Contents
1

An Outline of the Toshiba Machine Group
Corporate Information2

Foreword

4

Financial Highlights (consolidated)

5

Overseas Operations for Fiscal 20116

Overseas Offices
Financial Review

8

Consolidated Balance Sheets

10

Consolidated Statements of Operations

11

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

12

Consolidated Statements of Cash Flows13

Notes to Consolidated Financial Statements

31

Report of Independent Auditors

32

Directors & Auditors

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, 2011)
Company Name:TOSHIBA MACHINE CO., LTD.

Headquarters:

2068-3, Ooka, Numazu-shi,
Shizuoka-ken 410-8510, Japan

Established:

1938

Capital:¥12,484million (US$150 million)

Shares of Common Stock
Issued and Outstanding:

166,885,530 shares

Number of Shareholders:

13,653

Number of Employees:

1,858 (Consolidated: 3,140)

1

Foreword 2011
Fiscal year 2011 had been characterized by a slow and gradual recovery of the global economy
with firming demand in China, Southeast Asia, and the U.S.A. On the other hand, the yen’s longterm appreciation, the influence of the expiration or reduction of economic stimulus programs,
and, in addition, the Great East Japan Earthquake, which was occurred on March 11,2011, greatly
influenced the domestic economy; thus, the domestic economy had been changed in a view of a
fry-by-night operation and not been able to eliminate the feeling. Also, in the machinery industry,
capital investment abroad, especially in emerging markets, had been changed translating into
slowly increasing demand; however, capital investment in domestic market had still been
tempered with a cautious attitude.
In light of these economic conditions, the Toshiba Machine Group focused on accomplishing
the mid-term management plan, named “TM AC Plan” (Toshiba Machine Adapt to the ChangePlan), and made intensive efforts to secure orders in Japan and overseas, develop new products,
and explore new markets.
Consolidated orders received of this term totaled ¥104,081million (US$1,251million), and themeaning is that the amount of orders were increased 73.0% over the previous term. Net sales
totaled ¥95,653million (US$1,150million), and the meaning is that the amount of orders wereincreased 28.1% over the previous term. This growth was led by a much improved order volume
for smaller-sized machines in Asia and the U.S.A. and, from the 3rd quarter, was also led by arecovery of demand for large-sized and “made-to-order” machines, which the Toshiba MachineGroup has particular strength to manufacture.
With respect to consolidated profits, there were ongoing concerns about affects stemming fromthe Great East Japan Earthquake, including difficulties of shipment and operation caused byplanned power outages, stagnation in logistics, and parts supply difficulties. However,contributions of the molding machinery and hydraulic equipment segments, as well as successes
in fixing expenses, reducing variable costs, and implementing business rationalization efforts,
largely offset these difficulties. As a result, the consolidated operating profit increased¥5,844million (US$70million) over the previous term and became ¥4,028million (US$48million),and the net income of this term increased ¥7,811 million (US$93million) over the previous term
and became ¥3,280 million (US$39million).
The year-end dividend for this term, ¥3.0 (US$0.04) per share, was distributed to ourstockholders for the period ending on March 31, 2011, resulting in a total annual dividend of¥4.5 (US$0.05) per share.
As for the domestic and overseas outlook, we see continuing difficulties with parts supply and2the confusion related to the electric shortage, in both domestic and overseas economies, causedby the Great East Japan Earthquake occurred on March 11, 2011, and intensifying competition
between domestic companies and overseas companies. However, we will make every effort topioneer new markets, introduce new products corresponding to changing market needs, andfurther reduce costs through efficiency, to improve profit.
Under these severe management circumstances and the changing industrial structure, theToshiba Machine Group launched a new mid-term management plan, “TM AC Plan (Toshiba
Machine Adapt to the Change Plan)”, begun April 1st, 2010. In this plan, we call for “Expansive
Innovation” and “Expanding Markets” at the same time. “Expanding Markets” means expanding
markets by improving and re-marketing existing products in developing countries, which belong to
the volume zone of the industrial structure pyramid. “Expansive Innovation” means using ourcore technology to develop new progressive products attractive to that portion of the newindustrial structure pyramid which sets energy and environment as keywords.
October 2010 saw the implementation of four new reforms to our business structure designed
to support “Expansive Innovation for Expanding Markets”.
1. Introduction of unit structure
2. Introduction of hub structure
3. Merger of TOSHIBA MACHINE MACHINERY CO, LTD.; our machine tools subsidiary
4. Focus on environmental business
In April 2011, we initiated “TM AC Plan Ⅱ”, with action plans designed around “Expansive
Innovation for Expanding Markets” as a basis concept to drive us forward as a genuine global
company. We will gather the power of the Toshiba Machine Group behind this basic policy, tochange and reinforce our business foundation, and drive the expansive business strategy andexpanding business strategy.
We will make every effort to focus on being through management of quality and theenvironment based on ISO9001 and ISO14001 standards while, as a responsible corporate citizen,
training and educating our workforce to forge the future of our Company in observance of all rules
and regulations, and in fulfillment of all social responsibilities.

Yukio Iimura
President
July, 2011

3

FINANCIAL HIGHLIGHTS (consolidated)
Net sales

2011

2010

2009

2008

2007

¥95,653¥74,694¥121,890¥148,779¥164,386¥56,470¥84,760¥101,628¥109,801¥20,040¥25,594¥28,180¥34,078¥(1,816)¥11,536¥18,971¥20,507¥(2,032)¥9,866¥20,520¥19,750¥2,499¥4,563¥6,610¥8,437¥(4,531)¥5,303¥13,910¥10,829

—

—

—

—

¥(29.80)¥34.18¥86.79¥65.80¥4.50¥12.00¥15.00¥12.00¥115,806¥132,734¥157,998¥188,046¥63,372¥68,712¥70,004¥71,029¥625¥5,550¥3,098¥4,193¥2,514¥2,561¥2,170¥2,086¥1,567¥1,684¥1,742¥3,557

3,067

3,148

3,246

3,435

$1,150,367
Cost of sales¥69,997$841,816

Selling, general andadministrative expenses
Operating income (loss)¥21,628$260,108¥4,028$48,443

Income (loss) before income
taxes and minority interests
Income taxes¥3,749$45,087¥469$5,640Net income (loss)¥3,280$39,447

Comprehensive income¥2,410$28,984

Per common share:
Net income (loss)¥21.57$0.26

Cash dividends

¥4.50
$0.05

Total assets¥131,203$1,577,907

Net assets¥65,325$785,628

Capital expenditure(property, plant and equipment)
Depreciation¥2,044$24,582¥2,322$27,925

R & D Cost

¥1,399$16,825

Number of employees

3,140

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

4

Overseas Operations for Fiscal 2011
Fiscal year 2011 had been characterized
by a slow and gradual recovery of the global
economy with firming demand in China,
Southeast Asia, and the U.S.A. The yen’s
long-term appreciation, the influence of the
expiration or reduction of economic stimulus
programs, and the Great East Japan
Earthquake, greatly influenced the domestic
economy. Also, in the machinery industry,
capital investment abroad, especially inemerging markets, had been changedtranslating into slowly increasing demand;
however, capital investment in domestic
market had still been tempered with acautious attitude.

