ファイル名:E_有価証券報告 (ホームページ用).doc

更新日時:9/7/2012 1:48:00 PM

Securities Reportst

From: April 1, 2010

(The 91 Term)
To: March 31, 2011

CKD Corporation
250, Ouji 2-chome, Komaki City, Aichi, 485-8551, Japan(E01909)

印刷日時:12/09/10 14:45

1 [Consolidated Financial Statement, etc.](1) [Consolidated Financial Statement]i) [Consolidated Balance Sheet](Unit: million yen)
Current Consolidated
Accounting Year(as of March 31, 2011)

Previous Consolidated
Accounting Year(as of March 31, 2010)ASSETS
Current Assets:
Cash and cash equivalents

5,682

7,849

Notes and accounts receivable

17,47919,290Accounts receivable

1,280

3,150

Products and goods*1 2,828*1 3,586

Work-in-process*1 1,542

2,447

Raw materials and inventory goods

8,543

10,566

Deferred tax assets

1,123

1,302

612

691

OthersU48

U83

39,044

48,801

Buildings and structures (net)

9,033

8,308

Machines and delivery equipment (net)

4,522

4,746

726

645

4,638

4,616

202

133

Allowance for doubtful debts
Total for current assets
Fixed Assets:
Tangible fixed assets

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

111

182

Total for tangible assets*3 19,235*3 18,633

333

262

*2 3,624*2 3,833

60

122Intangible fixed assets
Investment and other assets
Investment securities
Deferred tax assets
Others625

568

Allowance for doubtful debts

U55

U50

Total for Investment and Other Assets

4,255

4,474

23,82423,37062,86972,171

Total for fixed assets
Total for ASSETS-2-

(Unit: million yen)
Current Consolidated
Accounting Year(as of March 31, 2011)

Previous Consolidated
Accounting Year(as of March 31, 2010)
LIABILITIESCurrent Liabilities
Notes and accounts payable – trade

9,618

11,030

Short-term borrowings

3,312

2,851

Long-term borrowings to be repaid within 1 year

700

700

Lease liabilities

96

72

Accrued expenses

1,778

2,309

Accrued corporate taxes, etc.

509

2,666

Allowance for bonus

42

49

Allowance for compensation of goods

5

4

*1 50

*1 32

Allowance for loss due to receiving orders-

10

Others

1,599

3,213

Total for Current Liabilities

17,712

22,939

2,000

2,299

Lease liabilities

101

63

Deferred tax liabilities

67

252

Allowance for retirement benefit

607

195

-

129

899

955

3,676

3,896

21,38826,836

Capital11,016

11,016

Capital surplus

12,61012,735

Accumulated earnings

22,655

26,672

Treasury stocks

U4,938

U5,040Total for Owner’s Equity

41,34345,383

472

579

U334

U627

137

U48

41,48045,33562,86972,171Other allowances

Fixed Liabilities
Long-term borrowings

Asset retirement obligation
OthersTotal for Fixed Liabilities
Total for LIABILITIESNet Assets
Owner’s equity

Other Accumulated Total Earnings
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment accountTotal for other accumulated total earnings
Total for Net Assets
Total Liabilities and Net Assets-3-ii) [Consolidated Profit/Loss Statement and Consolidated Total Profit Statement][Consolidated Profit/Loss Statement](Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009 to
March 31, 2010)
50,03572,020*1, *2 38,614*1, *2 51,363

11,421

20,657

Labor expenses

5,025

5,870

Retirement benefit

427

391

Freightage and packing expenses

790

984

Rent

909

854

Outsourcing expense

313

500

Depreciation expense

268

247

*3 1,731*3 2,245

100

133

SALES
Cost of Sales
Gross Sales Profit
Selling, General and Administrative Expenses

Research and development expense
Enterprise tax

41

41

Others

1,478

1,883

Total for Selling, General and Administrative
Expenses

11,087

13,154333

7,502

Allowance for doubtful debts

Operating Profit
Non-operating Income
Interest income

1215

Dividends income

65

67

Cash purchase discount26

46

Foreign exchange gain

104-

Commission income-

58

Subsidies income

170

3

Others283

172

Total for Non-operating Income

662

364

Interest paid

108

75

Discounts

Non-operating expenses
102

102

Foreign currency gain and loss-

107

Others73

53

Total for Non-operating expenses

285

338

711

7,528

Ordinary Profit
Special Profit

*4 63

-

Gain on sales of fixed assets

*5 8

*4 11

Reversal of reserve for bonuses

290

-

-

8

Gain from the prior-term adjustments

Subsidy income
Others180Total for Special Profit

380

20

-4-

(Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009
to March 31, 2010)
Special Loss
*6 51

Loss from the prior-term adjustments

-

*7 2

*5 6

*8 34

*6 47

-

*7 82

157

-

Amount from application of Accounting Standard for
Asset Retirement Obligations-

78

Others22

28

Total for Special Loss

267

244

824

7,304

Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss due to impairment
Loss on devaluation of marketable securities

Net Income before Income Taxes
Corporate Tax, Resident Tax and Business Tax
Adjustment for Corporate Taxes, etc.
Total for Corporate Taxes, etc.
Income before Minority Interests
Net Profit for the Current Term

-5-

479

2,868

U1,149

U142

U670

2,726

-

4,577

1,494

4,577

[Consolidated Statement of Comprehensive Income](Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009 to
March 31, 2010)
-

4,577

Valuation difference on available-for-sale securities-

107

Foreign currency translation adjustment account

-

U292

Total for Other Comprehensive Income-*2 U185-*1 4,392

Comprehensive income related to shareholders of theparent company

-

4,392

Comprehensive income related to minority interest--

Income before Minority Interests
Other Comprehensive Income

Comprehensive Income(Details)-6-iii) [Consolidated Statement of Changes in Net Assets](Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009 to
March 31, 2010)
Owners’ Equity
CapitalBalance brought forward from the previous term

11,016

11,016--

11,016

11,016

12,612

12,610U2-

Changes for the current term
Total for changes for the current term
Balance carried forward
Capital Surplus
Balance brought forward from the previous term
Changes for the current term
Issuance of new shares

-

124

U2

124

12,61012,73521,65722,655

Dividends

U497

U559

Net profit for the current term

1,494

4,577

-

U1

997

4,017

22,655

26,672

U4,938

U4,938Acquisition of treasury stocks

U0

U1,000

Disposal of treasury stocks

-

898

△0

U101

U4,938

U5,04040,34841,343

U2-

Dividends

U497

U559

Net profit for the current term

1,494

4,577

Acquisition of treasury stocks

U0

U1,000

Disposal of treasury stocks

-

1,023

Employee Encouragement and Welfare Fund,
etc.

-

U1

994

4,040

41,34345,383

Disposal of treasury stocks
Total for changes for the current term
Balance carried forward
Earned Surplus
Balance brought forward from the previous term
Changes for the current term

Employee Encouragement and Welfare Fund,etc.
Total for changes for the current term
Balance carried forward
Treasury Stocks
Balance brought forward from the previous term
Changes for the current term

Total for changes for the current term
Balance carried forward
Total for Owners’ Equity
Balance brought forward from the previous term
Changes for the current term
Issuance of new shares

Total for changes for the current term
Balance carried forward-7-

(Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009 to
March 31, 2010)
Other Accumulated Comprehensive Earnings
Other valuation difference on available-for-salesecurities
U359

472

Changes for the current term for items otherthan owners’ equity (Net)

831

107

Total for changes for the current term

831

107

472

579

U394

U334

Changes for the current term for items otherthan owners’ equity (Net)

59

U292

Total for changes for the current term

59

U292

U334

U627

U753

137

Changes for the current term for items otherthan owners’ equity (Net)

890

U185

Total for changes for the current term

890

U185

137

U48

39,594

41,480

U2-

Dividend

U497

U559

Net profit for the current term

1,494

4,577

Acquisition of treasury stocks

U0

U1,000

Disposal of treasury stocks

-

1,023

Employee Encouragement and Welfare Fund, etc.

-

U1

Changes for the current term for items other thanowners’ equity (Net)

890

U185

1,885

3,854

41,48045,335

Balance brought forward from the previous term
Changes for the current term

Balance carried forward
Foreign Currency Translation Adjustment
Balance brought forward from the previous term
Changes for the current term

Balance carried forward
Other Accumulated Comprehensive Earnings
Balance brought forward from the previous term
Changes for the current term

Balance carried forward
Total for Net Assets
Balance brought forward from the previous term
Changes for the current term
Issuance of new shares

Total for changes for the current term
Balance carried forward-8-iv) [Consolidated Cash Flow Statement](Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009 to
March 31, 2010)
Net Cash Provided by Operating Activities
824

7,304

2,918

2,639

-

82

Increase/decrease in allowance for doubtful debt
(U refers to a decrease.)

U5

32

Increase/decrease in allowance for retirement benefit(U refers to a decrease.)

779

U410

U1,338

9

Increase/decrease in reserves for accrued bonus(U refers to a decrease.)

1,256

315

Interest and dividends earned

△78

U83

Interest paid

108

75

Valuation difference on available-for-sale securities(U refers to a profit.)

157-

Profit/loss due to sale of fixed assets(U refers to a profit.)

U6

U4

Loss from retirement of fixed assets

34

47

Amount from application of Accounting Standard for
Asset Retirement Obligations-

78

Increase/decrease of trade receivables(U refers to an increase.)

U2,627

U3,860

Increase/decrease of inventory assets(U refers to an increase.)

1,340

U3,761

Increase/decrease of trade payables(U refers to a decrease.)

2,732

1,603

Increase/decrease of advance payment(U refers to a decrease.)

U133

109

Increase/decrease of accrued consumption tax, etc.
(Urefers to a decrease.)

88

U72

Others537

652

Sub-total

6,589

4,760

78

83

Net profit before adjustment of taxes, etc.
Depreciation expense
Loss due to impairment

Increase/decrease in allowance for bonus(U refers to a decrease.)

