Contents
1

An Outline of the Toshiba Machine Group
Corporate Information2

Foreword

4

Financial Highlights (consolidated)

5

Overseas Operations for Fiscal 2013

6

Overseas Offices
Financial Review

8

Consolidated Balance Sheet

10

Consolidated Statement of Income

11

Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets

12

Consolidated Statement of Cash Flows13

Notes to Consolidated Financial Statements

32

Report of Independent Auditors

33

Directors & Audit and Supervisory Board Members

An Outline of the Toshiba Machine GroupA highly respected integrated machine building group, internationallyrespected for its total capability in the production of quality plastic processing
machinery, die-casting machines, machine tools, precision machinery, hydraulicequipment, and electronic controls.

Based on their highly innovative technology, expertise, and experience
nurtured over decades as one of the world’s leading machine builders, the Toshiba
Machine Group’s global-type solution business provides customers, in suchvarious industries as nano-technology, optics, electronics and automotives withtotal satisfaction by careful analysis and the recommendation of optimum-type
solutions to their requirements.

Corporate Information (as of March 31, 2013)
Company Name:TOSHIBA MACHINE CO., LTD.

Headquarters: 	2068-3, Ooka, Numazu-shi,
Shizuoka-ken 410-8510, Japan
Established:

1938

Capital:¥12,485million (US$132,749thousands)

Shares of Common Stock
Issued and Outstanding:

166,885,530 shares

Number of Shareholders:

12,989Number of Employees:

1,842 (Consolidated: 3,197)

1

Foreword 2013
The Toshiba Machine Group focused on its midterm management plan, “TM AC Plan (Toshiba
Machine Adapt to the Change Plan)”, begun April 1st, 2010. In the TM AC Plan, we aim topromote “advancement strategies” and “expansion strategies”, in tandem.
The “advancement strategies” focus on advanced products using our core technologies tocontribute to the new industrial pyramid aiming at “energy” and “ecology”. The “expansion
strategies” revitalize our existing products in order to expand markets in developing countries
which constitute the broad base of the current industrial pyramid.
In Fiscal Year 2012, while the upturn in the USA and developing nations such as those inSoutheast Asia continued, overall, the severe climate generally persisted in the overseas market asa result of the effects of the economic slump caused by Europe’s financial crisis and stagnatedeconomic growth in China. On the other hand, amidst the underlying stagnancy of the domestic
market, while there was some recovery of demand from the Great East Japan Earthquake, thesituation continues to swing back and forth as a result of the export industry slowing down theworld economy and the knock-on effect of the Yen’s long-term appreciation. Similarly, within themachinery industry, while there was demand in the USA and developing countries such as those in
Asia, the effects of the decelerating world economy make for an uncertain outlook and the sector
continues to weaken.
Amidst the background of the severe economic climate and changing industrial structure, from
April 1st, 2012, the Toshiba Machine Group continued to implement the policies of the “TM AC
Plan III”, and we made an intensive effort to develop new products for the domestic and overseas
markets, explore new markets, secure orders, and improve our financial structure while creating
universal recognition of the Toshiba Machine Brand.
As a result, consolidated orders received totaled ¥112,081 million (US$1,191,717 thousands),
an 8.9% decrease on the previous term. Consolidated net sales totaled ¥120,859 million(US$1,285,051 thousands), a 1.1% increase on the previous term. Similarly, at the end of thisfiscal year, the consolidated backlog totaled ¥52,514 million (US$558,363 thousands), a 12.4%
decrease on the previous term.
With respect to profit and loss, consolidated operating profit totaled ¥8,038 million (US$85,465
thousands), an 8.5% increase on the previous term, and the current term’s consolidated net profit
totaled ¥7,891 million (US$83,902 thousands), a 17.4% increase on the previous term.
The year-end dividend for this term, ¥4.5 (US$0.05) per share, was distributed to ourstockholders resulting in a total annual dividend of ¥9 (US$0.1) per share.
In terms of key factors affecting the domestic and overseas outlook, while the Yen continues to
weaken due to the expectation of government policies designed to escape deflation, and export
companies, primarily within the manufacturing industry, are forecasting recovery, the situation
remains unpredictable and still requires caution. In overseas markets, Europe’s financial crisis
continues and economic growth in developing countries is slowing, while in the domestic market,

2the price of crude oil and raw material soars and competition intensifies among domestic andoverseas companies. However, we will make every effort to improve profits through pioneering
new markets, developing new technologies, introducing new products corresponding to changing
market needs, building global procurement, continuing cost reduction, and constructing strong
managerial foundations through greater efficiency.
Under the “TM AC Plan Advanced I” initiated April 1st, 2013, we are continuing the“advancement and expansion” which we established as our core business concepts, and bycreating universal recognition of the Toshiba Machine brand, we will aim for the deep cultivationof global markets and gather the strength of the Toshiba Machine Group to ensure our emergence
as a genuine global company. Among our management strategies to expand sales in overseas
markets, we will market and develop a series of products suited to regional characteristics as WTP(Willingness To Pay) products. At the same time, by promoting the local incorporation of bases inIndonesia and Brazil and creating a group company for Indian Injection Molding Machine
corporations, we will continue to make efforts to construct a framework to expand sales in the
global market and primarily in developing countries.
Next, among our technical strategies, the Toshiba Machine Group will continue to tackle thedevelopment of new products installed with the latest technologies aimed at the group’s 5 focus
domains (optics, nanotechnology, electronics, energy, and automobiles). Furthermore, within
systematized system engineering we are making efforts to incorporate the before and after
processes from simple products and, in particular, we have ascertained the decorating business,
providing in-line surface printing on molded products, is a market from which we can expect
major growth in the future and is an area we plan to develop.
Finally, among our manufacturing strategies, we agreed on a procurement alliance with local
manufacturers in China to manufacture products with highly competitive prices and expand massproduction at the Shanghai Plant. Likewise, to achieve multi-domestic production, we are pushingahead with the installation of a production plant in Thailand based on the overseas strategy ofestablishing production plants for each area of regional administration. As a result, our overseas
production plants will have three bases; the Shanghai Plant, Thailand Plant and India Plant, andthrough increasing overseas production, we will achieve overall optimum production capability.
We will make every effort to realize complete management of quality and the environment
based on ISO9001 and ISO14001 standards while, as a responsible corporate citizen, training andeducating our workforce to forge the future of our Company in observance of all rules andregulations, and in fulfillment of all social responsibilities.

3

FINANCIAL HIGHLIGHTS (consolidated)
Net sales

2013

2012

2011

2010

2009

¥120,859¥119,519¥95,653¥74,694¥121,890¥87,294¥88,312¥69,997¥56,470¥84,760¥25,527¥23,796¥21,628¥20,040¥25,594¥8,038¥7,411¥4,028¥(1,816)¥11,536¥12,239¥9,149¥3,749¥(2,032)¥9,866¥4,348¥2,428¥469¥2,499¥4,563¥7,891¥6,721¥3,280¥(4,531)¥5,303¥9,468¥6,840¥2,410——¥51.91¥44.21¥21.57¥(29.80)¥34.18

¥9.00

¥9.00

¥4.50

¥4.50

¥12.00¥142,239¥142,297¥131,203¥115,806¥132,734¥79,400¥71,101¥65,325¥63,372¥68,712¥770¥1,052¥2,044¥625¥5,550¥2,065¥2,276¥2,322¥2,514¥2,561¥1,566¥1,582¥1,399¥1,567¥1,684

3,197

3,157

3,140

3,067

3,148

$1,285,051
Cost of sales$928,166
Selling, general andadministrative expenses
Operating income (loss)$271,420$85,465
Income (loss) before income
taxes and minority interests
Income taxes$130,133$46,231

Net income (loss)$83,902
Comprehensive income$100,670
Per common share:
Net income (loss)$0.55

Cash dividends$0.10
Total assets$1,512,376
Net assets$844,232
Capital expenditure(property, plant and equipment)
Depreciation$8,187$21,956

R & D Cost

$16,651
Number of employees

In millions of yen (thousands of U.S. dollars) except for number of
employees and per-share data.