Net Sales
Millions of yen
Note 1 :From the fiscal year
ending March 31, 2008,
the consolidated
subsidiaries of
164,385[Semiconductor
21,710
Manufacturing
Equipment] areexcluded fromour consolidated
25,247companies.

ductorSemicon turing
Manufac t
en
m
ip
Equ

148,779
23,156

121,890
19,24831,43838,226

Total consolidated overseas sales for thisterm was ¥50,077million (US$602million),
which is a 40.0% increase over the previous
term. This growth was led by a much
improved order volume for smaller-sizedmachines in Asia and U.S.A. and, from the 3rdquarter, was also led by a recovery of demand
for large-sized and “made-to-order” machines,
which the Toshiba Machine Group has
particular strength to manufacture. Morespecifically, injection molding machines, diecasting machines, machine tools, andhydraulic equipment were our leading
products, and the most common destinationfor export was the Asian region.
During 2010, we had focused on businessstructural reformation designed to best
ensure the success of the TM AC Plan. From
April of 2011, we began “TM AC Plan Ⅱ.” We
implement various measures, continuing ourcore business concept named “Expansive
Innovation for Expanding Markets” mappingout our three courses in the TM AC Plan Ⅱ,
which courses are requiring change andreinforcement of our business foundation, theexpansive business strategy, and expanding
business strategy. We will gather the power of
the Toshiba Machine Group to ensure our
emergence as a genuine global company.

74,694
12,57931,334

Moldingry
Machine88,15249,28964,37585,989In light of these economic conditions, theToshiba Machine Group focused on
accomplishing the mid-term management
plan, named “TM AC Plan” (Toshiba Machine
Adapt to the Change Plan), and made anintensive effort to secure orders in Japan andoverseas, develop new products, and explore
new markets.

Total
Other
Products
22,789MachineTools
23,574

95,65337,47030,780

2009

2008

2007

2011

2010

Total Sales & Overseas Sales
Millions of yen
164,385
148,779
144,356

121,890
95,653es
Total Sal74,69470,602

2006

74,3602007

67,155

2008

52,4102009

35,763

2010

50,077

Overseas

Sales

2011

Export Percentages by Major Products
Other
Products
HydraulicEquipment

Molding
Machinery

5%13%

Machine
Tools

20%

62%

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

Dalian Office
No. 171-8, Dongbei Avenue,
Exploitation District, Dalian, 116600,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)411-8732-7911
Fax : [86]-(0)411-8732-6899■ South East Asia ■TOSHIBA MACHINE (SHANGHAI) CO., LTD.

TOSHIBA MACHINE (THAILAND) 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

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

TOSHIBA MACHINE (SHENZHEN)
CO., LTD

Chonburi Branch

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

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

Guangzhou Office

Tianjin Office

Dongguan Office12-32, Xinshuiyuan, Youyinan Road,
Hexi District, Tianjin, 300221,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)22-8836-3056
Fax : [86]-(0)22-2416-0380

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

Room 707, No.93, Linhexi Road, Tianhe
District, Guangzhou, 510610,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)20-8755-1180
Fax : [86]-(0)20-8755-1185

Suzhou Office
112, Jin Di Ming Yuan, No. 168, Jie Fang
Xi Road, Suzhou, 215007,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)512-6855-0387
Fax : [86]-(0)512-6855-0562

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

6TOSHIBA MACHINE HONG KONG LTD.
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

TOSHIBA MACHINE TAIWAN CO., LTD.
No. 62, Lane 188, Jui-Kuang Road,
Nei-Hu District, Taipei, TAIWAN
Tel : [886]-(0)2-2659-6558
Fax : [886]-(0)2-2659-6381

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

TMT SERVICE & ENGINEERING CO., LTD.
39 M.6 Phaholyothin Road,
Thumbol Klongnueng,
Amphur Klongluang, Pathumthani 12120
THAILANDTOSHIBA MACHINE S.E. 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

Jakarta Office
ANZ Tower, 20th Floor,
J1. Jenderal Sudirman Kav. 33A,
Jakarta, 10220, INDONESIA
Tel : [62]-(0)21-5790-1217~8
Fax : [62]-(0)21-5790-1219

TOSHIBA MACHINE (INDIA) PVT. LTD.
Head Office
6A, 6th Floor, Uppal’s Plaza, M-6, Jasola
District Centre, New Delhi - 110025,
INDIA
Tel : [91]-(0)11-4329-1111
Fax : [91]-(0)11-4329-1127■ North America ■■ Europe ■TOSHIBA MACHINE CO., AMERICA
Head Office

TOSHIBA MACHINE (EUROPE)G.m.b.H.
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/

Oskar-Messter-Strasse 22,85737 Ismaning, GERMANY
Tel : [49]-(0)89-9509499-0
Fax : [49]-(0)89-9509499-25

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

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

New Jersey OfficeChennai Branch
Regus Office Centre, Olympia Tech Park,
Office 212, Level 3, Altius Building No. 1,
Sidco Industrial Estate, Guindy, Chennai 600032, INDIA
Tel : [91]-(0)44-4299-4161
Fax : [91]-(0)44-4299-4300

TOSHIBA MACHINE (VIETNAM) CO., LTD.
Head Office
2nd, VIT Tower, No.519, Kim Ma Street,
Ba Dinh District, Hanoi, VIETNAM
Tel : [84]-(0)4-2220-8700~1
Fax : [84]-(0)4-2220-8702

