2019

Annual Report
For the Year Ended March 31, 2019

Financial Highlights
Years ended March 31

Thousands of
U.S. dollars

Millions of yen
Consolidated
Net sales

2015

2016

2017

2018

2019

2019

¥524,577¥532,818¥497,611¥513,289¥476,824$4,296,099

Ordinary profit (loss)

10,391(2,298)12,534

22,76816,471

148,401

Profit (loss) attributable toowners of parent(1,149)(103,449)

7,758

17,512

11,211

101,009

Net assets

203,108

70,35976,047

93,215

100,758

907,812

Total assets

416,769

281,615

269,393282,630

275,055

2,478,196

Yen

U.S. dollars

Per share data:
Net assets
Profit (loss) attributable toowners of parent-Basic¥3,116.77¥1,044.65¥1,190.37¥1,501.94¥1,653.94$14.90(20.93)(1,883.46)

141.21

318.73204.001.84
Thousands of
U.S. dollars

Millions of yen
Non-Consolidated

2015

2016

2017

2018

2019

2019

¥265,840¥261,496¥260,894¥282,974¥249,394$2,246,995

12,668(1,186)39,375

15,184

8,335

75,097

Profit (loss)

9,376(115,933)

36,402

17,733

8,875

79,962

Capital stock

39,97039,97039,97039,97039,970360,123

Net sales
Ordinary profit (loss)

Net assets

136,10918,30154,75971,72577,898701,847

Total assets

293,447

189,623

214,940

209,349

204,671

1,844,049

Yen

U.S. dollars

Per share data:
Net assets¥2,476.33¥331.06¥994.69¥1,302.70¥1,414.72$12.75

Cash dividends

13.00

−

2.00

8.00

50.00

0.45

Profit (loss)-Basic

170.75(2,110.75)

662.59322.76161.51

1.46

Notes: 1. T he Company carried out the share consolidation at a ratio of one for every five common shares, effective on October 1, 2018.
Accordingly, the figures for the per share of net assets, profit (loss) attributable to owners of parent-Basic and profit(loss)-Basic have been calculated assuming that the share consolidation was executed at the beginning of 2015. The amountof the cash dividends per share for 2019 takes this share consolidation into account.
2. The dollar amounts in this report represent translations of yen, for convenience only, at the rate of ¥110.99=US$1.00, the exchange rate on March 31, 2019.

CONTENTS

Financial Highlights................................................................................................................................. 1
Business Review....................................................................................................................................... 2(1) Consolidated Financial Statements................................................................................................... 5
Consolidated Balance Sheet.................................................................................................................... 5
Consolidated Statement of Income......................................................................................................... 7
Consolidated Statement of Comprehensive Income............................................................................. 8
Consolidated Statement of Changes in Net Assets................................................................................. 9
Consolidated Statement of Cash Flows................................................................................................ 11
Notes to Consolidated Financial Statements........................................................................................ 12(2) Other.................................................................................................................................................. 31

1

Business Review

Business Review for the Fiscal Year 2018
Regarding the global economy in the fiscal year 2018, although the economies in Europe and China decelerated, theeconomy in the US remained robust, and those in Asia other than China were generally firm. In Japan, the economy
gradually expanded due in part to firm personal consumption and capital investment, despite sluggish exports and theeffects of natural disasters.
Under such circumstances, the Toshiba Tec Group has been diligently working to become a “global one-stop solutions
company” under the three pillars of its business strategy, namely “establishing profit stability through cost reduction
and productivity improvement”, “strengthening core businesses”, and “expanding the solutions and service business”.
Net sales were ¥476,824 million (down 7% year-on-year), partially due to decreased sales of POS systems for theJapanese market and MFPs for overseas markets, as well as the impact from the removal of Kokusai Chart Corporationfrom the scope of consolidation. With regard to profit/loss, due to factors such as decreased sales of POS systems forthe domestic market and MFPs for overseas markets, operating profit was ¥17,989 million (down 27% year-on-year),ordinary profit was ¥16,471 million (down 28% year-on-year) and net profit attributable to owners of parent was ¥11,211
million (down 36% year-on-year).
Retail Solutions Business
The retail solutions business, which deals with POS systems for domestic and overseas markets, MFPs and Automatic
Identification systems for the Japanese market, and their related products, was committed to developing new products
to meet market needs, expanding sales of core products, territory based marketing promotions, along with reinforcing
cost competitiveness to improve the profit structure in what continues to be a highly competitive businessenvironment.
In POS systems for the Japanese market, sales decreased in a decline due to a concentration of large-scale projects inthe previous fiscal year, although sales of semi-self checkout systems were robust as a result of a labor shortage.
As for POS systems for overseas markets, sales remained on par with the previous fiscal year, excluding the effect of
exchange rates, partly as the result of strong sales in the Americas, despite a decline in sales in Europe.
Sales of MFPs for the Japanese market decreased, attributable in part to a lower number of units sold.
Sales of Automatic Identification systems for the Japanese market decreased, partially due to the removal of Kokusai
Chart Corporation from the scope of consolidation.
As a result, net sales from the retail solutions business were ¥292,303 million (down 10% year-on-year). Operating profit
was ¥12,323 million (down 29% year-on-year) due to factors such as decreased sales of POS systems for the domestic
market.
Printing Solutions Business
The printing solutions business, which deals with MFPs and Automatic Identification systems for overseas markets, inkjet heads for domestic and overseas markets, and their related products, focused efforts on expanding sales of strategic
products, while pioneering vertical markets and new business fields, against a difficult business environment marked
by tough competition.

2

Concerning MFPs for overseas markets, sales declined due in part to decreased sales in the Americas and Europe despite an increase in sales in Asia, centered on China.
In Automatic Identification systems for overseas markets, sales increased due to increased sales in the Americas and Asia.
Sales of inkjet heads decreased due to factors including decreased sales in Japan and North America despite increased
sales in China.
As a result, net sales from the printing solutions business were ¥192,949 million (down 4% year-on-year). Operating
profit was ¥5,666 million (down 22% year-on-year), due partially to decreased sales of MFPs for overseas markets andthe effect of higher selling, general and administrative expenses.
Note: Automatic Identification (AI) systems refer to systems that contain hardware and software to automatically retrieve, identify
and manage from barcodes and IC tags.

Forecasts for Fiscal Year 2019
With regard to the global economy, the economy in the US is expected to remain firm, and in Europe and Asia it isexpected to gradually decelerate. In Japan, although exports are expected to decrease, the economy should gradually
expand partially due to favorable personal consumption and capital investment.
Under such circumstances, the Toshiba Tec Group will unite as one, and diligently work to become a “global one-stop
solutions company” under the three pillars of its business strategy, namely “establishing profit stability through cost
reduction and productivity improvement”, “strengthening core businesses”, and “expanding the solutions and service
business”.
The main measures for each business for the fiscal year ending March 31, 2020 are as follows:3

Retail Solutions BusinessIn the retail solutions business, efforts will be made to increase business, through expanded sales of POS systems thatare leading products in both domestic and overseas markets, MFPs and Automatic Identification systems for theJapanese market, and their related products. Concurrently, efforts will be made toward the provision of total solutions,
including the development and release of new solutions to meet market needs, the deployment of sales and marketing
structures tailored to specific regions, the enhancement of service and supply businesses, and the optimization of sales
and service networks.

Printing Solutions BusinessIn the printing solutions business, efforts will be made to enhance profitability, through expanded sales of MFPs that areleading products in overseas markets, Automatic Identification systems for overseas markets, inkjet heads for both
domestic and overseas markets, and their related products. With respect to total solutions that extensively leverage our
product lines and global market reach, efforts will be made to develop and release strategic new products, deploy sales
and marketing structures tailored to specific regions, optimize sales and service networks, and strengthen business inemerging markets.

4(1) Consolidated Financial Statements
Consolidated Balance Sheet
As of March 31, 2019 and 2018

Thousands of
U.S. dollars

Millions of yen

ASSETS

2019

2018

2019

Current assets
Cash and deposits
Group deposits paid
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets¥45,501
9,996
60,054
34,775
1,905
6,584
31,888(1,443)¥57,355−
67,99632,885
1,525
6,758
32,775(1,925)$409,956
90,062541,076
313,317
17,16459,321
287,305(13,001)

189,263

197,373

1,705,226

24,343(18,190)

24,044(17,944)219,326(163,889)

Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation

6,152
43,841(33,791)

6,099
41,686(33,718)

55,428395,000(304,451)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

10,05043,725(37,808)

7,968
45,442(39,423)

90,549393,954(340,643)

Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

5,917
1,269
9,381
(5,259)

6,018
1,269
11,758(6,208)53,311
11,43384,521(47,383)

Leased assets, net
Construction in progress
Total property, plant and equipment

4,121
779

5,550
1,183

37,1297,019

28,29028,090254,888

3,691
497
9,557

4,083
568
8,484

33,255
4,478
86,107

13,74613,135

123,849

6,058
2,448
23,36812,262(107)

36,111
22,155204,099
133,228(1,379)43,75544,030394,225

85,79285,257

772,971¥275,055¥282,630$2,478,196*4

Non-current assets
Property, plant and equipment:
Buildings and structures
Accumulated depreciation

Intangible assets:
Goodwill
Customer relationship assets
Other
Total intangible assets
Investments and other assets:
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

*1

4,008
2,459
22,653
14,787
(153)

*4

*1

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

5

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2018

2019

¥59,604
304
4,795
25,2694,771
45,154$506,487
3,451
36,526
205,730
16,218373,781

126,774

139,898

1,142,211

4,747
34,621
8,154

5,682
35,7798,054

42,770311,92973,46647,52349,516428,174

174,297

189,415

1,570,385

Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

39,970−45,103(5,474)39,97012
35,861(5,507)360,123−
406,370(49,320)

79,59970,337717,173

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Minimum pension liability adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

1,835
21
9,111
(458)
788

2,181
(22)
10,207(655)
468

16,533
189
82,088(4,126)
7,100

11,29812,180101,793

Share acquisition rights

147

153

1,324

Non-controlling interests

9,712

10,54387,503

Total net assets

100,758

93,215907,812

Total liabilities and net assets¥275,055¥282,630$2,478,196

Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Lease obligations
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

2019
*4

¥56,215383
4,054
22,8341,800
41,486*4

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

6

Consolidated Statement of Income
Years ended March 31, 2019 and 2018

Thousands of
U.S. dollars

Millions of yen

2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income:Interest income
Dividend income
Insurance income
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on valuation of derivatives
Foreign exchange losses
Loss on sales and retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income:Gain on sales of investment securities
Gain on sales of shares of subsidiaries
Gains on reversal of foreign currency translation adjustment
Total extraordinary income
Extraordinary losses:
Loss on pension fund liquidation at consolidated subsidiary
Loss on valuation of investment securities
Restructuring cost
Total extraordinary losses
Profit before income taxes
Income taxes:
Current
Deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

2018

2019

*2

¥476,824
278,464*2¥513,289
305,196$4,296,099
2,508,911*1,*2

198,359
180,370*1,*2

208,093
183,547

1,787,179
1,625,101

17,98924,546

162,078

388
56
373
−
568

560
97
0
820
339

3,496
505
3,361
−
5,118

1,387

1,818

12,497

348
555
82
333
1,586

631
−
1,235
89
1,640

3,135
5,000
739
3,000
14,290

2,905

3,597

26,174

16,471

22,768148,401

544
−
−

274
238
438

4,901
−
−

544

951

4,901

335
−
−

−
236
176

3,018
−
−

*3

335

412

3,018

16,67923,307150,275

4,380
892

5,079
(572)

39,463
8,037

5,273

4,507

47,50911,406
195¥11,21118,8001,287¥17,512102,766
1,757$101,009

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

7

Consolidated Statement of Comprehensive Income
Years ended March 31, 2019 and 2018

Thousands of
U.S. dollars

Millions of yen

2019

2018

2019

¥11,406¥18,800$102,766

(345)

598

(3,108)

43

(16)

387

Foreign currency translation adjustment

(782)

732

(7,046)

Minimum pension liability adjustment

305

76

2,748

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

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

320
*

(927)

2,883

463

(4,126)¥10,948¥19,264$98,640

10,32918,504

93,062

619

760

5,577

(458)

*

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

8

Consolidated Statement of Changes in Net Assets
Years ended March 31, 2019 and 2018

Millions of yen

Shareholders’ equity
Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equityBalance at April 1, 2018
Cumulative effects of changes in accounting policies¥39,970−¥12−¥35,861
1,045¥(5,507)−¥70,337
1,045

