“Tokyo Boeki Group
Federated Management”
Toward New Growth

Active all over the world.

TOKYO BOEKI GROUP
Annual Report
April 1, 2017 – March 31, 2018

Active all over the world.
Carrying on the “Three founding spirits (TOMAS spirit)” and “Management philosophy and Mission”
of the Tokyo Boeki Group, we are promoting “Tokyo Boeki Group Federated Management”
as an independent, business-creating corporate group.

Three founding spirits = TOMAS spirit

Management philosophy and Mission

1. Mindset to overcome any obstacle and tonever reduce our efforts
2. Mindset of a pioneer
3. Mindset of management among all employees

Each company of the Tokyo Boeki Group aims to be acompany that allows employees to realize their dreams
through their work. Employees will take pride in themselves and contribute to the global company.

Generating synergistic effects“Tokyo Boeki Group Federated Management”
Energy Machinery Industry Group
ENERGYHTOKYO BOEKI MACHINERY LTD.
TOKYO BOEKI ENGINEERING, LTD.
TOKYO BOEKI MECHANICS LTD.

HEADQUARTERS
Tokyo Boeki Holdings Corporation

Technology, Automobiles and Information Industry GroupTOKYO BOEKI TECHNO-SYSTEM LTD.
T.B. TECH CO., LTD.
TECHNOLOGY TOKYO BOEKI NORTH AMERICA, INC.
TBTS (THAILAND) CO., LTD.
TTS (GUANGZHOU) CO., LTD.

Medical, Life and Science Industry GroupSCIENCETB-eye Ltd.
TOKYO BOEKI MEDISYS INC.
TOKYO BOEKI (RUS) LTD.

Materials, Resource and Metal Industry GroupRESOURCE

1TOKYO BOEKI GROUPTOKYO BOEKI MATERIALS LTD.
TOKYO BOEKI (AUSTRALIA) PTY. LTD.
TOKYO BOEKI (CHINA) LTD.

TO OUR SHAREHOLDERSNet Sales

44,900

million yen(Up 5.8% year-on-year)

Operating
Income3,970 million yen

Ordinary
Income4,162 million yen

Net Income
Attributable to
Owners of Parent

2,812 million yen(Up 8.8% year-on-year)(Up 5.0% year-on-year)(Up 39.2% year-on-year)

Director,
President & CEO

I hope that all of our shareholders are doing well and I would like to express my appreciation for your loyal support. I would like to take thisopportunity to deliver our company’s 98th term annual report (April 1,2017 -March 31, 2018), as well as to give a brief message regarding
the status of our company.
In fiscal year 2017, the global economy continued to grow at a gradual pace overall, amid heightened uncertainty over the future due tofactors such as increasing political and geopolitical risk and changes
to global trade frameworks. The United States economy remained
steady overall, due to factors such as sustained growth of consumer
spending buoyed by improved employment, and improved corporate
performance in a wide range of industries. The European economy expanded gradually overall, despite some disparity between countries in
the pace of economic recovery. The Chinese economy was stable as awhole, supported by strong foreign and domestic demand, and especially by strong exports.
The Japanese economy continued its gradual recovery. There were
improvements in the employment and income environments whichwere driven by a steady corporate performance owing to increased exports and capital investment, despite risks such as political turmoil in
the United States and Europe, and increasing tension with North Korea.
Amidst the business environment in Japan and overseas, the Tokyo
Boeki Group, having marked the 70th anniversary, strove to maximize
corporate value and realize sustainable growth and development
through the provision of specialized proprietary businesses and services with consistently high standards in areas ranging from marketing
to manufacturing, sales and maintenance for our four groups of “Energy
Machinery Industry,” “Technology, Automobiles and Information Industry,” “Medical, Life and Science Industry,” and “Materials, Resourceand Metal Industry.”
As a result of these efforts, revenues and profits for fiscal year 2017
increased year on year, and ordinary income reached our highest level
ever. Net sales were 44,900 million yen (up 5.8% from the previous fiscal year), ordinary income was 4,162 million yen (up 5.0% from the previous fiscal year), and net income attributable to owners of parent
amounted to 2,812 million yen (up 39.2% from the previous fiscal year).
We distributed a year-end dividend of 30 yen per stock, because
while we retain an internal reserve for active investment in existing andnew businesses, our basic stance is to distribute a continuous and stable dividend to our shareholders.
I would like to ask for your continued support and guidance.
June 2018

