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

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2017
(Based on Japanese GAAP)
November 7, 2017
Company name:Toshiba Machine Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

Inquiries:

Executive Officer and General Affairs
Department Senior Manager

Kazuya Ogawa

TEL

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

November 9, 2017
December 4, 2017

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

Yes
Yes

055-926-5141(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)(1) Consolidated operating results (cumulative)Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2017
56,110
10.4
1,762
23.3
3,847 101.7
2,807 103.1
Six months ended September 30, 2016
50,836 (13.2)
1,429(1.3)
1,907 (18.4)
1,382 (57.7)
Earnings per share

Diluted earnings per share

Yen
23.26
9.09

Six months ended September 30, 2017
Six months ended September 30, 2016

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
148,467
140,530

As of September 30, 2017
As of March 31, 2017

Equity ratio

Millions of yen
80,191
77,120

%
54.0
54.9

2. Cash dividends
Annual dividends per share

Year ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
6.00
7.00

Yen–

Yen
6.00

Yen
12.00

–

7.00

14.00

Year ending March 31, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Full year

Millions of yen
122,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
9.6
5,400
20.7
7,400
36.9
5,300 198.4
43.91

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

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

No
No

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2017

149,885,530 shares As of March 31, 2017

166,885,530 shares

Number of treasury shares at the end of the period
As of September 30, 201729,197,927 shares As of March 31, 201746,195,547 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2017

120,688,737 shares Six months ended September 30, 20162

152,020,467 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade29,91439,44433,76936,715

Securities
Merchandise and finished goods

146
6,529

291
6,515

Work in process
Raw materials and supplies

20,10082

24,75074

Deferred tax assets
Other

2,772
2,823

2,936
3,036

Allowance for doubtful accounts
Total current assets

(197)

(195)

101,615

107,894

36,285

39,122(26,907)(26,974)

9,377

12,148Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehiclesAccumulated depreciation and impairment loss
Machinery, equipment and vehicles, net

25,32024,838(23,119)(22,575)

2,200

2,263

Land

6,439

6,453

Leased assets
Accumulated depreciation and impairment loss

227
(180)

272
(195)

Leased assets, net

46

76

Construction in progress
Other

2,603
7,114

99
7,397

(6,656)(6,755)

Accumulated depreciation and impairment loss
Other, net

458

642

21,125

21,683749

816

Total intangible assets

749

816

Investments and other assets
Investment securities

16,346

17,354

2387

2193

Other
Allowance for doubtful accounts

687
(104)

691
(87)

Total investments and other assets

17,03918,07338,91540,572

140,530

148,467

Total property, plant and equipment
Intangible assets
Other

Long-term loans receivable
Deferred tax assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

26,09728,334

Short-term loans payable
Income taxes payable

10,590573

14,640804

Accrued expenses
Provision for product warranties

4,785
530

5,051
560

Other

4,904

6,935

Total current liabilities

47,481

56,327Long-term loans payable
Long-term accounts payable - other

4,300
5–
5

Deferred tax liabilities
Provision for directors' retirement benefits

2,275
29

2,509
25

Net defined benefit liability
Asset retirement obligations

9,244
49

9,303
49

Non-current liabilities

Other

25

53

15,92911,94863,41068,275

Capital stock
Capital surplus

12,484
19,60012,484
11,538Retained earnings
Treasury shares

67,534(25,898)

68,150(16,368)

Total shareholders' equity

73,72275,804

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,210

3,751

Deferred gains or losses on hedges
Foreign currency translation adjustment11,600–
1,951

Remeasurements of defined benefit plans(1,415)(1,315)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

3,397

4,387

77,12080,191

140,530

148,467

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

Six months ended

September 30, 2016

September 30, 2017

Net sales
Cost of sales

50,83636,295

56,11040,066Gross profit

14,54016,043

Selling, general and administrative expenses

13,111

14,280Operating profit

1,429

1,762

Interest income
Dividend income

14141

22303

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

30
902

23459––

205
1,309

Non-operating income

Foreign exchange gains
cancellation fee income
Other50441,138

2,368

Interest expenses
Brand fee expense

60
9750
59

Foreign exchange losses
Other413
89–
173

Total non-operating expenses

661

283

1,907

3,847

Gain on sales of non-current assets

48

Total extraordinary income

482

9

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

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

2

9

1,909

3,846

Income taxes - current

348

1,200

Income taxes - deferred

177

(161)

Profit before income taxes

Total income taxes

526

1,039

Profit

1,382

2,807

Profit attributable to owners of parent

1,382

2,807

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2016

September 30, 2017

1,382

2,807

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

(115)
5540
(1)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(1,811)
113

351
95

34(1,806)

989(423)

3,797

(423)

3,797

––

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2016

Six months ended
September 30, 2017

Cash flows from operating activities
Profit before income taxes
Depreciation

1,909
811

3,846
1,044

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

183(84)–(18)

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for directors' retirement

(52)

30

benefits
Increase (decrease) in net defined benefit liability

(7)

(3)

244

155

Interest and dividend income
Interest expenses

(155)
60

(325)
50

–

(1,309)(2)0cancellation fee income
Loss (gain) on sales and retirement of property, plant andequipment and intangible assets
Share of (profit) loss of entities accounted for using equity
methodDecrease (increase) in notes and accounts receivable - trade

(902)

(459)

6,902

2,728

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

2,018(2,862)(4,627)
2,364

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

1,334
(297)

1,957
266

Increase (decrease) in deposits received
Increase (decrease) in accounts payable - other2(285)

101(29)

Other, net

408

(168)

Subtotal

9,226

5,604

Interest and dividend income received

381552

Interest expenses paid
cancellation fee income received(71)–(51)1,309

Income taxes paid

(776)

(980)

Net cash provided by (used in) operating activities

8,759

6,434

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(751)
2(1,568)
14

Purchase of intangible assets
Payments of short-term loans receivable

(33)
(2)

(142)
(3)

Collection of short-term loans receivableCollection of long-term loans receivable

16

2
1

Cash flows from investing activities

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

79(9)

(767)

(1,704)

(Millions of yen)Six months ended
September 30, 2016

Six months ended
September 30, 2017

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable

(679)
(250)

–(250)

Purchase of treasury shares
Cash dividends paid

(0)
(912)

(1)
(724)

Other, net

(11)

(13)

Net cash provided by (used in) financing activities(1,853)(988)

Effect of exchange rate change on cash and cash equivalents(1,351)260

Net increase (decrease) in cash and cash equivalents

4,786

4,001

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from42,93230,060(406)–

47,312

34,061change of accounting period of consolidated subsidiaries
Cash and cash equivalents at end of period8