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 fail 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, 20156

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, 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, 2015)
Company Name:TOSHIBA MACHINE CO., LTD.

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

1938

Capital:¥12,485 million (US$103,894 thousand)Shares of Common Stock
Issued and Outstanding:

166,885,530 shares

Number of Shareholders:

11,070

Number of Employees:

1,853 (Consolidated: 3,466)

1

Foreword 2015
The Toshiba Machine Group started its midterm management plan called the “TM AC Plan
(Toshiba Machine Adapt to the Change Plan)” on April 1, 2010. With “advancement and expansion”
as its fundamental concept, we simultaneously implemented the advancement and expansion
strategies. The advancement plan focused on creation of advanced products which could
contribute to the new industrial pyramid concerned with energy and the environment. The
expansion strategy aimed at revitalization of existing products to expand our market share in theemerging markets which made up the broad base of the current industrial pyramid.
In Japan, the consumption tax rate was raised on April 1, 2014. This led to sluggish
consumption causing a drop in economic growth at the beginning of the year. The economy slowly
recovered in the second half of the year as export business expanded and corporate revenue
increased due to the low yen rate. While the overseas economy was in an upward trend owing to
the healthy US economy, the emerging economies in Southeast Asia, China and Thailand inparticular, continued to slow down.
Our overall group business rebounded due to the demand for renovation of aging equipment aswell as increased demand for capital investment and machine tools from overseas because of the
low yen rate. Note however, our business confidence varies with the target market or product.
In this economic climate, the group started its midterm management plan called the “TM AC
Plan Advanced II” on April 1, 2014. “Advancement and expansion” continued to be thefundamental concept. Based on this, we implemented a wide variety of measures to increase our
global brand strength by developing new products targeting both domestic and international
markets, discover new markets, ensure orders, and enhance revenue sources.
As a result, consolidated orders received was ¥124,754 million (US$1,038,146 thousand) with a
3.8% increase from the previous term. Consolidated net sales was ¥124,373 million (US$1,034,975
thousand) with a 10% increase from the previous term.
As for profits and losses, an operating income was ¥4,788 million (US$39,844 thousand) with a
3.5% increase from the previous term and a net income was ¥4,312 million (US$35,882 thousand)with a 3.0% decrease from the previous term.
The dividend for the fiscal year ended March 31, 2014 was ¥8.00 (US$0.07).
While a lower growth rate in some developing countries intensified competition with domestic
and international businesses, and sharp rises in procurement prices due to the low yen rate havecontinued to be a concern, we anticipate recovery of our business environment due toimprovement of the domestic economy and increased orders in some regions or for some productsin overseas markets.

2

Under the “TM AC Plan Advanced Ⅲ” initiated on April 1, 2015, “advancement and expansion”
continues to be the fundamental concept, and the three sub-concepts, “establishment of brandstrength”, “multi-domestic and global governance”, and “promotion of individual globalization” hasbeen added to support the fundamental concept. Based on the combination of the fundamental
concept and the sub-concepts, we are working to expand sales and increase the market presenceof the group in the prospective global markets.
The marketing strategy has been developed based on the prospect for mid- to long-term
market globalization. It includes identification of active markets, concentrating management
resources on these markets, and further business globalization in growing markets. Also, as
manufacturers and sales representatives, we aim to improve our direct sales capability in order tosupport diversified customer needs.
The development and technical strategy focuses on creation of new products. “Energy and theenvironment”, “improvement of labor productivity”, “use of new materials” such as carbon fiber
reinforced plastics (CFRP), and “application of the Internet of Things (IoT) technologies” tomachines are our group’s important keywords in such product creation. The group is also
developing the system engineering business to respond to customer needs which are shifting from“equipment (object)” to “systems (object and activity)”.
The production and procurement strategy is being implemented to Japanese and overseas
factories. Machine tools and extrusion machines produced and sold in Japan are regaining pricecompetitiveness due to the low yen rate. At the Japanese factories, we are now producing evenmore cost-competitive products by improving labor productivity and rearranging the production
process. Outside Japan, the low yen rate is working against the injection molding machines anddie casting machines produced at overseas factories. In addition to rearrangement of the
production process, we at the overseas factories aim to promote further procurement optimization
and build a production framework which withstands foreign exchange risks or external variances.
The Toshiba Machine group is committed to exhaustive quality and environmental control,
compliant with ISO 9001 and 14001. We are also actively engaging in three key areas: training
employees who will lead the future of our group, compliance with laws, and corporate social
responsibility programs including social services.

3

FINANCIAL HIGHLIGHTS (consolidated)
Net sales

2015

2014

2013

2012

2011

¥124,373¥113,062¥120,899¥119,550¥95,713¥90,734¥81,481¥87,294¥88,312¥69,997¥28,851¥26,956¥25,527¥23,796¥21,628¥4,788¥4,625¥8,078¥7,442¥4,088¥6,522¥6,507¥12,239¥9,149¥3,749¥2,210¥2,063¥4,348¥2,428¥469¥4,312¥4,444¥7,891¥6,721¥3,280¥8,748¥6,893¥9,468¥6,840¥2,410¥28.36¥29.23¥51.91¥44.21¥21.57

¥8.00

¥7.50

¥9.00

¥9.00

¥4.50

¥161,975¥148,680¥142,239¥142,297¥131,203¥93,669¥84,217¥79,400¥71,101¥65,325¥2,194¥1,767¥770¥1,052¥2,044¥1,966¥1,841¥2,065¥2,276¥2,322¥1,663¥1,551¥1,566¥1,582¥1,399

3,466

3,454

3,197

3,157

3,140

$1,034,975
Cost of sales$755,047
Selling, general andadministrative expenses
Operating income$240,084$39,844

Income before income
taxes and minority interests
Income taxes$54,273$18,391

Net income$35,882
Comprehensive income$72,796
Per common share:
Net income$0.24

Cash dividends$0.07
Total assets$1,347,882
Net assets$779,471
Capital expenditure(property, plant and equipment)
Depreciation$18,257$16,360

R & D Cost

$13,839
Number of employees

Note1: In millions of yen (thousands of U.S. dollars) except for number of employees and per-share data.
Note2: Yen amounts have been translated into U.S. dollars, for convenience only, at the exchange rate of¥120.17=U.S.$1. See Note 3 of the Notes to the Consolidated Financial Statements.

4Overseas Operations for Fiscal Year Ended March 31,2015
In Japan, the consumption tax was raised in
April of the fiscal year ended March 31, 2015.

Net Sales
Millions of yen

This led to sluggish consumption causing a dropin economic growth at the beginning of the year.
The economy slowly recovered in the second
half of the year as export business expanded
and corporate revenue increased due to the low
yen rate. Although the overseas economy isgenerally in an upward trend owing to thehealthy US economy, the emerging economies
in Southeast Asia, China and Thailand inparticular, continued to slow down.
Amidst the background of such an economic
climate, the group started its midterm
management plan called the “TM AC Plan
Advanced II” in 2014. While “promotion ofindividual globalization” was added to theconcept, “advancement and expansion”
continued to be the fundamental concept fromthe previous consolidated fiscal year. Based onthese, we implemented a wide variety ofmeasures to increase our global brand strength
by developing new products targeting both
domestic and international markets, discover
new markets, ensure orders, and enhancerevenue sources.
Implementation of the plan stimulated
automobile and IT capital investments in China,
Southeast Asia, and North America. As a result,the consolidated overseas sales for this term
totaled ¥72,482 million (US$603,162 thousand),a 9.5% increase from the previous term.
We started the “TM AC Plan Advanced III”
on April 1, 2015. By combining the fundamental
concept “advancement and expansion” with thethree supporting sub-concepts, “establishmentof brand strength”, “multi-domestic and global
governance”, and “promotion of individualglobalization”, we will generate global brandstrength, cultivate the global market, and workwith other group companies to become a truly
global corporation.