Interest/dividends received
Interest paid

U112

U77

Corporate tax, etc. paid

U119

U720

Corporate tax, etc. returned

1,340

2

Net cash provided by operating activities

7,775

4,048

U869

U944

39

21

Amount paid for acquisition of intangible fixed assets

U48

U57

Amount paid for acquisition of marketable securities

U5

U25

Others52△42

Net Cash Provided by Investing Activities
Amount paid for acquisition of tangible fixed assets
Income from sale of tangible fixed assets-9-

(Unit: million yen)
Current Consolidated
Accounting Year
(From April 1, 2010 toMarch 31, 2011)

Previous Consolidated
Accounting Year
(From April 1, 2009 to
March 31, 2010)
Net Cash Provided by Investing Activities

U831

U1,048

U4,231U435

Net Cash Provided by Financial Activities
Net increase/decrease of short-term borrowings (Urefers to a decrease.)-

999

Long-term borrowings repaid

U705

U700

Amount of corporate bonds redeemed

U360

-

Amount of treasury stocks acquired

U0

U0

Income from long-term borrowings-

25

Amount of dividends paid

U499

U558

Others

U42

U96

U5,838

U766

Valuation of difference in translation of cash and cash
equivalent

U17

U86

Increase/decrease of cash and cash equivalent (U refers
to a decrease.)

1,123

2,147

Balance of cash and cash equivalent brought forwardfrom the previous term

4,458

5,581

Balance of cash and cash equivalent carried forward*1 5,581*1 7,728

Income from sale of treasury stocks

Net cash provided by financial activities- 10 -

[Important Matters as the basis of Creating Consolidated Financial Statement]
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)

1. Matters related to the Scope of Consolidation
1. Matters related to the Scope of Consolidation(1) Number of consolidated companies: 11(1) Number of consolidated companies: 11
Name of consolidated companies
Name of consolidated companies(3 domestic subsidiaries)(3 domestic subsidiaries)
Shikoku Seiko K.K.
Shikoku Seiko K.K.
Fukushima Honing Kogyo K.K.
Fukushima Honing Kogyo K.K.
CKD Global Service K.K.
CKD Global Service LTD/
(8 overseas subsidiaries)(8 overseas subsidiaries)
CKD THAI CORPORATION LTD.
CKD THAI CORPORATION LTD.
CKD SINGAPORE PTE.LTD.
CKD SINGAPORE PTE.LTD.
CKD USA CORPORATIONCKD USA CORPORATIONM-CKD PRECISION SDN.BHD.
M-CKD PRECISION SDN.BHD.
CKD (China) Corporation
CKD (China) Corporation
CKD (SHANGHAI) CORPORATIONCKD (SHANGHAI) CORPORATIONCKD KOREA CORPORATIONCKD KOREA CORPORATION
Taiwan CKD Corporation
Taiwan CKD Corporation------------------------(Reason for Exclusion from Consolidated Companies)
Three Tech K.K, a consolidated subsidiary in theprevious consolidated accounting year, was dissolved asof January 2010 and the company is excluded from
CKD’s consolidated subsidiaries.
However, their business activities made up to the date ofdissolution are included in the consolidated financial
statement.
(2) Non-Consolidated Subsidiaries(2) Non-Consolidated Subsidiaries
CKD EUROPE B.V.
Same as left
CKD SALES THAI CORPORATION LTD.
(Reason for Exclusion from Consolidated Companies)(Reason for Exclusion from Consolidated Companies)
Gross assets, sales, net profit/loss for the current term andSame as left
accumulated earnings of each of the above two companies
are all small in amount and even their total sum doesn’t
impact significantly on the overall consolidated financial
statement. This is the reason why these two companies are
excluded from the scope of consolidation.
2. Matters Relating to Application of Equity Method Same as
2. Matters Relating to Application of Equity Method
left
Investment made to the following two non-consolidated
companies and one affiliated company has quite a small
impact on CKD’s gross profit/loss for the current term,
accumulated earnings and other accounting items and hence
they are not significant. So they are valuated using a cost
approach rather than equity method.
Companies which equity method isn’t applied:(Non-consolidated subsidiaries)
CKD EUROPE B.V.
CKD SALES THAI CORPORATION LTD.
(Affiliated company)
Pubot Giken K.K.

- 11 -

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)

3. Matters related to Business Year of Consolidated
3. Matters related to Business Year of Consolidated
Subsidiaries
Subsidiaries(1)
Same as left
(1) Date of closing account of consolidated subsidiaries is
the same as that of the parent company, excluding that ofoverseas subsidiaries, which ends on December 31 every
year.
(2)
Same as left
(2) The consolidated financial statement was formed using
financial statements made by respective consolidated
subsidiary. Important transactions, if any, made from thedate of closing account of the subsidiaries and the date of
consolidated account closing, were subject to necessary
adjustment.
4. Matters relating to the Accounting Standard
4. Matters relating to the Accounting Standard(1) Criteria and Method of Valuating Important Assets(1) Criteria and Method of Valuating Important Assetsi) Marketable Securitiesi) Marketable Securities
Other securities
Other securities
Marketable securities available for sale:Marketable securities available for sale:…Market value method based on the market value
Same as left
as of the account closing date (The unrealized
gains/losses on the marketable securities arerecognized directly within "members’ equity" andthe cost of securities sold is pursuant to themoving average method.)
Non-marketable securities available for sale:Non-marketable securities available for sale:…Moving average method
Same as leftii) Inventory Assets
a. Products and Goods
Automatic Machinery Products:…Cost method based on the actual cost method (Thevaluation amount in the balance sheet are statedafter devaluing the book values based on lowered
profitability.)
Component Products and Goods:…Periodic average method based on actual cost
method (The valuation amount in the balance
sheet are stated after devaluing the book values
based on lowered profitability.)b. Work-in-Process Goods:…Cost method based on the actual cost method (Thevaluation amount in the balance sheet are statedafter devaluing the book values based on lowered
profitability.)c. Raw Materials and Stored Items
Raw Materials:…Periodic average method based on actual cost
method (The valuation amount in the balance
sheet are stated after devaluing the book values
based on lowered profitability.)
Stored Items:…Final purchase cost method based on actual cost
method (The valuation amount in the balance
sheet are stated after devaluing the book values
based on lowered profitability.)- 12 -

ii) Inventory Assets
a. Products and Goods
Automatic Machinery Products:
Same as left

Component Products and Goods:
Same as leftb. Work-in-Process Goods:
Same as leftc. Raw Materials and Stored Items
Raw Materials:
Same as left

Stored Items:
Same as left

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)(2) Depreciation of Important Depreciable Assetsi) Tangible Fixed Assets (excluding leased assets)
Declining-balance method
For buildings (excl. equipment attached to buildings)
acquired after April 1, 1998, straight-line method wasused.
Main durable years:
Buildings and structure:
3 to 50 years
Machineries and carriers:
3 to 17 yearsii) Intangible Assets (excl. leased assets)
Straight-line method
For software (used by CKD), straight-line method basedon usable period in this company (i.e. 5 years) was used.
iii) Leased Assets
Straight-line method with the durable year of leasing
period and residual value of 0 was used.
For leasing transactions in finance and leasingtransaction other than transfer of ownership which
leasing period started before March 31, 2008,
depreciation was made by an accounting processing
based on an ordinary leasing transaction.
(3) Criteria used for Accounting Important Allowancesi) Allowance for doubtful debts
In order to prepare ourselves for trade receivables andloan receivable unable to be recollected, the amount of
expected amount to become a bad debt is calculated byloan loss ratio, and for particular credits, including
doubtful accounts receivable, examinations were madeto each of them to identify the amount of possibility ofrecollection.
ii) Allowance for bonus
Allowance for bonus was accounted based on theamount of expected payment, in order to pay bonus toour employees.
iii) Allowance for retirement benefits
Allowance for retirement benefits was calculated basedon the expected amount of retirement benefit obligations
and pension assets as of the end of the current
consolidated accounting year in order to prepare
ourselves for payment of benefit to retiring employees.
Prior service obligations were accounted as expenses
using straight-line method, based on a certain number ofyears (12 years) within the average remaining years for
employees as of when the obligations occurred.
Any difference in calculations is accounted as expenses,
from the consolidated accounting year subsequent towhen the prior service obligation occurred, as theamount calculated on proportionally basis using thestraight-line method, based on a certain number of years(12 years) within the average remaining years of service
for employees.
iv) Allowance for Product Compensation
In order to reserve costs for responding to complaints ofcustomers on products delivered to them, a reasonableamount that is expected to be required in the future isaccounted as allowance.

(2) Depreciation of Important Depreciable Assetsi) Tangible Fixed Assets (excluding leased assets)
Same as leftii) Intangible Assets (excl. leased assets)
Same as leftiii) Leased Assets
Same as left

(3) Criteria used for Accounting Important Allowancesi) Allowance for doubtful debts
Same as left

- 13 -ii) Allowance for bonus
Same as leftiii) Allowance for retirement benefits
Same as leftiv) Allowance for Product Compensation
Same as left

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)v) Allowance for Loss Generated by Orders Received
In order to prepare ourselves for possible losses
generated in relation to contracts signed by thiscompany and customers, expected losses due tocontracts as of the end of the current accounting year
was accounted.
(4) Accounting Standard for Important Profit and Expenses
Percent of completion method is used for a construction
contract of the portion for which payment by customers
and costs for the progress made by the end of the current
consolidated accounting year can be assured, and forothers, completed contract method is used. In doing so,
the progress of a construction work made as of the endof the current consolidated accounting year for whichpercent of completion method is applied is estimated bycost-to-cost method.
(Change in Accounting Policy)
Though conventionally, in CKD, completed contract
method was used for accounting revenues generated
from a construction contract, ‘Accounting Standard
related to Construction Contracts’ (Corporate
Accounting Standard No. 15 of December 27, 2007) and‘Guideline for Application of Accounting Standard
related to Construction Contracts’ (Corporate
Accounting Standard Application Guideline No. 18 ofDecember 27, 2007) have been applied from the current
consolidated accounting year. The new method wasapplied to a construction contract during the start to theend of the current consolidated accounting year, for the
portions of progress made, which payment and cost can
be clearly accounted (estimation of the progress madeusing cost-to-cost method), and for others, completed
contract method is used.

v) Allowance for Loss Generated by Orders Received
Same as left

(4) Accounting Standard for Important Profit and Expenses
Percent of completion method is used for a construction
contract of the portion for which payment by customers
and costs for the progress made by the end of the current
consolidated accounting year can be assured, and forothers, completed contract method is used. In doing so,
the progress of a construction work made as of the endof the current consolidated accounting year for whichpercent of completion method is applied is estimated bycost-to-cost method.
-------------------------

Due to this, sales for the current consolidated accounting
year increased by 862 million yen, while gross sales
profit, operating profit, current profit and net profit
before tax for the current consolidated accounting year
showed an increase of 177 million yen each.
Matters that will impact on the segment information arefound at the respective section.

