Contents
1

An Outline of the Toshiba Machine Group
Corporate Information2

Foreword

4

Financial Highlights (consolidated)

5

Overseas Operations for Fiscal Year Ended March 31,2014

6

Overseas Offices
Financial Review

8

Consolidated Balance Sheet

10

Consolidated Statement of Income

11

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

12

Consolidated Statement of Cash Flows13

Notes to Consolidated Financial Statements

36

Report of Independent Auditors

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, 2014)
Company Name:TOSHIBA MACHINE CO., LTD.

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

1938

Capital:¥12,485million (US$121,308thousands)

Shares of Common Stock
Issued and Outstanding:

166,885,530 shares

Number of Shareholders:

11,176

Number of Employees:

1,859 (Consolidated: 3,454)

1

Foreword 2014
The Toshiba Machine Group initiated its midterm management plan, the “TM AC Plan (Toshiba
Machine Adapt to the Change Plan)”, based on the fundamental concepts of “advancement andexpansion”, on April 1, 2010. We are pursuing two strategies in tandem: an “advancement
strategy” focused on advanced products created from our core technologies which contribute tothat portion of the new industrial pyramid concerned with energy and ecology, and an “expansion
strategy” aimed at revitalizing our existing products and expanding in the developing markets
which make up the broad base of the current industrial pyramid.
In fiscal year ended March 31,2014, government economic measures curbed the strength of the
Yen and increased share prices, leading to improved domestic business confidence.
In overseas markets, although emerging economies such as China and Southeast Asia slowed
down, the North American economy remained bullish. In the present economic climate, domestic
capital investment is bearish but moving toward recovery. Overseas, although the Chinese market
continues to stagnate, there was strong demand from some emerging economies as well as fromthe USA and Mexico. However, overall the climate is still difficult.
Amidst the background of the severe economic climate and changing industrial structure, theToshiba Machine Group continued to implement the policies of the “TM AC Plan Ad I” in fiscal
year ended March 31, 2014. We made intensive efforts to develop new products for domestic andoverseas markets, develop new markets, and secure orders. We increased universal recognition of
the Toshiba Machine brand through the Thailand Plant which is now operating at full capacity andthe presence of a local sales affiliate in Brazil.
As a result, consolidated orders received totaled ¥120,221 million (US$ 1,168,101 thousands), a
7.2% increase on the previous term. Consolidated net sales totaled ¥113,062 million (US$1,098,543 thousands), a 6.5% fall from the previous term.
Profit and loss were as follows: decreased sales and harsh market conditions resulted in an
operating income of ¥4,625 million (US$ 44,938 thousands), a decrease of 42.7% on the previous
term, and a net income of ¥4,444 million (US$ 43,179 thousands), a decrease of 43.7% on theprevious term.
We paid out dividends of ¥7.5(US$0.07) for fiscal year ended March 31, 2014.
Key factors likely to influence the domestic and overseas economic outlook include ongoing
and unpredictable situations such as the slowing of growth in some developing countries and more
intense competition with domestic and overseas businesses, but we also anticipate improvementin the domestic economy as well as a turn towards favorable conditions for orders in overseas
markets in certain regions and for certain products.
Under the “TM AC Plan Advanced II” initiated on April 1, 2014, we continue to hold“advancement and expansion” and “multi-domestic and global governance” as fundamental
concepts. To these we add the concept of the “promotion of individual globalization”, and continue
to engage in expanding sales and raising the profile of the Toshiba Machine Group in the global

2

market which is expected to provide our future growth.
Our marketing strategies include the timely acquisition of market information, connecting
thorough benchmarking and analysis with increased product selling power, and the expansion ofsales in the global market. We also intend to increase business opportunities by sharing marketing
information between divisions, and to penetrate potential regions and markets which we werepreviously unable to enter satisfactorily.
Group development and technology strategies will focus on developing products which
contribute to growth industries concerned with energy and ecology. Our cutting edge researchand development must include product planning based on careful market analysis to exactly
capture customer requirements, so we can stay ahead of other companies and offer advanced
products to these growth industries.
We also intend to increase the speed of product development by actively incorporating
development resources from external development institutions.
Our production and procurement strategy is centered on the main factory in Japan, which
specializes in production for high added-value regions, and improving our factories to ensure
superior labor productivity through upgraded manufacturing technology and production
management. We will simultaneously focus our attention upon our global manufacturing strategy
and procurement strategy to further develop our potential. Furthermore, we will continue tostrengthen our overseas production bases, the Shanghai Plant and now also the Thailand Plant
and India Plant, to create a production system which can withstand political, economic, anddisaster risks, while engaging in highly cost-competitive manufacturing, and pursuing larger scalesof production and high production efficiency centered on products for developing markets.
Finally, our strategy to strengthen our financial base involves the creation of an organizational
structure which enables domestic and overseas operating activities to work efficiently as we aim
to become a global company. The basis for these developments will be to foster personnel capableof doing business globally, and actively implementing “visualization of management” whilst making
full use of our IT infrastructure and improving the capabilities of the Japanese head office.
Overseas operational activities will be regulated and supported through the global governanceabilities of the Japanese head office as we aim to increase the speed of managerial decisionmaking and the effectiveness of business management, continuously growing both sales andprofits.
We will also focus on consistent quality and environmental management based on ISO9001 and
14001, and develop personnel who will be responsible for the future of the company while
proactively engaging with our corporate social responsibilities such as compliance and social
contribution.

3

FINANCIAL HIGHLIGHTS (consolidated)
Net sales

2014

2013

2012

2011

2010

¥113,062¥120,899¥119,550¥95,713¥74,694¥81,481¥87,294¥88,312¥69,997¥56,470¥26,956¥25,527¥23,796¥21,628¥20,040¥4,625¥8,078¥7,442¥4,088¥(1,816)¥6,507¥12,239¥9,149¥3,749¥(2,032)¥2,063¥4,348¥2,428¥469¥2,499¥4,444¥7,891¥6,721¥3,280¥(4,531)¥6,893¥9,468¥6,840¥2,410—¥29.23¥51.91¥44.21¥21.57¥(29.80)

¥7.50

¥9.00

¥9.00

¥4.50

¥4.50

¥148,680¥142,239¥142,297¥131,203¥115,806¥84,217¥79,400¥71,101¥65,325¥63,372¥1,767¥770¥1,052¥2,044¥625¥1,841¥2,065¥2,276¥2,322¥2,514¥1,551¥1,566¥1,582¥1,399¥1,567

3,454

3,197

3,157

3,140

3,067

$1,098,543
Cost of sales$791,693
Selling, general andadministrative expenses
Operating income (loss)$261,912$44,938
Income (loss) before income
taxes and minority interests
Income taxes$63,224$20,045

Net income (loss)$43,179
Comprehensive income$66,975
Per common share:
Net income (loss)$0.28

Cash dividends$0.07
Total assets$1,444,617
Net assets$818,276
Capital expenditure(property, plant and equipment)
Depreciation$17,169$17,888

R & D Cost

$15,070
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¥102.92=U.S.$1. See Note 3 of the Notes to the Consolidated Financial Statements.