Restated balance

36,907(5,507)

71,382

39,97012Changes in items during period
Dividends of surplus−−(2,472)−(2,472)

Profit attributable to owners of parent−−

11,211−

11,211(13)

Purchase of treasury shares

−

−

−

(13)

Disposal of treasury shares

−

10

−

46

56

Purchase of shares of consolidated subsidiaries

−

(564)

−

−

(564)

Transfer to capital surplus from retained earnings
Net changes of items other than shareholders’ equity

−
−

542
−

(542)
−

−
−

−
−

−

(12)

8,196

32

8,216

¥39,970¥−¥45,103¥(5,474)¥79,599

Total changes in items during period
Balance at March 31, 2019

Millions of yen

Accumulated other comprehensive income
Valuation difference
DeferredForeign currency
on available-for-sale gains or losses ontranslation
securities
hedgesadjustment

Minimum
pension liability
adjustment

Share
Remeasurements Total accumulated acquisitionof definedother comprehensive
rightsbenefit plansincomeTotal net
assetsBalance at April 1, 2018
Cumulative effects of changes in accounting policies¥2,181−¥(22)−¥10,207−¥(655)−¥468−¥12,180−¥153−¥10,543547¥93,215
1,592

Restated balance

94,807

2,181

(22)

10,207(655)

468

12,180153

11,090Changes in items during period
Dividends of surplus

−

−

−

−

−

−

−

−

(2,472)

Profit attributable to owners of parent

−

−

−

−

−

−

−

−

11,211(13)

Purchase of treasury shares

−

−

−

−

−

−

−

−

Disposal of treasury shares

−

−

−

−

−

−

−

−

56

Purchase of shares of consolidated subsidiaries

−

−

−

−

−

−

−

−

(564)

Transfer to capital surplus from retained earnings
Net changes of items other than shareholders’ equity

−
(345)

−
43

−
(1,096)

−
196

−
320

−
(881)

−
(5)

−
(1,378)−(2,266)

Total changes in items during period
Balance at March 31, 2019

(345)

43

(1,096)

196

320

(881)

(5)

(1,378)5,950¥1,835¥21¥9,111¥(458)¥788¥11,298¥147¥9,712¥100,758

Thousands of U.S. dollars

Shareholders’ equity
Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equityBalance at April 1, 2018
Cumulative effects of changes in accounting policies$360,123−$108−$323,101
9,415$(49,617)−$633,724
9,415

Restated balance

332,525(49,617)643,139360,123

108

Changes in items during period
Dividends of surplus−−(22,272)−(22,272)

Profit attributable to owners of parent−−

101,009−

101,009(117)

Purchase of treasury shares

−

−

−

(117)

Disposal of treasury shares

−

90

−

414

505

Purchase of shares of consolidated subsidiaries−(5,082)−−(5,082)

Transfer to capital surplus from retained earnings
Net changes of items other than shareholders’ equity

−
−

4,883
−

(4,883)
−

−
−

−
−

−

(108)

73,844288

74,025$360,123$−$406,370$(49,320)$717,173

Total changes in items during period
Balance at March 31, 20199Noncontrollinginterests

Thousands of U.S. dollars

Accumulated other comprehensive income
Valuation difference
DeferredForeign currency
on available−for−sale gains or losses ontranslation
securities
hedgesadjustment

Minimum
pension liability
adjustment

Share
Remeasurements Total accumulated acquisitionof definedother comprehensive
rightsbenefit plansincomeNon−controllinginterests

Total net
assetsBalance at April 1, 2018
Cumulative effects of changes in accounting policies$19,650−$(198)−$91,963−$(5,901)−$4,217−$109,740−$1,379−$94,991
4,928$839,850
14,344

Restated balance

854,194

19,650(198)

91,963(5,901)

4,217

109,740

1,379

99,919Changes in items during period
Dividends of surplus

−

−

−

−

−

−

−

−

(22,272)

Profit attributable to owners of parent

−

−

−

−

−

−

−

−

101,009(117)

Purchase of treasury shares

−

−

−

−

−

−

−

−

Disposal of treasury shares

−

−

−

−

−

−

−

−

505

Purchase of shares of consolidated subsidiaries

−

−

−

−

−

−

−

−

(5,082)

Transfer to capital surplus from retained earnings
Net changes of items other than shareholders’ equity−(3,108)−387−(9,875)

−
1,766

−
2,883

−
(7,938)−(45)−(12,416)−(20,416)

Total changes in items during period(3,108)387(9,875)

1,766

2,883

(7,938)(45)(12,416)

53,608

Balance at March 31, 2019$16,533$189$82,088$(4,126)$7,100$101,793$1,324$87,503$907,812

Millions of yen

Shareholders’ equity
Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equityBalance at April 1, 2017
Cumulative effects of changes in accounting policies¥39,970−¥11−¥19,722−¥(5,488)−¥54,217−

Restated balance

19,722(5,488)54,21739,97011

Changes in items during period
Dividends of surplus−−(1,373)−(1,373)

Profit attributable to owners of parent−−

17,512−

17,512

Purchase of treasury shares

−

−

−

(22)

(22)

Disposal of treasury shares

−

0

−

3

4

Purchase of shares of consolidated subsidiaries

−

−

−

−

−

Transfer to capital surplus from retained earnings
Net changes of items other than shareholders’ equity

−
−

−
−

−
−

−
−

−
−

Total changes in items during period
Balance at March 31, 2018−

0

16,139(19)

16,120¥39,970¥12¥35,861¥(5,507)¥70,337
Millions of yen

Accumulated other comprehensive income
Valuation difference
DeferredForeign currency
on available-for-sale gains or losses ontranslation
securities
hedgesadjustment

Minimum
pension liability
adjustment

Share
Remeasurements Total accumulated acquisitionof definedother comprehensive
rightsbenefit plansincomeNoncontrollinginterests

Total net
assetsBalance at April 1, 2017
Cumulative effects of changes in accounting policies¥1,581−¥(6)−¥8,927−¥(720)−¥1,407−¥11,189−¥104−¥10,537−¥76,047−

Restated balance

76,047

1,581

(6)

8,927

(720)

1,407

11,189104

10,537

Changes in items during period
Dividends of surplus

−

−

−

−

−

−

−

−

(1,373)

Profit attributable to owners of parent

−

−

−

−

−

−

−

−

17,512(22)

Purchase of treasury shares

−

−

−

−

−

−

−

−

Disposal of treasury shares

−

−

−

−

−

−

−

−

4

Purchase of shares of consolidated subsidiaries

−

−

−

−

−

−

−

−

−

Transfer to capital surplus from retained earnings
Net changes of items other than shareholders’ equity

−
600

−
(16)

−
1,280

−
65

−
(939)

−
991

−
49

−
6

−
1,046

Total changes in items during period
Balance at March 31, 2018

600

(16)

1,280

65

(939)

991

49

6

17,167¥2,181¥(22)¥10,207¥(655)¥468¥12,180¥153¥10,543¥93,215

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

10Consolidated Statement of Cash Flows
Years ended March 31, 2019 and 2018

Thousands of
U.S. dollars

Millions of yen

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Loss (gain) on sales and retirement of property, plant and equipment
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of shares of subsidiaries
Loss on pension fund liquidation at consolidated subsidiary
Restructuring cost
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Purchases of intangible assets
Payments for acquisition of businesses
Net decrease (increase) in short-term loans receivable
Payments of long-term loans receivableCollections of long-term loans receivable
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Payments for sales of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Repayments of long-term loans payable
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation
Cash and cash equivalents at end of period

*3

*4

*5
*1

2019

2018

2019

¥16,679
14,308
333
(469)
(743)
(445)
348
9,034
(1,224)(5,305)
(544)
−
−
335
−
(6,241)
26,065469(363)(7,770)18,400¥23,307
14,03689(1,247)
(315)
(658)
631
(4,253)
(756)
(983)
(274)
236
(238)
−
176
5,966
35,716632(610)(6,646)29,092$150,275
128,913
3,000(4,226)(6,694)(4,009)3,135
81,395(11,028)(47,797)(4,901)−−
3,018−(56,230)
234,841
4,226(3,271)(70,006)
165,781(9,350)
131
(21)
680
(3,424)
(423)
3
(0)
13
(667)
−
281
(12,779)(8,214)
123
(13)
313
(3,349)
(320)
0
(7)
12
−
(289)
257
(11,487)(84,242)
1,180
(189)
6,127
(30,850)(3,811)27(0)
117(6,010)−2,532(115,136)(787)(3,415)(3)−(22)(1,374)(492)
0(6,095)(282)
11,226
46,129−¥57,355721(27,534)(81)(17,209)(117)(22,263)(6,748)−(73,241)
2,261(20,335)
516,758
3,595$500,02780(3,056)(9)(1,910)(13)(2,471)(749)−(8,129)251(2,257)57,355399¥55,498

*3

*2

*1

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

11

Notes to Consolidated Financial Statements

Basis of Presenting Consolidated Financial
Statements
The consolidated financial statements of TOSHIBA TECCORPORATION (the “Company”) have been prepared inaccordance with accounting principles generally accepted inJapan, which are different in certain respects as to theapplication and disclosure requirements of International
Financial Reporting Standards (“IFRS”), and are compiled fromthe consolidated financial statements prepared by theCompany as required by the Financial Instruments andExchange Law of Japan. The consolidated financial statements
include the accounts of the Company and its subsidiaries(collectively, “Companies”). Solely for the convenience of thereaders, the consolidated financial statements have beenpresented in U.S. dollars by translating Japanese yen amounts
at the exchange rate of ¥110.99 = US$1.00 prevailing as ofMarch 31, 2019. The translation should not be construed as arepresentation that the Japanese yen could be converted into
U.S. dollar at the above or any other rate of exchange. As
permitted by the Financial Instruments and Exchange Act ofJapan, fractions below ¥1 million are rounded off.

Significant matters forming the basis ofpreparing the consolidated financial
statements
1. Scope of consolidation(1) Number of consolidated subsidiaries: 81 companies
The number of consolidated subsidiaries increased in thecurrent consolidated fiscal year due to the establishmentof one domestic company and the acquisition of voting
rights of one overseas company by the conversion ofshares with restricted voting rights to common shares.
(2) The unconsolidated subsidiary is as follows:
Not applicable

2. Application of the equity method(1)	Number of unconsolidated subsidiaries accounted forunder the equity method: Not applicable(2)	Number of affiliated companies accounted for under theequity method: Not applicable(3)	Unconsolidated subsidiaries and affiliated companies notaccounted for under the equity method:	Advanced Supply Manufacturing Corporation is excluded
from the scope of the equity method, because it isimmaterial.

3. Year-ends of consolidated subsidiaries
Of consolidated subsidiaries, Toshiba Global Commerce
Solutions Holdings Corporation and its subsidiaries (32companies excluding Toshiba Global Commerce Solutions,Inc., Toshiba Global Commerce Solutions (India) Private
Limited, Toshiba Global Commerce Solutions Korea, Ltd., andTTEC Receivables LLC) and TOSHIBA TEC INFORMATIONSYSTEMS (SHENZHEN) CO., LTD. close accounts on December
31 every year. For those subsidiaries, provisional financial
results as of March 31 are used in the preparation of these
consolidated financial statements.
The closing dates of other consolidated subsidiaries are thesame as the consolidated closing date.

