Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2021
[Japanese GAAP]May 13, 2021
Company name: CKD Corporation
Stock exchange listing: Tokyo,Nagoya
Code number: 6407
URL: https://www.ckd.co.jp/english/
Representative: Kazunori Kajimoto
President
Contact: Tadashi Takezawa
General Manager, Accounting Dept
Phone: +81-568-74-1006
Scheduled date of Annual General Meeting of Shareholders: June 25, 2021
Scheduled date of commencing dividend payments: June 07, 2021
Scheduled date of filing annual securities report: June 25, 2021
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 01, 2020 to March 31, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2021
106,723
6.0
7,698
47.2
7,823
45.6
5,273
42.9
March 31, 2020
100,717(12.9)
5,230
(3.7)
5,374
(0.9)
3,689
(23.0)(Note) Comprehensive income:Fiscal year ended March 31, 2021:¥
9,174 million [314.9%]
Fiscal year ended March 31, 2020:¥
2,211 million [(22.8) %]Basic earnings per Diluted earnings per Rate of return on
share
share
equityOrdinary profit tototal assets ratio

Yen
Yen
%
Fiscal year ended
March 31, 2021
80.23
80.21
5.9
March 31, 2020
59.56
59.56
4.5
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2021:
Fiscal year ended March 31, 2020:

Operating profit to
net sales ratio

%

%

5.4
3.9
¥
¥

7.2
5.2
(1) million(0) million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2021
March 31, 2020
(Reference) Equity:

Net assets

Million yen

152,726
136,059
As of March 31, 2021:
As of March 31, 2020:

Capital adequacy ratio

Million yen¥¥

97,61782,46597,497 million
82,287 million

Net assets per share

%

Yen

63.8
60.5

1,463.15
1,321.28(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2021
March 31, 2020

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

17,521
17,250(2,786)(4,555)2,423(6,022)35,913
18,409

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2020

-

5.00

-

13.00

18.00

1,119

30.2

1.4

March 31, 2021

-

8.00

-

17.00

25.00

1,665

31.2

1.8

-

17.00

-

18.00

35.00

Fiscal year ending
March 31, 2022

30.7

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 01, 2021 to March 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen

Six months ending
September 30, 2021
Full year%

Yen

59,00018.1% Million yen

5,500

128.6

% Million yen

5,500

122.4

% Million yen

3,700

128.6

56.30

118,000

10.6

11,00042.9

11,000

40.6

7,500

42.2

114.11* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2021:
67,909,449 shares
March 31, 2020:
67,909,449 shares2) Total number of treasury shares at the end of the period:
March 31, 2021:
1,274,439 shares
March 31, 2020:
5,630,407 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2021:
Fiscal Year ended March 31, 2020:

65,724,412 shares
61,954,797 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 01, 2020 to March 31, 2021)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2021
March 31, 2020

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

88,29684,861

4.0(12.7)

4,813
3,451

39.5
15.5

5,674
4,155

36.5
22.4

3,941
3,058

28.9
(15.3)

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2021
March 31, 2020

Yen

Yen

59.98
49.37

59.96
49.37

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2021
March 31, 2020
(Reference) Equity:

Net assets

Million yen

131,786
120,807
As of March 31, 2021:
As of March 31, 2020:

Capital adequacy ratio

Million yen¥¥

86,01974,60686,019 million
74,534 million

Net assets per share

%

Yen

65.3
61.7

1,290.90
1,196.78*This flash report is exempt from auditing by certified public accountants or audit firms.
*Notes on the appropriate use of financial forecasts and other special instructions
The performance forecasts and other forward-looking statements presented in this report are based on information currently available
and certain assumptions deemed to be reasonable. Actual performance, etc. may differ substantially due to various factors.
CKD Corporation (the Company) is planning to hold a briefing session for institutional investors and analysts on the conference callon May 13, 2021. Any explanatory materials used in this session will be posted on the Company's website immediately afterward.

Table of Contents of Supplementary Materials
1. Overview of business results.........................................................................................................................

2(1) Overview of business results for the fiscal year......................................................................................

2(2) Financial position ...................................................................................................................................

2(3) Cash flows...............................................................................................................................................

3(4) Consolidated financial forecasts and outlook..........................................................................................

4(5) Basic policy for allocation of profit and dividends for FY2020 and FY2021.........................................

4

2. Basic approach to selection of accounting standards....................................................................................

4

3 Consolidated financial statements.................................................................................................................

5(1) Consolidated Balance Sheets...................................................................................................................

5(2) Consolidated Statements of Income and Comprehensive Income...........................................................

7

Consolidated Statements of Income........................................................................................................

7

Consolidated Statements of Comprehensive Income..............................................................................

