BASIC COMMITMENT OF
THE TOSHIBA MACHINE GROUP
We, the Toshiba Machine Group of Companies, based on respect forhuman values, are determined to help create higher quality andcontinued progress in the lives and cultures of the world.

Commitment to People
We endeavor to serve the needs of all people, especially ourcustomers, shareholders and employees, by carrying out fair androbust business activities

Commitment to the Future
By continually developing innovative technologies centening on the fieldof mechanics, electronics and sysytems, we contribute to create
foundations of industries, strive to create a highly quality society.

Commitment to the Society
As good corporate citizens, we actively contribute to further the goals ofsociety, including ways to improve the environment and resources.

Contents
1

An Outline of the Toshiba Machine Group
Corporate Information2

Foreword

4

Financial Highlights (consolidated)

5

Overseas Operations for Fiscal Year Ended March 31, 20176

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

36

Independent Auditor's Report

37

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, industrial
robot, 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, 2017)
Company Name:TOSHIBA MACHINE CO., LTD.

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

1938

Capital:¥12,484 million (US$111,283 thousand)Shares of Common Stock
Issued and Outstanding:

166,885,530 shares

Number of Shareholders:

9,691

Number of Employees:

1,787 (Consolidated: 3,236)

1

Foreword 2017
Although the Japanese economy in FY2016 was affected by drastic movements in exchange
rates, it still continued its slow recovery. For example, corporate revenues increased and theemployment rate improved as a result of government economic measures. Outside Japan, theAmerican, European, and Indian economies steadily improved. The future world economy,
however, remained uncertain; economies slowed down in some Asian developing nations such as
China, and policy changes in Europe and the US heightened uncertainties.
The machine industry, to which our group belongs, also showed a general recovery primarily indomestic capital investment demand, but our business confidence varied with the target market
and product.
In the abovementioned economic context, our group implemented the mid-term management
plan, TM-PΣ Plan (the Toshiba Machine Profit Sigma Plan), on April 1, 2016. While still following
the central concept of the previous mid-term management plans “advancement and expansion,”
this new plan holds “shift to a high-revenue company” and “selection and concentration” as new
basic strategies. In order for our group to steadily grow in high growth potential markets, we madeevery possible effort to; reduce the total cost, drive production innovation to improve profitability,
create a global and optimized procurement network to withstand currency exchange risks,
discover new markets, develop new products targeting both the Japanese and international
markets upon which we focus, and increase the order volume.
According to the consolidated financial report for the fiscal year under review, sales were111,327 million yen (a 5.1% decrease from the previous year). This result is attributed to sluggish
capital investments in Southeast Asian countries into which we had put a lot of marketing effort.
Operating profit was 4,473 million yen (a 17.5% increase from the previous year) as a result ofvarious cost reduction measures.
Current net profit attributable to shareholders of the parent company was 1,776 million yen (a63.0% decrease from the previous year) since the amortization of goodwill for overseas
subsidiaries was 1,877 million yen.
The dividend for FY2016 was 12 yen for the year.
While the US and Japanese economies are predicted to slowly recover, the overall future
economic climate will remain unpredictable due to, for example, economic trends of developing
countries such as China, the impact of the shift of American and European policies to2

protectionism, and globally heightened geopolitical risks. It is also predicted the businessenvironment will remain challenging because of drastic movements in exchange rates andintensifying competition with both Japanese and international companies.
For the TM-PΣ Plan (the Toshiba Machine Profit Sigma Plan) we launched on April 1, 2016, weset “shift to a high-revenue company“ and “selection and concentration“ as the basic strategies.
In the “shift to a high-revenue company“ strategy, we are starting to see positive outcomes of
the total cost reduction measures (reduction of product costs, cutback on procurement costs,
optimization of business base allocation, and cutback on general and administration expenses)
which we implemented in order to accomplish our urgent task, recovering profitability. We willcontinue to fully commit to these measures to improve profitability. In the “selection andconcentration” strategy, we will concentrate our management resources on active markets,regions, and customers to help the whole group steadily grow.
Also, our group will continue to work on thorough quality and environmental control inaccordance with ISO 9001 and 14001. We will actively engage in corporate social responsibility
programs such as future executive training to support the group's future, legal compliance, andsocial action activities.
On March 3, 2017, we obtained 30,207,000 shares of Toshiba Machine stock from Toshiba
Corporation. As a result, Toshiba Corporation now holds 3,338,267 shares of Toshiba Machine stock(approximately 2% of all issued stock) and we have therefore separated from the Toshiba group.
The new Toshiba Machine began on April 1, 2017. With the new organizational structure, wewill continue to further strengthen our corporate governance and the management system to growour business and increase corporate value.

3

FINANCIAL HIGHLIGHTS (consolidated)
Net sales

2017

2016

2015

2014

2013

¥111,327¥117,259¥124,373¥113,062¥120,899¥85,004¥90,733¥81,480¥87,294¥28,448¥28,851¥26,955¥25,526¥3,806¥4,788¥4,625¥8,078¥7,608¥6,522¥6,507¥12,239¥2,802¥2,210¥2,063¥4,347¥4,806¥4,312¥4,444¥7,891¥1,197¥8,748¥6,893¥9,468¥31.61¥28.36¥29.23¥51.91¥12.00

¥8.00

¥7.50

¥9.00

¥158,310¥161,975¥148,680¥142,239¥93,345¥93,669¥84,217¥79,399¥1,547¥2,193¥1,766¥769¥1,756¥1,965¥1,840¥2,065¥1,668¥1,663¥1,551¥1,566

3,286

3,466

3,454

3,197

$992,310

Cost of sales¥79,350$707,283

Selling, general andadministrative expenses
Operating income¥27,503$245,149¥4,473$39,879

Net income before income taxes¥3,523$31,409

Income taxes¥1,747$15,576

Net income¥1,776$15,833

Comprehensive income¥2,268$20,220

Per common share:
Net income¥11.87$0.11

Cash dividends¥12.00$0.11

Total assets¥140,530$1,252,613

Net assets¥77,120$687,407

Capital expenditures(property, plant and equipment)
Depreciation¥1,335$11,903¥1,730$15,424

R & D costs¥1,648$14,698

Number of employees

3,236Note 1: In millions of yen (thousands of U.S. dollars), except for per-share data and number of employees.
Note 2: Yen amounts have been translated into U.S. dollars, for convenience only, at the exchange rate of¥112.19=U.S.$1. See Note 3 of the Notes to the Consolidated Financial Statements.

4Overseas Operations for Fiscal Year Ended March 31, 2017
FY2016 overseas sales were 63,515 million
yen, which was 666 million less than the

Net Sales
Millions of yen

previous year.
In China, sales increased by 16.1% fromthe previous year. This increase wasattributable to greater demand for extrusion
machines and machine tools.
In Taiwan, sales rose by 14.0% from the120,899

113,062

18,801

16,800124,373
16,207

117,259
10,74728,141

32,931

Total
Other
cts
111,327 Produ
10,026
Machine
Tools
9
6
,4
29

80,02473,580

Moldingachinery
71,831 M

23,04728,902previous year because of increased extrusion
machine demand.
Meanwhile, in North America, althoughinjection molding machine sales went up,

73,21473,195regional sales fell by 3.7% from the previous
year due to reduced demand for machine
tools.

2014

2013

2016

2015

2017

In Korea, sales decreased by 17.9% fromthe previous year since there was only
demand for injection molding machines andTotal Sales & Overseas Sales
Millions of yen

machine tools.
In Southeast Asia, sales declined by 15.8%
from the previous year due to decreased

120,899

demand for die casting machines and machine

124,373

117,259es
Total Sal111,327

113,062

tools.
In India, although injection molding
machine sales rose, regional sales fell by 5.0%
from the previous year due to decreased
demand for machine tools.

74,594

66,191

72,481In Europe, sales declined by 19.6% fromthe previous year due to lower demand for
injection molding machines and precision

2013

2014

2015

64,181

2016

63,515

Overseas

Sales

2017

machine tools.
As a result, the percentage of overseas
sales relative to overall sales increased from
54.7% in the previous year to 57.1%.
The percentage of overseas sales bybusiness segment was: 80% for the molding

Export Percentages by Major Products
Other
Products

MachineTools

Molding
Machinery3%17%

machinery business (7% increase from theprevious year), 17% for the machine tools

80%

business (7% decrease from the previousyear), and 3% for other business segments,
which remained unchanged from the previous
year.

