BASIC COMMITMENT OF
THE TOSHIBA MACHINE GROUP
We, the Toshiba Machine Group of Companies, based on respect forhuman values, are determined to help create higher quality andcontinued progress in the lives and cultures of the world.

Commitment to People
We endeavor to serve the needs of all people, especially ourcustomers, shareholders and employees, by carrying out fair androbust business activities

Commitment to the Future
By continually developing innovative technologies centening on the fieldof mechanics, electronics and sysytems, we contribute to create
foundations of industries, strive to create a highly quality society.

Commitment to the Society
As good corporate citizens, we actively contribute to further the goals ofsociety, including ways to improve the environment and resources.

Contents
1

An Outline of the Toshiba Machine Group
Corporate Information2

Foreword

4

Financial Highlights (consolidated)

5

Overseas Operations for Fiscal Year Ended March 31, 20196

Overseas Offices
Financial Review

8

Consolidated Balance Sheet

10

Consolidated Statement of Income

11

Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets

12

Consolidated Statement of Cash Flows13

Notes to Consolidated Financial Statements

36

Independent Auditor's Report

37

Board Members

An Outline of the Toshiba Machine GroupA highly respected integrated machine building group, internationallyrespected for its total capability in the production of quality plastic processing
machinery, die-casting machines, machine tools, precision machinery, industrial
robot, and electronic controls.

Based on their highly innovative technology, expertise, and experience
nurtured over decades as one of the world’s leading machine builders, the Toshiba
Machine Group’s global-type solution business provides customers, in suchvarious industries as nano-technology, optics, electronics and automotives withtotal satisfaction by careful analysis and the recommendation of optimum-type
solutions to their requirements.

Corporate Information (as of March 31, 2019)
Company Name:TOSHIBA MACHINE CO., LTD.

Headquarters: 	2068-3, Ooka, Numazu-shi,
Shizuoka-ken 410-8510, Japan
Established:

1949

Capital:¥12,484 million (US$112,486 thousand)Shares of Common Stock
Issued and Outstanding:

29,977,106 shares

Number of Shareholders:

10,016

Number of Employees:

1,772 (Consolidated: 3,346)

1

Foreword 2019
Although the domestic economy continued to gradually recover in the fiscal year ended March
2019, as demonstrated by the improved corporate revenues and employment situation due togovernment policies and improved incomes, there was some weakness in certain exports andproduction in the second half of the year. Foreign economies were also showing a gradual trend
towards recovery, but because of trends in foreign trade policies, the effects on the global
economy caused by the deceleration of the Chinese economy, global geopolitical risks, andconcerns about the future economies of emerging countries, the future continued to be uncertain.

With respect to the machinery industry of which our Group is a part, domestic capital
investment is recovering, albeit gradually, but overseas markets varied in their conditions
depending on the market and products.
Under such economic conditions, our Group initiated our mid-term management plan, the “TMPΣ Plan” (Toshiba Machine Profit Sigma Plan), on April 1, 2016. This plan carried on our conceptsof “cutting-edge and augmentation” and added the basic policies of “implementing reforms tocreate a high-profit system” and “focusing resources on carefully selected areas”. We have been
doing our best by implementing measures to assure the steady growth of our Group in global
markets which are expected to grow in the future. These measures include reducing our overall
costs, implementing production innovation activities to improve our profitability, creating an
optimal global procurement network, developing new markets, developing new products fordomestic and foreign markets we are focusing on, and increasing the orders we receive.
Because capital investment became more cautious in the second half of the fiscal year, theorders for the fiscal year ended March 2019 were 134,501 million yen (up 5.0 percent from ourprevious consolidated fiscal year) and sales were limited to 117,405 million yen (up 0.5 percent
from our previous consolidated fiscal year). Income and loss were affected by adjustments to sales
dates for some large products, worsening cost rates because of higher prices for some parts andmaterials and our continued delays in procuring parts and materials, and initial lower efficiency
due to our moving some production facilities. Due to these factors, operating income was 3,834
million yen (down 17.4 percent from our previous consolidated fiscal year), net income before
income taxes was 5,742 million yen (down 20.2 percent from our previous consolidated fiscal

2year) because we had non-sales revenues in the form of cancellation monies the previous fiscal
year, and the net income attributable to owners of parent was 4,079 million yen (down 18.7
percent from our previous consolidated fiscal year).
In fiscal 2018, we had dividends of 7.5 yen at the end of the second quarter. We executed theconsolidation of shares at the ratio of 5 shares into 1 share effective from October 1, 2018, so our
year-end dividend was 37.5 yen per share.
The global economy in the future is expected to continue to be uncertain because of trends inforeign trade policies, the continued deceleration of the Chinese economy, and increased global
geopolitical risks. The Japanese economy will be affected by the slowing global economy andexports and production are increasingly cautious, mainly in the manufacturing sector.
Under these economic conditions, our Group initiated the mid-term management plan
Revolution E10 Plan on April 1, 2019. Its basic policy is, “Maximize the use of our strength as a
general machinery manufacturer to continue to grow”, and it aims to transform our company toimprove profitability by winning in an age in which things change quickly and radically and by
making major transformations in our thinking and how we work in order to grow.
After that, we will make efforts to improve the nature of the company, share and strengthen
product appeal, and improve our corporate value by investing in growth. By doing all of thesethings, we will evolve into a “manufacturer which co-creates value” together with its customers
with “the ability to create new industries”.
Furthermore, we will focus on thorough quality and environmental management based on ISO
9001 and 14001, develop the human resources which will lead our Group into the future, andproactively participate in activities to fulfill our social responsibilities as a company, such as
ensuring compliance with all laws and contributing to society.

