CKD Corporation andConsolidated Subsidiaries
Consolidated Financial Statements
for the Years Ended
March 31, 2020 and 2019

Table of Contents of Supplementary Materials
1. Overview of business results ................................................................................................................. 2(1) Overview of business results for the fiscal year ................................................................................. 2(2) Financial position ............................................................................................................................... 2(3) Cash flows ......................................................................................................................................... 3(4) Consolidated financial forecasts and outlook .................................................................................... 4(5) Basic policy for allocation of profit and dividends for FY2019 and FY2020 ....................................... 4
2. Basic approach to selection of accounting standards ........................................................................... 4
3. Consolidated financial statements and major notes .............................................................................. 5(1) Consolidated balance sheets ............................................................................................................. 5(2) Consolidated statements of income/Consolidated statements of comprehensive income ................. 7
Consolidated statements of income .................................................................................................. 7
Consolidated statements of comprehensive income ......................................................................... 9(3) Consolidated statement of changes in net assets ........................................................................... 10(4) Consolidated statements of cash flows ........................................................................................... 12(5) Notes to the consolidated financial statements ................................................................................ 13
Notes regarding assumptions as a going concern ............................................................................ 13
Material Items which form the basis for preparation of the consolidated financial statements .......... 13
Changes in accounting policies ........................................................................................................ 16
Changes in methods of presentation ................................................................................................ 16
Segment Information, etc. ................................................................................................................ 17
Per share information ....................................................................................................................... 22
Material subsequent events .............................................................................................................. 22
4. Others ................................................................................................................................................. 23(1) Production, orders, and sales .......................................................................................................... 23(2) Change of officers ........................................................................................................................... 23

1

1. Overview of business results(1) Overview of business results for the fiscal year
[1] Review of the fiscal year
Japan’s economic growth slowed during the consolidated fiscal year while employment and income conditions continued
to improve. Corporate earnings in the manufacturing industry remained stagnant, mainly due to declining exports to China,
and some businesses deferred their capital investment decisions.
In the global economy, the US economic expansion slowed as both the US and China raised import tariffs, leading toweaker capital investment and production activity. China’s economic growth also slowed, partly due to decreased exports
to the US, and business activity stalled with the spread of COVID-19. In Europe, decreased exports extended the stagnant
conditions in the manufacturing industry.
The CKD Group's performance in this economic climate for the consolidated fiscal year was as follows: net sales of¥100,717 million, down 12.9% year on year; operating profit of ¥5,230 million, down 3.7%; ordinary profit of ¥5,374 million,
down 0.9%; and net income attributable to owners of parent of ¥3,689 million, down 23.0%.

[2] Results of operations by segment
Automatic Machineries
Sales of automatic packing systems for pharmaceutical products fell. In industrial machinery, sales of lithium-ion battery
manufacturing systems for electric vehicles increased while sales of 3D solder paste inspection machines in China
declined.
As a result, sales in this segment declined 1.5% year on year to ¥15,792 million, while improved profitability lifted segment
income by 105.7% to ¥2,925 million.

Components
In Japan, sales declined for machine tools due to the economic slowdown in China, automobile production equipment
owing to some orders being postponed, and semiconductor manufacturing equipment.
Sales also declined overseas due to deferred semiconductor-related capital investment and slowed Chinese investment inautomation.
As a result, sales in this segment declined 14.8% year on year to ¥84,924 million, and the lower sales led to a 26.5%
decline in segment profit to ¥6,306 million.

(2) Financial position
Total assets at the end of the consolidated fiscal year were ¥136,059 million, down ¥902 million from the end of theprevious consolidated fiscal year. The main factors included decreases in inventories, income taxes receivable andproperty, plant and equipment despite increases in cash and deposits.
Liabilities were ¥53,594 million, down ¥2,922 million from the end of the previous consolidated fiscal year. This was mainly
due to a decrease in provision for bonuses and loan payable, despite an increase in accrued bonuses, accrued
consumption taxes and advances received.
Net assets were ¥82,465 million, up ¥2,020 million from the end of the previous consolidated fiscal year.
The equity-to-asset ratio was 60.5%, up a 1.8 point from the previous consolidated fiscal year.

