Consolidated Financial Statements

(Millions of yen)

Asset
  FY2020
(As of March 31, 2021)
FY2021
(As of March 31, 2022)
Current assets    
Cash and deposits 102,916 117,687
Notes and accounts receivable - trade 187,266
Notes receivable - trade 11,572
Accounts receivable - trade 116,601
Contract assets 58,155
Merchandise and finished goods 14,599 16,662
Work in process 5,335 4,584
Raw materials and supplies 15,796 21,758
Other 22,953 22,479
Allowance for doubtful accounts (3,555) (5,304)
Total current assets 345,311 364,195
Non-current assets    
Property, plant and equipment    
Buildings and structures, net 45,408 46,089
Machinery, equipment and vehicles, net 7,154 8,159
Tools, furniture and fixtures, net 6,270 6,144
Land 15,325 15,448
Leased assets, net 124 57
Right-of-use assets, net 7,405 8,083
Construction in progress 2,889 2,961
Total property, plant and equipment 84,579 86,943
Intangible assets    
Software 12,779 13,997
Goodwill 4,247 12,378
Other 9,275 11,940
Total intangible assets 26,302 38,316
Investments and other assets    
Investment securities 50,887 53,241
Deferred tax assets 6,246 7,154
Other 7,935 7,124
Allowance for doubtful accounts (2,181) (1,154)
Total investments and other assets 62,887 66,366
Total non-current assets 173,769 191,626
Total assets 519,081 555,822

(Millions of yen)

Liabilities
  FY2020
(As of March 31, 2021)
FY2021
(As of March 31, 2022)
Current liabilities    
Notes and accounts payable - trade 25,147 26,590
Electronically recorded obligations - operating 9,573 10,119
Short-term borrowings 6,921 1,576
Commercial papers 20,000 20,000
Accounts payable - other 16,806 19,046
Income taxes payable 5,646 5,926
Advances received 35,317
Contract liabilities 41,124
Lease obligations 2,183 2,758
Provision for bonuses 16,228 17,127
Provision for loss on construction contracts 7,419 6,499
Other 23,748 26,424
Total current liabilities 168,993 177,192
Non-current liabilities    
Long-term borrowings 20,000 24,095
Deferred tax liabilities 3,288 2,077
Retirement benefit liability 4,373 4,687
Lease obligations 5,544 5,619
Other 2,110 1,792
Total non-current liabilities 35,317 38,272
Total liabilities 204,310 215,465
Net assets
  FY2020
(As of March 31, 2021)
FY2021
(As of March 31, 2022)
Shareholders' equity    
Share capital 43,401 43,401
Capital surplus 54,392 54,392
Retained earnings 209,240 221,446
Treasury shares (1,404) (1,407)
Total shareholders' equity 305,629 317,832
Accumulated other comprehensive income    
Valuation difference on available-for-sale securities 11,351 11,592
Foreign currency translation adjustment (7,568) 5,138
Remeasurements of defined benefit plans (1,088) (976)
Total accumulated other comprehensive income 2,694 15,754
Non-controlling interests 6,447 6,769
Total net assets 314,770 340,356
Total liabilities and net assets 519,081 555,822

(Millions of yen)

  FY2020
(As of March 31, 2021)
FY2021
(As of March 31, 2022)
Net sales 374,206 389,901
Cost of sales 210,036 217,091
Gross profit 164,169 172,810
Selling, general and administrative expenses 132,569 142,124
Operating profit 31,599 30,685
Non-operating income    
Interest income 393 605
Dividend income 1,499 1,785
Foreign exchange gains 550 1,346
Share of profit of entities accounted for using equity method 818 3,128
Miscellaneous income 1,171 679
Total non-operating income 4,433 7,546
Non-operating expenses    
Interest expenses 566 684
  41 294
Commission expenses 218 244
Donations 217 174
Miscellaneous losses 881 1,077
Total non-operating expenses 1,925 2,475
Ordinary profit 34,107 35,757
Extraordinary income    
Gain on sale of non-current assets 70 33
Gain on sale of investment securities 155 58
Total extraordinary income 226 92
Extraordinary losses    
Loss on sale of non-current assets 17 1
Loss on retirement of non-current assets 565 372
Impairment losses *1 486 *1 1,410
Loss on sale of investment securities 0
Loss on valuation of investment securities 0 1,758
Loss on sale of shares of subsidiaries and associates 139
Business restructuring expenses *2 1,739 *2 2,058
Total extraordinary losses 2,809 5,740
Profit before income taxes 31,524 30,109
Income taxes - current 8,807 8,165
Income taxes - deferred 1,413 (1,730)
Total income taxes 10,220 6,435
Profit 21,303 23,674
Profit attributable to non-controlling interests 2,084 2,392
Profit attributable to owners of parent 19,219 21,282

*1 Impairment losses

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

Millions of yen

Location Use Category Impairment losses
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%.