120,899

119,550
24,977
95,713
22,845

113,062

18,802

16,800Machine28,141 Tools

23,04828,902

28,83923,57573,21473,19565,73449,293

2011

Total
124,373 Other
Products
8
16,20

2014

2013

2012

80,024 Moldingry
Machine2015

Total Sales & Overseas Sales
Millions of yen

119,550

120,899

124,373es
Total Sal

113,062

95,713

66,90874,594

66,19250,134

2011

2012

2013

2014

72,482 Overseas

Sales

2015

Export Percentages by Major Products
HydraulicEquipment
Machine
Tools

Other
Products

3%

Molding
Machinery

2%

18%
77%

5

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

Beijing Office

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

Tianjin Office

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

Wuhan Office

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

TOSHIBA MACHINE (SHANGHAI) CO., LTD.

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

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

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

Guangzhou Office

Room No. 2106, No.22, Shishan Road,(SND) Suzhou, Jiangsu, 215011,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)512-6855-0387
Fax : [86]-(0)512-6855-0562

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

Dalian Office

Dongguan OfficeSuzhou Office

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

Xiamen Office

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

Chongqing Office

Room 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

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

TOSHIBA MACHINE HONG KONG LTD.
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.
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
No. 24 Tuas Avenue 4,
Singapore 639374, 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)4-2220-8700~1
Fax : [84]-(0)4-2220-8702

■ America ■Ho Chi Minh Office

9th Floor, Unit 9.7B, E-Town Building,
364 Cong Hoa Street, Ward 13, Tan Binh
District, Ho Chi Minh City, VIETNAM
Tel : [84]-(0)8-3810-8658
Fax : [84]-(0)8-3810-8657

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

Chennai-Bangalore Highway,
Chembarambakkam, Chennai, 600123,
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

Chennai-Bangalore Highway,
Chembarambakkam, Chennai, 600123,
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

Av. Mineral De Valenciana 202, Santa Fe,
Silao, Silao Guanajuato 36275, MEXICO
Tel : [52]-472-748-5400
Fax : [52]-472-748-5429

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, 2015
ASSETS
Current assets:
Cash and deposits (Notes 13 and 16)
Marketable securities (Notes 6, 13 and 16)
Notes and accounts receivable, trade (Note 13)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Deferred tax assets (Note 15)
Other current assets (Notes 13 and 14)
Total current assets

Millions of yen
2014
2015

Thousands of
U.S. dollars
2015¥20,708
19,50043,751(131)
43,620¥21,779
19,50037,952(178)
37,774$172,323
162,270364,076(1,090)362,986

9,229
22,47366
31,7683,376
2,765
121,737

6,273
20,97175
27,3192,898
2,206
111,476

76,800187,010549
264,359
28,09423,0081,013,040

Property, plant and equipment, net (Notes 7 and 12)

20,715

21,109172,381

Intangible assets (Note 8)

3,832

3,667

31,888

7,098
7,714
62
86
731
15,691¥161,975

5,738
5,823
78
60
729
12,428¥148,680

59,06664,192
516
716
6,083
130,573$1,347,882

Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates (Note 13)
Other securities (Notes 6 and 13)
Long-term loans
Deferred tax assets (Note 15)
Other investments
Total investments and other assets
Total assets

See accompanying notes to financial statements.

8

Millions of yen
2014
2015

Thousands of
U.S. dollars
2015

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Notes 9 and 13)
Notes and accounts payable, trade (Note 13)
Income taxes payable (Note 15)
Accrued expenses
Warranty reserve
Other current liabilities (Note 9)
Total current liabilities¥11,91328,086
1,141
5,238
599
5,277
52,254¥11,296
24,675
369
5,350
695
4,941
47,326$99,135
233,719
9,495
43,588
4,985
43,912434,834

Long-term liabilities:
Long-term debt (Notes 9 and 13)
Long-term accounts payable, otherAccrued directors’ retirement benefits
Net retirement benefit liability (Note 10)
Asset retirement obligations
Deferred tax liabilities (Note 15)
Other long-term liabilities (Note 9)
Total long-term liabilities
Total liabilities

5,300
9
45
8,106
47
2,492
53
16,05268,3065,300
940
10,27946
1,411
52
17,13764,463

44,10475
374
67,454391
20,737442
133,577
568,411

12,485
19,60164,337(10,043)
86,38012,485
19,601
59,319(10,041)
81,364

103,894
163,111535,383(83,573)
718,815

4,074
3,780
(565)
7,289
93,669¥161,975

2,649
1,601
(1,397)
2,853
84,217¥148,680

33,902
31,456(4,702)60,656
779,471$1,347,882

Contingent liabilities (Note 11)
Net assets:
Shareholders’ equity: (Note 21)
Common stock
Authorized –360,000,000 shares
Issued–166,885,530 shares
Additional paid-in capital
Retained earnings
Treasury stock, at cost (14,860,750 shares in 2015, 14,856,937 shares in 2014)
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on securities, net of tax
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
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, 2015

Net sales
Cost of sales (Note 18)
Gross profit
Selling, general and administrative expenses (Notes 17 and 18)
Operating income
Other income:Interest and dividend income
Rent income
Foreign exchange gain
Equity in earnings of affiliates
Gain on sales of property, plant and equipment
Gain on sales of investments in other security (Note 6)
OthersOther expenses and losses:
Interest expense
Amortization of transitional obligation for employees’
retirement benefits (Note 10)
Brand fee expense
Loss on disposal of property, plant and equipment andintangible assets
Loss on impairment of fixed assets (Note 19)
Loss on devaluation of investment in unconsolidated
subsidiaries
OthersMillions of yen
2014
2015
¥113,062¥124,373
81,48190,734
31,581
33,63926,95628,851
4,625
4,788

Thousands of
U.S. dollars
2015$1,034,975
755,047
279,928240,084
39,844

259
121
941
1,420
7
8
235
2,991

260
195
589
1,763
48
3
235
3,093

2,155
1,007
7,831
11,81758
67
1,955
24,890

150

143

1,248

463

463

240

217

24

26

10

—

—

20

3,853

1,997
200
83

—

370
1,257

342
1,211

3,080
10,461

6,522

6,507

54,273

Net income before minority interests
Net income

2,052
158
2,210
4,312
¥4,312

1,809
254
2,063
4,444
¥4,444

17,076
1,315
18,39135,882$35,882

Net income per share of common stock (Note 23)

2015¥28.362014¥29.23

U.S. dollars
2015
$0.24

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

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2015

Net income before minority interests
Other comprehensive income: (Note 20)
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge, net of tax
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
Total comprehensive income
Total comprehensive income attributable to parent company’s interest
Total comprehensive income attributable to minority interests

