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

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

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

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

Contents
1

An Outline of the Toshiba Machine Group
Corporate Information2

Foreword

4

Financial Highlights (consolidated)

5

Overseas Operations for Fiscal Year Ended March 31, 2016

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

Independent Auditor's Report

37

Directors & Audit and Supervisory Board Members

An Outline of the Toshiba Machine GroupA highly respected integrated machine building group, internationallyrespected for its total capability in the production of quality plastic processing
machinery, die-casting machines, machine tools, precision machinery, industrial
robot, and electronic controls.

Based on their highly innovative technology, expertise, and experience
nurtured over decades as one of the world’s leading machine builders, the Toshiba
Machine Group’s global-type solution business provides customers, in suchvarious industries as nano-technology, optics, electronics and automotives withtotal satisfaction by careful analysis and the recommendation of optimum-type
solutions to their requirements.

Corporate Information (as of March 31, 2016)
Company Name:TOSHIBA MACHINE CO., LTD.

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

1938

Capital:¥12,485 million (US$110,799 thousand)Shares of Common Stock
Issued and Outstanding:

166,885,530 shares

Number of Shareholders:

11,010

Number of Employees:

1,817 (Consolidated: 3,286)

1

Foreword 2016
The Toshiba Machine group started the mid-term management plan “TM AC Plan” (Toshiba
Machine Adapt to the Change Plan) on April 1, 2010. With “advancement and expansion” as its
basic concept, we implemented advancement and expansion strategies simultaneously. The
advancement strategy focused on using our core technology to create advanced products which
would support a new industry pyramid formed with energy and environment as keywords.
Meanwhile, the expansion strategy strengthened the commercial value of already released
products and aimed to expand the market in emerging countries, which form the largest user
segment in the current industry pyramid.
In the first half of FY2015, the Japanese economy slightly recovered primarily for exporting
companies owing to the government’s economic policy, continued yen devaluation, and decreasedmaterial prices. Outside Japan, while the US economy remained stable and the Indian economy
slowly recovered, the Chinese economy clearly slowed down and the economies of South East
Asian countries remained unstable. Moreover, the price of crude oil considerably dropped. As weentered 2016, the yen value increased as a result of risk avoidance. With all these factors, thefuture world economy continued to be uncertain. The machine industry, to which our groupbelongs, also showed general recovery primarily in domestic capital investment demand, but ourbusiness confidence varied with the target market and product.
The mid-term management plan “TM AC Plan Advanced III” (Toshiba Machine Adapt to the
Change Plan Advanced III), which was launched on April 1, 2015 in the economic context
described above, aimed to increase sales and market presence in a global market which waspredicted to grow in the future. More specifically, our group made every possible effort to discover
new markets, secure purchase orders, develop new products for both domestic and international
markets, implement production innovation to improve production efficiency, and strengthen our
financial position.
At the end of the financial year, sales were 117,259 million yen (US$1,040,637 thousand), a
5.7% decrease from the previous year. The decrease was attributable to the worsening market
situations in China and South East Asia.

2Operating income was 3,806 million yen (US$33,777 thousand), a 20.5% decrease from theprevious year. Current net income was 4,806 million yen (US$42,652 thousand), an 11.5%
increase from the previous year. This increase was attributable to the capital gain from our
hydraulic equipment subsidiary.
The dividend for FY2015 was 12 yen (US$0.11) for the year.
While the US and Japanese economies are predicted to remain stable, the overall future
economic climate will remain unpredictable. Slower economic growth in some emerging countries
including China and possible future restrictions on domestic capital investment due to prolonged
low crude oil prices and foreign exchange rate fluctuations are some of the reasons.
The new mid-term management plan “TM-PΣ Plan” (Toshiba Machine Profit Σ Plan) started
in FY2016. While still following the concept of the previous mid-term management plans;“advancement and expansion”, this new plan holds “shift to a high revenue company” and“selection and concentration” as new basic strategies.
In the “shift to a high profitable company” strategy, we will implement total cost reduction
measures in order to accomplish our emergent task, recovering profitability. In the “selection andconcentration” strategy, we will concentrate our management resources on active markets,regions, and customers to help the whole group steadily grow.
Currently, our group is working on thorough quality and environmental control in accordancewith ISO 9001 and 14001. We are also actively engaging in corporate social responsibility programs
such as future executive training to support the group’s future, legal compliance, and social action
activities.

3

FINANCIAL HIGHLIGHTS (consolidated)
Net sales

2016

2015

2014

2013

2012

¥117,259¥124,373¥113,062¥120,899¥119,550¥90,734¥81,481¥87,294¥88,312¥28,851¥26,956¥25,527¥23,796¥4,788¥4,625¥8,078¥7,442¥6,522¥6,507¥12,239¥9,149¥2,210¥2,063¥4,348¥2,428¥4,312¥4,444¥7,891¥6,721¥8,748¥6,893¥9,468¥6,840¥28.36¥29.23¥51.91¥44.21

¥8.00

¥7.50

¥9.00

¥9.00

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

3,466

3,454

3,197

3,157

$1,040,637

Cost of sales¥85,005$754,393

Selling, general andadministrative expenses
Operating income¥28,448$252,467¥3,806$33,777

Net income before income taxes¥7,608$67,519

Income taxes¥2,802$24,867

Net income¥4,806$42,652

Comprehensive income¥1,198$10,633

Per common share:
Net income¥31.61$0.28

Cash dividends¥12.00$0.11

Total assets¥158,310$1,404,952

Net assets¥93,345$828,408

Capital expenditures(property, plant and equipment)
Depreciation¥1,548$13,738¥1,757$15,593

R & D costs¥1,669$14,812

Number of employees

3,286Note 1: In millions of yen (thousands of U.S. dollars), except for per-share data and number of employees.
Note 2: Yen amounts have been translated into U.S. dollars, for convenience only, at the exchange rate of¥112.68=U.S.$1. See Note 3 of the Notes to the Consolidated Financial Statements.

4Overseas Operations for Fiscal Year Ended March 31,2016
FY2015 overseas sales were 64,181 million
yen (US$569,587 thousand), a 11.5% decrease

Net Sales
Millions of yen

from the previous year.
In India and other Asia areas together,sales were a 27.9% increase from the previous
year. In these areas, increased demand formachine tools and die casting machines
contributed to the increase.
In Korea, sales were a 7.5% increase from119,550
24,977

120,899

18,802
28,902

113,062

16,800Machine32,932 Tools

80,02465,73473,19573,214

In Europe, sales were 19.4% increase from
attributable to increased injection molding

28,141

28,839attributable to increased precision machining

the previous year. This increase was

Total
Other
117,259 Products
7
4
10,7

23,048the previous year. This increase wassystem demand.

124,373
16,208

2012

2013

2015

2014

Molding
73,580 Machinery

2016

machine and machine tools.
Meanwhile, sales in China a 12.5%
decreased from the previous year. The

Total Sales & Overseas Sales
Millions of yen

decrease was attributable to decreased
demand for injection molding machines anddie casting machines.
In Taiwan, demand for extrusion machines

119,550

120,899

124,373

117,259es
Total Sal

113,062

decreased, and sales were 37.2% decrease
from the previous year.
In South East Asia, sales were 31.7%
decrease from the previous year due todecreased demand for injection molding
machines and die casting machines.

66,908In North America, since most customers
who wanted die casting machines alreadymade purchases, sales were 8.9% decrease
from the previous year.
Consequently, the percentage of overseas

2012

74,5942013

The percentage of overseas sales bybusiness segment was: 73% for the molding
machinery business (4% decrease from the

2014

2015

64,181

Overseas

Sales

2016

Export Percentages by Major Products
Other
Products

sales to overall sales decreased from 58.3% in
the previous year to 54.7%.