4Overseas Operations for Fiscal Year Ended March 31,2014
Government economic measures in fiscal
year ended March 31, 2014 curbed the strengthof the Yen and boosted share prices, leading to
improved domestic business confidence. In
overseas markets, the North American economy
remained bullish, even though emerging
economies such as China and Southeast Asia
slowed down. In the present economic climate,domestic capital investment is bearish but
moving toward recovery. Overseas, although the
Chinese market continues to stagnate, there
was strong demand from some emerging
economies as well as from the USA and Mexico.
However, overall, the severe climate still
persists.
Faced with these severe economic
conditions, the Toshiba Machine Group initiatedthe midterm management plan “TM AC Plan
Ad. I (Toshiba Machine Adapt to the Change
Plan Advanced I)” in April 2013. The Group has
focused all of its efforts on market development,
securing orders, new product development fordomestic and overseas markets, and improving
the Group’s financial standing. We are actively
increasing universal recognition of the Toshiba
Machine brand, with the Thailand Plant now
operating at full capacity and with theestablishment of local sales affiliates in Brazil.
This has resulted in stronger capital
investment from emerging countries, such as
China and Southeast Asia, and from theautomotive and IT industries catering to theUSA. This term’s consolidated overseas sales
totaled ¥66,192 billion (US$ 643,141thousands),
a decrease of 11.3% on the previous term.
Injection molding machines, die-castingmachines and machine tools were our leading
product types, and most export destinations
were in Asia.
The Group underwent businessrestructuring in fiscal year ended March 31,
2014 under the “TM AC Plan Advanced I”, andin fiscal year ended March 31, 2015, we will
formulate and implement the “TM AC Plan
Advanced II”. Maintaining our core businessconcepts of “advancement and expansion”, we
aim to penetrate global markets throughuniversal recognition of the Toshiba Machinebrand, and bring the Toshiba Machine Group
together as one in order to transform ourselves
into a truly global company.

Net Sales
Millions of yen

119,550

18,802

Total
Other
Products
16,80028,902

Machine23,048 Tools

120,899

24,977
95,713
28,83922,84574,694
12,580113,062

23,57531,33465,73473,195

Molding
73,214 Machinery

49,29330,780

2012

2011

2010

2013

2014

Total Sales & Overseas Sales
Millions of yen

119,550

120,899es
Total Sal

113,062

95,71374,694

66,90835,763

2010

74,594

66,192

Overseas

Sales

50,134

2012

2011

2013

2014

Export Percentages by Major Products
HydraulicEquipment

Other
Products
6%

MachineTools

Molding
Machinery

2%

17%
75%

5

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

Beijing Office

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

Tianjin Office

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

Suzhou OfficeWuhan Office

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

TOSHIBA MACHINE (SHANGHAI) CO., LTD.

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

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

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

Guangzhou Office

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

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

Dalian Office

Dongguan Office

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

Xiamen Office

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

Chongqing Office

Room 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/
thailand

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

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

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

TOSHIBA MACHINE COMPANY,AMERICA Head Office

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

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

Ho Chi Minh Office

Los Angeles Office

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

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

TOSHIBA MACHINE (INDIA) PVT. LTD.
Head 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, Near 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■ 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

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, 2014ASSETS
Current assets:
Cash and deposits (Notes 14 and 18)
Marketable securities (Notes 7 ,14 and 18)
Notes and accounts receivable, trade (Note 14)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Deferred tax assets (Note 17)
Other current assets
Total current assets

Millions of yen
2013
2014

Thousands of
U.S. dollars
2014¥21,779
19,50037,952(178)
37,774¥21,328
17,00040,006(142)
39,864$211,611
189,468
368,752(1,729)367,023

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

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

60,950203,760
729
265,439
28,15821,434
1,083,133

Property, plant and equipment, net (Notes 8, 13 and 16)

21,10919,830205,101

Intangible assets (Note 9)

3,667

400

35,630

5,738
5,823
78
60
729
12,428¥148,680

9,198
5,240
93
65
572
15,168¥142,239

55,752
56,578
758
583
7,082
120,753$1,444,617

Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates (Note 14)
Other securities (Notes 7 and 14)
Long-term loans
Deferred tax assets (Note 17)
Other investments
Total investments and other assets
Total assets

See accompanying notes to financial statements.

8

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Notes 10, 14 and 16)
Current portion of long-term debt (Notes 10 and 14)
Notes and accounts payable, trade (Note 14)
Income taxes payable (Note 17)
Accrued expenses
Warranty reserve
Other current liabilities (Note 10)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 10 and 14)
Long-term accounts payable, otherAccrued employees’ retirement benefits (Note 11)
Accrued directors’ retirement benefits
Net defined benefit liability (Note 11)
Asset retirement obligations
Deferred tax liabilities (Note 17)
Other long-term liabilities (Note 10)
Total long-term liabilities
Total liabilities
Contingent liabilities (Note 12)
Net assets:
Shareholders’ equity: (Note 23)
Common stock
Authorized –360,000,000 shares
Issued–166,885,530 shares
Additional paid-in capital
Retained earnings
Treasury stock, at cost (14,856,937 shares in 2014, 14,853,307 shares in 2013)
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge, net of tax
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

Millions of yen
2013
2014

Thousands of
U.S. dollars
2014¥11,296—
24,675
369
5,350
695
4,941
47,326¥10,759
6,100
21,999
2,642
5,629
584
5,275
52,988$109,755—
239,749
3,585
51,982
6,753
48,009459,833

5,300
9
—
40
10,27946
1,411
52
17,13764,463

—
14
8,411
53
—
52
1,273
48
9,851
62,83951,49687—
389
99,874447
13,710505
166,508626,341

12,485
19,601
59,319(10,041)
81,364

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

121,308
190,449
576,360(97,561)
790,556

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

2,222(0)(1,174)—
1,048
79,400¥142,239

25,738—15,556(13,574)
27,720818,276$1,444,617

See accompanying notes to financial statements.

