Global Partner
TOKYO BOEKI GROUP
Annual Report
April 1, 2016 – March 31, 2017

Global Partner
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. Each employee will take pride inthemselves 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 T-BICS INC.
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.
TOKYO BOEKI (BEIJING) LTD.

TO OUR SHAREHOLDERS

We made a fresh start toward a great leap forward, by
succeeding in management reforms focused on profitability.

Sanshiro
Katoh
Director,
President & CEO

Introduction

My name is Sanshiro Katoh. I was appointed
and have assumed the office of Representative
Director, President and CEO. I would like to exp re s s m y s i n c e re a p p re c i a t i o n t o a l l o f o u rshareholders for your loyal support. I would liketo take this opportunity to report the businesscondition for our company’s 97th term (April 1,2016 - March 31, 2017).

Ordinary income reached a record high due toconcentration in core competence
In fiscal year 2016, business conditions in Japan andoverseas remained steady overall, despite growing uncertainties about the future of the global economy due tofactors such as the impact of the United States presidential election. Amidst this environment, the Group strove
to thoroughly “eliminate waste” by withdrawing frombusinesses with less profitability, integrating group companies to improve operational efficiency, and strengthening existing businesses, based on the management
vision formulated by the Group last year, VISION 2020.
As a result of these initiatives, consolidated results forfiscal year 2016 were the following: net sales were 42,449

million yen (down 5.2% from the previous fiscal year), ordinary income was 3,963 million yen (up 35.9% from theprevious fiscal year), and net income attributable to owners of parent amounted to 2,020 million yen (up 9.3%
from the previous fiscal year). Although net sales decreased slightly, ordinary income reached a record high.
During fiscal year 2016, sales of equipment for the energy-related industries remained steady, and security-related businesses which had showed rapid growth inrecent years continued to secure high growth. While
working to expand existing businesses, we vigorously
pushed forward on the concentration in core competence by restructuring unprofitable businesses and reorganizing group businesses. As a result, an efficientorganization with a high-value-added business portfolio
was created and a strong earnings base that lays a solid
foundation for future growth was established. In addition, in January 2017, we relocated our headquarters to“KYOBASHI EDOGRAND,” thereby congregating groupcompanies which had been located throughout Hatchobori onto one floor. We expect this relocation to bring us
fur ther synergy through active interaction between
group companies.

Further enhancing profitability, with a view toachieving net sales of 70 billion yen
The Group is currently implementing VISION 2020 for the
purpose of realizing new growth and development. Under the vision, we will strive for high quality management
by fulfilling our responsibilities to all stakeholders, while
increasing the value of the Group’s businesses and embracing the challenge of sustainable development. As
for numerical targets, we will aim to achieve consolidated net sales of 70 billion yen and consolidated ordinary
income of 6 billion yen in fiscal year 2020.
In the past, the Group focused on management with
an emphasis on expanding sales volume rather thanprofitability. Although sales volume once reached 400
billion yen, profit relative to net sales was only around 1
TOKYO BOEKI GROUP

2

TO OUR SHAREHOLDERS
billion yen and resulted with an extremely low profit margin. Following a period of poor performance, we madeefforts to substantially reduce sales volume, along with ashift to highly profitable businesses. This resulted in laying the foundation for the current lean and sound earnings base.
However, net sales have been following a downward
trend, thus giving rise to the challenge of further expanding the market and cultivating new businesses. VISION
2020 is a new chart that would enable us to depart fromthis state of balanced contraction and return to a soundgrowth path. We will optimize management resources
through group-wide efforts with a view to maintaining
and expanding existing businesses by way of concentration in core competence, while proactively working to realize further globalization and invest in new businesses
and M&A.
First, the Group will aim to expand net sales, which
will be the base, from the current level of 42.4 billion yen
to about 60 billion yen by strengthening existing businesses. With businesses such as the fast-growing security-related businesses and the energy-related businesses
for which expansion is expected in Japan and overseas
acting as the driver, we hope to achieve such growth byalso further enhancing sales of high-value-added products in niche markets in which the Group excels. However, rather than seeking to randomly expand scale, we
intend to focus only on businesses that can secure atleast a double-digit profit margin. And, add the remaining 10 billion yen by means of new businesses and M&A
in fields expected to have a synergy effect with existing
businesses.
VISION 2020 sets forth the policy of “aiming to ensurecompliance and perform high quality management,” aswell as such aggressive strategies. In addition to efforts
made by group companies, we also established an organization which presides over the compliance system of
the entire Group in August 2016, and are making efforts
to increase awareness of compliance as a unified Group.

