CKD Corporation andConsolidated Subsidiaries
Consolidated Financial Statements
for the Years Ended
March 31, 2012 and 2011

［Consolidated Financial Statement, etc.］(1)［Consolidated Financial Statement］
ⅰ)［Consolidated Balance Sheet］(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2012)

Consolidated
Accounting Year(as of March 31, 2011)ASSETS
Current Assets:
Cash and cash equivalents

7,849

6,059

Notes and accounts receivable-trade

19,29018,466

Operating accounts receivable

3,150

3,538

Products and goods

3,586

3,816

Work-in-process

2,447

1,815

Raw materials and inventory goods

10,566

11,217

Deferred tax assets

1,302

1,350

Other691

702

Allowance for doubtful debts

△ 83

△ 103

Total current assets

48,801

46,863

Buildings and structures (net)

8,308

7,668

Machines and delivery equipment (net)

4,746

4,767

645

798

4,616

4,451

Noncurrent assets
Property, plant and equipment

Tools, equipment, furniture and fixtures (net)Land
Lease assets (net)

133

63

Construction in progress

182

227

18,633

17,977262

818

Investment securities

3,833

3,707

Deferred tax assets

12287

Total property, plant and equipmentIntangible fixed assets
Investment and other assets

Other568

733

Allowance for doubtful debts

△ 50

△ 106

Total Investments and Other assets

4,474

4,420

Total Noncurrent assets
Total ASSETS

123,370

23,216

72,17170,079(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2012)

Consolidated
Accounting Year(as of March 31, 2011)
LIABILITIESCurrent Liabilities
Notes and accounts payable-trade

11,030

9,335

Short-term loans payable

2,851

2,023

Current portion of long-term loans payable

700

700

Lease liabilities

7224

Accrued expenses

2,309

2,162

Income taxes payable

2,666

859

Provision for bonuses

4955

Provision for product warranties

4368

Provision for loss on order received

32

147

Other

3,223

3,179

Total Current Liabilities

22,93918,855

2,299

1,317

Fixed Liabilities
Long-term loans payable
Lease liabilities

6340

Deferred tax liabilities

252

341

Provision for retirement benefits

195

99

Asset retirement obligations

129

131

Other

955

970

3,896

2,901

26,836

21,757

11,016

11,016

Total Fixed Liabilities
Total LIABILITIESNet Assets
Shareholders' equity
Capital stock
Capital surplus

12,735

12,735Retained earnings

26,672

29,520Treasury stocks△ 5,040△ 4,71045,38348,560579498

△ 627

△ 736

△ 48

△ 238

45,33548,322

72,17170,079Total 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 Assets2ⅱ)［Consolidated Statements of income and Statements of comprehensive income］［Consolidated Statements of income］

SALES

72,020(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
72,804

Cost of Sales

51,36353,148Gross Profit

20,657

19,655

Consolidated
Accounting Year
(April 1, 2010 toMarch 31, 2011)

Selling, General and Administrative Expenses
Personal expenses

5,870

6,092

Retirement benefit expenses

391

408

Freightage and packing expenses

984

932

Rent

854

890

Outsourcing expense

500

558

Depreciation expense

247

248

2,245

2,151

Enterprise tax

133

130

Allowance for doubtful debts

41115

1,883

2,058

13,154

13,588

7,502

6,067

Interest income

1513Dividends income

6797

Office work fee

5868

Compensation income

1195

Other

210

178

Total Non-operating Income

364

452

Interest expenses

7575

Discounts

102

97

Foreign exchange loss

107

72

Other

53

62

Total Non-operating Expenses

338

307

7,528

6,213

Research and development expense

Other
Total Selling, General and AdministrativeExpenses
Operating Income
Non-operating Income

Non-operating Expenses

Ordinary Income3

(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)

Consolidated
Accounting Year
(April 1, 2010 toMarch 31, 2011)
Extraordinary Income
Gain on sales of fixed assets