- 14 -

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)(5) Translation Standard for Important Assets and Liabilities
in Foreign Currency to Japanese Yen
All monetary obligations in foreign currencies weretranslated into Japanese yen, using spot foreignexchange rate as of the account closing date, differences
as a result of the translation were accounted as
profit/loss.
Assets and liabilities of overseas subsidiaries weretranslated in Japanese yen using spot foreign exchange
rate, while income and expenses using the mid-term
average rate. The difference in translation was
accounted into foreign exchange adjustment accountindicated in Net Asset in the financial statement.
(6)-------------------------(7) Other Important Matters for Creation of the Consolidated
Financial Statementi) Financial statements of overseas subsidiaries werecreated pursuant to accounting standard that is generally
regarded as fair and appropriate in the respective
countries where such subsidiaries are situated. The
followings show main accounting standard of overseas
subsidiaries.

(5) Translation Standard for Important Assets in Foreign
Currency to Japanese Yen
Same as left

(6) Scope of Funds in the Consolidated Cash Flow Statement
Cash and cash equivalents in the Consolidated Cash
Flow Statement include short-term investment, which ishighly liquid, is easy to be realized and involves only aminute risks in terms of price fluctuation and which due
date comes within 3 months from the date ofacquisition.
(7) Other Important Matters for Creation of the Consolidated
Financial Statementi)
Same as left

Valuation Standard and Method of Inventory Assets
Goods and products: lower-of-cost-or-market method
based on weighted-average method
Work-in-process
goods:
lower-of-cost-or-market
method based on weighted-average method
Raw materials and stored goods: lower-of-cost-ormarket method based on weighted-average method
Depreciation of Fixed Assets
Tangible fixed assets: straight-line method (estimateduse life)ii) Accounting of Consumption Tax, etc.
The tax excluded method is used.

ii) Accounting of Consumption Tax, etc.
Same as left

5. Matters relating to Valuation of Assets and Liabilities ofConsolidated Subsidiaries
Full market value method is used for valuation of assets
and liabilities of consolidated subsidiaries.
6. Matters relating to Depreciation of Goodwill
Goodwill was depreciated using straight-line method for 5
years.

-------------------------

7. Scope of Funds in the Consolidated Cash Flow Statement
The funds consist of petty cash, deposits cashable atanytime and short-term investments which is highly liquid,
is easy to be realized and involves only a minute risks interms of price fluctuation and which due date comes within
3 months from the date of acquisition.

-------------------------- 15 --------------------------

[Changes in Important Matters as the Basis of Forming the Consolidated Financial Statement]
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)-------------------------(Accounting Standard, etc., related to Asset Retirement
Obligation)‘Accounting Standard related to Asset Retirement
Obligation’ (Corporate Accounting Standard No. 18 ofMarch 31, 2008) and ‘Guideline for Application of
Accounting Standard related to Asset Retirement Obligation’(Corporate Accounting Standard No. 21 of March 31, 2008)
are applied from the current consolidated financial statement
onward.
Due to this, operating profit and current profit for the current
consolidated accounting year showed a decrease by 5
million yen, while net profit before tax for the current termby 84 million yen.

- 16 -

[Changes in Accounting Items]
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)(Consolidated Profit/Loss Statement)
1. As ‘Commission Income’ shown in the previous
consolidated accounting year (58 million yen for thecurrent consolidated accounting year’ decreased its
monetary importance, the accounting item was transferredto ‘Others’ in ‘Non-Operating Profit’ of the current
consolidated accounting year.
2. ‘Loss of Disposing Fixed Assets’ in ‘Special Loss’ that was
shown as a separate item in the previous consolidated
accounting year is further separated into ‘Loss on sales of
fixed assets’ (13 million yen for the previous consolidated
accounting year) and ‘Loss due to retirement of fixed
assets’ (52 million yen for the previous consolidated
accounting year), in order to make the details clear(Consolidated Profit/Loss Statement)
1. ‘Accounting Standard related to Consolidated Financial
Statements’ (Corporate Accounting Standard No. 22 ofDecember 26, 2008), ‘Cabinet Ordinance on Partial
Amendment of the Rules on Terminology, Form andCreation Method of Financial Statements’ (Cabinet
Ordinance No. 5 of March 24, 2009) are applied from thecurrent consolidated accounting year on ward, pursuant toapplied, which is shown in the accounting item of ‘Income
before Minority Interests.’
2. ‘Commission income’ (58 million yen for the previous
consolidated accounting year) that was included in ‘Others’
in the previous consolidated accounting year exceeded ten
hundredth of non-operating profit and thus in the current
consolidated accounting year, the accounting term is shown
as a separate category.
3. ‘Profit from adjustment of profit/loss of the previous term’(0 million yen for the current consolidated accounting year)
is shifted to ‘Others’ in ‘Special Income’ in the current
consolidated accounting year, as the amount became
minute.
4. ‘Loss from adjustment of profit/loss of the previous term’(0 million yen for the current consolidated accounting year)
is shifted to ‘Others’ in ‘Special Loss’ in the current
consolidated accounting year, as the amount became
minute-------------------------(Consolidated Cash Flow Statement)‘Profit/loss on disposal of fixed assets’ and ‘profit/loss onsale of fixed assets in ‘Cash flow from operation activities’
that were shown separately in the previous consolidated
accounting year are further separated into ‘Profit/loss onsale of fixed assets’ (U160 million yen for the previous
consolidated accounting year) and ‘Loss due to retirementof fixed assets’ (52 million yen for the previous
consolidated accounting year) in order to clarify the details.

- 17 -

[Additional Information]
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)-------------------------(Accounting Standard related to Comprehensive Income)‘Accounting Standard related to Presentation ofComprehensive Income’ (Corporate Accounting Standard No.
25 of June 30, 2010) is applied from the current consolidated
accounting year onward. The amounts in ‘Other Accumulated
Comprehensive Earnings’ and ‘Total for the Other
Accumulated Comprehensive Earnings’ of the previous
consolidated accounting year show those for ‘Valuation andtranslation differences, etc.’ and ‘Total for valuation andtranslation differences, etc.’(Accounting of ‘ESOP in cooperation with Employee
Shareholding Association’)This Company introduced ‘ESOP in cooperation with
Employee Shareholding Association,’ having a structure of
Employee Stock Ownership Plan, in this consolidated
accounting year.
This ESOP structure aims at enhancing our corporate values
by uplifting employees’ motivation to work through providing
the incentives and promoting welfare for upgrading ourcorporate values and enriching and reinforcing corporate
governance by providing the employees a chance ofparticipating in determining the direction of the company.
In the plan, ‘CKD Employee Shareholding Trust Account’ isestablished (hereinafter referred to as the Account) for the
purpose of transferring CKD shares to CKD employee
shareholding association. The Trust Account acquires thenumber of shares estimated to be acquired by the association
during the trust period from CKD beforehand and sells themto the association.
This company already transferred its 1,287,000 treasury
shares to the Trust Account as of February 21, 2011.
As CKD is a guarantor of all liabilities involving the Trust
Account, disposal of such shares to the Trust Account was
accounted in a way that CKD and the Trust Account are one
body, considering the importance of actual financial status.
Due to such reasons, CKD’s treasury shares, assets andliabilities and profits and costs held by the Trust Account areincluded in this company’s consolidated balance sheet,consolidated profit/loss statement, consolidated statement ofcomprehensive income and consolidated statement of changes
in net assets. The number of stocks held by the Trust Accountas of the end of the current consolidated accounting year is
1,257.000 shares.

- 18 -

[Notes](Notes for Consolidated Profit/Loss Statement)
Previous Consolidated Accounting Year

Current Consolidated Accounting Year(as of March 31, 2010)*1: For inventory assets, that is assumed to show a loss,
applicable allowance for loss generated by orders receivedof 16 million yen (including 13 million yen related to
products and goods and 2 million yen related to work-inprocess goods) were offset.
*2: The following is related to non-consolidated subsidiaries
and affiliated companies.
Investment securities (shares)
47 million yen(as of March 31, 2011)*1: For inventory assets, that is assumed to show a loss,
applicable allowance for loss generated by orders receivedof 21 million yen (all related to products and goods) wereoffset.

*3: Accumulated depreciation costs, deducted from tangible
fixed assets comes to 41,909 million yen.