Ho Chi Minh Office
E-Town Bldg., 8th Floor, Unit 1, 364,
Cong Hoa Street, Tan Binh District,
Ho Chi Minh City, VIETNAM
Tel : [84]-(0)8-3810-8658
Fax : [84]-(0)8-3810-8657

1578 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

New York Office
10 Corporate Park Drive, Suite C,
Hopewell Junction, NY 12533, U.S.A.
Tel : [1]-845-896-0692
Fax : [1]-845-896-1724

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/

7

Financial Review
CONSOLIDATED BALANCE SHEETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2011 and 2010
Thousands of
U.S. dollars

Millions of yen
ASSETS
Current assets:
Cash and time deposits (Note 11 and 15)
Marketable securities (Note 5 and 11)
Notes and accounts receivable, trade (Note 11)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Deferred tax assets (Note 14)
Other current assets
Total current assets
Property, plant and equipment, net (Notes 6, 10 and 13)
Intangible assets
Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates
Other securities (Note 5 and 11)Long-term loans
Deferred tax assets (Note 14)
Other investments
Total investments and other assets
Total assets

2011

2010

2011

¥18,513
17,50035,195(171)
35,024¥15,993
16,00028,633(237)
28,396$222,646
210,463423,271(2,057)421,214

4,785
20,93578
25,7982,535
1,792
101,162

3,093
16,493102
19,6881,493
1,690
83,26057,547
251,774938
310,259
30,487
21,552
1,216,621

22,241

23,452

267,480

468

481

5,628

2,358
3,886
105
343
640
7,332
¥131,203

2,560
4,347
132
653
921
8,613
¥115,806

28,35846,735
1,263
4,125
7,697
88,178$1,577,907

See accompanying notes to financial statements.

8

Millions of yen
LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Notes 7, 11 and 13)
Current portion of long-term debt (Note 7 and 11)
Notes and accounts payable, trade (Note 11)
Income taxes payable (Note 14)
Accrued expenses
Warranty reserve
Other current liabilities (Note 7)
Total current liabilities
Long-term liabilities:
Long-term debt (Note 7 and 11)Long-term accounts payable, otherAccrued employees’ retirement benefits (Note 8)
Accrued directors’ retirement benefits
Asset retirement obligations
Deferred tax liabilities (Note 14)
Other long-term liabilities (Note 7)
Total long-term liabilities
Total liabilities
Contingent liabilities (Note 9)
Net assets:
Shareholders’ equity: (Note 19)
Common stock
Authorized –360,000,000 shares
Issued–166,885,530 shares
Additional paid-in capital
Retained earnings
Treasury stock, at cost (14,851,270 shares in 2011, 14,848,594 shares in 2010)
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

Thousands of
U.S. dollars

2011

2010

2011

¥10,713700
27,340
711
4,627
208
5,944
50,243¥10,515—
17,313
222
3,611
73
3,893
35,627$128,839
8,419
328,803
8,551
55,646
2,502
71,485604,245

6,800
99
8,439
56
50
146
45
15,63565,878

7,500
47
8,997
86
—
123
54
16,80752,434

81,780
1,191
101,491
673
601
1,756
542
188,034
792,279

12,485
19,60143,751(10,039)
65,79812,485
19,60140,927(10,038)
62,975150,150
235,731
526,170(120,734)
791,3171,236
1(1,710)(473)
65,325¥131,203

1,517
3(1,123)397
63,372¥115,806

14,865
12(20,566)(5,689)785,628$1,577,907

See accompanying notes to financial statements.

9

CONSOLIDATED STATEMENTS OF OPERATIONSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2011 and 2010
Thousands of
U.S. dollars

Millions of yen
2011¥95,653
69,99725,656
21,628
4,028

2010¥74,694
56,47018,22420,040(1,816)2011$1,150,367
841,816
308,551
260,108
48,443

136
179
305
—
—
—
8
328
956

189
173
111
8
5
162
384
209
1,241

1,636
2,153
3,668
—
—
—
96
3,944
11,497

174
13
119

236
23
217

2,093
156
1,431

466
185
25
—
32

502
145
36
48
—

5,604
2,225
301
—
385

24
5
192
1,235
3,749

—
10
240
1,457
(2,032)

289
60
2,309
14,85345,087

Net income (loss) before minority interests
Net income (loss)

987
(518)
469
3,280
¥3,280

615
1,884
2,499
(4,531)¥(4,531)

11,870(6,230)5,640
39,447$39,447

Net income (loss) per share of common stock2011¥21.572010¥(29.80)

U.S. dollars
2011
$0.26

Net sales
Cost of sales (Note 17)
Gross profit
Selling, general and administrative expenses (Note 16 and 17)
Operating income (loss)
Other income:Interest and dividend
Rent income
Equity in earnings of affiliates
Gain on sales of property, plant and equipment
Gain on sale of investments in unconsolidated subsidiaries
Gain on change in interest in affiliates
Subsidy income
OthersOther expenses and losses:
Interest
Loss on sales of notes receivable
Foreign exchange loss
Amortization of transitional obligation for
employees’ retirement benefits (Note 8)
Brand fee expense
Loss on disposal of property, plant and equipment
Loss on impairment of fixed assets (Note 18)
Loss on amendment of retirement benefit plan
Loss on application of accounting standard for asset
retirement obligations
Loss on devaluation of investment securities
OthersIncome (loss) before income taxes and minority interests
Income taxes (Note 14)
Current
DeferredYen

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2011
Millions of yen

Thousands of
U.S. dollars

2011

2011

¥3,280$39,447(281)(3,379)(2)(24)

Net income before minority interests
Other comprehensive income:Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge
Foreign currency translation adjustments(587)(7,060)Total other comprehensive income(870)(10,463)¥2,410$28,984¥2,410$28,984——

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

See accompanying notes to financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2011 and 2010
Millions of yen

Balance at March 31, 2009

Number ofsharesCommonstock

Additional
paid in capital

Retainedearnings

166,885,530¥12,485¥19,601¥46,826 ¥(10,036)¥1,061¥6¥(1,231)

456
1,517

(3)
3

108
(1,123)(281)¥1,236

(2)
¥1

(587)
¥(1,710)(2)

Purchases of treasury stock(1,368)12,485

19,60140,927(10,038)