Millions of yen
2014
2015
¥4,444¥4,312Thousands of
U.S. dollars
2015$35,882

1,425
—
2,179
824
8
4,436
¥8,748

427
0
2,022
—
—
2,449
¥6,893

11,858—18,1336,856
67
36,914$72,796

8,748
¥—

6,893
¥−

72,796$—

See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2015
Millions of yen

Deferred gains orRemeasurements
Number of Common Additional paid Retained Treasury Unrealized gain on
Translation
Total netlosses on hedge,of defined benefit
sharesstock
in capital earnings
stock securities, net of tax
adjustments
assetsnet of tax
plans
Balance at March 31, 2013 166,885,530¥12,485¥19,601¥56,306 ¥(10,040)¥2,222¥(0)¥(1,174)¥—¥79,400
Net income
4,444
4,444
Change in scope of consolidation
(215)
(215)
Purchases of treasury stock(1)(1)
Cash dividends(1,216)(1,216)
Net changes in items other than
427
0
2,775
(1,397)
1,805
shareholders’ equity
Balance at March 31, 2014 166,885,530
12,485
19,601
59,319(10,041)
2,649
—
1,601
(1,397)
84,217
Adjustments by accounting policy changes
1,922
1,922
Balance at March 31, 2014 after adjustments 166,885,530
12,485
19,601
61,241(10,041)
2,649
—
1,601
(1,397)
86,139Net income
4,312
4,312
Purchases of treasury stock(2)(2)
Cash dividends(1,216)(1,216)
Net changes in items other than
1,425
—
2,179
832
4,436
shareholders’ equity
Balance at March 31, 2015 166,885,530¥12,485¥19,601¥64,337 ¥(10,043)¥4,074¥—¥3,780¥(565) ¥93,669
Thousands of U.S. dollars
gains orRemeasurements
Common Additional paid Retained Treasury Unrealized gain on Deferredon hedge, Translation of defined benefit Total net
stock
in capital earnings
stock ecurities, net of tax losses
adjustments
assetsnet of tax
plans
Balance at March 31, 2014
$103,894 $163,111 $493,626 $(83,557) $22,044$—$13,323 $(11,625) $700,816
Adjustments by accounting policy changes
15,994
15,994
Balance at March 31, 2014 after adjustments
103,894
163,111509,620(83,557)
22,044—
13,323(11,625) 716,810
Net income
35,88235,882
Purchases of treasury stock
(16)
(16)
Cash dividends(10,119)(10,119)
Net changes in items other than
11,858—18,133
6,923
36,914
shareholders’ equity
Balance at March 31, 2015
$103,894 $163,111 $535,383 $(83,573) $33,902$—$31,456$(4,702) $779,471
See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENT OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2015

Operating activities:
Income before income taxes and minority interests
Adjustments to reconcile income before income taxes and minority
interests to net cash provided by operating activities:
Depreciation
Amortization of goodwill
Allowance for doubtful receivables
Warranty reserve
Employees’ retirement benefit
Directors’ retirement benefit
Net defined benefit liability
Interest and dividend income
Interest expense
Gain or loss on sales and disposal of property, plant and equipment and intangible assets
Gain on sales of investments in other securities
Equity in earnings of affiliates
Loss on impairment of fixed assets
Changes in operating assets and liabilities:
Notes and accounts receivable, trade
Inventories
Notes and accounts payable, trade
Advances received
Accrued expenses
Long-term accounts payable, other
Others
Sub totalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by operating activities
Investing activities:
Proceeds from sales of investments in other security
Acquisition of investment in unconsolidated subsidiaries
Payments for contributions in capital of unconsolidated subsidiaries
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Increase (decrease) in short- term loans receivable
Repayments of long-term loans receivable
OthersNet cash used in investing activities
Financing activities:
Increase in short-term bank loans
Proceeds from long-term loans payable
Repayments for long-term loans payable
Purchases of treasury stock
Cash dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from change of scope of consolidation
Cash and cash equivalents at end of year (Note 16)

Millions of yen
2014
2015

Thousands of
U.S. dollars
2015¥6,522¥6,507$54,273

1,966
468
(56)
(96)
—
5
575
(259)
150
17
(8)
(1,420)
10

1,841
417
2
90
(8,411)
(13)
8,940
(260)
143
(22)
(3)
(1,763)—

16,360
3,894
(466)
(799)
—
42
4,785
(2,155)
1,248
142
(67)
(11,817)83(5,799)(4,449)
3,411
190
(111)
—
(579)
537
440
(151)
(1,284)
(458)

2,246
(3,085)2,205(1,369)
(270)
(6)
(364)
6,825
405
(152)
(4,054)
3,024(48,257)(37,023)
28,385
1,581
(924)
—
(4,816)
4,469
3,661(1,257)(10,684)(3,811)

14
(113)
—
(910)
8
(292)
1
16
(6)
(1,282)48—(89)(1,484)
171
(183)
(1)
14
15
(1,509)

117
(940)
—
(7,573)67(2,430)8
133(50)(10,668)

478
—
—
(2)
(1,216)
(35)
(775)
1,444
(1,071)
41,279—¥40,208

371
5,300(6,100)(1)(1,216)(39)(1,685)
1,891
1,721
38,3281,230¥41,279

3,978
—
—
(16)
(10,119)(292)(6,449)12,016(8,912)
343,505—$334,593

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 and disclosure requirements of International Financial
Reporting Standards, and are compiled from theconsolidated financial statements prepared by theCompany as required by the Financial Instruments
and Exchange Law of Japan. The preparation ofthese financial statements requires management
to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assets and liabilities at thedates of the consolidated financial statements andthe reported amounts of revenues and expenses
during the reporting periods. Actual results could
differ from these estimates.
The consolidated balance sheet, and consolidated statements of income, changes in net assets,
cash flows and comprehensive income incorporate
certain reclassifications and rearrangements inorder to present these statements in forms which
are more familiar to readers 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 for investments
in unconsolidated subsidiaries and affiliates
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 in consolidation.
The cost in excess of underlying interest in net
assets of consolidated subsidiaries at the time ofacquisition, which is included in intangible assetsof the accompanying consolidated balance sheet,is deferred and amortized on a straight-line basis
over the estimated useful life.
Investments in affiliates (15 to 50 percent-owned companies) in which the ability to exercise significant influence exist, except immaterial investments, are accounted for using the equity
method.
Immaterial investments in affiliates are statedat cost.
(b) Translation of foreign currencies
Monetary assets and liabilities denominated inforeign currencies are translated into Japanese
yen at the exchange rate prevailing at the balance
sheet dates except for those perfectly hedged byforward contracts, which are translated using thecontracted rate.
The foreign exchange gains and losses fromtranslation are recognized in the consolidated
statement of income to the extent that they are
not hedged by foreign exchange derivatives.
All assets and liabilities of foreign consolidated
subsidiaries are translated at the current rates at
the respective balance sheet dates. The revenues
and expenses of foreign consolidated subsidiaries are translated at the current rates at the respective balance sheet dates. The components ofshareholders’ equity are translated at their historical exchange rates. Differences in transaction are
directly charged to foreign currency translation
adjustments in net assets.
(c) Securities
Securities owned by the Companies have beenclassified into two categories, held-to-maturity
debt securities or other securities, in accordancewith the accounting standard for financial instruments.
Held-to-maturity debt securities are carried atamortized cost. Marketable securities classified asother securities are carried at fair value with any
changes in unrealized gain or loss, net of income
taxes, directly included in net assets.
Non-marketable securities classified as othersecurities are carried at cost. Cost of securities
sold is determined by the moving average method.
(d) Inventories
Finished products and work in process arestated at the lower of cost, determined by the individual identification method, or their net realizable value. Raw materials and supplies are stated13

at 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 stated at the amount determined based on the default
ratio sustained over a specific period in the pastand the estimated uncollectible amount determined based on the analysis of certain individual
accounts, including probable bad debts and claims
in bankruptcy.
(f) Warranty reserve
Warranty reserve is provided for warranty costs
to be incurred during the warranty period basedon 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 and depreciation ofother property, plant and equipment is computedby the declining balance method over the estimated useful lives of respective assets, principally
ranging from 3 - 60 years for buildings and structures, and from 3 - 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 the
relevant economic useful life (5 years). The 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 the reasonable period estimated toexpress the effect.
(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.
However, finance lease transactions, commencing on or before March 31, 2008, that do not transfer ownership to the lessee, are accounted for as
operating lease transactions.