4

Overseas Operations for Fiscal 2013
In Fiscal Year 2013, while business
confidence was expected to improve at the
beginning of 2013 due to the newadministration’s policies to escape deflation, in
terms of the actual economy, the severe climate
persisted. In overseas markets, while the
upturn in the USA and developing nations suchas those in Southeast Asia continued, overall,
the severe climate persisted as a result of theeffects of the economic slump caused by
Europe’s financial crisis and stagnatedeconomic growth in China. On the other hand,amidst the underlying stagnancy of thedomestic market, while there was somerecovery of demand from the Great East Japan
Earthquake, the situation continues to swing
back and forth as a result of the export industry
slowing down the world economy and theknock-on effect of the Yen’s long-term
appreciation. Similarly, within the machineryindustry, while there was demand in the USA
and developing countries such as those in Asia,
the effects of the decelerating world economy
make for an uncertain outlook and the sector
continues to weaken.
Under these severe management
circumstances, the Toshiba Machine Groupfocused on midterm management plan, “TM AC
Plan (Toshiba Machine Adapt to ChangePlan)”, and made an intensive effort to develop
products, explore new markets, and secureorders in Japan and overseas, and improve ourfinancial structure.
With the effect of firmer capital investmentin the automotive and consumer electronics
industries of North America and developing
countries such as China and in Southeast Asia,
this term’s consolidated overseas sales totaled¥74,566 million (US$792,834 thousands), which
was an 11.5% increase on the previous term.
More specifically, injection molding
machines, die-casting machines, and machine
tools were our leading products, and the mostcommon destination for exports was the Asian
region.
During 2012, we focused on businessstructural reformation designed to best ensure
the success of the TM AC Plan, and from April
2013 we newly developed and initiated the “TM
AC Plan Ad I.” We are continuing the“advancement and expansion” which weestablished as our core business concepts, andby creating universal recognition of the Toshiba
Machine brand, we will aim for the deep
cultivation of global markets and gather thestrength of the Toshiba Machine Group to
ensure our emergence as a genuine global
company.

Net Sales
Millions of yen

119,519
24,952

121,890
19,24895,65322,78938,226

74,694
12,579Machine28,902 Tools

28,83923,574

31,33465,726

Moldingry
Machine73,18849,28964,37530,7802009

al
120,859 TotOther
roducts
P
7
6
18,7

2011

2010

2012

2013

Total Sales & Overseas Sales
Millions of yen

119,519es
Total Sal

120,859

121,890
95,65374,694

66,87652,4102009

35,76374,567

Overseas

Sales

50,077

2011

2010

2012

2013

Export Percentages by Major Products
HydraulicEquipment

Other
Products
6%

MachineTools

Molding
Machinery

2%

20%
72%

5

Overseas Offices■ East Asia ■SHANGHAI TOSHIBA MACHINE CO., LTD.
Head Office4788, Jin Du Road,
Xinzhuang Industry Zone,
Shanghai, 201108,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)21-5442-0606
Fax : [86]-(0)21-5866-2450
URL:http://www.toshiba-machine.com.cn

Beijing Office

Beijing Fortune Building, Room No. 2014,
5 Dong Sanhuan Bei-Lu, Chaoyang
District, Beijing, 100004,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)10-6590-8977~8
Fax : [86]-(0)10-6590-8979

Tianjin Office

Room 1105, Jinyu Building,
No.57, Heiniucheng Road,
Hexi District, Tianjin, 300211,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)22-8836-3056
Fax : [86]-(0)22-2416-0380

Suzhou OfficeWuhan Office

Room A-1205, Kaiyue Building, No. 62,
Longyang Road, Hanyang District, Wuhan,
430051PEOPLE`S REPUBLIC OF CHINA
Tel : [86]-(0)27-8455-0038
Fax : [86]-(0)27-8451-6389

TOSHIBA MACHINE (SHANGHAI) CO., LTD.
4788, Jin Du Road,
Xinzhuang Industry Zone,
Shanghai, 201108,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)21-5442-5455
Fax : [86]-(0)21-5442-5466

TOSHIBA MACHINE (SHENZHEN)
CO., LTD. Head Office

Room 608, Building 2, Animation Park,
Yuehai Road, Nanhai Street, Nanshan
District, Shenzhen, 518054,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)755-8625-0599
Fax : [86]-(0)755-8625-0522

Guangzhou Office

Room No. A-606, No.218, Sufu Road,(SND) Suzhou, Jiangsu, 215011,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)512-6855-0387
Fax : [86]-(0)512-6855-0562

Room 605, Guangken Commercial
Plaza 38, Yueken Road, Tianhe District,
Guangzhou, 510507,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)20-2916-1330
Fax : [86]-(0)20-2916-1338

Dalian Office

Dongguan Office

Room 1304, Gugeng International
Business Building, 138th Jinma Road,
Dalian Economic & Technological
Development Zone, Dalian, 116600,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)411-8732-7911
Fax : [86]-(0)411-8732-6899

Xiamen Office

Room A303, Xinxin Jingdi Building,
No.396, Jia He Road, Huli District,
Xiamen, 361009,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)592-5596-381
Fax : [86]-(0)592-5596-382

Chongqing Office

Room 19-1, Zhongxin Building, No. 1,
Jianxinnan Road, Jiang Bei District,
Chongqing, 400020, PEOPLE'S
REPUBLIC OF CHINA
Tel : [86]-(0)23-6777-5805
Fax : [86]-(0)23-6790-5542

Ningbo Office

Room 713, Building 2, Silver City
National, No 668 jingjia Road jiangdong
District, Ningbo, Zhejiang, 315040,
PEOPLE`S REPUBLIC OF CHINA
Tel : [86]-(0)574-2795-9198
Fax : [86]-(0)574-2795-9199

6■ South East Asia ■Suite C, 6th floor, Xingye Building, 89
Lianfeng Road, Changan Town,
Dongguan, PEOPLE'S REPUBLIC OF
CHINA
Tel : [86]-(0)769-8155-8299
Fax : [86]-(0)769-8155-5977

TOSHIBA MACHINE HONG KONG LTD.

TOSHIBA MACHINE SOUTH EAST ASIA
PTE. LTD. Head Office
No. 24 Tuas Avenue 4,
Singapore 639374, SINGAPORE
Tel : [65]-68611455
Fax : [65]-68612023

Kuala Lumpur Branch
70-G, Jalan SS21/62,
Damansara Utama, 47400 Petaling Jaya,
Selangor Darul Ehsan, MALAYSIA
Tel : [60]-(0)3-77297544
Fax : [60]-(0)3-77297545

Penang Office
No. 61, Jalan Prai Jaya 4,
Bandar Prai Jaya, 13600 Prai, Penang,
MALAYSIA
Tel : [60]-(0)4-3980086
Fax : [60]-(0)4-3989652

TOSHIBA MACHINE (THAILAND) CO., LTD.
127/28 Panjathanee Tower, 23rd Floor,
Nonthree Road, Khwaeng Chong
Nonthree, Khet Yannawa, Bangkok,
10120, THAILAND
Tel : [66]-(0)2-681-0158~61
Fax : [66]-(0)2-681-0162
URL:http://www.toshiba-machine.co.jp/
thailand

Chonburi Branch

Suite 1508, 15th Floor, Tower 3, China
Hong Kong City,
33 Canton Road, Tsim Sha Tsui,
Kowloon, HONG KONG
Tel : [852]-2735-1868
Fax : [852]-2735-1872

656 Sukumvit Road, Tambol Seansuk,
Ampur Muang, Chonburi 20130,
THAILAND
Tel : [66]-(0)38-341-670
Fax : [66]-(0)38-341-759

TOSHIBA MACHINE TAIWAN CO., LTD.

PT. TOSHIBA MACHINE INDONESIA

7F., No.168, Ruiguang Road,
Neihu District, Taipei, 114, TAIWAN
Tel : [886]-(0)2-2659-6558
Fax : [886]-(0)2-2659-6381

Galeri Niaga, JL. TB. Simatupang No.81,
Tanjung Barat, Jagakarsa, Jakarta Selatan,
12530, INDONESIA
Tel : [62]-(0)21-7884-8694
Fax : [62]-(0)21-7884-8689

■ North America ■■ Europe ■TOSHIBA MACHINE (VIETNAM) CO., LTD.
Head Office

TOSHIBA MACHINE COMPANY,AMERICA Head Office

TOSHIBA MACHINE (EUROPE)G.m.b.H.
Head Office

2nd Floor, VIT Tower, No. 519 Kim Ma
Street, Ngoc Khanh Ward, Ba Dinh
District, Hanoi, VIETNAM
Tel : [84]-(0)4-2220-8700~1
Fax : [84]-(0)4-2220-8702

755 Greenleaf Avenue,
Elk Grove Village, IL 60007, U.S.A.
Tel : [1]-847-593-1616
Fax : [1]-847-593-0897
URL http://www.toshiba-machine.com/

Ho Chi Minh Office

Los Angeles Office

Oskar-Messter-Strasse 22,85737 Ismaning, GERMANY
Tel : [49]-(0)89-9509499-0
Fax : [49]-(0)89-9509499-25
URL:http://www.toshiba-machine.co.jp/
europe9th Floor, Unit 9.7B, E-Town Building,
364 Cong Hoa Street, Ward 13, Tan Binh
District, Ho Chi Minh City, VIETNAM
Tel : [84]-(0)8-3810-8658
Fax : [84]-(0)8-3810-8657