*3: Accumulated depreciation costs, deducted from tangible
fixed assets comes to 43,187 million yen.
4: CKD maintains a loan commitment contract to 2 banks inorder to raise funds effectively for appropriate them to its
operating funds. The balance of credit facility given to
CKD as of the end of the current accounting year is asfollows.
Total amount of loan commitment 3,300 million yen
Amount of loans executed:
600 million yen

4: CKD maintains a loan commitment contract to 2 banks inorder to raise funds effectively for appropriate them to its
operating funds. The balance of credit facility given to
CKD as of the end of the current accounting year is asfollows.
Total amount of loan commitment 5,000 million yen
Amount of loans executed:
1,300 million yen
Credit facility balance:*2: The following is related to non-consolidated subsidiaries
and affiliated companies.
Investment securities (shares)
47 million yen

3,700 million yen

Credit facility balance:

2,700 million yen(Notes for Consolidated Profit/Loss Statement)
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)*1: Amount of book values reduced due to decreased*1: Amount of book values reduced due to decreased
profitability of inventory assets owned for the purpose ofprofitability of inventory assets owned for the purpose ofordinary selling (after offsetting the amount reversed)
ordinary selling (after offsetting the amount reversed)
Sales cost:
Sales cost:
520 million yen
U410 million yen*2: Amount transferred to allowance for loss generated by*2: Amount transferred to allowance for loss generated byorders received as a part of sales cost:orders received as a part of sales cost:
32 million yen
50 million yen*3: Amount of R&D expense included in administrative*3: Amount of R&D expense included in administrative
expenses accounts for 2,245 million yen. No R&D expense
expenses accounts for 1,731 million yen. No R&D expense
is related to total manufacturing cost incurred.
is related to total manufacturing cost incurred.
*4: Details of profit from adjustment of profit/loss of the------------------------previous term
Reversal of labor insurance fees:
30 million yen
Reversal of unpaid legal welfare
29 million yen
expenses for bonus:
Others:2 million yen
Total:
63 million yen*4: Details of gain on sales of fixed assets*5: Details of gain on sales of fixed assets
Machineries and carriers:
Machineries and carriers:
8 million yen
Tools, apparatus and fixtures:
Tools, apparatus and fixtures:
0 million yen
Construction in progress:
Construction in progress:
0 million yen
Total:
Total:
8 million yen------------------------*6: Details of loss from adjustment of profit/loss of theprevious term
Appraisal loss on inventories:
41 million yen
Appraisal loss on credits:
4 million yen
Underdepreciation of the past years:
3 million yen
Others:1 million yen
Total:
51 million yen- 19 -

9 million yen
0 million yen
1 million yen
11 million yen

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)*7: Details of loss on sales of fixed assets*5: Details of loss on sales of fixed assets
Buildings and structures:
0 million yen
Machineries and carriers:
6 million yen
Machineries and carriers:
1 million yen
Tools, apparatus and fixtures:
0 million yen
Tools, apparatus and fixtures:
0 million yen
Total:
6 million yen
Construction in progress:
0 million yen
Total:
2 million yen*6: Details of loss due to retirement of fixed assets*8: Details of loss due to retirement of fixed assets
Buildings and structures:
18 million yen
Buildings and structures:
3 million yen
Machineries and carriers:
25 million yen
Machineries and carriers:
15 million yen
Tools, apparatus and fixtures:
4 million yen
Tools, apparatus and fixtures:
14 million yen
Total:

34 million yen

Total:
47 million yen*7: Loss due to impairment
The CKD Group accounted the loss due to impairment for
the following asset groups for the current consolidated
accounting year.
Location

Application

Type

AmountBuildings
62 million
Assets to beandyen
disposedstructures
Assets to be Machineries
0 million
Fukushimadisposedand carriersyen
Honing Kogyo
Tools,
K.K.
0 million
Assets to beapparatusyendisposed
and fixtures:
20 million
Assets to beLandyendisposed
Resolution for dissolution of Fukushima Honing Kogyo
K.K. (Suminoe-Ku, Osaka City) a consolidated subsidiary
was passed as of March 31, 2011. As the assets of thecompany won’t be used any more, the book value wasdecreased to the salable value for each asset and thedifference was accounted as loss due to impairment.
(Grouping Method)
The CKD Group makes a group of assets for businesspurposes mainly by office, based on the categorization
under managerial accounting.
(Calculation Method of Salable Value)
Salable values are measured using net sale prices andcalculated based on the market price calculated reasonably
by a third party. Salable values for assets that cannot besold or cannot be used for other purposes are accounted as
0.

(Consolidated Statement of Comprehensive Income)Current Consolidated Accounting Year (April 1, 2010 to March 31, 2011)*1: Comprehensive income of the consolidated accounting year immediately before
Comprehensive income related to shareholders of the parent company:
Comprehensive income related to minority interest:

2,261 million yen-

Total:

2,261 million yen*2: Other comprehensive income of the consolidated accounting year immediately before
Valuation difference on available-for-sale securities:
Foreign currency translation adjustment account:
Total:- 20 -

707 million yen
59 million yen
766 million yen

(Consolidated Statement of Changes in Net Assets)
Previous consolidated accounting year (April 1, 2009 to March 31, 2010)
1. Matters relating to Type and Total Number of Outstanding Shares and Type and Number of Treasury Shares
Number of shares at the Increase of shares for the Decrease of shares for Number of shares at theend of the current
current consolidated the current consolidated
end of the previous
consolidated accounting
accounting year
accounting year
consolidated accounting
year (thousand shares)(thousand shares)(thousand shares)
year (thousand shares)
Outstanding shares
Ordinary shares

69,429--69,42969,429--69,429Ordinary shares (Note)

7,260

0

-

7,261

Total

7,260

0

-

7,261

Total
Treasury shares

Note: Increase by 0 thousand ordinary shares of treasury shares derives from acquisition of odd shares.

2. Matters related to Dividends(1) Amount of Dividends Paid
(Resolution)

Total of dividends(million yen)Type of shares

Board of Directors heldon May 12, 2009
Board of Directors heldon Oct 29, 2009

Dividend per share(yen)

Record date

Effective on

Ordinary shares

310

5Mar. 31, 2009

Jun 4, 2009

Ordinary shares

186

3

Sep. 30, 2009

Dec.8, 2009

(2) Dividends which record date belongs to the current accounting year, but the effective date for the dividend

belongs to the next accounting year.
(Resolution)

Type of shares

Increase of dividends(million yen)

Board of Directors
held on May 12, 2010

Ordinary shares

186

Dividend
resource
Accumulated
earnings

Dividend pershare (yen)Record date

Effective on:

3 Mar. 31, 2010

Jun 4, 2010

Current Consolidated Accounting Year (April 1, 2010 to March 31, 2011)
1. Matters relating to Type and Total Number of Outstanding Shares and Type and Number of Treasury Shares
Number of shares at the Increase of shares for the Decrease of shares for Number of shares at theend of the current
current consolidated the current consolidated
end of the previous
consolidated accounting
accounting year
accounting year
consolidated accounting
year (thousand shares)(thousand shares)(thousand shares)
year (thousand shares)
Outstanding shares
Ordinary shares

69,429--69,429Total

69,429--69,429

7,261

0

1,287

5,975

-

1,287

30

1,257

7,261

1,287

1,317

7,232

Treasury shares
Ordinary shares(Note:1, 2)
Ordinary shares(held in Trust Account)(Note 3, 4)
Total

Note 1: Increase by 0 thousand ordinary shares of treasury shares derives from acquisition of odd shares.
Note 2: Decrease by 1,287 thousand ordinary shares of treasury shares derives from transfer of 1,287 thousand sharesand sales of odd shares of 0 thousand shares to ‘CKD Employee Shareholding Association Trust Account’ with
the Sumitomo Mitsui Banking Corporation (hereinafter referred to as the Trust Account).
Note 3: Increase by 1,287 thousand ordinary shares (held by Trust Account) of treasury shares derives from acceptance- 21 -

by Trust Account of the treasury shares.
Note 4: Decrease by 30 thousand ordinary shares (held by Trust Account) of treasury shares derives from sales by Trust
Account to CKD Employee Shareholding Association.

2. Matters related to Dividends(1) Amount of Dividends Paid
(Resolution)
Board of Directors heldon May 12, 2010
Board of Directors heldon Oct. 29, 2010

Type of shares

Total of dividends(million yen)

Dividend per share(yen)

Record date

Effective on

Ordinary shares

186

3

Mar. 31, 2010

Jun 4, 2010

Ordinary shares

373

6

Sep. 30, 2010

Dec. 8, 2010

(2) Dividends which record date belongs to the current accounting year, but the effective date for the dividend belongs to
the next accounting year.
Total of dividends
Dividend
Dividend per
Record date Effective on:(Resolution)
Type of shares(million yen)resource
share (yen)Accumulated
Board of Directors
8 Mar. 31, 2011 Jun.6, 2011
Ordinary shares
507
earnings
held on May 12, 2011

(Consolidated Cash Flow Statement)
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)*1: Relationship between the balance of cash and cash *1: Relationship between the balance of cash and cash
equivalents as of the end of the current term and amountequivalents as of the end of the current term and amountof the following accounting items shown in theof the following accounting items shown in the
consolidated balance sheet
consolidated balance sheet
Cash and deposits:
5,682 million yen
Cash and deposits:
7,849 million yen
Time deposit with the deposit termTime deposit with the deposit term
U 101 million yen
U 121 million yenof over and above 3 months:of over and above 3 months:
Cash and cash equivalents:
5,581 million yen
Cash and cash equivalents:
7,728 million yen
2. Details of important non-fund transactions
2. Details of important non-fund transactions(1)The amount of assets and liabilities related to
The amount of assets and liabilities related to financing andfinancing and lease transactions that was newly
lease transactions that was newly accounted for theaccounted for the current consolidated accounting year
current consolidated accounting year came to 50 million
came to 44 million yen each.
yen each.
(2) The amount of assets and liabilities related to asset
retirement obligation that was newly accounted for thecurrent consolidated accounting year:
Buildings and structures
48 million yen
Asset retirement obligation
129 million yen- 22 -

(Lease Transactions)
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)

1. Finance and Lease Transactions (Lessee Side)
1. Finance and Lease Transactions (Lessee Side)
Finance and lease transactions without transfer of ownership
Finance and lease transactions without transfer of ownershipi) Lease assetsi) Lease assets
Same as left
Tangible fixed assets
These include production facilities (machineries andcarriers) and dies (tools, apparatus and fixtures).
ii) Depreciation of leased assetsii) Depreciation of leased assets
Same as left
Important matters as the basis of creating the consolidated
financial statement:
See ‘(2) Depreciation of Important Depreciable Assets’ in‘4. Matters relating to the Accounting Standard.’
Of those finance and leasing transactions without transferof ownership, leasing transactions started on or before
March 31, 2008 was treated based on the accounting fornormal leasing and lending transactions, which includes thefollowings.
(1) Amount equivalent to acquisition price of leased estates, (1) Amount equivalent to acquisition price of leased estates,
amount equivalent to accumulated depreciation expenses,
amount equivalent to accumulated depreciation expenses,
amount equivalent to accumulated loss due to impairment
amount equivalent to accumulated loss due to impairment
and amount equivalent to the balance as of the term end
and amount equivalent to the balance as of the term end
AmountAmountAmountAmountAmountAmountequivalent to equivalent toequivalent to equivalent toequivalent toequivalent toaccumulated the balance asaccumulated the balance asacquisitionacquisition
depreciation of the term
depreciation of the term
price
price
end
end
expenses
expenses(million yen)(million yen)(million yen) (million yen)(million yen) (million yen)
Machineries andMachineries and
5
4
1
5
5
0
carriers
carriers
Tools, apparatus
Tools, apparatus
410
334
75
410
311
98
and fixturesand fixtures
Intangible fixed
Intangible fixed
42
33
8
21
18
2
assetsassets
Total

458

372

85

(2) Amount equivalent to the balance of accrued leasing fees
Amount equivalent to the balance of accrued leasing fees
Within a year:
77 million yen
Over and above a year:
12 million yen
Total:
89 million yen(3) Leasing fees paid, amount withdrawn from lease asset
impairment account, amount equivalent to depreciation
expenses, amount equivalent to interest paid and loss due
to impairment
Leasing fees paid:
142 million yen
Amount equivalent to depreciation
135 million
expenses:
Amount equivalent to interest paid: 3 million yen(4) How to calculate the amount equivalent to depreciation
expenses
With the leasing period as useable period, straight-line
method is used with the balance amount set as 0.

