CKD Corporation andConsolidated Subsidiaries
Consolidated Financial Statements
for the Years Ended
March 31, 2014 and 2013

［Consolidated Financial Statement, etc.］(1)［Consolidated Financial Statement］①［Consolidated Balance Sheet］(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2014)

Consolidated
Accounting Year(as of March 31, 2013)ASSETS
Current Assets:
Cash and deposits

7,322

9,982

Notes and accounts receivable-trade16,294

19,548Operating accounts receivable

2,355

2,751

Short-term investment securities

3,000

4,000

Merchandise and finished goods

3,915

3,691

Work-in-process

2,072

2,103

Raw materials and supplies

10,192

10,805

Deferred tax assets

1,167

1,562

Other

1,332

2,363

Allowance for doubtful debts

ᇞ 71ᇞ 68

47,582

56,739Buildings and structures (net)

7,178

7,229

Machinery, equipment and vehicles (net)

4,547

5,717

Total current assets
Noncurrent assets
Property, plant and equipment

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

677

896

4,463

4,474

106

75

Construction in progress

1,369

4,336

Total property, plant and equipment

18,342

22,728823

749

Intangible assets
Investment and other asset

3,932

5,229

Net defined benefit assets

Investment securities―511

Deferred tax assets

178

155

Other917

623

Allowance for doubtful debts

ᇞ 33

ᇞ 27

Total Investments and Other assets
Total Noncurrent assets
Total ASSETS

1

4,994

6,492

24,16029,971

71,742

86,711

(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2014)

Consolidated
Accounting Year(as of March 31, 2013)
LIABILITIESCurrent Liabilities
Notes and accounts payable-trade

8,035

10,492

Short-term loans payable

1,7891,546

Current portion of long-term loans payable

1,120

520

Lease obligations

47

46

Accrued expenses

1,971

2,541

201

2,544

Provision for bonuses

73101

Provision for product warranties

293

282

Income taxes payable

Provision for loss on order received

151

218

Other

3,120

6,441

Total Current Liabilities

16,804

24,734

2,161

1,380

Noncurrent liabilities
Long-term loans payable
Lease obligations

63

31

Deferred tax liabilities

567

1,049

Provision for retirement benefits

118―

Net defined benefit liabilities―

165

Asset retirement obligations134

136

Other

1,039

1,501

Total Noncurrent liabilities

4,085

4,264

20,89028,999

Capital stock

11,016

11,016

Capital surplus

12,737

12,737

Total LIABILITIESNet Assets
Shareholders' equity

Retained earnings

31,27335,913

Treasury stockᇞ 4,832

ᇞ 4,609

Total Shareholders' equity

50,19455,057

622

1,247

36

1,848

Remeasurements of defined benefit plans―ᇞ 440

Total accumulated other comprehensive income

658

2,654

50,852

57,712

71,742

86,711

Accumulated other comprehensive income
Valuation difference on available-for-salesecuritiesForeign currency translation adjustment

Total Net Assets
Total Liabilities and Net Assets2②［Consolidated Statements of income and Statements of comprehensive income］［Consolidated Statements of income］

Net sales

65,031(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2013 toMarch 31, 2014)
75,491

Cost of Sales

48,00852,339Gross Profit

17,022

23,151

6,230

6,869

Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)

Selling, General and Administrative Expenses
Personal expenses
Retirement benefit expenses

430349Packing and transportation expenses

902930Rent expenses

916

999

Business consignment expenses

561

635

Depreciation

255

282

2,336

2,709

108

132

Research and development expense
Enterprise tax
Other

2,035

2,360

Total Selling, General and Administrative Expenses

13,77815,268

3,244

7,883

15

20

Dividends income

91

87

Foreign exchange gains

110

56

Operating Income
Non-operating Income
Interest income

Office work fee

71

65

Other

246

273

Total Non-operating Income

536

505

Interest expenses

73

63

Sales discounts

112

127

Other

76

59

Total Non-operating Expenses

262

251

3,517

8,136

Non-operating Expenses

Ordinary Income
Extraordinary IncomeGain on sales of noncurrent assets

310

Gain on revision of retirement benefit plan－294

Other－

2

Total Extraordinary Income

3306

Loss on sales of noncurrent assets

314

Loss on retirement of noncurrent assets

1551

Extraordinary Loss

Total Extraordinary Loss

1865

Income before Income Taxes

3,502

8,377

Income taxes-current

808

2,866

Income taxes-deferred

241

54

1,050

2,921

Income taxes
Income before minority interests

2,452

5,456

Net Income

2,452

5,456

3

［Consolidated Statement of Comprehensive Income］

2,452(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2013 toMarch 31, 2014)
5,456