1440 South Balboa Avenue,
Ontario, CA 91761, U.S.A.
Tel : [1]-909-923-4009
Fax : [1]-909-923-7258

TOSHIBA MACHINE (INDIA) PVT. LTD.
Head Office1578 Sussex Turnpike, Randolph,
NJ 07869, U.S.A.
Tel : [1]-973-252-9956
Fax : [1]-973-252-9959

5, LSC, C6&7, Vasant Kunj, New Delhi,
110070, INDIA
Tel : [91]-(0)11-4329-1111

Chennai Branch
Chennai-Bangalore Highway,
Chembarambakkam, Chennai, 600123,
INDIA
Tel : [91]-(0)44-2681-2000
Fax : [91]-(0)44-2681-0888

TOSHIBA MACHINE (CHENNAI)PRIVATE LIMITED
Chennai-Bangalore Highway,
Chembarambakkam, Chennai, 600123,
INDIA
Tel : [91]-(0)44-2681-2000
Fax : [91]-(0)44-2681-0303

New Jersey Office

U.K. Branch
66 Burners Lane, Kiln Farm,
Milton Keynes MK11 3HD
UNITED KINGDOMTel : [44]-(0)1908-562327
Fax : [44]-(0)1908-562348

Atlanta Office6478 Putnam Ford Drive, Suite#106, Woodstock, GA 30189, U.S.A.
Tel : [1]-678-494-8005
Fax : [1]-678-494-8006

TOSHIBA MACHINE COMPANY CANADA
LTD.
6 Shields Court, Suite 101, Markham,
Ontario, L3R 4S1, CANADA
Tel : [1]-905-479-9111
Fax : [1]-905-479-6098
URL http://www.toshibamachine.ca/

TOSHIBA MACHINEMANUFACTURING (THAILAND)
CO., LTD.
7/128 Moo 4, Tambol Mabyangporn,
Amphur Pluakdaeng, Rayong 21140,
THAILAND
Tel : [66]-(0)38-025812~3
Fax : [66]-(0)38-025811

7

Financial Review
CONSOLIDATED BALANCE SHEETTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2013ASSETS
Current assets:
Cash and deposits (Notes 12 and 16)
Marketable securities (Notes 6 ,12 and 16)
Notes and accounts receivable, trade (Note 12)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Deferred tax assets (Note 15)
Other current assets
Total current assets
Property, plant and equipment, net (Notes 7, 11 and 14)
Intangible assets
Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates
Other securities (Notes 6 and 12)Long-term loans
Deferred tax assets (Note 15)
Other investments
Total investments and other assets
Total assets

Millions of yen
2012
2013

Thousands of
U.S. dollars
2013¥21,328
17,00040,006(142)
39,864¥20,689
13,50045,730(173)
45,557$226,773
180,755
425,369(1,510)423,859

5,207
18,57067
23,844
3,178
1,627
106,841

5,008
21,287
81
26,376
3,158
1,895
111,175

55,364
197,449712
253,525
33,791
17,2991,136,002

19,83021,120210,845

400

434

4,253

9,198
5,240
93
65
572
15,168¥142,239

4,222
4,201
84
446
615
9,568
¥142,297

97,79955,715
989
691
6,082
161,276$1,512,376

See accompanying notes to financial statements.

8

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Notes 8, 12 and 14)
Current portion of long-term debt (Notes 8 and 12)
Notes and accounts payable, trade (Note 12)
Income taxes payable (Note 15)
Accrued expenses
Warranty reserve
Other current liabilities (Note 8)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 8 and 12)Long-term accounts payable, otherAccrued employees’ retirement benefits (Note 9)
Accrued directors’ retirement benefits
Asset retirement obligations
Deferred tax liabilities (Note 15)
Other long-term liabilities (Note 8)
Total long-term liabilities
Total liabilities
Contingent liabilities (Note 10)
Net assets:
Shareholders’ equity: (Note 21)
Common stock
360,000,000 shares
Authorized ––166,885,530 shares
IssuedAdditional paid-in capital
Retained earnings
Treasury stock, at cost (14,853,307 shares in 2013, 14,852,644 shares in 2012)
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge, net of tax
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

Millions of yen
2012
2013

Thousands of
U.S. dollars
2013¥10,759
6,100
21,999
2,642
5,629
584
5,275
52,988¥11,410700
30,676
2,616
5,562
351
5,041
56,356$114,397
64,859233,907
28,091
59,851
6,209
56,088563,402

—
14
8,411
53
52
1,273
48
9,851
62,839

6,100
42
8,238
50
51
324
35
14,84071,196—
149
89,431
564
553
13,535
510
104,742
668,144

12,485
19,60156,306(10,040)
78,352

12,485
19,60149,408(10,039)
71,455

132,749
208,410598,682(106,752)
833,0892,222(0)(1,174)
1,048
79,400¥142,239

1,530
(13)
(1,871)(354)
71,101¥142,297

23,626(0)(12,483)
11,143
844,232$1,512,376

See accompanying notes to financial statements.

9

CONSOLIDATED STATEMENT OF INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2013

Net sales
Cost of sales (Note 18)
Gross profit
Selling, general and administrative expenses (Notes 17 and 18)
Operating income
Other income:Interest and dividend income
Rent income
Foreign exchange gain

Equity in earnings of affiliates
Gain on sales of property, plant and equipment
Gain on sales of investments in affiliates
Gain on sales of investments in other security

OthersOther expenses and losses:
Interest expense
Loss on sales of notes receivable
Amortization of transitional obligation for
employees’ retirement benefits (Note 9)
Brand fee expense
Loss on disposal of property, plant and equipment
and intangible assets
Loss on impairment of fixed assets (Note 19)
Loss on devaluation of investment securities (Note 6)
OthersMillions of yen
2012
2013
¥119,519¥120,859
88,31287,294
31,20733,56523,79625,527
7,411
8,038

Thousands of
U.S. dollars
2013$1,285,051
928,166
356,885
271,420
85,465

201
180
685
1,736
5
2,495
—
254
5,556

198
2,866

2,137
1,914
7,283
18,45853
26,528—2,702
59,075

219
—

215
3

2,329
—

217
179
160
1,889
6
—
217

463

463

220

224

7

14

4,923

2,339

74

71
6
369
1,355
12,239

—
8
201
1,128
9,149

755
64
3,923
14,407130,133

Net income before minority interests
Net income

3,497
851
4,348
7,891
¥7,891

2,916
(488)
2,428
6,721
¥6,721

37,182
9,048
46,231
83,902$83,902

Net income per share of common stock (Note 23)

2013¥51.91

2012¥44.21

U.S. dollars
2013
$0.55

Income before income taxes and minority interests
Income taxes (Note 15)
Current
DeferredYen

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2013
Millions of yen
2012
2013
¥6,721¥7,891

Net income before minority interests
Other comprehensive income : (Note 20)

Thousands of
U.S. dollars
2013$83,902

Total comprehensive income

692
13
872
1,577
¥9,468

294
(14)
(161)
119
¥6,840

7,358
138
9,272
16,768$100,670

Total comprehensive income attributable to parent company’s interest
Total comprehensive income attributable to minority interests

9,468
¥—

6,840
¥—

100,670$—

Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge, net of tax
Foreign currency translation adjustments
Total other comprehensive income

See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2013
Millions of yen
Number ofsharesBalance at March 31, 2011 166,885,530

Common Additional Retained
stock
paid in capital earnings¥12,485¥19,601

Net income¥43,751

6,721

Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2012 166,885,530(1,064)
12,485

19,601

Net income

49,4087, 891
451

Change in scope of consolidation
Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2013 166,885,530(1,444)¥12,485¥19,601¥56,306$132,749$208,410

Net income$525,338

83,902

4,795

Change in scope of consolidation
Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2013(15,353)$132,749$208,410¥(10,039)¥1,236$598,682¥1¥(1,710)(0)(10,039)

6,721(1,064)
294

(14)

(161)

119

1,530

(13)

(1,871)

71,101
7,891
451

(1)

¥(10,040)¥65,325(0)(1)(1,444)692¥2,222Thousands of U.S. dollars

Common Additional Retained
stock
paid in capital earnings
Balance at March 31, 2012

Deferred gains orTreasury Unrealized gain on losses on hedge, Translation Total net
stock
securities, net of tax net of tax adjustments assets

13
¥(0)

697
¥(1,174)

1,402¥79,400

gains orTreasury Unrealized gain on Deferredlosses on hedge, Translation Total net
stock
securities, net of tax net of tax adjustments assets$(106,741)$16,268$(138)$(19,894)

83,902

4,795

(11)