66,192

72,482

MachineTools

Molding
Machinery

3%
24%
73%

previous year), 24% for the machine tools
business (6% increase from the previousyear), and 3% for other business segments(2% decrease from the previous year).

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

Beijing Office

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

Tianjin Office

Room 901, Jinyu Building,
No.57, Heiniucheng Road,
Hexi District, Tianjin, 300211,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)22-8836-3056
Fax : [86]-(0)22-2416-0380

Dalian Office

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

Chongqing Office

Room 9-8, H2 Building, Diecai Center,
No. 9 Jintong Road, North New District,
Chongqing, 401122, PEOPLE'S
REPUBLIC OF CHINA
Tel : [86]-(0)23-6777-5805
Fax : [86]-(0)23-6790-5542

Ningbo Office

Room 713, Building 2, Silver City
National, No 668 jingjia Road jiangdong
District, Ningbo, Zhejiang, 315040,
PEOPLE`S REPUBLIC OF CHINA
Tel : [86]-(0)574-2795-9198
Fax : [86]-(0)574-2795-9199

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

6■ South East Asia ■TOSHIBA MACHINE (SHENZHEN)
CO., LTD. Head Office

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

Guangzhou Office

Room 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

Dongguan Office

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

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

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

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

TOSHIBA MACHINE (CHENNAI)PRIVATE LIMITED

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

TOSHIBA MACHINEMANUFACTURING (THAILAND)
CO., LTD.

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

TOSHIBA MACHINE COMPANY,AMERICA Head Office

755 Greenleaf Avenue,
Elk Grove Village, IL 60007, U.S.A.
Tel : [1]-847-593-1616
Fax : [1]-847-593-0897
URL http://www.toshiba-machine.com/■ Europe ■TOSHIBA MACHINE (EU) LTD.
66 Burners Lane, Kiln Farm,
Milton Keynes MK11 3HD
UNITED KINGDOMTel : [44]-(0)1908-562327
Fax : [44]-(0)1908-562348

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

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

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

Mexico Branch

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

TOSHIBA MACHINE COMPANY CANADA
LTD.
6 Shields Court, Suite 101, Markham,
Ontario, L3R 4S1, CANADA
Tel : [1]-905-479-9111
Fax : [1]-905-479-6098
URL http://www.toshibamachine.ca/

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

7

Financial Review
CONSOLIDATED BALANCE SHEETTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2016
Millions of yen
2015
2016

Thousands of
U.S. dollars(Note 3)2016

ASSETS
Current assets:
Cash and deposits (Notes 14 and 16)
Marketable securities (Notes 14, 16 and 17)
Notes and accounts receivable, trade (Note 16)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Deferred tax assets (Note 20)
Other current assets (Notes 16 and 18)
Total current assets¥16,656
26,27643,425(160)
43,265¥20,708
19,50043,751(131)
43,620$147,817
233,191
385,383(1,420)383,963

7,208
22,17072
29,4502,809
2,531
120,987

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

63,969196,752639
261,360
24,92922,462
1,073,722

Property, plant and equipment, net (Note 6)

19,24920,715

170,829

Intangible assets (Note 7)

3,141

3,832

27,875

8,272
5,928
37
71
625
14,933¥158,310

7,098
7,714
62
86
731
15,691¥161,975

73,41152,609
328
630
5,548
132,526$1,404,952

Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates (Note 16)
Other securities (Notes 16 and 17)
Long-term loans
Deferred tax assets (Note 20)
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 16 and 27)
Current portion of long-term debt (Notes 16 and 27)
Notes and accounts payable, trade (Note 16)
Income taxes payable (Note 20)
Accrued expenses
Warranty reserve
Other current liabilities (Note 27)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 16 and 27)
Long-term accounts payable, otherAccrued directors’ retirement benefits
Net retirement benefit liability (Note 19)
Asset retirement obligations
Deferred tax liabilities (Note 20)
Other long-term liabilities (Note 27)
Total long-term liabilities
Total liabilities

Millions of yen
2015
2016

Thousands of
U.S. dollars(Note 3)2016

¥11,609500
25,060
951
5,021
594
5,060
48,795¥11,913—28,086
1,141
5,238
599
5,277
52,254$103,026
4,437
222,400
8,440
44,5605,272
44,905433,040

4,800
9
32
9,226
48
2,017
38
16,17064,965

5,300
9
45
8,106
47
2,492
53
16,05268,30642,59980
284
81,878426
17,900337
143,504
576,544

12,485
19,601
67,623(10,045)
89,664

12,485
19,60164,337(10,043)
86,380110,800
173,953
600,133(89,146)795,740

2,902
2,644
(1,865)
3,681
93,345¥158,310

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

25,754
23,465(16,551)
32,668
828,408$1,404,952

Contingent liabilities (Note 8)
Net assets:
Shareholders’ equity: (Note 12)
Common stock
Authorized –360,000,000 shares
Issued–166,885,530 shares
Additional paid-in capital
Retained earnings
Treasury stock, at cost (14,864,402 shares in 2016, 14,860,750 shares in 2015)
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, 2016

Net sales
Cost of sales (Note 10)
Gross profit
Selling, general and administrative expenses (Notes 9 and 10)
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 securities (Note 17)
Gain on sales of investments in affiliates
OthersOther expenses and losses:
Interest expense
Foreign exchange loss
Amortization of transitional obligation for employees’
retirement benefits (Note 19)
Brand fee expense
Loss on disposal of property, plant and equipment andintangible assets
Loss on impairment of fixed assets (Note 11)
Others
Net income before income taxes
Income taxes (Note 20)
Current
Deferred
Net income
Net income attributable to owners of parent

Net income per share of common stock (Note 26)

Millions of yen
2015
2016
¥124,373¥117,259
90,73485,00533,63932,25428,851
28,4484,788
3,806

Thousands of
U.S. dollars(Note 3)2016
$1,040,637
754,393286,244
252,467
33,777

335
229
—
1,395
19
0
2,652
183
4,813

259
121
941
1,420
7
8
—
235
2,991

2,973
2,032
—
12,380169
023,536
1,624
42,714

141
255

150
—

1,251
2,263

—

463

234

240

29

24

—

2,077
257

—
352
1,011

10
370
1,257

—
3,124
8,972

7,608

6,522

67,519

2,080
722
2,802
4,806
¥4,806

2,052
158
2,210
4,312
¥4,312

18,4596,408
24,86742,652$42,6522015¥28.36

U.S. dollars(Note 3)
2016
$0.28

2016
¥31.61Yen

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2016
Millions of yen
2015
2016
¥4,312¥4,806

Net income
Other comprehensive income (loss): (Note 13)
Unrealized holding gain (loss) on securities, 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 (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Thousands of
U.S. dollars(Note 3)
2016
$42,652(1,172)(1,136)(1,308)8(3,608)¥1,198

1,425
2,179
824
8
4,436
¥8,748(10,401)(10,081)(11,608)71(32,019)$10,633

1,198
—

8,748
—

10,633—

See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2016
Millions of yen

Remeasurements
Number of Common Additional paid Retained Treasury Unrealized gain on Translation
Total netof defined benefit
sharesstock
in capital earnings
stock securities, net of tax adjustments
assetsplans
Balance at April 1, 2014
166,885,530¥12,485¥19,601¥59,319 ¥(10,041)¥2,649¥1,601¥(1,397) ¥84,217
Cumulative effect of change in accounting principle
1,922
1,922
Restated balance at April 1, 2014 166,885,530
12,485
19,601
61,241(10,041)
2,649
1,601
(1,397)
86,139Profit attributable to owners of parent
4,312
4,312
Purchases of treasury stock(2)(2)
Cash dividends(1,216)(1,216)
Net changes in items other than shareholders’ equity
1,425
2,179
832
4,436
Balance at March 31, 2015
166,885,530
12,485
19,60164,337(10,043)
4,074
3,780
(565)
93,669Profit attributable to owners of parent
4,806
4,806
Purchases of treasury stock(2)(2)
Cash dividends(1,520)(1,520)Net changes in items other than shareholders’ equity(1,172)(1,136)(1,300)(3,608)
Balance at March 31, 2016
166,885,530¥12,485¥19,601¥67,623 ¥(10,045)¥2,902¥2,644¥(1,865) ¥93,345
Thousands of U.S. dollars (Note 3)