Sanshiro
Katoh
TOKYO BOEKI GROUP

2

SEGMENT INFORMATION (Percentage represents ratio of sales)
Business Description

29%

Energy Machinery Industry GroupThe Energy Machinery Industry Group is engaged in development, manufacturing, and sales of fluid loading equipment and related devices, various kinds ofgas-related machinery, power generation-related devices and equipment, environment-related devices and others for energy-related industries including
electric power, gas, oil, and petrochemistry. For fluid loading machinery, thecore product, superior products are offered to users around the world under
the integrated system of manufacturing and sales of TOKYO BOEKI MACHINERY LTD. and TOKYO BOEKI ENGINEERING, LTD., which have gained a highreputation.

Business Condition

Sales

12,907 million yen 105% year-on-year
1,662 million yen 82% year-on-year

In the core loading arm business, although maintenance orders made up forthe decrease in sales for new construction in Japan, new orders overseas weresluggish due to intensified competition. Revenues increased and profits decreased for the Group as a result of forward investment in such new-businessinitiatives as hydrogen, adsorption chillers, and the Hydrocurrent™ Organic
Rankine Cycle (ORC) 125 EJW shipboard heat recovery system.

Operating
Income15%

Technology, Automobiles andInformation Industry Group

Business Description
3D measurement instruments, the core product, provide integrated measurement and data processing for a series of processes, from development andmodeling to manufacturing, testing and completion, for a variety of products,
mainly contributing to automobile manufacturers in improvements of productdevelopment capabilities. 3D measurement instruments have evolved to become automated, refined and diversified, and have gained a global reputation.

Business Condition

6,925 million yen 99% year-on-year
Operating
538 million yen 94% year-on-year
IncomeSales

3

TOKYO BOEKI GROUP

Automobile-related companies, the Group’s main customers, have an increasing investment burden in new technologies such as electric and self-driving
vehicle technology, resulting in an ongoing difficult situation of restrained investment in our core 3D measurement-related instruments. We have responded
by launching a series of new 3D measurement-related instrument products, aswell as by strengthening our sales of model milling machines and cultivating
markets for them overseas. Although improvements were seen from these measures in the latter half of the fiscal year, revenues and profits decreased for theGroup.

Medical, Life and Science
Industry Group

35%

Business Description
The Medical, Life and Science Industry Group is engaged in the development,
manufacturing and sales of a wide range of products, including security devices, medical devices and scientific instruments. In particular, the security
system business provides security equipment, mainly surveillance cameras
from overseas, to the domestic market under rigorous quality control, alongwith a full line of services ranging from onsite surveys to system design, proposals and estimates, construction, and repairs and maintenance. In addition,compact automated analyzers for use in clinical examinations are sold in about
80 countries around the world and boast an outstanding track record in the
medical device field.

Business Condition

Sales

15,554 million yen 109% year-on-year
2,685 million yen 136% year-on-year

Operating
Income21%

Materials, Resource andMetal Industry GroupThe core security systems business saw favorable growth in both sales and profits
through a commitment to offering a full line of services ranging from system proposals to design, installation and after-sales services based on the TB-EYE brand,
in response to increasingly sophisticated and diverse market needs.
The medical-related field had steady domestic sales, including clinical examination information systems for related products, centered on the latest models ofcompact automated analyzers for use in clinical examinations. Russia and CIS-related business performance recovered through expanded sales of products suchas industrial machinery. As a result, revenues and profits of the Group increased.

Business Description
Under a unique business model, raw materials and auxiliary raw materials
for steel-making and refractory bricks are imported and supplied for use insteel-making to the steel industries. In addition, various kinds of steel materials including steel plates for use in automobiles are indispensable materials foroverseas automobile manufacturers. Refractory bricks for use in steel-making
are manufactured by a joint venture business in China, and are an important
import product for the Group.

Business Condition

9,510 million yen 108% year-on-year
Operating
190 million yen 70% year-on-year
IncomeIn the core materials business, tightening of supply and demand for refractoryraw materials in China led to an increase in prices, and sales increased. In thesteel business, volume handled and sales both grew through such as factors
increased handling of steel for construction for Southeast Asia. Meanwhile,revenues of the Group increased and profits decreased due to the effect ofwithdrawal from local business in Australia, and sluggish imports of rockphosphate in the resource business.