3,280

Net income(1)

Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2011
166,885,530

Unrealized gain on Deferred gains or Translation
securities, net of tax losses on hedge adjustments(4,531)

Net income
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2010
166,885,530

Treasury
stock

(456)

¥12,485¥19,601¥43,751 ¥(10,039)

Thousands of U.S. dollars
Commonstock
Balance at March 31, 2010
Net income

Additional
paid in capital

Retainedearnings

Unrealized gain on Deferred gains or Translation
securities, net of tax losses on hedge adjustments$150,150 $235,731 $492,207 $(120,722) $18,244$36 $(13,506)

39,447(12)Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2011

Treasurystock(5,484)(3,379)$150,150 $235,731 $526,170 $(120,734) $14,865(24)(7,060)$12 $(20,566)

See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENTS OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2011 and 2010
Millions of yen
Operating activities:
Income (loss) before income taxes and minority interests
Adjustments to reconcile income (loss) before income taxes andminority interests to net cash provided by operating activities:
Depreciation
Allowance for doubtful receivables
Warranty reserve
Employees’ retirement benefit
Directors’ retirement benefit
Gain on sale of investments in unconsolidated subsidiaries
Interest and dividend income
Interest expense
Loss on sales and disposal of property, plant and equipment
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
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 unconsolidated subsidiary
Proceeds from sales of investments in 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 of long-term loans receivable
Repayments of long-term loans receivable
OthersNet cash used in investing activities
Financing activities:
Increase (decrease) in short-term bank loans
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 in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at end of year (Note 15)

Thousands of
U.S. dollars

2011

2010

2011

¥3,749¥(2,032)$45,087

2,322
(244)
135
(559)
(30)
—
(136)
174
24
(305)

2,514
3
(10)
(182)
(10)
(5)
(189)
236
28
(111)

27,925(2,934)
1,624(6,723)(361)—(1,636)
2,093
289(3,668)(6,562)(6,109)10,027
2,830
1,022
53
(887)
5,504
136
(180)
189
(14)
5,635

12,356
6,596(4,940)(1,246)(989)(1,008)(240)
10,771
189
(246)
(636)
(23)
10,055(78,918)(73,470)
120,589
34,035
12,291
637(10,666)
66,194
1,636(2,165)2,273(169)
67,769(31)
612(1,326)
4
(106)
0
(6)
33
(21)
(841)

—
11
(2,028)
24
(20)
0
(13)
55
12
(1,959)

(373)
7,360
(15,947)
48(1,275)
0
(72)
397
(252)
(10,114)

206
(1)
(456)
(57)
(308)
(466)
4,020
31,993¥36,013(1,511)(2)(1,368)(19)(2,900)103
5,299
26,694¥31,9932,477(12)(5,484)(685)(3,704)(5,604)
48,347384,762$433,109

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 sheets, andconsolidated statements of operations, 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 sheets,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
statements of operations 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 new 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.
This amount is considered sufficient to coverpossible losses on collection.
(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

14

instruments, net of the applicable income taxes,
are reported as a component of net assets.
(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.
(Additional Information)
Effective from December 1, 2010, a domestic
consolidated subsidiary amended its employees’
retirement plans from a combination of lump-sum
defined benefit plans and tax–qualified pension
plan to a combination of lump-sum defined
benefit plans, defined benefit plans and defined
contribution plans. The domestic consolidated
subsidiary applied the accounting treatment
specified in the guidance issued by the AccountingStandards Board of Japan (“ASBJ”).
The effect of this plan amendment decreased
income before income taxes and minority interestsby ¥32 million ($385 thousand) for the year ended
March 31, 2011
(Additional Information)
Effective from the year ended March 31, 2010,
the Companies adopted the amended “AccountingStandard for retirement benefits” (ASBJ
Statement No.19, issued July 31, 2008)
This change had no effect on operating loss,
loss before income taxes and minority interests,
and unrecognized actuarial loss for the year ended
March 31, 2010.
(n) Directors’ retirement benefits
Domestic consolidated subsidiaries accrued
an estimated amount calculated in accordancewith its internal rule for retirement benefits for
directors.

(o) Amounts per share of common stock
Net income (loss) per share is computed basedon the weighted-average number of shares ofcommon 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 statementsof 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 for the year ended March 31, 2010
have been reclassified to conform to the year
ended March 31, 2011 presentation.

3. U.S. Dollar Amounts
U.S. dollar amounts are included solely forthe convenience of the readers and have beentranslated at the rate of ¥83.15=U.S.$1, theapproximate exchange rate prevailing in theJapanese foreign exchange market on March 31,
2011. This translation should not be construed asa representation that the yen amounts actually
represent, have been, or could be converted into
U.S. dollars.

4. Accounting Changes(a) Accounting standard for asset retirement
obligations
Effective from the year ended March 31, 2011,
the Companies adopted the new accounting
standard “Accounting Standard for Asset
Retirement Obligations” (ASBJ Statement
No.18, issued March 31, 2008) and “Guidanceon Accounting Standard for Asset Retirement
Obligations” (ASBJ Guidance No.21, issued March
31, 2008).
The effect of the change of this new standard
on operating income and income before income
taxes for the year ended March 31, 2011 isimmaterial.
(b) Accounting standard for Business Combinations
Effective from the year ended March 31,
2011, the Company adopted the new accounting

