CKD Corporation andConsolidated Subsidiaries
Consolidated Financial Statements
for the Years Ended
March 31, 2013 and 2012

［Consolidated Financial Statement, etc.］(1)［Consolidated Financial Statement］
ⅰ)［Consolidated Balance Sheet］(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2013)

Consolidated
Accounting Year(as of March 31, 2012)ASSETS
Current Assets:
Cash and cash equivalents

6,059

7,322

Notes and accounts receivable-trade18,466

16,294

Operating accounts receivable

3,538

2,355

Short-term investment securities
Products and goods－

3,000

3,816

3,915

Work-in-process

1,815

2,072

Raw materials and inventory goods

11,217

10,192

Deferred tax assets

1,350

1,167

702

1,332

Allowance for doubtful debts

△ 103

△ 71

Total current assets

46,86347,582

Buildings and structures (net)

7,668

7,178

Machines and delivery equipment (net)

4,767

4,547

Other

Noncurrent assets
Property, plant and equipment

Tools, equipment, furniture and fixtures (net)
Land

798

677

4,451

4,463

Lease assets (net)63106

Construction in progress

227

1,369

17,977

18,342818

823

Investment securities

3,707

3,932

Deferred tax assets

87178

Total property, plant and equipment
Intangible fixed assets
Investment and other assets

733

917

Allowance for doubtful debts

Other△ 106△ 33

Total Investments and Other assets

4,420

4,994

23,21624,16070,07971,742

Total Noncurrent assets
Total ASSETS

1

(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2013)

Consolidated
Accounting Year(as of March 31, 2012)
LIABILITIESCurrent Liabilities
Notes and accounts payable-trade

9,335

8,035

Short-term loans payable

2,023

1,789

700

1,120

Current portion of long-term loans payable
Lease liabilities

2447

Accrued expenses

2,162

1,971

859

201

Income taxes payable
Provision for bonuses

55

73

Provision for product warranties

368

293

Provision for loss on order received

147

151

Other

3,179

3,120

Total Current Liabilities

18,855

16,804

1,317

2,161

Fixed Liabilities
Long-term loans payable
Lease liabilities

40

63

Deferred tax liabilities

341

567

Provision for retirement benefits

99118

Asset retirement obligations

131

134

Other

970

1,039

Total Fixed Liabilities

2,901

4,085

21,757

20,890Capital stock11,016

11,016

Capital surplus

12,735

12,737Retained earnings

29,52031,273

Treasury stock△ 4,710△ 4,832

48,56050,194498

622

Total LIABILITIESNet Assets
Shareholders' equity

Total Shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total Net Assets
Total Liabilities and Net Assets

2△ 736

36

△ 238

658

48,32250,85270,07971,742ⅱ)［Consolidated Statements of income and Statements of comprehensive income］［Consolidated Statements of income］
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
72,804(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)
65,031

Cost of Sales

53,14848,008Gross Profit

19,65517,022

6,092

6,230

SALES

Selling, General and Administrative Expenses
Personal expenses
Retirement benefit expenses

408

430

Freightage and packing expenses

932

902

Rent

890

916

Outsourcing expense

558

561

Depreciation expense

248

255

2,151

2,336

130108

Research and development expense
Enterprise tax

115－

Other

2,058

2,035Total Selling, General and Administrative Expenses

13,588

13,778

6,067

3,244

Interest income

1315

Dividends income

97

91

Foreign exchange gains－110

Office work fee

68

71

Other273

246

Total Non-operating Income

452

536

Allowance for doubtful debts

Operating Income
Non-operating Income

Non-operating Expenses
Interest expenses

75

73

Discounts

97

112

Foreign exchange loss

72

－

Other

62

76

Total Non-operating Expenses

307

262

6,213

3,517

Ordinary Income3

(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)

Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
Extraordinary Income
Gain on sales of fixed assets

453

Subsidy income

10－

Total Extraordinary Income

55

3

Loss on sales of fixed assets

133

Loss on disposal of fixed assets

41

15

Other2－

Total Extraordinary Loss

57

18

Income before Income Taxes

6,211

3,502

Income taxes-current

2,346

808

Income taxes-deferred

123

241

Income taxes

2,470

1,050

Income before Minority Interests

3,741

2,452

Net Income

3,741

2,452

Extraordinary Loss4

［Consolidated Statement of Comprehensive Income］

3,741(Unit：million yen)
ConsolidatedAccounting Year
(April 1, 2012 toMarch 31, 2013)
2,452△ 80123

Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
Income before Minority Interests
Other Comprehensive Income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment account△ 109773

Total Other Comprehensive Income△ 189896

Comprehensive Income

3,551

3,348(Details)
Comprehensive income related to shareholders of theparent company
Comprehensive income related to minority interest