9(3) Consolidated Statement of Changes in Net Assets .................................................................................

10(4) Consolidated Statements of Cash Flows...................................................................................................

12(5) Notes to the consolidated financial statements .......................................................................................

13

Notes regarding assumptions as a going concern ...................................................................................

13

Material Items which form the basis for preparation of the consolidated financial statements .............

13

Significant Accounting Estimates............................................................................................................

16

Segment Information, etc. ......................................................................................................................

17

Per share information..............................................................................................................................

22

Material subsequent events ....................................................................................................................

22

4. Others ..........................................................................................................................................................

23

Production, orders and sales ..................................................................................................................

23

― 1 ―

1.Overview of business results(1) Overview of business results for the fiscal year
[1] Review of the fiscal year
During the current fiscal year, the Japanese economy experienced an uptick in exports and production activity and a trend ofrecovery, albeit moderate, despite the effect of the prolonged COVID-19 pandemic in addition to the impact of the U.S. – China
trade issue.
The trend of postponement or cancellation of capital expenditure due to deterioration in corporate earnings and the uncertain
outlook continued. In this environment, in the electronics industry, investments were made against a background of expansion inapplications of telecommunications technologies such as those for 5G and IoT, and the economic remained robust.
Overseas, in the U.S., restrictions on activities were relaxed, and employment and consumption recovered backed by economic
measures and the vaccine rollout. In addition, in China, production activity in manufacturing industry, has proceeded to normalize
overall and there was active capital expenditure, including investments related to 5G and rechargeable batteries. Meanwhile, inSoutheast Asia, economic activity resumed as measures were taken to prevent the spread of COVID-19 infections, but the pace ofrecovery was only moderate.
Under such circumstances, in results of the consolidated fiscal year, the CKD Group recorded net sales of 106,723 million yen in
net sales, up 6.0% year on year, 7,698 million yen in operating profit, up 47.2% year on year, 7,823 million yen in ordinary profit,up 45.6% year on year, and 5,273 million yen in profit attributable to owners of parent, up 42.9% year on year.
[2] Results of operations by segment<Automatic Machineries >In the industrial machinery business, although sales of lithium ion battery manufacturing systems increased, sales of 3D solder
print inspection equipment declined. Sales of automatic packaging systems also decreased.
As a result, sales amounted to 14,163 million yen, down 10.3 % year on year, and segment profit was 1,659 million yen, down
43.3 % year on year, mainly due to changes in the sales mix and an increase in development expenses related to new equipment
for the Chinese market.
<Components>
In the Japanese market, teleworking-related demand overlapped with the spread of 5G, and sales for semiconductor manufacturing
equipment increased due to growth in capital expenditure. Meanwhile, there was a decrease in sales for both automobile
manufacturing equipment and machine tools although a recovery in demand was observed for some products.
Overseas, sales increased in China, where production activity in manufacturing industry has normalized overall, and in South
Korea and Taiwan, where semiconductor capital expenditure remained robust. On the other hand, sales decreased in Southeast
Asia due to the spread of COVID-19.
As a result, sales amounted to 92,560 million yen, up 9.0% year on year, and segment profit was 10,076 million yen, up 59.8%
year on year, due to the effect of productivity improvements and cost reductions.

(2) Financial position
Total assets at the end of the fiscal year on the consolidated basis were 152,726 million yen, up 16,667 million yen from theend of the previous consolidated fiscal year. The main factors included increases in cash and deposits and investment securities
despite decreases in trade receivables, property, plant and equipment and deferred tax assets.
Liabilities were 55,108 million yen, up 1,514 million yen from the end of the previous consolidated fiscal year. This was
mainly due to increases in trade payables, advances received, deferred tax liabilities, income taxes payable and accounts payable– facilities, despite decreases in loan payable and accrued consumption taxes.
Net assets were 97,617 million yen, up 15,152 million yen from the end of the previous consolidated fiscal year.
Capital adequacy ratio was 63.8%, up a 3.4point from the previous consolidated fiscal year.

― 2 ―(3) Cash flows
Cash and cash equivalents (hereinafter, cash) at the end of the consolidated fiscal year were 35,913 million yen, up 17,503
million yen from the end of the previous consolidated fiscal year.
Changes in cash flows by categories through the consolidated fiscal year were as follows.

Cash flows from operating activities
Through the consolidated fiscal year under review, net cash provided by operating activities was 17,521 million yen (up 1.6%
year on year).
The main factors accounting for the cash flows were profit before income taxes of 7,727 million yen, depreciation of 5,507
million yen, a decrease in trade receivables of 2,119 million yen and an increase in trade payables of 2,102 million yen.