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

RECREO-CHN MEDIA PLAZA A-1001
A-1, No.15 Jian Guo Road, Chao Yang
District, Beijing, 100024,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)10-6590-8977~8
Fax : [86]-(0)10-6590-8979

Tianjin Office

Room 901, 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

Dalian 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

Chongqing Office

Room 9-8, H2 Building, Diecai Center,
No. 9 Jintong Road, North New District,
Chongqing, 401122, 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

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

6■ South East Asia ■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 311, No. 34-40, Centre South Road,
Donglian Industry Park, Dashi Street,
Panyu District, Guangzhou, 511400,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)20-2916-1330
Fax : [86]-(0)20-2916-1338

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

TOSHIBA MACHINE SOUTH EAST ASIA
PTE. LTD. Head Office
123 Pioneer Road, Singapore 639596,
SINGAPORE
Tel : [65]-68611455
Fax : [65]-68612023

Kuala Lumpur Branch

Unit No. 39-1, Block C2, Jalan PJU
1/39 Dataran Prima, 47301 Petaling
Jaya, Selangor Darul Ehsan, MALAYSIA
Tel : [60]-(0)3-7803-7544
Fax : [60]-(0)3-7803-7545

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.
Head Office127/28 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/
thailandPT. TOSHIBA MACHINE INDONESIA

Galeri Niaga, Tanjung Barat Kav. KM 8-6.
7, JL. TB. Simatupang Kav.81, Tanjung
Barat, Jagakarsa, Jakarta Selatan, 12530,
INDONESIA
Tel : [62]-(0)21-7884-8694
Fax : [62]-(0)21-7884-8689

TOSHIBA MACHINE (VIETNAM) CO., LTD.
Head Office
2nd Floor, VIT Tower, No. 519 Kim Ma
Street, Ngoc Khanh Ward, Ba Dinh
District, Hanoi, VIETNAM
Tel : [84]-(0)24-2220-8700~1
Fax : [84]-(0)24-2220-8702

■ America ■Ho Chi Minh Office

3rd Floor, Unit 3.1A, E-Town Building,
364 Cong Hoa Street, Ward 13, Tan Binh
District, Ho Chi Minh City, VIETNAM
Tel : [84]-(0)28-3810-8658
Fax : [84]-(0)28-3810-8657

TOSHIBA MACHINE (INDIA) PVT. LTD.
Head Office

Plot No. 5, LSC Pocket 6 & 7,
Second Floor, Sector-C,
Vasant Kunj, New Delhi, 110070, INDIA
Tel : [91]-(0)11-4329-1111
Fax : [91]-(0)11-4329-1127

Chennai Branch

No.65, Chennai-Bangalore Highway,
Chembrambakkam, Poonamallee Taluk,Thiruvallur, Chennai-600123, Tamil
Nadu, INDIA
Tel : [91]-(0)44-2681-2000
Fax : [91]-(0)44-2681-0888

Pune Branch405, Lunkad Skymax, Viman
Nagar, Nagar Datta Mandir, Pune
411014, INDIA
Tel : [91]-(0)20-4120-2355

TOSHIBA MACHINE (CHENNAI)PRIVATE LIMITED

No.65, Chennai-Bangalore Highway,
Chembrambakkam, Poonamallee Taluk,Thiruvallur, Chennai-600123, Tamil
Nadu, INDIA
Tel : [91]-(0)44-2681-2000
Fax : [91]-(0)44-2681-0303

TOSHIBA MACHINEMANUFACTURING (THAILAND)
CO., LTD.

7/499 Moo 6, Tambol Mabyangporn,
Amphur Pluakdaeng, Rayong 21140,
THAILAND
Tel : [66]-(0)38-027313
Fax : [66]-(0)38-027317

TOSHIBA MACHINE COMPANY,AMERICA Head Office

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/■ Europe ■TOSHIBA MACHINE (EU) LTD.
66 Burners Lane, Kiln Farm,
Milton Keynes MK11 3HD
UNITED KINGDOMTel : [44]-(0)1908-562327
Fax : [44]-(0)1908-562348

Los Angeles Office1440 South Balboa Avenue,
Ontario, CA 91761, U.S.A.
Tel : [1]-909-923-4009
Fax : [1]-909-923-7258

New Jersey Office1578 Sussex Turnpike, Randolph,
NJ 07869, U.S.A.
Tel : [1]-973-252-9956
Fax : [1]-973-252-9959

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

Mexico Branch

Circuito Luxma No.115, Poligono
Industrial Milenio, 37290 Leon,
Guanajuato, MEXICO
Tel : [52]-477-101-8600

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 MACHINE DO BRASIL COMERCIO
DE MAQUINAS LTDA.
Rua Cubatao, 86 Conjunto 1307, Vila
Mariana, Sao Paulo, SP CEP 04013-000,
BRASILTel : [55]-(0)11-3586-0140
Fax : [55]-(0)11-3586-0138

7

Financial Review
CONSOLIDATED BALANCE SHEETTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2017
Millions of yen
2016
2017

Thousands of
U.S. dollars(Note 3)2017

ASSETS
Current assets:
Cash and deposits (Notes 15 and 17)
Marketable securities (Notes 15, 17 and 18)
Notes and accounts receivable, trade (Note 17)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Deferred tax assets (Note 21)
Other current assets (Notes 17 and 19)
Total current assets¥29,914146
39,444(197)
39,246¥16,656
26,27643,425(159)
43,266$266,639
1,301
351,583(1,763)349,820

6,529
20,10082
26,713
2,772
2,823
101,615

7,208
22,16972
29,4502,809
2,528
120,987

58,203
179,169735
238,107
24,71325,163905,744

Property, plant and equipment, net (Note 6)

21,125

19,249188,305

749

3,141

6,681

9,488
6,858
23
87
582
17,039¥140,530

8,272
5,927
37
71
624
14,933¥158,310

84,572
61,135
206
778
5,192
151,883$1,252,613

Intangible assets (Note 7)
Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates (Note 17)
Other securities (Notes 17 and 18)
Long-term loans
Deferred tax assets (Note 21)
Other investments
Total investments and other assets
Total assets

See accompanying notes to financial statements.

8

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Notes 17 and 27)
Current portion of long-term debt (Notes 17 and 27)
Notes and accounts payable, trade (Note 17)
Income taxes payable (Note 21)
Accrued expenses
Warranty reserve
Other current liabilities (Note 17, 19 and 27)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 17 and 27)
Long-term accounts payable, otherAccrued directors’ retirement benefits
Net retirement benefit liability (Note 20)
Asset retirement obligations
Deferred tax liabilities (Note 21)
Other long-term liabilities (Note 27)
Total long-term liabilities
Total liabilities

Millions of yen
2016
2017

Thousands of
U.S. dollars(Note 3)
2017

¥10,090500
26,097
573
4,785
530
4,904
47,481¥11,609500
25,060
950
5,020
594
5,059
48,795$89,937
4,457
232,623
5,110
42,658
4,725
43,713423,222

4,300
5
29
9,244
49
2,275
25
15,92963,410

4,800
8
32
9,226
48
2,016
38
16,17064,96538,32852
260
82,397440
20,284
224
141,984565,206

12,484
19,60067,534(25,898)
73,722

12,484
19,60067,623(10,044)
89,663111,283
174,712
601,967(230,841)
657,121

3,210
1
1,600
(1,415)
3,397
77,120¥140,530

2,901
—
2,643
(1,864)
3,681
93,345¥158,310

28,62018
14,263(12,615)
30,286
687,407$1,252,613

Contingent liabilities (Note 8)
Net assets:
Shareholders’ equity: (Note 13)
Common stock
Authorized –360,000,000 shares
Issued–166,885,530 shares
Additional paid-in capital
Retained earnings
Treasury stock, at cost (46,195,547 shares in 2017, 14,864,402 shares in 2016)
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets (Note 26)
Total liabilities and net assets

See accompanying notes to financial statements.