Total

437

336

101

(2) Amount equivalent to the balance of accrued leasing fees
Amount equivalent to the balance of accrued leasing fees
Within a year:
71 million yen
Over and above a year:
31 million yen
Total:
102 million yen(3) Leasing fees paid, amount withdrawn from lease asset
impairment account, amount equivalent to depreciation
expenses, amount equivalent to interest paid and loss due
to impairment
Leasing fees paid:
180 million yen
Amount equivalent to depreciation
176 million
expenses:
Amount equivalent to interest paid: 1 million yen(4) How to calculate the amount equivalent to depreciation
expensesSame as left

- 23 -

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)(5) How to calculate the amount equivalent to interest(5) How to calculate the amount equivalent to interest
Same as left
The difference between the total leasing fees and theamount equivalent to acquisition price of each lease
estate set as the amount equivalent to interest, interest
method is used to allocate the interest to each accountingterm.
2. Operating Lease Transactions (Lessee Side)
2. Operating Lease Transactions (Lessee Side)
Accrued leasing fees of operating lease transactions ofAccrued leasing fees of operating lease transactions of
the portion that cannot be cancelled:
the portion that cannot be cancelled:
Within 1 year:
4 million yen
Within 1 year:
2 million yen
Over and above 1 year:
0 million yen
Over and above 1 year:
1 million yen
Total:
5 million yen
Total:
3 million yen(Loss due to Impairment)(Loss due to Impairment)
No loss due to impairment was allocated to lease assets.
Same as left
(Financial Products)
Previous consolidated accounting year (From April 1, 2009 to March 31, 2010)(Additional Information)‘Accounting Standard related to Financial Products’ (Corporate Accounting Standard No. 10 of March 10, 2008) and ‘Guideline
for Presentation of Market Prices of Financial Products’ (Corporate Accounting Standard Guideline No. 19 of March 10, 2008)
are applied from this current accounting year onward.
1. Matters relating to the Status of Financial Instruments(1) Policies for Handling Financial Instruments
The CKD Group has a policy that investment should be restricted to short-term deposits and safe financial commodities, andthat funds should be raised through bank loans and issuance of corporate bonds. Derivatives are used for avoidance of foreignexchange fluctuation risks and interest fluctuation risks of borrowings only and no speculative investment will be made toderivatives.
(2) Financial Instruments and their Risks
Note receivables and trade account receivables, as well as accrued income from operations are operation receivables which areexposed to credit risks of customers. Operation receivables in foreign currency, generated by the Group’s global businessactivities are exposed to foreign exchange fluctuation risks, but a part of them is hedged by borrowings in foreign currency.
The Group’s investment securities are stocks mainly related to expand business relationships with suppliers and are exposed tomarket price fluctuation risks.
All due dates for operation payables, including note payables and trade account payables, arrive within one year. A part of themis in foreign currency, related to importing raw materials, which is exposed to foreign exchange fluctuation risks. They,
however, are constantly within the balance of trade account receivables for the same foreign currency.
Lease liabilities related to long-term borrowings and financial leasing mainly aim at raising funds necessary for plantinvestment. As the fixed interest rate is used, they won’t be exposed to any interest rate fluctuation risks.
(3) Risk Management System on Financial Instrumentsi) Credit Risk Control (risk of default to a contract by suppliers)
CKD regularly monitors the operation receivables from major suppliers by sales control function of each sales sites, pursuant
to credit control guideline to detect any potential bad debts at their early stage due to deteriorated business condition of suchsuppliers and to alleviate such bad debts. CKD’s consolidated subsidiaries are also under the similar risk control, pursuant tothe credit control guideline.
ii) Market Risk Control (risk of foreign exchange/interest rate fluctuations)CKD hedges a part of foreign exchange fluctuation risks of operating receivables in foreign currency by borrowing in foreign
currency. Conditions of the foreign exchange markets and of its operation receivables are monitored regularly to revise theamount of funds to be raised in foreign currency.
As to investment securities, brands’ market prices and financial conditions are regularly checked and the volume of holding- 24 -

securities of each brand are continuously revised by considering the business relationship between us and the brand.
iii) Fund Raising Fluidity Risk Management (risks that repayment cannot be done on due date)CKD Accounting Department forms a funding plan based on reporting made by each department and fund raising is managed
using a comparison table of a monthly funding statement and a funding plan, and other methods.
(4) Supplemental explanation on market price, etc. of financial instruments
Prevailing prices of financial instruments include those determined by the market, and where no market price exists, prices
calculated in a reasonable manner. As calculation of the prevailing prices includes a certain fluctuation element, it is subject tovary depending on premises used for calculation.
2. Matters relating to Prevailing Prices, etc. of Financial Instruments
The following table shows the amount of each accounting items shown in this company’s consolidated balance sheet,prevailing prices and difference between them as of the end of the current consolidated accounting year. Items which it is quitedifficult to grasp their prevailing rate are not shown in the table. (See Note 2.)
Amount shown in thePrevailing price (*)
Difference
consolidated balance sheet (*)(million yen)(million yen)(million yen)
(1) Cash and deposits

5,682

5,682

-

(2) Note receivables and trade account receivables

17,47917,479-(3) Accrued operating income

1,280

1,280

-

(4) Investment securities
Other securities

3,514

3,514

-

(5) Note payables and trade account payables(9,618)(9,618)-(6) Short-term borrowings(3,312)(3,312)-(7) Long-term borrowings(including those to be repaid within one year)(2,700)(2,729)

29

-

-

-

(8) Derivative transactions(*) Figures in the parenthesis ( ) shows those items listed as liabilities.
Note 1: Method of calculating prevailing prices for financial instruments and matters related to marketablesecurities and derivative transactions(1) Cash and deposits, (2) Notes receivables and trade account receivables and (3) Accrued operating income:As these will be settled within a short time, and their prevailing value is almost equal to their book values,
they are calculated using the respective book value.
(4) Investment securities:
For determining the prevailing rate of investment securities, share prices are those transacted in stock
exchanges while bonds prices appraised by securities companies.
Cautions on securities for each investment objectives, refer to ‘Marketable Securities.’(5) Note payables and trade account payables and (6) Short-term borrowings
As these will be settled within a short time, and their prevailing value is almost equal to their book values,
they are calculated using the respective book value.
(7) Long-term borrowings (including those to be repaid within a year)
Prevailing value for long-term borrowings is calculated by the total principal amount discounted byinterest rate to be applied for a new borrowings of such principal amount.
(8) Derivative transactions
Not applicable.
2. Financial Instruments which it may be Extremely Difficult to determine their Prevailing Values
Category

Amount shown in the consolidated balance sheet (million yen)

Non-listed stocks

110

As stocks not listed don’t have any market price and it is extremely difficult to determine their prevailing values, they
are not included in ‘(4) Investment Securities.’- 25 -

3. Amount to be Redeemed on or after Closing of the Current Consolidated Accounting Year for Monetary
Credits and Marketable Securities with Due Dates
Redeemed within a Redeemed within Redeemed within 5 Redeemed within
one year to 5 years years to 10 years more than 10 years
year(million yen)(million yen)(million yen)(million yen)

Category
Cash and deposits

5,682

-

-

-

Note receivables and tradeaccount receivables

17,479---Accrued operating income

1,280

-

-

-

(1) Bonds (corporate bonds)

-

-

100

-

(2) Others

-

-

-

-

Other marketable securities withdue dates

4. Repayment Schedules for Long-Term Borrowings, Lease liabilities and other Debts with Interests on orafter Closing of the Current Consolidated Accounting Year
Repaid within
a year(million yen)
Long-term
borrowings
Leaseliabilities
Total

Repaid within
Within 2 years
one year to 2
to 3 years
years(million yen)(million yen)Repaid within
3 years to 4
years
(million yen)Repaid within
4 years to 5
years
(million yen)Repaid withinmore than 5
years(million yen)

700

700

700

600

-

-

96

64

16

12

7

0

796

764

716

612

7

0

Current Consolidated Accounting Year (from April 1, 2010 to March 31, 2011)
1. Matters relating to the Status of Financial Instruments(1) Policies for Handling Financial Instruments
The CKD Group has a policy that investment should be restricted to short-term deposits and safe financial commodities, andthat funds should be raised through bank loans and issuance of corporate bonds. Derivatives are used for avoidance of foreignexchange fluctuation risks and interest fluctuation risks of borrowings only and no speculative investment will be made toderivatives.
(2) Financial Instruments and their Risks
Note receivables and trade account receivables, as well as accrued income from operations are operation receivables which
are exposed to credit risks of customers. Operation receivables in foreign currency, generated by the Group’s global businessactivities are exposed to foreign exchange fluctuation risks, but a part of them is hedged by borrowings in foreign currency.
The Group’s investment securities are stocks mainly related to expand business relationships with suppliers and are exposed
to market price fluctuation risks.
All due dates for operation payables, including note payables and trade account payables, arrive within one year. A part ofthem is in foreign currency, related to importing raw materials, which is exposed to foreign exchange fluctuation risks. They,
however, are constantly within the balance of trade account receivables for the same foreign currency.
Lease liabilities related to long-term borrowings and financial leasing mainly aim at raising funds necessary for plantinvestment. As the fixed interest rate is used, they won’t be exposed to any interest rate fluctuation risks.
(3) Risk Management System on Financial Instrumentsi) Credit Risk Control (risk of default to a contract by suppliers)
CKD regularly monitors the operation receivables from major suppliers by sales control function of each sales sites,
pursuant to credit control guideline to detect any potential bad debts at their early stage due to deteriorated businesscondition of such suppliers and to alleviate such bad debts. CKD’s consolidated subsidiaries are also under the similar risk
control, pursuant to the credit control guideline.