$(106,752)$755,992(11)(15,353)
7,358

138

7,411

14,907$23,626$(0)$(12,483)$844,232

See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENT OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2013

Operating activities:
Income before income taxes and minority interests
Adjustments to reconcile income before income taxes and minority
interests to net cash provided by operating activities:
Depreciation
Allowance for doubtful receivables
Warranty reserve
Employees’ retirement benefit
Directors’ retirement benefit
Interest and dividend income
Interest expense
Loss on sales and disposal of property, plant and equipment and intangible assets
Gain on sales of investments in affiliates
Gain on sale of investments in other security
Equity in earnings of affiliates
Loss on impairment of fixed assets
Changes in operating assets and liabilities:
Notes and accounts receivable, trade
Inventories
Notes and accounts payable, trade
Advances received
Accrued expenses
Long-term accounts payable, other
Others
Sub totalInterest and dividend income received

Interest paid
Income taxes paid
OthersNet cash provided by operating activities
Investing activities:
Acquisition of investment in other security
Proceeds from sales of investments in other security

Acquisition of investment in unconsolidated subsidiaries
Proceeds from sales of investments in affiliates
Payments for contributions in capital of unconsolidated subsidiaries

Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Increase (decrease) in short- term loans receivable
Payments for long-term loans receivable
Repayments of long-term loans receivable
OthersNet cash used in investing activities
Financing activities:
Increase in short-term bank loans
Repayments for long-term loans payable

Purchases of treasury stock
Cash dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from change of scope of consolidation
Cash and cash equivalents at end of year (Note 16)

Millions of yen
2012
2013

Thousands of
U.S. dollars
2013¥12,239¥9,149$130,133

2,065
(16)
233
156
3
(201)
219
2
(2,495)—(1,736)
71

2,276
(91)
143
(201)
(6)
(217)
215
8
—
(217)
(1,889)—21,956
(170)
2,477
1,659
32
(2,137)2,329
21(26,528)—(18,458)
755

4,032
3,701
(8,718)
802
116
(28)
360
10,805406(210)(3,565)—
7,436(10,536)
(578)
3,336
(1,491)
940
(57)
590
1,374
242
(220)
(1,025)(3)368

42,87139,351(92,695)
8,527
1,233
(298)
3,828
114,886
4,317(2,233)(37,906)—
79,064——(5,092)
3,952—(1,041)
21
(38)
1
(24)
16
9
(2,196)

(100)
293
(28)
—
(24)
(1,122)
41
(64)
(0)
—
21
36
(947)

—
—
(54,141)
42,020—(11,069)
223
(404)
11
(255)
170
96
(23,349)

(823)
(700)
(1)
(1,444)(36)(3,004)885
3,121
34,1891,018¥38,328

698
(700)
(0)
(1,064)(28)(1,094)(151)(1,824)36,013—¥34,189(8,751)(7,443)(11)(15,353)(382)(31,940)
9,410
33,185363,519
10,824$407,528

See accompanying notes to financial statements.

12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES

1. Basis of Presenting Consolidated
Financial Statements
The accompanying consolidated financial
statements of TOSHIBA MACHINE CO., LTD. (the“Company”) and its consolidated subsidiaries areprepared on the basis of accounting principles
generally accepted in Japan, which are different
in certain respects as to the application anddisclosure requirements of International Financial
Reporting Standards, and are compiled fromthe consolidated financial statements preparedby the Company as required by the Financial
Instruments and Exchange Law of Japan. The
preparation of these financial statements requires
management to make estimates and assumptions
that affect the reported amounts of assets andliabilities and disclosure of contingent assets andliabilities at the dates of the consolidated financial
statements and the reported amounts of revenues
and expenses during the reporting periods. Actual
results could differ from these estimates.
The consolidated balance sheet, andconsolidated statements of income, changes
in net assets, cash flows and comprehensive
income incorporate certain reclassifications
and rearrangements in order to present thesestatements in forms which are more familiar toreaders of these statements outside of Japan. In
addition, the notes to the consolidated financial
statements include information which is not
required under accounting principles generally
accepted in Japan but is presented herein as
additional information.

2. Summary of Significant Accounting
Policies(a) Basis of consolidation and accounting forinvestments in unconsolidated subsidiaries andaffiliates
The consolidated financial statements include
the accounts of the Company and its consolidated
subsidiaries (together the “Companies”). Certain
immaterial subsidiaries are not consolidated, inwhich the investments are stated at cost.
All significant intercompany transactions andaccounts and unrealized intercompany profits
among consolidated entities are eliminated inconsolidation.
The cost in excess of underlying interest in net
assets of consolidated subsidiaries at the time ofacquisition, which is included in intangible assetsof the accompanying consolidated balance sheet,is deferred and amortized within the five-year
period.
Investments in affiliates (15 to 50 percentowned companies) in which the ability to exercise
significant influence exist, except immaterial
investments, are accounted for using the equity
method.
Immaterial investments in affiliates are statedat cost.
(b) Translation of foreign currencies
Monetary assets and liabilities denominated inforeign currencies are translated into Japanese
yen at the exchange rate prevailing at the balance
sheet dates except for those perfectly hedged byforward contracts, which are translated using thecontracted rate.
The foreign exchange gains and losses fromtranslation are recognized in the consolidated
statement of income to the extent that they are
not hedged by foreign exchange derivatives.
All assets and liabilities of foreign consolidated
subsidiaries are translated at the current rates
at the respective balance sheet dates and allincome and expense accounts are translated
at the current rates at end of the term. The
components of shareholders’ equity are translated
at their historical exchange rates. Differencesin transaction are directly charged to foreign
currency translation adjustments in net assets.
(c) Securities
Securities owned by the Companies have beenclassified into two categories, held-to-maturity
debt securities or other securities, in accordancewith the accounting standard for financial
instruments.
Held-to-maturity debt securities are carried atamortized cost. Marketable securities classified asother securities are carried at fair value with any
changes in unrealized gain or loss, net of income
taxes, directly included in net assets.
Non-marketable securities classified as othersecurities are carried at cost. Cost of securities
sold is determined by the moving average method.
(d) Inventories
Finished products and work in process arestated at the lower of cost, determined by theindividual identification method, or their net
realizable value. Raw materials and supplies arestated at the lower of cost, determined by themoving average method, or their net realizablevalue.

13(e) Allowance for doubtful receivables
The allowance for doubtful receivables isstated at the amount determined based on thedefault ratio sustained over a specific period in
the past and the estimated uncollectible amountdetermined based on the analysis of certain
individual accounts, including probable bad debts
and claims in bankruptcy.
(f) Warranty reserve
Warranty reserve has been provided forwarranty costs to be incurred during the warranty
period based on the historical experience.
(g) Employees bonuses
The bonuses to the employees are paid twice ayear and accrued based on the estimated amounts
incurred and to be paid in the subsequent period.
(h) Depreciation of property, plant and equipment(excluding leased assets)
Depreciation of buildings is principally
computed by the straight-line method anddepreciation of other property, plant andequipment is computed by the declining balancemethod over the estimated useful lives ofrespective assets, principally ranging from 3 - 60
years for buildings and structures, and from 3 - 22years for machinery, equipment and vehicles.
(i) Amortization of intangible assets
Computer software held for internal use isamortized by the straight-line method over the
relevant economic useful life (5 years). The otherintangible assets, including patent rights, areamortized by the straight-line method over theestimated useful lives of respective assets.
(j) Leased assets
Leased assets under finance lease transactions
that do not transfer ownership to the lessee aredepreciated by the straight-line method over thelease term with no residual value.
H o w e v e r, f i n a n c e l e a s e t r a n s a c t i o n s ,commencing on or before March 31, 2008, that
do not transfer ownership to the lessee, areaccounted for as operating lease transactions.
(k) Derivative financial instruments
All derivatives are stated at fair value. Gainsor losses arising from changes in fair value arecharged or credited to income for the period
in which they arise, except for derivatives thatare designated as hedging instruments. Gainsor losses arising from changes in fair value ofthe derivatives designated as cash flow hedging
instruments, net of the applicable income taxes,
are reported as a component of net assets.