9

CONSOLIDATED STATEMENT OF INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2017

Net sales
Cost of sales (Note 11)
Gross profit
Selling, general and administrative expenses (Notes 10 and 11)
Operating income
Other income:Interest and dividend income
Rent income
Equity in earnings of affiliates
Gain on sales of property, plant and equipment
Gain on sales of investments in affiliates
OthersOther expenses and losses:
Interest expense
Foreign exchange loss
Brand fee expense
Loss on disposal of property, plant and equipment andintangible assets
Amortization of goodwill (Note 12)
Others
Net income before income taxes
Income taxes (Note 21)
Current
Deferred
Net income
Net income attributable to owners of parent

Net income per share of common stock (Note 26)

Millions of yen
2016
2017
¥117,259¥111,327
85,00479,35032,254
31,97728,44827,503
3,806
4,473

Thousands of
U.S. dollars(Note 3)
2017
$992,310
707,283
285,027
245,149
39,879

269
59
1,462
4
—
150
1,945

334
229
1,394
18
2,651
183
4,813

2,398
527
13,03536—
1,342
17,338

113
469
192

141
254
233

1,016
4,188
1,717

9

28

89

1,877
231
2,895

—
352
1,011

16,732
2,066
25,808

3,523

7,608

31,409

1,528
218
1,747
1,776
¥1,776

2,079
722
2,802
4,806
¥4,806

13,627
1,949
15,576
15,833$15,8332016¥31.61

U.S. dollars(Note 3)
2017
$0.11

2017
¥11.87

Yen

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2017

Net income
Other comprehensive income (loss): (Note 14)
Unrealized holding gain (loss) on securities, net of tax
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Millions of yen
2016
2017
¥4,806¥1,776

Thousands of
U.S. dollars(Note 3)2017
$15,833

308
1
(267)
468
(19)
492
¥2,268(1,171)—(1,136)(1,308)8(3,608)¥1,1972,753
18(2,389)
4,177
(172)
4,387
$20,220

2,268
—

1,197
—

20,220—See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2017
Millions of yen
Unrealized
Deferred gains
Remeasurements
Number of Common Additional Retained Treasury gain on
Translation
Total netor losses onof defined
Sharesstock paid in capital earnings stock securities,
adjustments
assetshedgesbenefit plansnet of tax
Balance at April 1, 2015
166,885,530¥12,484¥19,600¥64,337 ¥(10,043)¥4,073¥—¥3,780¥(564) ¥93,669
Profit attributable to owners of parent
4,806
4,806
Purchases of treasury stock(1)(1)
Cash dividends(1,520)(1,520)Net changes in items other than shareholders’ equity(1,171)(1,136)(1,300)(3,608)
Balance at March 31, 2016
166,885,530
12,484
19,60067,623(10,044)
2,901
—
2,643
(1,864)
93,345
Profit attributable to owners of parent
1,776
1,776
Purchases of treasury stock(15,853)(15,853)
Cash dividends(1,824)(1,824)
Effect of fiscal year change of consolidated subsidiaries
(40)
(40)
Net changes in items other than shareholders’ equity308
1(1,043)449(283)
Balance at March 31, 2017
166,885,530¥12,484¥19,600¥67,534 ¥(25,898)¥3,210¥1¥1,600¥(1,415) ¥77,120

Balance at April 1, 2016
Profit attributable to owners of parent
Purchases of treasury stock
Cash dividends
Effect of fiscal year change of consolidated subsidiaries
Net changes in items other than shareholders’ equity
Balance at March 31, 2017

Thousands of U.S. dollars (Note 3)
Unrealized
Deferred gains
Remeasurements
Common Additional Retained Treasury gain on
Translation
Total netor losses onof defined benefit
stock paid in capital earnings stock securities,
adjustments
assetshedgesplans
net of tax$111,283 $174,712 $602,755 $(89,535) $25,867$—$23,566 $(16,619) $832,028
15,833
15,833(141,306)(141,306)(16,260)(16,260)
(361)
(361)
2,753
18
(9,303)
4,005(2,527)$111,283 $174,712 $601,967 $(230,841) $28,620$18$14,263 $(12,615) $687,407
See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENT OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2017

Operating activities:
Net income before income taxes
Adjustments to reconcile net income before income taxes to net cash provided by operating activities:
Depreciation
Amortization of goodwill
Allowance for doubtful receivables
Warranty reserve
Directors’ retirement benefit
Net defined benefit liability
Interest and dividend income
Interest expense
Gain on sales of investments in affiliates
Gain or loss on sales and disposal of property, plant and equipment and intangible assets
Equity in earnings of affiliates
Changes in operating assets and liabilities:
Notes and accounts receivable, trade
Inventories
Notes and accounts payable, trade
Advances received
Accrued expenses
Others
Sub totalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Investing activities:
Purchase of investments in other securities
Proceeds from sales of investments in other securities
Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation (Note 15)
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 receivableCollection of long-term loans receivable
OthersNet cash provided by (used in) investing activities
Financing activities:
Decrease in short-term bank loans
Repayment of 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
Decrease in cash and cash equivalents resulting from change of accounting period of consolidated subsidiaries
Cash and cash equivalents at end of year (Note 15)

Millions of yen
2016
2017

Thousands of
U.S. dollars(Note 3)2017

¥3,523¥7,608$31,409

1,730
2,294
52
(58)
(2)
491
(269)
113
—
5
(1,462)

1,756
409
25
(4)
9
86
(334)
141
(2,651)9(1,394)

15,424
20,450
472
(525)
(25)
4,385
(2,398)1,016—
53(13,035)

2,993
2,803
(582)
520
(104)
(432)
11,617495(125)(2,038)9,948(1,369)1,396(1,101)
93
(291)
297
4,685
560
(141)
(2,323)
2,781

26,68624,989(5,195)
4,635(934)(3,852)
103,555
4,413(1,121)(18,168)
88,678(499)
0—(2,322)
4
(195)
(0)
—
14
17
(2,983)—1
1,566(1,424)
50
(166)
2,100
(2)
27
100
2,252

(4,455)
0—(20,703)37(1,746)
(6)
—
126
158
(26,590)

(885)
(500)
(15,853)(1,824)(26)(19,089)(341)(12,466)
42,932(406)¥30,060

(211)
—
(1)
(1,520)(29)(1,761)(548)
2,724
40,208—¥42,932(7,895)(4,457)(141,306)(16,260)(238)(170,156)(3,048)(111,116)
382,681(3,623)$267,941

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(collectively, the Companies) are prepared on thebasis of accounting principles generally acceptedin Japan, which are different in certain respects
as to the application and disclosure requirementsof International Financial Reporting Standards,
and are compiled from the consolidated financial
statements prepared by the Company as requiredby the Financial Instruments and Exchange Law
of Japan. The preparation of these consolidated financial statements requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities and disclosureof contingent assets and liabilities at the fiscal
year end and the reported amounts of revenues
and expenses during the reporting period. Actual
results could differ from these estimates.
Certain reclassifications and rearrangements
have been made to the consolidated financial
statements issued domestically in order to present
them in a form that is more familiar to readers
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 for investments
in unconsolidated subsidiaries and affiliates
The consolidated financial statements include
the accounts of the Companies.
All significant intercompany transactions andaccounts and unrealized intercompany profits
among consolidated entities are eliminated in consolidation.
The cost in excess of the underlying interest in
net assets of consolidated subsidiaries at the timeof acquisition (goodwill), which is included in intangible assets in the accompanying consolidatedbalance sheet, is amortized on a straight-line basis
over the estimated useful life.
Investments in affiliates (15 to 50 percent-owned companies) in which the Company
has the ability to exercise significant influence,
except immaterial investments, are accounted forusing the equity method.
Unconsolidated subsidiaries and affiliates not accounted for by the equity method are stated at 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 date, 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, except forcomponents of shareholders’ equity which aretranslated at their historical rates. The revenue
and expense accounts of foreign consolidated subsidiaries are translated at the current rates at therespective balance sheet dates. Differences arisingfrom translation are recognized directly in foreign
currency translation adjustments in net assets.
(c) Securities
Marketable securities classified as other securities are carried at fair value with any changes in
unrealized holding 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 the individual identification method, or their net realizable value. Raw materials and supplies are statedat the lower of cost, determined by the moving
average method, or their net realizable value.
(e) Allowance for doubtful receivables
The allowance for doubtful receivables is statedat the amount determined based on the default ratio
sustained over a specific period in the past and theestimated uncollectible amount determined based on
the analysis of certain individual accounts, including
probable bad debt and claims in bankruptcy.
(f) Warranty reserve
Warranty reserve is provided for warranty costs
to be incurred during the warranty period basedon historical experience.
(g) Employee 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.