Cash flows from investing activities
Through the consolidated fiscal year under review, net cash used in investing activities was 2,786 million yen (down 38.8% year
on year).
The main factor accounting for the cash flows was purchase of property, plant and equipment of 2,727 million yen.

Cash flows from financing activities
Through the consolidated fiscal year under review, net cash provided by financing activities was 2,423 million yen(compared with 6,022 million yen used in the previous year).
Factor contributing positively to cash flows from financing activities was net increase in proceeds from issuance of shares
resulting from exercise of share acquisition rights of 7,309 million yen. These cash flows were offset by repayments of long-termborrowings of 3,584 million yen and dividends paid of 1,340 million yen.
Reference: Changes in cash flow-related indexes
Fiscal year ended Fiscal year ended
March 31, 2017
March 31, 2018
Capital adequacy
66.7
61.1
ratio （%）
Capital adequacy
ratio based on
82.0
112.0
current market
price （%）
Ratio ofinterest-bearing
0.4
2.1
debt to cash flow(times)Interest coverage
ratio (times)

259.4

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

58.6

60.5

63.8

45.1

67.7

100.7

(12.7)

1.4

1.2(22.6)

77.0

84.3

77.1

Capital adequacy ratio (%) = equity ÷ total assets
Capital adequacy ratio based on current market price (%) = total market value of common stock ÷ total assets
Ratio of interest-bearing debt to cash flow (times) = interest-bearing debt ÷ cash flow
Interest coverage ratio (times) = cash flows ÷ interest payments
Notes: 1. All indicators are calculated based on consolidated financial figures.
2. Total market value of common stock is calculated based on the number of shares outstanding, excluding treasury
stock.
3. Cash flows from operating activities are used for figures for cash flow.
4. Interest-bearing debt includes all balance-sheet debt for which interest payments are being made.
For interest payment, interest paid from consolidated financial statements of cash flows are used.

― 3 ―(4) Consolidated financial forecasts and outlook
The outlook for the global economy in the fiscal year ending March 31, 2022 remains highly uncertain with concerns over
infection spread due to new strains of COVID-19 and restrictions on activities. Despite this, there is growing hope about
containment of the infectious disease due to the vaccine rollout and additional economic measures by individual governments,
and it is expected that the tone of recovery will continue.
Amid significant changes in social values and the market itself and promotion of digitalization, the business environment
surrounding the Group is expected to experience a steady global recovery due to rising automation and labor-saving demand in
manufacturing industry, expanding investment in the electronics industry, including capital expenditure in semiconductors, andincreasing demand for electric vehicles.
However, it will be necessary to continue monitoring the impact of trade friction between the U.S. and China, risks such as
supply shortages of some parts and materials, and the impact of earthquakes and natural disasters, as well as the impacts ofgeopolitical risk and exchange rate fluctuations.
Below are the consolidated projections for the next fiscal year.
The exchange rate is estimated at ¥105 to one U.S. dollar.

Net sales

Six months ending
September 30,2021
Million yen
59,000

Full year
Million yen
118,000

Operating profit

5,500

11,000Ordinary profit

5,500

11,000

Profit attributable to owners ofparent

3,700

7,500

These projections are based on information available as of this release. The actual results may differ due to various factors fromnow onwards.

(5) Basic policy for allocation of profit and dividends for FY2020 and FY2021
Regarding to the return of profit to shareholders, while the company try to increase corporate value through capital investment
and R&D investment that strengthen the management base and further expand business, in the return of profit to shareholders thecompany have a dividend payout ratio of 30% as a rough target.
Under this policy, it was decided at Board of Directors of CKD Corporation on May 13, 2021 that year-end dividends of ¥17
per share would be paid on June 7, 2021. Combined with the ¥8 per share paid as interim dividends in December 2020, theannual dividends for the fiscal year will amount to ¥25 per share, up ¥7 from the end of the previous consolidated fiscal year.
Projected dividends for the next fiscal year are ¥17 per share at the end of the second quarter and year end dividend of ¥18 pershare, for a total of ¥35 per share.

2. Basic approach to selection of accounting standards
To enable comparison between companies and years, the CKD Group creates its consolidated financial statements according to“the Rules for Terminology, Forms, and Preparation of Consolidated Financial Statements (Ordinance of the Ministry of
Finance No. 28 in 1976)” (excluding Chapter 7 and 8).
When applying international accounting standards, domestic and overseas information is considered and applied as appropriate.

