CYBERDYNE : English translation of the financial reporting parts of the Annual Securities Report for the Fiscal Year Ended March 31, 2023

[Translation]

Annual Securities Report

(The 19th Business Term)

From April 1, 2022, to March 31, 2023

CYBERDYNE, INC.

This document is a partial translation of the Annual Securities Report (有価証券報告 書).

The Japanese original, "Part I Information on the Company V. Consolidated Financial Statements and Other Information 1. Consolidated Financial Statements," were audited by Deloitte Touche Tohmatsu LLC.

CYBERDYNE filed the Annual Securities Report to the Director of the Kanto Local Finance Bureau via Electronic Disclosure for Investor's NETwork ("EDINET") under Japan's Financial Instruments and Exchange Act.

－ 1 －

1,248

1,304

617

(1,788)

(244)

(2,794)

(564)

(215)

(775)

−

−

−

−

−

−

87.8

91.0

96.792.6

(1,917)

205.50

45,746

44,217

(1,480)

Term 15

March 2019

1,709

670

(775)

−

−

(2.94)

(2.94)

(632)

(569)

(830)

14

2,173

(143)

−

−

83.9

(1.39)

(1.39)

199.32

50,187

42,101

(131)

(298)

53

(1,145)

Term 19

March 2023

3,289

Chapter 1【Information of the company】Part 1【Status of the company】

1【Changes in major management indicators】

(1) Consolidated management indicators

Order

Date of settlement

Revenue

Operating profit (loss)

Profit (loss) before tax

Profit (loss) attributable to the owner of the parent

Comprehensive profit(loss) attributable to owners of the parent

Equity attributable to owners of the parent

Total assets

Equity attributable to owners of the parent per share

Basic earnings (loss) per share

Diluted earnings (loss) per share

Ratio of equity attributable to owners of the parent

Return of equity attributable to owners of the parent

Price-to-earnings ratio

Cash flow from operating activities

Cash flow from investing activities

Cash flow from financing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Yen

Yen

%

%

Ratio

Millions of yen

Millions of yen

Millions of yen

International Financial Standards (IFRS)

Term 16	Term 17	Term 18
March 2020	March 2021	March 2022
1,792	1,875	2,150
(1,039)	(700)	(878)
91	408	(389)
(152)	(59)	(498)
42	(479)	(371)
44,268	43,776	43,413
47,808	48,119	49,467
205.71	203.39	201.74
(0.71)	(0.27)	(2.32)
(0.71)	(0.27)	(2.32)

Balance of cash and cash
equivalents at the end of the	Millions of yen	8,796	9,636	6,704	5,677	7,801
fiscal year
Numbers of employee		84	95	96	201	257
(Average number of non-	Persons
(47)	(56)	(44)	(47)	(55)
regular employees)

Note

1. The Company has prepared the consolidated financial statements under International Accounting Standards
2. The Company did not state the price-to-earnings ratio because CYBERDYNE recorded a loss attributable to the owners of the parent
3. The Company did not state the return of equity attributable to the owners of the parent because CYBERDYNE recorded a loss attributable to the owners of the parent.
4. Rounded down to the closest millions of yen (same for the following)
5. In the consolidated fiscal year, the Company finalized the provisional accounting treatment for the business combination, and the related key management indices for the previous consolidated fiscal year are based on the amounts after the significant revision of the initial allocation of acquisition costs due to the finalization of the provisional accounting treatment was reflected.