13

(h) Depreciation of property, plant and equipment(excluding leased assets)
Depreciation of buildings is principally computed by the straight-line method, facilities attached
to buildings and other non-building structuresacquired on or after April 1, 2016 is computed by
the straight-line method and depreciation of otherproperty, plant and equipment is computed by the
declining balance method over the estimated useful
lives of respective assets, principally ranging from 3
to 60 years for buildings and structures, and from 3
to 22 years for machinery, equipment and vehicles.
(i) Amortization of intangible assets
Computer software held for internal use isamortized by the straight-line method over thecorresponding economic useful life (5 years). Other intangible assets, including patent rights, areamortized by the straight-line method over theestimated useful lives of respective assets.
(j) Goodwill
Goodwill is amortized by the straight-line
method over a reasonable estimated period of
benefit not exceeding 20 years.
(k) 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.
(l) 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 inwhich they arise, except for derivatives that aredesignated as hedging instruments. Gains or losses arising from changes in fair value of the derivatives designated as cash flow hedging instruments,
net of the applicable income taxes, are reported
as a component of net assets.
(m) Income taxes
The Companies accrue current income taxes
based on taxable income.
The Companies recognize a number of temporary
differences for financial reporting purposes, which,in the case of expenses, are not currently deductible
and in the case of income, are not currently 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 the asset
and liability method.
(n) Employees’ retirement benefits
Accrued employees’ retirement benefits areprovided based on the projected retirement benefit obligation and the fair value of plan assets at

14fiscal year-end.
The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
Actuarial gain or loss is amortized in the following year in which the gain or loss is recognizedprimarily by the straight-line method over a period (10 years), which is shorter than the averageremaining years of service of the employees.
(o) Directors’ retirement benefits
Domestic consolidated subsidiaries accrue an
estimated amount calculated in accordance withinternal rules for retirement benefits for directors
and corporate auditors.
(p) Amounts per share of common stock
Net income per share is computed based on
the weighted-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 dilutive effect, such as bonds with warrants
and convertible bonds. Cash dividends per sharerepresent the actual amount declared as applicable to the respective years.
(q) Cash equivalents
In preparing the consolidated statement ofcash flows, cash on hand, readily available deposits and short-term highly liquid investments withmaturities of not exceeding three months at thetime of purchase are considered to be cash andcash equivalents.
(r) Changes in Accounting Period of Consolidated
Subsidiaries
Previously, subsidiaries having a year-end dateof December 31 were consolidated using theirfinancial statements as of their respective fiscal
year end and necessary adjustments were made totheir financial statements to reflect any significant
transactions from January 1 to March 31. Effectivefrom the year ended March 31, 2017, however,TOSHIBA MACHINE MANUFACTURING (THAILAND) CO., LTD., TOSHIBA MACHINE (THAILAND) CO., LTD., TOSHIBA MACHINE SOUTH
EAST ASIA PTE. LTD. and TOSHIBA MACHINECOMPANY, AMERICA have changed their yearend dates to March 31 and TOSHIBA MACHINE(SHANGHAI) CO., LTD., SHANGHAI TOSHIBA MACHINE CO., LTD., TOSHIBA MACHINE(SHENZHEN) CO., LTD. and TOSHIBA MACHINE
HONG KONG LTD. are consolidated using theirhard-closing accounts to be made as of March 31.
Net income or loss of these subsidiaries during theperiod between January 1, 2016 and March 31, 2016
was adjusted as an increase or a decrease in retained
earnings in the consolidated financial statements of
the Company for the year ended March 31, 2017.

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 ¥112.19=U.S.$1, the approximate exchange rate prevailing in the Japanese foreign exchange
market on March 31, 2017. 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(Practical Solution on a change in depreciation method due to Tax Reform 2016)
The Company and its domestic consolidated subsidiaries adopted “Practical Solution on a change indepreciation method due to Tax Reform 2016” (ASBJ PITF No.32, June 17, 2016) as a result of revisions
to the Corporate Tax Act of Japan. Accordingly, the depreciation method for both facilities attached tobuildings and other non-building structures acquired on or after April 1, 2016 was changed from the declining-balance method to the straight-line method.
This effect on profit or loss for the year ended March 31, 2017 was immaterial.

5. Additional Information(Adoption of the Revised Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company and its consolidated subsidiaries adopted “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26, March 28, 2016) from the fiscal year ended March 31, 2017.

6. Property, Plant and Equipment
Property, plant and equipment at March 31, 2017 and 2016 consisted of the following:

Land
Buildings and structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Lease assets
Construction in progress
Sub total
Less accumulated depreciation
Property, plant and equipment, net

Millions of yen
2016
2017
¥6,450¥6,43936,44836,28524,41725,000
334
320
7,162
7,114
247
227
31
2,603
75,093
77,990(55,844)(56,864)¥19,249¥21,125

Thousands of
U.S. dollars
2017$57,401
323,426
222,837
2,857
63,414
2,026
23,204695,164(506,859)$188,305

Depreciation expenses for the years ended March 31, 2017 and 2016 were ¥1,730 million ($15,424
thousand) and ¥1,756 million, respectively.

15

7. Intangible Assets
Intangible assets at March 31, 2017 and 2016 consisted of the following:
Millions of yen
2016
2017
¥2,254¥—886
749¥3,141¥749

Goodwill
Others
Total

Thousands of
U.S. dollars
2017
$—
6,681
$6,681

8. Contingent Liabilities
As of March 31, 2017, contingent liabilities for loans guaranteed by the Company, principally on behalfof non-consolidated subsidiaries and affiliated companies, amounted to ¥972 million ($8,665 thousand).

9. Commitment Line
The Company has concluded commitment line contracts with three financial institutions in order toensure that it can safely and flexibly meet any demand for funds. The balance of unused committed lines
under these contracts at the end of the fiscal year was as follows:

Total amount of commitment line
Funds borrowed
Unused amountMillions of yen
2016
2017
¥—
¥10,000——¥—¥10,000

Thousands of
U.S. dollars
2017$89,135—$89,135

10. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2017and 2016 were as follows:

Sales commission
Shipping expenses
Provision for warranty reserve
Personnel-expenses
Retirement benefit expenses
Depreciation
Rent expenses
Travel expenses
Research and development expenses
Subcontract expenses
OthersTotal

16Millions of yen
2016
2017
¥2,473¥1,912
3,612
3,649
489
442
11,422
11,256
614
692
631
665
792
750
1,535
1,236
1,070
1,032
564
576
5,241
5,288
¥28,448¥27,503

Thousands of
U.S. dollars
2017$17,043
32,5293,941
100,334
6,173
5,931
6,691
11,022
9,206
5,142
47,135$245,149

11. Research and Development Costs
Research and development costs charged to income were ¥1,648 million ($14,698 thousand) and¥1,668 million for the years ended March 31, 2017 and 2016, respectively.

12. Amortization of Goodwill
An immediate amortization of goodwill was recognized in accordance with Paragraph 32 of the “Practical Guidance Related to Capital Consolidation Procedures in Consolidated Financial Statements” (Final
Revision on November 28, 2014, the Accounting Practice Committee Report No.7 issued by the JapaneseInstitute of Certified Public Accountants).

13. Shareholders’ Equity
The Corporation Law of Japan (the “Law”), which went into effect on May 1, 2006, provides that an amountequal to 10% of the amount to be distributed as distribution of additional paid in capital (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve 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 reserve is available for distributions.