standard “Accounting Standard for Business
Combinations” (ASBJ Statement No.21, issued
December 26, 2008), “Accounting Standard
for Consolidated Financial Statements” (ASBJ
Statement No.22, issued December 26, 2008),“Partial amendments to Accounting Standard
for Research and Development Costs” (ASBJ
Statement No.23, issued December 26, 2008),“Revised Accounting Standard for Business
Divestitures” (ASBJ Statement No.7, revised
December 26, 2008), “Revised AccountingStandard for Equity Method of Accounting forInvestments” (ASBJ Statement No.16, revised
December 26, 2008) and “Revised Guidance on
Accounting Standard for Business Combinations
and Accounting Standard for Business
Divestitures” (ASBJ Guidance No.10, revised
December 26, 2008).
(c) Accounting standard for presentation ofcomprehensive income
Effective from the year ended March 31,
2011, the Company adopted the new accounting
standard “Accounting Standard for Presentationof Comprehensive Income” (ASBJ Statement
No.25, issued June 30, 2010).
However, “Accumulated other comprehensive
i n c o m e ” a n d “ To t a l a c c u m u l a t e d o t h e rcomprehensive income” for the fiscal year ended
March 31, 2010 are equivalent to “Valuation,translation adjustments” and “Total valuation,translation adjustments”.
(d) Presentation of income (loss) before minority
interests on consolidated statements ofoperations
Effective from the year ended March 31, 2011,
the Company adopted the new ordinance “Cabinet
Office Ordinance revising a part of the rules aboutterms, styles and making method of financial
statements” (Cabinet Office Ordinance No.5,
issued March 24, 2009) based on “AccountingStandard for Consolidated Financial Statements”(ASBJ Statement No.22, issued December 26,2008).
(e) Accounting standard for construction contracts
Effective from the year ended March
31, 2010, the Companies adopted the new
accounting standard “Accounting Standard forConstruction Contracts” (ASBJ Statement No.15,
issued December 27, 2007) and “Guidance on
Accounting Standard for Construction Contracts”(ASBJ Guidance No.18, issued December 27,2007). Effective from the year ended March 31,
2010, revenue and costs related to construction
contracts, subject to this accounting standard andguidance, were recognized by the percentage of15

completion basis.
This change had no effect on operating loss, loss before income taxes and minority interests andsegment information for the year ended March 31, 2010.

5. Securities
Information regarding marketable securities classified as other securities included in investment
securities were as follows:
Millions of yen

Equity securities

Equity securities

Acquisition
cost¥1,700¥1,7002011
Carrying
value¥3,716¥3,716

Unrealized Acquisition
gains
cost
¥2,016¥1,700¥2,016¥1,7002010
Carrying
value¥4,172¥4,172

Unrealized
gains¥2,472¥2,472Thousands of U.S. dollars
2011
Acquisition Carrying Unrealized
cost
value
gains
$20,445$44,691$24,246$20,445$44,691$24,246

Losses on devaluation of investment securities for the years ended March 31, 2011 and 2010 were ¥5
million ($60 thousand) and ¥10 million, respectively.
Non-marketable securities classified as marketable securities primary consist of negotiable certificate
of deposit of ¥17,500 million ($210,463 thousand) and ¥16,000 million as of March 31, 2011 and 2010,
respectively. Non-marketable equity securities as other securities primary consist of ¥170 million ($2,044
thousand) and ¥175 million as of March 31, 2011 and 2010, respectively.

6. Property, Plant and Equipment
Property, plant and equipment at March 31, 2011 and 2010 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
2011
2010
¥6,224¥5,98934,17934,18030,53930,151
462
479
6,779
6,932
118
98
469
854
78,77078,683(56,529)(55,231)¥22,241¥23,452

Thousands of
U.S. dollars
2011$74,853
411,052
367,276
5,556
81,5271,420
5,640
947,324(679,844)$267,480

Depreciation expense for the years ended March 31, 2011 and 2010 were ¥2,322 million ($27,925
thousand) and ¥2,514 million, respectively.

16

7. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding on March 31, 2011 and2010 ranged principally from 0.84% to 4.75% and 0.94% to 4.37%, respectively. Long-term debt on March
31, 2011 and 2010 consisted of the following:
Millions of yen
2011
2010
Loans, principally from Japanese banks and insurancecompanies maturing 2011 – 2013, interest 0.95% - 1.95%
Less current portion¥7,5007,500
700¥6,800¥7,5007,500—¥7,500Thousands of
U.S. dollars
2011$90,199
90,1998,419$81,780

The aggregate annual maturities of long-term debt at March 31, 2011 were as follows:Year ending March 31
2012
2013
2014
2015
2016 and later

Millions of yen
¥700
700
6,100
—
—
¥7,500Thousands of
U.S. dollars$8,4198,419
73,361——$90,199

The aggregate annual maturities of finance lease obligations at March 31, 2011 were as follows:Year ending March 31
2012
2013
2014
2015
2016 and later

Millions of yen
¥27
24
13
3
5
¥72

Thousands of
U.S. dollars
$324
289
156
36
61
$866

8. Employees’ Retirement Benefits
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.
The liability for employees’ retirement benefits at March 31, 2011 and 2010 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
2011
2010
¥13,794¥14,337(3,315)(2,626)
10,47911,711(1,852)(2,340)(188)(374)¥8,439¥8,997

Thousands of
U.S. dollars
2011$165,893(39,868)
126,025(22,273)(2,261)$101,491

17

The components of net periodic benefit costs for the years ended March 31, 2011 and 2010 were as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Recognized actuarial loss
OthersThousands of
U.S. dollars
2011$8,996
2,730
(565)
5,604
2,297
—
$19,062

Millions of yen
2011
2010
¥748
¥819
227
237
(47)
(28)
466
502
191
235
—
1
¥1,585¥1,766

Certain consolidated subsidiaries have adopted the conventional method in calculating their projected
benefit obligation.
Assumptions used in the accounting for the projected benefit obligation were as follows:
Discount rate
Expected rate of return on plan assets
Amortization period of transitional obligation
Amortization period of actuarial loss/gain

2011
2.0%
2.0%
15 years
10 years

2010
2.0%
2.0%
15 years
10 years

9. Contingent Liabilities
On March 31, 2011, contingent liabilities for loans guaranteed by the Company, principally on behalf of
non-consolidated subsidiaries and affiliated companies, amounted to ¥598 million ($7,192 thousand).

10. 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, 2011 and 2010, which would have beenreflected in the consolidated balance sheets 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

Millions of yen
2011
2010
¥394
¥763
569
757
(823)
(1,179)¥140¥341

Thousands of
U.S. dollars
2011$4,738
6,843(9,897)$1,684

Future lease payments (including the interest portion thereon) subsequent to March 31, 2011 and 2010
for finance leases accounted for as operating leases were as follows:

Due within one year
Due after one year

18

Millions of yen
2011
2010
¥81
¥201
59
140
¥140
¥341

Thousands of
U.S. dollars
2011
$974
710
$1,684

Periodic lease expenses, as a lessee, charged to income for the years ended March 31, 2011 and2010 were ¥ 166 million ($1,996 thousand) and ¥ 289 million, respectively. The pro forma amounts ofdepreciation for the years ended March 31, 2011 and 2010 would be calculated at ¥ 166 million ($1,996
thousand) and ¥289 million by using the straight-line method over the lease term with no salvage value.