2(3) Cash flows
Cash and cash equivalents (hereinafter, cash) at the end of the consolidated fiscal year was ¥18,409 million, which was¥6,381 million higher than that at the end of the previous consolidated fiscal year.
Changes in cash flows by categories through the end of the consolidated fiscal year were as follows.
Cash flows from operating activities
Through the end of the consolidated fiscal year under review, net cash provided by operating activities was ¥17,250 million(compared with ¥2,254 million used in operating activities in the previous fiscal year).
Factors contributing positively to cash flows from operating activities were profit before income taxes of ¥5,235 million,
depreciation of ¥5,822 million, an increase in accounts payable - bonuses of ¥1,990 million, a decrease in inventories of¥3,451 million, an increase in advances received of ¥1,232 million, and income taxes refund of ¥1,099 million. These cash
flows were offset by a decrease in provision for bonuses of ¥1,868 million, an increase in trade receivables of ¥1,429
million.
Cash flows from investing activities
Through the end of the consolidated fiscal year under review, net cash used in investing activities was ¥4,555 million(down 69.4% YOY).
The main factor accounting for the cash flows was purchase of property, plant and equipment of ¥3,583 million.
Cash flows from financing activities
Through the end of the consolidated fiscal year under review, net cash used in financing activities was ¥6,022 million.
(Compared with ¥14,374 million provided in the previous consolidated fiscal year.)
The main factors accounting for the cash flows were net decrease in short-term borrowings of ¥2,063 million andrepayments of long-term borrowings of ¥3,581 million.
Reference: Changes in cash flow-related indexes

Equity-to-asset ratio (%) = total equity capital ÷ total assets
Equity-to-asset ratio based on current market price (%) = total market value of common stock ÷ total assets
Ratio of interest-bearing debt to cash flow (times) = interest-bearing debt ÷ cash flow
Interest coverage ratio (times) = cash flows ÷ interest payments
Notes: 1. All indicators are calculated based on consolidated financial figures.
2. Total market value of common stock is calculated based on the number of shares outstanding, excluding
treasury stock.
3. Cash flows from operating activities are used for figures for cash flow.
4. Interest-bearing debt includes all balance-sheet debt for which interest payments are being made. For interest
payment, interest paid from consolidated financial statements of cash flows are used.

3

(4) Consolidated financial forecasts and outlook
Regarding the CKD group’s business environment, the economic environment is uncertain because of spread of COVID19. Due to the difficulty foreseeing the full-year business result in the present circumstance, the company will issue theconsolidated financial forecast only for the first quarter of the fiscal year ending on March 31, 2021.
Below are the consolidated projections for the first quarter of the consolidated fiscal year.
These are based on an exchange rate of ¥105 to the U.S. dollar.

These projections are based on information available as of this release. The actual results may differ due to various
factors.

(5) Basic policy for allocation of profit and dividends for FY2019 and FY2020
Regarding to the return of profit to shareholders, while the company try to increase corporate value through capital
investment and R&D investment that strengthen the management base and further expand business, in the return of profit
to shareholders the company have a dividend payout ratio of 30% as a rough target.
Under this policy, it was decided at Board of Directors of CKD Corporation on May 14, 2020 that year-end dividends of ¥13
per share would be paid on June 4, 2020. Combined with the ¥5 per share paid as interim dividends in December 2019,the annual dividends for the fiscal year will amount to ¥18 per share, down ¥10 from the end of the previous consolidated
fiscal year.
Dividends for the next fiscal year are undecided.

2. Basic approach to selection of accounting standards
To enable comparison between companies and years, the CKD Group creates its consolidated financial statements
according to “the Rules for Terminology, Forms, and Preparation of Consolidated Financial Statements (Ordinance of the
Ministry of Finance No. 28 in 1976)” (excluding Chapter 7 and 8).
When applying international accounting standards, domestic and overseas information is considered and applied as
appropriate.