4. Accounting policies(1) Valuation basis and method for important assets(i) Investment Securities
Marketable securities classified as “Investment
securities” are recorded at fair value, and net
unrealized gains or losses after tax effect adjustment
are presented as “Valuation difference on availablefor-sale-securities” as a component of “Accumulated
other comprehensive income” under “Net assets” inthe consolidated balance sheet. Cost of securities soldis determined by the moving average method.
Non-marketable securities classified as “Investment
securities” are carried at cost, which is determined by
the moving average method.
(ii) Derivative Financial Instruments
The Company and certain subsidiaries have enteredinto forward foreign exchange contracts to reduce therisk of fluctuation in exchange rate in the foreign
currency transactions related to accounts receivableand payable denominated in foreign currency.
Derivative financial instruments are reported at fairvalue with unrealized gains or losses recognized inincome, except for those which meet the criteria forthe deferral hedge accounting under which unrealized
gains or losses are deferred as “Deferred gains or
l o s s e s o n h e d g e s ” i n “A c c u m u l a t e d o t h e rcomprehensive income” of “Net assets”.
Receivables and payables hedged by qualified forward
foreign exchange contracts are translated at thecorresponding foreign exchange contract rates.
(iii) Inventories
Finished goods, merchandises and semi-finishedcomponents are principally stated at the lower of cost,
determined by the first-in, first-out method, or net
realizable value. Work-in-process and raw materials
are principally stated at the lower of cost, determinedby the moving average method, or net realizablevalue. Supplies are principally stated at the latest
purchase cost method.
(2) 	D epreciation and amortization methods of significant
depreciable and amortizable assets(i)	Property, Plant and Equipment and Depreciation
excluding leased assets
Property, plant and equipment are depreciated by thestraight-line method over their estimated useful lives.
The useful lives of principal property, plant andequipment are summarized as follows:
Buildings and structures
15 to 38 years
Machinery, equipment and vehicles 5 to 13 years
Tools, furniture and fixtures 
2 to 20 years(ii)	Intangible Assets and Amortization excluding leased
assetsIntangible assets except for software developed forsales in the market are amortized by the straight-line
method. Amortization for software developed for sales
in the market is recorded at the greater of either anamortizable amount based on the estimated sales
revenue or an amortizable amount based on thestraight-line method over remaining valid sales
period. Software for internal use is amortized by thestraight-line method over its estimated useful life.
(iii) Leased assets
For leased assets related to finance lease transactions
without the transfer of ownership, depreciation ofleased assets is calculated on the straight-line method
over the lease term with no residual value.

12(3) Accounting for significant reserves
Allowance for Doubtful Accounts
Allowance for doubtful accounts is provided based on
historical experience of bad debts for trade receivables
combined with an estimate of the collectability ofreceivable from companies in financial difficulty.

(7)	The amortization method and amortization period for
goodwill
Goodwill is amortized by the straight-line method over 5 to
15 years. Immaterial goodwill generated from minor
business acquisitions is expensed in the year thetransaction was executed.

(4) Accounting method for retirement benefit liability
The estimated amount of retirement benefits for
employees is attributed to each period by the benefit
formula method.
Prior service cost is amortized by the straight-line method
over a period within the average remaining service years
for employees (mainly 10 years) at the time of recognition.
Actuarial gains or losses are amortized on a straight-line
basis over a period (mainly 10 years), which is shorter than
the average remaining years of service of the eligible
employees, from the fiscal year following the fiscal year inwhich differences arise.
Unrecognized actuarial gains or losses and unrecognizedpri o r se r v i ce cost , net of tax , are reco gnized as“Remeasurement of defined benefit plans” in “Accumulated
other comprehensive income” of “Net assets”.
Certain consolidated subsidiaries use a simplified method
for calculating retirement benefit expenses and liabilities
based on the assumption that the benefits payable, which
are calculated as if all eligible employees voluntarily
terminated their employment at the current fiscal year
end, approximate net defined benefit liability at year-end.

(8)	Scope of cash and cash equivalents in the consolidated
statement of cash flows“Cash and cash equivalents” in the consolidated cash flow
statement consists of cash-in-hand, deposits readily
convertible into cash, and short-term investments with low
risk of price fluctuations and with a maturity of threemonths or less at the time of acquisition.

(5)	Standards of translation into yen of significant assets or
liabilities denominated in foreign currencies
All monetary receivables and payables denominated inforeign currencies are translated into Japanese yen at theexchange rates at the balance sheet date. Foreignexchange gains and losses resulting from the currency
conversion and settlement are recognized in profit or loss.
A ssets and liabilities of the consolidated foreignsubsidiaries are translated into Japanese yen at thecurrent exchange rate as of the balance sheet date, andrevenue and expense items are translated into Japanese
yen at average exchange rates during the period.
Differences arising from such translation are included in“Foreign currency translation adjustment” in“Accumulated other comprehensive income” and “Noncontrolling interests” as a separate component of “Netassets”.
(6) Important hedge accounting methods
Deferred hedging is used for valuation gains and losses on
forward foreign exchange contracts. Allocation treatment
is applied to those forward exchange contracts that are
eligible.
The Companies enter into hedged transactions in theordinary course of business in accordance with its internal
rules to reduce exposure of fluctuations in future foreign
currency exchange rates.
Hedging instruments are forward exchange contract andhedged items are the forecast transaction in foreign
currency.
Hedge effectiveness assessment are not considerednecessary, as the Company assumes that cash flow fromfluctuations from exposure to foreign exchange rates willbe identically offset by the fluctuation in the hedging
instrument, which is contracted at the same amount.

13(9)	Other important accounting policies in the preparation of
consolidated financial statements
Consumption tax and local consumption tax are accounted
for by tax-exclusion method.
The consolidated tax payment system is applied.

Change in Accounting Policies
The Company’s consolidated foreign subsidiaries reporting
under IFRS and US GAAP have applied IFRS 15 and ASU 201409 “Revenue from Contracts with Customers” from the
beginning of the fiscal year ended March 31, 2019.
The impact of this change on profit or loss for the twelve
months ended March 31, 2019 is immaterial.
The Group has adopted the approach of recognizing the
cumulative effect of applying this standard at the date of initial
application as permitted by the transition method of IFRS 15
and ASU 2014-09.

Forthcoming Accounting Standards
1. The Company and domestic consolidated
subsidiaries“Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29)” and “Implementation Guidance on
Accounting Standard for Revenue Recognition (ASBJ Guidance
No. 30)” will be applied from the beginning of the fiscal year
ended March 31, 2022.

2. Overseas consolidated subsidiaries
IFRS 16 and ASU 2016-02 “Leases” will be applied from the
beginning of the fiscal year ended March 31, 2020.

Change in presentation(Changes in presentation associated with application of“Partial Amendments to Accounting Standard for Tax EffectAccounting”)
The Company and domestic consolidated subsidiaries haveapplied the ASBJ Statement No.28 “Partial Amendments to
Accounting Standard for Tax Effect Accounting” effective fromthe beginning of the fiscal year ended March 31, 2019.
Accordingly, Deferred tax assets are classified as Investments
and other assets, and Deferred tax liabilities are classified as
Non-current liabilities.
As a result, ¥6,155 million of Deferred tax assets under Current
assets is included in Deferred tax assets under Investments
and other assets in Consolidated Balance Sheet as of March
31, 2018.

The note related to “Income Taxes and Deferred Tax Assets andLiabilities” is additionally included those described in note 8(excluding total amount of valuation allowance), and 9 of
“Accounting Standard for Tax Effect Accounting”, which arerequired in Paragraph 3 to Paragraph 5 of the ASBJ Statements
No.28. However, the additional information corresponding to
the previous fiscal year is not disclosed, following thetransitional treatment prescribed in Paragraph 7 of the ASBJ
Statement No.28.

*4. Notes due on the last day of the fiscal year
	Notes due on the last day of the fiscal year are deemed tohave been settled on the due date.
	The following notes matured as of the end of the period
are included in the balance because the end of the current
period fell on a day on which financial institutions wereclosed.

(Consolidated Balance Sheet)“Accrued expenses” under “Current liabilities” separately
presented for the year ended March 31, 2018, is included in“Other ” under “Current liabilities” since it became
insignificant in terms of amount. To reflect this change in thepresentation, the previous consolidated financial statement
and related foot note amounts are reclassified.
As a result of this change, “Accrued expenses” of ¥14,443
million separately presented under “Current liabilities” in theprevious consolidated financial statements is reclassified as“Other”.

Notes receivable - trade
Notes payable - trade(Consolidated Statement of Income)“Insurance income” included in “Other” under “Non-operating
income” for the year ended March 31, 2018, is separately
presented since it became significant in terms of amount. To
reflect this change in the presentation, the previous
consolidated financial statements and related foot noteamounts are reclassified.
As a result of this change, “Other” of ¥0 million collectively
presented in the previous consolidated financial statements is
reclassified as “Insurance income” and “Other” under “Nonoperating income”.

2019

Thousands of
U.S. dollars

2018

¥26

¥26

2019

$234

2. Contingent Liabilities
	Contingent liabilities at March 31, 2019 and 2018 are as
follows:
2019

2018

¥43

2019

¥196
17

$1,550243*1. Selling, general and administrative expenses	Major components of selling, general and administrative
expenses for the years ended at March 31, 2019 and 2018
are as follows:
Millions of yen

Personnel expenses
Retirement benefit expenses
Research and development
expensesThousands of
U.S. dollars

2019

2018

2019

¥83,379
3,360¥82,481
3,561$751,230
30,27324,907

24,792

224,408*2. Research and development expenses
	Research and development expenses included inadministrative expenses and manufacturing cost for theyears ended March 31, 2019 and 2018 are as follows:

Research and development
expensesThousands of
U.S. dollars

2019

2018

2019

¥27,761¥28,065$250,122*3. Restructuring cost
Year ended March 31, 2019
Not applicableYear ended March 31, 2018
The major contents of Restructuring cost for the year ended
March 31, 2018 are extra retirement benefit payments and thecosts associated with the reorganization of overseas
operations.

Thousands of
U.S. dollars

Millions of yen

Guarantees on employees’
housing loans

2018

¥172
27

Millions of yen*1. Investment securities
	Investment securities issued by unconsolidated
subsidiaries and affiliated companies at March 31, 2019and 2018 are as follows:

Investment securities

2019

Notes to Consolidated Statement of Income

Notes to Consolidated Balance Sheet

Millions of yen

Thousands of
U.S. dollars

Millions of yen

¥62

2019

$387

3. Notes receivable discounted and Trade bills discounted	Notes receivable discounted and Trade bills discounted at
March 31, 2019 and 2018 are as follows:
Thousands of
U.S. dollars

Millions of yen

2019

Notes receivable discounted
Trade bills discounted¥1,260
143

2018

−
48

2019

$11,352
1,288

14

Notes to Consolidated Statement ofComprehensive Income

Notes to Consolidated Statement of Changes
in Net Assets*Other comprehensive income for the years ended March 31,
2019 and 2018 are as follows:Year ended March 31, 2019*1.	The type and total number of issued shares as well as thetype and number of our treasury shares are as follows:

Reclassification adjustment and income tax relating to othercomprehensive income
Millions of yen

2019

2018

Foreign currency translation adjustment
Amount incurred¥(782)
Reclassification
adjustments for gains
and losses realized in net
income−Foreign currencytranslation adjustment¥(782)
Minimum pension liability adjustment
Amount incurred¥415
Tax effect adjustment(109)
Minimum pension
liability adjustment¥305¥(458)(4,901)(4,487)1,369$(3,108)

¥(32)

$270

9

288

(23)
7

559
(171)

¥(16)

$387

¥1,171$(7,046)

(438)

−

¥732

$(7,046)

¥117
(41)

$3,739(982)¥76$2,748Remeasurements of defined benefit plans
Amount incurred¥197¥(1,726)
Reclassification
adjustments for gains
and losses realized in net
income261
377
Amount before tax effectadjustment459(1,349)Tax effect adjustment
(138)
422
Remeasurements ofdefined benefit plans¥320¥(927)
Total other comprehensive
income$405¥463$1,7752,352
4,136(1,243)$2,883$(4,126)

Number ofsharesincreased

Number ofsharesdecreased

Number ofshares at endof current
period288,145−

230,516

57,629288,145−

230,516

57,62913,441

13

10,7832,670

13,441

13

10,783

2,670

Number ofshares at
beginning ofcurrent period

2019

Other comprehensive income
Valuation difference on available-for-sale securities
Amount incurred¥45¥863
Reclassification
adjustments for gains
and losses realized in net
income(544)−
Amount before tax effectadjustment
(498)
863
Tax effect adjustment
152
(265)
Valuation difference on
available-for-salesecurities¥(345)¥598
Deferred gains or losses on hedges
Amount incurred¥30
Reclassification
adjustments for gains
and losses realized in net
income32
Amount before tax effectadjustment
62
Tax effect adjustment(19)
Deferred gains or losses
on hedges¥43(thousand shares)

Thousands of
U.S. dollars

Issued shares
Common shares(Note 1, 2)
Total
Treasury shares
Common shares(Note 1, 3, 4)
Total

Notes:1.	The Company carried out the share consolidation at a ratio of one
for every five common shares, effective on October 1, 2018.
		The above table shows the number of shares before the shareconsolidation until September 30, 2018, and the number after theshare consolidation from October 1, 2018.
2.	The decrease of 230,516 thousand shares in issued shares resulted
from the share consolidation.
3.	The increase of 13 thousand shares in treasury shares was due topurchase requests for shares less than one unit.
4.	The decrease in treasury shares of 10,783 thousand shares wasprimarily attributable to the share consolidation, which accounts
for 10,675 thousand of the decrease. Further contributing to thedecrease was the exercise of share acquisition rights for 107
t h o u s a n d s h a re s , w h i c h wa s exe c u te d b efo re t h e s h a reconsolidation. After the share consolidation, the Company soldcertain shares and disposed of 1 thousand shares.