14(l) Income taxes
The Companies accrue current income taxes
based on taxable income.
The Companies include many temporary
difference items for financial reporting purpose
which, in the case of expenses, are not currently
deductible and in the case of income, are notcurrently taxable.
Income tax effects on such temporary
differences between tax and financial reporting
purposes are reflected as deferred income taxes
in the consolidated financial statements using theasset and liability method.
(m) Employees’ retirement benefits
Accrued employees’ retirement benefits areprovided based on the projected retirement
benefit obligation and the fair value of plan assets
at year-end.
The unrecognized transitional obligation is
being amortized over 15 years. Actuarial gainor loss is amortized by the straight-line method
over the average remaining years of service of
employees.
(n) Directors’ retirement benefits
Domestic consolidated subsidiaries accrue
an estimated amount calculated in accordancewith its internal rule for retirement benefits for
directors.
(o) Amounts per share of common stock
Net income per share is computed based on theweighted-average number of shares of common
stock outstanding during a year.
Diluted net income per share is not presented
since the Company has never issued any securities
with a dilutive effect, such as bonds with warrants
and convertible bonds. Cash dividends per
share represent the actual amount declared as
applicable to the respective years.
(p) Cash equivalents
In preparing the consolidated statementof cash flows, cash on hand, readily available
deposits and short-term highly liquid investmentswith maturities of not exceeding three months at
the time of purchase are considered to be cash
and cash equivalents.
(q) Reclassifications
Certain accounts in the consolidated financial
statements as of and for the year ended March 31,
2012 have been reclassified to conform to the year
ended March 31, 2013 presentation.

3. U.S. Dollar Amounts
U.S. dollar amounts are included solely for the convenience of the readers and have been translated
at the rate of ¥94.05=U.S.$1, the approximate exchange rate prevailing in the Japanese foreign exchange
market on March 31, 2013. This translation should not be construed as a representation that the yenamounts actually represent, have been, or could be converted into U.S. dollars.

4. Accounting Changes(a) Changes in method of depreciation of property, plant and equipment
Effective from the year ended March 31, 2013, upon the amendment to the Corporation Tax Law ofJapan, the Company and its domestic consolidated subsidiaries changed their method of depreciation
to the depreciation method permitted under the Corporation Tax Law of Japan after amendment for
property, plant and equipment acquired on or after April 1, 2012.
The effect of the adoption of this changes is immaterial for the year ended March 31, 2013.

5. Accounting Standards issued but not yet applied(a) Accounting standard for Retirement Benefits (ASBJ Statement No.26, issued May 17, 2012) and Implementation
Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No.25, issued May 17, 2012)① Overview
Under the revised accounting standard, actuarial gain or loss and prior service cost should berecognized in net assets on the consolidated balance sheet, after adjustment tax effects, and thefunding deficit or surplus should be recognized as liability or asset. The new accounting standard permit
a choice for the method of attributing expected benefits to periods of either the straight line bases orplan’s benefit formula basis. In addition, the determination method of discount rate was amended.
② Application due date
The revised accounting standard is effective at the end of the fiscal year ending March 31, 2014,
except for the amendment of the calculation method for present value of defined benefit obligationand current service costs which is effective at the beginning of the fiscal year ending March 31,
2015. In addition, the revised accounting standard is not retrospectively applied to the prior year’s
financial statements.
③ The effect of the adoption
The effect of the adoption of the revised accounting standard to the accompanying consolidated
financial statements will be significantly affecting, mainly, other comprehensive income or loss on
the consolidated balance sheet will due to recognition of unrecognized actuarial gain or loss. The
amount of this effect is now under assessment.

6. Securities
Information regarding marketable securities classified as other securities included in investment
securities were as follows:

Equity securities

Equity securities

Acquisition
cost¥1,712¥1,712

2013
Carrying
value¥5,072¥5,072Millions of yen
Unrealized Acquisition
gains
cost
¥1,716¥3,360¥1,716¥3,3602012
Carrying
value¥4,031¥4,031

Unrealized
gains¥2,315¥2,315

Thousands of U.S. dollars
2013
Acquisition Carrying Unrealized
cost
value
gains
$18,203$53,929$35,726$18,203$53,929$35,726

15

Losses on devaluation of marketable equity securities for the years ended March 31, 2013 and 2012were ¥4 million ($43 thousand) and ¥8 million, respectively.
Negotiable certificates are classified as non-marketable securities of deposit of ¥17,000 million ($180,755
thousand) and ¥13,500 million as of March 31, 2013 and 2012, respectively. Non-marketable equity securities
as other securities primary consist of ¥168 million ($1,786 thousand) and ¥170 million as of March 31, 2013
and 2012, respectively. Losses on devaluation of non-marketable equity securities as other securities for theyear ended march 31, 2013 was ¥2 million ($21 thousand).

7. Property, Plant and Equipment
Property, plant and equipment at March 31, 2013 and 2012 consisted of the following:

Land
Buildings and structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Lease assets
Construction in progress
Less accumulated depreciation

Millions of yen
2012
2013
¥6,203¥6,19334,24834,387
29,832
29,520
388
389
6,895
7,159
140
191
188
39
77,89477,878(56,774)(58,048)¥21,120¥19,830

Thousands of
U.S. dollars
2013$65,848
365,625
313,876
4,136
76,1192,030
415
828,049(617,204)$210,845

Depreciation expense for the years ended March 31, 2013 and 2012 were ¥2,065 million ($21,956 thousand) and ¥2,276 million, respectively.

8. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding on March 31, 2013 and2012 ranged principally from 0.66% to 2.82% and 0.61% to 5.94%, respectively. Long-term debt on March
31, 2013 and 2012 consisted of the following:
Millions of yen
2012
2013
Loans, principally from Japanese banks and insurancecompanies maturing 2013, interest 0.93 % - 1.95 %Less current portion¥6,100
6,100
6,100
¥—

¥6,8006,800
700¥6,100Thousands of
U.S. dollars
2013$64,859
64,85964,859$—The aggregate annual maturities of long-term debt at March 31, 2013 were as follows:Year ending March 31
2014
2015
2016
2017
2018 and later
Total

16

Millions of yen¥6,100————¥6,100Thousands of
U.S. dollars$64,859————$64,859

The aggregate annual maturities of finance lease obligations at March 31, 2013 were as follows:
Millions of yen
¥32
21
17
8
1
¥79

Year ending March 31
2014
2015
2016
2017
2018 and later
Total

Thousands of
U.S. dollars
$340
223
181
85
11
$840

9. Employees’ Retirement Benefits(a) Overview
The severance indemnity regulations of the Company and certain subsidiaries provides for benefit payments based on the employees’ current basic rate of pay and length of service.
The Company and certain subsidiaries have a non-contributory funded pension plan for employees. The
Company and certain subsidiaries pay the full cost of the benefits to a trust bank which act as the trustees.
One domestic consolidated subsidiary have joined the pension fund of a comprehensive funding

Amount of pension assets
Amount of obligation
Difference

Premium contribution percentage of the company as apercentage of the whole system

Millions of yen
2012
2013
¥258,978¥254,797
300,201
299,366¥(41,221)¥(44,569)
2013

2012

0.565%

0.518%

Thousands of
U.S. dollars
2013$2,709,165
3,183,052$(473,887)(b) Projected benefit obligation
The liability for employees’ retirement benefits at March 31, 2013 and 2012 consisted of the following:

Projected benefit obligation
Fair value of plan assets
Unfounded status
Unrecognized transitional obligation
Unrecognized actuarial loss
Accrued retirement benefits obligation

Millions of yen
2012
2013
¥13,752¥14,666(3,452)(3,902)
10,30010,764(1,389)(926)(673)(1,427)¥8,238¥8,411Thousands of
U.S. dollars
2013$155,938(41,488)
114,450(9,846)(15,173)$89,431

Certain consolidated subsidiaries have adopted the conventional method in calculating their projected
benefit obligation.

17

(c) Benefit costs
The components of net periodic benefit costs for the years ended March 31, 2013 and 2012 were as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Recognized actuarial loss
Periodic benefit costs
Defined contribution plan premium
Total(d) Bases of calculation for projected benefit obligation① Period allocation method of estimate benefit payment
Period straight-line method② Discount rate

Millions of yen
2012
2013
¥733
¥683
221
218
(60)
(62)
463
463
70
109
¥1,427¥1,411
177
177¥1,604¥1,588

2013
1.1%

2012
2.0%

③ Expected rate of return on plan assets

2013
2.0%

2012
2.0%

④ Amortization period of actuarial loss/gain

2013
10 years

2012
10 years⑤ Amortization period of transitional obligation

2013
15 years

2012
15 yearsThousands of
U.S. dollars
2013$7,262
2,318
(659)
4,923
1,159
$15,003
1,882$16,885

10. Contingent Liabilities
On March 31, 2013, contingent liabilities for loans guaranteed by the Company, principally on behalf of
non-consolidated subsidiaries and affiliated companies, amounted to ¥619 million ($6,582 thousand).

