Aichi : Annual Securities Report (April 1, 2022 - March 31, 2023) was published.

AICHI CORPORATION

Annual Securities Report

(English Translation)

March 31, 2023

Financial Information

1. Basis for Preparation of Consolidated and Non-consolidated Financial Statements
2. 1. The consolidated financial statements of AICHI CORPORATION (the "Company") are prepared in accordance with the "Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (Ministry of Finance Order No. 28 of 1976).
   2. The non-consolidated financial statements of the Company are prepared in accordance with the "Regulation on Terminology, Forms, and Preparation Methods of Financial Statements" (Ministry of Finance Order No. 59 of 1963; hereinafter the "Regulation on Financial Statements").
      The Company falls under the company allowed to file specified financial statements and prepares its non- consolidated financial statements pursuant to the provision of Article 127 of the Regulation on Financial Statements.
3. Audit Certificate
   The Company's consolidated and non-consolidated financial statements for the fiscal year ended March 31, 2023 were audited by PricewaterhouseCoopers Aarata LLC, in accordance with the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.
4. Special Measures to Ensure the Appropriateness of Consolidated Financial Statements, etc.
   The Company has taken special measures to ensure the appropriateness of consolidated financial statements, etc. Specifically, the Company endeavors to establish a framework that allows the Company to appropriately understand the details of accounting standards and other relevant information and accurately respond to changes in the standards by joining the Financial Accounting Standards Foundation and participating in seminars organized by the Foundation. The Company has explored the possibility of adopting the designated International Financial Reporting Standards in the future.

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1. Consolidated Financial Statements, etc.

(1) Consolidated Financial Statements

(i) Consolidated Balance Sheets

				(Thousands of yen)
			As of March 31, 2022	As of March 31, 2023
Assets
	Current assets
	Cash and deposits		1,179,626	1,162,162
	Deposits paid	*2 36,897,023	*2 37,865,486
	Notes receivable - trade		2,856,931	3,408,581
	Accounts receivable - trade	15,751,309	20,063,056
	Merchandise and finished goods		896,832	1,065,423
	Work in process	1,459,508	1,251,898
	Raw materials and supplies		1,345,329	1,486,946
	Other	758,981	1,249,447
	Total current assets		61,145,543	67,553,002
	Non-current assets
	Property, plant and equipment
	Buildings and structures	19,417,152	19,505,384
	Accumulated depreciation		(12,365,792)	(12,890,269)
	Buildings and structures, net	7,051,360	6,615,115
	Machinery, equipment and vehicles		9,768,965	9,957,769
	Accumulated depreciation	(7,688,877)	(8,261,419)
	Machinery, equipment and vehicles, net		2,080,087	1,696,350
	Tools, furniture and fixtures	2,920,594	2,963,989
	Accumulated depreciation		(2,728,102)	(2,788,596)
	Tools, furniture and fixtures, net		192,491	175,392
	Land		*1 8,524,007	*1 8,523,400
	Leased assets	765,585	747,944
	Accumulated depreciation		(433,678)	(485,104)
	Leased assets, net	331,906	262,839
	Construction in progress		1,369	341,940
	Total property, plant and equipment	18,181,222	17,615,039
	Intangible assets		665,998	601,208
	Investments and other assets:
	Investment securities		7,311,005	6,959,086
	Other	*3 3,262,562	*3 2,973,787
	Allowance for doubtful accounts		(6,758)	(6,653)
	Total investments and other assets	10,566,810	9,926,220
	Total non-current assets		29,414,030	28,142,468
	Total assets	90,559,574	95,695,470

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					(Thousands of yen)
				As of March 31, 2022	As of March 31, 2023
Liabilities
	Current liabilities
		Notes and accounts payable - trade		8,633,664	10,248,973
		Lease liabilities	102,516	94,148
		Income taxes payable		717,737	1,385,807
		Provision for bonuses for directors (and other	38,000	38,000
		officers)
		Provision for product warranties		228,271	153,065
		Other	*4 2,647,420	*4 2,975,807
		Total current liabilities		12,367,609	14,895,802
	Non-current liabilities
		Lease liabilities		295,055	214,152
		Deferred tax liabilities	704,782	695,862
		Deferred tax liabilities for land revaluation		*1 616,302	*1 616,302
		Retirement benefit liability	489,292	660,461
		Other		42,780	39,142
		Total non-current liabilities	2,148,213	2,225,920
	Total liabilities		14,515,822	17,121,723
Net assets
	Shareholders' equity
		Share capital	10,425,325	10,425,325
		Capital surplus		9,923,342	9,923,342
		Retained earnings	52,416,619	54,606,278
		Treasury shares		(646,937)	(313)
		Total shareholders' equity		72,118,350	74,954,632
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	4,085,430	3,882,938
		securities
		Revaluation reserve for land		*1 (1,624,044)	*1 (1,624,044)
		Foreign currency translation adjustment	758,735	808,182
		Remeasurements of defined benefit plans		705,280	552,038
		Total accumulated other comprehensive income	3,925,401	3,619,115
	Total net assets		76,043,752	78,573,747
Total liabilities and net assets		90,559,574	95,695,470

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1. Consolidated Statements of Income and Consolidated Statement of Comprehensive Income Consolidated Statements of Income

			(Thousands of yen)
		For the fiscal year	For the fiscal year
		ended March 31, 2022	ended March 31, 2023
Net sales	*1 56,591,208	*1 60,678,851
Cost of sales	*2 43,980,901	*2 47,627,170
Gross profit	12,610,306	13,051,681
Selling, general and administrative expenses
	Packing and delivery expenses	747,374	479,842
	Advertising expenses	50,689	72,348
	Sales commission	37,782	33,027
	Remuneration for directors (and other officers)	70,553	74,277
	Salaries, allowances and bonuses	2,233,670	2,182,919
	Provision for bonuses for directors (and other officers)	29,007	33,647
	Retirement benefit expenses	142,342	142,486
	Welfare expenses	481,180	506,773
	Communication and transportation expenses	214,308	251,419
	Depreciation	357,127	315,446
	Repair expenses	90,199	71,617
	Rent expenses	156,082	170,832
	Research and development expenses	*7 419,112	*7 478,312
	Other	719,316	887,419
	Total selling, general and administrative expenses	5,748,748	5,700,370
Operating profit	6,861,558	7,351,310
Non-operating income
	Interest income	14,525	10,724
	Dividend income	154,803	172,863
	Foreign exchange gains	18,752	56,844
	Share of profit of entities accounted for using equity	639,551	375,337
	method
	Miscellaneous income	49,171	51,487
	Total non-operating income	876,802	667,258
Non-operating expenses
	Miscellaneous losses	2,224	2,492
	Total non-operating expenses	2,224	2,492
Ordinary profit	7,736,136	8,016,076

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