3

TOKYO BOEKI GROUP

About dividendThis term’s dividend amount will add a commemorative
dividend of 5 yen to the ordinary dividend of 20 yen perstock in commemoration of our 70th anniversary, making
the total dividend of 25 yen, even as our company secures the internal funding necessary for active investment in existing businesses and new businesses.
Dividend Trend (Unit: Yen)
Ordinary dividend

Commemorative dividend

70th
anniversary

Commemorating theCapital increased 10th anniversary since the move toestablishment of Tokyo
to 5.0 billion yen a federated management system
Boeki Holdings Corporation

16

17

18

18

3
13

3
14

3
15

18

2012

2013

2014

2015

25
5
20

2016
(current)

To our stakeholders
Thanks to your support, the Company will be celebratingits 70th anniversary this October. It is said that the life ofan enterprise is 30 years. We attribute our success inbuilding our operations over the long period of 70 years
to the “mindset of management among all employees,”
one of the Group’s “Three founding spirits.” The Groupgrew not only on the strength of some managers andoutstanding employees. We believe the hard work ofeach individual enabled us to surmount numerous difficulties and build what the Group is today. Needless tosay, we have not forgotten the support our stakeholders,
including shareholders and business partners, have given us over the years, and I express my heartfelt appreciation on behalf of the Group.
I would like to ask for your continued suppor t andguidance.

CLOSE-UP

Our New Headquarters

Our headquarters have been relocated to “KYOBASHI EDOGRAND”
In January 2017, the Tokyo Boeki Group relocated its headquarters from Hatchobori, the place of its foundation, to Kyobashi. This brought business companies which had been located in different places together on
one same floor.
Through this relocation, we will strive toC onduct swift decision-making, invigorate communication, and expand group synergy through the concentration of group companies;
Reduce costs through the integration and consolidation of overlapping operations of group companies;E nhance security, implement BCP, and ensure the safety of employees through relocation to a state-ofthe-art building; andImprove customer satisfaction and employee satisfaction.
Through the creation of new synergy effects between each company’s business and employees with closer
connections and communication among group companies, we will realize “true development” for the Tokyo
Boeki Group with an increased sense of unity.
TOKYO BOEKI GROUP

4

Commemorated our70th anniversary

Since its foundation in 1947, the Tokyo Boeki
Group has accumulated expertise and businesscapabilities. While making continued efforts toenhance them, the group companies aim to achieve
the number one position in their respective industries by joining the forces of all their employees
under the keyword “Global Partner.”

1947

1960s

Opened bases overseas successively.
Moscow, Beijing, Sydney, Melbourne, New
York, Bucharest, and others

1967

The Moscow representative office was officially approved by the former Soviet
Union Government as an office, the first time for a Free World enterprise.

1969Founder Yasuo Matsumiya
established Tokyo Boeki Shokai.

Completed construction of Atsugi plant
which commenced operations; started the
manufacturing of measuring instruments
and design equipment.

1948

Entered the metal/machinery
sector and the grain/fertilizer sector.

1940

1950

1951

Authorized as a trading firm for foreign food by the Japanese Food Agency.

1953

Successfully inaugurated the first post-war barter trade with China using the
newly formulated TOMAS Way, becoming the forerunner of Japan-China trade.