14. Other Comprehensive Income
The components of other comprehensive income (loss) for the years ended March 31, 2017 and 2016
were as follows:
Millions of yen
2016
2017
Unrealized holding gain (loss) on securities:
Current period changes in unrealized gain (loss)
Reclassification adjustment
Total unrealized holding gain (loss) on securities before tax effects
Tax effects
Unrealized holding gain (loss) on securities, net of tax effects
Deferred gains or losses on hedges
Current period changes
Total deferred gains or losses on hedges before tax effects
Tax effects
Deferred gains or losses on hedges, net of tax effects
Foreign currency translation adjustments:
Current period changes
Remeasurements of defined benefit plans
Current period changes in remeasurements of defined benefit plans
Reclassification adjustment
Total remeasurements of defined benefit plans before tax effectTax effects
Remeasurements of defined benefit plans, net of tax effects
Share of other comprehensive income of affiliates accounted for using equity method
Current period changes
Total other comprehensive income (loss)

Thousands of
U.S. dollars
2017

¥430
(0)
430
(122)
308

¥(1,784)—(1,784)612(1,171)$3,841(0)
3,841(1,089)
2,753

2
2
(0)
1

—
—
—
—

25
25
(8)
18

(267)

(1,136)(2,389)

242
226
468
—
468

(1,429)120(1,308)—(1,308)

2,161
2,016
4,177
—
4,177

(19)
¥492

8
¥(3,608)(172)$4,38717

15. Cash Flow Information(a) Cash and Cash Equivalents
The reconciliation between cash and time deposits in the accompanying consolidated balance sheet
and cash and cash equivalents in the accompanying consolidated statement of cash flows at March 31,2017 and 2016 were as follows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2016
2017
¥16,656¥29,914
26,276146¥42,932¥30,060

Thousands of
U.S. dollars
2017$266,639
1,301$267,941(b) Breakdown of book value of assets and liabilities of the transferred businesses
Assets and liabilities of Hyest Corporation at the time the company was excluded from the scope of
consolidation, related sales price of its shares and proceeds (net) from sale of its shares for the fiscal year
ended March 31, 2016 were as follows:
Millions of yen
2016
Current assets¥4,145
Non-current assets
579
Current liabilities(4,237)
Non-current liabilities(296)
Gain on sales of investments in affiliates
2,651
2,843
Sales price of shares
Cash and cash equivalents(1,277)
Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation¥1,566

16. Leases
This disclosure has been omitted for the year ended March 31, 2017 based on materiality.

17. Financial Instruments

Overview(a) Policy for financial instruments
The Companies invest in short-term deposits for fund management, where temporary cash surplus is invested in low-risk financial instruments. The Companies raise funds through bank borrowings. The Companies use
derivatives only to reduce risk, and do not enter into derivative transactions for speculative trading purposes.
(b) 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 adhering to their sales management rules. Investments, consisting of marketable securities of corporations, are exposed to stock price fluctuation risk in the market.
To address this risk, the Companies review stock prices in every quarter. Operating payables, such as notes
and accounts payable, trade are mainly due within six months. Borrowings are mainly used in for normal
operations and capital investments. The maturity of borrowings is up to two years from the balance sheet
date at the maximum. Certain borrowings are exposed to interest rate fluctuation risks, but these risks arehedged by interest rate swaps.

18

Derivative transactions consist of interest rate swaps used for the purpose of hedging interest rate fluctuation risk associated with long-term debt, and foreign exchange forward contracts, etc. used for the purpose of hedging foreign exchange risk associated with certain assets and liabilities denominated in foreign
currencies. These derivative transactions are managed under the internal management policies, to the extent deemed necessary. Note 19, “Derivative Financial Instruments,” provides more information on hedge
accounting, hedging instruments and methods, hedging policy, hedged items and assessments 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 the financial covenants, the terms of the borrowings may be possibly revised.
The terms of the financial covenants related to a syndicated loan contract (¥4,500 million ($40,111
thousand) at March 31, 2017) are as follows:① At March 31 and September 30 every year, the Company must maintain net assets in the consolidated balance sheet over ¥53,325 million ($475,310 thousand).
② In the consolidated statement of income for the fiscal year ending March 31, the Company must notrecord operating loss for two consecutive years.
(c) Supplemental information on the fair value of financial instruments
Fair value of financial instruments is calculated based on market prices, or by using reasonable estimates when market prices are not available. These estimates include variable factors, and are subject tofluctuation due to a change in underlying assumptions. The contract amounts of derivatives presented in
Note 19, “Derivative Financial Instruments,” below do not represent the actual market risk associated with
derivative transactions.
Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2017 and 2016, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen
2016
2017
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and deposits¥—¥29,914 ¥29,914¥— ¥16,656 ¥16,656
Notes and accounts receivable, trade43,42543,4282
39,44439,4484Marketable securities and investment securities
39,962
41,1001,137
15,98019,1303,149¥1,140¥85,338 ¥88,492¥3,154 ¥100,045 ¥101,185
Total assets
Short-term bank loans¥—¥10,590 ¥10,590¥— ¥12,109 ¥12,109
Notes and accounts payable, trade
25,06025,060—26,09726,097—Long-term debt
4,800
4,807
7
4,300
4,306
6
¥7
¥40,987 ¥40,994¥6 ¥41,969 ¥41,977
Total liabilities
Derivatives
¥28
¥28
¥—
¥(42)
¥(42)
¥—

19

Thousands of U.S. dollars
2017
Carrying value Fair value Difference
Cash and deposits$266,639 $266,639$—
Notes and accounts receivable, trade351,583 351,622
39
Marketable securities and investment securities 142,440 170,516
28,076$760,662 $788,777 $28,115
Total assets
Short-term bank loans$94,393 $94,393$—
Notes and accounts payable, trade—
232,623 232,623
Long-term debt
38,32838,38355$365,344 $365,399$55
Total liabilities
Derivatives$(379)$(379)$—

Note : Derivatives are presented as net amounts receivable or payable with net amounts payable inparentheses.
(a) Method for calculating fair value of financial instruments, short-term investments and derivativetransactions① Cash and deposits
The carrying value approximates fair value because these are due within the short-term.
② Notes and accounts receivable, trade
The fair value of notes and accounts receivable, trade is classified based on certain terms and discounted using interest rate which reflects credit risk.
③ Marketable securities and investment securities
For negotiable certificates of deposit, the carrying value approximates fair value because these are
due within the short-term.
Investment securities are based on quoted market prices.
④ Short-term bank loans; ⑤ Notes and accounts payable, trade
The carrying value approximates fair value because these are due within the short-term.
⑥ Long-term debt
The fair value of long-term debt is determined based on the present value of the principal and interest,
discounted by the interest rate that would be applied if similar new borrowings were entered into.
⑦ Derivatives
Please refer to Note 19, “Derivative Financial Instruments,”(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2017 and 2016
were as follows:

Investment securities for which the market prices are not available

Millions of yen
2016
2017
¥513
¥512

Thousands of
U.S. dollars
2017$4,568Market prices are not available for these items, or the cost of estimating future cash flow is consideredprohibitive. As a result, these items are not included in ③ Marketable securities and investment securities
in the above table, because their fair value is not readily determinable.

20(c) The aggregate annual maturities of financial assets at March 31, 2017 and 2016 were as follows:
Millions of yen

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

2016
2017
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¥—¥—¥—¥29,840¥—¥—¥— ¥16,650
1,630
—
—
37,824
1,619—— 41,794
146¥67,810—¥1,619—¥—— 26,276¥— ¥84,721—¥1,630—¥——¥—Thousands of U.S. dollars
2017
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$265,982$—$—$—
Notes and accounts receivable, trade 337,143 14,440——
Marketable securities and investment securities:
Negotiable certificates of deposit
1,301
—
—
—
$604,427 $14,440
$—
$—
Total

(d) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2017

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2016

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2017

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¥10,090
¥—
¥—
¥—
¥—
¥—
500
4,300
—
—
—
—
¥10,590 ¥4,300
¥—
¥—
¥—
¥—
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¥11,609
¥—
¥—
¥—
¥—
¥—
500
500
4,300
—
—
—
¥12,109¥500 ¥4,300¥—¥—¥—
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$89,937
$—
$—
$—
$—
$—
4,457 38,328————$94,393 $38,328
$—
$—
$—
$—

21

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

Equity securities

Equity securities

Acquisition cost
¥2,206¥2,206

Millions of yen
2017
Carrying value Unrealized gains Acquisition cost
¥1,706¥6,737¥4,531¥1,706¥6,737¥4,531

2016
Carrying value Unrealized gains¥5,807¥4,100¥5,807¥4,100Thousands of U.S. dollars
2017
Acquisition cost Carrying value Unrealized gains$19,665$60,058$40,393$19,665$60,058$40,393

Proceeds from sales and gain on sales of marketable equity securities classified as other securities were¥0 ($0 thousand) million and ¥0 million ($0 thousand) for the year ended March 31, 2017, respectively.
Negotiable certificates of deposit classified as non-marketable securities totaled ¥146 million ($1,301
thousand) and ¥26,276 million as of March 31, 2017 and 2016, respectively. Non-marketable equity securities classified as other securities primarily consist of ¥120 million ($1,076 thousand) and ¥120 million asof March 31, 2017 and 2016, respectively. Proceeds from sales and gain on sales of non-marketable equity
securities classified as other securities were ¥1 million and ¥0 million for the year ended March 31, 2016,
respectively.

