“Tokyo Boeki Group
Federated Management”
Toward Greater Progress
Active all over the world.
TOKYO BOEKI GROUP
Annual Report
April 1, 2018 – March 31, 2019

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

Each company of the Tokyo Boeki Group aims to be acompany that allows employees to realize their
dreams through their work. Employees will take pridein 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 GroupSCIENCERESOURCE

1TOKYO BOEKI GROUP

TB-eye Ltd.
TOKYO BOEKI MEDISYS INC.
TOKYO BOEKI (RUS) LTD.

Materials, Resource and Metal Industry GroupTOKYO BOEKI MATERIALS LTD.
TOKYO BOEKI (CHINA) LTD.

TO OUR SHAREHOLDERSNet Sales

44,072

million yen(Down 1.8% year-on-year)

Operating
Income4,169 million yen

Ordinary
Income4,410 million yen

Net Income
Attributable to
Owners of Parent

2,994 million yen(Up 5.0% year-on-year)(Up 6.0% year-on-year)(Up 6.5% year-on-year)

Representative Director,
President

Sanshiro
Katoh

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 this opportunity to deliver our company’s 99th term annual report (April 1, 2018
-March 31, 2019), as well as to give a brief message regarding the statusof our company.
In fiscal year 2018, the global economy shifted from a gradual recovery
trend to a slowdown, as a result of rising uncertainties including trade issues due to the influence of U.S. protectionist policies, as well as politicalrisks such as deteriorating U.S.-China-relations and the issue of Brexit. In
particular, the economic slowdown in China became apparent as exports
decreased due to worsening trade issues with the U.S. and production
activities in the manufacturing industry have contracted. In the European
economy, the slowdown has also intensified due to the impact of the
Brexit issue in addition to the downturn in the global economy. On theother hand, while the U.S. economy has shown a slowdown in growth, itremained strong due to its growth in domestic demand as a result of improvements in employment and income conditions.
The Japanese economy continued its gradual recovery, thanks tosteady domestic demand supported by improvements in the employment
environment. However, the sense of stagnation has further intensified,and uncertainty remains due to a downturn in external demand mainly
from China as well as temporary downward pressure from natural disasters.
Amidst the business environment in Japan and overseas, Tokyo Boeki
Group (TB-G) strove to maximize corporate value and realize sustainablegrowth and development through the provision of specialized proprietarybusinesses and services with consistently high standards in areas ranging
from business planning and development to marketing, manufacturing,sales and maintenance for our four groups of “Energy Machinery Industry,” “Technology, Automobiles and Information Industry,” “Medical, Lifeand Science Industry,” and “Materials, Resource and Metal Industry.”
As a result of these efforts, although revenue decreased from the previous year, we ensured an increase in profits year on year for fiscal year
2018, and ordinary income reached our highest level ever for the second
consecutive year. Net sales were 44,072 million yen (down 1.8% from theprevious fiscal year), ordinary income was 4,410 million yen (up 6.0%
from the previous fiscal year), and net income attributable to owners ofparent amounted to 2,994 million yen (up 6.5% from the previous fiscal
year).
We distributed a year-end dividend of 70 yen per stock, because while
we retain an internal reserve for active investment in existing and new
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 2019TOKYO BOEKI GROUP

2

SEGMENT INFORMATION (Percentage represents ratio of sales)
Business Description

31%

Energy Machinery Industry GroupThe Energy Machinery Industry Group is engaged in development, manufacturing, and sales of fluid loading equipment and related devices, various kindsof gas-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,the core 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 high reputation.

Business Condition

Sales

13,915 million yen 108% year-on-year
2,037 million yen 123% year-on-year

Operating
Income17%

Technology, Automobiles andInformation Industry GroupIn the core loading arm business, revenue and income experienced steady
growth as a result of exploiting demand for renewal in the domestic market
through proposal-based sales of emergency release devices that contributeto strengthening of the national land. Furthermore, we are expecting greater
revenue and profits as we receive orders for new large projects both in Japanand overseas. We are also continuously working on forward investments innew-business initiatives such as the hydrogen energy business, adsorption
chillers, the Hydrocurrent™ Organic Rankine Cycle (ORC) 125 EJW shipboard heat recovery system, and transport support robots. As a result, revenues and profits of the Group increased.