1954

Entered steel trading; appointed as Yahata Iron & Steel Co., Ltd.’s (now Nippon
Steel & Sumitomo Metal Corporation) export agent; established basis of steelbusiness and related businesses.

1955

Acquired sole Japanese distributorship of Unites States Chiksan
Joint and Loading Arms and commenced machinery imports.

1957

Changed company name from Tokyo Boeki Shokai to Tokyo Boeki Ltd.
5TOKYO BOEKI GROUP

1960
1973

1970

Opened the exclusive Japanese restaurant Inagiku at the Waldorf Astoria
Hotel in New York, entering the restaurant industry in the United States.

1974

Founded Qatar Steel Co., Ltd., in Qatar
through a joint venture, constructed
the first full-scale steel plant in the
Middle East; and initiated overseas
production and multinational trading.

1978

Agreed to export a large quantityof automobiles from Toyota Motor
Corporation and Hino Motors, Ltd. toChina, greatly expanding long-term
trade with China.

1980

Signed long-term agreement to import Gregory coalfrom B.H.P., Australia.

1983

Invested in Quintette Coal, Canada to diversify
overseas coal sources.

2001

Founded TOKYO BOEKI MECHANICS LTD.
Founded TOKYO BOEKI (CHINA) LTD.

2003

Founded TOKYO BOEKI ENGINEERING, LTD.

1985

Founded MONITOR PRODUCTS, INC. in New Jersey, U.S.,
and began sales of electrical appliances in the United States.

1986

Founded T.B. TECH CO., LTD. in Toyota.

1988

Opened representative office in Detroit, U.S.,(now TOKYO BOEKI NORTH AMERICA, INC.)

1980
1994

1990

Established the Atsugi plant as an independent company named TOKYO
BOEKI TECHNO-SYSTEM LTD.

1995

Appointed Hiroshi Machida(now Group Supreme Advisor)
as President.
Founded TB-eye LTD.

1999

2005

Founded TOKYO BOEKI (BEIJING) LTD. in China for integration of thesteel-making refractory brick business.
Aimed to expand this business area primarily through sales of refractory bricks.

2006

Founded TOKYO BOEKI MACHINERY LTD. and TOKYO BOEKI MATERIALS LTD. through a incorporation-type company split in order to accelerate the move to Tokyo Boeki Group Federated Management system.

2000

2010

2013

Company name changed from Tokyo Boeki Ltd. to Tokyo Boeki Holdings Corporation and capital increased to 3.0 billion yen.

2014

Capital increased to 5.0 billion yen.

2016

Formulated Tokyo Boeki Group “VISION 2020”2017

Relocated headquarters to KYOBASHI EDOGRAND and consolidated
headquarter functions of the Tokyo Boeki Group

Founded TOKYO BOEKI MEDISYS INC.

 The Group companies are stated in the current names.

TOKYO BOEKI GROUP

6

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 of gas-related machinery, power generation-related devices and equipment, environment-related devices and others for the 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 ENGINEERING, LTD. and TOKYO BOEKI
MACHINERY LTD., which have gained a high reputation.

Business Condition

Sales

12,329 million yen 99% year-on-year
2,036 million yen 189% year-on-year

Operating
Income16%

Technology, Automobiles andInformation Industry GroupIn the energy industry, amid the management integration of major oil distributors
and impending liberalization of the gas retail market on the heels of liberalizationof the electric power market, the growing cost consciousness of major customers
has led to the postponement of capital investment and pressure to reduce procurement costs by the industry as a whole. Although we channeled our energies intostrengthening proposals for weight reduction of ERS (Emergency Release Systems), an ancillary facility of our core product loading arm, and receiving orders for
updating existing loading arms, the Group recorded decreased revenues. However,the Group recorded increased profits for fiscal year 2016 due to the absence of the
impact of the substantial allowance recorded in connection with problems withorders overseas in the previous fiscal year.