14(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 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 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
year-end.
The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
The unrecognized transitional obligation is being amortized by the straight-line method over 15
years. Actuarial gain or loss is amortized by thestraight-line method over the average remaining
years of service of employees.
(o) Directors’ retirement benefits
Domestic consolidated subsidiaries accrue an
estimated amount calculated in accordance with
its internal rule 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 a 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 of cash flows, cash on hand, readily available deposits andshort-term highly liquid investments with maturities of not exceeding three months at the time of purchase are considered to be cash and cash equivalents.
(r) Reclassifications
Certain accounts in the consolidated financial statements as of and for the year ended March 31, 2014
have been reclassified to conform to the presentation for the year ended March 31, 2015.

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 ¥120.17=U.S.$1, the approximate exchange rate prevailing in the Japanese foreign exchange
market on March 31, 2015. 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
Accounting Standard for Retirement Benefits
Effective from April 1, 2014, the Company and its domestic subsidiaries adopted Section 35 of“Accounting Standard for Retirement Benefits” (ASBJ Statement No.26, issued May 17, 2012) and themain clause of Section 67 of “Implementation Guidance on Accounting Standard for Retirement Benefits”(ASBJ Guidance No.25, issued March 26, 2015). As a result, the method for calculating the retirement
benefit obligation and service cost have been revised, the method for attributing project benefits eachperiod has been changed from the straight-line method to benefit formula method, and the method for
determining the discount rate has been changed from discount rate based on period similar to employees’
average remaining service period to use a single weighted-average discount rate reflecting the expected
timing and amount of benefit payments.
The cumulative effect of changing the method for calculating the retirement benefit obligation andservice cost was recognized by adjusting retained earnings at April 1, 2014, in accordance with thetransitional treatment provided in paragraph 37 of Accounting Standard for Retirement Benefits.
As a result, the liability for retirement benefits decreased by ¥1,923 million ($16,002 thousand) andretained earnings increased by ¥1,922 million ($15,994 thousand) at April 1, 2014, and the effect of thischange on consolidated operating income and income before income taxes for the year ended March 31,
2015 is immaterial.
Also, net assets per share at March 31, 2015 increased by ¥13.28 ($0.11). The effect of this change onnet income per share for the year ended March 31, 2015 is immaterial and this change had no effect on
fully diluted net income per share because there are no dilutive shares.

5. Change in Presentation
Retirement Benefits
According to the revised implementation guidance on accounting standard for retirement benefits, theCompanies changed presentation method of note of retirement benefits based on multiemployer pension
plans and restated the consolidated financial statements of the fiscal year ended March 31, 2014.
The matter of restating the consolidated statements and the effect of the prior year’s consolidated
financial statements is described in the relevant sections.

15

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

Equity securities

Equity securities

Acquisition
cost¥1,707¥1,7072015
Carrying
value¥7,592¥7,592Millions of yen
Unrealized Acquisition
gains
cost
¥1,712¥5,885¥1,712¥5,8852014
Carrying
value¥5,700¥5,700

Unrealized
gains¥3,988¥3,988

Thousands of U.S. dollars
2015
Acquisition Carrying Unrealized
Cost
value
gains
$14,205$63,177$48,972$14,205$63,177$48,972

Amount of sales and gain on sales of marketable equity securities as other securities for the year ended
March 31, 2015 was ¥10 million ($84 thousand) and ¥5 million ($42 thousand).
Negotiable certificates are classified as non-marketable securities of deposit of ¥19,500 million($162,270 thousand) and ¥19,500 million as of March 31, 2015 and 2014, respectively. Non-marketable equity securities as other securities primary consist of ¥122 million ($1,015 thousand) and ¥123 million as ofMarch 31, 2015 and 2014, respectively. Amount of sales and gain on sales of non-marketable equity securities as other securities were ¥4 million ($33 thousand) and ¥3 million ($25 thousand) for the year ended
March 31, 2015, and ¥47 million and ¥3 million for the year ended March 31, 2014, respectively.

7. Property, Plant and Equipment
Property, plant and equipment at March 31, 2015 and 2014 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
2014
2015
¥6,471¥6,52035,34436,38328,99629,261
379
397
7,501
7,840
226
257
1,013
174
79,93080,832(58,821)(60,117)¥21,109¥20,715

Thousands of
U.S. dollars
2015$54,256
302,763
243,497
3,304
65,241
2,138
1,448
672,647(500,266)$172,381

Depreciation expense for the years ended March 31, 2015 and 2014 were ¥1,966 million ($16,360 thousand) and ¥1,841 million, respectively.

16

8. Intangible Assets
Intangible assets at March 31, 2015 and 2014 consisted of the following:

Goodwill
Others
Total

Millions of yen
2014
2015
¥3,128¥3,041
539
791¥3,667¥3,832Thousands of
U.S. dollars
2015$25,306
6,582$31,888

9. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding on March 31, 2015 and2014 ranged principally from 0.56% to 3.16% and 0.57% to 1.78%, respectively. Long-term debt on March
31, 2015 and 2014 consisted of the following:
Millions of yen
2014
2015
Loans, principally from Japanese banks and insurance companies:
maturing 2017 - 2018, interest 0.69 % - 0.98 %Less current portion¥5,3005,300—¥5,300¥5,3005,300—¥5,300Thousands of
U.S. dollars
2015$44,104
44,104—$44,104

The aggregate annual maturities of long-term debt at March 31, 2015 were as follows:Year ending March 31
2016
2017
2018
2019
2020 and later
Total

Millions of yen
¥—
500
500
4,300
—
¥5,300Thousands of
U.S. dollars
$—
4,161
4,161
35,782—$44,104

The aggregate annual maturities of finance lease obligations at March 31, 2015 were as follows:Year ending March 31
2016
2017
2018
2019
2020 and later
Total

Millions of yen
¥33
24
16
9
3
¥85

Thousands of
U.S. dollars
$275
200
133
75
25
$708

10. 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.

