Statements of Cash Flow

(Millions of yen)

	FY2022	FY2023
Cash flows from operating activities
Profit before income taxes	16,766	106,251
Depreciation	5,126	5,569
Impairment loss	－	10,811
Amortization of goodwill	721	750
Increase (decrease) in allowance for doubtful accounts	62	53
Increase (decrease) in provision for bonuses	(96)	(479)
Increase (decrease) in retirement benefit liability	(0)	(4)
Decrease (increase) in retirement benefit asset	(120)	(369)
Increase (decrease) in provision for share awards for directors (and other officers)	2	－
Increase (decrease) in provision for employees stock ownership plan trust	(5)	(25)
Interest and dividends income	(82)	(85)
Interest expenses	393	439
Subsidy income	(968)	(523)
Sponsorship income	(100)	(83)
Share of loss (profit) of entities accounted for using equity method	(153)	(131)
Costs related on sales of shares of subsidiaries and associates	－	1,164
Loss (gain) on sales and retirement of non-current assets	97	297
Loss (gain) on sales of investment securities	(1,267)	(0)
Loss (gain) on valuation of investment securities	－	685
Loss(gain) on sales of shares of subsidiaries and associates	(17)	(112,040)
Decrease (increase) in accounts receivable-trade, and contract assets	(1,188)	4,177
Decrease (increase) in inventories	199	(567)
Decrease (increase) in other assets	(3,023)	(1,267)
Increase (decrease) in trade payable	(901)	(932)
Increase (decrease) in accrued consumption taxes	39	(960)
Increase (decrease) in deposits received	1,061	(1,281)
Increase (decrease) in other liabilities	1,717	21
Other, net	(161)	(2)
Subtotal	18,102	11,468
Interest and dividends received	98	103
Interest paid	(374)	(445)
Subsidy received	968	723
Support money received	100	83
Income taxes paid	(12,932)	(4,535)
Net cash provided by 8used in) operating activities	5,961	7,397
Cash flows from investment activities
Decrease (increase) in time deposits	(21)	60
Purchase of property, plant, and equipment	(9,029)	(15,244)
Proceeds from sales of property, plant, and equipment	99	5
Purchase of intangible assets	(4,591)	(4,905)
Purchase of investment securities	(595)	(417)
Proceeds from sales of investment securities	1,790	0
Purchase of shares of subsidiaries resulting in change in scope of consolidation	(1,268)	－
Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation	－	115,228
Loans advances	(10)	(6)
Proceeds from collection of loans receivable	20	8
Payments of leasehold and guarantee deposits	(638)	(815)
Proceeds from refund of leasehold and guarantee deposits	1,962	642
Payments for asset retirement obligation	(79)	(49)
Payments for acquisition of business	－	(207)
Other, net	(140)	(47)
Net cash provided by (used in) used in investment activities	(12,502)	94,252
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(14)	153
Proceeds from long-term borrowings	15,727	2,500
Repayments of long-term borrowings	(10,339)	(10,325)
Repayments of finance lease liabilities	(448)	(446)
Redemption of bonds	(586)	(586)
Proceeds from share issuance to non-controlling shareholders	201	559
Purchase of treasury shares	(0)	(597)
Proceeds from disposal of treasury shares	－	597
Purchase of treasury shares of subsidiaries	(1,506)	(0)
Purchase of shares of subsidiaries not resulting in change in scope of consolidation	(162)	(164)
Proceeds from sale of shares of subsidiaries not resulting in change in scope of consolidation	5	－
Dividends paid	(1,392)	(1,392)
Dividends paid to non-controlling interests	(3,776)	(3,176)
Net cash provided by (used in) financing activities	(2,292)	(12,879)
Effect of exchange rate change on cash and cash equivalents	174	298
Net increase (decrease) in cash and cash equivalents	(8,658)	89,068
Cash and cash equivalents at beginning of period	56,578	47,919
Increase in cash and cash equivalents resulting from inclusion of subsidiaries from consolidation	－	59
Cash and cash equivalents at end of period	47,919	137,047