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

7,026 million yen 96% year-on-year
Operating
570 million yen 61% year-on-year
IncomeSales

7

TOKYO BOEKI GROUP

There was a succession of cases where automobile-related companies, theGroup’s main customers, put off large-scale investments due to the highly uncertain global economic situation. In addition, amid ongoing fierce competition
with other foreign companies, challenging conditions persisted for sales of 3D
measurement-related instruments and software. To develop new customers,
the Group newly entered the aircraft industry for which sales can be expected
to expand in the future. Nevertheless, revenues and profits decreased for theGroup.

Medical, Life and Science
Industry Group

34%

Business Description
The Medical, Life and Science Industry Group is engaged in the development, manufacturing and sales of wide range of products, including security devices, medical
devices and scientific instruments. In particular, the security business provides
security equipment, mainly surveillance cameras from overseas, to the domestic
market under rigorous quality control, along with 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 inclinical examinations are being sold in 80 countries around the world and boast an
outstanding track record in the medical device field.

Business Condition

Sales

14,270 million yen 107% year-on-year
1,980 million yen 105% year-on-year

Operating
Income21%

Materials, Resource andMetal Industry GroupIn the security business, the Group worked to enhance the product lineup throughthe TB-eye brand and provide total service from system proposals to design, installation, and after-sales services. As a result, the Group steadily increased sales. In
the medical-related field, sales of compact automated analyzers for use in clinicalexaminations were sluggish, reflecting competition with low-priced products, suchas those made in China, in addition to weak sales to North and South Americas andEurope. In the scientific instruments-related business, although the economy of
Russia, a major export destination, showed signs of bottoming out, it did not leadto a significant increase in orders. As a result, driven by the robust security business, revenues and profits increased for the Group.

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

8,836 million yen 75% year-on-year
Operating
272 million yen 113% year-on-year
IncomeSales

In the core materials business, the volume handled showed a slight increase
from the previous fiscal year partly due to improved price competitiveness. In
addition, the volume handled expanded for raw materials for fertilizers and batteries in the resource business and for steel materials for Indonesia in the metalbusiness. However, owing to factors such as the termination of transaction
following withdrawal from local production in Australia by a leading automobile manufacturer, which had been a longtime major trading partner, revenues
decreased and profits increased for the Group.

TOKYO BOEKI GROUP

8

GROUP TOPICS
Domestic GroupTOKYO BOEKI MACHINERY LTD.

Domestic GroupTOKYO BOEKI ENGINEERING, LTD.

Agreement signed to manufacture and distribute Hydrocurrent™
Organic Rankine Cycle (ORC) 125 EJW shipboard heat recovery system
TOKYO BOEKI MACHINERY LTD. signed an exclusive manufacturing and distribution agreement with Calnetix Technologies,
LLC. of the United States for the Hydrocurrent™ Organic Rankine Cycle (ORC) 125 EJW shipboard heat recovery system.
This product is a system that generates power with a directly-coupled turbine-driven generator utilizing magnetic bearings byusing jacket cooling water of the propulsion engines of large ships and fluorocarbon-free refrigerant. The main components
consist of an IPM (turbine generator) and EC (control panel) which are imported from the United States and module will beassembled at and shipped from the Nagaoka Works of TOKYO BOEKI ENGINEERING, LTD. To cope with the “NOx regulations”
enforced in 2016 and the “shipping environmental regulations on SOx” which will be strengthened from 2020, the Company
will aim to provide this system as a standard feature in the energy efficiency-oriented shipping industry.

Energy Machinery Industry Group

Domestic GroupTOKYO BOEKI MACHINERY LTD.

Domestic GroupTOKYO BOEKI ENGINEERING, LTD.

Hydrocurrent™ Organic Rankine Cycle (ORC) 125 EJW shipboard heat recovery system

Exhibit at “Gastech 2017”TOKYO BOEKI MACHINERY LTD. and TOKYO BOEKI ENGINEERING, LTD. jointly held an exhibition at “Gastech2017” which was held at Makuhari Messe from April 4 - 7, 2017. Gastech, an international event for energy professionals, including natural gas and the LNG supply chain, was held in Japan for the first time. At the booth, the companies displayed loading arm models and promoted marine loading arms for LNG mainly through product introduction
by video. The companies will make use of their contacts with industry participants developed at the exhibition to
pursue further business developments in the future.
At the exhibition boothDomestic GroupTOKYO BOEKI MACHINERY LTD.