43. Consolidated financial statements and major notes(1) Consolidated balance sheets56

(2) Consolidated statements of income/Consolidated statements of comprehensive income
Consolidated statements of income

78Consolidated statements of comprehensive income9(3) Consolidated statement of changes in net assets
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)10

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)11

(4) Consolidated statements of cash flows

12(5) Notes to the consolidated financial statements
Notes regarding assumptions as a going concern
Not applicable
Material Items which form the basis for preparation of the consolidated financial statements
1. Scope of consolidation
Consolidated subsidiaries: 20 companies
The names of companies:(4 Japanese companies)CKD Shikoku Seiko CorporationCKD Global Service CorporationCKD Field Engineering CorporationCKD NIKKI DENSO CO., LTD.
(16 overseas companies)CKD THAI CORPORATION LTD.
CKD SINGAPORE PTE. LTD.
CKD USA CORPORATIONCKD Korea Corporation
M-CKD PRECISION SDN. BHD.
CKD (China) Corporation
CKD (Shanghai) Corporation
Taiwan CKD CorporationCKD VIETNAM ENGINEERING CO., LTD.
PT CKD TRADING INDONESIAPT CKD MANUFACTURING INDONESIACKD ILLINOIS LLC
CKD MEXICO, S. de R.L. de C.V.
CKD India Private Limited
CKD Europe B.V.
Nikki Denso International Korea Co., Ltd.
2. Application of equity method
Non-consolidated subsidiaries accounted for by the equity method: 1 company
Name of the company: EPSITEC S.R.L.
3. Fiscal year of consolidated subsidiaries
Out of our consolidated subsidiaries, the fiscal year-ends on December 31 for CKD (China) Corporation, CKD(Shanghai) Corporation, and CKD MEXICO S. de R.L. de C.V., and we provisionally close their accounts on the
consolidated closing date (March 31).

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4. Accounting policies(1). Basis and method of evaluation of significant assets[1] Marketable Securities
Available-for-sale securities
With market value: At fair market value as of the account closing date (changes in fair value are accounted forunder the direct addition to the net assets method, and the moving average method is used
to calculate the sale value.)
Without market value: At cost, as determined by the moving average method[2] Derivatives
At fair value[3] Inventories
a. Merchandise Automatic machineries
Recorded at cost using the individual method (values on the balance
and finishedsheet are subject to the book value reduction method based on
goods
decreased profitability)
Components
Mainly recorded at cost using the periodic average method (values onmerchandise andthe balance sheet are subject to the book value reduction method
finished goods
based on decreased profitability)b. Work-inAutomatic machineries
Recorded at cost using the individual method (values on the balance
process
work-in-progress
sheet are subject to the book value reduction method based on
decreased profitability)
Components
Mainly recorded at cost using the periodic average method (values on
work-in-progress
the balance sheet are subject to the book value reduction method
based on decreased profitability)c. Raw materials Raw materials
Mainly recorded at cost using the periodic average method (values onand supplies
the balance sheet are subject to the book value reduction method
based on decreased profitability)
Supplies
Mainly recorded at cost using the last purchase price method (values
on the balance sheet are subject to the book value reduction method
based on decreased profitability)(2) Depreciation methods for material depreciable assets[1] Property, plant and equipment (excluding lease assets)
Mainly calculated by the declining-balance method.
Useful lives of property, plant and equipment are as follows:
Buildings and structures: 3-50 years
Machinery, equipment and vehicles: 3-17 years[2] Intangible assets (excluding lease assets)
Calculated by the straight-line method.
Capitalized software for internal use is amortized by the straight-line method over the estimated internal useful life
(5 years).
[3] Lease assets
The method employed is to take the useful life of the asset as the term of the lease and depreciate the residual
value to zero.
(3) Accounting for reserves and allowances[1] Allowance for doubtful accounts
To prepare for the possible losses on doubtful accounts, provisions for normal accounts in good standing arecalculated using historical default ratios. Provisions for specific doubtful accounts are calculated by examining theprobability of recovery for individual accounts and setting aside an amount equivalent to the portion deemed to be
unrecoverable.