Valuation difference on available-for-sale securities

123625

Foreign currency translation adjustment

773

1,811

Total Other Comprehensive Income

896

2,436

Comprehensive Income

3,348

7,892

(Details)
Comprehensive income attributable to owners of theparent
Comprehensive income attributable to minority
interests

3,348

7,892－－

Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)
Income before minority interests
Other comprehensive income4③[ Consolidated Statement of Changes in Net Assets]
Consolidated Accounting Year (April 1, 2012 to March 31, 2013)(Unit：million yen)
Shareholders' equity
Capital stock
Balance at the beginning of current period

Capital Surplus

11,016

12,735Retained earnings Treasury Stocks

Total Shareholders'equity

ᇞ 4,710

48,56029,520Changes of items during the period
Dividends from surplus

ᇞ 692

Net income

2,452

Purchase of treasury stock
Disposal of treasury stock
Transfer to capital surplus from retained
earnings
Employee encouragement and welfare
fundNet changes of items other thanshareholders'equity
Total changes of items during the period
Balance at the end of current period

△02

ᇞ 692
2,452
ᇞ 492

ᇞ 492

370

370

ᇞ2―

ᇞ4

ᇞ4―

21,752

ᇞ 121

1,633

11,016

12,73731,273

ᇞ 4,832

50,194

Accumulated other comprehensive income

Balance at the beginning of current period

Accumulated
Valuation difference
Foreign currency Remeasurements
translation
otherof defined benefit
on available-for-saleplansadjustment
comprehensive
securities
498
ᇞ 736
―
ᇞ 238

Total Net Assets

48,322

Changes of items during the period
ᇞ 692

Dividends from surplus
Net income

2,452

Purchase of treasury stockᇞ 492

Disposal of treasury stock
Transfer to capital surplus from retainedearnings
Employee encouragement and welfare
fund
Net changes of items other thanshareholders'equity
Total changes of items during the period
Balance at the end of current period

370
―
ᇞ4
123

773

―

896

896

123

773

―

896

2,529

622

36

―

658

50,852

5

Consolidated Accounting Year (April 1, 2013 to March 31, 2014)
Shareholders' equity
Capital stock
Balance at the beginning of current period

Capital Surplus

11,016

12,737Retained earnings Treasury Stocks

Total Shareholders'equity

ᇞ 4,832

50,194

31,273

Changes of items during the period
Dividends from surplus

ᇞ 811

Net income

5,456

Purchase of treasury stock
Disposal of treasury stock
Employee encouragement and welfarefund
Net changes of items other thanshareholders'equity
Total changes of items during the period
Balance at the end of current period△0ᇞ 8115,456△0△0223

223

ᇞ3ᇞ3―

△0

4,640

223

4,863

11,016

12,73735,913

ᇞ 4,609

55,057

Accumulated other comprehensive income

Balance at the beginning of current period

AccumulatedValuation difference
Foreign currency Remeasurements
translation
otherof defined benefit
on available-for-saleplansadjustment
comprehensive
securities
622
36―
658

Total Net Assets

50,852

Changes of items during the period
Dividends from surplus

ᇞ 811

Net income

5,456

Purchase of treasury stock△0

Disposal of treasury stock
Employee encouragement and welfare
fund
Net changes of items other thanshareholders'equity
Total changes of items during the period

223

Balance at the end of current period

ᇞ3625

1,811

ᇞ 440

1,995

1,995

625

1,811

ᇞ 440

1,995

6,859

1,247

1,848

ᇞ 440

2,654

57,7126

④ [Consolidated Statement of Cash Flow](Unit: million yen)
Consolidated
Accounting Year
(April 1, 2013 toMarch 31, 2014)