Merger with TOKYO BOEKI TECHNOLOGY LTD.
As of April 1, 2017, TOKYO BOEKI MACHINERY LTD. merged with TOKYO BOEKI TECHNOLOGY LTD., a company of
the Tokyo Boeki Group engaged in the export of scientific instruments and industrial machinery mainly to companies
in Russia and CIS countries, and took over all the operations of TOKYO BOEKI TECHNOLOGY LTD. This merger ispart of the reorganization efforts within the Tokyo Boeki Group and aims at further strengthening the product procurement capability and business development capability of the Russia and CIS business accumulated by TOKYO
BOEKI TECHNOLOGY LTD., as well as at developing the Company’s energy business in Russia and CIS countries.
Going forward, the Company will maximize the synergy effect of the merger with a view to becoming “a company that
contributes to the prosperous life of people all over the world.”

Denyo Welding MachineElectron microscope
Photos provided by JEOL Ltd. / Denyo Co., Ltd.

9TOKYO BOEKI GROUP

Domestic Group

Energy Machinery Industry GroupTOKYO BOEKI MECHANICS LTD.

Acquiring a portion of business assets of
YOKOHAMA ENGINEERING CO., LTD.
On April 1, 2017, the Company acquired a portion of business assets of YOKOHAMA ENGINEERING CO., LTD. andestablished offices in Yokohama and Sendai in taking over the business. With a history of 42 years, YOKOHAMA ENGINEERING CO., LTD. has not only the technological capability developed in mechanical design, can manufacturing
technology, and maintenance business and know-how for acquiring approval, but also a sales base in the Tohoku
area where the Company has positioned no offices. The Company has built a friendly cooperative relationship over
the years. Going forward, the Company will maximize the strengths of this business integration to enter the LPG
market, an existing business, and other markets and expand market share, as well as complement the technologicalcapabilities of gas-related devices.
Work space

TOKYO BOEKI TECHNO-SYSTEM LTD.

Long-awaited first-time entry into the aircraft industry
Completed development of a robot automatic measurement system
Sales of products for the automobile industry account for more than 80% of the Company’s total sales. The Company has pursued development of new markets by making it one of its management targets from the perspective ofstrengthening the business portfolio.
Focusing our efforts on entering the aircraft industry in particular, the Company successfully delivered the MILL7(clay model milling machine) to one of Japan’s leading heavy industry manufacturers.
Also in order to respond to the trend of automation of measurement work, the Company developed a robot automatic
measurement system that is expected to become the next generation of core products and delivered the first unit to aleading heavy industry manufacturer and a leading automobile manufacturer.
Going forward, the Company will strive to cultivate such new markets and expand transactions of new products.

Robot automatic measurement
system delivered to a leading
automobile manufacturer

TOKYO BOEKI MATERIALS LTD. (former TOKYO BOEKI STEEL & MATERIALS LTD.)

Company name changed to TOKYO BOEKI MATERIALS LTD.
As of January 1, 2017, TOKYO BOEKI STEEL & MATERIALS LTD. changed its company name to TOKYO BOEKI MATERIALS LTD.
The Company was established by spin off from Tokyo Boeki Ltd. (currently Tokyo Boeki Holdings Corporation) in October
2006 by taking over the refractory materials, steel and raw materials businesses of the Tokyo Boeki Group. The Company
has mainly engaged in the trading business. However, in order to expand its business to achieve the Tokyo Boeki Group’s
VISION 2020, the Company is establishing a value chain system by providing integrated service from development andmanufacture of refractory materials to sale and maintenance of such materials.
The company made a fresh start by change its name with a view to develop our business in the steel and resource andenergy sectors.
The Company aims to contribute to the Group by continuing innovations, reforms and challenges through “one for all” spirits.
TOKYO BOEKI GROUP

Materials, Resource and Metal Industry Group

Domestic GroupMILL7 delivered to a leading
heavy industry manufacturer

Technology, Automobiles and Information Industry Group

Domestic Group10

Domestic GroupTB-eye LTD.