17

Certain domestic consolidated subsidiaries have adopted the conventional method in calculating theirprojected benefit obligation.
(b) Defined benefit plans① The changes in the retirement benefit obligation during the year ended March 31, 2015 and 2014
were as follows:

Retirement benefit obligation at April 1
Cumulative effect of change in accounting principle
Restated retirement benefit obligation at April 1
Service cost
Interest cost
Actuarial gain or loss
Retirement benefit paid
Retirement benefit obligation at March 31

Millions of yen
2014
2015
¥14,666¥14,667—(1,924)
14,666
12,743
730
880
134
127
12
(25)
(875)
(776)
¥14,667¥12,949

Thousands of
U.S. dollars
2015$122,052(16,011)106,041
7,323
1,057
(208)
(6,457)$107,756② The changes in pension assets during the year ended March 31, 2015 and 2014 were as follows:

Pension assets at April 1
Expected return on pension assets
Actuarial loss
Contribution by the companies
Retirement benefit paid
OthersPension assets at March 31

Millions of yen
2014
2015
¥3,902¥4,389
71
88
433
360
298
229
(277)
(223)
(38)
—
¥4,389¥4,843Thousands of
U.S. dollars
2015$36,523
732
2,996
1,906
(1,856)—$40,301③ The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2015 and 2014 for the defined benefit plans

Funded retirement benefit obligation
Pension 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
2014
2015
¥4,960¥4,234(4,389)(4,843)
571
(609)
9,708
8,715
10,2798,106
10,2798,106¥10,279¥8,106

Thousands of
U.S. dollars
2015$35,233(40,301)(5,068)72,52267,45467,454$67,454④ The components of retirement benefit expense for the year ended March 31, 2015 and 2014 were as follows:

Service cost
Interest assets
Expected return on pension assets
Amortization of transitional obligation
Recognized actuarial loss
Total

18

Millions of yen
2014
2015
¥730
¥880
134
127
(71)
(88)
463
463
130
(24)
¥1,386¥1,358

Thousands of
U.S. dollars
2015$7,323
1,057
(732)
3,853
(200)
$11,301

⑤ Unrecognized prior service cost and unrecognized actuarial loss included in other comprehensive
income (before tax effect) as of March 31, 2015 and 2014 were as follows:

Actuarial loss
Translation obligation
Total

Millions of yen
2014
2015
¥—
¥361
—
463
¥—
¥824

Thousands of
U.S. dollars
2015$3,004
3,853$6,857⑥ Unrecognized prior service cost and unrecognized actuarial loss included in accumulated other comprehensive income (before tax effect) as of March 31, 2015 and 2014 were as follows:

Unrecognized actuarial loss
Unrecognized translation obligation
Total

Millions of yen
2014
2015
¥876
¥515
463
—
¥1,339¥515

Thousands of
U.S. dollars
2015$4,286—$4,286⑦ The fair value of pension assets, by major category, as a percentage of total plan assets as of March
31, 2015 and 2014 were as follows:
Domestic bonds
Domestic equity securities
Foreign bonds
Foreign equity securities
Insurance assets (General account)
Other
Total

2015
46%
16%
12%
16%
8%
2%
100%

2014
47%
15%
11%
16%
8%
3%
100%

The expected return on pension assets has been estimated based on the anticipated allocation to each
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 assets
Expected rate of increase in salary

2015
1.1%
2.0%
9.9%

2014
1.1%
2.0%
9.9%

The expected rate of increase in salary was the rate of increase point calculated by the age specific index of expected rate of increase in salary for retirement benefits point system.
(c) Defined contribution plans
Amount of required contributions to defined contribution plans of the Company and certain domestic
consolidated subsidiaries for the year ended March 31, 2015 and 2014 were ¥177 million ($1,473 thousand) and ¥202 million, respectively.
(d) Multiemployer pension plans
The required contribution of multiemployer pension plans for the year ended March 31, 2015 and 2014,
were ¥83 million ($691 thousand) and ¥84 million, respectively.

19

① Funded status of the immediate vicinity of the multiemployer pension plans
2015¥303,721

2014¥281,339

Thousands of
U.S. dollars
2015$2,527,428

299,821¥3,900290,987¥(9,648)2,494,974$32,454

Millions of yen
Amount of pension assets
Total amount of actuarial obligations and minimum reservein the pension financial calculation (Note)
Difference(Note) This item was described as “Amount of obligations” in previous year.
② The Companies’ portion of contributions in multiemployer pension plans
The Companies’ portion in the total contributions of themultiemployer plans

2015

2014

0.562%

0.569%The difference was principally attributable to the differences in retained earnings of ¥12,010 million($99,942 thousand) and ¥12,320 million in the pension financial calculation, at March 31, 2015 and 2014,
respectively special reserve of ¥12,320 million ($102,521 thousand) at March 31, 2015 and unrecognizedprior service cost of ¥20,431 million ($170,017 thousand) and ¥21,968 million, at March 31, 2015 and 2014
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 ¥33 million ($275 thousand) and ¥31 million for amortization of prior service cost in the consolidated financial statements for the year ended March 31, 2015 and2014, respectively.
The Companies’ portion of contributions described above was not equal to the actual share to be allocated to the Companies.

11. Contingent Liabilities
As of March 31, 2015, contingent liabilities for loans guaranteed by the Company, principally on behalfof non-consolidated subsidiaries and affiliated companies, amounted to ¥690 million ($5,742 thousand).

12. Leases
As stated in “(k) Leased assets” under “2. Summary of significant Accounting Policies”, finance leases other than those where ownership of the leased assets is transferred to the lessee, commencing on or
before March 31, 2008 are accounted for as operating leases. The following pro forma amounts represent
the acquisition costs, accumulated depreciation and net book value of the leased assets accounted for as
operating leases at March 31, 2015 and 2014, which would have been reflected in the consolidated balance
sheet if these arrangements had been accounted for as finance leases:

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

20

Millions of yen
2014
2015
¥84
¥—
222
—
(306)
—
¥—
¥—

Future lease payments (including the interest portion thereon) subsequent to March 31, 2015 and 2014
for finance leases accounted for as operating leases was as follows:

Due within one year
Due after one year
Total

Millions of yen
2014
2015
¥3
¥—
—
—
¥3
¥—

Periodic lease expenses, as a lessee, charged to income for the year ended March 31, 2014 was ¥3 million. The pro forma amount of depreciation for the year ended March 31, 2014 would be calculated at ¥3
million by using the straight-line method over the lease term with no salvage value.

13. Financial Instruments
Overview(a) Policy for financial instruments
The Companies invest in short-term deposits for fund management, where temporally cash surplus isinvested in low-risk financial instruments. The Companies raise a fund by bank borrowings. The Companies use derivatives only to reduce risk, and don’t use derivatives for speculative trading purposes.
(b) Contents of financial instruments, related risk and risk management system
Operating receivables such as notes and accounts receivable, trade are exposed to customer credit risk.
The Companies try to reduce this risk by the Companies’ sales management rules. Investments, consistingof marketable securities of corporations, are exposed to stock price fluctuation risk in the market. To address this risk, the Companies monitor their stock price in every quarter. Operating payables such as 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 5 years from the balance sheet date at the
maximum. Some of them are exposed to interest rate fluctuation risks, but these risks are hedged by interest rate swap.
Derivative transactions consist of interest rate swap 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 inforeign currency. These derivative transactions are managed under the internal management policies, tothe extent deemed necessary. “15. Derivative Financial Instruments” explains hedge accounting, hedging
instruments and methods, hedging policy, hedge items and assessment of hedge effectiveness.
The Finance Department of the Companies prepares and updates its cash flow plan to manage liquidity
risk. A part of bank borrowings are subject to terms of financial covenants. If the Companies violate theterms of financial covenants, the terms of borrowings may be possibly revised.
The terms of financial covenants incident to syndicated loan (¥5,000 million ($41,608 thousand) at
March 31, 2015) contract are as follows:① At March 31 and September 30 every year, the Company must keep the amount of net assets in the
consolidated balance sheet over ¥53,325 million ($443,746 thousand).
② In the consolidated statement of income for the fiscal year ending March 31, the Company must notrecord operating loss for the two consecutive years.
(c) Supplemental information on the fair value of financial instruments
Fair value of financial instruments 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 the change in underlying assumptions. The contract amounts of derivatives are discussed in “14. Derivative Financial Instruments” below are not an indicator of the market risk associatedwith derivative transactions.

21Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2015 and 2014, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen
2014
2015
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and deposits¥—¥20,708 ¥20,708¥— ¥21,779 ¥21,779
Notes and accounts receivable, trade37,943(9)43,751
43,749(2) 37,952
Marketable securities and investment securities
30,65837,537
6,879
33,79436,6062,812¥6,870¥98,253 ¥101,063¥2,810 ¥90,389 ¥97,259
Total assets
Short-term bank loans¥—¥11,913 ¥11,913¥— ¥11,296 ¥11,296
Notes and accounts payable, trade
24,67524,675—28,08628,086—Long-term debt
5,300
5,300
0
5,300
5,309
9
¥0
¥45,299 ¥45,308¥9 ¥41,271 ¥41,271
Total liabilities
Derivatives
¥—
¥—
¥—
¥39
¥39
¥—
Thousands of U.S. dollars
2015
Carrying value Fair value Difference
Cash and deposits$172,323 $172,323$—
Notes and accounts receivable, trade
364,076 364,059(17)
Marketable securities and investment securities 281,218 304,618
23,400$817,617 $841,000 $23,383
Total assets
Short-term bank loans$99,135 $99,135$—
Notes and accounts payable, trade
233,719 233,719—
Long-term debt
44,104
44,17975$376,958 $377,033$75
Total liabilities
Derivatives
$325
$325
$—

*Derivatives are presented as net amounts receivable or payable with net amounts payable in parentheses.
(a) Method for calculating fair value of financial instruments, short-term investments and derivativetransactions① Cash and deposits
The carrying value approximate fair value because these are due within short-term.
② Notes and accounts receivable, trade
The amount of notes and accounts receivable, trade is classified based on certain terms and discounted using a rate which reflects safety interest and credit risk
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.
Derivatives⑦
Please refer to “14. Derivative Financial Instruments”.

22

(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2015 and 2014
were as follows:

Investment securities for which the market prices are not available

Millions of yen
2014
2015
¥403
¥518

Thousands of
U.S. dollars
2015$4,310Market 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, 2015 and 2014 were as follows:
Millions of yen

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

2014
2015
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¥—¥—¥—¥20,682¥—¥—¥— ¥21,771
195——
43,387364—— 37,757
19,500¥83,569

—
¥364

—
¥—

— 19,500¥— ¥79,028

—
¥195

—
¥—

—
¥—

Thousands of U.S. dollars
2015
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$172,106$—$—$—
Notes and accounts receivable, trade 361,047
3,029
—
—
Marketable securities and investment securities:
Negotiable certificate of deposit 162,270———$695,423 $3,029
$—
$—
Total

(d) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2015

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2014

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¥11,913
¥—
¥—
¥—
¥—
¥—
—
500
500
4,300
—
—
¥11,913¥500¥500 ¥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¥11,296
¥—
¥—
¥—
¥—
¥—
—
—
500
500
4,300
—
¥11,296¥—¥500¥500 ¥4,300¥—

23

Year ended March 31, 2015

Short-term bank loans
Long-term debt
Total

Thousands of U.S. dollars
Due within Due after one Due after two Due after three Due after four Due after
one year year through years through years through years through five years
two years
three years four years
five years$99,135
$—
$—
$—
$—
$—
—
4,161
4,161 35,782——$99,135 $4,161 $4,161 $35,782$—$—

14. Derivative Financial Instruments
The Companies have entered into derivative transactions (foreign exchange contract, interest rate
swap and currency option transaction) in order to manage certain risks arising from adverse fluctuations
in foreign currency exchange rate and in interest rate. The Company doesn’t hold or issue derivative financial instruments for the purpose of speculative trading. Derivative transactions are entered into by the
Finance Department under the rules approved by the Board of Directors. Derivative transactions are inspected validity of the operation by the Corporate Auditing Office.
Derivatives not designated as hedging instruments at March 31, 2015 was as follows:① Foreign exchange contract.

Hedged item
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To buy foreign currencies:
Japanese Yen
Total

¥357
¥357

accounts payable

Hedged item
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To buy foreign currencies:
Japanese Yen
Total

Millions of yen
2015
Contract Contract amount Fair value Valuation
amount due after one year
gain (loss)

¥39
¥39

¥39
¥39

Thousands of U.S. dollars
2015
Contract Contract amount Fair value Valuation
amount due after one year
gain (loss)

accounts payable

There were no applicable derivatives at March 31, 2014.

24

¥—
¥—

$2,971$2,971

$—
$—

$325
$325

$325
$325

Derivatives designated as hedging instruments at March 31, 2015 and 2014 were as follows:② Foreign exchange contract, etc.

Hedged item
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
accounts receivable
British pound
Total

Hedged item

Millions of yen
2014
2015
Contract Contract amount Fair value Contract Contract amount Fair value
amount due after one year
amount due after one year

¥1,545—¥1,545¥——¥—¥— ¥1,93985—¥— ¥2,024

¥—
—
¥—

¥—
—
¥—

Thousands of U.S. dollars
2015
Contract Contract amount Fair value
amount due after one year

Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars$12,857
accounts receivable
British pound—$12,857
Total

$—
—
$—

$—
—
$—

③ Interest rate swap

Hedged item
Accounting in principle
Interest rate swap:
Floating rate receipt, fixed rate payment long-term debt

Hedged item

Millions of yen
2014
2015
Contract Contract amount Fair value Contract Contract amount Fair value
amount due after one year
amount due after one year

¥5,000 ¥5,000¥— ¥5,000 ¥5,000¥—

Thousands of U.S. dollars
2015
Contract Contract amount
Fair value
amount due after one year

Accounting in principle
Interest rate swap:
Floating rate receipt, fixed rate payment long-term debt $41,608 $41,608$—

25

15. Income Taxes
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries generallycomprise Corporation Tax, Enterprise Tax and Prefectural and Municipal Inhabitants Taxes. The statutory
tax rates for the years ended March 31, 2015 and 2014 were approximately 34.8% and 37.2%, respectively.
Following the promulgations on March 31, 2015 of the “Act for Partial Revision of the Income Tax Act,etc.” (Act No.9 of 2015), effective from the fiscal year beginning on and after April 1, 2015, the income tax
rates will be reduced. In accordance with this tax reform, the effective statutory tax rate, used to measuredeferred tax assets and liabilities, will be changing from 34.8% to 32.3% for the temporary differences expected to be realized in the fiscal year beginning on April 1, 2015, to 31.6% for the temporary differences
expected to be realized in the fiscal years beginning on and after April 1, 2016.
This change of tax rate decreased net deferred tax assets (after netting deferred tax liabilities) by ¥1
million ($8 thousand) at March 31, 2015, and increased unrealized holding gain on securities, net of tax,by ¥187 million ($1,556 thousand) at March 31, 2015, and increased deferred income taxes by ¥188 million($1,564 thousand) for the year-ended March 31, 2015.
The reconciliation between the statutory tax rate and effective tax rate for the years ended March 31,
2015 and 2014 were as follows:
Statutory tax rate
Per-capita portion of inhabitant tax
Permanently non-taxable revenue such as dividends income
Permanently non-deductible expenses
Effects of elimination in consolidation
Change in valuation allowance
Difference in statutory tax rates for foreign subsidiaries
Effect of change in enacted tax rate
Refund of income taxes
Change in tax effect on undistributed earnings
Others
Effective tax rate

2015
34.8%
0.7
(0.5)
0.8
(0.8)
(15.2)
(0.8)
2.9
(1.0)
11.3
1.7
33.9%

2014
37.2%
0.7
(0.6)
1.7
(5.7)
(1.1)
(2.3)
2.3
(1.1)
—
0.6
31.7%

The significant components of deferred tax assets and liabilities at March 31, 2015 and 2014 were as follows:

Deferred tax assets:
Accrued employees’ bonuses
Allowance for doubtful receivables
Devaluation of inventories
Devaluation of securities
Net defined benefit liability
Unrealized intercompany profit on inventories
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 gain on securities
Asset retirement obligations
Enterprise taxes receivable
Book value of securities not corrected yet
Foreign consolidated subsidiaries’ retained earnings
Affiliates’ retained earnings accounted for using equity method
Total deferred tax liabilities
Net deferred tax assets

26

Millions of yen
2014
2015

Thousands of
U.S. dollars
2015

¥669
40
663
347
2,420
632
107
1,845
¥6,723(2,207)¥4,516

¥770
63
694
386
3,124
588
41
1,965
¥7,631(4,061)¥3,570$5,567
333
5,517
2,888
20,1385,259
890
15,354$55,946(18,366)$37,580(125)(1,811)
(8)
—
(105)
(632)
(865)
¥(3,546)
¥970

(131)
(1,339)
(9)
(16)
—
(528)
—
¥(2,023)¥1,547(1,040)(15,070)
(67)
—
(874)
(5,259)(7,197)$(29,507)$8,073

16. Cash and Cash Equivalents
Reconciliation between cash and time deposits in the accompanying consolidated balance sheet andcash and cash equivalents in the accompanying consolidated statement of cash flows at March 31, 2015
and 2014 were presented as follows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2014
2015
¥21,779¥20,708
19,50019,500¥41,279¥40,208

Thousands of
U.S. dollars
2015$172,323
162,270$334,593

17. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2015
and 2014 were as follows:
Millions of yen
Sales commission
Delivering expenses
Provision for warranty reserve
Personnel-expenses
Retirement benefit expense
Depreciation
Rent expenses
Traveling expenses
Research and development expenses
Outside order expenses
OthersTotal

2015¥2,365
3,693
490
11,626
558
645
811
1,701
1,159
715
5,088
¥28,8512014¥2,103
3,336
585
11,257
570
560
789
1,545
924
575
4,712
¥26,956

Thousands of
U.S. dollars
2015$19,680
30,731
4,078
96,746
4,643
5,367
6,749
14,1559,645
5,950
42,340$240,084

18. Research and Development Costs
Research and development costs charged to income were ¥1,663 million ($13,839 thousand) and ¥1,551 million for the years ended March 31, 2015 and 2014, respectively.

2719. Loss on Impairment of Fixed Assets
Grouping of assets is based on the business units, except for idle asset, which is grouped individually. Losson impairment of fixed assets for the year ended March 31, 2015 amounted to ¥10 million ($83 thousand).
The recoverable value of the assets was calculated by the market value.
The loss on impairment of fixed assets for the year ended March 31, 2015 consisted of the following:
Millions of yen
2015
Ishioka-shi, Ibaraki-ken, Japan:
Land

¥10

Idle property

Thousands of
U.S. dollars
2015
$83

20. Other Comprehensive Income
The components of other comprehensive income for the years ended March 31, 2015 and 2014 were as follows:
Thousands of
U.S. dollars
2015

Millions of yen
2014
2015
Unrealized holding gain on securities:
Current period changes in unrealized gain (loss)
Reclassification adjustment
Total unrealized holding gain on securities before tax effects
Tax effects
Unrealized holding gain on securities, net of tax effects
Deferred gains or losses on hedge:
Current period changes in unrealized gain (loss)
Total deferred gains or losses on hedge before tax effects
Tax effects
Deferred gains or losses on hedge, net of tax effects
Foreign currency translation adjustments:
Current period changes
Remeasurements of defined benefit plans
Current period changes in remeasurements of defined benefit plans
Reclassification adjustment
Total remesurements 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

28¥1,901
(4)
1,897
(472)
1,425

¥628
—
628
(201)
427

$15,819(33)
15,786(3,928)
11,858

—
—
—
—

0
0
(0)
0

—
—
—
—

2,179

2,022

18,133

386
438
824
—
824

—
—
—
—
—

3,212
3,644
6,856
—
6,856

8
¥4,436—¥2,44967$36,914

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

22. Related Party Transactions
During the years ended March 31, 2015 and 2014, the Companies had operational transactions with
Toshiba Corporation, a 22.1% shareholder of the Company.
A summary of the significant transactions with Toshiba Corporation for the years ended March 31, 2015
and 2014 were as follows:
Millions of yen
2014
2015
For the years ended March 31:
Payment of brand fee

¥240

¥217

Thousands of
U.S. dollars
2015$1,997

Note: Brand fee rate was contracted beforehand.
During the years ended March 31, 2015 and 2014, the Companies had operational transactions with NuFlare Technology, Inc., a 15.1% affiliate of the Company.
A summary of the significant transactions with NuFlare Technology, Inc. for the years ended March 31,
2015 and 2014 were as follows:
Millions of yen
2014
2015
For the years ended March 31:
Rent income for land, buildings and structures

¥59

¥126

Thousands of
U.S. dollars
2015
$491

Note: Prices applied in the transactions were determined on an arm’s-length basis similar to third party
transaction prices.

2923. Net Income and Net Assets per Share
Net income and net assets per share for the years ended March 31, 2015 and 2014 were as follows:

Net income per share
Net assets per share2015¥28.36616.14Yen

2014¥29.23553.96

U.S. dollars
2015
$0.24
5.13

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

Weighted-average number of shares of common stockThousands of shares
2014
2015
152,030
152,027

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

Millions of yen
2014
2015
¥4,444¥4,312——¥4,444¥4,312Thousands of
U.S. dollars
2015$35,882—$35,882

Basic information for calculation of net assets per share were as follows:30

Number of shares at year-end

Thousands of shares
2014
2015
152,029
152,025

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

Millions of yen
2014
2015
¥84,217¥93,669——¥84,217¥93,669

Thousands of
U.S. dollars
2015$779,471—$779,471

24. Segment Information(A) General information about reportable segments
The reportable segments of the Companies are the business units for which the Company is able to obtain respective financial information separately in order for Executive Officer to conduct periodic investigation to determine distribution of management resources and evaluate their business results.
The Companies’ business is classified into certain segments based on the type of products and services.
The Companies’ segments are categorized into the following three reportable segments, “Molding Machinery”, “Machine Tools” and “Hydraulic Equipment” based on the similarities of economical nature, contents
and manufacturing method:
Molding Machinery: Injection molding machines, Die casting machines, Plastic extrusion
Machine Tools: Large size machine tools, Portal type machine tools, Machining centers, Horizontal boring machines, High-precision machines
Hydraulic Equipment: Hydraulic motors, Control valves, Piston pumps(B) Basis of measurement for reportable segment profit or loss, segment assets and other material items
The accounting treatment method for the reportable business segment is generally the same as described in “2. Summary of Significant Accounting Policies”. Reportable segment income is calculated on
the basis of operating income. The prices of intersegment transactions and transfers are calculated basedon the market prices.
(C) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2015 and 2014 wereas follows:
Millions of yen

Year ended March 31, 2015

Reportable segments
Other Products
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment
Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure
Year ended March 31, 2014

Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure¥80,024—80,024¥3,854¥77,717¥28,141
1,004
29,145¥840¥39,222¥1,145
1,640

¥391
139

¥5,936 ¥114,101
19
1,023
5,955 115,124¥(573)¥4,121¥5,213 ¥122,152
¥238
157

¥1,774
1,936

Total

Adjustments Consolidated¥10,272 ¥124,373
2,575
3,598
12,847 127,971¥316¥4,437¥17,371 ¥139,523¥— ¥124,373(3,598)—(3,598) 124,373¥351¥4,788¥22,452 ¥161,975