11. Leases
The Companies adopted the amended “Accounting standard for lease transactions”. However, financeleases of the Companies other than those where ownership of the leased assets is transferred to the lessee,
commencing on or before March 31, 2008 continue to be accounted for as operating leases. The following
pro forma amounts represent the acquisition costs, accumulated depreciation and net book value of theleased assets accounted for as operating leases at March 31, 2013 and 2012, which would have been reflected in the consolidated balance sheet if these arrangements had been accounted for as finance leases:

Acquisition Costs
Machinery, equipment and vehicles
Tools, furniture and fixtures
Less-Accumulated depreciation
Net book value

18

Millions of yen
2012
2013
¥273
¥169
399
328
(631)
(494)
¥41
¥3

Thousands of
U.S. dollars
2013$1,797
3,488(5,253)$32

Future lease payments (including the interest portion thereon) subsequent to March 31, 2013 and 2012
for finance leases accounted for as operating leases were as follows:
Thousands of
U.S. dollars
Millions of yen
Due within one year
Due after one year
Total

2013
¥3
—
¥3

2012
¥38
3
¥41

2013
$32
—
$32

Periodic lease expenses, as a lessee, charged to income for the years ended March 31, 2013 and 2012were ¥39 million ($415 thousand) and ¥97 million, respectively. The pro forma amounts of depreciation
for the years ended March 31, 2013 and 2012 would be calculated at ¥39 million ($415 thousand) and ¥97
million by using the straight-line method over the lease term with no salvage value.

12. Financial Instruments
Overview(a) Policy for financial instruments
The Companies invest in short-term deposits for fund management, where temporally cash surplus isinvested in low-risk financial instruments. The Companies raise a fund by bank borrowings. The Companies
use derivatives only to reduce risk, and don’t use derivatives for speculative trading purposes.
(b) Contents of financial instruments, related risk and risk management system
Operating receivables such as notes and accounts receivable, trade are exposed to customer credit risk.
The Companies try to reduce this risk by the Companies’ sales management rules. Investments, consistingof marketable securities of corporations, are exposed to stock price fluctuation risk in market. To address
this risk, the Companies monitor their stock price in every quarter. Operating payables such as notes andaccounts payable, trade are almost due within six months. Debts are mainly used in normal operations
and capital investments. The maturity date of the debts is up to 2 years from the balance sheet date at the
maximum.
Derivative transactions consist of foreign exchange forward contracts used for the purpose of hedging
foreign exchange risk associated with certain assets and liabilities denominated in foreign currency, andare managed under the internal management policies, to the extent deemed necessary. Note 13. Derivative Financial Instruments explains hedge accounting, hedging instruments and methods, hedging policy,
hedge items and assessment of hedge effectiveness.
The Finance Department of the Companies prepares and updates its cash flow plan to manage liquidity
risk. A part of bank borrowings are subject to terms of financial covenants. If the Companies violate theterms of financial covenants, the terms of borrowings may be possibly revised.
The terms of financial covenants incident to syndicated loan (¥5,600 million ($59,543 thousand) at
March 31, 2013) contract are as follows:① March 31 and September 30 every year, the Company must keep the amount of net assets in the
consolidated balance sheet over ¥50,949 million ($541,722 thousand).
② In the consolidated statement of income for the fiscal year ending March 31, the Company must notrecord operating loss for the two consecutive years.
(c) Supplemental information on the fair value of financial instruments
Fair value of financial instruments are calculated based on market prices, or by using reasonable estimates when market prices are not available. These estimates include variable factors, and are subject
to fluctuation due to the change in underlying assumptions. The contract amounts of derivatives are discussed in Note 13. Derivative Financial Instruments below are not an indicator of the market risk associated with derivative transactions.

19Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2013 and 2012, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen
2012
2013
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and deposits¥—¥21,328 ¥21,328¥ — ¥20,689 ¥20,689
Notes and accounts receivable, trade45,724(6)
40,00640,000(6) 45,730
Marketable securities and investment securities
21,35629,994
8,638
25,97032,618
6,648¥8,632¥87,304 ¥93,946¥6,642 ¥87,775 ¥96,407
Total assets
Short-term bank loans¥—¥16,859 ¥16,859¥ — ¥12,110 ¥12,110
Notes and accounts payable, trade30,67630,676—21,99921,999—Long-term debt
6,100
6,100
(0)
—
—
—
¥(0)
¥38,858 ¥38,858¥ — ¥48,886 ¥48,886
Total liabilities
Derivatives
¥(20)
¥(20)
¥—
¥(0)
¥(0)
¥—
Thousands of U.S. dollars
2013
Carrying value Fair value Difference
Cash and deposits$226,773 $226,773$—
Notes and accounts receivable, trade425,369 425,306(63)
Marketable securities and investment securities 276,130 346,815
70,685$928,272 $998,894 $70,622
Total assets
Short-term bank loans$179,256 $179,256$—
Notes and accounts payable, trade
233,907 233,907—
Long-term debt———
$413,163 $413,163$—
Total liabilities
Derivatives
$(0)
$(0)
$—

*Derivatives are presented as net amounts receivable or payable with net amounts payable in parentheses.
(a) Method for calculating fair value of financial instruments, short-term investments and derivativetransactions① Cash and deposits
The carrying value approximate fair value because these are due within short-term.
② Notes and accounts receivable, trade
The amount of notes and accounts receivable, trade is classified based on certain terms and discounted using a rate which reflects safety interest and credit risk
Marketablesecurities and investment securities③
For negotiable certificate of deposit, the carrying value approximate fair value because it is due
within short-term.
Investment securities are based on quoted market prices.
④ Short-term bank loans; ⑤ Notes and accounts payable, trade
The carrying value approximate fair value because these are due within short-term.
⑥ Long-term debt
The fair value of long-term debt is determined based on the present value of principles and interest,
discounted by the interest rate that would be applied if similar new borrowings were entered into.
⑦ Derivatives
Please refer to Note 13. Derivative Financial Instruments.

20(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2013 and 2012were as follows:
Thousands ofMillions of yen
U.S. dollars
2013¥5,469Investment securities for which the market prices are not available

2012
¥567

2013
$58,150

Market prices don’t exist for these items, or the cost of estimating cash flow is considered prohibitive.
These items are not included in ③ Marketable securities and investment securities in the above, because
their fair value are not readily determinable.
(c) The aggregate annual maturities of financial assets at March 31, 2013 and 2012 were as follows:
Millions of yen

Cash and deposits
Notes and accounts receivable, tradeMarketable securities and investment securities:
Negotiable certificate of deposit
Total

2012
2013
Due within Due after one Due after five Due after Due within Due after one Due after five Due after
one year year through years through ten years one year year through years through ten years
five years
ten years
five years
ten years¥—¥—¥—¥21,319¥—¥—¥ — ¥20,680
520——
39,839167—— 45,210
17,000¥78,158

—
¥167

—
¥—

— 13,500¥ — ¥79,390

—
¥520

—
¥—

—
¥—

Thousands of U.S. dollars
2013
Due within Due after one Due after five Due after
one year year through years through ten years
five years
ten years
Cash and deposits$226,677$—$—$—
Notes and accounts receivable, trade 423,594
1,775
—
—
Marketable securities and investment securities:
Negotiable certificate of deposit 180,755———$831,026 $1,775
$—
$—
Total

(d) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2013

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2012

Short-term bank loans
Long-term debt
Total

Millions of yen
Due within Due after one Due after two Due after three Due after four Due after
one year year through years through years through years through five years
two years three years four years
five years¥10,759
¥—
¥—
¥—
¥—
¥—
6,100
—
—
—
—
—
¥16,859
¥—
¥—
¥—
¥—
¥—
Millions of yen
Due within Due after one Due after two Due after three Due after four Due after
one year year through years through years through years through five years
two years three years four years
five years¥11,410
¥—
¥—
¥—
¥—
¥—
700
6,100
—
—
—
—
¥12,110 ¥6,100
¥—
¥—
¥—
¥—

21

Year ended March 31, 2013

Short-term bank loans
Long-term debt
Total

Thousands of U.S. dollars
Due within Due after one Due after two Due after three Due after four Due after
one year year through years through years through years through five years
two years three years four years
five years$114,397
$—
$—
$—
$—
$—
64,859—————$179,256
$—
$—
$—
$—
$—

13. Derivative Financial Instruments
The Company has entered into derivative transactions (foreign exchange contract, interest rate swap
and currency option transaction) in order to manage certain risks arising from adverse fluctuations in foreign currency exchange rate and in interest rate. The Company doesn’t hold or issue derivative financial
instruments for the purpose of speculative trading. Derivative transactions are entered into by the Finance
Department under the rules approved by the Board of Directors. Derivative transactions are inspected validity of the operation by the Corporate Auditing Office.
Derivatives designated as hedging instruments at March 31, 2013 and 2012 were as follows:
Millions of yen

Hedged item

2012
2013
Contract Contract amount Fair value Contract Contract amount Fair value
amount due after one
amount due after one
year
year

Accounting in principle
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars¥—
accounts receivable
Euro—
British pound
7
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
3,266
accounts receivable
Euro
4
Canadian dollars
194
To buy foreign currencies:
accounts payable
557
U.S. dollars¥4,028
Total