Opened the Technical Center
The Company’s Technical Division and Construction Division relocated their offices in November 2016 and newly
opened the Technical Center in Chuo-ku, Tokyo.
This move has enabled the swift performance evaluation testing of products by the Technical Division, as well as theprovision of a full range of customer services through cooperation between the Technical Division and the Construction Division.
Furthermore, the Technical Center also has a showroom where customers can try the Company’s devices from a lineup offering standard products to the latest products.
The Company will take this opportunity to commit to further earning patronage of all.

Medical, Life and Science Industry Group

Facility Name: Technical Center
Location: 4F Kanematsu Building, 2-14-1 Kyobashi, Chuo-ku, Tokyo

Domestic Group

Kanematsu Building

TB-eye LTD.

Promotion of OEM
The Company has been handling mainly imported camera systems and has provided total service from on-site
surveys to construction and after-sales services. Currently, the Company is deepening total service in response to awide variety of market needs through the launch of TB-eye brand products.
Going forward, the Company will make use of its technological strength to promote OEM mainly of IP camera systems supporting multi-vendors, street security camera systems, and analog HD camera systems and offer various
solutions based on its proposal and on-site capabilities.

TB-eye brand product

Domestic GroupTOKYO BOEKI MEDISYS INC.

Exhibit at “JACLaS EXPO 2016,”
the clinical laboratory systems exhibition
The Company exhibited the self-developed automated clinical analyzer “BiOLiS” series for medical examinations at
the exhibition, held at PACIFICO Yokohama in September 2016.
This series boasts a sales record of about 7,000 units, due to its compact size and highly performance processing
power, easy operability, and lower running cost. The Company exhibited at this exhibition the new product “BiOLiS30i” launched in spring of last year and medium-size “BiOLiS 50i”.
Many people visited the Company’s booth to see a real machine of BiOLiS 30i, and the exhibition was successfully
finished. We have confidence in sales expansion in the future.
The Company strives to improve its customer satisfaction and brand power of BiOLiS series with collaboration between development, sales and service engineers.
Full view of the exhibition booth

11

TOKYO BOEKI GROUPCONSOLIDATED COMPANIESDomestic Group Companies

Overseas Group Companies

TB-eye LTD.

USA

President: Kim Wonyong
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

TOKYO BOEKI NORTH AMERICA, INC. (KENTUCKY)
President: Masaaki Sugihara
Business Description: S ales and service of 3D measurement instruments andrelated software

TOKYO BOEKI MACHINERY LTD.

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

AUSTRALIA

President: Hideshige Tsubouchi
Business Description: S ales 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 ENGINEERING, LTD.

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

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

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, andmaintenance of 3D measurement instruments and related
softwareTOKYO 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

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

CHINA

TOKYO BOEKI (CHINA) LTD. (SHANGHAI)TOKYO BOEKI (BEIJING) LTD. (BEIJING)
President: Hirofumi Yanagawa
Business Description: Business development and import/export related to materials, resources, and metals

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

THAILANDTBTS (THAILAND) CO., LTD. (BANGKOK)Managing Director: Yasuki 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: Import/export and sales of scientific instruments for educational and science and technology-related facilities in the
CIS nations

T.B. TECH CO., LTD.
President: Toshiharu SaburiBusiness Description: Contract development of software and packaged software,building network systems, system outsourcing, consultancy services, temporary staffing

T-BICS INC.
President: Hiromichi SugiuraBusiness Description: N on-life insurance agency business and life insurance
solicitation business(As of June 27, 2017)TOKYO BOEKI GROUP

12

FINANCIAL REVIEW
Financial Highlights
Net Sales

44,791(Million yen)