9

CONSOLIDATED STATEMENT OF INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2014

Net sales
Cost of sales (Note 20)
Gross profit
Selling, general and administrative expenses (Notes 19 and 20)
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 7)
Gain on sales of investments in affiliates
OthersOther expenses and losses:
Interest expense
Amortization of transitional obligation for employees’
retirement benefits (Note 11)
Brand fee expense
Loss on disposal of property, plant and equipment andintangible assets
Loss on impairment of fixed assets (Note 21)
Loss on devaluation of investment in unconsolidated
subsidiaries
Loss on devaluation of investment in other securities (Note 7)
OthersMillions of yen
2013
2014
¥120,899¥113,062
87,294
81,48133,60531,581
25,527
26,956
8,078
4,625

Thousands of
U.S. dollars
2014$1,098,543
791,693
306,850
261,91244,938

260
195
589
1,763
48
3
—
235
3,093

201
180
685
1,736
5
—
2,495
214
5,516

2,526
1,895
5,723
17,130
466
29
—
2,283
30,052

143

219

1,389

463

463

217

220

26

7

—

71

20

—

4,499
2,108
253

—

194

—
342
1,211
6,507

6
369
1,355
12,239—3,323
11,76663,224

Net income before minority interests
Net income

1,809
254
2,063
4,444
¥4,444

3,497
851
4,348
7,891
¥7,891

17,5772,468
20,04543,179$43,179

Net income per share of common stock (Note 25)

2014¥29.232013¥51.91

U.S. dollars
2014
$0.28

Income before income taxes and minority interests
Income taxes (Note 17)
Current
DeferredYen

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2014
Millions of yen
2013
2014
¥7,891¥4,444

Net income before minority interests
Other comprehensive income: (Note 22)
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedge, net of tax
Foreign currency translation adjustments
Total other comprehensive income
Total comprehensive income
Total comprehensive income attributable to parent company’s interest
Total comprehensive income attributable to minority interests

Thousands of
U.S. dollars
2014$43,179

427
0
2,022
2,449
¥6,893

692
13
872
1,577
¥9,4684,148
019,64823,796$66,975

6,893
¥—

9,468
¥—

66,975$—

See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2014
Millions of yen

Deferred gains orRemeasurements
Number of Common Additional paid Retained Treasury Unrealized gain on losses on hedge, Translation of defined benefit Total net
sharesstock
in capital earnings
stock securities, net of tax net of tax adjustments
assetsplans

Balance at March 31, 2012 166,885,530¥12,485¥19,601

Net income¥49,408

7,891
451

Change in scope of consolidation
Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2013 166,885,530(1,444)
12,485

19,601

Net income

56,306

4,444

(215)

Change in scope of consolidation
Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2014 166,885,530(1,216)¥12,485¥19,601¥59,319¥(10,039)¥1,530¥ (13)¥(1,871)¥—(1)(1,444)
692

13

697

—

1,402

2,222

(0)

(1,174)—

79,400

4,444

(215)

(1)

¥(10,041)

7,891
451

(1)

(10,040)¥71,101(1)(1,216)
427

0

2,775

(1,397)1,805¥2,649¥—¥1,601¥(1,397)¥84,217

Thousands of U.S. dollars

gains or Translation Remeasurements Total net
Common Additional paid Retained Treasury Unrealized gain on Deferredon hedge, adjustmentsof defined benefit assets
stock
in capital earnings
stock securities, net of tax losses
net of tax
plans
Balance at March 31, 2013

$121,308$190,449

Net income$547,085

43,179(2,089)Change in scope of consolidation
Purchases of treasury stock
Cash dividends
Net changes in items other thanshareholders’ equity
Balance at March 31, 2014

(11,815)$121,308$190,449$576,360$(97,551)$21,590$(0)$(11,407)$—

43,179(2,089)(10)$(97,561)$771,474(10)(11,815)4,148

0

26,963(13,574)

17,537$25,738$—$15,556$(13,574)$818,276

See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENT OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2014

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
Gain on sales of investments in affiliates
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
Proceeds from sales of investments in affiliates
Payments for contributions in capital of unconsolidated subsidiaries
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Increase (decrease) in short- term loans receivable
Payments for long-term loans receivable
Repayments of long-term loans receivable
OthersNet cash used in investing activities
Financing activities:
Increase (decrease) 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 18)

Millions of yen
2013
2014

Thousands of
U.S. dollars
2014¥6,507¥12,239$63,224

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

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

17,8884,052
19874(81,724)(126)
86,864(2,526)
1,389
(213)
(29)
—
(17,130)—

2,246(3,085)2,205(1,369)
(270)
(6)
(364)
6,825
405
(152)
(4,054)
3,024

4,032
3,701
(8,718)
802
116
(28)
360
10,805406(210)(3,565)
7,436

21,823(29,975)
21,424(13,302)(2,623)(58)(3,537)66,314
3,935(1,477)(39,389)
29,38348——(89)(1,484)
171
(183)
(1)
—
14
15
(1,509)—(5,092)
3,952—(1,041)
21
(38)
1
(24)
16
9
(2,196)

466
—
—
(865)
(14,419)
1,661(1,778)
(10)
—
136
147
(14,662)371
5,300(6,100)(1)(1,216)(39)(1,685)
1,891
1,721
38,3281,230¥41,279

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

3,605
51,496(59,269)(10)(11,815)(379)(16,372)
18,373
16,722
372,406
11,951$401,079

See accompanying notes to financial statements.

12

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

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

2. Summary of Significant Accounting
Policies(a) Basis of consolidation and accounting forinvestments in unconsolidated subsidiaries andaffiliates
The consolidated financial statements include
the accounts of the Company and its consolidated
subsidiaries (together the “Companies”). Certain
immaterial subsidiaries are not consolidated, inwhich the investments are stated at cost.
All significant intercompany transactions andaccounts and unrealized intercompany profits
among consolidated entities are eliminated inconsolidation.
The cost in excess of underlying interest in net

assets of consolidated subsidiaries at the time ofacquisition, which is included in intangible assetsof the accompanying consolidated balance sheet,is deferred and amortized within the five-year
period.
Investments in affiliates (15 to 50 percentowned companies) in which the ability to exercise
significant influence exist, except immaterial
investments, are accounted for using the equity
method.
Immaterial investments in affiliates are statedat cost.
(b) Translation of foreign currencies
Monetary assets and liabilities denominated inforeign currencies are translated into Japanese
yen at the exchange rate prevailing at the balance
sheet dates except for those perfectly hedged byforward contracts, which are translated using thecontracted rate.
The foreign exchange gains and losses fromtranslation are recognized in the consolidated
statement of income to the extent that they are
not hedged by foreign exchange derivatives.
All assets and liabilities of foreign consolidated
subsidiaries are translated at the current rates
at the respective balance sheet dates. The
revenues and expenses of foreign consolidated
subsidiaries are translated at the current rates
at the respective balance sheet dates. The
components of shareholders’ equity are translated
at their historical exchange rates. Differencesin transaction are directly charged to foreign
currency translation adjustments in net assets.
(c) Securities
Securities owned by the Companies have beenclassified into two categories, held-to-maturity
debt securities or other securities, in accordancewith the accounting standard for financial
instruments.
Held-to-maturity debt securities are carried atamortized cost. Marketable securities classified asother securities are carried at fair value with any
changes in unrealized gain or loss, net of income
taxes, directly included in net assets.
Non-marketable securities classified as othersecurities are carried at cost. Cost of securities
sold is determined by the moving average method.

