CKD Corporation andConsolidated Subsidiaries
Consolidated Financial Statements
for the Years Ended
March 31, 2015 and 2014

［Consolidated Financial Statement, etc.］(1)［Consolidated Financial Statement］①［Consolidated Balance Sheet］(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2015)

Consolidated
Accounting Year(as of March 31, 2014)ASSETS
Current Assets:Cash and deposits

9,982

11,750Notes and accounts receivable-trade

19,54821,459Operating accounts receivable

2,751

1,938

Short-term investment securities

4,000

3,499

Merchandise and finished goods

3,691

4,363

Work-in-process

2,103

3,229

Raw materials and supplies

10,805

11,712

Deferred tax assets

1,562

1,477

Other

2,363

1,109

Allowance for doubtful debts△ 68△ 33

56,73960,507

Buildings and structures (net)

7,229

10,537

Machinery, equipment and vehicles (net)

5,717

7,505

896

1,200

4,474

4,486

75

36

Total current assets
Noncurrent assets
Property, plant and equipment

Tools, furniture and fixtures (net)Land
Lease assets (net)
Construction in progress

4,336

1,085

Total property, plant and equipment

22,72824,851749817

5,229

6,913

Net defined benefit assets

511

1,984

Deferred tax assets

155

128

Other623

845

Intangible assets
Investment and other asset
Investment securities

Allowance for doubtful debts△ 27△ 29

Total Investments and Other assets

6,492

9,842

29,97135,511

86,71196,018

Total Noncurrent assets
Total ASSETS

1

(Unit：million yen)
Consolidated
Accounting Year(as of March 31, 2015)

Consolidated
Accounting Year(as of March 31, 2014)
LIABILITIESCurrent Liabilities
Notes and accounts payable-trade

10,492

12,368

Short-term loans payable

1,546

1,151

Current portion of long-term loans payable

520

770

Lease obligations

46

32

Accrued expenses

2,541

2,767

Income taxes payable

2,544

681

Provision for bonuses

101

138

Provision for product warranties

282

218

Provision for loss on order received

218

52

Other

6,441

4,990

Total Current Liabilities

24,734

23,170

1,380

3,490

31

5

1,049

2,256

165

206

Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liabilities

136

138

Other

Asset retirement obligations

1,501

1,195

Total Noncurrent liabilities

4,264

7,292

28,99930,463

Capital stock

11,016

11,016

Capital surplus

12,737

12,737

Total LIABILITIESNet Assets
Shareholders' equity

Retained earnings

35,91340,611

Treasury stock△ 4,609△ 4,557

Total Shareholders' equity

55,05759,807

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

1,247

2,453

1,848

3,371

Remeasurements of defined benefit plans

△ 440

△ 77

Total accumulated other comprehensive income

2,654

5,747

57,71265,555

86,71196,018

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

Net sales

75,491(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2014 toMarch 31, 2015)
83,379

Cost of Sales

52,33957,939Gross Profit

23,151

25,439

6,869

7,548

Retirement benefit expenses

349

263

Packing and transportation expenses

930

982

Rent expenses

999

1,108

Business consignment expenses

635

986

Depreciation

282

427

2,709

2,927

132

134

Consolidated
Accounting Year(April 1, 2013 toMarch 31, 2014)

Selling, General and Administrative Expenses
Personal expenses

Research and development expense
Enterprise tax
Other

2,360

2,698

Total Selling, General and Administrative Expenses

15,26817,076

7,883

8,363

Interest income

20

32

Dividends income

87

92

Foreign exchange gains

56

132

Office work fee

65

108

Other273

231

Total Non-operating Income

505

596

Operating Income
Non-operating Income

Non-operating Expenses
Interest expenses

63

44

Sales discounts

127

135

Other5945

Total Non-operating Expenses

251

225

8,136

8,735
30

Ordinary Income
Extraordinary IncomeGain on sales of noncurrent assets

10Gain on revision of retirement benefit plan294―

Compensation for transfer―

392

Subsidy income―

82

Other2―306

504

Total Extraordinary Income
Extraordinary Loss
Loss on sales of noncurrent assets

1413

Loss on retirement of noncurrent assets

51

249

Loss on reduction of noncurrent assets―

41

Environmental expenses―

159

Total Extraordinary Loss

65

464

Income before Income Taxes

8,377

8,775

Income taxes-current

2,866

2,120

Income taxes-deferred

54643

Income taxes

2,921

2,764

Income before minority interests5,456

6,010

Net Income

5,456

6,010

3

［Consolidated Statement of Comprehensive Income］

5,456(Unit：million yen)
Consolidated
Accounting Year
(April 1, 2014 toMarch 31, 2015)
6,010

Consolidated
Accounting Year
(April 1, 2013 toMarch 31, 2014)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities

625

1,206

Foreign currency translation adjustment

1,811

1,523

Remeasurements of defined benefit plans

―

363

2,436

3,093

7,892

9,104

7,892

9,104－―

Total Other Comprehensive Income
Comprehensive Income(Details)
Comprehensive income attributable to owners of theparent
Comprehensive income attributable to minority
interests4

③[ Consolidated Statement of Changes in Net Assets]
Consolidated Accounting Year (April 1, 2013 to March 31, 2014)(Unit：million yen)
Shareholders' equity
Capital stock
Balance at the beginning of current period

Capital Surplus

11,016

12,737Retained earnings

Treasury Stocks

Total Shareholders'equity

31,273△ 4,832

50,194

Changes of items during the period
Dividends from surplus△ 811

Net income

5,456

Purchase of treasury stock△0Disposal of treasury stock
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