II.FY2021 (April 1, 2021-March 31, 2022)
Impairment losses were recorded for the following asset groups.

Millions of yen

Location Use Category Impairment losses
Denmark Business assets Goodwill 1,084
Japan Business assets Buildings and structures 7
Machinery, equipment and vehicles 8
Tools, furniture and fixtures 50
Software 68
United States Idle assets Leased assets 191
  Total 1,410

The Group's business assets are grouped based on management accounting classification. Furthermore, idle assets have been grouped by individual property.

The book values mainly with respect to the goodwill arising at the time of acquisition of shares of the Denmark based consolidated subsidiary, Grazper Technologies ApS 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%.

As no future use is expected for idle assets, the book values for each asset group have been reduced to their respective recoverable amounts (true cash value), and the reductions have been recorded as impairment losses.

*2 Business restructuring expenses

I. (Reference) FY2020 (April 1, 2020-March 31, 2021)
Business restructuring expenses pertaining to extraordinary measures at a portion of consolidated subsidiaries with the aim of optimizing the Group overall were recorded.

II. FY2021 (April 1, 2021-March 31, 2022)
Business restructuring expenses pertaining to extraordinary measures with the aim of optimizing the Group overall were recorded and the expenses were mainly related to the transfer of the aviation equipment business.

(Millions of yen)

  FY2020
(As of March 31, 2021)
FY2021
(As of March 31, 2022)
Cash flows from operating activities    
Profit before income taxes 31,524 30,109
Depreciation 16,988 16,926
Amortization of goodwill 574 1,011
Increase (decrease) in allowance for doubtful accounts (337) 185
Increase (decrease) in provision for bonuses 152 123
Increase (decrease) in retirement benefit liability (381) (64)
Interest and dividend income (1,892) (2,391)
Interest expenses 566 684
Share of loss (profit) of entities accounted for using equity method (818) (3,128)
Loss (gain) on sale of investment securities (155) (58)
Loss (gain) on valuation of investment securities 0 1,758
Loss on retirement of non-current assets 565 372
Provision for reinforcing measures against soft errors 432 247
Increase (decrease) in provision for reinforcing measures against soft errors (2,414) (507)
Impairment losses 486 1,410
Decrease (increase) in trade receivables (5,535) 13,684
Decrease (increase) in inventories 3,037 (4,906)
Increase (decrease) in trade payables (151) 858
Increase (decrease) in accounts payable - other 1,064 714
Increase (decrease) in accrued expenses (493) (173)
Other (3,536) 1,789
Subtotal 39,677 58,648
Interest and dividends received 2,118 2,214
Interest paid (675) (690)
Income taxes refund (paid) (8,278) (8,528)
Net cash provided by (used in) operating activities 32,842 51,644
Cash flows from investing activities    
Payments into time deposits (243) (892)
Proceeds from withdrawal of time deposits 580 705
Purchase of property, plant and equipment (8,689) (8,281)
Proceeds from sale of property, plant and equipment 237 140
Purchase of intangible assets (7,827) (9,838)
Purchase of investment securities (2,762) (1,310)
Proceeds from sale and redemption of investment securities 1,563 807
Purchase of shares of subsidiaries and associates (438)
Purchase of shares of subsidiaries resulting in change in scope of consolidation (1,284) (9,330)
Other (190) 111
Net cash provided by (used in) investing activities (18,617) (28,327)
  FY2020
(As of March 31, 2021)
FY2021
(As of March 31, 2022)
Cash flows from financing activities    
Net increase (decrease) in short-term borrowings 910 (1,388)
Net increase (decrease) in commercial papers (10,000)
Proceeds from long-term borrowings 20,000 4,000
Repayments of long-term borrowings (14,592) (4,080)
Repayments of lease obligations (2,882) (3,116)
Dividends paid (9,073) (9,072)
Dividends paid to non-controlling interests (1,463) (2,261)
Purchase of shares of subsidiaries not resulting in change in scope of consolidation (0) (242)
Other (3) (3)
Net cash provided by (used in) financing activities (17,105) (16,165)
Effect of exchange rate change on cash and cash equivalents 4,426 7,186
Net increase (decrease) in cash and cash equivalents 1,545 14,337
Cash and cash equivalents at beginning of period 99,658 101,204
Cash and cash equivalents at end of period 101,204 115,541

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