13

(d) Inventories
Finished products and work in process arestated at the lower of cost, determined by theindividual identification method, or their net
realizable value. Raw materials and supplies arestated at the lower of cost, determined by themoving average method, or their net realizablevalue.
(e) Allowance for doubtful receivables
The allowance for doubtful receivables isstated at the amount determined based on thedefault ratio sustained over a specific period in
the past and the estimated uncollectible amountdetermined based on the analysis of certain
individual accounts, including probable bad debts
and claims in bankruptcy.
(f) Warranty reserve
Warranty reserve 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 anddepreciation of other property, plant andequipment is computed by the declining balancemethod over the estimated useful lives ofrespective assets, principally ranging from 3 - 60
years for buildings and structures, and from 3 - 22years for machinery, equipment and vehicles.
(i) Amortization of intangible assets
Computer software held for internal use isamortized by the straight-line method over the
relevant economic useful life (5 years). The otherintangible assets, including patent rights, areamortized by the straight-line method over theestimated useful lives of respective assets.
(j) 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 the

14lease term with no residual value.
H o w e v e r, f i n a n c e l e a s e t r a n s a c t i o n s ,commencing on or before March 31, 2008, that
do not transfer ownership to the lessee, areaccounted for as operating lease transactions.
(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
in which they arise, except for derivatives thatare designated as hedging instruments. Gainsor losses arising from changes in fair value ofthe derivatives designated as cash flow hedging
instruments, net of the applicable income taxes,
are reported as a component of net assets.
(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 notcurrently taxable.
Income tax effects on such temporary
differences between tax and financial reporting
purposes are reflected as deferred income taxes
in the consolidated financial statements using theasset and liability method.
(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 unrecognized transitional obligation is
being amortized over 15 years. Actuarial gainor loss is amortized by the straight-line method
over the average remaining years of service of
employees.
(o) Directors’ retirement benefits
Domestic consolidated subsidiaries accrue
an estimated amount calculated in accordancewith 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 theweighted-average number of shares of common
stock outstanding during a year.
Diluted net income per share is not presented
since the Company has never issued any securities
with a dilutive effect, such as bonds with warrants
and convertible bonds. Cash dividends per sharerepresent the actual amount declared as applicable to the respective years.
(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 ofpurchase 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, 2013
have been reclassified to conform to the presentation for the year ended March 31, 2014.

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 ¥102.92=U.S.$1, the approximate exchange rate prevailing in the Japanese foreign exchange
market on March 31, 2014. This translation should not be construed as a representation that the yenamounts actually represent, have been, or could be converted into U.S. dollars.

4. Accounting Changes(a) Accounting standard for Retirement Benefits (ASBJ Statement No.26, issued May 17, 2012) and
Implementation Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No.25, issued
May 17, 2012)
Effective from the fiscal year ended March 31, 2014, the Companies adopted the revised accounting
standard for retirement benefits except for certain provisions described in the main clause of Section 35of the standard and in the main clause of Section 67 of the guidance. These accounting standards require
entities to apply a revised method for recording the retirement benefit obligation, after deducting pension
plan assets, as a liability for retirement benefits. In addition, unrecognized actuarial differences andunrecognized prior service costs are recorded as a liability for retirement benefits.
Concerning the application of the Accounting Standard for Retirement Benefits, based on theprovisional treatment set out in Clause 37 of the standard, the effects of such changes in the current
fiscal year have been recorded in retirement benefits liability adjustments through accumulated othercomprehensive income.
As a result of this change, a liability for retirement benefits was recognized in the amount of ¥10,279
million ($99,874 thousand) and accumulated other comprehensive income decreased by ¥1,397 million($13,573 thousand) as of March 31, 2014.
In addition, net assets per share decreased by ¥9.19 ($0.09).

5. Accounting Standards issued but not yet applied(a) Accounting standard for Retirement Benefits (ASBJ Statement No.26, issued May 17, 2012) and
Implementation Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No.25, issued
May 17, 2012)① Overview
Accounting method of actuarial gain or loss and prior service cost, calculation method of retirement
benefit obligations and service costs, and disclosure were revised.
② Application due date
The revised calculation method of retirement benefit obligations and service cost is effective at the
beginning of the fiscal year ending March 31, 2015. In addition, the revised accounting standard is
not retrospectively applied to the prior year’s financial statements.
③ The effect of the adoption
The effect of the adoption of the revised calculation method of retirement benefit obligations andservice cost is now under assessment.

15

6. Change in Presentation
Consolidated statement of income
Effective from the fiscal year ended March 31, 2014, the Companies changed presentation method of
the “royalty income” from group companies and other companies as consideration of technology licensing.
Until the fiscal year ended March 31, 2013, the “royalty income” had been included in “Others” under “Other
income”. Effective from the fiscal year ended March 31, 2014, it was included in “Net sales”.
The purpose of change in presentation is to more properly present the result of operations as theimportance of “royalty income” in consideration for licensing technology is anticipated to increaseprimarily due to the change in transaction scheme according to the increase in the companies’ overseas
production bases.
To reflect this change in presentation, the Companies restated the consolidated financial statements ofthe fiscal year ended March 31, 2013. As a result, ¥40 million of “Others”under “Other income” in the 2013
consolidated statement of income has been reclassified to “Net sales”.

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

Equity securities

Equity securities

Acquisition
cost¥1,712¥1,712

2014
Carrying
value¥5,700¥5,700Millions of yen
Unrealized Acquisition
gains
cost
¥1,712¥3,988¥1,712¥3,9882013
Carrying
value¥5,072¥5,072

Unrealized
gains¥3,360¥3,360Thousands of U.S. dollars
2014
Acquisition Carrying Unrealized
cost
value
gains
$16,634$55,383$38,749$16,634$55,383$38,749

Losses on devaluation of marketable equity securities for the year ended March 31, 2013 was ¥4 million.
Negotiable certificates are classified as non-marketable securities of deposit of ¥19,500 million ($189,468
thousand) and ¥17,000 million as of March 31, 2014 and 2013, respectively. Non-marketable equity securities
as other securities primary consist of ¥123 million ($1,195 thousand) and ¥168 million as of March 31, 2014
and 2013, respectively. Amount of sales and gain on sales of non-marketable equity securities as other securities for the year ended March 31, 2014 were ¥47 million ($457 thousand) and ¥3 million ($29 thousand),
respectively. Losses on devaluation of non-marketable equity securities as other securities for the year ended
March 31, 2013 was ¥2 million.

16

8. Property, Plant and Equipment
Property, plant and equipment at March 31, 2014 and 2013 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
2013
2014
¥6,193¥6,471
34,38735,34429,52028,996
389
379
7,159
7,501
191
226
39
1,013
77,87879,930(58,048)(58,821)¥19,830¥21,109

Thousands of
U.S. dollars
2014$62,874
343,412281,733
3,682
72,882
2,197
9,843
776,623(571,522)$205,101

Depreciation expense for the years ended March 31, 2014 and 2013 were ¥1,841 million ($17,888 thousand) and ¥2,065 million, respectively.