22

¥—
—
—

¥—
—
(0)

¥375
1
—

¥—
—
—

¥(20)
0
—

—
—
—

—
—
—

4,968
47
123

—
—
—

—
—
—

400
—
¥ — ¥5,914

—
¥—

—
¥—

—
¥—

Hedged item

Thousands of U.S. dollars
2013
Contract Contract amount Fair value
amount due after one
year

Accounting in principle
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars$—
accounts receivable
Euro—
British pound74
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
34,726accounts receivable
Euro
43
Canadian dollars
2,063
To buy foreign currencies:
accounts payable
5,922
U.S. dollars$42,828
Total

$—
—
—

$—
—
—

—
—
—

—
—
—

—
$—

—
$—

14. Pledged Assets
The following assets were pledged as collateral at March 31, 2013 and 2012 to secure short-term bankloans amounting to ¥2 million ($21 thousand). (See Note 8):Land
Machinery and equipment, net
Buildings and structures, net
Total

Millions of yen
2012
2013
¥581
¥581
13
2
2,040
1,840
¥2,634¥2,423Thousands of
U.S. dollars
2013$6,17821
19,564$25,763

15. Income Taxes
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries generallycomprise Corporation Tax, Enterprise Tax and Prefectural and Municipal Inhabitants Taxes. The statutory
tax rates for the years ended March 31, 2013 and 2012 were 37.2% and 39.7%, respectively.

23

The reconciliation between the statutory rate and effective tax rate of income taxes for the year ended
March 31, 2012 was as follows:
2012
39.7%
0.4
(0.4)
0.6
(3.3)
(9.7)
(6.9)
(0.9)
7.5
(0.5)
26.5%

Statutory tax rate
Per-capita portion of inhabitant tax
Permanently non-taxable revenue
Permanently non-deductible expenses
Effects of elimination
Utilization of tax loss carry forwards
Change in valuation allowance
Difference in tax rates of consolidated subsidiaries
Effect of amount of deferred tax assets by tax rate change
Other
Effective tax rate

Reconciliation between the statutory tax rate and the effective tax rate for the year ended March 31,
2013 is not presented, because the difference between the statutory rate and effective tax rate of income
taxes less than 5%.
The significant components of deferred tax assets and liabilities at March 31, 2013 and 2012 were as
follows:
Millions of yen
2012
2013
Deferred tax assets:
Accrued employees’ bonuses
Allowance for doubtful receivables
Devaluation of inventories
Devaluation of securities
Accrued employees’ retirement benefits
Amount not shifted to defined contribution pension plan
Unrealized intercompany profit on inventories
Enterprise tax payable
Other
Total deferred tax assets
Valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Deferral of gain on sale of fixed assets
Unrealized gain on securities
Asset retirement obligations
Foreign consolidated subsidiaries’ retained earning
Total deferred tax liabilities
Net deferred tax assets

24

Thousands of
U.S. dollars
2013

¥921
64
518
382
2,976
10
592
208
2,098
¥7,769(4,132)¥3,637

¥972
21
655
455
2,942
21
359
37
2,043
¥7,505(3,098)¥4,407$9,793
680
5,508
4,062
31,643
106
6,295
2,212
22,306$82,605(43,934)$38,671(137)(1,138)(7)(385)¥(1,667)¥1,970

(144)
(785)
(7)
(191)
¥(1,127)¥3,280(1,457)(12,100)(74)(4,093)$(17,724)$20,947

16. Cash and Cash Equivalents
Reconciliation between cash and time deposits in the consolidated balance sheets and cash and cash
equivalents in the consolidated statements of cash flows at March 31, 2013 and 2012 were presented asfollows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2012
2013
¥20,689¥21,328
13,50017,000¥34,189¥38,328

Thousands of
U.S. dollars
2013$226,773
180,755$407,528

17. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2013
and 2012 were as follows:

Sales commission
Delivering expenses
Provision for warranty reserve
Personnel-expenses
Retirement benefit expense
Depreciation
Rent expenses
Traveling expenses
Research and development expenses
Outside order expenses
Others
Total

Millions of yen
2012
2013
¥2,109¥2,268
3,181
3,462
306
515
9,814
10,501
545
559
590
599
689
743
1,110
1,302
1,052
1,064
400
495
4,000
4,019
¥23,796¥25,527

Thousands of
U.S. dollars
2013$24,115
36,8105,476
111,653
5,944
6,369
7,900
13,844
11,313
5,263
42,733$271,420

18. Research and Development Costs
Research and development costs charged to income were ¥1,566 million ($16,651 thousand) and ¥1,582 million for the years ended March 31, 2013 and 2012, respectively.

19. Loss on Impairment of Fixed Assets
Grouping of assets is based on the business units, except for idle asset, which is grouped individually.
Loss on impairment of fixed assets for the year ended March 31, 2013 amounted to ¥71 million ($755 thousand).
The recoverable value of assets was calculated based in their estimated future cash flows, except landand buildings, for which the recoverable value was calculated by the market value.

25

The loss on impairment of fixed assets for the year ended March 31, 2013 consisted of the following:
Millions of yen
2013
Numazu-shi, Shizuoka-ken, Japan:
Buildings and structures
Machinery and equipment
Sub total
Itami-shi, Osaka-fu, Japan:
Land
Buildings
Sub total
Fukuoka-shi, Fukuoka-ken, Japan:
Land
Buildings
Sub total
Otsu-shi, Shiga-ken, Japan:
Land
Total

Thousands of
U.S. dollars
2013

Idle property
Idle property

¥50
0
50

$531
0
531

Idle property
Idle property

3
9
12

32
96
128

Idle property
Idle property

2
7
9

21
75
96

Idle property

0
¥71

0
$755

20. Other comprehensive income
The components of other comprehensive income for the years ended March 31, 2013 and 2012 were as
follows:
Millions of yen
2012
2013
Unrealized holding gain on securities:
Current period changes in unrealized gain (loss)
Reclassification adjustment
Total unrealized holding gain on securities before tax effects
Tax effects
Unrealized holding gain on securities, net of tax effects
Deferred gains or losses on hedge:
Current period changes in unrealized gain (loss)
Total deferred gains or losses on hedge, before tax effects
Tax effects
Deferred gains or losses on hedge, net of tax effects
Foreign currency translation adjustments:
Current period changes
Total other comprehensive income

Thousands of
U.S. dollars
2013¥1,042
3
1,045
(353)
692

¥509
(209)
300
(6)
294

$11,079
32
11,111(3,753)
7,358

20
20
(7)
13

(22)
(22)
8
(14)

213
213
(75)
138

872
¥1,577

(161)
¥119

9,272
$16,768

21. Shareholders’ Equity
The Corporation Law of Japan (the “Law”), which went into effect on May 1, 2006, provides that an
amount equal to 10% of the amount to be distributed as distribution of additional paid in capital (otherthan the capital reserve) and retained earning (other than the legal reserve) be transferred to the capitalreserve and legal reserve, respectively, until the sum of the capital reserve and legal reserve equals 25% of
the common stock account. Such distributions can be made at any time by resolution of the shareholders,or by the Board of Directors if certain conditions are met, but neither the capital reserve nor the legal re-26

serve is available for distributions.

22. Related Party Transactions
During the years ended March 31, 2013 and 2012, the Companies had operational transactions with
Toshiba Corporation, a 22.1% shareholder of the Company.
A summary of the significant transactions with Toshiba Corporation for the years ended March 31, 2013
and 2012 were as follows:
Millions of yen
2012
2013
For the years ended March 31:
Payment of brand fee
Sales of investments in affiliates
Gain on sales of investments in affiliates

¥220
3,952
2,495

¥224
—
—

Thousands of
U.S. dollars
2013$2,33942,02026,528

Note: Brand fee rate was contracted beforehand.
Sales price of investment in affiliates was determined based on the market priceDuring the year ended March 31, 2012, the Companies had operational transaction with Toshiba Machine (Thailand) Co., Ltd, a 100% unconsolidated subsidiary. From the year ended March 31, 2013, Toshiba Machine (Thailand) Co., Ltd has included the Companies.
A summary of the significant transactions with Toshiba Machine (Thailand) Co., Ltd. for the years ended March 31, 2012 was as follows:
Millions of yen
2012
For the year ended March 31:
Notes and accounts receivable, trade¥1,761

Note: Trading prices were market prices.
During the years ended March 31, 2013 and 2012, the Companies had operational transactions with NuFlare Technology, Inc., a 15.1% and 21.3% affiliate of the Company.
A summary of the significant transactions with NuFlare Technology, Inc. for the years ended March 31,
2013 and 2012 were as follows:
Millions of yen
2012
2013
For the years ended March 31:
Rent income for land, buildings and structures

¥120

¥120

Thousands of
U.S. dollars
2013$1,276

Note: Rent price was market price.