Balance at April 1, 2015
Profit attributable to owners of parent
Purchases of treasury stock
Cash dividends
Net changes in items other than shareholders’ equity
Balance at March 31, 2016

Common Additional paid Retained Treasury Unrealized gain on Translation Remeasurements
benefit Total net
stock
in capital earnings
stock securities, net of tax adjustments of defined
assetsplans$110,800$173,953$110,800$173,953$570,971
42,652$(89,129)$36,155$33,546$(5,014)$831,282
42,652(17)(17)(13,490)(13,490)(10,401)(10,081)(11,537)(32,019)$600,133 $(89,146) $25,754$23,465 $(16,551) $828,408
See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENT OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2016

Operating activities:
Net income before income taxes
Adjustments to reconcile net income before income taxes to
net cash provided by operating activities:
Depreciation
Amortization of goodwill
Allowance for doubtful receivables
Warranty reserve
Directors’ retirement benefit
Net defined benefit liability
Interest and dividend income
Interest expense
Gain 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
Others
Sub totalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Investing activities:
Proceeds from sales of investments in other securities
Investments in unconsolidated subsidiaries
Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation (Note 14)
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Increase in short-term loans receivable
Payments for long-term loans receivableCollection of long-term loans receivable
OthersNet cash provided by (used in) investing activities
Financing activities:
Increase (decrease) in short-term bank loans
Purchases of treasury stock
Cash dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 14)

Millions of yen
2015
2016

Thousands of
U.S. dollars(Note 3)
2016

¥7,608¥6,522$67,519

1,757
410
25
(5)
10
87
(335)
141
10
(0)
(2,652)(1,395)
—

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

15,593
3,639
222
(44)
89
772
(2,973)
1,251
88
(0)
(23,536)(12,380)—(1,370)
1,396(1,102)
93
(292)
300
4,686
561
(141)
(2,324)
2,782(5,799)(4,449)
3,411
190
(111)
(579)
537
440
(151)
(1,284)(458)(12,158)
12,389(9,780)825(2,591)
2,662
41,587
4,979(1,251)(20,627)
24,688

2
—
1,566

14
(113)
—

18
—
13,898(1,425)
51
(167)
2,100
(2)
27
101
2,253

(910)
8
(292)
1
—
16
(6)
(1,282)(12,646)453(1,482)
18,637(18)240
895
19,995(211)(2)(1,520)(29)(1,762)(549)
2,724
40,208¥42,932478(2)(1,216)
(35)
(775)
1,444
(1,071)
41,279¥40,208(1,873)(17)(13,490)(257)(15,637)(4,872)
24,174356,834$381,008

See accompanying notes to financial statements.

12

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

1. Basis of Presenting Consolidated
Financial Statements
The accompanying consolidated financial
statements of TOSHIBA MACHINE CO., LTD.
(the “Company”) and its consolidated subsidiaries(collectively, the Companies) are prepared on thebasis of accounting principles generally acceptedin Japan, which are different in certain respects
as to the application and disclosure requirementsof International Financial Reporting Standards,
and are compiled from the consolidated financial
statements prepared by the Company as requiredby the Financial Instruments and Exchange Law
of Japan. The preparation of these consolidated financial statements requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities and disclosureof contingent assets and liabilities at the fiscal
year end and the reported amounts of revenues
and expenses during the reporting period. Actual
results could differ from these estimates.
Certain reclassifications and rearrangements
have been made to the consolidated financial
statements issued domestically in order to present
them in a form that is more familiar to readers
outside of Japan. In addition, the notes to the consolidated financial statements include information
which is not required under accounting principles
generally accepted in Japan but is presented herein as additional information.

2. Summary of Significant Accounting
Policies(a) Basis of consolidation and accounting forinvestments in unconsolidated subsidiaries andaffiliates
The consolidated financial statements include
the accounts of the Companies.
All significant intercompany transactions andaccounts and unrealized intercompany profits
among consolidated entities are eliminated in consolidation.
The cost in excess of the underlying interest in
net assets of consolidated subsidiaries at the timeof acquisition (goodwill), which is included in intangible assets in the accompanying consolidatedbalance sheet, is amortized on a straight-line basis
over the estimated useful life.
Investments in affiliates (15 to 50 percent-owned companies) in which the Company
has the ability to exercise significant influence,
except immaterial investments, are accounted forusing the equity method.
Unconsolidated subsidiaries and affiliates notaccounted for by the equity method are stated atcost.
(b) Translation of foreign currencies
Monetary assets and liabilities denominated inforeign currencies are translated into Japanese
yen at the exchange rate prevailing at the balance
sheet date, except for those perfectly hedged byforward contracts, which are translated using thecontracted rate.
The foreign exchange gains and losses fromtranslation are recognized in the consolidated
statement of income to the extent that they are
not hedged by foreign exchange derivatives.
All assets and liabilities of foreign consolidated
subsidiaries are translated at the current rates
at the respective balance sheet dates, except forcomponents of shareholders’ equity which aretranslated at their historical rates. The revenue
and expense accounts of foreign consolidated subsidiaries are translated at the current rates at therespective balance sheet dates. Differences arisingfrom translation are recognized directly in foreign
currency translation adjustments in net assets.
(c) Securities
Securities have been classified into two categories, held-to-maturity debt securities or othersecurities, in accordance with 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 holding gain or loss, net ofincome taxes, directly included in net assets.
Non-marketable securities classified as othersecurities are carried at cost. Cost of securities
sold is determined by the moving average method.
(d) Inventories
Finished products and work in process arestated at the lower of cost, determined by the individual identification method, or their net realizable value. Raw materials and supplies are statedat the lower of cost, determined by the moving
average method, or their net realizable value.
(e) Allowance for doubtful receivables
The allowance for doubtful receivables is stated at the amount determined based on the default
ratio sustained over a specific period in the pastand the estimated uncollectible amount deter-13mined based on the analysis of certain individual
accounts, including probable bad debt and claims
in bankruptcy.
(f) Warranty reserve
Warranty reserve is provided for warranty costs
to be incurred during the warranty period basedon historical experience.
(g) Employee bonuses
The bonuses to the employees are paid twice ayear and accrued based on the estimated amounts
incurred and to be paid in the subsequent period.
(h) Depreciation of property, plant and equipment(excluding leased assets)
Depreciation of buildings is principally computed by the straight-line method and depreciationof other property, plant and equipment is computed by the declining balance method over theestimated useful lives of respective assets, principally ranging from 3 to 60 years for buildings andstructures, and from 3 to 22 years for machinery,equipment and vehicles.
(i) Amortization of intangible assets
Computer software held for internal use isamortized by the straight-line method over thecorresponding economic useful life (5 years). Other intangible assets, including patent rights, areamortized by the straight-line method over theestimated useful lives of respective assets.
(j) Goodwill
Goodwill is amortized by the straight-line
method over a reasonable estimated period of
benefit not exceeding 20 years.
(k) Leased assets
Leased assets under finance lease transactions
that do not transfer ownership to the lessee aredepreciated by the straight-line method over thelease term with no residual value.
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.
(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.