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
The automobile industry, which comprises most of the Group’s main customers, is undergoing a period of transformation including self-driving vehicles.
Both revenues and income increased for the Group due to the launching of
the latest models for our core products such as 3D measurement instruments
and processing machines for design, as well as expansion of the market for
products developed by the Group in recent years, such as delivering the “ATS”
IoT software, which allows the visualization of quality on production lines.

7,396 million yen 107% year-on-year
Operating
584 million yen 109% year-on-year
IncomeSales

3

TOKYO BOEKI GROUP

Medical, Life and Science
Industry Group

33%

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

14,378 million yen 92% year-on-year
2,186 million yen 81% year-on-year

Operating
Income19%

Materials, Resource andMetal Industry GroupIn the core security-related business, we have worked to provide products andservices to meet the needs of advanced and diversified markets, and have cultivated a full line of services ranging from system proposals to design, installation,
and after-sales service. Furthermore, last fall we launched an image analysis
system that employs AI, and strove to identify potential demand. In the medical-related field, sales of compact automated analyzers for clinical examinations,which are our core product, were sluggish in overseas markets. As a result,revenues and profits of the Group decreased.

Business Description
In the materials-related business, we stably supply refractory products developed and manufactured in our joint venture in China, primarily for the steel
industry. In the resource-related business, we supply materials for steel making and nonferrous metals, as well as ingredients for fertilizers and feedstuff,
to various companies in the steel industry, glass industry, and agricultureindustry. In the steel-related business, we have built and expanded a uniquebusiness model by combining the diverse needs of customers and steel manufacturers with various steel products including high-grade steel.

Business Condition

8,421 million yen 89% year-on-year
Operating
431 million yen 227% year-on-year
IncomeSales

There has been a decline in sales in the steel business due to stronger import restrictions in Indonesia and imports of phosphate rock in the resource
business were sluggish. However, profitability was stable due to our efforts in
our core material business to commercialize refractory products and makechanges to our transaction mechanisms, such as the introduction of services
employing 3D measurement instruments. As a result, the Group achieved anincrease in profit despite a decline in revenue.

TOKYO BOEKI GROUP

4

CLOSE-UP (1)TB-eye Ltd.

Release of the “TAS” Multi-image Analysis System
In September 2018, TB-eye Ltd. released an image analysis system called “TB-eye AI Solution” (abbreviated as “TAS”), which utilizes AI.
By combining AI with surveillance cameras, TAS has dramatically improved upon the analysis capabilities of earlier systems, and provides integrated
operation and management of multiple functions using a single software package, including high-accuracy face recognition, AI alarms such as intrusion
and abandonment detection, as well as people counting and collection of marketing information. We expect TAS to develop into a pillar for new business,
as a solution that can be used for various applications beyond security.

Achieved high-accuracy image
analysis with deep learning!
Alert
Notice EmailFace image
Recognition
results
Video Stream
CameraAI alarm

Face recognition system
ServerTAS body console

Alarm notifications and face recognition can beused in a single system, by connecting the facerecognition server to the TAS body console.
Smart search function

Potential for utilization in a wide range of fields
We have received inquiries and references from various industries, as TAS can be used not only in security, but also in a very wide range of otherfields, including medical and nursing care, amusement, retail, factories and hotels. The advantage of introducing TAS is that it can realize more
efficient business processes and improved services in various fields. The following are just a few possible examples.

Potential applications of TAS
In the service industry, TAS can detect the arrival of a customer’s car at the store, and notify the business regarding their face, name, andhistory of use. Even new staff can respond appropriately, leading to improved customer satisfaction.
In hospitals, TAS can detect which staff members have washed their hands before and after surgery, and improve the rate of hand washing.
In retail, TAS can determine the number of customers visiting the store, determine each customer’s gender and age from their face, anduse this information as statistical data.
In factories, TAS can automate the sorting of items that humans must otherwise visually identify, and realize the prevention of human error
and improve efficiency.
5TOKYO BOEKI GROUPCLOSE-UP (2)TOKYO BOEKI ENGINEERING, LTD.