14[2] Provision for bonuses
To cover bonus payments to employees, a provision for bonuses is made based on an estimated amount of
payment for the year under review.
[3] Provision for product warranties
To prepare for claims regarding products delivered to customers, a provision for a reasonably projectable amount ofexpenses to be incurred in the future is made.
[4] Provision for losses on order received
To prepare for losses related to future order contracts, a provision for the estimated losses at the end of the current
consolidated fiscal year is made.
[5] Provision for environmental Measures
To prepare for expenses related to the management of waste and removal of harmful substances obligated underlaws and regulations, a provision for a reasonably projectable amount of expenses is made.
(4) Accounting treatment of retirement benefits[1] Method of attributing expected benefit to periods
In calculating retirement benefit obligations, expected benefits are attributed to periods on a payment calculationbasis.
[2] Accounting method of actuarial gains and losses and prior service costs
Prior service costs are amortized on a straight-line basis over a certain period (12 years) within the averageremaining service years for employees at the time of recognition.
Actuarial gains and losses are amortized on a straight-line basis over a certain period (12 years) within the averageremaining service years for employees at the time of recognition and allocated proportionately from the fiscal year
following the respective fiscal year of recognition.
[3] Adoption of simplified method for small-scale companies
The simplified method payment, which assumes benefit obligations to be equal to the benefits payable assuming
the voluntary retirement of all employees at fiscal year-end, is applied to some consolidated subsidiaries in thecalculation of liabilities regarding the payment of retirement benefits and retirement benefit expenses.
(5) Accounting method of material revenues and expenses
The percentage-of-completion method is applied to construction projects recognized to hold certainty of outcomes forthe portion completed by the end of the consolidated fiscal year under review, while the completed-contract method isapplied to the remaining construction projects. Moreover, the cost-to-cost method is applied for the percentage ofcompletion estimate at the end of the consolidated fiscal year under review for construction projects that use thepercentage-of-completion method.
(6) Foreign currency translation of material assets and liabilities
Monetary assets and liabilities denominated in foreign currencies are translated at the current exchange rates in effectat each fiscal year-end date and the resulting foreign exchange gains or losses are recognized as income or
expenses.
Assets and liabilities of the foreign consolidated subsidiaries are translated at the current exchange rates in effect ateach fiscal year-end date, and revenue and expense accounts are translated at the average rate of exchange in effectduring the year. The amounts of translation adjustments are included in the foreign currency translation adjustments
under net assets.
(7) Scope of cash equivalents in consolidated statements of cash flows
Currency on hand, bank deposits, and all highly liquid short-term investments with a maturity of three months or lesswhen purchased and which are readily convertible into cash and are exposed to insignificant risk of changes in value
are considered cash equivalents.
(8) Other material items for preparing the consolidated financial statements
Accounting for Consumption Tax
The accounting treatment of the consumption tax and the local consumption tax is based on the tax exclusion method.