14(m) Income taxes
The Companies accrue current income taxes
based on taxable income.
The Companies recognize a number of temporary differences for financial reporting purposes,
which, in the case of expenses, are not currently
deductible and in the case of income, are not currently taxable.
Income tax effects on such temporary differences between tax and financial reporting purposes are reflected as deferred income taxes in the
consolidated financial statements using the asset
and liability method.
(n) Employees’ retirement benefits
Accrued employees’ retirement benefits areprovided based on the projected retirement benefit obligation and the fair value of plan assets at
fiscal year-end.
The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
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 withinternal rules for retirement benefits for directors
and corporate auditors.
(p) Amounts per share of common stock
Net income per share is computed based on
the weighted-average number of shares of common stock outstanding during a year.
Diluted net income per share is not presented
since the Company has never issued any securities
with dilutive effect, such as bonds with warrants
and convertible bonds. Cash dividends per sharerepresent the actual amount declared as applicable to the respective years.
(q) Cash equivalents
In preparing the consolidated statement ofcash flows, cash on hand, readily available deposits and short-term highly liquid investments withmaturities of not exceeding three months at thetime of purchase are considered to be cash andcash equivalents.
(r) Reclassifications
Certain accounts in the consolidated financial
statements as of and for the year ended March 31,
2015 have been reclassified to conform to the presentation for the year ended March 31, 2016.

3. U.S. Dollar Amounts
U.S. dollar amounts are included solely for the convenience of the readers and have been translated at
the rate of ¥112.68=U.S.$1, the approximate exchange rate prevailing in the Japanese foreign exchange
market on March 31, 2016. 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
Application of Accounting Standards regarding Business Combinations
The following changes to accounting policies were applied from the fiscal year ended March 31, 2016:
Accounting Standard for Business Combinations (Accounting Standards Board of Japan (ASBJ) Statement No. 21, revised on September 13, 2013); Accounting Standard for Consolidated Financial Statements(ASBJ Statement No. 22, revised on September 13, 2013); and Accounting Standard for Business Divestitures (ASBJ Statement No. 7, revised on September 13, 2013). Accordingly, in cases where the parent
company continues to have control, differences arising from changes in ownership interests in subsidiaries are now recorded in capital surplus, and acquisition-related costs are now treated as expenses in the
consolidated financial statements for the year in which they arise. For business combinations completed
from the beginning of the fiscal year ended March 31, 2016, any change to the allocation of purchase priceacquisition cost arising from the finalization of provisional accounting treatment must now be reflectedin the consolidated financial statements for the year in which the business combination occurs. In addition, changes were made to the presentation of net income and “minority interests” have been changed to“non-controlling interests.” The consolidated financial statements for the fiscal year ended March 31, 2015
have been restated in order to reflect this change in presentation.
The application of the newly adopted accounting standards noted at the outset of this section has been
implemented from the beginning of the fiscal year ended March 31, 2016 in accordance with the transitional provisions in Article 58-2(4) of the Accounting Standard for Business Combinations, Article 44-5(4)of the Accounting Standard for Consolidated Financial Statements, and Article 57-4(4) of the AccountingStandard for Business Divestitures.
This change had no effect on profit or loss for the year ended March 31, 2016.

5. Unapplied Accounting Standards, etc.
Implementation Guidance on Recoverability of Deferred Tax Assets(ASBJ Guidance No. 26 of March 28, 2016)(a) Outline
The practical guidance on accounting standards and auditing standards (where it is related to the accounting treatment) for tax effect accounting, issued by the Japanese Institute of Certified Public Accountants (JICPA), is to be transferred to the competence of the ASBJ.
In line with said transfer, “Implementation Guidance on Recoverability of Deferred Tax Assets (Implementation Guidance)” has been issued by the ASBJ, based, in principle, on the framework used in the “Audit
Treatment on Determining the Recoverability of Deferred Tax Assets” (Report No. 66, the audit committeeof the JICPA), where the recoverability of deferred tax assets is assessed in accordance with the five categories of a corporate entity. The Implementation Guidance made certain necessary changes in the criteria
for these categories and also in the treatment of the amount of deferred tax assets.
The Implementation Guidance thereby provides the guidelines in applying the “Accounting Standards
for Tax Effect Accounting,” by the Business Accounting Council, in view of recoverability of deferred tax
assets.
(The requirements for classification and changes in the treatment of the amounts of deferred tax assets)① Treatment of companies that do not satisfy any of the five category requirements for (Category 1)
through (Category 5)② Category requirements for (Category 2) and (Category 3)③ Treatment related to future deductible temporary differences that cannot be scheduled in companies that qualify as (Category 2)

15

④ Treatment related to the reasonable estimable period of future pre-adjusted taxable income in companies that qualify as(Category 3)⑤ Treatment in cases that companies satisfy the category requirement for (Category 4) but qualify as(Category 2) and (Category 3)(b) Scheduled date of adoption
This implementation guidance will be applied from April 1, 2016.
(c) Impact of adoption of the implementation guidance
The impact on the Company’s consolidated financial statements from the adoption of the Implementation Guidance on Recoverability of Deferred Tax Assets is being evaluated at the time of the preparation of
consolidated financial statements.

6. Property, Plant and Equipment
Property, plant and equipment at March 31, 2016 and 2015 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
2015
2016
¥6,520¥6,45036,38336,44929,261
24,417
397
335
7,840
7,163
257
247
174
31
80,83275,092(60,117)(55,843)¥20,715¥19,249

Thousands of
U.S. dollars
2016$57,242
323,474
216,693
2,973
63,5692,192
275
666,418(495,589)$170,829

Depreciation expenses for the years ended March 31, 2016 and 2015 were ¥1,757 million ($15,593
thousand) and ¥1,966 million, respectively.

7. Intangible Assets
Intangible assets at March 31, 2016 and 2015 consisted of the following:

Goodwill
Others
Total

Millions of yen
2015
2016
¥3,041¥2,254791
887¥3,832¥3,141Thousands of
U.S. dollars
2016$20,004
7,871$27,875

8. Contingent Liabilities
As of March 31, 2016, contingent liabilities for loans guaranteed by the Company, principally on behalfof non-consolidated subsidiaries and affiliated companies, amounted to ¥849 million ($7,535 thousand).

9. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2016
and 2015 were as follows:

16

Millions of yen
2015
2016
¥2,365¥2,473
3,693
3,613
490
489
11,626
11,422
558
614
645
632
811
793
1,701
1,536
1,159
1,071
715
564
5,088
5,241
¥28,851¥28,448

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

Thousands of
U.S. dollars
2016$21,947
32,064
4,340
101,367
5,449
5,609
7,038
13,632
9,505
5,005
46,511$252,467

10. Research and Development Costs
Research and development costs charged to income were ¥1,669 million ($14,812 thousand) and¥1,663 million for the years ended March 31, 2016 and 2015, respectively.

11. Loss on Impairment of Fixed Assets
Grouping of assets is based on the business units, except for idle assets, which are grouped individually.
Loss on 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 based on 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, Ibaraki, Japan:
Land

Idle property¥10

There was no loss on impairment of fixed assets recognized for the year ended March 31, 2016.

12. 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.