― 4 ―3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of March 31,2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Trade accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets― 5 ―As of March 31,2021

18,987
24,77736,37523,492

4,031

4,134

215
9,652
5,132
21,1901,456(22)85,420227
10,018
4,012
22,298
1,286(55)
101,789

19,793
11,222
1,800
6,142
551
722
40,232
1,869

19,443
10,392
1,655
6,191
594
715
38,992
1,433

6,028
147
1,004
1,389
(33)
8,537
50,639136,059

8,182
812
263
1,287
(35)
10,51050,936
152,726

(Million yen)
As of March 31,2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease obligations
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for product warranties
Provision for loss on order received
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for environmental measures
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets― 6 ―As of March 31,2021

12,994
2,369
6,087
129
3,564
226
3,170
1,199
279
396
73
7,269
37,76015,360
2,833
6,158
16
3,520
218
3,472
1,624
389
344
69
71
7,561
41,64016
13,270
217
134
65
414
227
1,487
15,83353,594

10,244
254
635
4
424
229
1,675
13,46855,10811,016
12,017
61,992(3,952)
81,074

11,016
16,35865,921(895)
92,401

1,898

3,386

206
(891)
1,213
71
105
82,465136,059

1,845
(136)
5,095
120
97,617
152,726

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Personnel expenses
Retirement benefit expenses
Packing and transportation costs
Rent expenses
Outsourcing expenses
Depreciation
Provision of allowance for doubtful accounts
Research and development expenses
Enterprise tax
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Administrative service fee income
Insurance claim income
Gain on valuation of derivatives
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Share of loss of entities accounted for using equity
methodLoss on valuation of derivatives
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sales of investment securities
Subsidy income
Reversal of provision for environmental measures
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current
assetsLoss on valuation of investment securities
Provision for environmental measures
Total extraordinary losses
Profit before income taxes― 7 ―For the fiscal year
ended March 31,2021

100,717
74,581
26,135

106,723
77,95028,773

9,412
434
1,301
1,376
1,295
776
(8)
3,383
357
2,576
20,905
5,230

9,611
406
1,453
1,361
1,296
737
30
3,578
381
2,217
21,074
7,698

17
151
125
135
78
271
781

16
125
62
73
25
198
243
746

225
150

205
138

0

1

27
80
152
637
5,374

134
142
621
7,823

3
31
32
13
81

1
525
527

1
130
53

4
96

32

505

1
220
5,235

1
15
622
7,727

(Million yen)
For the fiscal year
ended March 31,2020
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

1,536
2
1,539
3,695
5
3,689

― 8 ―

For the fiscal year
ended March 31,2021
2,180
264
2,445
5,282
8
5,273

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests― 9 ―For the fiscal year
ended March 31,2021

3,695

5,282

(218)
(1,232)
(32)

1,487
1,650
754

(0)

0

(1,484)
2,211

3,892
9,174

2,216

9,155

(5)

19

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2020(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Exercise of shareacquisition rights
Employee incentive
welfare funds
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Exercise of shareacquisition rights
Employee incentive
welfare funds
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodCapital surplus

11,016

Retained earnings

12,390Treasury shares

59,119Total shareholders'equity(4,905)77,619(5)
11,016

12,390(5)

59,113(4,905)77,614

(805)

(805)

3,689

3,689
(0)

(0)

90

52

143

(701)

701

-

239

199

438

(5)

(5)

-

(372)

2,878

953

3,459

11,016

12,017

61,992(3,952)

81,074

Accumulated other comprehensive income
Total
Share
Valuation
Foreignaccumulated acquisition Non-controlling
difference on
currency Remeasurementsinterestsof definedotherrightsavailable-for-sale translation benefit
planscomprehensive
securities
adjustment
income
2,117
1,427
(858)
2,686
138

Total net
assets80,444
(5)

2,117

1,427

(858)

2,686

-

138

80,439

(805)
3,689
(0)
143
438
(5)
(218)

(1,221)(32)(1,473)71(32)(1,434)(218)(1,221)(32)(1,473)

71

(32)

2,025

1,898

206

(891)

1,213

71

105

82,465― 10 ―

For the fiscal year ended March 31,2021(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Exercise of shareacquisition rights
Employee incentive
welfare funds
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders'equity11,016

12,017

61,992(3,952)

81,074

11,016

12,017

61,992(3,952)

81,074(1,342)(1,342)

5,273

5,273

(11)

(0)

(0)

28

16
-

4,351

3,029

7,381

(1)

(1)

-

4,340

3,929

3,057

11,326

11,016

16,35865,921(895)

92,401

Accumulated other comprehensive income
Total
Share
Remeasurements accumulated acquisition Non-controllinginterestsof definedotherrightsbenefit plans comprehensive
income
1,898
206
(891)
1,213
71
105

Valuation
Foreigndifference on
currency
available-for-sale translation
securities
adjustment
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Exercise of shareacquisition rights
Employee incentive
welfare funds
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

1,898

206

(891)