Development of the World’s First Marine Loading Arm for Liquefied Hydrogen
Tokyo Boeki Engineering, Ltd. (“TEN”) has participated in the “Development of Cargo Loading/unloading System
for Liquefied Hydrogen and the Relevant Rules for Operation,” which is one of the project1 themes promoted by
the Cabinet Office, developing the world’s first marine loading arm for liquefied hydrogen.
Loading arms are metal devices made for handling liquids, and although they are used worldwide to handle
energy resources, this is the world’s first loading arm that is specifically developed for handling liquefied hydrogen.
Like natural sources of energy such as sunlight, hydrogen has attracted attention as a fuel that does not emit
carbon dioxide when used. However, the temperature of hydrogen that has been liquefied for mass transport is-253 °C, which is even lower than the liquefaction temperature of oxygen. When existing loading arms are used tohandle liquefied hydrogen, liquefied oxygen is generated on the surface of piping, which can lead to the risk of fire
hazards.
Therefore, in cooperation with project participant companies, TEN has developed a number of mechanisms tohandle liquefied hydrogen safely, such as piping that realizes high thermal insulation, fittings that prevent leakageof liquid hydrogen, and emergency release devices, thus contributing to the completion of the world’s first marine
loading arm for liquefied hydrogen.
Going forward, TEN will participate in the marine transport demonstration project for liquefied hydrogen, whichis part of the NEDO2 project, “The Demonstration Project for Establishment of Mass Hydrogen Marine Transportation Supply Chain Derived from Unused Brown Coal” and demonstrate the emergency release device of thissystem. Demonstration tests are scheduled for fiscal year 2020.
In anticipation of future commercialization, TEN aims to realize a sustainable society by promoting the development of technology to make the marine loading arm for liquefied hydrogen larger and more lightweight.
1: Cross-ministerial Strategic Innovation Promotion Program (SIP)
2: The New Energy and Industrial Technology Development Organization (NEDO)

Marine loading arm for liquefied hydrogen

Emergency Release System (ERS)

Loading arms and the hydrogen supply chain
Loading Arm

Loading Arm

LiquefiedHydrogenHydrogen Production
Handling
and Storage Producing Country

HandlingJapan

Storage

HydrogenUtilization

Hydrogen supply chain
In the international hydrogen supply network, hydrogen is produced and liquefied overseas, then transported via specialized tankers, and finally used in Japan.
The marine loading arm for liquefied hydrogen connects plants and ships, playing the role of loading and unloading liquefied hydrogen.

TOKYO BOEKI GROUP

6

GROUP TOPICS
Domestic GroupTOKYO BOEKI MACHINERY LTD.

Exhibit at LOGIS-TECH TOKYO 2018
In September 2018, at “LOGIS-TECH TOKYO 2018,” which is one of the largest logistics exhibitions in Asia, we
exhibited our new product currently under development, the transportation support robot “CoRoCo” for the firsttime. “CoRoCo” is equipped with proprietary sensor technology, and is capable of following the operator in the same
direction and speed, simply by walking it with an attached tether (leash) like a dog. Heavy loads of up to 100 kg caneasily be transported, and mass transportation is also possible by connecting multiple units. “CoRoCo” supports thestreamlining of work at understaffed factories and warehouses, reducing the workload on women and the elderly.
At the exhibition, many customers participated in our demonstrations, convincing us of the size of customer needs
and suggesting the potential for further development. In preparation for the start of business, we will continue topromote development with partner companies overseas and in Japan.

Energy Machinery Industry Group

Domestic GroupOur exhibit boothTOKYO BOEKI ENGINEERING, LTD.

Nagaoka Factory General Office Building completed
In November 2018, we completed the construction of our new office at our Nagaoka Factory. The office is a three-story
building with 840 square meters of floor space, which integrated the First Production Building, in which the Administrative Department and Engineering Department had been operating, with the Welfare Building, which housed a large conference room, cafeterias, and locker rooms. The floor structure prioritizes security, separating office space from public
space available to customers and business partners. Conference rooms for guests are well equipped with audiovisualfunctions and working wear for tours. In parallel with the construction of the General Office Building, we also promoted
a renewal of the infrastructure in the plant. With the completion of the General Office Building as a catalyst, we will continue to work on improving operational efficiency and performance throughout our entire factory.

Domestic Group

Panoramic view of the Nagaoka Factory General Office Building

TOKYO BOEKI MECHANICS LTD.