9. Intangible Assets
Intangible assets at March 31, 2014 and 2013 consisted of the following:

Goodwill
Others
Total

Millions of yen
2013
2014
¥—
¥3,128400
539¥400¥3,667

Thousands of
U.S. dollars
2014$30,393
5,237$35,630

10. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding on March 31, 2014 and2013 ranged principally from 0.57% to 1.78% and 0.66% to 2.82%, respectively. Long-term debt on March
31, 2014 and 2013 consisted of the following:
Millions of yen
2013
2014
Loans, principally from Japanese banks and insurance companies:
maturing 2013, interest 0.93 % - 1.95 %maturing 2016 – 2018, interest 0.72 % - 0.98 %Less current portion

¥—
5,300
5,300
—
¥5,300¥6,100
—
6,100
6,100
¥—

Thousands of
U.S. dollars
2014$—
51,49651,496—$51,49617

The aggregate annual maturities of long-term debt at March 31, 2014 were as follows:Year ending March 31
2015
2016
2017
2018
2019 and later
Total

Millions of yen
¥—
—
500
500
4,300
¥5,300Thousands of
U.S. dollars
$—
—
4,858
4,858
41,780$51,496

The aggregate annual maturities of finance lease obligations at March 31, 2014 were as follows:Year ending March 31
2015
2016
2017
2018
2019 and later
Total

Millions of yen
¥30
24
15
11
1
¥81

Thousands of
U.S. dollars
$291
233
146
107
10
$787

11. Employees’ Retirement Benefits
Year ended March 31, 2014(a) Overview
The Company and certain subsidiaries have a non-contributory funded pension plan for employees. The
Company and certain subsidiaries pay the full cost of the benefits to a trust bank which act as the trustees.
Certain consolidated subsidiaries have adopted the conventional method in calculating their projected
benefit obligation.
(b) Defined benefit plans① The changes in the retirement benefit obligation during the year ended March 31, 2014 are as follows:

Retirement benefit obligation at April 1, 2013
Service cost
Interest cost
Actuarial loss
Retirement benefit paid
Retirement benefit obligation at March 31, 2014

Millions of yen
2014¥14,666
730
134
12
(875)
¥14,667

Thousands of
U.S. dollars
2014$142,499
7,093
1,302
117
(8,502)$142,509② The changes in pension assets during the year ended March 31, 2014 are as follows:

Pension assets at April 1, 2013
Expected return on pension assets
Actuarial loss
Contribution by the companies
Retirement benefit paid
OthersPension assets at March 31, 201418

Millions of yen
2014¥3,902
71
433
298
(277)
(38)
¥4,389Thousands of
U.S. dollars
2014$37,913
690
4,207
2,895
(2,691)(369)$42,645

③ The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2014 for the Company’s and the consolidated subsidiaries’
defined benefit plans

Funded defined benefit obligations
Pension assets at fair value
Unfunded defined benefit obligations
Net amount of liabilities and assets recognized in consolidated balance sheet
Retirement benefit liabilities
Net amount of liabilities and assets recognized in consolidated balance sheet

Millions of yen
2014¥4,960(4,389)571
9,708
10,27910,279¥10,279

Thousands of
U.S. dollars
2014$48,193(42,645)5,548(94,326)
99,874
99,874$99,874④ The components of retirement benefit expense for the year ended March 31, 2014 are as follows:

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

Millions of yen
2014
¥730
134
(71)
463
130
¥1,386

Thousands of
U.S. dollars
2014$7,093
1,302
(690)
4,499
1,263
$13,467⑤ Unrecognized prior service cost and unrecognized actuarial loss included in accumulated other comprehensive income (before tax effect) as of March 31, 2014 are as follows:

Unrecognized actuarial loss
Unrecognized translation obligation
Total

Millions of yen
2014
¥876
463
¥1,339Thousands of
U.S. dollars
2014$8,511
4,499$13,010⑥ The fair value of pension assets, by major category, as a percentage of total plan assets as of March
31, 2014 are as follows:
Domestic bonds
Domestic equity securities
Foreign bonds
Foreign equity securities
Insurance assets (General account)
Other
Total

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.

19

⑦ The assumptions used in accounting for the above plans were as follows:
Discount rate
Expected rate of return on pension assets

2014
1.1%
2.0%

(c) Defined contribution plans
Amount of required contributions to defined contribution plans of the Company and certain domestic
consolidated subsidiaries for the fiscal year ended March 31, 2014 was ¥202 million ($1,963 thousand).
(d) Multiemployer pension plans
The required contribution of multiemployer pension plans for the fiscal year ended March 31, 2014, was¥84 million ($816 thousand).
① Funded status of the immediate vicinity of the multiemployer pension plans

Amount of pension assets
Amount of obligations
Difference

Millions of yen
2014¥281,339
290,987¥(9,648)

Thousands of
U.S. dollars
2014$2,733,570
2,827,312$(93,742)

The difference was principally attributable to the difference between retained earnings of¥12,320 million ($119,705 thousand) determined in the pension calculation and unamortized priorservice liabilities of ¥21,968 million ($213,447 thousand).
Prior service liabilities of the plans are amortized by the straight-line method over 20 years.
The Companies recognized premium contribution of ¥31 million ($ 301 thousand) paid as theamortization in the consolidated financial statements for the year ended March 31, 2014.
Premium contribution percentage of the company as a percentage of thewhole system

2014
0.569%The percentage was not equal to actual burden percentage for the Companies.

Year ended March 31, 2013(a) Overview
The severance indemnity regulations of the Company and certain subsidiaries provides for benefit payments based on the employees’ current basic rate of pay and length of service.
The Company and certain subsidiaries have a non-contributory funded pension plan for employees. The
Company and certain subsidiaries pay the full cost of the benefits to a trust bank which act as the trustees.
One domestic consolidated subsidiary have joined the pension fund of a comprehensive funding

Amount of pension assets
Amount of obligation
Difference

Premium contribution percentage of the company as a percentage of thewhole system

20

Millions of yen
2013¥254,797
299,366¥(44,569)
2013
0.565%

(b) Projected benefit obligation
The liability for employees’ retirement benefits at March 31, 2013 consisted of the following:

Projected benefit obligation
Fair value of plan assets
Unfounded status

Unrecognized transitional obligation
Unrecognized actuarial loss
Accrued retirement benefits obligation

Millions of yen
2013¥14,666(3,902)
10,764(926)(1,427)¥8,411

Certain consolidated subsidiaries have adopted the conventional method in calculating their projected
benefit obligation.
(c) Benefit costs
The components of net periodic benefit costs for the years ended March 31, 2013 was as follows:

Service cost
Interest cost
Expected return on plan assets

Amortization of transitional obligation
Recognized actuarial loss
Periodic benefit costs
Defined contribution plan premium
Total(d) Bases of calculation for projected benefit obligation① Period allocation method of estimate benefit payment
Period straight-line method② Discount rate
③ Expected rate of return on plan assets

Millions of yen
2013
¥683
218
(62)
463
109
¥1,411177¥1,588

2013
1.1%
2013
2.0%

④ Amortization period of actuarial loss / gain

2013
10 years⑤ Amortization period of transitional obligation

2013
15 years

12. Contingent Liabilities
On March 31, 2014, contingent liabilities for loans guaranteed by the Company, principally on behalf of
non-consolidated subsidiaries and affiliated companies, amounted to ¥772 million ($7,501 thousand).