1,213

71

105

Total net
assets82,46582,465(1,342)
5,273
(0)
16
7,381
(1)
1,487

1,639

754

3,882

(71)

15

3,825

1,487

1,639

754

3,882

(71)

15

15,152

3,386

1,845

(136)

5,095

-

120

97,617― 11 ―

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Share of loss (profit) of entities accounted for using
equity method
Increase (decrease) in provision for bonuses
Increase (decrease) in accounts payable - bonuses
Decrease (increase) in retirement benefit asset
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Subsidies received
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Purchase of treasury shares
Dividends paid
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Proceeds from issuance of share acquisition rights
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period― 12 ―For the fiscal year
ended March 31,2021

5,235
5,822
130

7,727
5,507
-

0

1

(1,868)
1,990
378(1,429)
3,451
774
1,232
1,421
17,139
170
(223)
(967)
1,099
32
17,250

91
159
422
2,119
252
2,102
854
(665)
18,575144(207)(1,800)85
725
17,521(321)(3,583)
8
(498)
(280)
114
6
(4,555)(0)156(2,727)
7
(231)
(211)
200
21
(2,786)(2,063)270(3,581)
(45)
(0)
(805)

18
400
(3,584)(129)(0)(1,340)

432

7,309

78
(306)
(6,022)

(250)
2,423

(290)

344

6,381
12,02818,40917,503
18,40935,913

(5) Notes to the consolidated financial statements
Notes regarding assumptions as a going concern
Not applicable
Material Items which form the basis for preparation of the consolidated financial statements
1. Scope of consolidation
Consolidated subsidiaries: 20 companies
The names of companies:(4 Japanese companies)CKD Shikoku Seiko CorporationCKD Global Service CorporationCKD Field Engineering CorporationCKD NIKKI DENSO CO., LTD.
(16 overseas companies)CKD THAI CORPORATION LTD.
CKD SINGAPORE PTE. LTD.
CKD USA CORPORATIONCKD Korea Corporation
M-CKD PRECISION SDN. BHD.
CKD (China) Corporation
CKD (Shanghai) Corporation
Taiwan CKD CorporationCKD VIETNAM ENGINEERING CO., LTD.
PT CKD TRADING INDONESIAPT CKD MANUFACTURING INDONESIACKD ILLINOIS LLC
CKD MEXICO, S. de R.L. de C.V.
CKD India Private Limited
CKD Europe B.V.
Nikki Denso International Korea Co., Ltd.
2. Application of equity method
Non-consolidated subsidiaries accounted for by the equity method: 1 company
Name of the company: EPSITEC S.R.L.
3. Fiscal year of consolidated subsidiaries
Out of our consolidated subsidiaries, the fiscal year-ends on December 31 for CKD (China) Corporation, CKD (Shanghai)
Corporation, and CKD MEXICO S. de R.L. de C.V., and we provisionally close their accounts on the consolidated closing date(March 31).

― 13 ―

4. Accounting policies(1) Basis and method of evaluation of significant assets[1] Marketable Securities
Available-for-sale securities
With market value: At fair market value as of the account closing date (changes in fair value are accounted for under the
direct addition to the net assets method, and the moving average method is used to calculate the salevalue.)
Without market value: At cost, as determined by the moving average method[2] Derivatives
At fair value[3] Inventories
a. Merchandise and Automatic machineries
Recorded at cost using the individual method (values on the balance sheet are
finished goods finished goods
subject to the book value reduction method based on decreased profitability)
Components merchandise Mainly recorded at cost using the periodic average method (values on theand finished goods
balance sheet are subject to the book value reduction method based on
decreased profitability)b. Work in process Automatic machineries
Recorded at cost using the individual method (values on the balance sheet arework in process
subject to the book value reduction method based on decreased profitability)c. Raw materials
and supplies

Components
work in process

Mainly recorded at cost using the periodic average method (values on thebalance sheet are subject to the book value reduction method based on
decreased profitability)

Raw materials

Mainly recorded at cost using the periodic average method (values on thebalance sheet are subject to the book value reduction method based on
decreased profitability)

