liabilities	2,584	2,589
Provision for bonuses	22,526	23,788
Provision for loss on construction contracts	8,847	12,869
Other	27,559	34,079
Total current liabilities	197,784	241,370
Non-current liabilities
Long-term borrowings	24,025	18
Deferred tax liabilities	4,916	5,615
Retirement benefit liability	6,726	9,310
Lease liabilities	7,115	7,313
Other	1,996	2,094
Total non-current liabilities	44,779	24,352
Total liabilities	242,564	265,723

Net assets
	FY2024 (As of March 31, 2025)	FY2025 (As of March 31, 2026)
Shareholders’ equity
Share capital	43,401	43,401
Capital surplus	54,575	36,305
Retained earnings	342,573	373,700
Treasury shares	(23,251)	(6,668)
Total shareholders’ equity	417,298	446,738
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	21,599	26,071
Deferred gains or losses on hedges	(38)	61
Foreign currency translation adjustment	28,576	47,019
Remeasurements of defined benefit plans	419	126
Total accumulated other comprehensive income	50,557	73,278
Non-controlling interests	7,865	9,878
Total net assets	475,721	529,894
Total liabilities and net assets	718,285	795,618

(Millions of yen)
	FY2024 (As of March 31, 2025)	FY2025 (As of March 31, 2026)
Net sales	562,404	604,829
Cost of sales	294,959	328,436
Gross profit	267,444	276,392
Selling, general and administrative expenses	183,921	193,836
Operating profit	83,523	82,555
Non-operating income
Interest income	2,678	3,010
Dividend income	1,239	1,286
Share of profit of entities accounted method	2,058	524
Miscellaneous income	1,060	764
Total non-operating income	7,036	5,585
Non-operating expenses
Interest expenses	1,214	1,053
Foreign exchange losses	2,074	1,135
Commission expenses	71	256
Miscellaneous losses	1,848	1,436
Total non-operating expenses	5,207	3,882
Ordinary profit	85,351	84,259
Extraordinary income
Gain on sale of non-current assets	2,916	351
Gain on sale of investment securities	645	525
Gain on step acquisitions	-	176
Total extraordinary income	3,562	1,054
Extraordinary losses
Loss on sale of non-current assets	1,236	233
Loss on retirement of non-current assets	396	2,839
Impairment losses	^*１ 3,987	^*１ 855
Loss on valuation of investment securities	3,130	287
Loss on termination of retirement benefit	1,338	-
Retirement benefit expenses	-	^*2 1,659
Business restructuring expenses	297	509
Total extraordinary losses	10,387	6,384
Profit before income taxes	78,527	78,929
Income taxes - current	22,910	19,480
Income taxes - deferred	411	(1,519)
Total income taxes	23,321	17,961
Profit	55,206	60,967
Profit attributable to non-controlling interests	3,082	2,854
Profit attributable to owners of parent	52,123	58,113

*1. Impairment Losses
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 value with respect to the goodwill, etc. recognized at the time of acquisition of the U.S.-based consolidated subsidiary, Yokogawa Fluence Analytics, Inc., has been reduced to its recoverable amount and the amount of said reduction has been recorded as an impairment loss because the business results of that company are trending below the initially forecasted business plan.
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, 2026 (April 1, 2025-March 31, 2026)
Impairment losses were recorded for the following asset groups.

(Millions of yen)

Location	Use	Category	Impairment losses
Japan	Business assets	Buildings and structures	2
		Tools, furniture and fixtures	9
		Software	423
		Other	39
	Idle assets	Buildings and structures	25
		Machinery, equipment and vehicles	27
		Land	4
United States	Business assets	Goodwill	297
Denmark	Business assets	Goodwill	25
		Total	855

The Group's business assets are grouped based on management accounting classification.
The book value with respect to the goodwill recognized at the time of acquisition of shares of the U.S.-based consolidated subsidiary, Yokogawa Fluid Imaging Technologies, Inc., was primarily reduced to its recoverable amount and the amount of said reduction has been recorded as an impairment loss because the business results of that company is expected to fall below the initially forecasted business plan due to shifts in the business landscape surrounding that 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%.

*2. Retirement benefit expenses
Fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026)
Following the enforcement of the new Labor Codes in India, the calculation basis related to the retirement benefit plans at the Company’s India-based consolidated subsidiaries was revised. As a result, retirement benefit liability associated with the plans increased. This increase is recorded in full under extraordinary losses in the fiscal year under review as prior service cost resulting from the revision of the retirement benefit plans.

(Millions of yen)
	FY2024 (As of March 31, 2025)	FY2025 (As of March 31, 2026)
Cash flows from operating activities
Profit before income taxes	78,527	78,929
Depreciation	21,064	23,085
Impairment losses	3,987	855
Amortization of goodwill	1,800	1,962
Increase (decrease) in allowance for doubtful accounts	(759)	743
Increase (decrease) in provision for bonuses	(810)	210
Increase (decrease) in provision for loss on construction contracts	327	3,666
Increase (decrease) in retirement benefit liability	629	2,093
Interest and dividend income	(3,917)	(4,297)
Interest expenses	1,214	1,053
Share of loss (profit) of entities accounted for using equity method	(2,058)	(524)
Loss (gain) on sale of non-current assets	(1,680)	(118)
Loss on retirement of non-current assets	396	2,839
Loss (gain) on valuation of investment securities	3,130	287
Loss on termination of retirement benefit plan	1,338	-
Decrease (increase) in trade receivables	10,214	(9,749)
Decrease (increase) in inventories	5,256	1,368
Increase (decrease) in trade payables	1,566	3,609
Increase (decrease) in accounts payable - other	(891)	(800)
Increase (decrease) in accrued expenses	954	2,529
Other, net	(7,225)	(2,808)
Subtotal	113,062	104,933
Interest and dividends received	3,751	4,328
Interest paid	(1,267)	(1,143)
Income taxes refund (paid)	(16,521)	(22,168)
Net cash provided by (used in) operating activities	99,025	85,951
Cash flows from investing activities
Payments into time deposits	(11,313)	(5,768)
Proceeds from withdrawal of time deposits	6,984	6,563
Purchase of property, plant and equipment	(10,845)	(11,124)
Proceeds from sale of property, plant and equipment	6,628	1,235
Purchase of intangible assets	(16,069)	(16,558)
Purchase of investment securities	(782)	(295)
Proceeds from sale and redemption of investment securities	796	1,132
Purchase of shares of subsidiaries and associates	-	(369)
Purchase of shares of subsidiaries resulting in change in scope of consolidation	(4,471)	(8,508)
Other, net	432	566
Net cash provided by (used in) investing activities	(28,639)	(33,127)
	FY2024 (As of March 31, 2025)	FY2025 (As of March 31, 2026)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(23)	(99)
Proceeds from long-term borrowings	14	-
Repayments of long-term borrowings	(17)	(42)
Repayments of lease liabilities	(3,821)	(3,034)
Dividends paid	(13,521)	(15,646)
Purchase of treasury shares	(4,046)	(13,022)
Decrease (increase) in deposits for treasury shares purchase	(960)	-
Dividends paid to non-controlling interests	(3,861)	(3,329)
Net cash provided by (used in) financing activities	(26,237)	(35,175)
Effect of exchange rate change on cash and cash equivalents	680	11,634
Net increase (decrease) in cash and cash equivalents	44,828	29,283
Cash and cash equivalents at beginning of period	134,428	179,257
Cash and cash equivalents at end of period	179,257	208,540