21

13. 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, 2014 and 2013, 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

Millions of yen
2013
2014
¥169
¥84
328
222
(494)
(306)
¥3
¥—

Thousands of
U.S. dollars
2014
$816
2,157
(2,973)$—Future lease payments (including the interest portion thereon) subsequent to March 31, 2014 and 2013
for finance leases accounted for as operating leases were as follows:
Thousands of
U.S. dollars
Millions of yen
Due within one year
Due after one year
Total

2014
¥—
—
¥—

2013
¥3
—
¥3

2014
$—
—
$—

Periodic lease expenses, as a lessee, charged to income for the years ended March 31, 2014 and 2013
were ¥3 million ($29 thousand) and ¥39 million, respectively. The pro forma amounts of depreciation forthe years ended March 31, 2014 and 2013 would be calculated at ¥3 million ($29 thousand) and ¥39 million by using the straight-line method over the lease term with no salvage value.

14. Financial Instruments
Overview(a) Policy for financial instruments
The Companies invest in short-term deposits for fund management, where temporally cash surplus isinvested in low-risk financial instruments. The Companies raise a fund by bank borrowings. The Companies
use derivatives only to reduce risk, and don’t use derivatives for speculative trading purposes.
(b) Contents of financial instruments, related risk and risk management system
Operating receivables such as notes and accounts receivable, trade are exposed to customer credit risk.
The Companies try to reduce this risk by the Companies’ sales management rules. Investments, consistingof marketable securities of corporations, are exposed to stock price fluctuation risk in market. To address
this risk, the Companies monitor their stock price in every quarter. Operating payables such as notes andaccounts payable, trade are almost due within six months. Debts are mainly used in normal operations
and capital investments. The maturity date of the debts is up to 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

22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 ($48,581 thousand) at
March 31, 2014) contract are as follows:① March 31 and September 30 every year, the Company must keep the amount of net assets in the
consolidated balance sheet over ¥53,325 million ($518,121 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
to fluctuation due to the change in underlying assumptions. The contract amounts of derivatives are discussed in “15. Derivative Financial Instruments” below are not an indicator of the market risk associatedwith derivative transactions.
Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2014 and 2013, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen

2013
2014
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and deposits¥—¥21,779 ¥21,779¥— ¥21,328 ¥21,328
Notes and accounts receivable, trade
40,000(6)
37,95237,943(9) 40,006
Marketable securities and investment securities
25,97032,6186,648
30,65837,537
6,879¥87,304¥93,946¥6,642¥90,389¥97,259¥6,870Total assets
Short-term bank loans¥—¥11,296 ¥11,296¥— ¥16,859 ¥16,859
Notes and accounts payable, trade21,99921,999—24,67524,675—Long-term debt
—
—
—
5,300
5,300
0
¥—
¥41,271 ¥41,271¥0 ¥38,858 ¥38,858
Total liabilities
Derivatives
¥(0)
¥(0)
¥—
¥—
¥—
¥—
Thousands of U.S. dollars
2014
Carrying value Fair value Difference
Cash and deposits$211,611 $211,611$—
Notes and accounts receivable, trade368,752 368,665(87)
Marketable securities and investment securities 297,882 364,720
66,838$878,245 $944,996 $66,751
Total assets
Short-term bank loans$109,755 $109,755$—
Notes and accounts payable, trade239,749 239,749—
Long-term debt
51,49651,4960$401,000 $401,000$0Total liabilities
Derivatives
$—
$—
$—

*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 dis-23

counted 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.
Long-term
debt⑥
The fair value of long-term debt is determined based on the present value of principles and interest,
discounted by the interest rate that would be applied if similar new borrowings were entered into.
⑦ Derivatives
Please refer to “15. Derivative Financial Instruments”.
(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2014 and 2013
were as follows:
Thousands ofMillions of yen
U.S. dollars
Investment securities for which the market prices are not available

2014
¥403

2013
¥5,4692014$3,916

Market prices don’t exist for these items, or the cost of estimating cash flow is considered prohibitive.
These items are not included in ③ Marketable securities and investment securities in the above, because
their fair value are not readily determinable.
(c) The aggregate annual maturities of financial assets at March 31, 2014 and 2013 were as follows:

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

Millions of yen
2013
2014
Due within Due after one Due after five Due after Due within Due after one Due after five Due after
one year year through years through ten years one year year through years through ten years
five years
ten years
five years
ten years¥—¥—¥—¥21,771¥—¥—¥— ¥21,319
167——
37,757
195—— 39,839
19,500¥79,028

—
¥195

—
¥—

— 17,000¥— ¥78,158

Thousands of U.S. dollars
2014
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$211,533$—$—$—
Notes and accounts receivable, trade 366,858
1,894
—
—
Marketable securities and investment securities:
Negotiable certificate of deposit 189,468———$767,859 $1,894
$—
$—
Total

24

—
¥167

—
¥—

—
¥—

(d) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2014

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2013

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¥11,296
¥—
¥—
¥—
¥—
¥—
—
—
500
500
4,300
—
¥11,296¥—¥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¥10,759
¥—
¥—
¥—
¥—
¥—
6,100
—
—
—
—
—
¥16,859
¥—
¥—
¥—
¥—
¥—
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$109,755
$—
$—
$—
$—
$—
—
—
4,858
4,858 41,780—$109,755$— $4,858 $4,858 $41,780$—

15. Derivative Financial Instruments
The Company has entered into derivative transactions (foreign exchange contract, interest rate swap
and currency option transaction) in order to manage certain risks arising from adverse fluctuations in foreign currency exchange rate and in interest rate. The Company doesn’t hold or issue derivative financial
instruments for the purpose of speculative trading. Derivative transactions are entered into by the Finance
Department under the rules approved by the Board of Directors. Derivative transactions are inspected validity of the operation by the Corporate Auditing Office.
Derivatives designated as hedging instruments at March 31, 2014 and 2013 were as follows:① Foreign exchange contract, etc.