Supplies

Mainly recorded at cost using the last purchase price method (values on thebalance sheet are subject to the book value reduction method based on
decreased profitability)(2) Depreciation methods for material depreciable assets[1] Property, plant and equipment (excluding lease assets)
Mainly calculated by the declining-balance method.
Useful lives of property, plant and equipment are as follows:
Buildings and structures: 3-50 years
Machinery, equipment and vehicles: 3-17 years[2] Intangible assets (excluding lease assets)
Calculated by the straight-line method.
Capitalized software for internal use is amortized by the straight-line method over the estimated internal useful life (5 years).
[3] Lease assets
The method employed is to take the useful life of the asset as the term of the lease and depreciate the residual value to zero.
(3) Accounting for reserves and allowances[1] Allowance for doubtful accounts
To prepare for the possible losses on doubtful accounts, provisions for normal accounts in good standing are calculated using
historical default ratios. Provisions for specific doubtful accounts are calculated by examining the probability of recovery for
individual accounts and setting aside an amount equivalent to the portion deemed to be unrecoverable.
[2] Provision for bonuses
To cover bonus payments to employees, a provision for bonuses is made based on an estimated amount of payment for the year
under review.
[3] Provision for product warranties
To prepare for claims regarding products delivered to customers, a provision for a reasonably projectable amount of expenses
to be incurred in the future is made.
[4] Provision for losses on order received
To prepare for losses related to future order contracts, a provision for the estimated losses at the end of the current consolidated
fiscal year is made.
[5] Provision for environmental Measures
To prepare for expenses related to the management of waste and removal of harmful substances obligated under laws andregulations, a provision for a reasonably projectable amount of expenses is made.

― 14 ―

(4) Accounting treatment of retirement benefits[1] Method of attributing expected benefit to periods
In calculating retirement benefit obligations, expected benefits are attributed to periods on a payment calculation basis.
[2] Accounting method of actuarial gains and losses and prior service costs
Prior service costs are amortized on a straight-line basis over a certain period (12 years) within the average remaining service
years for employees at the time of recognition.
Actuarial gains and losses are amortized on a straight-line basis over a certain period (12 years) within the average remaining
service years for employees at the time of recognition and allocated proportionately from the fiscal year following therespective fiscal year of recognition.
[3] Adoption of simplified method for small-scale companies
The simplified method payment, which assumes benefit obligations to be equal to the benefits payable assuming the voluntary
retirement of all employees at fiscal year-end, is applied to some consolidated subsidiaries in the calculation of liabilities
regarding the payment of retirement benefits and retirement benefit expenses.
(5) Accounting method of material revenues and expenses
The percentage-of-completion method is applied to construction projects recognized to hold certainty of outcomes for the portion
completed by the end of the consolidated fiscal year under review, while the completed-contract method is applied to theremaining construction projects. Moreover, the cost-to-cost method is applied for the percentage of completion estimate at the endof the consolidated fiscal year under review for construction projects that use the percentage-of-completion method.
(6) Foreign currency translation of material assets and liabilities
Monetary assets and liabilities denominated in foreign currencies are translated at the current exchange rates in effect at eachfiscal year-end date and the resulting foreign exchange gains or losses are recognized as income or expenses.
Assets and liabilities of the foreign consolidated subsidiaries are translated at the current exchange rates in effect at each fiscal
year-end date, and revenue and expense accounts are translated at the average rate of exchange in effect during the year. The
amounts of translation adjustments are included in the foreign currency translation adjustments under net assets.
(7) Scope of cash equivalents in consolidated statements of cash flows
Currency on hand, bank deposits, and all highly liquid short-term investments with a maturity of three months or less whenpurchased and which are readily convertible into cash and are exposed to insignificant risk of changes in value are consideredcash equivalents.
(8) Other material items for preparing the consolidated financial statements
Accounting for Consumption Tax
The accounting treatment of the consumption tax and the local consumption tax is based on the tax exclusion method.

― 15 ―

Significant Accounting Estimates
Valuation of inventories in the Company’s Component segment(1) Amount recorded on consolidated financial statements for the fiscal year under review(Million yen)Account

Fiscal year ended March 31, 2021
(April 1, 2020 to March 31, 2021)

Merchandise and finished goods(340)

Raw materials and supplies(1,030)Total(1,371)(Note) The impact on operating profit in the current fiscal year is (48) million yen (After offset of the reversal amount).
(2) Information concerning the content of significant accounting estimates for the issue identified
Inventories in the Company’s Components business are primarily composed of a wide variety of components, and as many types
and variations of products are produced, certain volumes of inventories are held for the leading components in order to respond tofluctuations in order volume and short delivery deadlines. Computation of write-down of the Company’s Component productinventories is combined with automatic calculation of comparison with net selling prices in the market, and a write-down rate
based on retention periods, etc. by system and a method of manually calculating the write-down amount by evaluating the future
sales outlook for inventories with low shipping and consuming results compared to holding volume.
The Company estimates the future sales prospects of inventories in this assumption based on conditions in the semiconductor,
automobile, and machine tool markets, to which the leading customers belong, political risk between the U.S. and China, andcustomer investment plan forecasts associated with these factors.
When it is necessary to revise the assumptions used in these estimates due to changes in conditions in the semiconductor,
automobile, and machine tool markets, there may be a material write-down of inventories judged to have no sales prospects in thenext fiscal year.