11. Financial Instruments
Effective from the year ended March 31, 2010, the Companies adopted the new accounting standard“Accounting Standard for Financial Instruments” (ASBJ Statement No.10, issued March 10, 2008) and“Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.19, issued March
10, 2008).
Overview(a) Policy for financial instruments
The Companies invests in short-term deposits for fund management, where temporally cash surplus
is invested in low-risk financial instruments. The Companies raises a fund by bank borrowings. The
Companies uses derivatives only to reduce risk, and does not 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 tries to reduce this risk by the Companies’ sales management rules. Investments,
consisting of marketable securities of corporations, are exposed to stock price fluctuation risk in market.
To address this risk, the Companies monitors their stock price in every quarter. Operating payables suchas notes and accounts 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 4 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. (k) Derivative
financial instruments in Note 2. Summary of Significant Accounting Policies 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 violates theterms of financial covenants, the terms of borrowings may be possibly revised.
The terms of financial covenants incident to syndicated loan (¥7,000 million ($84,185 thousand) at
March 31, 2011) 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 ($612,736 thousand).
② In the consolidated statement of operations for the fiscal year ending March 31, the Company must
not record 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 reasonableestimates 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 12. Derivative financial instruments below are not an indicator of the market risk
associated with derivative transactions.

19Fair value of financial instructions
Carrying value of financial instruments on the consolidated balance sheets as of March 31, 2011 and2010, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen
2011
2010
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and time deposits¥18,513 ¥18,513— ¥15,993 ¥15,993—
Notes and accounts receivable, trade35,19535,191¥(4) 28,633
28,626¥(7)
Marketable securities and investment securities
23,177
24,683
1,506
21,83023,324
1,494¥76,885 ¥78,387¥1,502 ¥66,456 ¥67,943¥1,487
Total assets
Short-term bank loans¥11,413 ¥11,413— ¥10,515 ¥10,515—
Notes and accounts payable, trade27,34027,340—17,313
17,313—Long-term debt
6,800
6,799
¥(1)
7,500
7,499
¥(1)
¥45,553 ¥45,552¥(1) ¥35,328 ¥35,327¥(1)
Total liabilities
Derivatives
¥2
¥2
—
¥5
¥5
—
Thousands of U.S. dollars
2011
Carrying value Fair value Difference
Cash and time deposits$222,646 $222,646—
Notes and accounts receivable, trade423,271 423,223$(48)
Marketable securities and investment securities 278,737 296,849
18,112$924,654 $942,718 $18,064
Total assets
Short-term bank loans$137,258 $137,258—
Notes and accounts payable, trade328,803 328,803—
Long-term debt
81,78081,768$(12)$547,841 $547,829$(12)
Total liabilities
Derivatives
$24
$24
—

*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 time 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 anddiscounted using a rate which reflects safety interest and credit risk
③ Marketable securities and investment securities
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 12. Derivative Financial Instruments.

20(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2011 and 2010
were as follows:

Investment securities for which the market prices are not available

Millions of yen
2011
2010
¥567
¥1,076

Thousands of
U.S. dollars
2011$6,819Market 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, 2011 and 2010 were as follows:
Millions of yen
2011
2010
Due within Due after one Due after five Due after Due within Due after one Due after five Due after
one year year through year through ten year one year year through year through ten year
five years
ten years
five years
ten years
Cash and time deposits¥18,498——— ¥15,977———
Notes and accounts receivable, trade
35,060¥135—— 28,435¥198——
Marketable securities and investment securities:
Negotiable certificate of deposit
17,500——— 16,000———¥71,058¥135—— ¥60,412
¥198
—
—
Total
Thousands of U.S. dollars
2011
Due within Due after one Due after five Due after
one year year through year through ten year
five years
ten years
Cash and time deposits$222,465———
Notes and accounts receivable, trade 421,648 $1,624——
Marketable securities and investment securities:
Negotiable certificate of deposit 210,463———$854,576 $1,624
—
—
Total

(d) Annual maturities of long-term debt
Please refer to Note 7. Short-term Bank Loans and Long-term Debt

12. 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 inforeign 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 inspectedvalidity of the operation by the Corporate Auditing Office.
Derivatives designated as hedging instruments at March 31, 2011 and 2010 were as follows:21

Hedged item

Accounting in principle
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
Euro
British poundTo buy foreign currencies:
U.S. dollars
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
Euro
British poundTo buy foreign currencies:
U.S. dollars
Total

22

2010
Contract Fair value
amountdue after
one yearaccounts receivable

—
¥180
10

—
—
—

—
¥2
(0)

¥312
209
21

—
¥73
—

¥(2)
8
0

accounts payable

10

—

0

—

—

—

accounts receivable

1,773
408
11

—
—
—

—
—
—

1,233
122
—

—
—
—

—
—
—

781
¥3,173———267— ¥2,164

—
¥73

—
—

accounts payable

Hedged item

Accounting in principle
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
Euro
British poundTo buy foreign currencies:
U.S. dollars
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
Euro
British poundTo buy foreign currencies:
U.S. dollars
Total

Millions of yen
2011
Contract Contract Fair value Contract
amount amountamountdue after
one yearThousands of U.S. dollars
2011
Contract Contract Fair value
amount amountdue after
one year—accounts receivable $2,165
120

—
—
—

—
$24
(0)

accounts payable

120

—

0

accounts receivable

21,323
4,907
132

—
—
—

—
—
—

9,393
$38,160————

accounts payable13. Pledged Assets
The following assets were pledged as collateral at March 31, 2011 and 2010 to secure short-term bankloans amounting to ¥2 million ($24 thousand). (See Note 7):Land
Machinery and equipment, net
Buildings and structures, net

Millions of yen
2011
2010
¥581
¥581
95
185
2,190
2,344
¥2,866¥3,110Thousands of
U.S. dollars
2011$6,987
1,143
26,338$34,468

14. 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, 2011 and 2010 were approximately 39.7％.
The reconciliation between the statutory rate and effective tax rate of income taxes for the year ended
March 31, 2011 was as follows:
Statutory tax rate
Per-capita portion of Inhabitant Tax
Permanently non-taxable revenue
Permanently non-deductible expenses
Effects of elimination
Tax loss carry forwards
Change in valuation allowance
Difference in tax rates of consolidated subsidiaries
Other
Effective tax rate