23. Net Income and Net Assets per Share
Net income and net assets per share for the years ended March 31, 2013 and 2012 were as follows:

Net income per share
Net assets per share2013¥51.91522.26Yen

2012¥44.21467.67

U.S. dollars
2013
$0.55
5.55

Basic information for calculation of net income per share was as follows:

Weighted-average number of shares of common stockThousands of shares
2012
2013
152,034
152,032

27

Net income
Net income not applicable to shareholders of common stock
Net income applicable to shareholders of common stock

Millions of yen
2012
2013
¥6,721¥7,891——¥6,721¥7,891Thousands of
U.S. dollars
2013$83,902—$83,902

Basic information for calculation of net assets per share was as follows:

Number of shares at year-end

Thousands of shares
2012
2013
152,033
152,032

Net assets
Minority interests in consolidated subsidiaries
Net assets applicable to shareholders of common stock

Millions of yen
2012
2013
¥71,101¥79,400——¥71,101¥79,400

Thousands of
U.S. dollars
2013$844,232—$844,232

24. Segment Information(A) General information about reportable segments
The reportable segments of the Companies are the business units for which the Company is able to obtain respective financial information separately in order for Executive Officer to conduct periodic investigation to determine distribution of management resources and evaluate their business results.
The Companies’ business is classified into certain segments based on the type of products and services.
The Companies’ segments are categorized into the following three reportable segments, “Molding Machinery”, “Machine Tools” and “Hydraulic Equipment” based on the similarities of economical nature, contents
and manufacturing method:
Molding Machinery: Injection molding machines, Die casting machines, Plastic extrusion
Machine Tools: Large size machine tools, Portal type machine tools, Machining centers, Horizontal boring machines, High-precision machines
Hydraulic Equipment: Hydraulic motors, Control valves, Piston pumps(B) Basis of measurement for reportable segment profit or loss, segment assets and other material items
The accounting treatment method for the reportable business segment is generally the same as described in “2. Summary of Significant Accounting Policies”. Reportable segment income is calculated on
the basis of operating income. The prices of intersegment transactions and transfers are calculated basedon the market prices.

28

(C) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2013 and 2012 wereas follows:Year ended March 31, 2013

Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure

Millions of yen
Reportable segments
Other Products
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment¥73,189—
73,189¥6,083¥64,948¥28,90263
28,965¥1,823¥37,038

¥907
295

¥484
138

¥9,750 ¥111,841
73
136
9,823 111,977¥(112)¥7,794¥6,519 ¥108,505
¥448
129

¥1,839562

Total

Adjustments Consolidated¥9,018 ¥120,859
2,487
2,623
11,505 123,482¥(173)¥7,621¥15,154 ¥123,659¥ — ¥120,859(2,623)—(2,623) 120,859¥417¥8,038¥18,580 ¥142,239

¥226
208

Reportable segments
Other products
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment

Year ended March 31, 2013

Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure¥——¥2,065
770

Millions of yen

Year ended March 31, 2012

Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure¥2,065
770¥65,727—
65,727¥4,396¥66,963¥28,839130
28,969¥1,451¥33,941¥1,018
213

¥585
183

¥13,854 ¥108,420
233
363
14,087 108,783¥1,040¥6,887¥7,806 ¥108,710
¥388
559

¥1,991
955

Total

Adjustments Consolidated¥11,099 ¥119,519
2,570
2,933
13,669 122,452¥189¥7,076¥19,415 ¥128,125¥ — ¥119,519(2,933)—(2,933) 119,519¥335¥7,411¥14,172 ¥142,297

¥285
97

¥2,276
1,052

Thousands of U.S. dollars
Reportable segments
Other products
Total
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment$778,192—
778,192$64,677$690,569$307,305669
307,974$19,383$393,812$9,644
3,137$5,146
1,467$103,668 $1,189,165
777
1,446
104,445 1,190,611$(1,190) $82,870$69,314 $1,153,695$4,763
1,372$19,553
5,976$95,886 $1,285,051
26,443
27,889122,329 1,312,940$(1,839) $81,031$161,127 $1,314,822$2,403
2,211$21,956
8,187

¥—
—

¥2,276
1,052

Adjustments Consolidated$ — $1,285,051(27,889)—(27,889) 1,285,051$4,434$85,465$197,554 $1,512,376$——$21,956
8,187

Note: “Other products” is a business segment that is not included in reportable segments. It included
business activities of electronic controls, etc.

29

(D) Difference between total reportable segments and consolidated financial statements
The main differences between total reportable segments and consolidated financial statements for theyears ended March 31, 2013 and 2012 were as follows:
Sales
Total reportable segments
Other products
Eliminations
Net sales on consolidated financial statements

IncomeTotal reportable segments
Other products
Eliminations
Operating income on consolidated financial statements

AssetsTotal reportable segments
Other productsCompany-wide assets
Eliminations
Net assets on consolidated financial statements

Millions of yen
2012
2013
¥108,783¥111,977
13,66911,505(2,933)(2,623)¥119,519¥120,859

Thousands of
U.S. dollars
2013$1,190,611
122,329(27,889)$1,285,051

Millions of yen
2012
2013
¥6,887¥7,794
189
(173)
335
417
¥7,411¥8,038

Thousands of
U.S. dollars
2013$82,870(1,839)4,435$85,466

Millions of yen
2012
2013
¥108,710¥108,505
19,41515,154
20,27821,689(6,106)(3,109)¥142,297¥142,239

Thousands of
U.S. dollars
2013$1,153,695
161,127
230,611(33,057)$1,512,376

Note: Company-wide assets are mainly cash and cash equivalents, securities and investment securities
that don’t belong to the reportable segments(E) Related segment information① Information about products and services
Information about products and services is not disclosed because reportable segment information isbased on products and services.
② Information about geographical areas
Sales information about geographical areas for the years ended March 31, 2013 and 2012 were follows:Japan¥46,293

Millions of yen
2013
North America
Asia¥17,451¥54,454

Other¥2,661

Total¥120,859

Japan¥52,642Millions of yen
2012
North America
Asia¥10,918¥52,695

Other¥3,264

Total¥119,519

Japan$492,217

Thousands of U.S. dollars
2013North America
Asia
Other
$185,550$578,990$28,294

Total$1,285,051

Note: Sales figures are classified based on the customer locations.

30

Property, plant and equipment information about geographical areas for the years ended March 31,
2013 and 2012 were follows:Japan¥18,758

Millions of yen
2013
North America
Asia
¥188
¥884

Total
¥19,830Japan¥20,098

Millions of yen
2012
North America
Asia
¥177
¥845

Total
¥21,120

Japan$199,447

Thousands of U.S. dollars
2013North America
Asia$1,999$9,399

Total$210,845③ Information about major customers
Information about major customers is not disclosed, because net sales to any customer did not exceed 10% of the consolidated net sales for the years ended March 31, 2013 and 2012.
(F) Information about impairment loss on long-lived assets for each reportable segment
Information about impairment loss on long-lived assets for the years ended March 31, 2013 was follows:

Molding
Machinery¥—

Molding
Machinery$—

Machine Tools¥—

Machine Tools$—

Millions of yen
2013
Hydraulic
Other products
Equipment¥—¥71
Thousands of U.S. dollars
2013
Hydraulic
Other products
Equipment$—$755

Adjustments

Total

¥—

¥71

Adjustments

Total

$—

$755

There was no applicable matter for the years ended March 31, 2012.
(G) Information about amortization of goodwill and unamortized balance for each reportable segment
There was no applicable matter for the years ended March 31, 2013 and 2012.
(H) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2013 and 2012.

25. Subsequent Event
Cash Dividends
The following appropriations of retained earnings, which have not been reflected in the accompanying
consolidated financial statements for the year ended March 31, 2013, were approved at the meeting of theBoard of Directors held on April 30, 2013:
Cash dividends (¥4.50 = $0.05 per share) ¥684 million ($7,273 thousand)31

Report of Independent Auditors

32

Directors & Audit and Supervisory Board Members

Directors President and Chief Executive Officer

Yukio Iimura
Diector and Senior Managing Executive Officer
Yoshihiro Kishimoto
Directors and Managing Executive Officers
Satoshi Hironaka
Shigetomo Sakamoto
Directors and Executive Officers
Masayuki Yagi
Makoto Tsuji
Kazuo Takamura
Katsuo Ito
Outside Directors
Kan Akiyama
Yoshihiro Ogura
Audit and Supervisory Board Members

Teruyuki Makino
Takanao Suzuki
Shinsuke Wataya
Kazuo Tanigawa

33