Sales

TOKYO BOEKI GROUP

4

CLOSE-UP (1)Tokyo Boeki Group Held Ceremony and Celebration to Commemorate the 70th Anniversary

On October 30, 2017, Tokyo Boeki Group marked the 70th anniversary. To commemorate the event, we held a ceremony and celebration
at Palace Hotel Tokyo on November 10, with the theme “Gratitude and a Great Leap Forward.” Approximately 800 people attended, including invited company alumni and Group employees.
Receiving strong forward-looking messages from the Group Supreme Advisor and President & CEO of Tokyo Boeki Holdings Corporation, and the President of each Group, every employee and the Group as a whole have united in a pledge to take a great leap forward.
* Because this was an internal Group event, attendants were employees and invited company alumni only.

Message from Group Supreme Advisor, Tokyo Boeki Holdings Corporation
As we mark our 70th anniversary, I would like to express my heartfelt gratitude to all of our employees
for their tireless efforts to date. The fact that we are able to commemorate our 70th anniversary with thissplendid ceremony is thanks to our current and past employees’ bold challenge to overcome difficulties
and company crises. If I were to sum up my feelings at this point with a single word, it would be “gratitude.”No other words suffice. I would like to take this opportunity to express my thanks, and my prayers for the
Tokyo Boeki Holdings Corporation
Director,
Group Supreme Advisor Hiroshi Machidahealth of our employees and their families, and that under the leadership of President and CEO Sanshiro
Katoh, we continue to grow as we aim for our 100th anniversary.

Message from President and Chief Executive Officer, Tokyo Boeki Holdings Corporation
The Tokyo Boeki Group must continue to grow as we aim for our 100th anniversary. Management with mutual respect
is vital for achieving this goal. I believe that mutual respect not only between Tokyo Boeki Holdings Corporation and
our Group companies, but also between management and employees, will foster the growth of the Group as a whole.
I would like to express my gratitude for the efforts of our founder, Yasuo Matsumiya, who led the Tokyo Boeki
Group for 40 years, Group Supreme Advisor Hiroshi Machida, who led the Group for the subsequent 30 years, and all
Tokyo Boeki Holdings Corporation
Director,
President & CEO Sanshiro Katoh

5

TOKYO BOEKI GROUP

of our predecessors and Group employees. I pledge to endeavor to take a great leap forward to our 100th anniversary
and overcome difficulties under a philosophy of mutual respect.

CLOSE-UP (2)Full Scale Launch of Hydrogen Business!

OxygenSimplified flowchart of Simple Fuel
HydrogenFirst Adoption of Hydrogen Generation and Filling Appliance “Simple Fuel”

Compression

TOKYO BOEKI MECHANICS LTD.

Filling

Hydrogen

Water
Accumulator
Electrolytic hydrogengenerator

Diaphragm
compressor*Simple Fuel:
A simple hydrogen generation and filling appliance developed in the United States that supplies
hydrogen to fuel-cell forklifts. This appliance combines the functions of an ordinary hydrogenstation—hydrogen manufacture, compression, accumulation, and filling—into a single compact
unit. It supplies hydrogen that is CO2-free at all stages from manufacture onward, using electricity
derived from clean and renewable energy. This was the first unit to be introduced in Japan.

TOKYO BOEKI MECHANICS LTD. (“TMX”) introduced the hydrogen generation and filling appliance “Simple Fuel” for use in fuel-cell forklifts at the
Kesen Precut Business Cooperative in Kesen County, Iwate Prefecture. This
was the first such introduction for the forestry and lumber industry in Japan.
This project is part of the “Project to Promote a Hydrogen Society
Using Renewable Energy, etc.” under the Ministry of the Environment ofJapan. This revolutionary project has zero impact on the environment,
including zero carbon dioxide emissions, by obtaining the electricity togenerate the hydrogen from natural energy, as well as by using spring water. TMX introduced photovoltaic panels and electrical supply equipment
as well as Simple Fuel.