― 16 ―

Segment information, etc.
Segment information
1. Outline of reporting segments
The reporting segments of the CKD Group refers to the constituents of CKD and its subsidiaries that separate financial statements
are available and that are the scope of regular discussion by the Board of Directors of CKD to determine how corporate resources
are to be allocated and to evaluate business performance.
The constituents of the CKD Group consist of product segments, which include two reporting segments of Automatic Machineries
and Components separated based on the type, properties, and sales method of products.
In Automatic Machineries, automatic packing system, lithium-ion battery manufacturing system, and other large-scale facilities are
manufactured and sold. They are produced upon receiving an order.
In Components, functional parts that can be applied to semiconductor-related businesses, automobile-related industries, and othermarkets of diversified kinds are manufactured and sold. They are produced by forecasting demands of each item.
2. Calculation methods of net sales, profit/loss, assets, liabilities and other accounting items for each reporting segment
The accounting methods used for financial statements of respective reporting segments are basically the same as those stated in“Important matters fundamental to the preparation of consolidated financial statements.”
The income in each reporting segment are based on operating profit. Internal gains and amount of transfer among segments are
based on current market prices.

― 17 ―

3. Information on reporting-segment-wise sales, profit/loss, assets, liabilities, and other accounting items
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Million yen)
Reporting segment
Automatic
MachineriesComponents

AmountAdjusted(Note 1)

Total

Consolidated(Note 2)

Net sales
15,792

84,924

100,717－

100,717

－

140

140

(140)

－

Total

15,79285,065

100,857(140)

100,717

Segment profit

2,925

6,306

9,231

(4,001)5,230

Segment assets

22,381

98,685

121,067

14,991

136,059

Depreciation and amortization

694

4,846

5,540

281

5,822

Increase in property, plant andequipment and intangible assets

306

2,517

2,824

236

3,060

Sales to external customers
Intersegment sales or transfers

Other items

Note 1: Details of the amount adjusted(1) The amount of adjustment for Net sales of ¥(140) million is derived from elimination of transactions among segments.
(2) The amount of adjustment for Segment profit of ¥(4,001) million includes¥31million for elimination of transactions among
segments and ¥(4,032) million as the total company expenses that are not allocated to each reporting segment. The total company
expenses mainly refers to expenses related to administration and long-term R&D expenses of CKD and costs related to CKDGlobal Service Corporation.
(3) The amount of adjustment for Segment assets of ¥14,991million is the total company assets not allocated to each reporting
segment. This mainly consists of working surplus funds (cash and deposits) and long-term investment funds (investment
securities)and assets of management department.
(4) The amount adjusted for depreciation of ¥281million consists of depreciation related to assets for the entire company.
(5) The amount adjusted for increase in property, plant and equipment and intangible assets of ¥236million consists of the amountof property, plant and equipment and intangible assets for the entire company.
Note 2: Segment profit has already been adjusted with operating profit shown in the consolidated statement of income.
Segment assets has already been adjusted with total assets shown in the consolidated balance sheets.

― 18 ―

Fiscal year ended March 31, 2020 (April 1, 2020 to March 31, 2021)(Million yen)
Reporting segment
Automatic
MachineriesComponents

AmountAdjusted(Note 1)

Total

Consolidated(Note 2)

Net sales
14,16392,560106,723－

106,723

－

67

67

(67)

－

Total

14,16392,627

106,791(67)

106,723

Segment profit

1,659

10,076

11,735(4,037)

7,698

Segment assets

18,050104,938

122,988

29,737

152,726

Depreciation and amortization

601

4,644

5,245

261

5,507

Increase in property, plant andequipment and intangible assets

121

3,410

3,531

89

3,620

Sales to external customers
Intersegment sales or transfers

Other items

Note 1: Details of the amount adjusted(1) The amount of adjustment for Net sales of ¥(67) million is derived from elimination of transactions among segments.
(2) The amount of adjustment for Segment profit of ¥(4,037) million includes ¥30million for elimination of transactions among
segments and ¥(4,067) million as the total company expenses that are not allocated to each reporting segment. The total company
expenses mainly refers to expenses related to administration and long-term R&D expenses of CKD and costs related to CKDGlobal Service Corporation.
(3) The amount of adjustment for Segment assets of ¥29,737million is the total company assets not allocated to each reporting
segment. This mainly consists of working surplus funds (cash and deposits) and long-term investment funds (investment
securities)and assets of management department.
(4) The amount adjusted for depreciation of ¥261million consists of depreciation related to assets for the entire company.
(5) The amount adjusted for increase in property, plant and equipment and intangible assets of ¥89million consists of the amount ofproperty, plant and equipment and intangible assets for the entire company.
Note 2: Segment profit has already been adjusted with operating profit shown in the consolidated statement of income.
Segment assets has already been adjusted with total assets shown in the consolidated balance sheets.