19. Derivative Financial Instruments
The Companies have entered into derivative transactions (foreign exchange contracts, interest rate
swaps and currency option transactions) in order to manage certain risks arising from adverse fluctuations
in foreign currency exchange rates and in interest rates. The Company does not 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 areevaluated by the Corporate Auditing Office.
Derivatives not designated as hedging instruments at March 31, 2017 and 2016 were as follows:① Foreign exchange contracts
Millions of yen

Hedged item
Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
Accounts receivable
U.S. dollars
Buy:
U.S. dollars
Accounts payable
Japanese yen
Total

22

2016
2017
Contract Contract amount Fair value Unrealized Contract Contract amount Fair value Unrealized
amount due after one year
gain (loss) amount due after one year
gain (loss)

¥—

¥—

¥—

¥—

¥36

¥—

¥(0)

¥(0)

—
787
¥787

—
—
¥—

—
(45)
¥(45)

—
(45)
¥(45)

21
731
¥789

—
—
¥—

2
26
¥28

2
26
¥28

Hedged item

Thousands of U.S. dollars
2017
Contract Contract amount Fair value Unrealized
amount due after one year
gain (loss)

Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
Accounts receivable
U.S. dollars$—
Buy:
U.S. dollars—
Accounts payable
Japanese yen
7,017$7,017
Total

$—
—
—
$—

$—

$—

—
—
(404) (404)$(404) $(404)

Derivatives designated as hedging instruments at March 31, 2017 and 2016 were as follows:① Foreign exchange contract, etc.

Hedged item
Accounting in principle
Foreign exchange contracts:
Sell:
Accounts receivable
U.S. dollars
Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
Accounts receivable
U.S. dollars
Total

Hedged item
Accounting in principle
Foreign exchange contracts:
Sell:
U.S. dollars
Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
U.S. dollars
Total

Millions of yen
2016
2017
Contract Contract amount Fair value Contract Contract amount Fair value
amount due after one year
amount due after one year

¥2,941

¥—

¥2

¥—

¥—

¥—

4,071
¥7,012—¥—* 1,621¥2 ¥1,621

—
¥—

*
¥—

Thousands of U.S. dollars
2017
Contract Contract amount Fair value
amount due after one year

Accounts receivable $26,221

$—

$25

Accounts receivable $36,289$62,509

—
$—

*
$25

Note : Foreign exchange contracts are accounted for using the appropriation method as part of theaccounts receivable. Therefore the fair value of foreign exchange contracts is included in thefair value of the underlying accounts receivable.

23

② Interest rate swaps
Millions of yen

Hedged item
Special treatment
Interest rate swap:
Floating rate receipt, fixed rate payment Long-term debt

Hedged item

2017
Contract Contract amount Fair value
amount due after one year

¥4,500 ¥4,000

2016
Contract Contract amount Fair value
amount due after one year¥— ¥5,000 ¥ 4,500¥—

Thousands of U.S. dollars
2017
Contract Contract amount Fair value
amount due after one year

Special treatment
Interest rate swap:
Floating rate receipt, fixed rate payment Long-term debt $40,111 $35,654$—Interest rate swaps are accounted for as part of the long-term debt. Therefore the fair value of theswaps is included in the fair value of the underlying long-term debt.

20. Employees’ Retirement Benefits(a) Overview
The Company and certain subsidiaries have funded defined benefit plans, i.e, lump-sum payment plansand defined benefit pension plans, and defined contribution plans for employees.
Certain domestic subsidiaries participate in multiemployer pension plans. Multiemployer pension plans,
in which pension assets belonging to the Companies are not reasonably determinable, are accounted for as
if those are defined contribution plans.
Certain domestic consolidated subsidiaries have adopted the simplified method in calculating their projected benefit obligation.
(b) Defined benefit plans① The changes in the retirement benefit obligation during the years ended March 31, 2017 and 2016
were as follows:

Retirement benefit obligation at beginning of year
Service cost
Interest cost
Actuarial gain or loss
Retirement benefit paid
Decrease on exclusion from consolidation
Retirement benefit obligation at end of year

24

Millions of yen
2016
2017
¥12,949¥13,790
839
966
123
0
1,326
(243)
(943)
(636)
(503)
—
¥13,790¥13,878

Thousands of
U.S. dollars
2017$122,925
8,612
7(2,171)(5,670)—$123,702

② The changes in pension plan assets during the year ended March 31, 2017 and 2016 were as follows:

Pension plan assets at beginning of year
Expected return on pension plan assets
Actuarial gain or loss
Contribution by the Companies
Retirement benefit paid
Decrease on exclusion from consolidation
Pension plan assets at end of year

Millions of yen
2016
2017
¥4,843¥4,564
93
91
(102)
(1)
203
197
(283)
(218)
(188)
—
¥4,564¥4,634

Thousands of
U.S. dollars
2017$40,687
814
(10)
1,764
(1,949)—$41,305③ The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2017 and 2016 for the defined benefit plans

Funded retirement benefit obligation
Pension plan assets at fair value
Unfunded retirement benefit obligation
Net retirement benefit liability recognized in the consolidated balance sheet
Retirement benefit liability
Net retirement benefit liability recognized in the consolidated balance sheet

Millions of yen
2016
2017
¥4,536¥4,552(4,564)(4,634)
(28)
(81)
9,254
9,325
9,226
9,244
9,226
9,244
¥9,226¥9,244

Thousands of
U.S. dollars
2017$40,576(41,305)(729)
83,12682,397
82,397$82,397④ The components of retirement benefit expense for the years ended March 31, 2017 and 2016 wereas follows:

Service cost
Interest assets
Expected return on pension assets
Actuarial gain or loss
Retirement benefit expense

Millions of yen
2016
2017
¥839
¥966
123
0
(93)
(91)
80
226
¥950
¥1,101Thousands of
U.S. dollars
2017$8,612
7
(814)
2,016
$9,820⑤ Remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for the years ended March 31, 2017 and 2016 were as follows:

Actuarial gain or loss
Total

Millions of yen
2016
2017
¥(1,308)¥468¥(1,308)¥468

Thousands of
U.S. dollars
2017$4,177$4,17725

⑥ Remeasurements of defined benefit plans included in accumulated other comprehensive income(before tax effect) as of March 31, 2017 and 2016 were as follows:

Unrecognized actuarial loss
Total

Millions of yen
2016
2017
¥1,823¥1,354¥1,823¥1,354

Thousands of
U.S. dollars
2017$12,073$12,073⑦ The fair value of pension plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2017 and 2016 were as follows:
Domestic bonds
Domestic equity securities
Foreign bonds
Foreign equity securities
Insurance assets (General accounts)
Other
Total

2017
52%
13
11
14
8
2
100%

2016
51%
14
12
14
8
1
100%

The expected return on pension plan assets has been estimated based on the anticipated allocation toeach asset class and the expected long-term returns on assets held in each category.
⑧ The assumptions used in accounting for the above plans were as follows:
Discount rate
Expected rate of return on pension plan assets
Expected rate of salary increase

2017
0.0%
2.0
9.4

2016
0.0%
2.0
9.9

The expected rate of salary increase was the rate of increase points calculated using the age specificindex of the expected rate of salary increase under the retirement benefits point system.
(c) Defined contribution plans
The required contributions to defined contribution plans of the Company and certain domestic consolidated subsidiaries for the years ended March 31, 2017 and 2016 were ¥169 million ($1,506 thousand) and¥173 million, respectively.
(d) Multiemployer pension plans
The required contributions to the multiemployer pension plans for the years ended March 31, 2017 and2016 were ¥37 million ($334 thousand) and ¥63 million, respectively.
① Funded status of the multiemployer pension plans as of the most recent calculation dates

Amount of pension assets
Total amount of actuarial obligations and minimum reserve in the pension financial calculation (Note)
Difference

Millions of yen
2016
2017
¥317,423¥122,897
302,957
152,503¥14,465¥(29,605)

Note: This item was presented as “Amount of obligations” in the previous fiscal year.