TMX operates an energy business centered on LP gas. As part of thisbusiness, it launched a hydrogen energy business initiative 10 years ago
as a new business, and since then it has advanced the development ofhydrogen generation appliances for introduction at hydrogen stations.
While encountering numerous difficulties, it focused on the design anddevelopment of Japanese specifications for Simple Fuel in collaboration
with a US company, and has now finally achieved its first introduction
with the evaluation and support of the Ministry of the Environment.
TMX will continue to contribute to the realization of a low-carbon
society through its clean and environmentally friendly hydrogen energy
business.
TOKYO BOEKI GROUP

6

CLOSE-UP (3)Introduction of Group Companies
Medical, Life and Science Industry GroupTB-eye Ltd.
As a manufacturing and trading company, TB-eye Ltd.
contributes to the safety and security of society through the
Security System Business and Digital Intercom Business

Basic Facts

Established
Head Office
Location

October 12, 1995
KYOBASHI EDOGRAND, 2-2-1 Kyobashi, Chuo-ku, Tokyo
Tokyo Head Office, Technical Center and other 20 branches(*Opened Nishitokyo Branch Office in June 2018)
Representative
Sanshiro Katoh, Chairman
Wonyong Kim, President
Capital Stock
100 million yen
Number of Employees 196 (As of March 31, 2018)

Since its establishment in 1995, TB-eye Ltd. (“TBE”) has been focusing on the security system business, while actively committing to new businesses such as
the digital intercom.
TBE calls itself a “manufacturing and trading company” due to its characteristic. TBE, with its technical strength, creates new products reflecting market
demands and takes responsibility for product quality from the standpoint of a manufacturer. TBE has been the customers’ choice for its strength in offering
speedy solutions to various needs through a full line of services, from onsite surveys, proposals, designing, installation and up to after-sales (“Total Service”).
In 2016, TBE has launched “TB-EYE” brand surveillance cameras, and is improving product quality further and strengthening its support for a wide varietyof customer needs.
Security System BusinessA rich product lineup
enabling Total Service“TB-EYE” brand products

Digital Intercom Business“Clear Talk Com” enables simultaneous two-way
dialog with clear soundThis year, TBE will also launch “AI solutions” in its security system business.
TBE adds AI technology to its rich product lineup and onsite capabilities cultivated over many years, such as equipment installation and configuration, andwill contribute to the safety and security of society by providing solutions to customers’ issues that could not be solved by traditional surveillance cameras.

About AI Solutions
Applying various functions of AI technology to image from surveillance cameras makes it possible to solve issues in a wide range of scenarios.
For examples;
Functions
Face recognition:
Detect previously registered individuals
Alarm detection:
Detect intruders, specified objects, etc.
Smart search:
Simple keyword search
License plate recognition: Detects cars with previously registered plate numbers

7

TOKYO BOEKI GROUP

Sample Solutions
Detect people on blacklists or VIP lists
Detect intruders in prohibited areas
Detect specific conditions, such as “person wearing red clothing”
Identify blacklisted or VIP cars

GROUP TOPICS
Domestic GroupTOKYO BOEKI MACHINERY LTD.

Opened Singapore Branch
On October 2, 2017, the TOKYO BOEKI MACHINERY LTD. SINGAPORE BRANCH was opened.
Singapore is a small country, covering an area about equal to the 23 wards of Tokyo, but it continues to grow as an international city located in the center of Southeast Asia. Many of the Company’s customers have oil and gas terminals in Singapore, andrecently the Company’s Japanese electric power and gas customers have expanded to Singapore. It has become an important
relay point concentrating people, finance, logistics, and information.
We are deeply aware of the significance of advancing into such a place, and are committed to becoming a branch that acts asa sales base for loading arms marketed outside Japan and that collaborates with other divisions of our group companies as
well.

Exterior view of office building

Energy Machinery Industry Group

Domestic GroupTOKYO BOEKI MACHINERY LTD.