2.	Share acquisition rights to shares and treasury shareacquisition rights are as follows:
Number of shares subject toBalance at
Type ofshare acquisition rights (shares) Balance at
end of
The details
sharescurrentofend ofsubject toAtperiodshare
current
Classification
At end ofshare
beginning(Thousands
acquisition
periodacquisition of current Increased Decreased currentof U.S.
rightsperiod (Million yen)rightsperioddollars)Share
theacquisition
Company
rights as(Parent
stock
company)
options
Total

−

−

−

−

−

¥147

$1,324

−

−

−

−

−

¥147

$1,324

Note: All share acquisition rights in the above table can be exercised.

3. Cash dividends(1) Payments of dividends(Resolution)
Board ofDirectors’
meeting
held on May 9,
2018
Board ofDirectors’
meeting
held onNovember 7,
2018Type ofsharesTotal amountof dividends

Dividends
per share

Record date

Effective dateCommonshares¥1,373 million($12,370
thousand)¥5($0.05)

March 31,2018

June 5, 2018

Commonshares¥1,099 million($9,902
thousand)¥4($0.04)September 30, December 3,
2018
2018

Note:		The Company carried out the share consolidation at a ratio of one
for every five common shares, effective on October 1, 2018.
		However, the figures for dividends per share have been calculated
before the share consolidation.

15

(2)	Dividend payments for which the record date is in the fiscal
year ended March 31, 2019, and the effective date is in thefollowing fiscal year
(Resolution)

Type ofsharesTotal amount Dividends Dividends
Record date Effective dateof dividends resource per share

Board of
¥1,648 million
Retained
CommonDirectors'($14,848
earnings
meeting held on shares
thousand)May 10, 2019¥30($0.27)

March 31, 2019

June 7, 2019

(thousand shares)

Issued shares
Commonshares
Total
Treasury shares
Common shares(Note 1, 2)
Total

Number ofsharesdecreased

Number ofsharesincreased

Number ofshares at endof current
period288,145−−

288,145

288,145−−

288,145

13,41435

913,441

13,41435

913,441

Notes:1.	The increase of 35 thousand shares in treasury shares was due topurchase requests for shares less than one unit.
2.	The decrease of 9 thousand shares in treasury shares resulted fromthe exercise of share acquisition rights to shares.

2.	Share acquisition rights to shares and treasury shareacquisition rights are as follows:
Number of shares subject toType ofshare acquisition rights (shares)
sharesThe details ofBalance at end
subject toshareof current
At
Classification
At end ofshareacquisition
periodbeginning
Increased
Decreasedcurrent
acquisition of current
rights(Million yen)periodrightsperiodthe
Share
Companyacquisition
−
−
−
−
−
¥153
(Parent
rights ascompany) stock option
Total
−
−
−
−
−
¥153

Note: All share acquisition rights in the above table can be exercised.

3. Cash dividends(1) Payments of dividends(Resolution)
Board ofDirectors’
meeting
held on May
12, 2017
Board ofDirectors’
meeting
held onNovember 8,
2017Type ofsharesTotal amountof dividends

Dividends
per share

Record date

Effective dateCommonshares¥549 million¥2.0

March 31,2017

June 7, 2017

Commonshares¥824 million¥3.0

September 30, December 1,
2017
2017

(2)	Dividend payments for which the record date is in the fiscal
year ended March 31, 2018, and the effective date is in thefollowing fiscal year
(Resolution)

Type ofshares*1.	Reconciliation of balance of cash and cash equivalents at
t h e e n d o f p e r i o d a n d ca s h a n d d e p o s i ts i n t h econsolidated balance sheet are as follows:
Millions of yen

Year ended March 31, 2018*1.	The type and total number of issued shares as well as thetype and number of our treasury shares are as follows:
Number ofshares at
beginning ofcurrent period

Notes to Consolidated Statement of Cash
Flows

Cash and deposits
Group deposits paid
Cash and cash equivalents

Thousands of
U.S. dollars

2019

2018

2019

¥45,501
9,996¥55,498¥57,355−¥57,355$409,956
90,062$500,027*2.	Principal assets and liabilities of a company that ceased to
be a consolidated subsidiaryYear ended March 31, 2019
Not applicableYear ended March 31, 2018
The breakdown of assets and liabilities at the time of the
exclusion of Kokusai Chart Corporation from the scope of
consolidation due to the sales of shares, the net amount of thesales of shares, and payments for sales of shares are as follows:
Millions of yen

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Non-controlling interests
Investment account after sale
Gains on sales of shares of subsidiaries
Total sale value
Cash and cash equivalents
Net: payments for sales of shares¥1,875
997
(999)
(794)
(407)
(121)
238
789
(1,078)¥(289)*3.	Principal assets and liabilities concerning acquisition ofbusinessYear ended March 31, 2019
The breakdown of assets and liabilities concerning acquisitionof business increased due to value of acquisition of businessand payments for acquisition of business are as follows:
Current assets
Non-current assets
Goodwill
Current liabilities
Value of acquisition of business
Unpaid amount of acquisition cost
Foreign currency translation difference
Payments for acquisition of businessMillions of yen

Thousands of
U.S. dollars¥1,1865445(1,194)
443
−
(19)
¥423

$10,686
45
4,009(10,758)
3,991
−
(171)
$3,811

Total amount Dividends Dividends
Record date Effective dateof dividends resource per share

Board ofDirectors’
Retained
Commonmeeting¥1,373 million
earnings
sharesheld on May 9,
2018

¥5.0

March 31, 2018

June 5, 201816

Year ended March 31, 2018
The breakdown of assets and liabilities increased byacquisition of business, value of acquisition of business andpayments for acquisition of business are as follows:
Millions of yen

Current assets
Non-current assets
Goodwill
Current liabilities
Value of acquisition of business
Unpaid amount of acquisition cost
Foreign currency translation difference
Payments for acquisition of business

¥61
27
394
(119)
363
(36)
(7)
¥320

Millions of yen

Assets related to financelease transactions
Liabilities related to financelease transactions

Millions of yen

Thousands of
U.S. dollars

¥177
835
439
(322)
(354)
777
(82)
(14)
(14)

$1,595
7,523
3,955(2,901)(3,189)
7,001
(739)
(126)
(126)

¥667

$6,010Year ended March 31, 2018
Not applicableYear ended March 31, 2019
The breakdown of assets and liabilities increased due toacquisition of voting rights by the conversion of restricted
voting stock to common shares and change of scope of
consolidation by the establishment of a company are as
follows:

17

Millions of yen

Thousands of
U.S. dollars¥1,243
1,806¥3,049(882)−¥(882)$11,199
16,272$27,471(7,947)−$(7,947)

Thousands of
U.S. dollars

2019

2018

2019

¥1,569¥2,238$14,136¥1,562¥2,615$14,073

Lease Transactions(Lessee)

1. Finance lease	Finance Lease transactions, except for those which meetthe conditions that the ownership of the leased assets
have been transferred to the lessee.
(1)	The content of leased assets:
Mainly machinery and equipment(2) Depreciation method of leased assets:	Please refer to “4. Accounting policies (2) Depreciation andamortization methods of significant depreciable andamortizable assets”.
2. Operating lease	Future minimum lease payments for non-cancelable
operating leases are summarized as follows:
Millions of yen

Payment due within 1 year
Payment due in more than 1 year
Total

Thousands of
U.S. dollars

2019

2018

2019

¥5,155
14,479¥19,634¥5,513
10,438¥15,951$46,446
130,453$176,899(Lessor)

1. Finance lease(1) The details of lease investment assets(i) Lease investment assets - current assets
Millions of yen*5. Details of important non-cash transactions(1)	Assets and liabilities related to increase (decrease) in cash
and cash equivalents resulting from change of scope of
consolidation

Current assets (Note)
Non-current assets
Total assets
Current liabilities
Non-Current liabilities
Total liabilities

Year ended March 31, 2018
Not applicable(2)	Assets and liabilities related to finance lease transactions*4.	P rincipal assets and liabilities concerning purchase ofshares of subsidiaries resulting in change in scope of
consolidation
Year ended March 31, 2019
The breakdown of assets and liabilities at the start ofconsolidation of an overseas company by acquisition ofshares, and the relationship between the acquisition value andpayments for acquisition are as follows:
Additionally, the newly acquired company was dissolved andabsorbed into another consolidated subsidiary through anabsorption-type merger.
Current assets
Non-current assets
Goodwill
Current liabilities
Non-current liabilities
Acquisition of share
Cash and cash equivalents
Unpaid amount of acquisition cost
Other
Purchase of shares of subsidiaries
resulting in change in scope of
consolidation

Note:	“Current assets” above includes ¥399 million ($3,595 thousand) of
cash and cash equivalents and it is presented as “Increase (decrease)in cash and cash equivalents resulting from change in scope of
consolidation” in the consolidated statement of cash flows.

Lease receivables
Interests receivable
Total

Thousands of
U.S. dollars

2019

2018

2019

¥3,289(386)¥2,903¥3,297(402)¥2,894$29,633(3,478)$26,156(ii)	Lease investment assets - investments and otherassetsLease receivables
Interests receivable
Total¥5,089(621)¥4,468¥5,144(649)¥4,495$45,851(5,595)$40,256

(2)	Expected collectible amounts of lease revenues receivablein the following fiscal years are as follows:
Millions of yen

Within 1 year
After 1 year within 2 years
After 2 years within 3 years
After 3 years within 4 years
After 4 years within 5 years
More than 5 years

Thousands of
U.S. dollars

2019

2018

2019

¥3,289
2,496
1,528
764
300
−
¥8,379¥3,297
2,496
1,549
824
274
−
¥8,442$29,633
22,48913,767
6,884
2,703
−
$75,493

2. Operating lease	Future minimum lease payments for non-cancelable
operating leases are summarized as follows:
Millions of yen

Payment due within 1 year
Payment due in more than 1 year
Total

Thousands of
U.S. dollars

2019

2018

2019

¥760
1,134
¥1,894¥219
1,529¥1,749$6,847
10,217$17,065

3.	Amount on the consolidated balance sheet that
corresponds to sub-lease transaction and before deducting
the portion of interest equivalent amount are summarized
as follows:(1) Lease investment assets
Millions of yen

Current assets
Investments and other assets

Thousands of
U.S. dollars

2019

2018

2019

¥1,8132,499¥1,8182,453$16,335
22,516¥1,8182,453$16,335
22,516(2) Lease investment payable
Current liabilities
Non-current liabilities¥1,813
2,499

Financial Instruments
1. Condition of financial instruments(1) Policy for financial instruments
	The Companies, in principle, limit the scope of its cash andfund management activities to short-term deposits, etc.
	The Companies use derivatives for the purpose of reducing
risks (described below) and don't enter into derivatives for
speculative or trading purposes.
(2) Types of financial instruments and related risks	Trade receivables (Notes and accounts receivable - trade)are exposed to credit risk in relation to customers. In
addition, the Companies are exposed to foreign currency
exchange rate fluctuation risk arising from receivables
denominated in foreign currencies. In principle, the foreign	currency exchange rate fluctuation risk deriving from thetrade receivables denominated in foreign currencies, netof trade payables denominated in the same currencies, arehedged by forward foreign exchange contracts.
	Investment securities are exposed to market risk. These
are the equity securities of certain enterprises with which
the Companies have business relationships.
	Substantially all trade payables (Notes and accounts
payable - trade) are due within one year. The Companies

are exposed to foreign currency exchange rate fluctuation
risk arising from those payables denominated in foreign
currencies. However the volume of trade payable is in therange of accounts receivable of the same currency.
	Short-term loans payable are mainly for financing related
to operating activities by bank loans.
	Regarding derivatives, the Companies enter into forward
foreign exchange contracts and options to reduce theforeign currency exchange rate fluctuation risk arising fromthe receivables and payables denominated in foreign
currencies.
	With regard to instruments, targets, policies and methodsof evaluating the effectiveness of the hedge, please refer to	Significant matters forming the basis of preparing theconsolidated financial statements “4. Accounting policies(6) Important hedge accounting methods”.
(3) Risk management for financial instruments(i)	Monitoring of credit risks (the risks related to breachof contract with client)	The Company adheres to the internal policies for its
trade receivables by having the Credit Managing
division monitor the status of major counterparties
regularly and managing due dates and balances bycounterparty, while working to detect early andmitigate any concerns about collection due to thedeterioration in their financial positions and otherreasons.
(ii)	Monitoring of market risks (the risks arising fromfluctuations in foreign exchanges rates, interest rates
and others)	For trade receivables and payables denominated inforeign currencies, the Companies identify the foreign
currency exchange rate fluctuation risk for eachcurrency on a monthly basis and enter into forward
foreign exchange contracts to hedge such risk.
	The Financial Division manages risks on derivativetransactions, in accordance with the internal policies.
	Monthly reports including actual transaction data aresubmitted to Chief Financial Officer for their review.
	For marketable and investment securities, theCompanies periodically review the fair values of suchfinancial instruments and the financial position of theissuers. In addition, the Companies continuously
evaluate whether securities should be maintained
taking into account their fair values and relationships
with the issuers.
(iii)	Monitoring of liquidity risk (the risk that theCompanies may not be able to meet its obligations onscheduled due dates)	Based on the report from each division, theCompanies prepare and update their cash flow plans
on a timely basis to manage liquidity risk.
(4)	Supplementary explanation of the fair value of financial
instruments
The fair value of financial instruments is based on theirquoted market price, if available. When there is no quoted
market price available, the fair value is determined basedon reasonable estimates. Since various assumptions andfactors are reflected in estimating the fair value, different
assumptions and factors could result in different fair value.
In addition, the notional amounts of derivatives in“Derivative Transactions” are not indicative of the actual
market risk involved in derivative transactions.