- 26 -

ii) Market Risk Control (risk of foreign exchange/interest rate fluctuations)CKD hedges a part of foreign exchange fluctuation risks of operating receivables in foreign currency by borrowing inforeign currency. Conditions of the foreign exchange markets and of its operation receivables are monitored regularly torevise the amount of funds to be raised in foreign currency.
As to investment securities, brands’ market prices and financial conditions are regularly checked and the volume of holding
securities of each brand are continuously revised by considering the business relationship between us and the brand.
iii) Fund Raising Fluidity Risk Management (risks that repayment cannot be done on due date)CKD Accounting Department forms a funding plan based on reporting made by each department and fund raising ismanaged using a comparison table of a monthly funding statement and a funding plan, and other methods.
(4) Supplemental explanation on market price, etc. of financial instruments
Prevailing prices of financial instruments include those determined by the market, and where no market price exists, prices
calculated in a reasonable manner. As calculation of the prevailing prices includes a certain fluctuation element, it is subject tovary depending on premises used for calculation.
2. Matters relating to Prevailing Prices, etc. of Financial Instruments
The following table shows the amount of each accounting items shown in this company’s consolidated balance sheet,prevailing prices and difference between them as of the end of the current consolidated accounting year. Items which it isquite difficult to grasp their prevailing rate are not shown in the table. (See Note 2.)
Amount shown in thePrevailing price (*)
Difference
consolidated balance sheet (*)(million yen)(million yen)(million yen)
(1) Cash and deposits

7,849

7,849

-

(2) Note receivables and trade account receivables

19,29019,290-(3) Accrued operating income

3,150

3,150

-

(4) Investment securities
Other securities

3,723

3,723

-

(5) Note payables and trade account payables(11,030)(11,030)-(6) Short-term borrowings(2,851)(2,851)-(7) Long-term borrowings(including those to be repaid within one year)(2,999)(3,014)

14

-

-

-

(8) Derivative transactions(*) Figures in the parenthesis ( ) shows those items listed as liabilities.
Note 1: Method of calculating prevailing prices for financial instruments and matters related to marketablesecurities and derivative transactions(1) Cash and deposits, (2) Notes receivables and trade account receivables and (3) Accrued operating income:As these will be settled within a short time, and their prevailing value is almost equal to their book values,
they are calculated using the respective book value.
(4) Investment securities:
For determining the prevailing rate of investment securities, share prices are those transacted in stock
exchanges while bonds prices appraised by securities companies.
Cautions on securities for each investment objectives, refer to ‘Marketable Securities.’(5) Note payables and trade account payables and (6) Short-term borrowings
As these will be settled within a short time, and their prevailing value is almost equal to their book values,
they are calculated using the respective book value.
(7) Long-term borrowings (including those to be repaid within a year)
Prevailing value for long-term borrowings is calculated by the total principal amount discounted byinterest rate to be applied for a new borrowings of such principal amount.
(8) Derivative transactions
Not applicable.

- 27 -

2. Financial Instruments which it may be Extremely Difficult to determine their Prevailing Values
Category

Amount shown in the consolidated balance sheet (million yen)

Non-listed stocks

110

As stocks not listed don’t have any market price and it is extremely difficult to determine their prevailingvalues, they are not included in ‘(4) Investment Securities.’
3. Amount to be Redeemed on or after Closing of the Current Consolidated Accounting Year for Monetary
Credits and Marketable Securities with Due Dates
Category

Redeemed within ayear(million yen)

Redeemed within
one year to 5 years(million yen)

Redeemed within 5
years to 10 years(million yen)

Redeemed withinmore than 10 years(million yen)

Cash and deposits

7,849

-

-

-

Note receivables and tradeaccount receivables

19,290---Accrued operating income

3,150

-

-

-

(1) Bonds (corporate bonds)

-

-

100

-

(2) Others

-

-

-

-

Other marketable securities
with due dates

4. Repayment Schedules for Long-Term Borrowings, Lease liabilities and other Debts with Interests on orafter Closing of the Current Consolidated Accounting Year

Long-term
borrowings
Leaseliabilities
Total

Within a year
(million yen)

Within one
year to 2
years(million yen)

Within 2
years to 3
years
(million yen)

Within 3
years to 4
years
(million yen)

Within 4
years to 5
years
(million yen)

700

700

600

-

999

-

72

24

20

14

3

0

772

724

620

14

1,003

0

- 28 -

Within morethan 5 years(million yen)(Marketable Securities)
Previous Consolidated Accounting Year (as of March 31, 2010)
1. Other Marketable Securities
Amount shown in the consolidatedbalance sheet (million yen)

Acquisition cost
(million yen)

2,823

2,093

729

-

-

-

101

100

1

c. others---iii) Others

-

-

-

2,925

2,193

731

588

626

U37

a. Central and local government bonds, etc.

-

-

-

b. Corporate bonds

-

-

-

c. others---iii) Others

-

-

-

Sub total

588

626

U37

Total

3,514

2,820

693

Categories

Difference(million yen)

(1) Items whose amount in the consolidatedbalance sheet is over and above theacquisition costi) Sharesii) Bonds
a. Central and local government bonds, etc.
b. Corporate bonds

Sub total(2) Items whose amount in the consolidatedbalance sheet is within the acquisition costi) Sharesii) Bonds

Note: Non-listed stocks (i.e. 63 million yen in the consolidated balance sheet) don’t have any market values andit is extremely difficult to set a prevailing rate. As such they aren’t included in ‘Other marketablesecurities’ in the above table.
2. Other Marketable Securities Sold during the Current Consolidated Accounting Year (From April 1, 2009 to
March 31, 2010)
Not applicable

3. Marketable Securities subject to Booking of Impairment Loss
For the current consolidated accounting year, 157 million yen of marketable securities were booked as impairment loss.
For ‘Other Marketable Securities,’ when prevailing rate comes below the acquisition cost of them by 50% or more, we
consider it ‘a significant down’ and book such securities as impairment loss. For downing of 30% to 50%, suchmarketable securities are booked as impairment loss so far as we determine it ‘a significant lows’ after checking theprevailing price during the current accounting year of each brand and financial statements of each issuing company.

- 29 -

Current Consolidated Accounting Year (as of March 31, 2011)
1. Other Marketable Securities
Amount shown in the consolidatedbalance sheet (million yen)

Acquisition cost
(million yen)

3,356

2,408

947

-

-

-

100

100

0

-

-

-

-

-

-

3,456

2,508

948

266

334

△67

-

-

-

-

-

-

-

-

-

-

-

-

Sub total

266

334

△67

Total

3,723

2,842

880

Categories

Difference(million yen)

(1) Items whose amount in the consolidatedbalance sheet is over and above theacquisition costi) Sharesii) Bonds
a. Central and local government bonds, etc.
b. Corporate bondsc. othersiii) Others
Sub total(2) Items whose amount in the consolidatedbalance sheet is within the acquisition costi) Sharesii) Bonds
a. Central and local government bonds, etc.
b. Corporate bondsc. othersiii) Others

Note: Non-listed stocks (i.e. 63 million yen in the consolidated balance sheet) don’t have any market values andit is extremely difficult to set a prevailing rate. As such they aren’t included in ‘Other marketablesecurities’ in the above table.
2. Other Marketable Securities Sold during the Current Consolidated Accounting Year (From April 1, 2010 toMarch 31, 2011)
Not applicable

3. Marketable Securities subject to Booking of Impairment Loss
Not applicable(Derivative Transactions)
Previous consolidated accounting year (As of March 31, 2010)
Not applicable
Current consolidated accounting year (As of March 31, 2011)
Not applicable- 30 -

(Retirement Benefits)
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)
1. Retirement Benefit System
1. Retirement Benefit SystemCKD Corporation and CKD Global Service Co., Ltd. have a CKD Corporation and CKD Global Service Co., Ltd. have aretirement benefit system pursuant to the respective retirement benefit system pursuant to the respective
Retirement Benefit Regulations, and combined use of Retirement Benefit Regulations, and combined use ofdefined contribution type corporate pension fund system and defined contribution type corporate pension fund system anddefined contribution pension system. The defined defined contribution pension system. CKD Corporation has
contribution type corporate pension fund system was an employee pension trust.
modified to a system similar to a cash balance system on While Shikoku Seiko K.K. and some consolidated
April 1, 2010. CKD Corporation has an employee pension subsidiaries in overseas use a retirement lump sum grants
system. Other consolidated subsidiaries in overseas use atrust.
defined contribution pension system.
Fukushima Honing Kogyo K.K. has its own qualified
retirement pension plan, while Shikoku Seiko K.K. and someconsolidated subsidiaries in overseas use a retirement lumpsum grants system. Other consolidated subsidiaries inoverseas use a defined contribution pension system
2. Matters relating to Retirement Benefit Obligations
2. Matters relating to Retirement Benefit Obligations
U14,902 million
U15,184 million(1) Retirement benefit obligations:(1) Retirement benefit obligations:yen
yen
766 million yen(2) Retirement benefit trust:
822 million yen (2) Retirement benefit trust:(3) Pension assets
11,278 million yen (3) Pension assets
11,467 million yen(4) Unfunded retirement benefit
U3,082 million (4) Unfunded retirement benefit
U2,669 million
obligations (1)+(2)+(3):yen obligations (1)+(2)+(3):yen(5) Actual differences not recognized:
5,546 million yen (5) Actual differences not recognized:
5,042 million yen(6) Prior service obligations not
U3,070 million (6) Prior service obligations not
U2,569 million
recognized:
yen recognized:yen(7) Net amount shown in the balance sheet(7) Net amount shown in the balance
U607 million yen
U195 million yen(4)+(5)+(6):sheet (4)+(5)+(6):(8) Cost of pension paid in advance:- (8) Cost of pension paid in advance:(9) Allowance for retirement benefit (7)(9) Allowance for retirement benefit (7)U607 million yen
U195 million yen
(8):
(8):
Note 1: Some subsidiaries calculate their retirement benefit
Note 1: Some subsidiaries calculate their retirement benefit
obligations using a simple method.
obligations using a simple method.
Note 2: After changing their defined contribution type
corporate pension fund system was modified to asystem similar to a cash balance system, both CKDCorporation and CKD Global Service Co., Ltd.
showed U362 million yen as their past service
obligations (decreased obligation).
3. Matters relating to Cost of Retirement Benefits
3. Matters relating to Cost of Retirement Benefits
629 million yen(1) Service cost:
649 million yen (1) Service cost:(2) Interest cost:
312 million yen (2) Interest cost:
298 million yen(3) Expected operation gain:
U272 million yen (3) Expected operation gain:
U224 million yen(4) Actual differences accounted as cost: 1,061 million yen (4) Actual differences accounted as cost:
972 million yen(5) Past service obligations accounted as(5) Past service obligations accounted as
U470 million yen
U501 million yen
cost:
cost:
(6) Cost of retirement benefit(6) Cost of retirement benefit
1,279 million yen
1,174 million yen(1)+(2)+(3)+(4)+(5):(1)+(2)+(3)+(4)+(5):(7) Premiums paid to the defined(7) Premiums paid to the defined
146 million yen
141 million yen
contribution payment system:
contribution payment system:
Total
1,425 million yen
Total
1,316 million yen
Note: The above includes costs of retirement benefit for
Note: Costs of retirement benefit for consolidated
consolidated subsidiaries employing a simple
subsidiaries employing a simple calculation method
calculation method and a retirement lump sum grants
and a retirement lump sum grants system aresystem.
accounted in (1) Service cost.