Exhibit at HVAC&R Philippines 2018
HVAC&R Philippines 2018 was held in Manila of the Philippines over a 4-day period starting January 6, 2018. The Company
exhibited adsorption chillers at the event. HVAC&R Philippines is the country’s largest exhibition for the heating and coolingbusiness, showcasing energy conversion, energy generation and energy management technologies. Since the Philippines
has the highest electric power rates of any ASEAN country, there are great benefits to adopting such adsorption chillers. The
venue had a wide range of visitors, including users from the food industry with awareness of energy conversion, air-conditioning engineers, consultants, government officials, and developers.
On February 1-2, 2018, Kawasaki International Eco-Tech Fair 2018 was held at Todoroki Arena in Kawasaki City. The Company also exhibited its adsorption chillers there. This fair featured not only product exhibitions, but also provided a site forbusiness matching among exhibitors, and we were able to attract the interest of many companies in the wide range of business operations and international business expertise of the Tokyo Boeki Group.
HVAC&R Philippines 2018 exhibition booth*Adsorption chiller:
A chiller device that produces chilled water from low-temperature waste heat from factory and other facilities, by using silica gel as the adsorbent and water as the refrigerant. It enables the use of efficient and clean energy because
it is highly energy-efficient, and the medium used for adsorption/desorption has low environmental impact.

Domestic GroupTOKYO BOEKI ENGINEERING, LTD.

Groundbreaking ceremony for New Office Building at Nagaoka WorksOn March 13, 2018, the Company duly held a groundbreaking ceremony for a new office building at Nagaoka Works.
The new office building is a multi-purpose office with both administrative and health and welfare functions. After completion,
it is expected to improve employee satisfaction and customer support.
Construction is scheduled to be finished in end-October 2018, and all current operations are scheduled to be completelytransferred to the new building by the end of December.
Commemorative photo of groundbreaking ceremony

TOKYO BOEKI GROUP

8

Energy Machinery Industry Group

Domestic Group

Exhibit at 14th International Hydrogen & Fuel Cell Expo (FC EXPO 2018)
and others
The 14th International Hydrogen & Fuel Cell Expo (FC EXPO 2018) was held at Tokyo Big Sight from February 28 toMarch 2, 2018. The Company exhibited Simple Fuel and a 3 stage diaphragm compressor for hydrogen.
This is the world’s largest hydrogen and fuel cell exhibition, and the venue was thronged with visitors from not only
Japan, but also around the world, including Europe, the United States, and Asia. The heightened global need for ahydrogen society gave a sense of the potential of the Company’s products.
Then on November 14, 2017, the Hydrogen Glocal EXPO in Tokushima was held at ACTY Tokushima, and the Company also exhibited Simple Fuel there. Tokushima Prefecture is aiming to create a hydrogen society in an advanced andactive manner, including formulating the Tokushima Prefecture Hydrogen Grid Concept. On the day of the expo, theexhibition venue bustled with many visitors from both inside and outside the prefecture, and the exhibition closed ingreat success.
Domestic Group

Technology, Automobiles and Information Industry Group
9TOKYO BOEKI MECHANICS LTD.

Exhibition booth at 14th International Hydrogen and Fuel Cell ExpoTOKYO BOEKI TECHNO-SYSTEM LTD.

Launch and delivery of new products (“Laymatic MILL-X” and “V7”)In March 2018, the Company delivered the first new model of its milling machine “Laymatic MILL-X” to a major automobile manufacturer. It is highly rated for its speed, power and performance, and the Company is aiming to further
expand sales.
Additionally, as for 3D measurement instrument “Vectoron” which is one of the key products, the new model “V7”was delivered to a major automobile manufacturer in March prior to its product launch on April 11, 2018. The Company will endeavor to fully expand sales going forward.
Laymatic MILL-X

V7

Domestic Group

T.B. TECH CO., LTD.

Launch of self-developed software package
From this fiscal year, the Company started to launch full-scale sales of its self-developed software package, which
has been a focus of development for the purpose of building a new core industry. This package provides the facility
maintenance system, inventory management system, production management system and other systems offered by
the Company at a low cost and with a simple design, which can be customized for any type of business. We are happy to report that we have business with the manufacturing industry as well as many different industries across Japan.
We remain actively committed to offering this package as well as new solutions utilizing AI, IoT and more to meet theneeds of a wide range of customers regardless of type of business or industry.

Broad lineup of self-developed software packages

TOKYO BOEKI GROUP

Domestic GroupTB-eye Ltd.

SECURITY SHOW 2018
TB-eye Ltd. (“TBE”) exhibited at 26th SECURITY SHOW 2018, which was held from March 6 to 9, 2018 at Tokyo Big
Sight.
SECURITY SHOW is Japan’s largest comprehensive security exhibition, and showcases the latest products and services to realize a safe and secured society, such as security cameras, entrance management systems and home security. TBE exhibited a wide range of solution products that can be seen, heard, and experienced, by fusing TBE video
monitoring systems and voice communication systems with the latest technologies, such as Smart Search using AI.
Many customers experienced TBE products over the busy four-day show.
SECURITY SHOW 2018 exhibition booth

Medical, Life and Science Industry Group

Domestic GroupTOKYO BOEKI MEDISYS INC.