1145

Subsidy income

810

Other0－Total Extraordinary Income

2055

Loss on sales of fixed assets

613

Loss on disposal of fixed assets

474182－78－

28

2Total Extraordinary Loss

244

57

Income before Income Taxes

7,304

6,211

Income taxes-current

2,868

2,346

Income taxes-deferred

△ 142

123

Income taxes

2,726

2,470

Income before Minority Interests

4,577

3,741

Net Income

4,577

3,741

Extraordinary Loss

Impairment loss
Amount from application of Accounting StandardforOther4

［Consolidated Statement of Comprehensive Income］
ConsolidatedAccounting Year
(April 1, 2010 toMarch 31, 2011)
Income before Minority Interests

4,577(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)
3,741

Other Comprehensive Income107△ 80

Foreign currency translation adjustment account

△ 292

△ 109

Total Other Comprehensive Income

Valuation difference on available-for-sale securities

△ 185

△ 189

Comprehensive Income

4,392

3,551(Details)
Comprehensive income related to shareholders of theparent company
Comprehensive income related to minority interest

4,392

3,551－－5iii) [Consolidated Statement of Changes in Net Assets](Unit：million yen)
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)

Consolidated
Accounting Year
(April 1, 2010 toMarch 31, 2011)
Shareholders' equity
Capital stock
Balance at the beginning of current period

11,016

11,016

Changes of items during the period－－

11,016

11,016

12,61012,735

Disposal of treasury stocks

124－

Total changes of items during the period

124－

12,735

12,73522,655

26,672

Dividends

△ 559

△ 888

Net income

4,577

3,741

Employee Encouragement and Welfare Fund

△1△5Total 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

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

Total changes of items during the period
Balance at the end of current period

4,017

2,847

26,672

29,520△ 4,938△ 5,040△ 1,000

△0898

329

Treasury Stocks
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stocks△ 101329△ 5,040△ 4,710

41,34345,383

Dividends

△ 559

△ 888

Net income

4,577

3,741

Purchase of treasury stock△ 1,000△0Disposal of treasury stocks

1,023329

Total 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

Employee Encouragement and Welfare Fund

△1

△5Total changes of items during the period

4,040

3,177

45,38348,560

Balance at the end of current period

6(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)

Consolidated
Accounting Year
(April 1, 2010 toMarch 31, 2011)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period

472

579

Net changes of items other than shareholders' equity

107

△ 80

Total changes of items during the period107△ 80579

498

△ 334

△ 627

Net changes of items other than shareholders' equity

△ 292

△ 109

Total changes of items during the period

△ 292

△ 109

△ 627

△ 736

137

△ 48Net changes of items other than shareholders' equity

△ 185

△ 189

Total changes of items during the period△ 185△ 189△ 48△ 238

41,48045,335

△ 559

△ 888

Changes of items during the period

Balance at the end of current period
Foreign Currency Translation Adjustment
Balance at the beginning of current period
Changes of items during the period

Balance at the end of current period
Accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period

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

4,577

3,741

Purchase of treasury stock

Net income△ 1,000△0

Disposal of treasury stocks

1,023329

Employee Encouragement and Welfare Fund

△1△5Net changes of items other than shareholders' equity

△ 185

△ 189

Total changes of items during the period

3,854

2,987

45,33548,322

Balance at the end of current period

7iv) [Consolidated Statement of Cash Flow](Unit: million yen)
Consolidated
Accounting Year
(April 1, 2011 toMarch 31, 2012)

Consolidated
Accounting Year
(April 1, 2010 toMarch 31, 2011)
Net Cash Provided by Operating Activities
Income before income taxes

7,304

6,211

Depreciation expense

2,639

2,769

Impairment loss

82－Increase (decrease) in allowance for doubtful accounts

3279

Increase (decrease) in provision for retirement benefits

△ 410

△ 238

96

Increase (decrease) in provision for bonuses
Increase (decrease) in accounts payable-bonuses
Interest and dividends income
Interest expenses
Loss (gain) on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting
standard for asset retirement obligation
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes

315

△ 102

△ 83

△ 111

75

75

△4△ 31474178－△ 3,860

331△ 3,761

△ 335

1,603

△ 1,561

109

146△ 72368

Other652

220

Sub-total

4,760

7,871

Interest and dividends income received

83111

Interest expenses paid

△ 77

△ 76

Income taxes paid

△ 720

△ 4,130

Income taxes refund
Net cash provided by operating activities

204,048

3,775

△ 944

△ 2,84721202

Net Cash Provided by Investing Activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets

△ 57

△ 384

Purchase of investment securities△ 25△ 105－100

Proceeds from sales of investment securities
OtherNet Cash Provided by Investing Activities

8△ 4213△ 1,048△ 3,020

(Unit: million yen)
Consolidated
Accounting Year(April 1, 2011 toMarch 31, 2012)

Consolidated
Accounting Year(April 1, 2010 toMarch 31, 2011)
Net Cash Provided by Financing Activities
Net increase (decrease) in short-termloans payable
Proceeds from long-term loans payable△ 435999－Repayment of long-term loans payable

△ 700

△ 982

△ 768

Purchase of treasury stock△0△0

Income from sale of treasury stocks

25256

△ 558

△ 886

Cash dividends paid
Other△ 96△ 69

Net cash provided by financing activities△ 766△ 2,450

△ 86

△ 71

Net increase (decrease) in cash and cash equivalents

2,147△ 1,767

Cash and cash equivalents at beginning of period

5,581

7,728

Cash and cash equivalents at end of period

7,728

5,961

Effect of exchange rate change on cash and cash equivalents

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 business segments reported are accounted almost in the same way as these shown in the section of [Important
Matters as the basis of Creating Consolidated Financial Statement].
The profits in each reporting segment are based on operating profit. Internal gains and amount of transfer amongsegments 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, 2010 to March 31, 2011)
Amountadjusted(Note 1)

Reporting segment
AutomaticMachineries Products

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

Total

Sales
Sales to external customers

13,061

58,95972,020―72,020

0223

224

△ 224

―

Total

13,062

59,182

72,245△ 224

72,020

Profit for segment

2,016

7,762

9,778

△ 2,275

7,502

Asset of segment

12,15049,674

61,825

10,346

72,171

Internal sales amount or amounttransferred among segments

Other items
Depreciation expenses
273
2,1682,441
197
2,639
Increase of tangible and238
1,899
2,138
42
2,180
intangible fixed assets
Note 1: Details of the amount adjusted（1） The amount of adjustment for ‘Sales’ i.e. △224 million yen is derived from elimination of transactions among segments.
（2） The amount of adjustment for ‘Profit for segment’ i.e. △2,275 million yen includes 32 million yen for elimination oftransactions among segments and △2,308 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 ‘Assets of segments’ i.e. 10,346 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. 197 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. 42 million yen mainly consists of the amount ofsystem investment for the entire company.
Note 2: ‘Profits for segment’ has already been adjusted with operating profits shown in the consolidated profit/loss statement.

10Consolidated Accounting Year (April 1, 2011 to March 31, 2012)
Amountadjusted(Note 1)

Reporting segment
AutomaticMachineries Products

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

TotalSales
Sales to external customers

14,76258,04172,804―72,804

3152156△ 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

70,079

268

2,319

2,588

181

2,769

705

2,111

2,817

146

2,963

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. △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&Dexpenses and costs related to CKD Global Service Co., Ltd.
（3） The amount of adjustment for ‘Assets of segments’ 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 ofsystem investment for the entire company.
Note 2: ‘Profits for segment’ has already been adjusted with operating profits shown in the consolidated profit/loss statement.

11