3FINANCIAL HIGHLIGHTS (consolidated)
2019¥117,405
Net sales$1,057,802¥84,493
Cost of sales$761,270¥29,078
Selling, general and$261,988
administrative expenses¥3,834
Operating income$34,544¥5,742
Net income before income taxes$51,736¥1,662
Income taxes$14,980¥4,079Net income$36,756¥3,475Comprehensive income$31,3172018¥116,862

2017¥111,327

2016¥117,259

2015¥124,373¥83,712¥79,350¥85,004¥90,733¥28,509¥27,503¥28,448¥28,851¥4,640¥4,473¥3,806¥4,788¥6,860¥3,523¥7,608¥6,522¥1,844¥1,747¥2,802¥2,210¥5,016¥1,776¥4,806¥4,312¥5,789¥2,268¥1,197¥8,748¥169.03$1.52¥45.00Cash dividends$0.41¥150,724
Total assets$1,357,999¥83,197
Net assets$749,596¥1,195
Capital expenditures$10,767(property, plant and equipment)¥1,868Depreciation$16,837¥1,835
R & D costs$16,533
3,346
Number of employees¥207.83¥59.37¥158.07¥141.82¥14.00¥12.00¥12.00¥8.00¥148,763¥138,373¥156,346¥159,549¥81,334¥77,120¥93,345¥93,669¥4,687¥1,335¥1,547¥2,193¥2,049¥1,730¥1,756¥1,965¥1,899¥1,648¥1,668¥1,663

3,273

3,236

3,286

3,466

Per common share:
Net income

Note 1: In millions of yen (thousands of U.S. dollars), except for per-share data and number of employees.
Note 2: Yen amounts have been translated into U.S. dollars, for convenience only, at the exchange rate of¥110.99=U.S.$1. See Note 3 of the Notes to the Consolidated Financial Statements.
Note 3: TOSHIBA MACHINE CO., LTD. executed the consolidation of shares at the ratio of 5 shares into 1
share effective from October 1, 2018. Net income per share is recalculated on the assumption that theconsolidation of shares was executed at the beginning of the year ended March 31, 2015. In addition,
the cash dividend per share at the end of March 31, 2019 is the sum of the interim dividend ¥7.50($0.07) and the year-end dividend ¥37.50 ($0.34). Since the interim dividend amount is ¥37.50($0.34) when converted based on the consolidation of shares, the annual dividend amount including
the ¥37.50 ($0.34) year-end dividend amount is ¥75.00 ($0.68) per share.
Note 4: The Companies have adopted the “Partial Amendments to Accounting Standard for Tax EffectAccounting” (ASBJ Statement No.28, February 16, 2018). This accounting standard has been
retrospectively applied to figures for the beginning of the year ended March 31, 2015.

4

Overseas Operations for Fiscal Year Ended March 31, 2019
Overseas sales in the fiscal year ended
March 2019 were 68,106 million yen, which was
2,398 million yen less than the previous year.
In North America, although demand formachine tools decreased, sales increased by 508
million yen from the previous year. This
increase was attributable to continued demandfor die casting machines and greater demandfor injection molding machines.
In Southeast Asia, sales increased by 2,577
million yen from the previous year because ofincreased demand for injection molding
machines, die casting machines, extrusion
machines, and machine tools.
In India, although demand for die castingmachines decreased, sales increased by 649
million yen from the previous year due togreater demand for injection molding machines.
In Europe, although demand for machine
tools decreased, sales increased by 70 million
yen from the previous year due to greater
demand for die casting machines.
Meanwhile, in Korea, sales decreased by 566
million yen from the previous year since there
was only demand for extrusion machines.
In Taiwan, sales decreased by 1,244 million
yen from the previous year since there was only
demand for injection molding machines.
In China, although demand for die castingmachines and machine tools increased, sales
decreased by 5,763 million yen from theprevious year due to lower demand for injection
molding and extrusion machines.
As a result, the percentage of overseas sales
relative to overall sales decreased from 60.3% of
the previous year to 58.0%.
The percentage of overseas sales bybusiness segment was: 80% for the molding
machinery business, which remained
unchanged from the previous year, 17% for themachine tools business (3% increase from theprevious year), and 3% for other products

Net Sales
Millions of yen

124,373
16,207

117,259
10,747111,327
10,02628,141

32,931

29,469116,862
12,896
23,70080,26580,02473,580

2016

2015

Total
Other
114,405 Products
10,832
Machinels
27,362 Too

79,210 Moldingry
Machine71,831

2017

2018

2019

Total Sales & Overseas Sales
Millions of yen

124,373

117,259

72,481

2015

64,181

2016

111,327

63,515

2017

116,862

70,5052018es
Total Sal114,405

68,106

Overseas

Sales

2019

Export Percentages by Major Products
Machine
Tools

Other
Products

3%

Molding
Machinery

17%

80%

business (3% decrease from the previous year).