Exhibit at “JACLaS EXPO 2017,” the clinical laboratory systems
exhibition
In September 2017, the Japanese Association of Clinical Laboratory Systems (JACLaS*1) held its general exhibition,
JACLaS EXPO 2017. The Company ran a booth exhibiting its automated analyzer products for use in clinical examinations, “BiOLiS” series.
The Company’s exhibit focused on the “BiOLiS 30i,” which was launched in 2016 and has gained a favorable reputation with strong sales in Japan, and the clinical laboratory information system “Medisys Link*2 ,” for which theCompany plans to strengthen sales. Many guests showed interest in the exhibit.
The Company will continue to work to strengthen the BiOLiS series brand by improving customer satisfaction
through the combined efforts of development, sales, and service engineers.
*1 JACLaS: The Japanese Association of Clinical Laboratory Systems was established in October 2014 for appropriately providing information onclinical laboratory devices, reagents and systems to medical institutions and medical practitioners, and contributing to the development of theclinical laboratory tests and the health and welfare of the Japanese people.
*2 Medisys Link: A computer system used in hospital laboratories, with features for the centralized management of examination data through online
integration with multiple analyzers, and features for integrating with other systems internal and external to the hospital.

Overseas Group

JACLaS EXPO 2017 exhibition boothTOKYO BOEKI (RUS) LTD.

TOKYO BOEKI (RUS) Celebrates its 50th Anniversary
On November 29, 2017, the Moscow representative office of Tokyo Boeki Ltd. (currently Tokyo Boeki Holdings
Corporation) marked the 50th anniversary since receiving official approval from the government of the former Soviet
Union (at the time, it was the first Western company to receive approval to open a local office).
An event was held to commemorate the 50th anniversary of the Moscow representative office, along with the 70th
anniversary of the Tokyo Boeki Group including a brief overview of the history of the Tokyo Boeki Group since its
founding, a commemorative address and awards for long-time employees.
Going forward, the Moscow representative office will create a new history for the Russia business of the Tokyo Boeki
Group, maximizing the synergy between each Group company with the slogan “NEXT 50 YEARS!”

Approval to open local office issued in
1967

TOKYO BOEKI GROUP

10

Materials, Resource and Metal Industry Group

Domestic GroupTOKYO BOEKI MATERIALS LTD.

New refractory brick OEM production agreement in China
In the materials business, the Company has signed an agreement with its Chinese joint venture to perform OEM
production of competitive refractory bricks. The Company will aim for further growth with this OEM product as a
new strategic product. The Company will also collaborate with TOKYO BOEKI TECHNO-SYSTEM LTD. to offer a value-added service that measures wear on refractory bricks using 3D measurement technology, and will advance thecreation of an integrated business from production to sale and after-sales services.

3,600 ton hydraulic press at Jinan Ludong RefractoryGroup Supreme Advisor Machida participates in the Japan-China Investment
Promotion Organization’s “21st Japan-China Regular Joint Meeting” as Director
The “21st Japan-China Regular Joint Meeting” was held on March 20, 2018 in Beijing, China.
This meeting is held every two years jointly by investment promotion organizations in Japan and China for the purpose of establishing an environment for investing in China by Japanese companies and solving problems in business. This year, a total of about 120 members attended, led by Chairman Shoichiro Toyoda on the Japanese side.
From the Company, Group Supreme Advisor Machida, who is a JCIPO director, attended the meeting. An inaugural
ceremony was held at the Hotel New Otani Chang Fu Gong in Beijing the day before the meeting, with greetings given
by Chairman Toyoda and Ambassador Extraordinary and Plenipotentiary Yokoi, and closing words given by Group
Supreme Advisor Machida.
* Japan-China Investment Promotion Organization: Established in March 1990 under the support of the Japanese and Chinese governments for the
purpose of contributing to a sound and stable economic relationship between the two countries through the expansion of investment in China by
Japanese companies. As of June 2018,Shoichiro Toyoda serves as the Chairman of the organization.