26

Thousands of
U.S. dollars
2017$1,095,444
1,359,332$(263,889)

② The Companies’ portion of contributions in multiemployer pension plans

The Companies’ portion in the total contributions of the multiemployer plans

2017
0.630%

2016
0.586%The difference above was principally attributable to the differences in retained earnings of ¥(112,802)
million ($(1,005,464) thousand) and ¥8,978 million in the pension financial calculation, at March 31, 2017and 2016, respectively special reserve of ¥105,156 million ($937,307 thousand) and ¥24,330 million atMarch 31, 2017 and 2016 and unrecognized prior service cost of ¥21,959 million ($195,732 thousand) and¥18,843 million at March 31, 2017 and 2016, respectively.
Prior service cost of the plans is amortized by the straight-line method over 20 years. The Companies paid
and recognized premium contributions of ¥32 million ($286 thousand) and ¥33 million for amortization of priorservice cost in the consolidated financial statements for the years ended March 31, 2017 and 2016, respectively.
The Companies’ portion of contributions described above was not equal to the actual share to be allocated to the Companies.

21. Income Taxes
The significant components of deferred tax assets and liabilities at March 31, 2017 and 2016 were as follows:
Millions of yen
2016
2017
Deferred tax assets:
Allowance for doubtful receivables
Net defined benefit liability
Devaluation of inventories
Unrealized intercompany profit on inventories
Accrued employee’s bonuses
Devaluation of securities
Enterprise taxes payable
Other
Total deferred tax assets
Valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Deferral of gain on sale of fixed assets
Unrealized holding gain on securities
Asset retirement obligations
Foreign consolidated subsidiaries’ retained earnings
Affiliates’ retained earnings accounted for using equity method
Enterprise taxes receivable
Deferred gains or losses on hedges
Total deferred tax liabilities
Net deferred tax assets

Thousands of
U.S. dollars
2017

¥47
2,384
650
504
577
1,543
89
1,707
¥7,504(3,694)¥3,810

¥19
2,236
620
469
594
328
80
1,699
¥6,049(2,301)¥3,747$425
21,257
5,800
4,496
5,148
13,760794
15,216$66,895(32,929)$33,966(103)(1,320)(6)(599)(1,181)(13)(0)¥(3,226)
¥584

(103)
(1,199)
(6)
(577)
(996)
—
—
¥(2,883)
¥863

(921)
(11,774)(58)(5,340)(10,534)(124)(8)$(28,758)$5,20727

Net deferred tax is included in the following accounts:

Current assets – Deferred tax assets
Investments and other assets – Deferred tax assets
Current liabilities – Deferred tax liabilities
Long-term liabilities – Deferred tax liabilities

Millions of yen
2016
2017
¥2,809¥2,772
71
87
—
—
2,016
2,275

Thousands of
U.S. dollars
2017$24,713778—
20,284

The reconciliation between the statutory tax rate and effective tax rate for the years ended March 31,2017 and 2016 were as follows:
Statutory tax rate
Per-capita portion of inhabitant tax
Permanently non-deductible expenses
Permanently non-taxable revenue such as dividends income
Change in valuation allowance
Effects of elimination in consolidation
Difference in statutory tax rates for foreign subsidiaries
Effect of change in enacted tax rate
Refund of income taxes
Others
Effective tax rate

2017
30.2%
1.1
0.7
(0.6)
39.5
(20.3)
1.6
—
—
(2.6)
49.6%

2016
32.3%
0.5
0.6
(0.5)
1.2
(0.8)
0.1
1.6
(0.0)
1.8
36.8%

Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries generallycomprise corporation, enterprise and prefectural and municipal inhabitants taxes. The statutory tax rates
for the years ended March 31, 2017 and 2016 were approximately 30.2% and 32.3%, respectively.
Following the enactment by the Diet of the “Act for Partial Revision to the Partial Revision, etc. of Consumption Tax Act for the Drastic Reform of the Taxation System for Ensuring Stable Financial Resources,
etc. for Social Security” (Act No.85 of 2016) and the “Act for Partial Revision to the Partial Revision, etc.
of Local Tax Act and Local Allocation Tax Act for the Drastic Reform of the Taxation System for Ensuring
Stable Financial Resources, etc. for Social Security” (Act No.86 of 2016) on November 18, 2016, the effective date of raising the consumption tax rate to 10% has been postponed from April 1, 2017 to October 1,
2019, and the abolition of the local corporation special tax, the accompanying restoration of the corporate
enterprise tax, and changes in statutory tax rates of the local corporation tax and corporate inhabitant tax
have been postponed from fiscal years beginning on or after April 1, 2017 to fiscal years beginning on orafter October 1, 2019.
The effect of these changes on consolidated financial statements is immaterial.

22. Asset Retirement Obligations
This disclosure has been omitted for the year ended March 31, 2017 based on materiality.

23. Rental Property
This disclosure has been omitted for the year ended March 31, 2017 based on materiality.

28

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 Board of Directors to conduct periodic assessments to determine distribution of management resources and evaluate their business results.
The Companies’ business is classified into certain segments based on the types of products and services. The Companies’ segments are categorized into the following two reportable segments: “Molding
Machinery” and “Machine Tools” based on the similarities of the economic nature, type of business andmanufacturing 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(b) Basis of measurement for reportable segment profit or loss, segment assets and other material items
The accounting treatment for the reportable business segments is generally the same as described in
Note 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 based on themarket prices.
(Adoption of the Practical Solution on a change in depreciation method due to Tax Reform 2016)
As noted in “(4) Accounting Changes,” following the “Practical Solution on a change in depreciation
method due to Tax Reform 2016,” the depreciation method for both facilities attached to buildings andother non-building structures acquired on or after April 1, 2016 was changed from the declining-balancemethod to the straight-line method.
The effect on profit or loss of segments for the year ended March 31, 2017 was immaterial.
(c) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2017 and 2016 was asfollows:
Millions of yen

Year ended March 31, 2017
Reportable segments
Molding
Machinery

MachineTools¥71,831¥29,469 ¥101,301

Sub total Other Products

Total

Adjustments Consolidated

Net sales:
External customers¥10,026¥111,327¥—¥111,327

—

265

265

2,629

2,895

(2,895)—

Total

71,83129,735

101,566

12,655

114,222(2,895)111,327

Segment income¥3,525¥422¥3,948¥402¥4,351¥122¥4,473

Segment assets¥72,916¥38,216¥111,132¥1,092¥446¥1,538¥191¥1,730¥—¥1,730

483

201

685

650

1,335

—

1,335

Inter-segment¥18,427 ¥129,560¥10,969 ¥140,530

OthersDepreciation
Capital expenditures29

Millions of yen

Year ended March 31, 2016
Reportable segments
Molding
Machinery

MachineTools¥73,580¥32,931 ¥106,512

Sub total Other Products

Total

Adjustments Consolidated

Net sales:
External customers¥10,747¥117,259¥—¥117,259

—

429

429

2,742

3,172

(3,172)—

Total

73,58033,361

106,941

13,489120,431(3,172)

117,259

Segment income¥1,710¥1,541¥3,252¥404¥3,656¥150¥3,806

Segment assets¥75,450¥38,620¥114,070¥1,112¥411¥1,523¥232¥1,756¥—¥1,756

771

466

1,238

309

1,547

—

1,547

Inter-segment¥18,171 ¥132,242¥26,068 ¥158,310

OthersDepreciation
Capital expenditures

Thousands of U.S. dollars

Year ended March 31, 2017

Reportable segments
Molding
MachineMachineryTools

Sub total Other Products

Total$640,268$262,674$902,942$89,368$992,310$—$992,310

—

2,368

2,368

23,43725,806(25,806)—

Total

640,268

265,043905,310

112,805

1,018,115(25,806)

