Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2019
(Based on Japanese GAAP)
November 8, 2019
Company name:Toshiba Machine Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6104
URL https://www.toshiba-machine.co.jp
President and Chief Operating Officer
Takahiro Mikami

Inquiries:

Corporate Strategy Department
Senior Manager

Yoshiaki Kai

TELScheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 8, 2019
December 3, 2019

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

055-926-5072(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 201959,586
0.2
1,637
1.1
2,405 (10.9)
1,620 (16.2)
Six months ended September 30, 2018
59,4506.0
1,619(8.1)
2,701 (29.8)
1,933 (31.1)
Earnings per share

Diluted earnings per share

Yen
67.15
80.13

Six months ended September 30, 2019
Six months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
148,159
150,724

As of September 30, 2019
As of March 31, 2019

Equity ratio

Millions of yen
83,40983,197

%
56.3
55.2

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
7.50
42.50

Yen–

Yen
37.50

Yen––

42.50

85.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Full year

Millions of yen
118,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
0.5
3,300 (13.9)
3,800 (31.8)
2,600 (36.3)
107.731

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2019

29,977,106 shares As of March 31, 2019

29,977,106 shares

Number of treasury shares at the end of the period
As of September 30, 2019

5,841,875 shares As of March 31, 2019

5,841,537 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201924,135,385 shares Six months ended September 30, 20182

24,136,245 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade25,59237,40524,074
38,241

Merchandise and finished goods
Work in process

12,15329,793

10,702
31,117

Raw materials and supplies
Other73
3,909

61
2,416

Allowance for doubtful accounts
Total current assets

(89)

(59)

108,838

106,555

Non-current assets
Property, plant and equipment
Buildings and structures

39,35039,069(28,052)(28,156)

Buildings and structures, net

11,297

10,913

Machinery, equipment and vehicles

24,18524,342(21,964)(22,020)

2,220

2,321

Land

6,460

6,462

Leased assets
Accumulated depreciation and impairment loss

264(160)

246(140)

Leased assets, net

104

105

Construction in progress
Other

130
7,428

57
7,375(6,877)(6,872)

Accumulated depreciation and impairment loss

Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net

Accumulated depreciation and impairment loss
Other, net

550

502

20,76520,364641

590

Total intangible assets

641

590

Investments and other assets
Investment securities

18,37918,917

16703

14683

Other
Allowance for doubtful accounts

1,726(345)

2,052(1,019)

Total investments and other assets

20,47920,649Total property, plant and equipment
Intangible assets
Other

Long-term loans receivable
Deferred tax assets

Total non-current assets
Total assets

341,885

41,604

150,724

148,159(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade28,207

27,202

Short-term borrowings
Income taxes payable

10,090466

10,090590

Accrued expenses
Provision for product warranties

4,854
604

4,782
662

Advances received
Other7,842
1,423

6,309
1,154Total current liabilities

53,48850,792

Non-current liabilities
Long-term borrowings

4,300

4,300

Long-term accounts payable - other
Deferred tax liabilities

566

554

Provision for retirement benefits for directors (and otherofficers)

32

36

9,475
51

9,387
52

Retirement benefit liability
Asset retirement obligations
Other

105

121

14,037

13,95767,52664,749

Share capital
Capital surplus

12,484
11,53812,484
11,538Retained earnings
Treasury shares

71,983(16,375)

72,698(16,376)

Total shareholders' equity

79,63080,3452,8442,948

0
1,711

–
1,035

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(988)

(919)

Total accumulated other comprehensive income

3,566

3,064

Total net assets
Total liabilities and net assets

483,197

83,409150,724

148,159

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2018

September 30, 2019

Net sales
Cost of sales

59,45043,12759,58642,583Gross profit

16,322

17,003

Selling, general and administrative expenses

14,70315,366

Operating profit

1,619

1,637

Interest income
Dividend income

27216

26219

Rental income
Share of profit of entities accounted for using equity method

27617

24546

Foreign exchange gains
Other281
129

2899

1,298

945

Non-operating expenses
Interest expenses

4040

Brand fee expense
Other501255679

Total non-operating expenses

217

177

2,701

2,405

Gain on sales of non-current assets
Gain on sales of investment securities

483

1–

Total extraordinary income

87

11324

1324

Profit before income taxes

2,774

2,383

Income taxes - current
Income taxes - deferred

934
(93)

817
(54)

Total income taxes

840

762

Profit

1,933

1,620

Profit attributable to owners of parent

1,933

1,620

Non-operating income

Total non-operating income

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2018

September 30, 2019

1,933

1,620

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

162
(0)

119(0)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

216
81(676)
63

Share of other comprehensive income of entities accounted
for using equity method(17)(9)Total other comprehensive income442(502)

2,376

1,117

2,376

1,117––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2018

September 30, 2019

2,774

2,383

Depreciation
Increase (decrease) in allowance for doubtful accounts

924
19870
643

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits for4957(4)398(23)

Interest and dividend income
Interest expenses(243)
40(246)40

Loss (gain) on sales of investment securities
Loss (gain) on sales and retirement of property, plant and(83)–922

directors (and other officers)
Increase (decrease) in retirement benefit liability

equipment and intangible assets
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables

(617)

(546)

(1,850)(835)

Decrease (increase) in inventories
Increase (decrease) in trade payables(4,130)(1,082)138(1,011)

Increase (decrease) in advances received
Increase (decrease) in accrued expenses

1,167
62(1,532)(71)

23(13)

(100)
(159)

Other, net

1,503

1,375

Subtotal(1,353)

1,007

514

517

Interest paid
Income taxes paid

(48)
(1,099)

(40)
(645)

Net cash provided by (used in) operating activities(1,986)

838

(296)

(499)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

5(16)

1(43)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates

140(400)

164(98)

Payments for investments in capital of subsidiaries andassociates–(379)

Decrease (increase) in short-term loans receivableCollection of long-term loans receivable

(0)
1(2)
1

Increase (decrease) in deposits received
Increase (decrease) in accounts payable - other

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

513(560)

(843)

4,300
(4,300)

––

(1)
(844)

(0)
(905)

Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net

(16)

(16)

Net cash provided by (used in) financing activities

(862)

(922)

7

(Millions of yen)

Effect of exchange rate change on cash and cash equivalents

Six months ended

Six months ended

September 30, 2018

September 30, 2019
217

(589)

Net increase (decrease) in cash and cash equivalents(3,192)(1,517)

Cash and cash equivalents at beginning of period

30,79825,592

138–

27,74424,074

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period8