Scroll : Annual Securities Report from April 1, 2022 to March 31, 2023

Annual Securities Report

Fiscal Year	From April 1, 2022
(82nd)	To March 31, 2023

Scroll Corporation

2-24-1 Sato, Naka-ku,Hamamatsu-shi, Shizuoka

(E03054)

		Table of Contents
[Cover]
Part I.		Information on the Company	1
I.	Overview of the Company	1
1.		Key financial data and trends	1
2.		History	5
3.		Description of business	7
4.		Information on subsidiaries and affiliates	9
5.		Employees	11
II.	Business Overview	13
1.		Management policy, management environment, and issues to be tackled, etc	13
2.		Approach and initiatives regarding sustainability	14
3.		Business and other risks	20
4.		Management's analysis of financial position, operating results and cash flows	31
5.		Important business contracts	36
6.		Research and development activities	36
III.	Equipment and Facilities	37
1.		Overview of capital expenditures	37
2.		Major equipment and facilities	37
3.		Plans for new additions or disposals	37
IV.	Corporate Information	38
1.		Information on the Company's shares	38
(1)	Number of shares and other	38
(2)	Status of the share acquisition rights	38
(3)	Exercise status of bonds with share acquisition rights containing a clause for exercise price adjustment	38
(4)	Changes in the number of shares issued and the amount of share capital and other	38
(5)	Details of shareholders	39
(6)	Principal shareholders	40
(7)	Status of voting rights	40
2.		Acquisition of treasury shares	41
3.		Dividend policy	42
4.		Corporate governance	43
(1)	Status of corporate governance	43
(2)	Directors (and other officers)	50
(3)	Status of audits	56
(4)	Executive compensation	59
(5)	Status of shares held	61
V.	Financial Information	65
1.		Consolidated Financial Statements	66
(1)	Consolidated financial statements	66
(2)	Other	102
2.		Non-Consolidated Financial Statements	103
(1)	Non-consolidated financial statements	103
(2)	Details of major assets and liabilities	113
(3)	Other	113
VI.	Information on Transfer and Repurchase of the Company's Stock	114
VII.		Reference Information on the Company	116
1.		Information on the parent company or equivalent of the Company	116
2.		Other reference information	116
Part II.		Information on Guarantors for the Company	116

Auditor's Report

[Cover]

[Document Submitted]	Annual Securities Report ("Yukashoken Hokokusho")
[Article of the Applicable Law Requiring	Article 24, paragraph 1 of the Financial Instruments and Exchange Act
Submission of This Document]
[Filed to]	Director-General of the Kanto Local Finance Bureau
[Date of Submission]	May 31, 2023
[Fiscal Year]	82nd Fiscal Year (From April 1, 2022 to March 31, 2023)
[Company Name]	Kabushiki-Kaisha Scroll
[Company Name (in English)]	Scroll Corporation
[Position and Name of Representative]	Tomohisa Tsurumi, Representative Director and President
[Location of Head Office]	2-24-1 Sato, Naka-ku,Hamamatsu-shi, Shizuoka
[Phone No.]	053 (464) 1114 (direct line)
[Contact for Communications]	Yasunori Sugimoto, Director and General Manager of Corporate Management
Department
[Nearest Contact]	2-24-1 Sato, Naka-ku,Hamamatsu-shi, Shizuoka
[Phone No.]	053 (464) 1114 (direct line)
[Contact for Communications]	Yasunori Sugimoto, Director and General Manager of Corporate Management
Department
[Place Where Available for Public Inspection]	Tokyo Stock Exchange, Inc.
	(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo)

Part I. Information on the Company

1. Overview of the Company

1. Key financial data and trends

1. Consolidated financial data

Fiscal year		78th
Year ended		March 31,
	2019
Net sales	(Millions of yen)	71,153
Ordinary profit	(Millions of yen)	1,415
Profit attributable	(Millions of yen)	631
to owners of parent
Comprehensive income	(Millions of yen)	335
Net assets	(Millions of yen)	21,156
Total assets	(Millions of yen)	42,368
Net assets per share	(Yen)	616.92
Earnings per share	(Yen)	18.47
Diluted earnings per share	(Yen)	18.44
Equity ratio	(%)	49.9
Return on equity	(%)	3.0
Price earnings ratio	(Times)	20.3
Cash flows from operating	(Millions of yen)	467
activities
Cash flows from investing	(Millions of yen)	(2,370)
activities
Cash flows from financing	(Millions of yen)	1,617
activities
Cash and cash equivalents	(Millions of yen)	5,473
at end of the period
Employees		850
[ ] represents the average	(Persons)
number of part-time	[986]
employees not included in
the above numbers

79th

March 31,

2020

72,634

2,296

703

548

21,462

43,270

621.20

20.46

-

49.6

3.3

14.1

1,573

(1,780)

(433)

4,828

864

[944]

80th	81st	82nd
March 31,	March 31,	March 31,
2021	2022	2023
85,195	81,391	81,018
7,519	7,096	6,191
5,183	5,585	4,170
5,472	5,663	4,118
26,648	30,037	31,997
49,903	49,711	53,200
764.30	861.53	914.94
149.65	160.20	119.39
-	-	-
53.4	60.4	60.1
21.6	19.7	13.4
7.3	5.2	6.8
3,956	3,711	5,853
(3,312)	(1,208)	(414)
2,608	(3,473)	(2,322)
8,084	7,142	10,267
866	866	893
[920]	[925]	[978]

Notes: 1. In the calculation of earnings per share for the 78th through 80th fiscal years, the Company shares held by The Nomura Trust and Banking Co., Ltd. (Scroll Employees' Shareholding Association Exclusive Trust Account) were included in treasury shares, which were deducted in the calculation of the average number of shares during the period.

1. In the calculation of net assets per share for the 78th and 79th fiscal years, the Company shares held by The Nomura Trust and Banking Co., Ltd. (Scroll Employees' Shareholding Association Exclusive Trust Account) were included in treasury shares, which were deducted in the calculation of the total number of shares issued at the end of the period.
2. Diluted earnings per share for the 79th fiscal year is not shown because there are no residual shares with dilutive effects. Diluted earnings per share for the 80th through 82nd fiscal years are not shown because there are no residual shares.

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4. "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. are applied from the beginning of the 81st fiscal year onwards, and key management indicators for the 81st fiscal year onwards are those after the application of the said accounting standard, etc.

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