First use of hydrogen compressors at commercial hydrogen stations,compatible with bus refueling
A hydrogen diaphragm compressor (manufactured by the U.S. company, PDC Machines Inc.) handled by Tokyo Boeki Mechanics Ltd. (“TMX”) has been adopted for the Toyosu Hydrogen Station (tentative name), which is being built by Tokyo Gas Co., Ltd.
This fall, for the first time, we will deliver two units to be used for fueling fuel cell buses at a commercial hydrogen station thatwas publicly solicited by the Next Generation Vehicle Promotion Center (NeV), which was built for the purpose of promoting the
spread of automobiles that excel in environmental and energy performance.
The U.S. company PDC Machines Inc. has already introduced these compressors at many hydrogen stations in Europe, as well
as at nearly 30 stations in China, and TMX has developed a sales business as a distributor of the same compressor in Japan.
Regarding domestic results to date, we have introduced our compressors at demonstration hydrogen stations in Suginami
Ward in Tokyo, Tosu City in Saga Prefecture, and Shikaoi Town in Hokkaido Prefecture. However, the diaphragm compressor
was traditionally regarded as unsuitable for large-scale equipment at commercial hydrogen stations due to its initial cost. In thisfirst order we received, the compressor was highly evaluated in terms of durability and total cost. Going forward, we will strive
to enhance our backup system, for purposes of safety and high frequency use, with the aim of realizing operation this fall.

7

TOKYO BOEKI GROUP

Hydrogen Compressor

TOKYO BOEKI MECHANICS LTD.

Energy Machinery Industry Group

Domestic Group

Simple Fuel delivered to the Toyota Motor Corporation Motomachi FactoryTokyo Boeki Mechanics Ltd. (“TMX”) delivered Simple Fuel, a water electrolysis-based machine for hydrogen generation that uses photovoltaic power generation as a renewable energy source, to Toyota Motor Corporation’s Motomachi
Factory (Toyota City, Aichi Prefecture). Simple Fuel serves to refuel the hydrogen fuel cell (FC) forklifts used to transport cargo inside the factory. This is being implemented as part of an effort to counter global warming by developinga hydrogen infrastructure network that does not emit carbon dioxide (CO2 ) even from the hydrogen production stage.
Simple Fuel electrolyzes water to make hydrogen, and it is capable of refueling seven to eight FC forklifts per day.
Last year, we delivered the first Simple Fuel unit to the Kesen Precut Business Cooperative Association in Iwate Prefecture, making the unit at Toyota the second such device to be delivered.
Toyota Motor Corporation’s Motomachi Factory has established the goal of achieving zero carbon dioxide (CO2 )emissions from the factory by 2050, and as part of such efforts, our Simple Fuel was delivered following two years ofbusiness negotiations. TMX will continue to contribute to the realization of a low carbon society through its environmentally friendly and clean “hydrogen energy business.”
Domestic Group

Opening / Tape-cutting Ceremony

Simple Fuel Equipment

TOKYO BOEKI TECHNO-SYSTEM LTD.

In October 2018, our new processing machine “Laymatic MILL-X” received the Good Design Award (Organized by the Japan Institute of Design Promotion). The new processing machine “Laymatic MILL-X,” which
was launched in 2018, has a simple but sophisticated design that is suitable for design studios, and reduces
processing time by 40% compared to conventional machines. When designing this machine, we pursued highspeed, accuracy, usability, and safety, such as by incorporating IoT functions including tablets for remote monitoring, and remote maintenance features to predict malfunctions. We will take this award as an opportunity tofurther expand sales, and actively promote the use of design in manufacturing, while always striving to improve
our brand image.
*Good Design Award: Awards given to evaluate and promote designs representing Japan, as a successor to the Good Design Product Selection System established in 1957. The Award Ceremony is held each year, as a global design award with participants including many
companies and other organizations from Japan and abroad, for the purpose of improving the quality of life and using design to addresssocial issues and themes.
Domestic Group

T.B. TECH CO., LTD.

Opening of “Data Scientist Training Courses” specialized for the manufacturing industry
As AI and IoT are becoming increasingly important in the manufacturing industry, in May 2019 we opened “Data Scientist Training Courses” to train data analytics specialists, in Toyota City and Nagoya City in Aichi Prefecture, which is
the heart of the Japanese manufacturing industry.
The teaching material incorporates real data from equipment and sensors, and the curriculum is specialized for the
manufacturing industry, aiming to provide a training course that not only teaches analysis, but also leads to real
improvements, with the goal of supporting human resource development in the automobile industry, which is the coreindustry in Japan.
Because participants in the course are mainly employees of automobile manufacturers and their group companies,
the course is also expected to play a role as a hub in the AI/IoT community in the manufacturing industry.