15

Changes in accounting policies
Effective as from the first quarter of the consolidated fiscal year under review, the International Financial ReportingStandard 16 Lease (“IFRS 16”) has been applied to the subsidiaries which apply the International Financial ReportingStandard. With this change, a lessee, in principle, reports all the leases as the Assets and the Liabilities, and transfers
certain assets reported in the “Intangible assets” to the “Property, plant and equipment”. To apply IFRS 16, the Company
observes transition practices, and the cumulative changes affected by this change are reported in the “Retained earnings”
at the beginning of the first quarter of the consolidated fiscal year under review.
As a result, the “Leased assets” account under the “Property, plant and equipment” was increased by ¥463 million, andthe “Lease obligations” account under the “Current liabilities” was increased by ¥169 million, and the “Lease obligations”
account under the “Noncurrent liabilities” was increased by ¥170 million respectively, and the “Intangible assets” wasdecreased by ¥129 million at the end of consolidated fiscal year. Effects of these changes to the “Consolidated statementof income” and “Per share information” are insignificant.
Net assets at the beginning of the consolidated fiscal year reflected cumulative effects. Therefore, the beginning balanceof retained earnings were decreased by ¥5 million in the consolidated statement of changes in net assets
As a result, the consolidated statement of cash flows for the consolidated fiscal year reported a ¥ 225 million increase in
cash flows from operating activities and a decrease of the same amount in cash flows from financing activities.
Changes in the methods of presentation
In the previous consolidated fiscal year, “Insurance claim income” and “Subsidy income” were included in “Other” under“Non-operating income.” However, because they exceeded 10% of total non-operating income, they are presented as
individual line items in the report for the current consolidated fiscal year. Line items in the consolidated financial
statements for the previous consolidated fiscal year have been revised to reflect this change in the methods ofpresentation.
As a result, in the consolidated statements of income for the previous consolidated fiscal year, the ¥399 million that wasreported for “Other” under “Non-operating income” has been revised to “Insurance claim income” of ¥20 million, “Subsidy
income” of ¥60 million, and “Other” of ¥318 million.

16

Segment information, etc.
(Segment information)
1. Outline of reporting segments
The reporting segments of the CKD Group refers to the constituents of CKD and its subsidiaries that separate financial
statements are available and that are the scope of regular discussion by the Board of Directors of CKD to determine
how corporate resources are to be allocated and to evaluate business performance.
The constituents of the CKD Group consist of product segments, which include two reporting segments of ‘Automatic
Machineries’ and ‘Components’ separated based on the type, properties, and sales method of products.
In Automatic Machineries, automatic packing system, lithium-ion battery manufacturing system, and other large-scale
facilities are manufactured and sold. They are produced upon receiving an order.
In Components, functional parts that can be applied to semiconductor-related businesses, automobile-related industries,
and other markets of diversified kinds are manufactured and sold. They are produced by forecasting demands of eachitem.
2. Calculation methods of net sales, profit/loss, assets, liabilities and other accounting items for each reporting segment
The accounting methods used for financial statements of respective reporting segments are basically the same as thosestated in “Important matters fundamental to the preparation of consolidated financial statements.”
The income in each reporting segment are based on operating profit. Internal gains and amount of transfer among
segments are based on current market prices.

17

3. Information on reporting-segment-wise sales, profit/loss, assets, liabilities, and other accounting items
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Million yen)

Note 1: Details of the amount adjusted(1) The amount of adjustment for ‘Net sales’ of ¥(85) million is derived from elimination of transactions among
segments.
(2) The amount of adjustment for ‘Segment profit’ of ¥(4,575) million includes ¥32 million for elimination oftransactions among segments and ¥(4,608) million as the total company expenses that are not allocated toeach reporting segment. The total company expenses mainly refers to expenses related to administration andlong-term R&D expenses of CKD and costs related to CKD Global Service Corporation.
(3) The amount of adjustment for ‘Segment assets’ of ¥11,968 million is the total company assets not allocatedto each reporting segment. This mainly consists of working surplus funds (cash and deposits) and long-term
investment funds (investment securities) and assets of management department.
(4) The amount adjusted for depreciation of ¥276 million consists of depreciation related to assets for the entire
company.
(5) The amount adjusted for increase in property, plant and equipment and intangible assets of ¥362 million
consists of the amount of property, plant and equipment and intangible assets for the entire company.
Note 2: ‘Segment profit’ has already been adjusted with operating profit shown in the consolidated statement of income.
‘Segment assets’ has already been adjusted with total assets shown in the consolidated balance sheets.