13. Other Comprehensive Income
The components of other comprehensive income (loss) for the years ended March 31, 2016 and 2015
were as follows:17Millions of yen
2015
2016
Unrealized holding gain (loss) on securities:
Current period changes in unrealized gain (loss)
Reclassification adjustment
Total unrealized holding gain (loss) on securities before tax effects
Tax effects
Unrealized holding gain (loss) on securities, net of tax effects
Foreign currency translation adjustments:
Current period changes
Remeasurements of defined benefit plans
Current period changes in remeasurements of defined benefit plans
Reclassification adjustment
Total remeasurements of defined benefit plans before tax effectTax effects
Remeasurements of defined benefit plans, net of tax effects
Share of other comprehensive income of affiliates accounted for using equity method
Current period changes
Total other comprehensive income (loss)

Thousands of
U.S. dollars
2016¥(1,784)－(1,784)612(1,172)¥1,901
(4)
1,897
(472)
1,425

$(15,832)－(15,832)
5,431(10,401)(1,136)

2,179(10,081)(1,429)121(1,308)－(1,308)

386
438
824
－
824

(12,682)
1,074(11,608)－(11,608)8¥(3,608)8¥4,43671$(32,019)

14. Cash Flow Information(a) Cash and Cash Equivalents
The reconciliation between cash and time deposits in the accompanying consolidated balance sheet
and cash and cash equivalents in the accompanying consolidated statement of cash flows at March 31,
2016 and 2015 was as follows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2015
2016
¥20,708¥16,656
19,50026,276¥40,208¥42,932

Thousands of
U.S. dollars
2016$147,817
233,191$381,008(b) Breakdown of book value of assets and liabilities of the transferred businesses
Assets and liabilities of Hyest Corporation at the time the company was excluded from the scope of
consolidation, related sales price of its shares and proceeds (net) from sale of its shares for the fiscal year
ended March 31, 2016 were as follows:
Millions of yen
2016
Current assets¥4,146
Non-current assets
579
Current liabilities(4,237)
Non-current liabilities(297)
Gain on sales of investments in affiliates
2,652
2,843
Sales price of shares
Cash and cash equivalents(1,277)
Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation¥1,56618

Thousands of
U.S. dollars
2016$36,794
5,138(37,602)(2,636)23,53625,230(11,332)$13,89815. Leases
This disclosure has been omitted for the year ended March 31, 2016 based on materiality.

16. Financial Instruments
Overview(a) Policy for financial instruments
The Companies invest in short-term deposits for fund management, where temporary cash surplus isinvested in low-risk financial instruments. The Companies raise funds through bank borrowings. The Companies use derivatives only to reduce risk, and do not enter into derivative transactions for speculative
trading purposes.
(b) Financial instruments, related risk and risk management system
Operating receivables, such as notes and accounts receivable, trade are exposed to customer credit
risk. The Companies try to reduce this risk by adhering to their sales management rules. Investments, consisting of marketable securities of corporations, are exposed to stock price fluctuation risk in the market.
To address this risk, the Companies review stock prices in every quarter. Operating payables, such as notes
and accounts payable, trade are mainly due within six months. Borrowings are mainly used in for normal
operations and capital investments. The maturity of borrowings is up to three years from the balance sheet
date at the maximum. Certain borrowings are exposed to interest rate fluctuation risks, but these risks arehedged by interest rate swaps.
Derivative transactions consist of interest rate swaps used for the purpose of hedging interest rate fluctuation risk associated with long-term debt, and foreign exchange forward contracts, etc. used for the purpose of hedging foreign exchange risk associated with certain assets and liabilities denominated in foreign
currencies. These derivative transactions are managed under the internal management policies, to the extent deemed necessary. Note 18, “Derivative Financial Instruments,” provides more information on hedge
accounting, hedging instruments and methods, hedging policy, hedged items and assessments of hedge
effectiveness.
The Finance Department of the Companies prepares and updates its cash flow plan to manage liquidity
risk. A part of bank borrowings are subject to terms of financial covenants. If the Companies violate theterms of the financial covenants, the terms of the borrowings may be possibly revised.
The terms of the financial covenants related to a syndicated loan contract (¥5,000 million ($44,373
thousand) at March 31, 2016) are as follows:① At March 31 and September 30 every year, the Company must maintain net assets in the consolidated balance sheet over ¥53,325 million ($473,243 thousand).
② In the consolidated statement of income for the fiscal year ending March 31, the Company must notrecord operating loss for two consecutive years.
(c) Supplemental information on the fair value of financial instruments
Fair value of financial instruments is calculated based on market prices, or by using reasonable estimates when market prices are not available. These estimates include variable factors, and are subject tofluctuation due to a change in underlying assumptions. The contract amounts of derivatives presented in
Note 18, “Derivative Financial Instruments,” below do not represent the actual market risk associated with
derivative transactions.

19Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2016 and 2015, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen
2015
2016
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and deposits¥—¥16,656 ¥16,656¥— ¥20,708 ¥20,708
Notes and accounts receivable, trade
43,751
43,749(2)
43,42543,4283
Marketable securities and investment securities
33,79436,606
2,812
39,963
41,101
1,138¥2,810¥100,044 ¥101,185¥1,141 ¥98,253 ¥101,063
Total assets
Short-term bank loans¥—¥12,109 ¥12,109¥— ¥11,913 ¥11,913
Notes and accounts payable, trade
28,08628,086—25,06025,060—Long-term debt
5,300
5,309
9
4,800
4,807
7
¥9
¥41,969 ¥41,976¥7 ¥45,299 ¥45,308
Total liabilities
Derivatives
¥39
¥39
¥—
¥28
¥28
¥—
Thousands of U.S. dollars
2016
Carrying value Fair value Difference
Cash and deposits$147,817 $147,817$—
Notes and accounts receivable, trade385,383 385,410
27
Marketable securities and investment securities 354,659 364,758
10,099$887,859 $897,985 $10,126
Total assets
Short-term bank loans$107,463 $107,463$—
Notes and accounts payable, trade
222,400 222,400—
Long-term debt
42,59942,66162$372,462 $372,524$62
Total liabilities
Derivatives
$248
$248
$—

*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 approximates fair value because these are due within the short-term.
② Notes and accounts receivable, trade
The fair value of notes and accounts receivable, trade is classified based on certain terms and discounted using interest rate which reflects credit risk
Marketablesecurities and investment securities③
For negotiable certificates of deposit, the carrying value approximates fair value because these are
due within the short-term.
Investment securities are based on quoted market prices.
④ Short-term bank loans; ⑤ Notes and accounts payable, trade
The carrying value approximates fair value because these are due within the short-term.
⑥ Long-term debt
The fair value of long-term debt is determined based on the present value of the principal and interest, discounted by the interest rate that would be applied if similar new borrowings were enteredinto.
Derivatives⑦
Please refer to Note 18, “Derivative Financial Instruments,”

20

(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2016 and 2015
were as follows:
Millions of yen
2015
2016
¥518
¥513

Investment securities for which the market prices are not available

Thousands of
U.S. dollars
2016$4,552Market prices are not available for these items, or the cost of estimating future cash flow is consideredprohibitive. As a result, these items are not included in ③ Marketable securities and investment securities
in the above table, because their fair value is not readily determinable.
(c) The aggregate annual maturities of financial assets at March 31, 2016 and 2015 were as follows:
Millions of yen

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

2015
2016
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¥—¥—¥—¥16,651¥—¥—¥— ¥20,682
364——
41,795
1,630—— 43,387
26,276¥84,722—¥1,630—¥—— 19,500¥— ¥83,569

—
¥364

—
¥—

—
¥—

Thousands of U.S.dollars
2016
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$147,772$—$—$—
Notes and accounts receivable, trade 370,917 14,466——
Marketable securities and investment securities:
Negotiable certificate of deposit 233,191———$751,880 $14,466
$—
$—
Total

(d) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2016

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2015

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¥11,609
¥—
¥—
¥—
¥—
¥—
500
500
4,300
—
—
—
¥12,109¥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¥11,913
¥—
¥—
¥—
¥—
¥—
—
500
500
4,300
—
—
¥11,913¥500¥500 ¥4,300
¥—
¥—

21

Year ended March 31, 2016

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$103,026
$—
$—
$—
$—
$—
4,437
4,437 38,162———$107,463 $4,437 $38,162
$—
$—
$—

17. Securities
Information regarding marketable securities classified as other securities included in investment securities was as follows:

Equity securities

Equity securities

Acquisition cost
¥1,706¥1,706

Millions of yen
2016
Carrying value Unrealized gains Acquisition cost
¥1,707¥5,807¥4,101¥1,707¥5,807¥4,101

2015
Carrying value Unrealized gains¥7,592¥5,885¥7,592¥5,885

Thousands of U.S. dollars
2016
Acquisition cost
Carrying value Unrealized gains$15,140$51,535$36,395$15,140$51,535$36,395

Negotiable certificates of deposit classified as non-marketable securities totaled ¥26,276 million($233,191 thousand) and ¥19,500 million as of March 31, 2016 and 2015, respectively. Non-marketable
equity securities classified as other securities primarily consist of ¥121 million ($1,074 thousand) and ¥122
million as of March 31, 2016 and 2015, respectively. Proceeds from sales and gain on sales of non-marketable equity securities classified as other securities were ¥2 million ($18 thousand) and ¥0 million ($0 thousand) for the year ended March 31, 2016, and ¥4 million and ¥3 million for the year ended March 31, 2015,
respectively.