“Laymatic MILL-X,” winner of the Good Design Award

Train data scientists specialized for the manufacturing industry
The one and only program focusing on issues that must be addressed in the field

Anomaly
Detection

Quality
Prediction

DemandPrediction

Image
Classification

Appearance
Inspection

Inventory
Management

Parameter
Adjustment

Cost
Reduction

Technology, Automobiles and Information Industry Group“Laymatic MILL-X” wins the Good Design Award

Data Scientist Training Courses

TOKYO BOEKI GROUP

8

Domestic GroupTB-eye Ltd.

Operating in 22 locations nationwide with the establishment of the West Tokyo Branch
Capital increased to 450 million yen
Medical, Life and Science Industry Group
Materials, Resource and Metal Industry Group
9On June 1, 2018, we established our West Tokyo Branch in Tachikawa City, Tokyo. This branch will serve a base forselling products such as surveillance camera systems to the West Tokyo area and Tama area, located on the westof Shinjuku. It is our 22nd location, nationwide.
In addition, on January 1, 2019, we increased our capital from 100 million yen to 450 million yen.
With 22 locations nationwide, we will work to strengthen our full line of services that are closely connected to theregion, make additional improvements to our customer services, and with this capital increase, further strengthen
our management base and work to further expand our business.
West Tokyo Branch, office building exterior

Domestic GroupTOKYO BOEKI MEDISYS INC.

Exhibition at “MEDICA 2018,” the world’s largest medical equipment expo
We exhibited our products at “MEDICA 2018,” the world’s largest medical equipment expo, which was held in
Dusseldorf, Germany in November 2018. At this expo, participants exhibited medical equipment used for diagnosis and treatment, as well as a wide range of products and technologies for medicine and health, including
hospital equipment, medical information communication technology, nursing care, and sports gear. In addition
to presenting our products to customers from around the world, we were able to hold many business talks that
could lead to future sales, such as by exchanging opinions with existing agencies and developing opportunities
with new agencies. In addition, we also displayed prototypes of “BIOLIS 60i,” which is currently under development, for reference. Accordingly, it was an excellent opportunity to promote this product to many customers.

Domestic Group“MEDICA 2018” expo boothTOKYO BOEKI MATERIALS LTD.

Promoting the integration of materials businesses
Tokyo Boeki Materials Ltd. (“TML”) collaborated with the group company Tokyo Boeki Techno-System Ltd. to develop a system for measuring and analyzing the remaining thickness of refractory bricks using 3D measurement
instruments.
This 3D measurement instrument makes it possible to quantify the residual thickness and wear volume of refractory bricks, which could not be quantitatively determined in the past by consumers of refractory bricks.
We aim to build an integrated business by providing after-sales service, such as developing residual thickness
measurement services, mainly to TML’s major business partners in the steel industry.
In our materials business, we are also promoting the development of our proprietary products and constructionof our own factories in addition to the abovementioned services.
Going forward, we will continue to make use of the strengths of TML and other group companies, in order torealize product development and services that are useful to our customers.
TOKYO BOEKI GROUP

3D measurement instruments

Residual thickness analysis dataOverseas Group

Restructuring of Group’s China strategy and relocation of our Shanghai Office
The Tokyo Boeki Group has recognized the Chinese market as a key overseas market, and all group companies
are working together to promote business expansion. As a result, Tokyo Boeki (China), Ltd., which was previously
a subsidiary of Tokyo Boeki Materials Ltd., was reborn as the company to coordinate the Group’s China strategy
after the structural change in December 2018, and is now working as our flagship company in China to develop
new businesses and strengthen our existing businesses within the country.
We relocated our Shanghai office in April 2019, and will continue to work on maximizing synergy with our groupcompanies.
Shanghai Office, building exterior

President Katoh participates in a delegation of three major economic groups
to China
A joint delegation representing three major economic organizations (the Japan-China Economic Association, Japan Business Federation, and Japan Chamber of Commerce and Industry) visited Beijing from September 9 to 13,
2018, with President Katoh from the Tokyo Boeki Group in attendance. This visit, which coincided with the 40th
Anniversary of the conclusion of the Treaty of Peace and Friendship between Japan and China, included a record
number of 240 representatives from various Japanese organizations and companies, who joined in exchanges of
opinions between Japan and China regarding economic policy. Li Keqiang, Premier of the State Council of thePeople’s Republic of China, joined in a meeting on the 12th and shook hands with President Katoh. This became ameaningful visit for the Group, as it strengthens its China strategy, with the hope of further developing politicaland economic relations between Japan and China in the future.