△ 811
5,456
△0△0223

223

△3△3―

△04,640

223

4,863

11,016

12,73735,913△ 4,609

55,057

Accumulated other comprehensive income

Balance at the beginning of current period

Valuation difference
Foreign currency Remeasurements
Accumulated
on available-for-saletranslationof defined benefit
othersecurities
adjustment
planscomprehensive62236―
658

Total Net Assets50,852

Changes of items during the period
Dividends from surplus△ 811

Net income

5,456

Purchase of treasury stock△0

Disposal of treasury stock
Employee encouragement and welfarefund
Net changes of items other thanshareholders'equity

223

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

△3625

1,811

△ 440

1,995625

1,811

△ 440

1,995

6,859

1,247

1,848

△ 440

2,654

57,7125

1,995

Consolidated Accounting Year (April 1, 2014 to March 31, 2015)
Shareholders' equity
Capital stock
Balance at the beginning of current period

Capital Surplus

11,016

12,737Retained earnings

Treasury Stocks

Total Shareholders'equity

35,913△ 4,609

55,057

Changes of items during the period△ 1,311

Dividends from surplus

Balance at the end of current period

6,010
△0

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△ 1,3116,010

Net income052△1△052△1―04,698

51

4,749

11,016

12,73740,611△ 4,557

59,807Accumulated other comprehensive income

Balance at the beginning of current period

Valuation difference
Foreign currency Remeasurements
Accumulated
on available-for-saletranslationof defined benefit
othersecurities
adjustment
planscomprehensive
1,247
1,848
△ 440
2,654

Total Net Assets

57,712

Changes of items during the period△ 1,311

Dividends from surplus

6,010

Net income△0

Purchase of treasury stock
Disposal of treasury stock
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

52△11,206

1,523

1,206
2,453

6363

3,093

3,093

1,523

363

3,093

7,843

3,371

△ 77

5,747

65,555

④ [Consolidated Statement of Cash Flow](Unit: million yen)
Consolidated
Accounting Year
(April 1, 2014 toMarch 31, 2015)

Consolidated
Accounting Year
(April 1, 2013 toMarch 31, 2014)
Net Cash Provided by Operating Activities
Income before income taxes

8,377

8,775

Depreciation and amortization

2,485

3,188

1324

Increase (decrease) in provision for bonuses
Increase (decrease) in accounts payable-bonuses

50464

Decrease (increase) in net defined benefit assets
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories

△ 833

△ 904

△ 2,854△ 344

66△ 2,329

Increase (decrease) in notes and accounts payable-trade

1,873

1,361

Increase (decrease) in advances received

△ 427

394

Other593△ 100

Sub-total

9,799

10,130108122Interest and dividends income received
Interest expenses paid

△ 66

△ 44

Income taxes paid

△ 595

△ 3,982

Income taxes refund

508

09,7546,226△ 1,004△ 301

101,024△ 1,000500△ 3,761△ 5,783

Purchase of intangible assets△ 86△ 261

Purchase of investment securities△ 348△5Other△ 3573

△ 6,224△ 4,755

Net cash provided by operating activities
Net Cash Provided by Investing Activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Net decrease (increase) in short-term investment
securities
Purchase of property, plant and equipment

Net Cash Provided by Investing Activities
Net Cash Provided by Financing Activities

△ 351

△ 444

Proceeds from long-term loans payable―3,000Repayment of long-term loans payable△ 1,380

△ 640

△0△0

Net increase (decrease) in short-term loans payable

Purchase of treasury stock
Proceeds from sale of treasury stock
Cash dividends paid

261

62△ 810△ 1,309

△ 48

△ 48

Net cash provided by financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents△ 2,330

618

451

368

1,651

2,458

Cash and cash equivalents at beginning of period

8,180

9,831

Cash and cash equivalents at end of period

9,831

12,290

Other7[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, 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
15,11360,37775,491―

75,491―121121△ 121―

Total

15,11360,49975,612△ 12175,491

Profit for segment

1,944

8,364

10,309△ 2,426

7,883

Asset of segment

12,811

58,98971,801

14,90986,711

Sales to external customers
Internal sales amount or amounttransferred among segments

Other items
Depreciation

383
1,929
2,313
172
2,485
Increase of tangible and
976
4,761
5,737
62
5,800
intangible 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 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. 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.

8

Consolidated Accounting Year (April 1, 2014 to March 31, 2015)
Amountadjusted(Note 1)

Reporting segment
AutomaticMachineries Products

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

Net sales
15,92067,45883,379―83,379

―

160

160

△ 160

―

Total

15,92067,61983,540△ 160

83,379Profit for segment

2,182

8,842

11,025△ 2,661

8,363

Asset of segment

15,44765,87981,327

14,69196,018

468

2,480

2,948

239

3,188

1,271

4,024

5,295

158

5,454

Sales to external customers
Internal sales amount or amounttransferred among segments

Other itemsDepreciation
Increase of tangible andintangible fixed assets
Note 1: Details of the amount adjusted（1） The amount of adjustment for ‘Net sales’ i.e. △160 million yen is derived from elimination of transactions among segments.
（2） The amount of adjustment for ‘Profit for segment’ i.e. △2,661 million yen includes 31 million yen for elimination oftransactions among segments and △2,693 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. 14,691 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. 239 million yen mainly consists of depreciation related to head office building.
（5） The amount adjusted for increase of tangible/intangible assets, i.e. 158 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