18. Derivative Financial Instruments
The Companies have entered into derivative transactions (foreign exchange contracts, interest rate
swaps and currency option transactions) in order to manage certain risks arising from adverse fluctuations
in foreign currency exchange rates and in interest rates. The Company does not hold or issue derivative
financial instruments for the purpose of speculative trading. Derivative transactions are entered into by
the Finance Department under the rules approved by the Board of Directors. Derivative transactions areevaluated by the Corporate Auditing Office.

22

Derivatives not designated as hedging instruments at March 31, 2016 and 2015 were as follows:① Foreign exchange contracts

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

Hedged item

Millions of yen
2015
2016
Contract Contract amount Fair value Unrealized Contract Contract amount Fair value Unrealized
amount due after one year
gain (loss) amount due after one year
gain (loss)

¥36

¥—

¥(0)

¥(0)

¥—

¥—

¥—

¥—

22
731
¥789

—
—
¥—

2
26
¥28

2
26
¥28

—
357
¥357

—
—
¥—

—
39
¥39

—
39
¥39

Thousands of U.S. dollars
2016
Contract Contract amount Fair value Unrealized
amount due after one year
gain (loss)

Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
Accounts receivable $319
U.S. dollars
Buy:
U.S. dollars
195
Accounts payable
Japanese yen
6,487$7,001
Total

$—

$(0)

$(0)

—
—
$—

18
231
$249

18
231
$249

Derivatives designated as hedging instruments at March 31, 2016 and 2015 were as follows:① Foreign exchange contract, etc.

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

Hedged item

Millions of yen
2016
Contract Contract amount Fair value Contract
amount due after one year
amount¥1,621¥1,621¥—¥—¥— ¥1,545¥— ¥1,545

2015
Contract amount Fair value
due after one year

¥—
¥—

¥—
¥—

Thousands of U.S. dollars
2016
Contract Contract amountFair
amount due after one year value

Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
Accounts receivable $14,386
U.S. dollars$14,386
Total

$—
$—

$—
$—

Foreign exchange contracts are accounted for as part of the accounts receivable. Therefore the fairvalue of foreign exchange contracts is included in the fair value of the underlying accounts receivable.

23

② Interest rate swaps
Millions of yen

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

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

2016
Contract Contract amount Fair value
amount due after one year

¥5,000 ¥4,500

2015
Contract Contract amount Fair value
amount due after one year¥— ¥5,000 ¥5,000¥—

Thousands of U.S. dollars
2016
Contract Contract amount Fair value
amount due after one year

$44,373 $39,936$—

Interest rate swaps are accounted for as part of the long-term debt. Therefore the fair value of theswaps is included in the fair value of the underlying long-term debt.

19. Employees’ Retirement Benefits(a) Overview
The Company and certain subsidiaries have funded defined benefit plans, i.e, lump-sum payment plansand defined benefit pension plans, and defined contribution plans for employees.
Certain domestic subsidiaries participate in multiemployer pension plans. Multiemployer pension plans,
in which pension assets belonging to the Companies are not reasonably determinable, are accounted for as
if those are defined contribution plans.
Certain domestic consolidated subsidiaries have adopted the simplified method in calculating their projected benefit obligation.
(b) Defined benefit plans① The changes in the retirement benefit obligation during the years ended March 31, 2016 and 2015
were as follows:

Retirement benefit obligation at beginning of year
Cumulative effect of change in accounting principle
Restated balance
Service cost
Interest cost
Actuarial gain or loss
Retirement benefit paid
Decrease on exclusion from consolidation
Retirement benefit obligation at end of year

24

Millions of yen
2015
2016
¥14,667¥12,949(1,924)—
12,743
12,949
880
839
127
123
(25)
1,326
(776)
(944)
—
(502)
¥12,949¥13,791

Thousands of
U.S. dollars
2016$114,918—
114,918
7,446
1,092
11,768(8,378)(4,455)$122,391

② The changes in pension plan assets during the year ended March 31, 2016 and 2015 were as follows:

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

Millions of yen
2015
2016
¥4,389¥4,843
88
93
360
(103)
229
203
(223)
(283)
(188)
－
¥4,843¥4,565

Thousands of
U.S. dollars
2016$42,980
825
(914)
1,802
(2,512)(1,668)$40,513③ The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2016 and 2015 for the defined benefit plans

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

Millions of yen
2015
2016
¥4,234¥4,536(4,843)(4,565)
(609)
(29)
8,715
9,255
8,106
9,226
8,106
9,226
¥8,106¥9,226

Thousands of
U.S. dollars
2016$40,256(40,513)(257)
82,13581,87881,878$81,878④ The components of retirement benefit expense for the years ended March 31, 2016 and 2015 wereas follows:

Service cost
Interest assets
Expected return on pension assets
Amortization of transitional obligation
Actuarial gain or loss
Retirement benefit expense

Millions of yen
2015
2016
¥880
¥839
127
123
(88)
(93)
463
—
(24)
81
¥1,358¥950

Thousands of
U.S. dollars
2016$7,446
1,092
(825)
—
718
$8,431⑤ Remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for the years ended March 31, 2016 and 2015 were as follows:

Actuarial gain or loss
Translation obligation
Total

Millions of yen
2015
2016
¥361
¥(1,308)463—¥824¥(1,308)

Thousands of
U.S. dollars
2016$(11,608)—$(11,608)25

⑥ Remeasurements of defined benefit plans included in accumulated other comprehensive income(before tax effect) as of March 31, 2016 and 2015 were as follows:

Unrecognized actuarial loss
Total

Millions of yen
2015
2016
¥515
¥1,823¥515¥1,823Thousands of
U.S. dollars
2016$16,179$16,179⑦ The fair value of pension plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2016 and 2015 were as follows:
Domestic bonds
Domestic equity securities
Foreign bonds
Foreign equity securities
Insurance assets (General accounts)
Other
Total

2016
51%
14%
12%
14%
8%
1%
100%

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

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

2016
0.0%
2.0%
9.9%

2015
1.1%
2.0%
9.9%

As a result of a re-examination of the discount rate, the rate was changed to 0.0% because it was determined that changing the rate would have a significant impact on the amount of employees’ retirement
benefits.
The expected rate of salary increase was the rate of increase points calculated using the age specificindex of the expected rate of salary increase under the retirement benefits point system.
(c) Defined contribution plans
The required contributions to defined contribution plans of the Company and certain domestic consolidated subsidiaries for the years ended March 31, 2016 and 2015 were ¥174 million ($1,544 thousand) and¥177 million, respectively.
(d) Multiemployer pension plans
The required contributions to the multiemployer pension plans for the years ended March 31, 2016 and2015 were ¥63 million ($559 thousand) and ¥83 million, respectively.
① Funded status of the multiemployer pension plans as of the most recent calculation dates

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

Millions of yen
2015
2016
¥303,721¥317,424
299,821302,958¥3,900¥14,466(Note) This item was presented as “Amount of obligations” in the previous fiscal year.