Meeting with the National Development and Reform Commission of
the People’s Republic of China

Launch of the “Tomas Innovation Project”
We launched projects relating to work style reforms in January 2019, under the name of the “Tomas Innovation
Project.” Rather than a typical work style reform, our purpose involves a “job satisfaction reform.” In particular,
we aim to create an environment in which all employees can achieve job satisfaction and work in a lively manner, and we are examining specific measures, such as promoting programs to go home early and the use of
flextime. This means striving not to simply shorten working hours, but also to improve productivity and achievesustainable growth, while fostering a work culture that will serve as the foundation of our group.

“Job satisfaction reform” poster

TOKYO BOEKI GROUP

10

CLOSE-UP
Introduction of Group Companies
Basic Facts

Energy Machinery Industry GroupTOKYO BOEKI MACHINERY LTD.
Contributing to society through sales of loading arms, for which we holdthe top share in Japan, and sales of energy related equipment, scientific equipment, and energy-saving environmental protection products

Established
Head Office
Location
Representative
Capital Stock
Number of Employees

October 1, 2006
Kyobashi Edogrand, 2-2-1 Kyobashi, Chuo-ku, Tokyo
Tokyo, Sapporo, Sendai, Nagoya, Osaka, Hiroshima,
Fukuoka, Tomakomai, Beijing, Singapore
Hideshige Tsubouchi Director, President
400 million yen
133 (March 31, 2019)

Tokyo Boeki Machinery Ltd. (“TBM”) is a “business creation-specialized trading company” that provides integrated services from marketing to
product development, sales, and after-sales service. In the clean energy field, we are contributing to a stable global supply of energy, especiallywith marine loading arms, for which we hold the top market share in Japan.

Loading arm business
Loading arms, which are TBM’s core product, are devices that transport
liquids such as oil and liquefied gas. TBM responds to customer requests
by selling loading arms that can be applied to all types of liquids, from petroleum to chemicals, based on a manufacturing and sales system in cooperation with the group manufacturing company, Tokyo Boeki Engineering,
Ltd. In particular, TBM has achieved overwhelming delivery results for the“marine loading arm for liquefied natural gas” in Japan, and TBM has also
obtained many delivery results overseas, to countries world-wide.

Loading arms

Transports oil and gas mainly from tanker ships to tanks on shore

Russia/CIS business
TBM exports scientific instruments such as electron microscopes, as well as products related to resources and energy, electronics, and engineering to Russia and CIS countries.

Various new businesses
In recent years, TBM has been actively working on new businesses and new
product development by tackling environmental problems through offeringof products and services related to unused energy, as well as by actively
promoting businesses that address problems in local communities throughthe development, manufacture, and sales of transport support robots.

Adsorption chiller

ORC shipboard heat recovery system

The “CoRoCo” transport support robot

Details for each product can be viewed on the TBM website. http://www.tokyo-boeki-machinery.co.jp/
11TOKYO BOEKI GROUPCONSOLIDATED COMPANIESDomestic Group Companies

Overseas Group Companies

TB-eye Ltd.

USA

President: Wonyong Kim

TOKYO BOEKI NORTH AMERICA, INC. (KENTUCKY)

Business Description: B usiness Description: Import 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: Yasunori Inoyama
Business Description: S ales and service of 3D measurement instruments andrelated software

CHINA

TOKYO BOEKI MACHINERY LTD.

TOKYO BOEKI (CHINA) LTD. (SHANGHAI)

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

President: Masaaki Sugihara
Business Description: M aterials, resources, steel business, and new businessdevelopment in ChinaTOKYO BOEKI ENGINEERING, LTD.
President: Hideshige Tsubouchi
Business Description: Development, design, manufacture, sales, and after-sales
service for fluid loading equipment

TTS (GUANGZHOU) CO., LTD. (GUANGZHOU)
President: Shikoku Nishioka
Business Description: S ales and service of 3D measurement instruments andrelated software

THAILANDTBTS (THAILAND) CO., LTD. (BANGKOK)TOKYO BOEKI TECHNO-SYSTEM LTD.
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
and related software