992,310Segment income$31,426$3,769$35,195$3,590$38,785$1,094$39,879

Segment assets$649,937$340,641$990,578

Depreciation$9,737$3,978$13,715$1,709$15,424$—$15,424

Capital expenditures

4,310

1,797

6,107

5,796

11,903—

11,903Adjustments Consolidated

Net sales:
External customers
Inter-segment$164,255 $1,154,833$97,779 $1,252,613

Others

Note : “Other products” is a business segment that is not included in the reportable segments. It included business activities related to industrial robots and electronic controls, etc.
(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, 2017 and 2016 were as follows:
Sales
Total reportable segments
Other products
Eliminations
Net sales in the consolidated financial statements

30

Millions of yen
2016
2017
¥106,941¥101,566
13,48912,655(3,172)(2,895)¥117,259¥111,327

Thousands of
U.S. dollars
2017$905,310
112,805(25,806)$992,310

Income
Total reportable segments
Other products
Eliminations
Operating income in the consolidated financial statements

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

Millions of yen
2016
2017
¥3,252¥3,948
404
402
150
122
¥3,806¥4,473Thousands of
U.S. dollars
2017$35,195
3,590
1,094$39,879

Millions of yen
2016
2017
¥114,070¥111,132
18,171
18,427
26,412
11,343(343)(374)¥158,310¥140,530

Thousands of
U.S. dollars
2017$990,578
164,255
101,114(3,334)$1,252,613

Note : Company-wide assets are mainly cash and cash equivalents, securities and investment securities that are not allocated to the reportable segments.
(e) Other 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 by country or geographical areas for the years ended March 31, 2017 and 2016
was as follows:Japan¥47,811

Millions of yen
2017
North America
Asia¥19,993¥41,539

Other¥1,983

Total¥111,327Japan¥53,078

Millions of yen
2016
North America
Asia¥20,754¥41,090

Other¥2,336

Total¥117,259

Japan$426,164

Thousands of U.S. dollars
2017North America
Asia
Other
$178,207$370,261$17,678

Total$992,310

Note: Sales figures are classified based on customer locations.

31

Property, plant and equipment information by country or geographical areas as of March 31, 2017 and2016 was as follows:Japan¥18,423

Millions of yen
2017
North America
Asia
¥198
¥2,504

Total¥21,125

Japan¥16,208

Millions of yen
2016
North America
Asia
¥217
¥2,823

Total¥19,249

Japan$164,215

Thousands of U.S. dollars
2017North America
Asia$1,770$22,320

Total$188,305③ 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, 2017 and 2016.
(f) Information about impairment loss on fixed assets for each reportable segment
There was no impairment loss on fixed assets recognized for the year ended March 31, 2017 and 2016.
(g) Information about amortization of goodwill and unamortized balance for each reportable segment
Information about amortization of goodwill and unamortized balance as of and for the years ended
March 31, 2017 and 2016 was as follows:

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance32

MachineTools¥——

Millions of yen
2017
Other
Adjustments
products¥—¥———

Molding
Machinery
¥409
2,254

MachineTools¥——

Millions of yen
2016
Other
Adjustments
products
¥—
¥—
—
—

Total

Molding
Machinery$20,450—

Thousands of U.S. dollars
2017
MachineOther
Adjustments
Tools
products
$—
$—
$—
—
—
—

Total

Molding
Machinery¥2,294—

Total¥2,294
—

¥409
2,254

$20,450—

(h) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2017 and 2016.

25. Related Party Transactions
During the years ended March 31, 2017 and 2016, the Companies had operating 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, 2017and 2016 was as follows:
Millions of yen
2016
2017
For the years ended March 31:
Acquisition of treasury stocks
Payment of brand fee¥15,284
182

¥—
233

Thousands of
U.S. dollars
2017$136,240
1,625

Note 1: Based on the resolution by the Board of Directors on March 2, 2017, the Company acquired its
treasury stocks through Tokyo Stock Exchange Trading NeTwork System (ToSTNeT-3), via offer transactions during off-hours trading, at the closing stock price on the day before the transaction. As a result, Toshiba Corporation was removed from related parties of the Company.
Note 2: The brand fee rate had been agreed upon prior to the beginning of the respective fiscal years.
Transaction amounts are described during the term when Toshiba Corporation was a related
party of the Company.

26. Net Income and Net Assets per Share
Net income and net assets per share as of and for the years ended March 31, 2017 and 2016 were as
follows:

Net income per share
Net assets per share2017¥11.87638.99Yen

2016¥31.61614.03

U.S. dollars
2017
$0.11
5.70

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

Weighted-average number of shares of common stockThousands of shares
2016
2017
152,023
149,609

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

Millions of yen
2016
2017
¥4,806¥1,776——¥4,806¥1,776

Thousands of
U.S. dollars
2017$15,833—$15,833

33

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

Number of shares at year-end

Thousands of shares
2016
2017
152,021
120,689

Net assets
Non-controlling interests in consolidated subsidiaries
Net assets applicable to shareholders of common stock

Millions of yen
2016
2017
¥93,345¥77,120——¥93,345¥77,120

Thousands of
U.S. dollars
2017$687,407—$687,407

27. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding as of March 31, 2017and 2016 ranged principally from 0.46% to 0.53% and 0.50% to 1.64%, respectively. Long-term debt as ofMarch 31, 2017 and 2016 consisted of the following:
Millions of yen
2016
2017
Loans, principally from Japanese banks and insurance companies:
maturing 2017 - 2018, interest 0.51% - 0.98%
Less current portion¥4,8004,800
500¥4,300Thousands of
U.S. dollars
2017¥5,3005,300
500¥4,800

The aggregate annual maturities of long-term debt at March 31, 2017 were as follows:Year ending March 31
2018
2019
2020
2021
2022 and later
Total

Millions of yen
¥500
4,300
—
—
—
¥4,800Thousands of
U.S. dollars$4,45738,328———$42,785

The aggregate annual maturities of finance lease obligations at March 31, 2017 were as follows:Year ending March 31
2018
2019
2020
2021
2022 and later
Total

34

Millions of yen
¥23
13
7
2
0
¥47

Thousands of
U.S. dollars
$205
120
67
22
8
$422

$42,785
42,785
4,457$38,32828. Subsequent Event(a) Cash dividends
The following appropriation of retained earnings, which has not been reflected in the accompanying
consolidated financial statements for the year ended March 31, 2017, was approved at the meeting of theBoard of Directors held on May 10, 2017:
Cash dividends of ¥6.00 ($0.05) per share amounting to ¥724 million ($6,455 thousand)(b) Cancellation of treasury stocks
At the Board of Directors meeting held on May 25, 2017, the Company approved the item related to thecancellation of treasury stocks based on Article 178 of the Company Act and executed the cancellation.
Details are as follows:① Objective: Alleviate the concern of dilution of shares in the future and to improve the per-share value② Cancellation method: Reduction from capital surplus and retained earnings③ Class of shares to be cancelled: Common stock④ Number of shares to be canceled: 17,000,000 shares(10.2% of the total number of issued shares prior to cancellation)⑤ Date of cancellation: June 12, 2017
⑥ Total number of outstanding shares after cancellation: 149,885,530 shares

35Independent Auditor's Report36Directors & Audit and Supervisory Board Members

Directors Chairman and Chief Executive Officer		 Yukio Iimura
President and Chief Operating Officer
		 Takahiro Mikami
Representative Director and Senior Managing Executive Officer
		 Shigetomo Sakamoto
Director and Senior Managing Executive Officer
		 Masayuki Yagi
Director and Managing Executive Officer
		 Katsuo Ito
Directors and Executive Officers
		 Akiyoshi Kobayashi		 Jun Koike
Outside Directors
		 Kan Akiyama
		 Yoshihiro Ogura
		 Kiyoshi Sato
Audit and Supervisory Board Members

		 Teruyuki Makino
		 Makoto Tsuji
		 Yutaka Usami

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