26

Thousands of
U.S. dollars
2016$2,817,039
2,688,658$128,381

② The Companies’ portion of contributions in multiemployer pension plans
The Companies’ portion in the total contributions of the multiemployer plans

2016
0.586%

2015
0.562%The difference above was principally attributable to the differences in retained earnings of ¥8,979 million ($79,686 thousand) and ¥12,010 million in the pension financial calculation, at March 31, 2016 and2015, respectively special reserve of ¥24,331 million ($215,930 thousand) and ¥12,320 million at March 31,
2016 and 2015 and unrecognized prior service cost of ¥18,844 million ($167,235 thousand) and ¥20,431
million at March 31, 2016 and 2015, 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 ($293 thousand) and ¥33 million for amortization of prior service cost in the consolidated financial statements for the years ended March 31, 2016 and2015, respectively.
The Companies’ portion of contributions described above was not equal to the actual share to be allocated to the Companies.

20. Income Taxes
The significant components of deferred tax assets and liabilities at March 31, 2016 and 2015 were as
follows:
Millions of yen
2015
2016
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 holding gain on securities
Asset retirement obligations
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

Thousands of
U.S. dollars
2016

¥594
19
620
329
2,236
470
81
1,700
¥6,049(2,302)¥3,747

¥669
40
663
347
2,420
632
107
1,845
¥6,723(2,207)¥4,516$5,272
169
5,502
2,920
19,844
4,171
719
15,086$53,683(20,430)$33,253(104)(1,199)
(7)
—
(577)
(997)
¥(2,884)
¥863

(125)
(1,811)
(8)
(105)
(632)
(865)
¥(3,546)
¥970

(923)
(10,641)(62)—(5,121)(8,847)$(25,594)$7,65927

Net deferred tax is included in the following accounts:
Current assets – Deferred tax assets
Investments and other assets – Deferred tax assets
Current liabilities – Deferred tax liabilities
Long-term liabilities – Deferred tax liabilities

Millions of yen
2015
2016
¥3,376¥2,809
86
71
—
－
2,492
2,017

Thousands of
U.S. dollars
2016$24,929630—
17,900

The reconciliation between the statutory tax rate and effective tax rate for the years ended March 31,
2016 and 2015 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 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

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

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%

Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries generallycomprise corporation, enterprise and prefectural and municipal inhabitants taxes. The statutory tax rates
for the years ended March 31, 2016 and 2015 were approximately 32.3% and 34.8%, respectively.
Following the enactment on March 29, 2016 of the “Act for Partial Revision of Income Tax Act, etc.”(Act No.15 of 2016) and the “Act for Partial Revision of Local Tax Act, etc.” (Act No.13 of 2016), the statutory income tax rate will be lowered in stages from fiscal years beginning on or after April 1, 2016. As aresult, the statutory tax rate used for the calculation of deferred tax assets and deferred tax liabilities as ofMarch 31, 2016 was changed from the previous 31.57% to 30.21% for temporary differences expected tobe realized during the fiscal year beginning on April 1, 2016 and 29.99% for temporary differences expected to be realized during the fiscal year beginning on or after April 1, 2017.
As a result of this change, as of and for the year ended March 31, 2016, net deferred tax assets (after
netting deferred tax liabilities) decreased by ¥2 million ($18 thousand), while deferred income taxes andnet unrealized holding gain on securities increased by ¥65 million ($577 thousand) and ¥63 million ($559
thousand), respectively.

21. Business Combinations, etc.
The Company resolved at the Board of Directors meeting on March 3, 2015 to sell all its shares of consolidated subsidiary, Hyest Corporation, to Nabtesco Corporation and sold the shares on April 1, 2015.
(a) Overview of the sale of shares① Name of buyer: Nabtesco Corporation② Business description: Manufacture and sales of hydraulic equipment and its related business③ Main reason for sale
The Companies are pursuing opportunities to strengthen their business bases by developing core technologies and expanding the global markets, in line with the concept of “advancement and expansion.”
Based on this, the Companies determined to focus their business resources on equipment industries, mainly molding machinery and machine tools and decided to sell all the shares of Hyest Corpo-

28

ration, which is engaged in the hydraulic equipment business for construction machines, to Nabtesco Corporation. By transferring 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
an enterprise group with a sufficient business scale.
④ Date of transfer : April 1, 2015
⑤ Overview of the transaction including legal form : Share transfer in exchange for cash(b) Overview of accounting treatment① Gain on sale : ¥2,652 million ($23,536 thousand)② Carrying values of assets and liabilities of the transferred business (breakdown)

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

Millions of yen
2016¥4,146
579
4,725
4,237
297
¥4,534

Thousands of
U.S. dollars
2016$36,794
5,138
41,93337,602
2,636$40,238③ Accounting treatment
The difference between the market value of the consideration received and the share of shareholders’ equity related to transferred business is included in “other income”.
(c) Segment in which the subsidiary was included in the disclosure of segment information
Hydraulic Equipment(d) Estimated income related to the transferred business included in the consolidated statement of income forthe fiscal year ended March 31, 2016
Profit of Hyest Corporation is not included for the year ended March 31, 2016 because the transaction
was carried out at the beginning of the current fiscal year.

22. Asset Retirement Obligations
This disclosure has been omitted for the year ended March 31, 2016 based on materiality.

23. Rental Property
This disclosure has been omitted for the year ended March 31, 2016 based on materiality.

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 Boad of Directors to conduct periodic assessments to determine distribution of management resources and evaluate their business results.
The Companies’ business is classified into certain segments based on the types of products and services. The Companies’ segments are categorized into the following two reportable segments: “Molding
Machinery” and “Machine Tools” based on the similarities of the economic nature, type of business andmanufacturing method:
Molding Machinery: Injection molding machines, Die casting machines, Plastic extrusion
Machine Tools: Large size machine tools, Portal type machine tools, Machining centers, Horizontal boring machines, High-precision machines29Hyest Corporation, which had been included the “Hydraulic Equipment” segment, was excluded fromthe scope of consolidation because Company sold all its shares. Therefore, the Company now includes anddiscloses information related to the “Hydraulic Equipment” business in the “Other Products” business segment because the importance of “Hydraulic Equipment” decreased. As a result of this change, the Companies’ reportable segments were changed from three segments “Molding Machinery,” “Machine Tools” and“Hydraulic Equipment” to two segments “Molding Machinery” and “Machine Tools.”
Additionally, segment information for the previous fiscal year has been restated in order to reflect thischange in presentation.
(b) Basis of measurement for reportable segment profit or loss, segment assets and other material items
The accounting treatment for the reportable business segments is generally the same as described in
Note 2, “Summary of Significant Accounting Policies.” Reportable segment income is calculated on the basis of operating income. The prices of intersegment transactions and transfers are calculated based on themarket prices.
(c) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2016 and 2015 was asfollows:
Millions of yen

Year ended March 31, 2016

Reportable segments
Other Products
Molding
MachineSub total
MachineryTools
Net sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditures
Year ended March 31, 2015

Net sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditures30¥73,580—
73,580¥1,710¥75,450¥1,113772¥32,932 ¥106,512
430
430
33,362
106,942¥1,542¥3,252¥38,620 ¥114,070
¥411
466

¥1,524
1,238

Total

¥10,747 ¥117,259
2,742
3,172
13,489120,431¥404¥3,656¥18,172 ¥132,242
¥233
310

¥1,757
1,548

Millions of yen
Reportable segments
Other Products
Total
MachineMolding
Sub total
Tools
Machinery¥80,024—80,024¥3,854¥77,717¥1,1451,640¥28,141 ¥108,165
1,004
1,004
29,145
109,169¥840¥4,694¥39,222 ¥116,939
¥391
139

¥1,536
1,779¥16,208 ¥124,373
2,594
3,598
18,802
127,971¥(257)¥4,437¥22,584 ¥139,523
¥430
415