18

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Million yen)
Reporting segment
Automatic

Components

Machineries

Total

AmountAdjusted

Consolidated(Note 1)

(Note 2)

Net sales
Sales to external customers

15,792

84,924

100,717―

100,717

―

140

140

(140)

―

Total

15,79285,065

100,857(140)

100,717

Segment profit

2,925

6,306

9,231

(4,001)5,230

Segment assets

22,381

98,685

121,067

14,991

136,059

694

4,846

5,540

281

5,822

306

2,517

2,824

236

3,060

Intersegment sales ortransfers

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets

Note 1: Details of the amount adjusted(1) The amount of adjustment for ‘Net sales’ of ¥(140) million is derived from elimination of transactions among
segments.
(2) The amount of adjustment for ‘Segment profit’ of ¥(4,001) million includes ¥31 million for elimination oftransactions among segments and ¥(4,032) million as the total company expenses that are not allocated toeach reporting segment. The total company expenses mainly refers to expenses related to administration andlong-term R&D expenses of CKD and costs related to CKD Global Service Corporation.
(3) The amount of adjustment for ‘Segment assets’ of ¥14,991 million is the total company assets not allocatedto each reporting segment. This mainly consists of working surplus funds (cash and deposits) , long-term
investment funds (investment securities) and assets of management department.
(4) The amount adjusted for depreciation of ¥281 million consists of depreciation related to assets for the entire
company.
(5) The amount adjusted for increase in property, plant and equipment and intangible assets of ¥236million
consists of the amount of property, plant and equipment and intangible assets for the entire company.
Note 2: ‘Segment profit’ has already been adjusted with operating profit shown in the consolidated statement of income.
‘Segment assets’ has already been adjusted with total assets shown in the consolidated balance sheets.

19

(Related information)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
1. Information regarding products and services
Disclosure is omitted as the same information is disclosed in segment information.
2. Information regarding each region[1] Net sales

Note: 1. Net sales are classified by country or region based on the customer’s location.
2. The amount under “Rest of Asia” is net sales in Asia excluding both Japan and China.
[2] Property, plant and equipment

3. Information by principal customer
Of the net sales to outside customers, there are no customers accounting for 10% or more of total net sales under the
consolidated statements of income.
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
1. Information regarding products and services
Disclosure is omitted as the same information is disclosed in segment information.
2. Information regarding each region[1] Net sales

Note: 1. Net sales are classified by country or region based on the customer’s location.
2. The amount under “Rest of Asia” is net sales in Asia excluding both Japan and China.
[2] Property, plant and equipment

3. Information by principal customer
Of the net sales to outside customers, there are no customers accounting for 10% or more of net sales under the
consolidated statements of income.

20

(Information on impairment losses on non-current assets by reporting segment)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
Not applicable
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Information related to the amount of amortization of goodwill and the unamortized amount of goodwill by reporting
segment)
Not applicable(Information on gain on bargain purchase by reporting segment)
Not applicable

21Per share information

Note 1. Diluted earnings per share for the previous fiscal year is not stated because there were no potential shares.
2. Basis for calculations of net income per share and diluted earnings per share.

Material subsequent events
Not applicable224. Others(1)Production, orders, and net sales[1] Actual production
Actual production by reporting segment in the fiscal year under review are as follows.

Notes: 1. Intersegment transactions have been offset and eliminated.
2. Amounts are based on sales prices.
3. Above figures are exclusive of consumption tax.
[2] Actual orders
Actual orders by reporting segment in the fiscal year under review are as follows.

Notes: 1. Production is carried out by expected demand, excluding the Automatic machineries segment.
2. Above figures are exclusive of consumption tax.
[3] Actual net sales
Actual net sales by reporting segment in the fiscal year under review are as follows.

Notes: 1. Intersegment transactions have been offset and eliminated.
2. Above figures are exclusive of consumption tax.

(2) Change of officers
For changes in officers, please refer to the attachment from the next page onwards.