- 31 -

Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)
4. Matters relating to the Basis of Calculating Retirement 4. Matters relating to the Basis of Calculating Retirement
Benefit Obligations, etc.
Benefit Obligations, etc.
Straight line
(1) Method of attributing projected of retirement Straight line (1) Method of attributing projected ofretirement benefit payment:
attribution
benefit payment:
attribution(2) Discount ratio:
2.0％(2) Discount ratio:
2.0％(3) Earning ratio:
2.0％(3) Earning ratio:
2.5％(4) Years applicable to the calculation of(4) Years applicable to the calculation of the
12 years
12 years
the amount of past service obligations:amount of past service obligations:(5) Years applicable to actual difference: 12 years(5) Years applicable to actual difference:
12 years
Note: Actual differences in retirement benefit obligations
Note: Actual differences in retirement benefit obligations
for each year are depreciated as cost, in a way thatfor each year are depreciated as cost, in a way thatthe amount within a certain number of years up to thethe amount within a certain number of years up to theaverage remaining service years of employees hired
average remaining service years of employees hired
for each consolidated accounting year is prorated
for each consolidated accounting year is proratedusing the straight line method.
using the straight line method.

(Tax Effect Accounting)
Previous Consolidated Accounting Year

Current Consolidated Accounting Year(as of March 31, 2010)(as of March 31, 2011)
1. Details by Case of Deferred tax Assets and Deferred Tax 1. Details by Case of Deferred tax Assets and Deferred Tax
Liabilities
Liabilities
Deferred Tax Assets
Deferred Tax Assets
Amount set as employee retirement
Amount set as employee retirement
798 million yen
798 million yen
benefit trust:
benefit trust:
Inventory assets:
527 million yen
Inventory assets:
330 million yen
Accrued bonus:
511 million yen
Accrued bonus:
639 million yen
Tax loss:
369 million yen
Tax loss:
340 million yen
Allowance for retirement benefit:
238 million yen
Accrued business tax, etc.
212 million yen
Appraisal loss of investment
Accruedexpenses:162
million yen
150 million yen
securities:
Appraisal loss of investment
149 million yen
Accrued expenses:
124 million yen
securities:
Others:
267 million yen
Allowance for retirement benefit:
74 million yen
Sub-total for deferred tax assets:
2,989 million yen
Others:
330 million yen
U1,315 million
Sub-total for deferred tax assets:
3,039 million yen
Valuation reserve:yen
Valuation reserve:
U1,182 million yen
Total for deferred tax assets:
1,673 million yen
Total for deferred tax assets:
1,856 million yen
Deferred Tax Liabilities
Gain on contribution of securities toU329 million yen
retirement benefit trust:
Valuation difference on available-forU221 million yen
sale securities:
OthersU6 million yen
U557 million yen
1,116 million yen

Deferred Tax Liabilities
Gain on contribution of securities toU329 million yen
retirement benefit trust:
Valuation difference on available-forU301 million yen
sale securities:
Others
U53 million yen
Total for deferred tax liabilities:
U684 million yen
Net deferred tax liabilities:
1,172 million yen

Net deferred tax assets and net deferred tax liabilities areincluded in the following accounting items in the
consolidated balance sheet.
Current Assets-Deferred Tax Assets: 1,123 million yen
Fixed Assets-Deferred Tax Assets:
60 million yen
Fixed Liabilities-Deferred Tax
U67 million yen
Liabilities:

Net deferred tax assets and net deferred tax liabilities areincluded in the following accounting items in the
consolidated balance sheet.
Current Assets-Deferred Tax Assets:
1,302 million yen
Fixed Assets-Deferred Tax Assets:
122 million yen
Fixed Liabilities-Deferred Tax
U252 million yen
Liabilities:

Total for deferred tax liabilities:
Net deferred tax liabilities:- 32 -

Previous Consolidated Accounting Year

Current Consolidated Accounting Year(as of March 31, 2010)(as of March 31, 2011)
2. Burden Ratio of Corporate Tax, etc. after Application of the 2. Burden Ratio of Corporate Tax, etc. after Application of theNormal Effective Statutory Tax Rate and Tax EffectNormal Effective Statutory Tax Rate and Tax EffectAccounting and Details of Major Accounting Items that
Accounting and Details of Major Accounting Items that
Caused a Difference
Caused a Difference
Normal effective statutory tax rate:
40.6％ Normal effective statutory tax rate:
40.6％(Adjustment)(Adjustment)
Inhabitant tax on per capita basis:
6.8％ Inhabitant tax on per capita basis:
0.8％
Accounting items that will never be calculated as
Accounting items that will never be calculated as
3.0％
0.5％
loss (such as entertainment expenses):loss (such as entertainment expenses):
Increase/decrease of valuation reserve:
U118.0％ Difference in the normal effective statutory tax
U2.2％
Tax deduction for R&D expenses:
U8.5％ rates of consolidated subsidiaries:
Increase/decrease of valuation reserve:
U1.8％
Accounting items that will never be calculated as
U4.1％
gain (such as dividends received):
Special deduction for R&D expenses:
U1.2％
Others:1.2％ Accounting items that will never be calculated as
U0.5％
gain (such as dividends received):
Burden ratio of corporate tax, etc., after
U81.4％
Others:1.1％
application of tax effect accounting:
Burden ratio of corporate tax, etc., after
37.3％
application of tax effect accounting:(Asset Retirement Obligations)
As of the closing date for the current consolidated accounting year (March 31, 2011)
Asset retirement obligations accounted in the consolidated balance sheet:(1) Outline of the asset retirement obligations
The CKD Group accounts asbestos removal expenses for demolishing company-owned buildings as an asset
retirement obligation.
In addition, some branch offices have an obligation for returning the office space back to its original condition
upon vacating the space, pursuant to the relevant lease agreements with the owner. The fees required for it isaccounted as an asset retirement obligation.
(2) Calculation of the Asset Retirement Obligations
Asset retirement obligations accounted as liabilities are calculated by estimating the expected use period as 16
to 50 years with the discount ratio of 1.929 to 2.293%.
(3) Increase/Decrease of Total Asset Retirement Obligations for the Current Consolidated Accounting Year
Balance brought forward from the previous term (See Note.):Increase due to acquisition of tangible fixed assets:
Time course adjustment:
Decrease due to execution of asset retirement obligations:

127 million yen-million yen
2 million yen-million yen

Balance carried forward to the next term:

129 million yen

Note: The balance brought forward from the previous term is derived from our application of ‘Accounting Standard for Asset
Retirement Obligations’ (Corporate Accounting Standard No. 18 of March 31, 2008) and ‘Guideline for Application of
Accounting Standard for Asset Retirement Obligations’ (Corporate Accounting Standard Application Guideline No. 21 ofMarch 31, 2008).

- 33 -

(Segment Information, etc.)[Segment Information by Business Category]Previous Consolidated Accounting Year (April 1, 2009 to March 31, 2010)
Automatic
Machinery
Products(million yen)

Component
Products(million yen)Total
(million yen)

Elimination or
corporate(million yen)

Consolidated
amount(million yen)

11,96738,06850,035-50,035

7

160

168

(168)

-

Total

11,974

38,22950,204(168)

50,035

Operating expenses

10,53437,31547,8491,852

49,702

Operating profits

1,440

914

2,354

(2,020)333

10,00744,50554,512

8,356

62,869Depreciation expenses

389

2,302

2,692

226

2,918

Capital expenditure

52

478

531

65

597

I. Sales and Operating Profit/Loss
Sales(1) Sales to external customers(2) Internal sales amount or amounttransferred among segments

II. Assets, Depreciation Expenses
and Capital Expenditure
Assets

Note 1: Segmentation Method
CKD’s businesses are segmented into Automatic Machineries Products and Component Products considering theanalogy of the type, properties and sales method of products.
Note 2: Major Products for each BusinessBusiness Segment
Automatic Machinery Products

Type
Automatic machineries

Energy saving units, air pressure control devices, driving devices, airpressure-related devices, fluid control devices and control devices
Note 3: Of the operating expenses, the amount that cannot be allocated that is shown in the ‘elimination or corporate’column accounts for 2,473 million yen and 2,051 million yen for the previous and the current consolidated
accounting year respectively. These expenses mainly include expenses related to administration of CKD, longterm R&D expenses and costs related to CKD Global Service Co., Ltd.
Note 4: Of assets, the amount for corporate assets shown in the ‘elimination or corporate’ column includes 7,542 million
yen and 8,356 million yen for the previous and the current consolidated accounting year respectively. Theseassets mainly consist of working surplus funds (cash and deposits) and long-term investment funds (investment
securities).
Component Products- 34 -