18

2. Fair value of financial instruments
Year ended March 31, 2019
	The carrying value of financial instruments in the
consolidated balance sheet as of March 31, 2019, and theirfair value are as follows:	Items without market value are not included in the
securities in the table. (See Note2)

Millions of yen(a) Cash and deposits
and accounts(c) Notes
receivable - trade
Allowance for
doubtful accounts (*1)

Millions of yen(a) Cash and deposits(b) Group deposits paid
and accounts(c) Notes
receivable - trade
Allowance for
doubtful accounts (*1)and(d) Marketable
investment securities
Total assets
and accounts(e) Notes
payable - trade(f) Short-term loans payable(g) Accounts payable - other(h) Lease obligations (*2)
Total liabilities(i) Derivative transactions (*3)

Consolidatedbalance sheet

Fair value

Difference¥45,501
9,996¥45,501
9,996−−

60,054(1,422)
58,632

58,632

−

3,711

3,711

−

117,842

117,842−(56,215)(56,215)−(383)(22,834)(8,801)(88,234)320(383)(22,834)(8,396)(87,830)
320

−
−
(404)
(404)
−

Thousands of U.S. dollars
Consolidatedbalance sheet
Fair value
Difference(a) Cash and deposits(b) Group deposits paid
and accounts(c) Notes
receivable - trade
Allowance for
doubtful accounts (*1)$409,956
90,062$409,956
90,062−−528,264−

33,435−

1,061,735−(506,487)−(3,451)(205,730)(75,646)(791,333)
2,883

−
−
(3,640)(3,640)−541,076(12,812)528,264
Marketableand(d) investment securities
33,435
Total assets
1,061,735
and accounts(e) Notes(506,487)
payable - trade(f) Short-term loans payable(3,451)(g) Accounts payable - other(205,730)(79,295)(h) Lease obligations (*2)
Total liabilities(794,973)(i) Derivative transactions (*3)2,883(*1) Allowance for doubtful accounts provided for individual customers are deducted.
(*2) Lease obligations scheduled to be repaid within one year are included.
(*3) The value of assets and liabilities arising from derivatives is shown at net value.
The liability position is shown in parenthesis.

Year ended March 31, 2018
	The carrying value of financial instruments in the
consolidated balance sheet as of March 31, 2018, and theirfair value are as follows:	Items without market value are not included in the
securities in the table. (See Note2)

19and(d) Marketable
investment securities
Total assets
and accounts(e) Notes
payable - trade(f) Short-term loans payable(g) Accounts payable - other(h) Lease obligations (*2)
Total liabilities(i) Derivative transactions (*3)

Consolidatedbalance sheet

Fair value

Difference¥57,355¥57,355−

66,01166,011

−

4,420

4,420

−

127,790

127,790−(59,604)(59,604)−(304)(25,269)(10,477)(95,656)850(304)(25,269)(10,042)(95,220)
850

−
−
(435)
(435)
−

67,996(1,985)(*1) Allowance for doubtful accounts provided for individual customers are deducted.
(*2) Lease obligations scheduled to be repaid within one year are included.
(*3) The value of assets and liabilities arising from derivatives is shown at net value.
The liability position is shown in parenthesis.

Notes:1.	Method to determine the fair value of financial instruments andother matters related to securities and derivative transactions(a)	Cash and deposits, (b) Group deposits paid and (c) Notes andaccounts receivable - trade
Since these items are settled in a short period of time, their carrying
value approximates the fair value.
(d)	Marketable and investment securities
The fair value of marketable and investment securities is based on
the quoted market price. For information on securities by eachholding purpose, please refer to “Securities”.
(e)	Notes and accounts payable - trade, (f) Short-term loans payableand (g) Accounts payable - other
Since these items are settled in a short period of time, their carrying
value approximates the fair value.
(h) Lease obligations
The fair market value is calculated by discounting the total amountof the principal and interest based on the reasonably estimatedinterest rate for similar borrowings.
(i) Derivatives transactions
Please refer to “Derivative Transactions”.
2.	Financial instruments for which an observable market price orobservable inputs used to determine a market price doesn't exist
Thousands of
U.S. dollars

Millions of yen

Unlisted stocks

2019

2018

2019

¥297

¥1,638$2,676The unlisted stocks which do not have market prices are not included in(d) Marketable and investment securities in the above table, since theestimation of the fair value is deemed to be extremely difficult.

3.	Collection schedule of monetary claim and redemption
schedule of held-to-maturity securities after the
consolidated balance sheet as of March 31, 2019 and 2018
are as follows:

Within 1 year

Cash and deposits
Group deposits paid
Notes andaccounts
receivable - trade
Total

Millions of yen
2019
After 1 year
After 5 years
within 5 years within 10 years

More than
10 years¥45,501
9,996

−
−

−
−

−
−

60,054−−−¥115,553−−−

Thousands of U.S. dollars
2019
After 1 year
After 5 years
within 5 years within 10 years

Within 1 year

Cash and deposits $409,956
Group deposits paid
90,062
Notes andaccounts
541,076
receivable - trade
Total$1,041,112

More than
10 years

Carrying value

−
−

−
−

−
−

−

−

−

−

−

−

Millions of yen
2018
After 1 year
After 5 years
within 5 years within 10 years

Within 1 year

Cash and deposits
Notes andaccounts
receivable - trade
Total

Thousands of U.S. dollars
2019

More than
10 years¥57,355−−−

67,996−−−¥125,352−−−

4.	Payment schedule of long-term loans payable, leaseobligations and other interest-bearing debt after the
consolidated balance sheet as of March 31, 2019 and 2018
are as follows:
Within 1
year

Short-termloans payable
¥383
Lease
4,054
obligations
Total¥4,437

Within 1
year

−

−

−

−

2,720

1,302

579

144

−

¥2,720¥1,302

¥579

¥144

−

Thousands of U.S. dollars
2019
After 1 year After 2 years After 3 years After 4 years More than
within 2 years within 3 years within 4 years within 5 years 5 years

Short-termloans payable $3,451
−
−
Lease
36,526 24,507 11,731
obligations
Total$39,977 $24,507 $11,731

Within 1
year

Short-termloans payable
¥304
Lease
4,795
obligations
Total¥5,099Investment securities whose carrying value exceeds their acquisition
cost:
Stocks$33,003$8,776$24,218
Investment securities whose acquisition cost exceeds their carrying
value:
Stocks
423
514
(81)
Total
$33,435$9,289$24,137
Note:	The unlisted stocks of ¥297 million ($2,676 thousand) and ¥1,638
million for the year ended March 31, 2019 and 2018 which do not havemarket prices are not included in “Investment securities” in theabove table, since the estimation of the fair value is deemed to be
extremely difficult.

2.	Information regarding the sales of securities, except thoseof the affiliated companies, for the years ended March 31,
2019 and 2018 are as follows:
Millions of yen

StocksProceeds

2019
Realized
gains

¥680

¥544

Millions of yen
2019
After 1 year After 2 years After 3 years After 4 years More than
within 2 years within 3 years within 4 years within 5 years 5 years

−

−

−

−

5,217

1,297

−

$5,217$1,297−

Millions of yen
2018
After 1 year After 2 years After 3 years After 4 years More than
within 2 years within 3 years within 4 years within 5 years 5 years

−

−

−

−

−

3,273

1,764

550

94

−

¥3,273¥1,764

¥550

¥94

−

1.	Information regarding marketable securities as of March
31, 2019 and 2018 are as follows:
Millions of yen
2019

2018

Unrealized
Carrying Acquisition gains
value
cost
(losses)

Unrealized
Carrying Acquisition gains
value
cost
(losses)

Investment securities whose carrying value exceeds their acquisition
cost:
Stocks¥3,663¥974 ¥2,688 ¥4,261¥983 ¥3,278
Investment securities whose acquisition cost exceeds their carrying
value:
Stocks
47
57
(9)
158
170
(12)
Total
¥3,711 ¥1,031 ¥2,679 ¥4,420 ¥1,154 ¥3,266

Realized
losses−Proceeds

2018
Realized
gains

Realized
losses

¥286

¥274

−

Thousands of U.S. dollars
2019
Proceeds

StocksRealized gains$6,127

Realized losses$4,901−

3. Information regarding impairment of securities
Year ended March 31, 2019
	Not applicableYear ended March 31, 2018
	The Company has recognized an impairment loss on
securities and recorded loss on valuation of investment
securities in the amount of ¥236 million.

Derivative Transactions
1.	Summarized below are the amount of contract and the fairvalue of the derivative transaction for which the hedge
accounting is not applied.
Currency-related transactions
Transaction outside the market
Millions of yen
2019
Contract amount

Securities

Unrealized gains(losses)Acquisition cost

2018
Fair
value

Unrealized
gains(losses)Maturing Maturing
withinin more1 year than 1 year
Forward foreignexchange contracts

Sell:
USD
EUR
CAD
CNY
Buy:
USD
EUR
Total

Contract amount

Fair
value

Unrealized
gains(losses)Maturing Maturing
withinin more1 year than 1 year

¥16,541
10,549
1,382
1,026

¥−
−
−
−

¥(70)
250
56
0

¥(70)
250
56
0

¥17,788
11,473
−
811

¥−
−
−
−

¥803
207
−
3

¥ 803
207
−
3

6,547
1,078
¥37,127

−
−
¥−

83
(29)
¥290

83
(29)
¥290

7,418
1,021
¥38,513

−
−
¥−

(113)
(17)
¥882

(113)
(17)
¥882

20

Thousands of U.S. dollars
2019
Contract amount

Fair value

Millions of yen
2018
Unrealized
gains (losses)

Maturing
Maturing in more
within 1 year
than 1 year

$−
−
−
−

$(631)
2,252
505
0$(631)
2,252
505
0

USD

58,987
9,713$334,508

−
−
$−

748
(261)
$2,613748(261)$2,613CAD

2.	Summarized below are the amount of contract and the fairvalue of the derivative transactions to which the hedge
accounting is applied.
Currency-related transactions
1) Net deferred gains or losses on hedges

EUR
AUD

Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade¥3,097

¥−

¥12

2,609

−

0

467

−

(0)

268

−

(0)

Accounts
payable-trade
Accounts
payable-trade

6,588

−

(43)

280

−

(1)

¥13,313

¥−

¥(32)

Buy:
USD
EUR
Total

Note: Calculation of the fair value is based on the value quoted from financial institutions.