Hedged item

Millions of yen
2013
2014
Contract Contract amount Fair value Contract Contract amount Fair value
amount due after one year
amount due after one year

Accounting in principle
Foreign exchange forward contracts:
To sell foreign currencies:
British pound
accounts receivable¥—
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
1,939
British pound85
accounts receivable
Euro—
Canadian dollars—
To buy foreign currencies:
U.S. dollars
accounts payable—¥2,024
Total

¥—

¥—

¥7

¥—

¥(0)

—
—
—
—

—
—
—
—

3,266
—
4
194

—
—
—
—

—
—
—
—

—
¥—

557
—
¥— ¥4,028

—
¥—

—
¥—

25

Hedged item

Thousands of U.S. dollars
2014
Contract Contract amount Fair value
amount due after one year

Accounting in principle
Foreign exchange forward contracts:
To sell foreign currencies:
British pound
accounts receivable$—
Appropriated accounting for foreign currency
Foreign exchange forward contracts:
To sell foreign currencies:
U.S. dollars
18,840British pound826
accounts receivable
Euro—
Canadian dollars—
To buy foreign currencies:
U.S. dollars
accounts payable—$19,666
Total

$—

$—

—
—
—
—

—
—
—
—

—
$—

—
$—

② 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
2013
2014
Contract Contract amount Fair value Contract Contract amount Fair value
amount due after one year
amount due after one year

¥5,000 ¥5,000

¥—

¥—

¥—

¥—

Thousands of U.S. dollars
2014
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 $48,581 $48,581$—

16. Pledged Assets
The following assets were pledged as collateral at March 31, 2013 to secure short-term bank loans
amounting to ¥2 million (See Note 10):Land
Machinery and equipment, net
Buildings and structures, net
Total

26

Millions of yen
2013
2014
¥581
¥—
2
—
1,840
—
¥2,423¥—Thousands of
U.S. dollars
2014
$—
—
—
$—

17. 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, 2014 and 2013 were approximately 37.2%.
Following the promulgations on March 31, 2014 of the “Act for Partial Revision of the Income Tax Act,etc.” (Act No.10 of 2014), effective from the fiscal year beginning on and after April 1, 2014, the Special
Reconstruction Corporation Tax is abolished. In accordance with this tax reform, the effective statutory
tax rate, used to measure deferred tax assets and liabilities, is changed from 37.2% to 34.8% for the temporary differences expected to be realized after the fiscal year beginning on April 1, 2014.
This change of tax rate decreased net deferred tax assets (after netting deferred tax liabilities) by ¥151
million ($1,467 thousand), and increased deferred income taxes by ¥151 million ($1,467 thousand).
The reconciliation between the statutory rate and effective tax rate of income taxes for the year ended
March 31, 2014 was 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 of consolidated subsidiaries
Effect of change in enacted tax rate
Refund of income taxes
Others
Effective tax rate

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

Reconciliation between the statutory tax rate and the effective tax rate for the year ended March 31,
2013 is not presented, because the difference between the statutory rate and effective tax rate of income
taxes less than 5%.
The significant components of deferred tax assets and liabilities at March 31, 2014 and 2013 were as
follows:
Millions of yen
2013
2014
Deferred tax assets:
Accrued employees’ bonuses
Allowance for doubtful receivables
Devaluation of inventories
Devaluation of securities
Accrued employees’ retirement benefits
Amount not shifted to defined contribution pension plan
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

Thousands of
U.S. dollars
2014

¥770
63
694
386
—
—
3,124
588
41
1,965
¥7,631(4,061)¥3,570

¥921
64
518
382
2,976
10
—
592
208
2,098
¥7,769(4,132)¥3,637$7,482
612
6,743
3,750
—
—
30,354
5,713
398
19,093$74,145(39,458)$34,687

(131)

(137)

(1,273)27

(1,339)
(9)
(16)
(528)
¥(2,023)¥1,547

Unrealized gain on securities
Asset retirement obligations
Enterprise taxes receivable
Foreign consolidated subsidiaries’ retained earning
Total deferred tax liabilities
Net deferred tax assets(1,138)(7)—(385)¥(1,667)¥1,970(13,010)(87)(155)(5,131)$(19,656)$15,031

18. Cash and Cash Equivalents
Reconciliation between cash and time deposits in the consolidated balance sheets and cash and cash
equivalents in the consolidated statements of cash flows at March 31, 2014 and 2013 were presented asfollows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2013
2014
¥21,328¥21,779
17,00019,500¥38,328¥41,279

Thousands of
U.S. dollars
2014$211,611
189,468$401,079

19. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2014
and 2013 were as follows:

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

Millions of yen
2013
2014
¥2,268¥2,103
3,462
3,336
515
585
10,501
11,257
559
570
599
560
743
789
1,302
1,545
1,064
924
495
575
4,019
4,712
¥25,527¥26,956

Thousands of
U.S. dollars
2014$20,433
32,414
5,684
109,376
5,538
5,441
7,666
15,012
8,978
5,587
45,783$261,912

20. Research and Development Costs
Research and development costs charged to income were ¥1,551 million ($15,070 thousand) and ¥1,566 million for the years ended March 31, 2014 and 2013, respectively.

2821. Loss on Impairment of Fixed Assets
Grouping of assets is based on the business units, except for idle asset, which is grouped individually.
Loss on impairment of fixed assets for the year ended March 31, 2013 amounted to ¥71 million.
The recoverable value of assets was calculated based on their estimated future cash flows, except landand buildings, for which the recoverable value was calculated by the market value.
The loss on impairment of fixed assets for the year ended March 31, 2013 consisted of the following:
Millions of yen
2013
Numazu-shi, Shizuoka-ken, Japan:
Buildings and structures
Machinery and equipment
Sub total
Itami-shi, Osaka-fu, Japan:
Land
Buildings
Sub total
Fukuoka-shi, Fukuoka-ken, Japan:
Land
Buildings
Sub total
Otsu-shi, Shiga-ken, Japan:
Land
Total

Idle property
Idle property

¥50
0
50

Idle property
Idle property

3
912

Idle property
Idle property

2
79

Idle property

0¥71

22. Other Comprehensive Income
The components of other comprehensive income for the years ended March 31, 2014 and 2013 were as
follows:
Millions of yen
2013
2014
Unrealized holding gain on securities:
Current period changes in unrealized gain (loss)
Reclassification adjustment
Total unrealized holding gain on securities before tax effects
Tax effects
Unrealized holding gain on securities, net of tax effects
Deferred gains or losses on hedge:
Current period changes in unrealized gain (loss)
Total deferred gains or losses on hedge, before tax effects
Tax effects
Deferred gains or losses on hedge, net of tax effects
Foreign currency translation adjustments:
Current period changes
Total other comprehensive income

Thousands of
U.S. dollars
2014

¥628
—
628
(201)
427

¥1,042
3
1,045
(353)
692

$6,102—
6,102(1,954)
4,148

0
0
(0)
0

20
20
(7)
13

0
0
(0)
0

2,022
¥2,449872¥1,577

19,648$23,79629

23. 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.

24. Related Party Transactions
During the years ended March 31, 2014 and 2013, 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, 2014
and 2013 were as follows:
Millions of yen
2013
2014
For the years ended March 31:
Payment of brand fee
Sales of investments in affiliates
Gain on sales of investments in affiliates

¥217
—
—

¥220
3,952
2,495

Thousands of
U.S. dollars
2014$2,108——

Note: Brand fee rate was contracted beforehand.
Sales price of investment in affiliates was determined based on the market priceDuring the years ended March 31, 2014 and 2013, 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,
2014 and 2013 were as follows:
Millions of yen
2013
2014
For the years ended March 31:
Rent income for land, buildings and structures

¥126

¥120

Thousands of
U.S. dollars
2014$1,224

Note: Rent price was market price.