3,551

3,348－－5iii) [Consolidated Statement of Changes in Net Assets](Unit：million yen)
Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)

Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
Shareholders' equity
Capital stock
Balance at the beginning of current period

11,016

11,016－－

11,016

11,016

12,735

12,735

Disposal of treasury stock－△0

Transfer to capital surplus from retained earnings－

2

Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital Surplus
Balance at the beginning of current period
Changes of items during the period－

212,735

12,737

26,672

29,520

Dividends

△ 888

△ 692

Net income

3,741

2,452－△2

Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period

Transfer to capital surplus from retained earnings
Employee Encouragement and Welfare Fund

△5△4Total changes of items during the period

2,847

1,752

29,52031,273△ 5,040△ 4,710Purchase of treasury stock△0△ 492

Disposal of treasury stock

329370Total changes of items during the period329△ 121△ 4,710△ 4,832

45,38348,560

Balance at the end of current period
Treasury Stocks
Balance at the beginning of current period
Changes of items during the period

Balance at the end of current period
Total Shareholders' equity
Balance at the beginning of current period
Changes of items during the period
Dividends

△ 888

△ 692

Net income

3,741

2,452

Purchase of treasury stock△0△ 492

Disposal of treasury stock

329370

Employee Encouragement and Welfare Fund

△5△4

Total changes of items during the period

3,177

1,633

48,56050,194

Balance at the end of current period

6

(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)

Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period

579498△ 80123△ 80123498622

Balance at the beginning of current period

△ 627

△ 736

Changes of items during the period
Net changes of items other than shareholders'equity
Total changes of items during the period△ 109773△ 109773

Balance at the end of current period

△ 736

36

Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Foreign Currency Translation Adjustment

Accumulated other comprehensive income
Balance at the beginning of current period

△ 48

△ 238

Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period△ 189896△ 189896

Balance at the end of current period△ 238658

45,33548,322

Dividend△ 888△ 692

Net income

3,741

2,452

Purchase of treasury stock△0△ 492

Total Net Assets
Balance at the beginning of current period
Changes of items during the period

Disposal of treasury stock

329370

Employee Encouragement and Welfare FundNet changes of items other than shareholders'equityTotal changes of items during the period△5△4△ 189896

Balance at the end of current period

72,987

2,529

48,32250,852

iv) [Consolidated Statement of Cash Flow](Unit: million yen)
Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)Consolidated
Accounting Year(April 1, 2011 toMarch 31, 2012)
Net Cash Provided by Operating Activities
Income before income taxes

6,211

3,502

Depreciation expense

2,769

2,619

Increase (decrease) in allowance for doubtful accounts

79

△ 113

Increase (decrease) in provision for retirement benefits

△ 238

△ 203

611

Increase (decrease) in accounts payable-bonuses

△ 102

△ 238

Interest and dividends income

△ 111

△ 107

75

73

Increase (decrease) in provision for bonuses

Interest expenses
Loss (gain) on sales of noncurrent assets△ 310

Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories

41153313,786△ 335967△ 1,561△ 1,681

146

226

Increase (decrease) in accrued consumption taxes

368

△ 366

Other220△ 61

Sub-total

7,871

8,431

Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received

Interest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities

111105△ 76△ 73△ 4,130△ 1,455003,775

7,008

Net Cash Provided by Investing Activities
Purchase of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment－△ 2,000△ 2,847△ 2,532

202

2

Purchase of intangible assets

△ 384

△ 458

Purchase of investment securities△ 105△5Proceeds from sales of investment securities

100－

Other13△ 23△ 3,020△ 5,017

Net Cash Provided by Investing Activities

8(Unit: million yen)
Consolidated
Accounting Year(April 1, 2012 toMarch 31, 2013)

Consolidated
Accounting Year(April 1, 2011 toMarch 31, 2012)
Net Cash Provided by Financing Activities△ 768

Net increase (decrease) in short-term loans payable△ 358

Proceeds from long-term loans payable－2,600

Repayment of long-term loans payable△ 982△ 1,336

Purchase of treasury stock△0△ 492

Income from sale of treasury stock

256253

△ 886

△ 692

Cash dividends paid
OtherNet cash provided by financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents

△ 69

△ 30

△ 2,450△ 57△ 71286△ 1,767

2,219

Cash and cash equivalents at beginning of period

7,728

5,961

Cash and cash equivalents at end of period

5,961

8,180

9

[Segment Information]
1.Outline of Reporting Segments
The reporting segments of the CKD Group refers to the constituents of CKD and its subsidiaries that financial
statements separated from consolidated one is available and that are the scope of regular discussion by the Boardof Directors of CKD to determine how corporate resources are to be allocated and to evaluate businessperformance.
The constituents of the CKD Group consist of product segments, which include two reporting segments of‘Automatic Machinery Products’ and ‘Component Products’ separated based on the type, properties and sales
method of products.
In Automatic Machinery Products, automatic packaging system, lithium ion battery manufacturing system andother large-scale facilities are manufactured and sold. They are produced upon receiving an order. In Component
Products, functional parts that can be applied to semiconductor-related businesses, automobilerelated industries
and other markets of diversified kinds are manufactured and sold. They are produced by forecasting demands ofeach items.
2. Calculation Methods of Sales, Profit/Loss, Assets, Liabilities and other Accounting Items for each Reporting Segment
The profits in each reporting segment are based on operating profit. Internal gains and amount of transfer among
segments are based on current market prices.
3. Information on Reporting-Segment-Wise Sales, Profit/Loss, Assets, Liabilities and other Accounting Items
Consolidated Accounting Year (April 1, 2011 to March 31, 2012)
Amountadjusted(Note 1)

Reporting segment
AutomaticMachineries Products

ComponentProducts(Unit: million yen)Amount shown in the
consolidated financial
statement(Note 2)

Total

Sales
Sales to external customers

14,76258,04172,804―72,8043152

156△ 156―

Total

14,76558,19472,960△ 156

72,804

Profit for segment

2,053

6,229

8,283

△ 2,215

6,067

Asset of segment

11,32849,816

61,144

8,935

70,079Internal sales amount or amounttransferred among segments

Other items
Depreciation expenses

268
2,319
2,588
181
2,769
Increase of tangible and705
2,111
2,817
146
2,963
intangible fixed assets
Note 1: Details of the amount adjusted（1） The amount of adjustment for ‘Sales’ i.e. △156 million yen is derived from elimination of transactions among segments.
（2） The amount of adjustment for ‘Profit for segment’ i.e. △2,215 million yen includes 190 million yen for elimination oftransactions among segments and △2,406 million yen as the total company expenses that aren’t allocated to eachreporting segment. The total company expenses mainly refers to expenses related to administration of CKD, long-term R&D
expenses and costs related to CKD Global Service Co., Ltd.
（3） The amount of adjustment for ‘Asset of segment’ i.e. 8,935 million yen is the total company assets not allocated to eachreporting segment. This mainly consists of working surplus funds (cash and deposits) and long-term investment funds(investment securities).
（4） The amount adjusted for depreciation expenses i.e. 181 million yen mainly consists of depreciation amounts related to head
office building.
（5） The amount adjusted for increase of tangible/intangible fixed assets, i.e. 146 million yen mainly consists of the amount of system
investment for the entire company.

Note 2: ‘Profit for segment’ has already been adjusted with operating income shown in the consolidated statement of income.

10Consolidated Accounting Year (April 1, 2012 to March 31, 2013)
Amountadjusted(Note 1)

Reporting segment
Automatic
Machineries Products

Component
Products(Unit: million yen)Amount shown in theconsolidated financialstatement(Note 2)

Total

Sales
Sales to external customers

14,20250,82865,031―65,031

―

207

207

△ 207

―

Total

14,202

51,036

65,238△ 207

65,031

Profit for segment

1,476

4,1095,585△ 2,341

3,244

Asset of segment

13,10046,09959,19912,542

71,742

372

2,066

2,439

180

2,619

352

2,184

2,537

173

2,710

Internal sales amount or amounttransferred among segments

Other items
Depreciation expenses
Increase of tangible andintangible fixed assets
Note 1: Details of the amount adjusted（1） The amount of adjustment for ‘Sales’ i.e. △207 million yen is derived from elimination of transactions among segments.
（2） The amount of adjustment for ‘Profit for segment’ i.e. △2,341 million yen includes 34 million yen for elimination oftransactions among segments and △2,375 million yen as the total company expenses that aren’t allocated to eachreporting segment. The total company expenses mainly refers to expenses related to administration of CKD, long-term R&D
expenses and costs related to CKD Global Service Co., Ltd.
（3） The amount of adjustment for ‘Asset of segment’ i.e. 12,542 million yen is the total company assets not allocated to eachreporting segment. This mainly consists of working surplus funds (cash and deposits) and long-term investment funds(investment securities).
（4） The amount adjusted for depreciation expenses i.e. 180 million yen mainly consists of depreciation amounts related to head
office building.
（5） The amount adjusted for increase of tangible/intangible fixed assets, i.e. 173 million yen mainly consists of the amount osystem investment for the entire company.
Note 2: ‘Profit for segment’ has already been adjusted with operating income shown in the consolidated statement of income.

11