Adoption of Accounting Standards for Revenue Recognition

「The Company applied the Accounting Standard for Revenue Recognition and other relevant standards from the beginning of the current consolidated fiscal year. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. As a result, net sales and selling, general and administrative expenses for the current consolidated fiscal year each decreased by ¥37.5 million. There was no impact on operating profit, ordinary profit or profit before income taxes and other adjustments for the current fiscal year.」

「The Company applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020, hereinafter the “Revenue Recognition Standard”) and other relevant standards from the beginning of the first quarter of the consolidated fiscal year. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. Accordingly, sales incentives, previously recorded in selling, general and administrative expenses, are now deducted from net sales. As a result, net sales and selling, general and administrative expenses for the first nine months of the current consolidated fiscal year each decreased by ¥26.7 million. There was no impact on operating profit, ordinary profit or profit before income taxes and other adjustments.」

「The Company applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020, hereinafter the “Revenue Recognition Standard”) and other relevant standards from the beginning of the first quarter of the consolidated fiscal year. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. Accordingly, sales incentives, previously recorded in selling, general and administrative expenses, are now deducted from net sales. The application of the Revenue Recognition Standard and other relevant standards follows the transitional treatment prescribed in the proviso to paragraph 84 of the Revenue Recognition Standard. The cumulative effect of applying the new accounting policy retrospectively before the beginning of the first quarter of the consolidated fiscal year was added to or deducted from retained earnings at the beginning of the first quarter, and the new accounting policy was applied from that opening balance. As a result, net sales and selling, general and administrative expenses for the first six months of the current consolidated fiscal year each decreased by ¥17.5 million. There was no impact on operating profit, ordinary profit or profit before income taxes and other adjustments.」

「The Company applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020) and other relevant standards from the beginning of the first quarter of the current consolidated fiscal year. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. Accordingly, sales incentives, previously recorded in selling, general and administrative expenses, are now deducted from net sales. As a result, net sales and selling, general and administrative expenses for the first quarter of the current consolidated fiscal year each decreased by ¥7.2 million. There was no impact on operating profit, ordinary profit or profit before income taxes and other adjustments.」