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

President: Yasunori Inoyama
Business Description: S ales and service of 3D measurement instruments andrelated software

CIS

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

TOKYO BOEKI MECHANICS LTD.
President: Shigeru Moriyama
Business Description: Sales and maintenance of gas-related devices

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

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 27, 2019)TOKYO BOEKI GROUP

12

FINANCIAL REVIEW
Financial Highlights
Net Sales

46,031(Million yen)

44,75642,44944,900Operating Income

44,072
3,233

2014

2015

2016

2017

Ordinary Income

3,279

2014

2018

4,162

2017

2015

1,848

2014
(Yen)

402

2014

13

TOKYO BOEKI GROUP

337

2015

2016

32,455

2018(Million yen)

2,994

2,020

2016

2017

2018

2014

(Million yen)

Net Assets

33,777

19,43920172018

Total Assets / Net Assets

653

394

2017

2016

2015

Total Assets

595

4,169

2,812

2018

Earnings Per Share

3,970

Net Income Attributable to Owners of Parent

2,229

2016

3,648

4,410

2,916

2015

2,998

2014

(Million yen)

3,963(Million yen)

35,123

20,266

2015

37,111

22,445

2016

40,75824,875201727,322

2018

Consolidated Financial Statements
Consolidated Balance Sheets
Account Item

(Million yen)

2018

2017

As of March 31, 2019

As of March 31, 2018

AssetsConsolidated Statements of Income(Million yen)

2018

2017

April 1, 2018 –March 31, 2019

April 1, 2017 –March 31, 2018

Net sales

44,072

44,900Account Item

Current assets

32,30828,993

Cost of sales

28,76530,304Non-current assets

8,449

8,117

Gross profit

15,307

14,596

3,482

2,822

Selling, general & administrative expenses

11,137

10,626400

476

Operating income

4,169

3,970

4,566

4,818

Non-operating income

391

331

40,75837,111Non-operating expenses

150

139

Ordinary income

4,410

4,162

Income before income taxes

4,410

4,162

Income taxes

1,405

1,341

Net income

3,004

2,820

Net income attributable to non-controlling interests

108

Net income attributable to owners of parent

2,994

2,812

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

Current liabilities

12,383

11,250Non-current liabilities

1,051

985

Total liabilities

13,435

12,235

Net assets

26,55023,889

Capital stock

5,000

5,000

Retained earnings

22,115

19,453

(564)

(564)

Accumulated other comprehensive income

600

823

Non-controlling interests

171

162

Total net assets

27,322

24,875

Total liabilities and net assets

40,75837,111

Shareholders’ equity

Treasury stock(Notes) 1.	Amounts have been rounded down to the nearest whole unit.
2.	In line with the application of “Partial Amendments to AccountingStandards for Tax Effect Accounting,” 553 million yen of “current
assets” in the previous fiscal year are included in “investments andother assets.”

TOKYO BOEKI GROUP

14

COMPANY OUTLINE / STOCK INFORMATION
Company Outline (As of March 31, 2019)
Tokyo Boeki GroupTokyo Boeki Holdings Corporationand 14 group companies

Established

October 30, 1947

Capital Stock

5.0 billion yen(Shareholders’ equity: 26.5 billion yen)
1,072

Employees

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 27, 2019)

Stock Information (As of March 31, 2019)
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
115

Name of Shareholder

Numbers ofRatio of
Stocks Held Shareholding

Tokyo Boeki Ltd.

1,700,000 shares

28.42%

Tokyo Boeki Employee Share Holding Commission

613,000 shares

10.27%

Tokyo Marine & Nichido Fire Insurance Co., Ltd.

498,000 shares

8.33%

The Toa Reinsurance Company, Limited 408,000 shares

6.82%

MUFG Bank, Ltd.

249,000 shares

4.16%

Nippon Life Insurance Company

120,000 shares

2.01%* 1,700,000 shares of Tokyo Boeki Ltd. are Class A Preferred Stock.

Board of Directors / Operating Officers
Representative Director, Chairman & CEO

Hiroshi Machida

Representative Director, President

Sanshiro (Tomihiro) Katoh

Director, Executive Vice President

Hideshige Tsubouchi

Director

Tsunetoshi Sakai

Operating Officer

Shingo Nakagawa

Operating Officer

Hyunmin Go

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