21st Japan-China Regular Joint Meeting

Established R&D Center with focus on growth of Group as a whole
The Tokyo Boeki Group, which marked its 70th anniversary in 2017, has opened an R&D Center as a new organization within Tokyo Boeki Holdings Corporation. The R&D Center is responsible for the medium to long-term growthstrategy of the group as a whole, as we aim for our 100th anniversary.
The R&D Center will foster reviewing commercialization of new business and industrial fields that are difficult for asingle company to tackle, with the goal of supporting and promoting new business strategies by each Group company. It will create new value by considering the future together with each Group company and the Tokyo Boeki Group,
sharing, and drawing up action plans.
Members of the R&D Center

11

TOKYO BOEKI GROUPCONSOLIDATED COMPANIESDomestic Group Companies

Overseas Group Companies

TB-eye Ltd.

USA

President: Wonyong Kim

TOKYO BOEKI NORTH AMERICA, INC. (KENTUCKY)

Business Description: I mport and sales of CCTV system devices; Development,
manufacture, and sales of CCTV system peripheral devices;
Design, installation, and after-sales service of CCTV system

President: Masaaki Sugihara
Business Description: S ales and ser vice of 3D measurement instruments andrelated software

TOKYO BOEKI MACHINERY LTD.

AUSTRALIA

President: Hideshige Tsubouchi
Business Description: Sales of fluid loading equipment and related devices, andvarious plant-related devices; Export trading of scientificinstruments for educational and science and technologyrelated facilities mainly in the CIS nations

Managing Director: Hiroshi Shigezumi
Business Description: Business development and import/export related to materials, resources, metals, and machinery

TOKYO BOEKI (AUSTRALIA) PTY. LTD. (MELBOURNE)

CHINATOKYO BOEKI ENGINEERING, LTD.

TOKYO BOEKI (CHINA) LTD. (SHANGHAI)

President: Hiroshi ImaiBusiness Description: Development, design, manufacture, sales, and after-sales
service for fluid loading equipment

President: Hirofumi Yanagawa
Business Description: Business development and import/export related to materials, resources, and metals

TOKYO BOEKI TECHNO-SYSTEM LTD.

TTS (GUANGZHOU) CO., LTD. (GUANGZHOU)

President: Katsuhiko Masuda
Business Description: Development, design, and manufacture of 3D measurement instruments, various measurement devices, various
testing devices, and related software; Sales, import/export,
and maintenance of 3D measurement instruments andrelated software

TOKYO BOEKI MATERIALS LTD.
President: Hiroshi Shigezumi
Business Description: Business development and import/export related to materials, resources, and metals

TOKYO BOEKI MEDISYS INC.
President: Keiji Okabe
Business Description: Development, manufacture, and sales of automated analyzers used in clinical examinations for hospitals and medical
testing facilities

President: Masaaki Sugihara
Business Description: S ales and ser vice of 3D measurement instruments andrelated software

THAILANDTBTS (THAILAND) CO., LTD. (BANGKOK)
President: Yasunori Inoyama
Business Description: S ales and ser vice of 3D measurement instruments andrelated software

CIS

TOKYO BOEKI (RUS) LTD. (MOSCOW)
General Director: Keiji Takigawa
Business Description: Import/export and sales of scientific instruments for educational and science and technology-related facilities in CIS
nations

TOKYO BOEKI MECHANICS LTD.
President: Hideshige Tsubouchi
Business Description: Sales and maintenance of gas-related devices

T.B. TECH CO., LTD.
President: Yasuhide Kanai
Business Description: Contract development of software and packaged software,building network systems, system outsourcing, consultancy
services, temporary staffing(As of June 26, 2018)TOKYO BOEKI GROUP

12

FINANCIAL REVIEW
Financial Highlights
Net Sales
48,780(Million yen)

46,031

2013

44,7562014

2015

42,4492016

Ordinary Income

3,279

2013

2014

2017
(Million yen)

3,963

3,470

44,900

2016

3,233

3,233

2013

2014

(Yen)

2,146

2,229

2013

2014

426.61402.732013

13

TOKYO BOEKI GROUP

2014

337.942015

31,031

16,913

2017

2,998

2015

2016

2017
(Million yen)

1,848

2,020

2015

2016

2017

2013

(Million yen)