－ 2 －

(2) Non-consolidated management indicators

Order
Date of settlement
Net sales	Millions
of yen
Operating profit (loss)	Millions
of yen
Net profit (loss)	Millions
of yen
Share capital	Millions
of yen
Total number of issued shares	Shares
Net assets	Millions
of yen
Total assets	Millions
of yen
Net assets per share	Yen
Dividend per share
(Interim dividend per share)	Yen
Net profit (loss) per share	Yen
Diluted net income per share	Yen
Capital ratio	%
Return on equity	%
Price-to-earnings ratio	Ratio
Payout ratio	%
Numbers of employee
(Average number of non-regular	Persons
employees)
Total shareholder return	%
(Comparative index: Tokyo Stock	%
Exchange Mothers Index)
Highest share price	Yen
Lowest share price	Yen

Term 15	Term 16	Term 17	Term 18	Term 19
March 2019	March 2020	March 2021	March 2022	March 2023
1,530	1,595	1,663	1,564	1,715
(734)	(615)	(521)	(602)	(545)
(1,906)	(849)	(527)	(607)	(595)
26,778	26,778	10	10	10
Common Share	Common Share	Common Share	Common Share	Common Share
137,445,809	137,445,809	137,445,809	137,445,809	137,445,809
Class B Share	Class B Share	Class B Share	Class B Share	Class B Share
77,700,000	77,700,000	77,700,000	77,700,000	77,700,000
44,020	43,167	42,708	42,080	40,435
44,740	43,899	43,295	42,663	41,531
204.52	200.56	198.43	195.51	191.42
−	−	−	−	−
(−)	(−)	(−)	(−)	(−)
(8.86)	(3.95)	(2.45)	(2.82)	(2.77)
−	−	−	−	−
98.4	98.3	98.6	98.6	97.3
−	−	−	−	−
−	−	−	−	−
−	−	−	−	−
65	78	81	84	82
(41)	(47)	(39)	(40)	(37)
45.4	40.2	42.4	24.2	18.9
(79.2)	(64.9)	(194.0)	(65.7)	(94.8)
1,538	753	975	695	463
449	320	360	307	276

Note

1. The Company did not state diluted net income per share because, while there are diluted shares, CYBERDYNE recorded net loss per share.
2. The Company did not state return of equity as CYBERDYNE recorded net loss attributable to owners of the parent.
3. The Company did not state price-to-earnings ratio as CYBERDYNE recorded net loss per share.
4. The highest and lowest share prices are based on the Tokyo Stock Exchange (Growth) price starting from April 4, 2022. Prices before that date are based on the share price at Tokyo Stock Exchange (Mothers)

－ 3 －

Chapter 5【Status of Accounting】

• Basis of preparation of consolidated financial statement and non-consolidated financial statement
• 1. The consolidated financial statements of CYBERDYNE, INC. (the "Company") have been prepared by International Accounting Standards (hereafter referred to as "IFRS") under Article 93 of the "Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (Ordinance of the Ministry of Finance No. 28 of 1976)
  2. The non-consolidated financial statements of the Company have been prepared by "Ordinance on Terminology, Forms, and Preparation Methods of Financial Statements, etc." (Ordinance of the Ministry of Finance No. 59 of 1963. from now on referred to as "Ordinance on Financial Statements").
     The Company is a special company submitting financial statements and preparing financial statements under Article 127 of the Ordinance on Financial Statements.

• Audit Certification

Under the provisions of Article 193-2 item 1 of the Financial Instruments and Exchange Law, the Company has undergone an audit by Deloitte Touche Tohmatsu LLC of the consolidated financial statements for the consolidated fiscal year (from April 1, 2022, to March 31, 2023) and the non-consolidated financial statements for the business year (from April 1, 2022, to March 31, 2023).

• Special efforts to ensure the appropriateness of consolidated financial statements, etc. and the establishment of a system that enables the proper preparation of consolidated financial statements, etc. based on IFRS
  The Company makes special efforts to ensure the appropriateness of its consolidated financial statements. It maintains a system that prepares consolidated financial statements appropriately under IFRS. The contents are as follows.
• 1. To appropriately understand the content of accounting standards, etc., and to develop a system that can adequately respond to changes, etc., in accounting stands, etc., the Company joined Financial Accounting Standards Foundation and participated in seminars, etc., sponsored by the foundation and auditing firms, etc.
  2. In applying IFRS, the Company obtained press releases and statements issued by the International Accounting Standards Board from time to time to keep track of the latest standards. To prepare the appropriate consolidated financial statements by IFRS, the Group has designed its accounting policies and guidelines and applies them to accounts processing.