¥1,966
2,194

Adjustments Consolidated¥— ¥117,259(3,172)—(3,172) 117,259¥150¥3,806¥26,068 ¥158,310¥——¥1,757
1,548

Adjustments Consolidated¥— ¥124,373(3,598)—(3,598) 124,373¥351¥4,788¥22,452 ¥161,975¥——¥1,9662,194

Year ended March 31, 2016

Net sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditures

Thousands of U.S. dollars
Reportable segments
Other products
Total
Molding
MachineSub total
MachineryTools$653,000—
653,000$15,176$669,595$9,8786,851$292,261 $945,261
3,816
3,816
296,077
949,077$13,684$28,860$342,741 $1,012,336$3,647
4,136$13,525
10,987$95,376 $1,040,637
24,33528,151
119,711 1,068,788$3,586$32,446$161,271 $1,173,607$2,0682,751

Adjustments Consolidated$— $1,040,637(28,151)—(28,151) 1,040,637$1,331$33,777$231,345 $1,404,952$15,593
13,738$——$15,593
13,738

Note: “Other products” is a business segment that is not included in the reportable segments. It included business activities related to 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, 2016 and 2015 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
2015
2016
¥109,169¥106,942
18,802
13,489(3,598)(3,172)¥124,373¥117,259

Thousands of
U.S. dollars
2016$949,077
119,711(28,151)$1,040,637

Millions of yen
2015
2016
¥4,694¥3,252
(257)
404
351
150
¥4,788¥3,806

Thousands of
U.S. dollars
2016$28,860
3,586
1,331$33,777

Millions of yen
2015
2016
¥116,939¥114,070
22,584
18,172
23,624
26,412(1,172)(344)¥161,975¥158,310

Thousands of
U.S. dollars
2016$1,012,336
161,271
234,398(3,053)$1,404,952

Note: Company-wide assets are mainly cash and cash equivalents, securities and investment securities
that are not allocated to the reportable segments(e) Other information① Information about products and services
Information about products and services is not disclosed because reportable segment information isbased on products and services.

31

② Information about geographical areas
Sales information by country or geographical areas for the years ended March 31, 2016 and 2015
was as follows:Japan¥53,078

Millions of yen
2016
North America
Asia¥20,754¥41,091

Other¥2,336

Total¥117,259Japan¥51,891

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

Other¥2,619Total¥124,373

Japan$471,051

Thousands of U.S. dollars
2016North America
Asia
Other
$184,185$364,670$20,731

Total$1,040,637

Note: Sales figures are classified based on customer locations.
Property, plant and equipment information by country or geographical areas as of March 31, 2016
and 2015 was as follows:Japan¥16,208

Millions of yen
2016
North America
Asia
¥218
¥2,823

Total¥19,249

Japan¥17,100

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

Total¥20,715Japan$143,841

Thousands of U.S. dollars
2016North America
Asia$1,935$25,053

Total$170,829③ 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, 2016 and 2015.
(f) Information about impairment loss on fixed assets for each reportable segment
Information about impairment loss on fixed assets for the years ended March 31, 2015 was follows:

Molding
Machinery¥—

Machine Tools¥—

Millions of yen
2015
Hydraulic
Other products
Equipment¥—¥10

Adjustments

Total

¥—

¥10

There was no impairment loss on fixed assets recognized for the year ended March 31, 2016.

32

(g) Information about amortization of goodwill and unamortized balance for each reportable segment
Information about amortization of goodwill and unamortized balance as of and for the years ended
March 31, 2016 and 2015 was as follows:

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance

Amortization of goodwill
Unamortized balance

Molding
Machinery
¥410
2,254

Millions of yen
2016
MachineOther
Adjustments
Tools
products
¥—
¥—
¥—
—
—
—

Total

Molding
Machinery
¥468
3,041

Millions of yen
2015
MachineOther
Adjustments
Tools
products
¥—
¥—
¥—
—
—
—

Total

Molding
Machinery$3,63920,004

Thousands of U.S. dollars
2016
MachineOther
Adjustments
Tools
products
$—
$—
$—
—
—
—

Total

¥410
2,254

¥468
3,041

$3,63920,004(h) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2016 and 2015.

25. Related Party Transactions
During the years ended March 31, 2016 and 2015, the Companies had operating transactions with
Toshiba Corporation, a 22.1% shareholder of the Company.
A summary of the significant transactions with Toshiba Corporation for the years ended March 31, 2016
and 2015 was as follows:
Millions of yen
2015
2016
For the years ended March 31:
Payment of brand fee

¥234

¥240

Thousands of
U.S. dollars
2016$2,077

Note: The brand fee rate had been agreed upon prior to the beginning of the respective fiscal years.
During the year ended March 31, 2015, the Companies had operating transactions with NuFlare Technology, Inc., a 15.1% affiliate of the Company. There were no items to be disclosed for the year ended
March 31, 2016.
A summary of the significant transactions with NuFlare Technology, Inc. for the year ended March 31,
2015 was as follows:
Millions of yen
For the years ended March 31:
Rent income for land, buildings and structures

2016

2015

—

¥59

Thousands of
U.S. dollars
2016—

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

3326. Net Income and Net Assets per Share
Net income and net assets per share as of and for the years ended March 31, 2016 and 2015 were as follows:

Net income per share
Net assets per share2016¥31.61614.03Yen

2015¥28.36616.14

U.S. dollars
2016
$0.28
5.45

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

Weighted-average number of shares of common stockThousands of shares
2015
2016
152,027
152,024

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

Millions of yen
2015
2016
¥4,312¥4,806——¥4,312¥4,806

Thousands of
U.S. dollars
2016$42,652—$42,652

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

Number of shares at year-end

Thousands of shares
2015
2016
152,025
152,021

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

Millions of yen
2015
2016
¥93,669¥93,345——¥93,669¥93,345

Thousands of
U.S. dollars
2016$828,408—$828,408

27. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding as of March 31, 2016
and 2015 ranged principally from 0.50% to 1.64% and 0.56% to 3.16%, respectively. Long-term debt as ofMarch 31, 2016 and 2015 consisted of the following:

2016

2015

Thousands of
U.S. dollars
2016¥5,3005,300
500¥4,800¥5,3005,300—¥5,300$47,036
47,036
4,437$42,599

Millions of yen
Loans, principally from Japanese banks and insurance companies:
maturing 2017 – 2018, interest 0.66% - 0.98%
Less current portion

34

The aggregate annual maturities of long-term debt at March 31, 2016 were as follows:Year ending March 31
2017
2018
2019
2020
2021 and later
Total

Millions of yen
¥ 500
500
4,300
—
—
¥5,300Thousands of
U.S. dollars$ 4,437
4,437
38,162——$47,036

The aggregate annual maturities of finance lease obligations at March 31, 2016 were as follows:Year ending March 31
2017
2018
2019
2020
2021 and later
Total

Millions of yen
¥28
19
12
5
1
¥65

Thousands of
U.S. dollars
$248
169
106
44
9
$576

28. Subsequent Event
Cash dividends
The following appropriation of retained earnings, which has not been reflected in the accompanying
consolidated financial statements for the year ended March 31, 2016, was approved at the meeting of theBoard of Directors held on April 27, 2016:
Cash dividends of ¥6.00 ($0.05) per share amounting to ¥912 million ($8,095 thousand)35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
		 Shigetomo Sakamoto
Directors and Managing Executive Officers
		 Masayuki Yagi
		 Takahiro Mikami
Directors and Executive Officers
		 Katsuo Ito		 Akiyoshi Kobayashi
Outside Directors
		 Kan Akiyama
		 Yoshihiro Ogura
Audit and Supervisory Board Members

		 Teruyuki Makino
		 Makoto Tsuji
		 Yutaka Usami

37