2) Forward foreign exchange contracts to which the deferral
hedge accounting is applied

Millions of yen
2019
Main hedged items

Contract amount
Maturing
within 1 year

CAD

EUR

Sell:

Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade¥3,644

¥−

¥(2)

USD

2,980

−

30

EUR

272

−

0

Accounts
payable-trade
Accounts
payable-trade

5,092

155

−

0

AUD

4

USD
AUD

244

−

(2)

¥12,389¥−¥30

Main hedged items

Contract amount
Maturing
within 1 year

Accounts
payable-trade
Accounts
payable-otherAccounts
payable-trade

Total

Fair value

EUR
Total

21

2,865

−

6

1,175

−

13

1,387

−

7

318

−

0

230

−

(1)

¥6,273¥−¥27

Main hedged items

Contract amount

Fair value

Maturing in morethan 1 year

Forward foreignexchange contracts

Sell:

Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade$32,832

$−

$(18)

USD

26,849

−

270

EUR

2,451

−

0

AUD

1,397

−

0

Accounts
payable-trade
Accounts
payable-trade45,878

−

36

USD

2,198

−

(18)

AUD

$111,623$−$270

Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade$2,658$−$925,813−54

10,587−117

Accounts
payable-trade
Accounts
payable-otherAccounts
payable-trade

12,497

−

63

2,865

−

0

2,072

−

(9)

$56,519

$−

$243

Buy:
USD

Buy:
USD

¥1

Maturing
within 1 year

Sell:

CAD

¥−

Thousands of U.S. dollars
2019

Maturing in morethan 1 year

Forward foreignexchange contracts

AUD

¥295

Buy:
USD

−

Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade

Thousands of U.S. dollars
2019

EUR

Fair value

Maturing in morethan 1 year

Forward foreignexchange contracts

Total

USD

Contract amount
Maturing
within 1 year

Buy:
USD

Main hedged items

Maturing in morethan 1 year

Sell:

AUD

Millions of yen
2019

Fair value

Forward foreignexchange contracts

EUR

Fair value

Maturing in morethan 1 year

Sell:
$149,031
95,045
12,452
9,244

Note: Calculation of the fair value is based on the value quoted from financial institutions.

USD

Contract amount
Maturing
within 1 year

Forward foreignexchange contracts

Forward foreignexchange contracts

Sell:
USD
EUR
CAD
CNY
Buy:
USD
EUR
Total

Main hedged items

Total

Millions of yen
2018
Main hedged items

Contract amount
Maturing
within 1 year

Fair value

Maturing in morethan 1 year

Sell:

AUD
CAD

Accounts
receivable-trade
Accounts
receivable-trade
Accounts
receivable-trade

¥468

¥−

¥13

1,465

−

74

856

−

55

915

−

(27)

229

−

(1)

256

−

(5)

¥4,192

¥−

¥109

Buy:
USD
USD
AUD

Accounts
payable-trade
Accounts
payable-otherAccounts
payable-other

Total

Note: Calculation of the fair value is based on the value quoted from financial institutions.

Balance at the beginning of the year
Expected return on plan assets
Actuarial gains or losses
Contributions by the Company
Retirement benefits paid
Other
Balance at the end of the year

1.	Summary of retirement benefit plans
	The Company and its consolidated subsidiaries have both
funded and unfunded defined benefit plans and defined
contribution plans.
	In defined benefit plans which are fully funded, thebenefits are determined by reference to qualification andlength of service and paid on a lump-sum or annuity basis.
	In defined benefit plans which are fully unfunded, thebenefits are determined by reference to assessment andqualification and paid on a lump-sum basis.
	In addition, certain subsidiaries use the simplified method
for the calculation of defined benefit liability andretirement benefit cost of their defined benefit pension
plans and lump-sum payment plans.
	The Company and certain domestic subsidiaries haveadopted defined contribution pension plans since October
1, 2015.
	The defined contribution plans are designed to replace thefunding of defined benefit plans, whereby employees are
responsible for managing the funds themselves. For those
employees who do not want to participate in the defined
contribution benefit plan, the Companies pay an advancepayment of retirement benefits, equivalent to theemployer's contribution of the defined contribution plan.
Some of overseas consolidated subsidiaries haveterminated defined benefit pension plans and adopted
defined contribution pension plans.
2. Defined benefit plans(1)	The changes in the retirement benefit obligation during
the years ended March 31, 2019 and 2018

Balance at the beginning of the year
Service cost
Interest cost
Actuarial gains or losses
Retirement benefits paid
Other
Balance at the end of the year

Thousands of
U.S. dollars

2019

2018

2019

¥92,576
3,523
655(1,295)(4,137)(934)¥90,388¥89,152
3,386
848
3,350
(3,506)(652)¥92,576$834,093
31,742
5,901(11,668)(37,274)(8,415)$814,380

2019

2018

2019

¥58,916
1,490(1,097)1,878(2,361)(600)¥58,226¥56,290
1,416
1,601
1,895
(2,018)(268)¥58,916$530,823
13,425(9,884)
16,920(21,272)(5,406)$524,606(3)	The funded status of the plans and the amounts
recognized in the consolidated balance sheet as of March
31, 2019 and 2018 for the defined benefit plans
Thousands of
U.S. dollars

Millions of yen

Funded retirement benefit
obligation
Plan assets

Retirement Benefits

Millions of yen

Thousands of
U.S. dollars

Millions of yen

Forward foreignexchange contracts

USD(2)	The changes in plan assets during the years ended March
31, 2019 and 2018

Unfunded retirement
benefit obligation
Estimated amount for
pension fund liquidation at
consolidated subsidiary
Net liability for retirement
benefits in the balance sheet
Net defined benefit liability
Net defined benefit asset
Net liability for retirement
benefits in the balance sheet

2019

2018

2019

¥56,529(58,226)¥(1,697)¥58,905(58,916)¥(10)$509,316(524,606)$(15,290)¥33,859¥33,671$305,064

−

(329)

−

¥32,162¥33,331$289,774¥34,621(2,459)¥35,779(2,448)$311,929(22,155)¥32,162¥33,331$289,774(4)	The components of retirement benefit expense for theyears ended March 31, 2019 and 2018
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial losses
Amortization of prior service cost
Retirement benefit expenses

Thousands of
U.S. dollars

2019

2018

2019

¥3,523655(1,490)366(105)¥2,950¥3,386848(1,416)466(89)¥3,195$31,742
5,901(13,425)
3,298
(946)
$26,579(5)	Remeasurements of defined benefit plans included inother comprehensive income (before tax effect) for theyears ended March 31, 2019 and 2018
Millions of yen

Prior service cost
Actuarial gains or losses
Total

Thousands of
U.S. dollars

2019

2018

2019

¥(105)
564
¥459

¥(89)
(1,260)¥(1,349)$(946)
5,082$4,13622

(6)	Remeasurements of defined benefit plans included inaccumulated other comprehensive income (before tax
effect) as of March 31, 2019 and 2018
Thousands of
U.S. dollars

Millions of yen

Unrecognized prior service cost
Unrecognized actuarial losses
Total

2019

2018

2019

¥138
981
¥1,119

¥243
416
¥660

$1,243
8,839$10,082(7) The plan assets(i)	The plan assets, by major category, as a percentage of
total plan assets as of March 31, 2019 and 2018
Bonds
Alternatives
StocksLife insurance company general accounts
Other
Total

2019

2018

35%
28%
26%
9%
2%
100%

36%
27%
25%
9%
3%
100%

The fifth new share acquisition rights
as share-reward type stock option
Date of resolution

June 26, 2012

Qualified beneficiaries

17 of the Company’s directors andcorporate officers

Type of shares for which new share 31,200 shares of Common sharesacquisition rights offered (Note 1)
Date of issuanceAugust 2, 2012

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From August 3, 2012 to August 2, 2042
The sixth new share acquisition rights
as share-reward type stock option
Date of resolution

June 27, 2013

Qualified beneficiaries

17 of the Company’s directors andcorporate officers

Type of shares for which new share 17,800 shares of Common sharesacquisition rights offered (Note 1)
Date of issuance

July 31, 2013

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From August 1, 2013 to July 31, 2043

Note: “Alternatives” are mainly investments in hedge funds and real estates.

(ii)	How to set the expected long-term rate of return onplan assets
	The Companies set the expected long-term rate of
return in consideration of target portfolio of plan assets,
expected long-term rate of return and past performance.
(8) The assumptions used in actuarial calculation
2019

2018

Discount rate
Mainly 0.5~1.2% Mainly 0.5~1.2%
Expected long term rate of return on plan assets Mainly 2.5%
Mainly 2.5%
Expected salary increase rate
Mainly 5.6%
Mainly 5.6%

3. Defined contribution plans	Amounts which consolidated subsidiaries contributed totheir defined contribution plans for the years ended March
31, 2019 and 2018 were ¥1,986 million ($17,894 thousand)and ¥1,909 million, respectively.

Stock Option Plans

The seventh new share acquisition rights
as share-reward type stock option
Date of resolution

June 27, 2014

Qualified beneficiaries

17 of the Company’s directors andcorporate officers

Type of shares for which new share 15,800 shares of Common sharesacquisition rights offered (Note 1)
Date of issuance

July 31, 2014

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From August 1, 2014 to July 31, 2044
The eighth new share acquisition rights
as share-reward type stock option
Date of resolution

July 13, 2015

Qualified beneficiaries

17 of the Company’s directors andcorporate officers

Type of shares for which new share 13,800 shares of Common sharesacquisition rights offered (Note 1)
Date of issuance

July 29, 2015

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From July 30, 2015 to July 29, 2045

The stock options outstanding as of March 31, 2019 are as
follows:
1.	The amount and the accounting classification of the stock
options existing for the year ended March 31, 2019
	Stock option-related expenses included in Selling, generaland administrative expenses for the years ended March 31,
2019 and 2018 were ¥49 million ($441 thousand) and ¥53
million, respectively.
2. The size of stock options and its circumstances(1) General information

The ninth new share acquisition rights
as share-reward type stock option
Date of resolution
Qualified beneficiaries

Type of shares for which new share 22,600 shares of Common sharesacquisition rights offered (Note 1)
Date of issuanceAugust 31, 2016

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From September 1, 2016 to August 31, 2046
The tenth new share acquisition rights
as share-reward type stock option

The fourth new share acquisition rights
as share-reward type stock option
Date of resolution

June 23, 2011

Date of resolution

June 28, 2017

Qualified beneficiaries

17 of the Company’s directors andcorporate officers

Qualified beneficiaries

18 of the Company’s directors andcorporate officers

Type of shares for which new share 25,600 shares of Common sharesacquisition rights offered (Note 1)
Date of issuanceAugust 2, 2011

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From August 3, 2011 to August 2, 2041

23

July 27, 201616 of the Company’s directors andcorporate officers

Type of shares for which new share 17,600 shares of Common sharesacquisition rights offered (Note 1)
Date of issuanceAugust 9, 2017

Condition of exercising(Note 2)

Vesting period

No conditional period required

Share acquisition rights exercise period From August 10, 2017 to August 9, 2047

The tenth new
The eleventh
share
new shareacquisitionacquisitionrightsrightsas share-reward as share-reward
type stock option type stock option

The eleventh new share acquisition rights
as share-reward type stock option
Date of resolution

June 26, 2018

Qualified beneficiaries

17 of the Company's directors andcorporate officers

Date of resolution

Type of shares for which new share 15,600 shares of Common sharesacquisition rights offered (Note 1)

June 28, 2017

June 26, 2018

Before vesting

Date of issuanceAugust 9, 2018

End of the preceding term−−

Condition of exercising(Note 2)

Offered

−15,600

Vesting period

No conditional period required

Cancelled−−

Vested

−15,600

Outstanding−−

Share acquisition rights exercise period From August 10, 2018 to August 9, 2048
Notes:1. The amount is converted into the number of shares.
2. Fixed term of the right is not given.
		Share acquisition rights may be exercised in a lump-sum within
expiration cycle and 10 days after a beneficiary resigns fromdirector or corporate officer.
3.	The Company carried out the share consolidation at a ratio of one
for every five common shares, effective on October 1, 2018.
Accordingly, common shares have been calculated assuming thatthe share consolidation was executed.

(2) The size of stock option and movement
	Addressed is the amount of stock options existing as ofMarch 31, 2019.
	As for the number of stock options, it is converted into thenumber of shares.
(shares)(i) The number of stock optionsThe fourth new The fifth new
The sixth new
share
share
share
acquisitionacquisitionacquisitionrightsrightsrightsas share-reward as share-reward as share-reward
type stock option type stock option type stock option
Date of resolution

June 23, 2011

June 26, 2012

June 27, 2013

End of the preceding term

−

−

−

Offered−−−Cancelled−−−

Vested−−−Outstanding

−

−

−

Before vesting

After vesting
End of the preceding term

17,600−−15,600Exercised

6,800

−

Cancelled−−

10,80015,600

VestedOutstanding

Note: The Company carried out the share consolidation at a ratio of one forevery five common shares, effective on October 1, 2018.
	Accordingly, common shares have been calculated assuming that theshare consolidation was executed.