－ 4 －

• 【Consolidated financial statements and Notes to consolidated financial statements】
• 1. Consolidated financial statements
  • Consolidated statement of financial position

Assets

Current assets

Cash and cash equivalents

Trade and other receivables

Other financial assets

Inventories

Other current assets

Total current assets

Non-current assets

Operating lease assets

Property, plant and equipment

Right of use assets

Goodwill

Intangible assets

Investment accounted for using equity method Other financial assets

Other non-current assets

Total non-current assets

Total assets

Note	Previous consolidated fiscal year	Current consolidated fiscal year
(As of March 31, 2022)	(As of March 31, 2023)
	Millions of yen	Millions of yen
8, 33	5,677	7,801
9, 33	493	540
10, 33	15,151	9,507
11	1,089	991
12	455	308
	22,865	19,147
13, 18	430	430
13	13,416	13,406
18	499	546
14	2,070	2,531
14	76	80
15	435	240
10, 33	9,571	13,641
12	105	166
	26,602	31,040
	49,467	50,187

－ 5 －

Liabilities and equity

Liabilities

Current liabilities

Trade and other payables

Bonds and borrowings

Lease liabilities

Other current liabilities

Total current liabilities

Non-current liabilities

Bonds and borrowings

Third-party interests in CEJ Fund

Lease liabilities

Provisions

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities

Equity

Share capital

Capital surplus

Treasury shares

Other components of equity Retained earnings

Total equity attributable to owners of the parent

Non-controlling interests Total equity

Total liabilities and equity

Note

19, 33

17, 31, 33 18, 31, 33 22

17, 31,33 31, 33, 34 18, 31, 33 21

16

23

23

23

32, 33

23

Previous consolidated fiscal year	Current consolidated fiscal year
(As of March 31, 2022)	(As of March 31, 2023)
Millions of yen	Millions of yen

418	690
34	89
118	147
259	365
828	1,291
34	21
3,629	4,792
389	412
96	96
1,040	1,577
-	14
5,189	6,913
6,017	8,204
10	10
42,869	42,877
(0)	(1,188)
(1,145)	(979)
1,679	1,381
43,413	42,101
38	(118)
43,450	41,983
49,467	50,187

－ 6 －

• 【Consolidated statement of profit or loss and consolidated statement of comprehensive income】 【Consolidated statement of profit or loss】

Revenue

Cost of sales

Gross profit

Selling, general and administrative expenses

Research and development expenses

Other selling, general and administrative expenses

Total selling, general and administrative expenses

Other income

Other expenses

Operating profit (loss)

Finance income

Finance costs

Gains related to CEJ Fund

Share of profit (loss) of investments accounted for using equity method

Profit (loss) before tax

Income tax expense

Profit (loss)

Profit (loss) attributable to

Owners of parent

Non-controlling interests

Profit (loss)

Earnings (loss) per share

Basic earnings (loss) per share (yen)

Diluted earnings (loss) per share (yen)

Note

6, 25

11, 18, 20, 26

18, 20, 26 18, 20, 26

27

27

28, 33

33

34

15

16

30

30

Previous consolidated fiscal year (From	Current consolidated fiscal year
April 1, 2021 to March 31, 2022)		(From April 1, 2022 to March 31, 2023)
Millions of yen				Millions of yen
2,150	(	3,289
(	688)	1,498)
1,462		1,791
(	713)		(	735)
1,797)		2,406)
(2,509)	(3,140)
(	175	(		212
		(	6)				(	8)
	878)		1,145)
(398	(1,312
		(	4)		(274
					193)
	115		(
	(	19)			53
				195)
	389)
(133)		(	446)
(
(522)		(393)
(	498)		(	298)
(	24)		(	95)
(	522)		(	393)
2.32)		1.39)
(					(
(2.32)		(1.39)

