Adoption of IFRS 16, Leases, by Overseas Consolidated Subsidiaries

「Overseas consolidated subsidiaries that prepare financial statements in accordance with IFRS have applied IFRS 16 Leases from the current consolidated fiscal year. As a result, in principle, all leases held by lessees are recognized as assets and liabilities on the consolidated balance sheet. Consequently, on the consolidated balance sheet for the current consolidated fiscal year, other property, plant and equipment, net, increased by ¥2,220 million, other current liabilities increased by ¥637 million and lease obligations included in non-current liabilities increased by ¥1,354 million, while other intangible assets decreased by ¥321 million.」

「Overseas consolidated subsidiaries that prepare financial statements in accordance with IFRS have applied IFRS 16 Leases from the current first-quarter consolidated accounting period. As a result, in principle, all leases held by lessees are recognized as assets and liabilities on the consolidated balance sheet. The transition method adopted recognizes the cumulative effect permitted as a transitional measure at the date of initial application. As a result, on the consolidated balance sheet for the current first-quarter consolidated accounting period, other property, plant and equipment increased by ¥3,918 million, other current liabilities increased by ¥1,278 million and other non-current liabilities increased by ¥2,184 million, while other intangible assets decreased by ¥570 million. The impact of this change on profit or loss for the current first-quarter consolidated cumulative period was immaterial.」