(ii) Per share data
The fourth new The fifth new
The sixth new
share
share
share
acquisitionacquisitionacquisitionrightsrightsrightsas share-reward as share-reward as share-reward
type stock option type stock option type stock option
Date of resolution

June 23, 2011

June 26, 2012

June 27, 2013

Exercised price¥1($0.01)¥1($0.01)¥1($0.01)−−−¥1,580($14.24)¥1,455($13.11)¥2,750($24.78)

The average priceat the time of exercising
Fair value priceat the date of issuance

The seventh new The eighth new The ninth new
share
share
share
acquisitionacquisitionacquisitionrightsrightsrightsas share-reward as share-reward as share-reward
type stock option type stock option type stock option

After vesting
1,800

2,200

2,000

VestedEnd of the preceding term

−

−

−

Exercised−−−

Cancelled
Outstanding

−

−

−

1,800

2,200

2,000

The seventh new The eighth new The ninth new
share
share
share
acquisitionacquisitionacquisitionrightsrightsrightsas share-reward as share-reward as share-reward
type stock option type stock option type stock option
Date of resolution

June 27, 2014

July 13, 2015

July 27, 2016

Date of resolution

June 27, 2014

July 13, 2015

July 27, 2016

Exercised price¥1($0.01)¥1($0.01)¥1($0.01)¥3,334($30.04)¥3,330($30.00)¥3,328($29.98)¥3,335($30.05)¥3,010($27.12)¥2,015($18.15)

The average priceat the time of exercising
Fair value priceat the date of issuance

The tenth new
The eleventh
share
new shareacquisitionacquisitionrightsrightsas share-reward as share-reward
type stock option type stock option

Before vesting
End of the preceding term

−

−

−

Offered−−−Cancelled−−−

Vested−−−Outstanding

−

−

−

6,800

7,600

21,400After vesting
End of the preceding term
VestedExercised
Cancelled
Outstanding

−

−

−

1,800

3,200

9,600

−

−

−

5,000

4,400

11,800Date of resolution

June 28, 2017

June 26, 2018

Exercised price¥1($0.01)¥1($0.01)¥3,327($29.98)−¥3,025($27.25)¥3,195($28.79)

The average priceat the time of exercising
Fair value priceat the date of issuance

Note: The Company carried out the share consolidation at a ratio of one forevery five common shares, effective on October 1, 2018.
	Accordingly, fair value price have been calculated assuming that theshare consolidation was executed.

24

3. The evaluation of fair value of stock option
	The estimated method of official price about the date at
the eleventh new share acquisition rights as share-reward
type stock option granted in the current consolidated fiscal
year are as follows:(1)	The fair value of the stock option price is determined usinga Black–Scholes model.
(2) General information and the method of estimation
The eleventh new share acquisition rights
as share-reward type stock option
Stock market volatility (Note 1)
Estimated residual period (Note2)
Estimated dividends (Note 3)
Risk-free rate (Note 4)

26.5%
2.3 years¥8 ($0.07) per share(0.10%)

Notes:1.	The figure is calculated on a weekly basis based on the actual stock
prices for the period from the week of April 11, 2016, 2.3 years(expected remaining period) prior to the grant date to thepreceding week of grant date.
2.	T he calculation is based on the condition that the Company's
directors or corporate officers are resigned and the option was
exercised exactly after the day of resignation.
		For tenure of director and corporate officer, the Company has
calculated the average tenure remaining term at the date of grant
based on the average tenure.
3.	The estimated figure is based on the actual dividend amount for theyear ended March 31, 2018.
		The Company carried out the share consolidation at a ratio of one
for every five common shares, effective on October 1, 2018.
		Estimated dividends have been calculated assuming that the shareconsolidation was not executed.
4.	T he yield of government bond is in accordance with estimatedresidual period.

4.	The method of estimating the number of stock options
vested	Fundamentally, only the actual number of cancelled stock
options is shown as it is difficult to estimate the possible
number of cancelled stock options.

Income Taxes and Deferred Tax Assets andLiabilities
1.	Significant components of deferred tax assets and liabilities
for the years ended March 31, 2019 and 2018 are as follows:
Thousands of
U.S. dollars

Millions of yen

Deferred tax assets:
Elimination of consolidated
unrealized gains
Intangible assets
Provision for bonuses
Net defined benefit
liability
Tax loss carryforward(Note 2)
Other
Subtotal of deferred tax assets
Valuation allowance related to
Tax loss carryforward (Note 2)
Valuation allowance related
to total deductible
temporary difference, etc.
Subtotal of Valuation
allowance (Note 1)
Total deferred tax assets

2019

2018

2019

¥1,303
17,602
2,148¥1,62020,531
2,791$11,740
158,591
19,353

9,298

9,818

83,773

20,8683,256
54,47818,1662,922
55,851

188,017
29,336490,837(20,215)−(182,134)(11,609)−(104,595)(31,825)(32,483)(286,738)¥22,653¥23,368$204,099

Deferred tax liabilities:
Reserve for advanced
depreciation of noncurrent assets
Valuation difference on
available-for-salesecurities
Other
Total deferred tax liabilities

¥(22)

¥(22)

$(198)(793)(2,773)¥(3,589)(930)(2,140)¥(3,094)(7,145)(24,984)$(32,336)

Net deferred tax assets¥19,063¥20,274$171,754

Notes:1.	Decrease in Valuation allowance of ¥658 million ($5,928 thousand)mainly resulted from decrease in total deductible temporary
difference, etc. in spite of increase in Tax loss carryforward atconsolidated subsidiaries.
2.	Amounts of tax loss carryforward and related deferred tax assets
for the years ended March 31, 2019 are as follows:

Within1 yearTax losscarryforwards ¥353(*1)
Valuation(125)
allowance
Deferred tax
227
assets (*2)

25Millions of yen
2019
After 1 year After 2 years After 3 years After 4 years
withinwithinwithinwithin2 years
3 years
4 years
5 yearsMorethan
5 years

Total

¥89

¥30

¥85 ¥2,474 ¥17,836 ¥20,868

(89)

(30)

(85) (2,469) (17,414) (20,215)

−

−

−

5

421

653

Business Combinations

Thousands of U.S. dollars
2019
After 1 year After 2 years After 3 years After 4 years
Withinwithinwithinwithinwithin1 year
2 years
3 years
4 years
5 yearsMorethan
5 years

Total

Tax losscarryforwards $3,180 $802 $270 $766 $22,290 $160,699 $188,017(*1)
Valuation(1,126) (802) (270) (766) (22,245) (156,897) (182,134)
allowance
Deferred tax 2,045
−
−
−
45
3,793
5,883
assets (*2)
Notes:(*1)	Tax loss carryforwards are the amounts multiplied by theeffective statutory tax rate.
(*2)	Deferred tax assets of ¥653 million ($5,883 thousand) have beenrecorded for the tax loss carryforward of ¥20,868 million($188,017 thousand) (amount multiplied by the effective
statutory tax rate). The tax loss carryforward regarding thedeferred tax assets mainly resulted from loss before income taxesof ¥89,087 million in March 31, 2016. Additionally, deferred tax
assets of ¥653 million, a part of the tax loss carryforward of¥20,868 million (amount multiplied by the effective statutory tax
rate) at consolidated subsidiaries, was determined to be
recoverable as future taxable income is anticipated, andtherefore valuation allowance has been recognized.

2.	Significant factors in the difference between the statutory
tax rate and the effective tax rate
	The following table summarizes the difference between
the statutory tax rate and the effective tax rate for the years
ended March 31, 2019 and 2018.
2019

Statutory tax rate
Effect of :Different tax rates applied toconsolidated subsidiaries
Expenses permanently not deductiblefor income tax purposes
Income permanently not taxable forincome tax purpose
Corporation tax special credit for
research expenditures
Changes in valuation allowance
Amortization of goodwill of foreignsubsidiaries
Excess depreciation expense ofintangible fixed assets of foreignsubsidiaries
Undistributed retained earnings offoreign subsidiaries
Foreign tax credits
Tax system reform
Liquidation of consolidated
subsidiaries
Other, net
Effective tax rates

2018

30.6%

30.9%

(4.6)

(1.9)

1.4

0.5

(0.1)

(0.1)

(2.5)

(4.2)

(3.8)

1.5

2.9

2.9

4.2

3.5

1.5

0.1

(0.3)
−

(1.4)
(3.4)

−

(2.1)

2.3
31.6%

(7.0)
19.3%

Transaction under common control(Consolidation of Conex Business Systems, Inc. as a subsidiaryand business acquisition)
The Company has made Conex Business Systems, Inc.
(“Conex”) a consolidated subsidiary and acquired businessfrom Toshiba of Canada, Limited on October 1, 2018.
1.	Overview of becoming the consolidated subsidiary is asfollow:(1) Overview of the business combination(i) Name of the acquiree and business description		Name of the acquiree: Conex (Same parent company)
		Business description:	Sales of MFP and provision ofmaintenance service(ii) Date of business combination		
October 1, 2018(iii) Legal form of the business combination		Acquisition of voting rights due to conversion from theconditions of exercise of voting rights to commonshares(iv) Name of the company after the business combination		
No changes(v) Other matters concerning overview of the transaction		The Company owned 75.1% of the voting rights of theacquiree company which resulted from the conversionof our restricted shares (equivalent to 75.1% of thenumber of issued shares) to common shares.
(2) Overview of the accounting treatment
	This transaction is treated as a transaction under common
control in accordance with the “Revised AccountingStandard for Business Combinations (ASBJ Statement No.
21)” and the “Revised Guidance on Accounting Standard
for Business Combinations and Business Divestitures(ASBJ Guidance No. 10)” .
2.	Overview of the acquisition of treasury share by Conex isas follow:(1) Overview of the business combination(i) Name of the acquiree and business description		Name of the acquiree:	Conex (the Company’s
consolidated subsidiary)		Business description:	Sales of MFP and provision ofmaintenance service(ii) Date of the business combination		
October 1, 2018(iii) Legal form of the business combination		Acquisition of treasury share by Conex(iv) Name of the company after the business combination
		The company’s name was changed from Conex to
TOSHIBA TEC CANADA BUSINESS SOLUTIONS INC.
(v) Other matters concerning overview of the transaction		The Company owned 100% of the voting ratio toConex because Conex acquired treasury shares which
owned by Toshiba of Canada, Limited(equivalent to24.9% of the number of issued shares).
(2) Overview of the accounting treatment
	This transaction is treated as a transaction under common
control in accordance with the “Revised AccountingStandard for Business Combinations (ASBJ Statement No.
21)” and the “Revised Guidance on Accounting Standard
for Business Combinations and Business Divestitures(ASBJ Guidance No. 10)” .

26

(3)	Matters concerning the acquisition of treasury share by
Conex
	The acquisition cost of the acquiree and breakdown by
type of consideration
Millions of yen

Consideration for
the acquisition
Cost of acquisition

Cash and cash
equivalents

Thousands of
U.S. dollars

Information of asset retirement obligations was omitted as its
amount is immaterial.

¥434$3,910

Segment Information, etc.

¥434

$3,910(Segment information)(4)	Matters concerning the acquisition of treasury share by
Conex(i) Change regarding capital surplus
		Increase in equity due to additional acquisition of
voting rights for a consolidated subsidiary(ii)	The decrease in capital surplus regarding transactionof non-controlling interests
		
181 Million of yen ($1,631 thousand)
3. Business acquisition(1) Overview of the business combination(i)	Name of the parties to the business combination andbusiness description
		(a) The acquirer		
Name of the acquirer:	T O S H I B A T E C C A N A D A
BUSINESS SOLUTIONS INC.
		Business description:	Sales of MFP and provisionof maintenance service
		(b) The acquiree		Name of the acquiree:	Toshiba of Canada, Limited(Same parent company)
		Business description:	Sales of MFP and provisionof maintenance service(ii) Date of the business combination		
October 1, 2018(iii) Legal form of the business combination
		Business acquisition(iv) Name of the company after the business combination
		No changes(v) Other matters concerning overview of the transaction		The Company controls the operation of Printing
Solutions Business in Canada for the purpose ofstrengthening the operation regarding business policy
and strategy, and control directly in this region.
(2) Overview of the accounting treatment
	This transaction is treated as a transaction under common
control in accordance with the “Revised AccountingStandard for Business Combinations (ASBJ Statement No.
21)” and the “Revised Guidance on Accounting Standard
for Business Combinations and Business Divestitures(ASBJ Guidance No. 10)” .