－ 7 －

【Consolidated statement of comprehensive income】

Profit (loss)

Other comprehensive income

Items that will not be reclassified to profit or loss

Financial assets measured at fair value through other comprehensive income

Total of items that will not be reclassified to profit or loss

Items that may be reclassified to profit or loss

Exchange differences on translation of foreign operation

Total of items that may be reclassified to profit or loss

Total other comprehensive income, net of tax

Comprehensive income

Comprehensive income attributable to

Owners of parent

Non-controlling interests

Comprehensive income

Note	Previous consolidated fiscal year	Current consolidated fiscal year
(From April 1, 2021 to March 31, 2022)	(From April 1, 2022 to March 31, 2023)
	Millions of yen	Millions of yen
	(522)	(393)
29,33	(20)	36
	(20)	36
29	149	134
	149	134
	129	170
	(393)	(223)
	(371)	(131)
	(22)	(91)
	(393)	(223)

－ 8 －

• 【Consolidated statement of changes in shareholders' equity】

				Equity attributable to owners of parent
								Other components of equity
	Note					Financial
	Share capital	Capital surplus	Treasury shares	assets		Exchange
		measured at	differences on	Stock
						fair value	translation of	acquisition
						through other	foreign	rights
						comprehensive	operations
						income
Profit (loss)		Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen
	－	－	(－	(1,286)	－	19
April 1, 2021		10	42,861		0)				(6)
								－		－
Other comprehensive income		－	－	－			20)	147	－
Total comprehensive income		－	－	－		(20)	147	－
Share-based payment transaction	32	－	8	－		(	－	－	－
Equity transaction with non-		－	－	－			－	－	－
controlling interest
Increase (decrease) by business		－	－	－			－	－	－
combination
					(
Total transactions with owners		－	8	－		－	－	－
Profit (loss)		－	－	(	0)		－	142	19
March 31, 2022		10	42,869			1,306)
				－			36	－	－
Other comprehensive income		－	－	－			130	－
Total comprehensive income	32	－	－	－			130	－
Share-based payment transaction	－	8					36
				－			－	－	－
Acquisition of treasury shares	23	－	－	(1,188)			－	－	－
Equity transaction with non-		－	－	－			－	－	－
controlling interest
Increase (decrease) by business		－	－	－			－	－	－
combination
Other		－	－	－			－	－	－
Total transactions with owners		－	8	(1,188)			－	－	－
March 31, 2023		10	42,877	(1,188)	(1,270)	272	19

－ 9 －

		Equity attributable to owners of parent
	Note	Other					Non-controlling	Total equity
	components of	Retained	Total		interests
		equity	earnings
		Total
		Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen
April 1, 2021		(	1,272)	2,177		498)		24)		522)
				43,776		10	43,786
Profit (loss)			－	(	498)	(	127	(		(
Other comprehensive income			127	－	2	129
Total comprehensive income	32		127	(	498)	(	371)	(	22)	(	393)
Share-based payment transaction		－	8	－	8
			－
Equity transaction with non-			－		－		－		8		8
controlling interest
										41
Increase (decrease) by business			－		－		8		41
combination					－
Total transactions with owners			－		－				49		58
March 31, 2022		(1,145)	1,679	43,413		38	43,450
Profit (loss)			－	(298)	(298)	(95)	(393)
Other comprehensive income			166		－	(131)		4	(223)
Total comprehensive income			166	(298)	(91)
				166		170
Share-based payment	32		－		－		8		－		8
transaction
Acquisition of treasury shares	23		－		－	(1,188)		－	(1,188)
Equity transaction with non-			－		－		－		9		9
controlling interest
Increase (decrease) by business			－		－		－	(75)		(75)
combination
Other			－		－		－		2		2
Total transaction with owners			－		－	(1,180)	(65)	(1,244)
March 31, 2023			(979)	1,381	42,101	(118)	41,983

－ 10 －