25. Net Income and Net Assets per Share
Net income and net assets per share for the years ended March 31, 2014 and 2013 were as follows:

Net income per share
Net assets per share

30

2014
¥29.23553.96Yen

2013¥51.91522.26

U.S. dollars
2014
$0.28
5.38

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

Weighted-average number of shares of common stockThousands of shares
2013
2014
152,032
152,030

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

Millions of yen
2013
2014
¥7,891¥4,444——¥7,891¥4,444

Thousands of
U.S. dollars
2014$43,179—$43,179

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

Number of shares at year-end

Thousands of shares
2013
2014
152,032
152,029

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

Millions of yen
2013
2014
¥79,400¥84,217——¥79,400¥84,217

Thousands of
U.S. dollars
2014$818,276—$818,276

26. 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.
As described in “6. Change in Presentation”, effective from the fiscal year ended March 31, 2014, theCompanies changed the presentation of “royalty income” from “Others” under “Other income” to “Netsales”.
To reflect this change in presentation, the Companies restated the reportable segment information for
the fiscal year ended March 31, 2013. As a result, “Net sales”and “Segment income” of “Molding Machinery” had increased by ¥6 million, and “Net sales” and “Segment income” of “Hydraulic Equipment” hadincreased by ¥34 million.

31

(C) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2014 and 2013 wereas follows:Year ended March 31, 2014

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

Millions of yen
Reportable segments
Other Products
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment¥73,214—
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

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

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

Year ended March 31, 2014

Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure¥——¥1,841
1,767

Millions of yen

Year ended March 31, 2013

Net Sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditure¥1,841
1,767¥73,195—
73,195¥6,089¥64,948¥28,90263
28,965¥1,823¥37,038

¥907
295

¥484
138

¥9,784 ¥111,881
73
136
9,857 112,017¥(78)¥7,834¥6,519 ¥108,505
¥448
129

¥1,839562

Total

Adjustments Consolidated¥9,018 ¥120,899
2,487
2,623
11,505 123,522¥(173)¥7,661¥15,154 ¥123,659¥— ¥120,899(2,623)—(2,623) 120,899¥417¥8,078¥18,580 ¥142,239

¥226
208

¥2,065
770

Thousands of U.S. dollars
Reportable segments
Other products
Total
Molding Machine Hydraulic
Sub total
Machinery
Tools Equipment$711,368—
711,368$48,242$688,350$223,941
2,264
226,205$(6,996)$319,190$8,97813,408$4,042
952$73,766 $1,009,075
515
2,779
74,281 1,011,854$(1,914) $39,332$55,810 $1,063,350$2,934
185$15,954
14,545$89,468 $1,098,543
23,552
26,331
113,020 1,124,874$1,836$41,168$147,299 $1,210,649$1,934
2,624$17,888
17,169¥——¥2,065770

Adjustments Consolidated$— $1,098,543(26,331)—(26,331) 1,098,543$3,770$44,938$233,968 $1,444,617$——$17,888
17,169Note: “Other products” is a business segment that is not included in reportable segments. It included
business activities of electronic controls, etc.

32

(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, 2014 and 2013 were as follows:
Sales
Total reportable segments
Other products
Eliminations
Net sales on consolidated financial statements

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

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

Millions of yen
2013
2014
¥112,017¥104,140
11,505
11,632(2,623)(2,710)¥120,899¥113,062

Thousands of
U.S. dollars
2014$1,011,854
113,020(26,331)$1,098,543

Millions of yen
2013
2014
¥7,834¥4,048
(173)
189
417
388
¥8,078¥4,625

Thousands of
U.S. dollars
2014$39,332
1,836
3,770$44,938

Millions of yen
2013
2014
¥108,505¥109,440
15,154
15,16021,68924,321(3,109)(241)¥142,239¥148,680

Thousands of
U.S. dollars
2014$1,063,350
147,299
236,310(2,342)$1,444,617

Note: Company-wide assets are mainly cash and cash equivalents, securities and investment securities
that don’t belong to the reportable segments(E) Related segment information① Information about products and services
Information about products and services is not disclosed because reportable segment information isbased on products and services.
② Information about geographical areas
Sales information about geographical areas for the years ended March 31, 2014 and 2013 were follows:As described in “6. Change in Presentation”, effective from the fiscal year ended March 31, 2014,
the Companies changed presentation method of the “royalty income” from “Others” within “Other income” to “Net sales”.
To reflect this change in presentation, the Companies restated sales information about geographicalareas for the fiscal year ended March 31, 2013. As a result, Sales of “Japan”, “North America” and “Asia”
had increased by ¥12 million, ¥6 million and ¥22 million, respectively.

Japan¥46,870

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

Other¥2,601

Total¥113,062Japan¥46,305

Millions of yen
2013
North America
Asia¥17,457¥54,476

Other¥2,661

Total¥120,899

33

Japan$455,402

Thousands of U.S. dollars
2014North America
Asia
Other
$187,087$430,781$25,273

Total$1,098,543

Note: Sales figures are classified based on the customer locations.
Property, plant and equipment information about geographical areas for the years ended March 31,
2014 and 2013 were follows:Japan¥17,657

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

Total¥21,109Japan¥18,758

Millions of yen
2013
North America
Asia
¥188
¥884

Total
¥19,830

Japan$171,560

Thousands of U.S. dollars
2014North America
Asia$2,643$30,898

Total$205,101③ 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, 2014 and 2013.
(F) Information about impairment loss on long-lived assets for each reportable segment
Information about impairment loss on long-lived assets for the years ended March 31, 2013 was follows:

Molding
Machinery¥—

Machine Tools¥—

Millions of yen
2013
Hydraulic
Other products
Equipment¥—¥71

Adjustments

Total

¥—

¥71

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,
2014 was follows:

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance

34

Molding
Machinery
¥417
3,128

Molding
Machinery$4,05230,393

MachineTools¥——

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

MachineTools$——

Thousands of U.S. dollars
2014
Hydraulic
Other
Adjustments
Equipment
products
$—
$—
$—
—
—
—

Adjustments
¥—
—

Total
¥417
3,128

Total
$4,05230,393

There was no applicable matter for the years ended March 31, 2013.
(H) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2014 and 2013.

27. Subsequent Event
Cash Dividends
The following appropriations of retained earnings, which have not been reflected in the accompanying
consolidated financial statements for the year ended March 31, 2014, were approved at the meeting of theBoard of Directors held on April 30, 2014:
Cash dividends (¥4.00 = $0.04 per share) ¥608 million ($5,908 thousand)35

Report of Independent Auditors

36

Directors & Audit and Supervisory Board Members

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

		 Teruyuki Makino
		 Shinsuke Wataya
		 Makoto Tsuji
		 Kazuo Tanigawa

37