Consolidated
Accounting Year
(April 1, 2012 toMarch 31, 2013)
Net Cash Provided by Operating Activities
Income before income taxes

3,502

8,377

Depreciation and amortization

2,619

2,485

Increase (decrease) in provision for bonuses

1113

Increase (decrease) in accounts payable-bonuses

ᇞ 238

504

Increase (decrease) in provision for retirement benefits

ᇞ 203――

ᇞ 833

3,786ᇞ 2,854

Decrease (increase) in net defined benefit assets
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

967

66

ᇞ 1,681

1,873

226

ᇞ 427

Other

ᇞ 559

593

Sub-total

8,431

9,799

Interest and dividends income received

105

108

Interest expenses paid

ᇞ 73

ᇞ 66

ᇞ 1,455

ᇞ 595

Income taxes paid
Income taxes refund
Net cash provided by operating activities

0508

7,008

9,754

ᇞ 24

ᇞ 1,004

ᇞ 2,000ᇞ 1,000

ᇞ 2,532

ᇞ 3,761

Net Cash Provided by Investing Activities
Payments into time deposits
Net decrease (increase) in short-term investment
securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Other
Net Cash Provided by Investing Activities

ᇞ 458

ᇞ 86

ᇞ5

ᇞ 348

3

ᇞ 24

ᇞ 5,017

ᇞ 6,224

ᇞ 358

ᇞ 351

Net Cash Provided by Financing Activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

2,600―Repayment of long-term loans payableᇞ 1,336

ᇞ 1,380

ᇞ 492

ᇞ0Purchase of treasury stock
Income from sale of treasury stock
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7253261

ᇞ 692

ᇞ 810

ᇞ 30

ᇞ 48

ᇞ 57

ᇞ 2,330

286

451

2,219

1,651

5,961

8,180

8,180

9,831

[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 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, 2012 to March 31, 2013)
Amountadjusted(Note 1)

Reporting segment
Automatic
Machineries Products

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

Net sales
Sales to external customers

14,20250,82865,031―65,031―207207

ᇞ 207

―

Total

14,202

51,036

65,238

ᇞ 207

65,031

Profit for segment

1,476

4,109

5,585

ᇞ 2,341

3,244

Asset of segment

13,10046,09959,19912,542

71,742

Internal sales amount or amounttransferred among segments

Other items
Depreciation

372
2,066
2,439
180
2,619
Increase of tangible and352
2,184
2,537
173
2,710
intangible fixed assets
Note 1: Details of the amount adjusted（1） The amount of adjustment for ‘Net 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 each reportingsegment. The total company expenses mainly refers to expenses related to administration of CKD, long-term R&D expenses andcosts 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 i.e. 180 million yen mainly consists of depreciation related to head office building.
（5） The amount adjusted for increase of tangible/intangible assets, i.e. 173 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.

8Consolidated Accounting Year (April 1, 2013 to March 31, 2014)
Amountadjusted(Note 1)

Reporting segment
AutomaticMachineries Products

ComponentProducts(Unit: million yen)Amount shown in the
consolidated financialstatement(Note 2)Total

Net sales
Sales to external customers

15,11360,37775,491―75,491

―

121

121

ᇞ 121―

Total

15,11360,49975,612

ᇞ 121

75,491

Profit for segment

1,944

8,364

10,309

ᇞ 2,426

7,883

Asset of segment

12,811

58,98971,801

14,90986,711

383

1,929

2,313

172

2,485

976

4,761

5,737

62

5,800

Internal sales amount or amounttransferred among segments

Other items
Depreciation
Increase of tangible andintangible fixed assets
Note 1: Details of the amount adjusted（1） The amount of adjustment for ‘Net sales’ i.e. △121 million yen is derived from elimination of transactions among segments.
（2） The amount of adjustment for ‘Profit for segment’ i.e. △2,426 million yen includes 32 million yen for elimination oftransactions among segments and △2,458 million yen as the total company expenses that aren’t allocated to each reporting
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. 14,909 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 i.e. 172 million yen mainly consists of depreciation related to head office building.
（5） The amount adjusted for increase of tangible/intangible assets, i.e. 62 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.

9