48,7802012

46,031

2013

2014

44,75642,4492015

2016

Ordinary Income

2012

2,995

2013

2014

2013

2014

2,146

2,229

2016

Earnings Per Share

2012
(Yen)

2013

2014

340.99402.73337.94394.4528,832

13

TOKYO BOEKI GROUP

2013

2014

2015

2016

2015

2016
(Million yen)

2,020

2015

2016

2012

(Million yen)

Net Assets

31,031

13,074

2012

2,998

Total Assets / Net Assets
Total Assets

426.61

3,648

1,848

1,715

2,916

2015

3,233

Net Income Attributable to Owners of Parent

3,963
3,279

(Million yen)

3,233

2012

(Million yen)

3,470

3,038

Operating Income

32,455

16,913

2013

33,777

19,4392014

35,123

20,2662015

22,4452016

Consolidated Financial Statements
Consolidated Balance Sheets
Account Item

(Million yen)

2016

2015

As of March 31, 2017

As of March 31, 2016

AssetsConsolidated Statements of Income
Account Item

(Million yen)

2016

2015

April 1, 2016 –March 31, 2017

April 1, 2015 –March 31, 2016

Net sales

42,44944,756

Current assets

27,72026,793

Cost of sales

28,76032,521

Non-current assets

7,402

6,984

Gross profit

13,688

12,234

2,699

2,386

Selling, general & administrative expenses

10,040

9,236

507

423

Operating income

3,648

2,998

4,194

4,173

Non-operating income

376

237

35,123

33,777

Non-operating expenses

61

319

3,963

2,916

Extraordinary income

20

20

Extraordinary loss

581

19

Income before income taxes

3,402

2,917

Income taxes

1,373

1,066

2,029

1,850

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

Ordinary income

Liabilities

Current liabilities
Non-current liabilities
Total liabilities

11,758

12,685919

826

12,677

13,511

Net assets

21,52919,894

Net income

Capital stock

5,000

5,000

Net income attributable to non-controlling interests

82Retained earnings

16,95815,227

Net income attributable to owners of parent

2,020

1,848

(428)

(332)

Accumulated other comprehensive income

771

232

Non-controlling interests

144

139

Total net assets

22,445

20,266

Total liabilities and net assets

35,123

33,777

Shareholders’ equity

Treasury stock

TOKYO BOEKI GROUP

14

COMPANY OUTLINE / STOCK INFORMATION
Company Outline (As of March 31, 2017)
Tokyo Boeki GroupTokyo Boeki Holdings Corporationand 17 group companies

Established

October 30, 1947

Capital Stock

5.0 billion yen(Shareholders’ equity: 21.5 billion yen)

Employees

954

Stock Information (As of March 31, 2017)
Total Number of Authorized Shares
Total Number of Stocks Issued

Number of Shareholders

38,519,920 shares
Common Stock 4,522,115 shares(Excludes treasury stock)
Class A Preferred Stock 1,700,000 shares
117

Name of Shareholder

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, 2017)
Board of Directors / Operating Officers
Director, Group Supreme Advisor

Hiroshi MachidaDirector, President & CEO

Sanshiro (Tomihiro) Katoh

Director, Executive Vice President

Hideshige Tsubouchi

Director & Senior Managing Operating Officer

Ikuro Kida

Operating Officer

Tsunetoshi Sakai

Numbers ofRatio of
Stocks Held Shareholding

Tokyo Boeki Ltd.

1,700,000 shares

27.32%

Tokyo Boeki Employee Share Holding Commission

662,000 shares

10.64%

Tokyo Marine & Nichido Fire Insurance Co., Ltd.

498,000 shares

8.00%

The Toa Reinsurance Company, Limited

408,000 shares

6.56%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

249,000 shares

4.00%

Nippon Life Insurance Company

120,000 shares

1.93%* 1,700,000 shares of Tokyo Boeki Ltd. are Class A Preferred Stock.

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

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