Statements of Income

(unit millions of yen)

	2018/12	2019/12
Net sales	61,815	63,285
Cost of sales	39,910	39,056
Gross profit	21,905	24,229
Selling, general and administrative expenses
Advertising expenses	896	764
Promotion expenses	721	594
Provision of allowance for doubtful accounts	4	43
Salaries and bonuses	4,251	4,340
Retirement benefit expenses	126	147
Share-based compensation expenses	83	112
Technical research expenses	4,361	5,248
Other	6,036	5,995
Total selling, general and administrative expenses	16,481	17,246
Operating profit	5,424	6,982
Non-operating income
Interest income	79	92
Dividend income	66	60
Foreign exchange gains	184	-
Rent income	12	12
Subsidy income	67	219
Other	174	236
Total non-operating income	584	621
Non-operating expenses
Interest expenses	44	44
Foreign exchange losses	-	12
Loss on retirement of non-current assets	34	53
Loss on abandonment of inventories	20	15
Other	31	76
Total non-operating expenses	131	201
Ordinary profit	5,877	7,403
Extraordinary income
Gain on sales of investment securities	85	-
Total extraordinary income	85	-
Profit before income taxes	5,963	7,403
Income taxes - current	1,382	1,815
Income taxes - deferred	250	257
Total income taxes	1,633	2,072
Profit	4,330	5,330
Profit attributable to owners of parent	4,330	5,330