― 19 ―

Related information
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
1. Information regarding products and services
Disclosure is omitted as the same information is disclosed in segment information.
2. Information regarding each region[1] Net sales(Million yen)
Japan

China
75,944

Rest of Asia
9,262

Other

Total

12,057

3,452

100,717

Note: 1. Net sales are classified by country or region based on the customer’s location.
2. The amount under “Rest of Asia” is net sales in Asia excluding both Japan and China.
[2] Property, plant and equipment(Million yen)
Japan

China
32,938

Other

Total

6,441

852

40,232

3. Information by principal customer
Of the net sales to outside customers, there are no customers accounting for 10% or more of total net sales under the consolidated
statements of income.
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)
1. Information regarding products and services
Disclosure is omitted as the same information is disclosed in segment information.
2. Information regarding each region[1] Net sales(Million yen)
Japan

China
76,020Rest of Asia
13,852

Other

13,232

Total
3,617

106,723

Note: 1. Net sales are classified by country or region based on the customer’s location.
2. The amount under “Rest of Asia” is net sales in Asia excluding both Japan and China.
[2] Property, plant and equipment(Million yen)
Japan

China
30,922

Other
6,587

Total
1,483

38,992

3. Information by principal customer
Of the net sales to outside customers, there are no customers accounting for 10% or more of total net sales under the consolidated
statements of income.

― 20 ―

Information on impairment losses on non-current assets by reporting segment
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Million yen)
Reporting segments
Automatic
Machineries
Impairment loss

Components

Total
－

130

AmountAdjusted
130

Consolidated－

Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)
Not applicable
Information related to the amount of amortization of goodwill and the unamortized amount of goodwill by reporting
segment
Not applicable
Information on gain on bargain purchase by reporting segment
Not applicable― 21 ―

130

Per share information
FY2019(April 1, 2019 toMarch,31 2020)

FY2020(April 1, 2020 toMarch,31 2021)
Yen

Yen

1,321.28

1,463.15

Basic earnings per share

59.56

80.23

Diluted earnings per share

59.56

80.21

Net assets per share

Note: 1. Below is basis for calculations of basic earnings per share and diluted earnings per share.

FY2019(April 1, 2019 toMarch,31 2020)

FY2020(April 1, 2020 toMarch,31 2021)

Basic earnings per share
Profit attributable to owners of parent(Million yen)Amount not attributable to owners ofordinary shares (Million yen)
Profit attributable to owners ofparent related to ordinary shares(Million yen)
Average number of ordinary shares overthe period (Thousand shares)

3,689

5,273

－

－

3,689

5,273

61,95465,724

－

－

0

0

0

0

The first time of share acquisition rights
The number of share acquisition rights
29,363(Ordinary shares 2,936,300 shares)
The second time of share acquisition rights
The number of share acquisition rights
13,800(Ordinary shares 1,380,000 shares)－

Diluted earnings per share
Adjustments of profit attributable toowners of parent (Million yen)
Increase in ordinary shares (Thousand
shares)Share acquisition rights (Thousand
shares)Summary of potential shares notincluded in calculation of diluted
earnings per share because there are no
dilutive effects

Material subsequent events
Not applicable― 22 ―

4. Others
Production, orders and sales[1] Actual production
Actual production by reporting segment in the consolidated fiscal year under review are as follows.
Segment nameProduction output (Million yen)

Change YoY (％)

Automatic machineries

15,327(15.2)

Components

93,138

+11.4

Total

108,465+6.7

Notes: 1. Intersegment transactions have been offset and eliminated.
2. Amounts are based on sales prices.
3. Above figures are exclusive of consumption tax.
[2] Actual orders
Actual orders by reporting segment in the consolidated fiscal year under review are as follows.
OrdersOrder backlog
Segment name
Change YoY (％)(Million yen)
(Million yen)
Automatic machineries

13,580(17.4)

Change YoY (％)

12,479(4.4)

Notes: 1. Production is carried out by expected demand, excluding the Automatic machineries segment.
2. Above figures are exclusive of consumption tax.
[3] Actual sales
Actual sales by business segment in the consolidated fiscal year under review are as follows.
Segment name

Net sales (Million yen)

Change YoY (％)

Automatic machineries

14,163(10.3)

Components

92,560

+9.0

Total

106,723+6.0

Notes: 1. Intersegment transactions have been offset and eliminated.
2. Above figures are exclusive of consumption tax.

― 23 ―