[Segment Information by Location]
Previous Consolidated Accounting Year (April 1, 2009 to March 31, 2010)
Elimination or Consolidated
amountcorporate(million yen) (million yen)Japan(million yen)Asia
(million yen)

Others(million yen)Total
(million yen)

(1) Sales to external customers

43,455

6,048

532

50,035-50,035(2) Internal sales amount oramount transferred among
segments

4,827

836

-

5,664

(5,664)-

Total

48,2826,885

532

55,700(5,664)50,035

Operating expenses

46,901

6,962

596

54,461(4,759)49,702

Operating profit/loss (U)

1,380

U77

U64

1,239

(905)

333

II. Assets

55,272

6,628

286

62,187681

62,869I. Sales and Operating Profit/Loss
Sales

Note 1: Nations and areas are categorized based on geological proximity.
Note 2: Major Nations and Areas (other than Japan)(1) Asia: Malaysia, Thailand, Singapore, China, South Korea and Taiwan(2) Others: U.S.A. and Canada
Note 3: Of the operating expenses, the amount that cannot be allocated that is shown in the ‘elimination or corporate’column accounts for 2,473 million yen and 2,051 million yen for the previous and the current consolidated
accounting year respectively. These expenses mainly include expenses related to administration of CKD, longterm R&D expenses and costs related to CKD Global Service Co., Ltd.
Note 4: Of assets, the amount for corporate assets shown in the ‘elimination or corporate’ column includes 7,542 million
yen and 8,356 million yen for the previous and the current consolidated accounting year respectively. Theseassets mainly consist of working surplus funds (cash and deposits) and long-term investment funds (investment
securities).

[Overseas Sales]
Previous Consolidated Accounting Year (April 1, 2009 to March 31, 2010)
Asia
I. Overseas sales (million yen)

Others
6,907

Total
1,006

II. Consolidated sales (million yen)

7,913
50,035

III. Ratio of overseas sales to consolidated sales (%)

13.8

2.0

Note 1: Nations and areas are categorized based on geological proximity.
Note 2: Major Nations and Areas (other than Japan)(1) Asia: Malaysia, Thailand, Singapore, Taiwan, China and South Korea, etc.
(2) Others: U.S.A., Canada, Latin America and Europe, etc.
Note 3: The overseas sales refers to the sales generated by CKD and its consolidated subsidiaries other than in Japan.

- 35 -

15.8

[Segment Information]
Current Consolidated Accounting Year (April 1, 2010 to March 31, 2011)
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 byforecasting demands of each 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 among
segments are based on current market prices.
3. Information on Reporting-Segment-Wise Sales, Profit/Loss, Assets, Liabilities and other Accounting Items
Previous Consolidated Accounting Year (April 1, 2009 to March 31, 2010)(Unit: million yen)
Reporting segment
Automatic
Machineries Products

Component
Products

Total

Amount shown in the
consolidated financial
statement

Amountadjusted

Sales
Sales to external customers

11,96738,06850,035-50,035

7

160

168

△168

-

Total

11,974

38,22950,204△168

50,035

Profit for segment

1,440

914

2,354

△2,020333

Asset of segment

10,00744,50554,512

8,356

62,869

389

2,302

2,692

226

2,918

Internal sales amount or amounttransferred among segments

Other items
Depreciation expenses

Increase of tangible and
52
478
531
65
597
intangible fixed assets
Note 1: Details of the amount adjusted(1) The amount of adjustment for ‘Sales’ i.e. U168 million yen is derived from elimination of transactions among
segments.
(2) The amount of adjustment for ‘Profit for segment’ i.e. U2,020 million yen includes 30 million yen for elimination oftransactions among segments andU2,051 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. 8,356 million yen is the total company assets not allocated toeach reporting 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. 226 million yen mainly consists of depreciation amounts related to- 36 -

head office building.
(5) The amount adjusted for increase of tangible/intangible fixed assets, i.e. 65 million yen mainly consists of the amountof system investment for the entire company.
Note 2: ‘Profits for segment’ has already been adjusted with operating profits shown in the consolidated profit/loss statement.

Current Consolidated Accounting Year (April 1, 2010 to March 31, 2011)
Reporting segment
Automatic
Machineries Products

Component
Products

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

Amountadjusted(Note 1)

Sales
Sales to external customers

13,061

58,95972,020-72,020

0

223

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

Depreciation expenses

273

2,168

2,441

197

2,639

Increase of tangible andintangible fixed assets

238

1,899

2,138

42

2,180

Internal sales amount or amounttransferred among segments

Other items- 37 -

[Related Information]
Current Consolidated Accounting Year (April 1, 2010 to March 31 2011)
1. Information by Product and by Service
Omitted as the same information is shown in the relevant places in Segment Information.
2. Information by Area
(1) Sales(Unit: million yen)
Japan

Asia
57,155

OthersTotal

13,080

1,785

72,020Note: Sales by nation and by area are based on the customer locations.
(2) Tangible Fixed Assets
Omitted, as the total tangible assets in Japan exceeds 90% of the amount of tangible assets shown in the
consolidated financial statement.
3. Customer Information
N/A, as we don’t have external customers, sales of whom exceeds 10% of the sales shown in the consolidated
profit/loss statement.
[Information on Loss due to Impairment of Fixed Assets by Reporting Segment]
Current Consolidated Accounting Year (From April 1, 2010 to March 31, 2011)(Unit: million yen)
Reporting segment

Loss due to impairment

Automatic
Machineries Products

Component
Products-

82

Amount shown in the
consolidated financial
statement

Corporate/
Elimination

Total
82

-

82

[Information on Amount of Depreciation and Undepreciated Balance of Goodwill by Reporting Segment]
Current Consolidated Accounting Year (From April 1, 2010 to March 31, 2011)
N/A.

[Information on Gain on Negative Goodwill by Reporting Segment]
Current Consolidated Accounting Year (From April 1, 2010 to March 31, 2011)
N/A.

(Additional Information)
The CKD Group applies ‘Accounting Standard on Disclosure of Segment Information, etc.’ (Corporate
Accounting Standard No. 17 of March 27, 2009) and ‘Guideline for Application of Accounting Standard on
Disclosure of Segment Information, etc.’ (Corporate Accounting Standard Guideline No. 20 of March 21,2008) from the current consolidated accounting year onward.

- 38 -

[Information on Related Parties]
Previous Consolidated Accounting Year (April 1, 2009 to March 31, 2010)
N/A.
Current Consolidated Accounting Year (April 1, 2010 to March 31, 2011)
N/A.

[Per stock Information]
Previous Consolidated Accounting Year

Current Consolidated Accounting Year

(From April 1, 2009 to March 31, 2010)(From April 1, 2010 to March 31, 2011)

Net asset per share:

667.24 yen

Net asset per share:

714.46 yen

Net profit per share for the term:

24.04 yen

Net profit per share for the term:

73.40 yen

As we have no diluted shares, net income per share for the As we have no diluted shares, net income per share for theterm fully diluted is omitted.

term fully diluted is omitted.

Note: The basis for calculating net profit per share for the term is shown as follows.
Previous Consolidated
Accounting Year

Current Consolidated
Accounting Year

(From April 1, 2009 to
March 31, 2010))(From April 1, 2010 toMarch 31, 2011)

Net profit per share for the term:
Net profit for the term (million yen)

1,494

4,577

-

-

Net profit for the term relate to ordinary shares (million yen)

1,494

4,577

Mid-term average shares (thousand shares)

62,16762,365

Amount not attributable to ordinary shareholders (million yen)

Number of ordinary shares at the end of the current consolidated accounting year used for calculation of per share net asset aswell as mid-term average ordinary shares used for calculating per share net profit includes treasury shares held by ‘CKD
Employee Shareholding Trust Account.’(Important Events occurred after the Date of this Report)
N/A.

- 39 -

v) [Consolidated Detailed Statement][Statement on Corporate Bonds]
N/A.

[Statement of Borrowings]
Repayment
periods

Category

Balance brought forward(million yen)

Balance carried forward(million yen)

Ave. interest (%)

Short-term borrowings

3,312

2,851

1.4

-

700

700

1.5

-

96

72

-

-

2,000

2,299

1.0

101

63

-

-

-

-

-

6,209

5,987

-

-

Long-term borrowings to be
repaid within a year
Lease obligations to be repaid
within a year
Long-term borrowings (excl.
those to be repaid within a year)
Lease obligations (excl. those to
be repaid within a year)
Other debts with interest
Total

2012 through2016
2012 through2018

Note 1: The average interest rate is a weighted average interest against the balance outstanding as of the end of the term.
Note 2: The average interest rate for lease receivables is omitted, as lease obligations are accounted in the consolidatedbalance sheet before deduction of the amount equivalent to interest included in total leasing fees.
Note 3: See the following table, for the repayment schedule for 5 years after the date of closing consolidated account for
long-term borrowings and lease obligations (excl. those to be repaid within a year).
Repaid within one year to Repaid within 2 years to Repaid within 3 years to Repaid within 4 years to
5 years
4 years
3 years
2 years(million yen)(million yen)(million yen)(million yen)
Long-term borrowings

700

600

-

999

Lease liabilities

24

20

14

3

[Statement of Asset Retirement Obligations]
Omitted as the amount of asset retirement obligations as of the end of the current consolidated accounting
year is one hundredth or less of the sum of liabilities and net assets as of the end of the current consolidated
accounting year.
(2) [Others]

Quarterly Information during the Current Consolidated Accounting Year
Q1 (From April 1 toJune 30, 2010)
Sales

Q2 (From July 1 to Q3 (From October 1 to
September 30, 2010) December 31, 2010)

Q4 (From January 1
to March 31, 2011)(million yen)

16,02918,877

18,74818,364

Net quarterly profit(million yen)
before tax

1,405

2,176

2,089

1,632

Net quarterly profit (million yen)

858

1,335

1,283

1,100

13.81

21.48

20.65

17.52

Per share net
quarterly profit(yen)- 40 -