27

Asset Retirement Obligations

1. Summary of reportable segments	T h e re p o r ta b l e s eg m e n ts o f t h e C o m pa n i e s a recomponents of an entity for which discrete financial
information is available and regularly reviewed by the
Board of Directors for the purpose of making decisions
about resources to be allocated to the segments andassess the segments’ performance.
	The Companies report on “Retail Solutions BusinessGroup” and “Printing Solutions Business Group” asreportable segments.
	“Retail Solutions Business Group” is engaged indevelopment, manufacturing, sales, maintenance services,
etc. of POS Systems for domestic and overseas market,
MFPs for domestic market, Auto ID systems and related
products for domestic market.
	“Printing Solutions Business Group” is engaged indevelopment, manufacturing, sales, maintenance services,
etc. of MFPs and Auto ID systems for overseas market,
Inkjet printheads for domestic and overseas market andthose related products.
2.	The calculation method for amounts of sales, profit or loss,
assets and other items per reportable segments
	The accounting policies of the segments are substantiallythe same as those described in Significant matters forming
the basis of preparing the consolidated financial
statements.
	Intersegment sales and transfers are calculated at theprevailing market prices.

3.	Information concerning sales, profit or loss, assets andother items by reportable segment is as follows:
Millions of yen

2019

2018

2. Information by geographical area
Millions of yen

Thousands of
U.S. dollars

2019

Thousands of
U.S. dollars

2019

2018

2019

Net SalesJapan
The Americas
EuropeAsia and others
Total¥187,151
143,361
96,32949,982¥476,824¥217,770
146,675
100,493
48,350¥513,289$1,686,197
1,291,657
867,907450,329$4,296,099

Property, plant and equipmentJapan
The Americas
EuropeAsia and others
Total¥11,271
4,922
8,450
3,646
¥28,290¥12,168
3,393
8,642
3,885
¥28,090$101,550
44,346
76,13332,850$254,888

Net Sales
Retail Solutions Business Group
Unaffiliated customers
Intersegment
Total
Printing Solutions Business Group
Unaffiliated customers
Intersegment
Total
Adjustments
Consolidated¥292,180
122
292,303¥324,411
88
324,499$2,632,489
1,099
2,633,598

184,6448,305
192,949(8,428)¥476,824

188,878
11,093
199,971(11,181)¥513,289

1,663,609
74,827
1,738,436(75,935)$4,296,099

Segment Profit
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥12,323
5,666¥17,989¥17,255
7,291¥24,546$111,028
51,050$162,078

Segment Assets
Retail Solutions Business Group
Printing Solutions Business Group
Adjustments
Consolidated¥125,992
120,126
28,937¥275,055¥131,773
117,621
33,235¥282,630$1,135,165
1,082,314
260,717$2,478,196

Depreciation
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥3,552
9,139¥12,692¥3,452
8,374¥11,826$32,00382,341$114,353

Criteria of geographical segmentation and the name ofcountries or areas mainly included in each segment except forJapan are as follows:(1) Criteria: geographical closeness(2) Countries & Areas(i)	The Americas	U.S.A., Canada, Mexico, Brazil, Chile(ii)	Europe	U. K . , Fra n ce , G e r m a n y, S pa i n ,Switzerland, Belgium, Italy,
Netherlands, Sweden, Finland,
Poland(iii)	Asia and others	Singapore, Malaysia, Indonesia,
China, Australia, Korea, Thailand

Amortization of goodwill
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated

¥−
1,615
¥1,615¥−2,210¥2,210$−14,551$14,551

3. Information by major customer
	Information by major customer is omitted since no single
customer accounted for more than 10% of net sales for theyears ended March 31, 2019 and 2018.

Capital Expenditures
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥3,903
10,234¥14,137¥3,802
10,380¥14,183$35,165
92,207$127,372

Notes:1.	Adjustments of segment assets are corporate assets, and consist of
cash and cash equivalents and investment securities in the amountof ¥28,937 million ($260,717 thousand) and ¥33,235 million as ofMarch 31, 2019 and 2018, respectively.
2.	Segment profit corresponds to operating profit of Consolidated
Statement of Income.

(Related information)(Information about impairment loss on non-current
assets by reportable segment)
Year ended March 31, 2019
Not applicableYear ended March 31, 2018
Not applicable(Information on amortization of goodwill andunamortized balance by reportable segment)

1. Products and service information

Millions of yen

Millions of yen

Net sales of Retail
Net sales of MFP
Total

Thousands of
U.S. dollars

2019

2018

2019

¥289,185
187,639¥476,824¥320,119
193,170¥513,289$2,605,505
1,690,594$4,296,099*Retail: POS systems, Auto ID systems and related products, etc.
*MFP: Multi Function Peripherals that realize facsimiles, office printers,
multi-function peripheral devices, scanner function and document
management with one machine.

2019

2018

Balance at endof period

Retail Solutions Business Group
Printing Solutions Business Group
Consolidated

¥−
3,691
¥3,691¥−
4,083¥4,083Thousands of
U.S. dollars

2019
Balance at endof period$−
33,255$33,255

For the amount of amortization of goodwill, it is omitted as it
is disclosed in “Segment Information”.

28

(Information on negative goodwill by reportablesegment)
Year ended March 31, 2019
Not applicable

Net assets per share
Profit per share
Profit per share fully diluted(Information about related parties)
1. Transactions with related parties(1) Transactions between the Company and related parties(i) Parent company and major shareholder of the Company
Year ended March 31, 2019(¥=Million, US$=Thousand)CapitalBusiness

Percentage ofvoting rights held(%)

StatusName

Address

Parentcompany

Toshiba
Corporation

Minato-ku,
Tokyo

Energy systems,social infrastructure Direct: 52.6%¥200,044
systems and($1,802,361)
Indirect: 0.1%
electronic devices

BusinessrelationshipTransaction

Transaction
amountClassification

Balance at
fiscal year end

Deposits of
funds¥9,649($86,936)

Receipt ofinterests¥55($496)

Groupdeposits paid

¥9,996($90,062)

Year ended March 31, 2018(¥=Million)
StatusName

Address

CapitalParentcompany

Toshiba
Corporation

Minato-ku,
Tokyo¥499,999

BusinessrelationshipTransaction

Transaction
amountClassification

Balance at
fiscal year end

Deposits offunds¥7,297

Receipt ofinterests

Groupdeposits paid

−

¥227

Deposits offunds andConcurrent
position as
directors

Business

Percentage ofvoting rights held(%)

Energy systems,social infrastructure Direct: 52.7%
systems andIndirect: 0.1%
electronic devices

Note: T ransaction Terms and Policies for Determining Transaction Terms, etc.
	Concerning deposits of funds, it’s difficult to figure out transaction
amount because fund settlement is performed whenever needed.
	Therefore, only the average balance during the period is stated.
	On the other hand, the Company receives presentation of interest
from the parties and decides taking into account mainly prevailingrate of market.

(2)	Transactions between the Company’s consolidated
subsidiaries and related parties
Year ended March 31, 2019
Not applicableYear ended March 31, 2018
Not applicable
2.	Notes to parent company or important affiliated companies(1) Information about parent company
	Toshiba Corporation (listed on the Tokyo Stock Exchange
and the Nagoya Stock Exchange)29

Per share information at March 31, 2019 and 2018 is as follows:
Yen

Year ended March 31, 2018
Not applicable

Deposits offunds andConcurrent
position as
directors

Per Share Information
U.S. dollars

2019

2018

¥1,653.94
204.00203.72¥1,501.94
318.73318.382019$14.901.84
1.84

Notes:1.	The Company carried out the share consolidation at a ratio of one
for every five common shares, effective on October 1, 2018.
Accordingly, the figures for net assets per share, profit per shareand profit per share fully diluted have been calculated assumingthat the share consolidation was executed at the beginning of theprevious fiscal year.
2.	Profit per share and profit per share fully diluted were calculatedon the basis of the following data.
Thousands of
U.S. dollars

Millions of yen

Profit per share
Profit attributable toowners of parent
Amounts not attributable
to common shares
Profit attributable toshareholders of parent
related to common shares
Average number of sharesof common shares
during the period(thousand shares)
Profit per share fully diluted
Adjustment to profit
Increase in number ofcommon shares(thousand shares)
Share acquisition rights
included in the increase in
number of commonshares (thousand shares)
Outline of the residual
securities excluded fromthe calculation of profit per
share fully diluted because
they have no dilutive effects

2019

2018

2019

¥11,211¥17,512$101,009−−−

11,211

17,512

101,00954,95454,943

−

−

74

61

74

61

−

−

−

Supplemental Schedules to the Consolidated
Financial Statements
Supplemental schedule of bonds
Not applicable

Supplemental schedule of borrowings(¥=Million, US$=Thousand)Classification

BeginningbalanceEndingbalance

Averageinterest rate Payment due(%)

Short-term loans
payable¥304($2,739)¥383($3,451)

2.0−

Lease obligations
due within one
year¥4,795($43,202)¥4,054($36,526)−−

Lease obligations
due after one year

¥5,682($51,194)¥10,782($97,144)¥4,747($42,770)¥9,184($82,746)−

From 2021
to 2024

−

−

Total

Notes:1.	“The average interest rate” represents the weighted-average rateapplicable to the ending balance of loans payable.
2.	The average interest rates of lease obligations are omitted as leaseobligations amount on the consolidated balance sheet is before
deducting the portion of interest equivalent amount.
3.	Payment schedule of lease obligations due after one year after the
consolidated balance sheet as of March 31, 2019 is as follows:
Millions of yen
2019
After 1 year After 2 years After 3 years After 4 years
within 2 years within 3 years within 4 years within 5 years

Lease obligations¥2,720¥1,302¥579¥144

Thousands of U.S. dollars
2019
After 1 year After 2 years After 3 years After 4 years
within 2 years within 3 years within 4 years within 5 years

Lease obligations$24,507$11,731$5,217$1,297S u p p l e m e n ta l s c h e d u l e of a s s et ret i re m e n t
obligations

The information was omitted as the amounts of asset
retirement obligations as of the beginning and end of the fiscal
year ended March 31, 2019 were less than or equal to ahundredth of the total of liabilities and net assets as of the
beginning and end of the fiscal year ended March 31, 2019.

30

(2) Other

Quarterly information of the fiscal year ended March 31, 2019
(Millions of yen)
(Cumulative period)

Three months

Six months

Nine months

Fiscal year

¥114,404¥236,071¥354,417¥476,824

Profit before income taxes

3,355

6,403

12,88916,679Profit attributable to owners of parent

1,608

4,307

9,168

11,211

Profit per share (Yen)

29.27

78.38

166.84204.00Net sales(Thousands of U.S. dollars)(Cumulative period)

Three months

Six months

Nine months

Fiscal year

$1,030,760$2,126,957$3,193,234$4,296,099

Profit before income taxes

30,22857,690116,128

150,275

Profit attributable to owners of parent

14,48838,80582,602

101,009

0.26

0.71

1.50

1.84

Net sales

Profit per share (U.S. dollars)(Yen)(Accounting period)
Profit per shareFirst quarter¥29.27

Second quarter¥49.10Third quarter¥88.45

Fourth quarter¥37.15(U.S. dollars)(Accounting period)
Profit per shareFirst quarter$0.26

Second quarter$0.44

Third quarter$0.80

Fourth quarter$0.33

 he Company carried out the share consolidation at a ratio of one for every five common shares, effective on October 1, 2018.
Note: T
Accordingly, the figures for profit per share have been calculated assuming that the share consolidation was executed at the
beginning of the fiscal year.

31

32

33

Corporate Data
1-11-1, Osaki, Shinagawa-ku, Tokyo 141-8562, Japan
Tel: +81-3-6830-9100
Fax: +81-3-6684-4001
http://www.toshibatec.com
Established: February 21, 1950
Employees: 3,660 <Consolidated: 19,980> (as of March 31, 2019)
Common Stock: ¥39,970 million (as of March 31, 2019)
Stock Listing: Tokyo Stock Exchange (1st Section)

Board of Directors and Audit & Supervisory Board (as of June 28, 2019)
President and Chief Executive Officer◊Takayuki Ikeda
Directors

Yukio Inoue
Masami Uchiyama
Masahiro Yamada
Hitoshi Kaneda
Naohiro Yamaguchi
Junichi Takei
Ayumi Wada
Michio Kuwahara
Shin Nagase◊:Representative Director
Audit & Supervisory Board Members

Yoshinari Sato
Michio Suzuki
Hideo Tabuchi
Kyoko Okumiya

This report is printed on paper certified by the Forest Stewardship Council (FSC)with “non-VOC ink,” 100% vegetable ink for “waterless printing.”