2011
39.7%
0.9
(0.3)
1.6
(8.4)
(19.7)
4.6
(2.0)
(3.9)
12.5%

Reconciliation between the statutory tax rate and the effective tax rate for the year ended March
31, 2010 is not presented, as permitted, since the Company incurred a loss before income taxes.
The significant components of deferred tax assets and liabilities at March 31, 2011 and 2010 were as
follows:
Millions of yen
2011
2010
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

¥923
89
636
516
3,375
33
112
30
1,771
¥7,485(3,728)¥3,757

¥594
199
478
514
3,430
322
48
55
1,133
¥6,773(3,555)¥3,218

Thousands of
U.S. dollars
2011$11,100
1,070
7,649
6,206
40,589
397
1,347
361
21,299$90,018(44,835)$45,18323

Deferred tax liabilities:
Deferral of gain on sale of fixed assets
Unrealized gain on securities
Gain on deferred hedging
Asset retirement obligations
Foreign consolidated subsidiaries’ retained earning
Total deferred tax liabilities
Net deferred tax assets

(170)
(779)
(1)
(9)
(66)
¥(1,025)¥2,732

(178)
(954)
(2)
—
(61)
¥(1,195)¥2,023(2,044)(9,369)
(12)
(108)
(794)
$(12,327)$32,856

15. 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, 2011 and 2010 were presented asfollows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2011
2010
¥18,513¥15,993
17,50016,000¥36,013¥31,993

Thousands of
U.S. dollars
2011$222,646
210,463$433,109

16. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2011
and 2010 were as follows:
Millions of yen

Sales commission
Delivering expense
Reserve for warranty
Personal expense
Retirement allowance
Depreciation
Rent expense
Traveling expense
Research and development expense
Outside order expense
Others2011¥1,475
2,431
255
8,949
613
667
755
1,025
847
386
4,225

2010
¥1,167
1,871
128
9,210
638
915
786
946
1,103
484
2,792

Thousands of
U.S. dollars
2011$17,739
29,236
3,067
107,625
7,372
8,022
9,080
12,327
10,186
4,642
50,812

17. Research and Development Costs
Research and development costs charged to income were ¥1,399 million ($16,825 thousand) and ¥1,567
million for the years ended March 31, 2011 and 2010, respectively.

18. 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, 2010 amounted to ¥48 million.
The recoverable value of assets was calculated based in their estimated future cash flows, except land24

and buildings, for which the recoverable value was calculated by the market value.
The loss on impairment of fixed assets for the year ended March 31, 2010 consisted of the following:
Millions of yen
2010
Numazu-shi, Shizuoka-ken, JAPAN:
Land
Buildings and structures
Total

Idle property
Idle property

¥45
3
¥48

19. Shareholders’ Equity
The current Corporation Law of Japan (the “Law”) went into effect on May 1, 2006. The Law provides
that an amount equal to 10% of the amount to be distributed as distribution of additional paid in capital(other than the capital reserve) and retained earning (other than the legal reserve) be transferred tothe 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 theshareholders, or by the Board of Directors if certain conditions are met, but neither the capital reserve nor
the legal reserve is available for distributions.

20. Related Party Transactions
During the years ended March 31, 2011 and 2010, the Companies had operational transactions with
Toshiba Corporation, a 22.1% shareholder of the Company and NuFlare Technology, Inc., a 21.3% affiliateof the Company.
A summary of the significant transactions with Toshiba Corporation for the years ended March 31, 2011
and 2010 were as follows:
Millions of yen
2011
2010
For the year:
Payment of brand fee
Note: Brand fee rate was contracted beforehand.

¥185

¥165

Thousands of
U.S. dollars
2011$2,225

A summary of the significant transactions with NuFlare Technology, Inc. for the years ended March 31,
2011 and 2010 were as follows:
Millions of yen
2011
2010
For the year:
Rent income for land, buildings and structures
Note: Rent price was market price.

¥125

¥113

Thousands of
U.S. dollars
2011$1,50325

21. Comprehensive Income
Total comprehensive income for the year ended March 31, 2010 was as follows:
Millions of yen
2010
Total comprehensive income attributable to:Parent company’s interest
Minority interests
Total comprehensive income¥(3,970)—¥(3,970)

Other comprehensive income for the year ended March 31, 2010 was as follows:
Millions of yen
2010
Other comprehensive income:Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge
Foreign currency translation adjustments
Total other comprehensive income

¥456
(3)
108
¥561

22. Net Income (Loss) and Net Assets per Share
Net income (loss) and net assets per share for the years ended March 31, 2011 and 2010 were as
follows:Yen
Net income (loss) per share
Net assets per share2011¥21.57429.672010¥(29.80)416.82

U.S. dollars
2011
$0.26
5.17

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

Weighted-average number of shares of common stockThousands of shares
2011
2010
152,035
152,039

Net income (loss)
Net income (loss) not applicable to shareholders of common stock
Net income (loss) applicable to shareholders of common stock

Millions of yen
2011
2010
¥3,280¥(4,531)——¥3,280¥(4,531)

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

Number of shares at year-end

26

Thousands of shares
2011
2010
152,034
152,037

Thousands of
U.S. dollars
2011$39,477—$39,447

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

Millions of yen
2011
2010
¥65,325¥63,372——¥65,325¥63,372

Thousands of
U.S. dollars
2011$785,628—$785,628

23. Segment Information
Effective from the year ended March 31, 2011, the Companies adopted the new accounting standard“Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related information”(ASBJ Statement No.17, revised March 27, 2009) and “Guidance on the Accounting Standard forDisclosures about Segments of an Enterprise and Related information” (ASBJ Guidance No.20, issued
March 21, 2008). Under the standard and the guidance, disclosures about segments of an enterprise andrelated information are required to report based on management approach.
(A) General information about reportable segments
The reported segments of the Companies are the business units for which the Company is able toobtain 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 reported segment profit or loss, segment assets and other material items
The accounting treatment method for the reported business segment is generally the same as describedin “2. Summary of Significant Accounting Policies”. Reportable segment income is calculated on the basisof operating income. The prices of intersegment transactions and transfers are calculated based on themarket prices.
(C) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2011 and 2010 wereas follows:Year ended March 31, 2011