23

Changes of Officers (As of June 19, 2020)(1) Executive Officers whose duties have changedName

New role(s)Current role(s)Executive Director and Senior
Managing Executive Officer ofProfit and Budget, concurrently
serving as General Manager of
Katsuhito Okuoka

Corporate Planning Department,
General Manager of Security
Export Control Office, General
Manager of Internal Control Audit

Executive Director and Senior
Managing Executive Officer of
Quality and Environment,
concurrently serving as General
Manager of Components Business
Division

OfficeDirector and Executive Officer of
Katsunori Hayashida

Quality and Environment,

Director and Executive Officer,

concurrently serving as General

General Manager of AutomaticManager of Components Business

Machinery Business Division

Division(2) Prospective new Auditors
Name

New role(s)Current role(s)Director and Senior Executive
Officer of Profit and Budget,
concurrently serving as General

Masafumi Kokubo

Standing Auditor

Manager of Corporate Planning
Department, General Manager ofSecurity Export Control Office,General Manager of Internal
Control Audit Office

Shuzo Hashimoto

Auditor (Outside auditor)

(3) Prospective new Executive Officers
Name

New role(s)Current role(s)Executive Officer
General Manager of Automatic
Yoshiaki Kitahora

Machinery Business Division,
concurrently serving as General
Manager of Business Strategy

General Manager of Business
Strategy Office, Automatic
Machinery Business Division

OfficeExecutive Officer
Yoshiyuki Amamo

General Manager of Information
Resource Management
Department

General Manager of Information
Resource Management
Department(4) Auditors planning to step down
Name
Shigeru Ohmori

New role(s)AdvisorCurrent role(s)Standing Auditor

Naotaka Nanya

Auditor (Outside auditor)(5) Executive Officers planning to step down
Name

New role(s)Current role(s)Executive Officer

Noriaki Ichimura

Special Advisor

Deputy General Manager of Sales

Sales Promotion Officer of Sales

and Marketing Division,and Marketing Division

concurrently serving as General
Manager of East Japan BranchSpecial Advisor
Toru Iwata

Production Promotion Officer of
Administration Department,
Components Business Division

Executive Officer
General Manager of Operational
Reform Promotion CenterRoles and Brief Resume of New Auditors
New role

Standing Auditor

Name

Masafumi Kokubo

Date of birth

March 9, 1961 (age 59)

Place of birth

Mie Prefecture

Current location

Komaki City, Aichi Prefecture

Most recent education
March 1983

Graduated from Department of Agricultural Machinery, Faculty ofAgriculture, Mie University

Brief resume
April 1983

Entered CKD Corporation

October 2005

General Manager of Sales Planning Department, Sales and Marketing
Division

October 2008

Director and President, Taiwan CKD Corporation

September 2012

General Manager of Corporate Planning Department, CKD

June 2015

Executive Officer and General Manager of Corporate Planning Department

June 2018

Director and Executive Officer of Profit and Budget,
General Manager of Corporate Planning Department, General Manager ofSecurity Export Control Office, General Manager of Internal Control Audit
OfficeJune 2019

Director and Senior Executive Officer of Profit and Budget,
General Manager of Corporate Planning Department, General Manager ofSecurity Export Control Office, General Manager of Internal Control Audit
Office (current role)

June 2020

Date of appointment

To be appointed as Standing Auditor, CKD

June 19, 2020

Roles and Brief Resume of New Auditors
New role

Auditor (Outside auditor)

Name

Shuzo Hashimoto

Date of birth

April 5, 1956 (age 64)

Place of birth

Aichi Prefecture

Current location

Nagoya City, Aichi Prefecture

Most recent education
March 1980

Graduated from Department of Economics, School of Political Science andEconomics, Waseda University

Brief resume
April 1987

Registered as attorney at law (current role)
Entered Oguri Law Office

April 1992

Established Hashimoto Law Firm, Director (current role)

April 2004

Vice Chairman of Nagoya Bar Association (currently Aichi Bar Association)

June 2020

To be appointed as Auditor, CKD

Date of appointment

June 19, 2020