Net Assets

32,455394.45

2016

3,970

Total Assets / Net Assets
Total Assets

595.08

3,648

2,812

2017

Earnings Per Share(Million yen)

Net Income Attributable to Owners of Parent

4,162

2,916

2015

Operating Income

33,777

19,4392014

35,123

20,266

2015

37,111

22,445

2016

24,8752017

Consolidated Financial Statements
Consolidated Balance Sheets
Account Item

(Million yen)

2017

2016

As of March 31, 2018

As of March 31, 2017

AssetsConsolidated Statements of Income
Account Item

(Million yen)

2017

2016

April 1, 2017 –March 31, 2018

April 1, 2016 –March 31, 2017

Net sales

44,90042,449Current assets

29,547

27,720

Cost of sales

30,30428,760Non-current assets

7,564

7,402

Gross profit

14,596

13,688

2,822

2,699

Selling, general & administrative expenses

10,626

10,040476

507

Operating income

3,970

3,648

4,265

4,194

Non-operating income

331

376

37,11135,123Non-operating expenses

139

61

4,162

3,963

Extraordinary income-

20

Extraordinary loss-

581

Income before income taxes

4,162

3,402

Income taxes

1,341

1,373

2,820

2,029

Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

Ordinary income

Liabilities

Current liabilities
Non-current liabilities
Total liabilities

11,25011,758985

919

12,235

12,677

Net assets

23,88921,529Net income

Capital stock

5,000

5,000

Net income attributable to non-controlling interests

88Retained earnings

19,453

16,958Net income attributable to owners of parent

2,812

2,020

(564)

(428)

Accumulated other comprehensive income

823

771

Non-controlling interests

162

144

Total net assets

24,87522,445

Total liabilities and net assets

37,11135,123

Shareholders’ equity

Treasury stock

TOKYO BOEKI GROUP

14

COMPANY OUTLINE / STOCK INFORMATION
Company Outline (As of March 31, 2018)
Tokyo Boeki GroupTokyo Boeki Holdings Corporationand 14 group companies

Established

October 30, 1947

Capital Stock

5.0 billion yen(Shareholders’ equity: 23.8 billion yen)
1,026

Employees

Stock Information (As of March 31, 2018)
Total Number of Authorized Shares
Total Number of Stocks Issued

Number of Shareholders

38,519,920 shares
Common Stock 4,281,140 shares(Excludes treasury stock)
Class A Preferred Stock 1,700,000 shares
114

Name of Shareholder
Tokyo Boeki Ltd.

Tokyo Boeki Holdings Corporation
Head Office(Pure holding company) KYOBASHI EDOGRAND, 2-2-1 Kyobashi,
Chuo-ku, Tokyo 104-0031 Japan

Executives of Tokyo Boeki Holdings Corporation (As of June 26, 2018)

Numbers ofRatio of
Stocks Held Shareholding
1,700,000 shares

28.42%

Tokyo Boeki Employee Share Holding Commission 623,000 shares

10.42%

Tokyo Marine & Nichido Fire Insurance Co., Ltd. 498,000 shares

8.33%

The Toa Reinsurance Company, Limited 408,000 shares

6.82%

The Bank of Tokyo-Mitsubishi UFJ, Ltd. 249,000 shares

4.16%

Nippon Life Insurance Company

2.01%

120,000 shares* 1,700,000 shares of Tokyo Boeki Ltd. are Class A Preferred Stock.

Board of Directors / Operating Officers
Director, Group Supreme Advisor

Hiroshi MachidaDirector, President & CEO

Sanshiro (Tomihiro) Katoh

Director, Executive Vice President

Hideshige Tsubouchi

Director

Tsunetoshi Sakai

Operating Officer

Shingo Nakagawa

Our Group Website
A variety of contents are available on the website, including thelatest news of the Company and an introduction to our business.

http://www.tokyo-boeki.co.jp/

Board of Corporate Auditors
Standing Audit & Supervisory Board Member

Mitsutaka Aoki

Audit & Supervisory Board Member

Yasuhiro Numata

Audit & Supervisory Board Member

Hideyuki Maeno

TOKYO BOEKI GROUPKYOBASHI EDOGRAND, 2-2-1 Kyobashi, Chuo-ku, Tokyo 104-0031 Japan
TEL: 03-6841-8300 FAX: 03-6841-8388