Sales
Segment income
Segment assets
Depreciation
Capital expenditure

Millions of yen
Reportable segments
Other Products
Total
Adjustments Consolidated
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment¥49,290 ¥23,618 ¥11,382 ¥84,290 ¥13,539 ¥97,829 ¥(2,176) ¥95,653
1,338
1,037
945
3,320
456
3,776
252
4,028
54,862
29,154
7,538
91,55424,441 115,995
15,208 131,203
1,205
535
221
1,961
360
2,321
—
2,321
893
409
527
1,829
215
2,044
—
2,044

27

Year ended March 31, 2010

Sales
Segment income
Segment assets
Depreciation
Capital expenditure
Year ended March 31, 2011

Sales
Segment income
Segment assets
Depreciation
Capital expenditure

Millions of yen
Reportable segments
Other Products
Total
Adjustments Consolidated
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment¥30,781 ¥31,334¥5,734 ¥67,849¥8,281 ¥76,130 ¥(1,436) ¥74,694(4,309)2,942(195) (1,562) (1,131) (2,693)
877(1,816)46,006
26,292
5,483
77,781
23,458 101,239
14,567 115,806
1,263
564
273
2,100
414
2,514
—
2,514
263
73
33
369
256
625
—
625
Thousands of U.S. dollars
Reportable segments
Other Products
Total
Adjustments Consolidated
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment$592,784 $284,041 $136,885 $1,013,710 $162,826 $1,176,536 $(26,169) $1,150,367
16,091
12,472
11,36539,9285,484
45,412
3,031
48,443659,796
350,619
90,655 1,101,070
293,939 1,395,009
182,898 1,577,907
14,4926,434
2,658
23,584
4,329
27,913—
27,913
10,7394,919
6,338
21,996
2,586
24,582—
24,582

Note: ”Other Products” is a business segment that is not included in reportable segments. It included
business activities of Electronic controls, etc.
(D) Difference between total reportable segments and consolidated financial statement
The main differences between total reportable segments and consolidated financial statements for theyears ended March 31, 2011 and 2010 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

28

Millions of yen
2011
2010
¥84,290¥67,849
13,5398,281(2,176)(1,436)¥95,653¥74,694

Thousands of
U.S. dollars
2011$1,013,710
162,826(26,169)$1,150,367

Millions of yen
2011
2010
¥3,320¥(1,562)456(1,131)
252
877¥4,028¥(1,816)

Thousands of
U.S. dollars
2011$39,928
5,484
3,031$48,443

Millions of yen
2011
2010
¥91,554¥77,781
24,441
23,45822,131
22,337(6,923)(7,770)¥131,203¥115,806

Thousands of
U.S. dollars
2011$1,101,070
293,939
266,158(83,260)$1,577,907

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 year ended March 31, 2011 was follows:Japan¥45,576

Millions of yen
2011
North America
Asia¥7,536¥39,774

Other¥2,767

Total¥95,653Japan$548,118

Thousands of U.S. dollars
2011North America
Asia
Other
$90,631$478,340$33,278

Total$1,150,367

Note: Sales figures are classified based on the customer locations.
Property, plant and equipment information about geographical areas for the year ended March 31,
2011 was follows:Japan¥21,181Millions of yen
2011
North America
Asia
¥199
¥861

Total
¥22,241

Japan$254,732

Thousands of U.S. dollars
2011North America
Asia$2,393$10,355

Total$267,480③ Information about major customers
Information about major customers is not disclosed, because net sales to any customers did notexceed 10% of the consolidated net sales for the year ended March 31, 2011.
(F) Information about impairment loss on long-lived assets for each reportable segment
There was no applicable matter for the year ended March 31, 2011.
(G) Information about amortization of goodwill and unamortized balance for each reportable segment
There was no applicable matter for the year ended March 31, 2011.
(H) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the year ended March 31, 2011.
(I) Segment information for the year ended March 31, 2010
① Business segment information
The Companies’ business is classified into the following three segments based on the similarities oftype and nature of business:
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
Other Products: Hydraulic equipment, Electronic controls

29The tables bellow present sales, operating expenses and operating income information by business segment.
Year ended March 31, 2010

Sales
Operating expenses
Operating income
Identifiable assets
Depreciation
Capital expenditures

Millions of yen
Molding
Machinery¥30,781
35,090(4,309)46,006
1,263
263

Machine Tools Other Products¥31,334
28,392
2,942
26,292564
73¥14,015
15,341(1,326)28,941
687
289

Eliminations
and corporate¥(1,436)(2,313)877
14,567——

Consolidated¥74,694
76,510(1,816)
115,806
2,514
625② Geographic segment information
Geographic segment information of the Companies for the year ended March 31, 2010 was as follows:Year ended March 31, 2010
Sales
Operating expenses
Operating income
Identifiable assets

Japan¥69,716
71,976(2,260)89,004

North America¥5,391
5,684
(293)
3,567

Millions of yen
Asia
Total
¥7,628¥82,735
7,527
85,187101(2,452)
5,898
98,469Eliminations Consolidated¥(8,041)¥74,694(8,677)76,510636(1,816)
17,337
115,806③ Sales to foreign customers
Sales to foreign customers for the year ended March 31, 2010 was as follows:Year ended March 31, 2010
North America
Sales to foreign customers¥7,509Net sales—
Ratio of Sales to foreign Customers (%)
10.1

Millions of yen
Asia
Other
¥26,051¥2,203
—
—
34.8
3.0

Total
¥35,763
74,69447.9

24. 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, 2011, were approved at the meeting of theBoard of Directors held on April 28, 2011:
Cash dividends (¥3.00 = $0.04 per share) ¥456 million ($5,484 thousand)30

Report of Independent Auditors

31

Directors & Auditors

Directors President

Yukio Iimura
Senior Managing Director
Akinori Ide
Managing Directors
Hiroshi Hanai
Yoshihiro Kishimoto
Directors
Satoshi Hironaka
Masayuki Yagi
Shigetomo Sakamoto
Makoto Tsuji
Kazuo Takamura
Auditors

Masahiro Suzuki
Teruyuki Makino
Takanao Suzuki
Kazuo Tanigawa

32