¥192
258

Millions of yen
Reportable segments
Other products
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment¥73,214—
73,214¥4,965¥70,845¥23,048
233
23,281¥(720)¥32,851

¥924
1,380

¥416
98

¥7,592 ¥103,854
53
286
7,645 104,140¥(197)¥4,048¥5,744 ¥109,440¥302
19¥1,642
1,497¥1,9662194¥——¥1,966
2,194

Total

Adjustments Consolidated¥9,208 ¥113,062
2,424
2,710
11,632 115,772¥189¥4,237¥15,160 ¥124,600¥— ¥113,062(2,710)—(2,710) 113,062¥388¥4,625¥24,080 ¥148,680

¥199
270

¥1,841
1,767¥——¥1,841
1,767

31

Year ended March 31, 2015

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

Thousands of U.S. dollars
Reportable segments
Other products
Total
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment$665,923—
665,923$32,071$646,725$234,177
8,354
242,531$6,990$326,388$9,527
13,648$3,254
1,157$49,397 $949,497
158
8,512
49,555
958,009$(4,768) $34,293$43,380 $1,016,493$1,981
1,306$14,762
16,111$85,478 $1,034,975
21,42929,941
106,907 1,064,916$2,629$36,922$144,554 $1,161,047$1,5982,146$16,360
18,257

Adjustments Consolidated$— $1,034,975(29,941)—(29,941) 1,034,975$2,922$39,844$186,835 $1,347,882$——$16,360
18,257

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 statements
The main differences between total reportable segments and consolidated financial statements for theyears ended March 31, 2015 and 2014 were as follows:
Sales
Total reportable segments
Other products
Eliminations
Net sales in the consolidated financial statements

IncomeTotal 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
2014
2015
¥104,140¥115,124
11,632
12,847(2,710)(3,598)¥113,062¥124,373

Thousands of
U.S. dollars
2015$958,009
106,907(29,941)$1,034,975

Millions of yen
2014
2015
¥4,048¥4,121
189
316
388
351
¥4,625¥4,788

Thousands of
U.S. dollars
2015$34,2932,629
2,922$39,844

Millions of yen
2014
2015
¥109,440¥122,152
15,16017,371
24,321
23,624(241)(1,172)¥148,680¥161,975

Thousands of
U.S. dollars
2015$1,016,493
144,554
196,588(9,753)$1,347,882

Note: Company-wide assets are mainly cash and cash equivalents, securities and investment securities
that don’t belong to the reportable segments

32

(E) Related segment information① Information about products and services
Information about products and services is not disclosed because reportable segment information isbased on products and services.
② Information about geographical areas
Sales information about geographical areas for the years ended March 31, 2015 and 2014 were as follows:Japan¥51,891

Millions of yen
2015
North America
Asia¥22,779¥47,084

Other¥2,619Total¥124,373

Japan¥46,870

Millions of yen
2014
North America
Asia¥19,255¥44,336

Other¥2,601

Total¥113,062Japan$431,813

Thousands of U.S. dollars
2015North America
Asia
Other
$189,556$391,812$21,794

Total$1,034,975

Note: Sales figures are classified based on the customer locations.
Property, plant and equipment information about geographical areas for the years ended March 31,
2015 and 2014 were as follows:Japan¥17,100

Millions of yen
2015
North America
Asia
¥239
¥3,376

Total¥20,715

Japan¥17,657

Millions of yen
2014
North America
Asia
¥272
¥3,180

Total¥21,109Japan$142,298

Thousands of U.S. dollars
2015North America
Asia$1,989$28,094

Total$172,381③ 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, 2015 and 2014.

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(F) Information about impairment loss on long-lived assets for each reportable segment
Information about impairment loss on long-lived assets for the years ended March 31, 2015 was follows:

Molding
Machinery¥—

Molding
Machinery$—

Machine Tools¥—

Machine Tools$—

Millions of yen
2015
Hydraulic
Other products
Equipment¥—¥10
Thousands of U.S. dollars
2015
Hydraulic
Other products
Equipment$—$83

Adjustments

Total

¥—

¥10

Adjustments

Total

$—

$83

There was no applicable matter for the years ended March 31, 2014.
(G) Information about amortization of goodwill and unamortized balance for each reportable segment
Information about amortization of goodwill and unamortized balance for the years ended March 31,
2015 and 2014 were as follows:

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance

Molding
Machinery
¥468
3,041

Molding
Machinery
¥417
3,128

Molding
Machinery$3,89425,306

MachineTools¥——

Millions of yen
2015
Hydraulic
Other
Equipment
products¥—¥———

Adjustments

MachineTools¥——

Millions of yen
2014
Hydraulic
Other
Equipment
products¥—¥———

Adjustments

MachineTools$——

Thousands of U.S. dollars
2015
Hydraulic
Other
Adjustments
Equipment
products
$—
$—
$—
—
—
—

¥—
—

(H) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2015 and 2014.

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¥—
—

Total
¥468
3,041

Total
¥417
3,128

Total
$3,89425,306

25. Subsequent Event(A) 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, 2015, were approved at the meeting of theBoard of Directors held on April 28, 2015:
Cash dividends (¥4.00 = $0.03 per share) ¥608 million ($5,059 thousand)(B) Transfer of shares of subsidiary
The Company resolved at the Board of Directors meeting on March 3, 2015 to sell all shares of its consolidated subsidiary, Hyest Corporation, to Nabtesco Corporation and sold the shares on April 1, 2015.
(a) Reason for sale of shares
The Companies are pursuing opportunities to strengthen the business bases by developing ourcore technologies and expanding the global markets, in line with the concept of “advancement andexpansion”.
Under these situations, the Companies determined to focus their business resources on equipment industries, mainly molding machinery and machine tools, in order to achieve the purposes anddecided to sell all the share of Hyest Corporation, engaged in the hydraulic equipment business forconstruction machines, to Nabtesco Corporation. By transfer of the shares, the Company expects
that Hyest Corporation would be able to maintain and enhance its technological advantage and continue to grow its business within the enterprise group with the sufficient business scale.
(b) Date of transfer
April 1, 2015(c) Overview of Hyest Corporation(1) Name(2) Main business(3) Business relation to the Company

Hyest Corporation
Manufacture and sales of hydraulic equipment
and its related businessSupply hydraulic equipment to the Company,
Outsource a part of purchase operation andadministrative operation based on theoutsourcing contract,
Rent land and buildings,
Loan funds(d) Overview of sales(1) Number of shares to be sold
20,000 shares(2) Gain on sales
About ¥2,600 million ($21,636 thousand)(3) The Companies ownership ratio after sale—%
The selling price was not disclosed because of the contractual confidentiality obligation with thebuyer.

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

Directors President and Chief Executive Officer		 Yukio Iimura
Representative Director and Senior Managing Executive Officer
		 Yoshihiro Kishimoto
Directors and Managing Executive Officers
		 Shigetomo Sakamoto
		 Masayuki Yagi
		 Takahiro Mikami
Directors and Executive Officers
		 Kazuo Takamura
		 Katsuo Ito		 Akiyoshi Kobayashi
Outside Directors
		 Kan Akiyama
		 Yoshihiro Ogura
Audit and Supervisory Board Members

		 Teruyuki Makino
		 Shinsuke Wataya
		 Makoto Tsuji
		 Yutaka Usami

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