5Overseas Offices■ East Asia ■SHANGHAI TOSHIBA MACHINE CO., LTD.
Head Office4788, Jin Du Road,
Xinzhuang Industry Zone,
Shanghai, 201108,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)21-5442-0606
Fax : [86]-(0)21-5866-2450
URL:http://www.toshiba-machine.com.cn

Beijing Office

RECREO-CHN MEDIA PLAZA A-1001
A-1, No.15 Jian Guo Road, Chao Yang
District, Beijing, 100024,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)10-6590-8977~8
Fax : [86]-(0)10-6590-8979

Tianjin Office

Room 1005, Li Jing Building,
53 Wei Ti Dao Road,
Hexi District, Tianjin, 300201,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)22-8836-3056
Fax : [86]-(0)22-2416-0380

Dalian Office

Room 1304, Gugeng International
Business Building, 138th Jinma Road,
Dalian Economic & Technological
Development Zone, Dalian, 116600,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)411-8732-7911
Fax : [86]-(0)411-8732-6899

Chongqing Office

Room 9-8, H2 Building, Diecai Center,
No. 9 Jintong Road, North New District,
Chongqing, 401122, PEOPLE'S
REPUBLIC OF CHINA
Tel : [86]-(0)23-6777-5805
Fax : [86]-(0)23-6790-5542

Ningbo Office

Room 713, Building 2, Silver City
National, No 668 jingjia Road jiangdong
District, Ningbo, Zhejiang, 315040,
PEOPLE`S REPUBLIC OF CHINA
Tel : [86]-(0)574-2795-9198
Fax : [86]-(0)574-2795-9199

TOSHIBA MACHINE (SHANGHAI) CO., LTD.
4788, Jin Du Road,
Xinzhuang Industry Zone,
Shanghai, 201108,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)21-5442-5455
Fax : [86]-(0)21-5442-5466

6■ South East Asia ■TOSHIBA MACHINE (SHENZHEN)
CO., LTD. Head Office

Room 608, Building 2, Animation Park,
Yuehai Road, Nanhai Street, Nanshan
District, Shenzhen, 518054,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)755-8625-0599
Fax : [86]-(0)755-8625-0522

Guangzhou Office

Room 311, No. 34-40, Centre South Road,
Donglian Industry Park, Dashi Street,
Panyu District, Guangzhou, 511400,
PEOPLE’S REPUBLIC OF CHINA
Tel : [86]-(0)20-2916-1330
Fax : [86]-(0)20-2916-1338

TOSHIBA MACHINE TAIWAN CO., LTD.
7F., No.168, Ruiguang Road,
Neihu District, Taipei, 114, TAIWAN
Tel : [886]-(0)2-2659-6558
Fax : [886]-(0)2-2659-6381

TOSHIBA MACHINE SOUTH EAST ASIA
PTE. LTD. Head Office
123 Pioneer Road, Singapore 639596,
SINGAPORE
Tel : [65]-68611455
Fax : [65]-68612023

Kuala Lumpur Branch

Unit No. 39-1, Block C2, Jalan PJU
1/39 Dataran Prima, 47301 Petaling
Jaya, Selangor Darul Ehsan, MALAYSIA
Tel : [60]-(0)3-7803-7544
Fax : [60]-(0)3-7803-7545

Penang Office

No. 61, Jalan Prai Jaya 4,
Bandar Prai Jaya, 13600 Prai, Penang,
MALAYSIA
Tel : [60]-(0)4-3980086
Fax : [60]-(0)4-3989652

TOSHIBA MACHINE (THAILAND) CO., LTD.
Head Office127/28 Panjathanee Tower, 23rd Floor,
Nonthree Road, Khwaeng Chong
Nonthree, Khet Yannawa, Bangkok,
10120, THAILAND
Tel : [66]-(0)2-681-0158~61
Fax : [66]-(0)2-681-0162
URL:http://www.toshiba-machine.co.jp/
thailandPT. TOSHIBA MACHINE INDONESIA

Galeri Niaga, Tanjung Barat Kav. KM 8-6.
7, JL. TB. Simatupang Kav.81, Tanjung
Barat, Jagakarsa, Jakarta Selatan, 12530,
INDONESIA
Tel : [62]-(0)21-7884-8694
Fax : [62]-(0)21-7884-8689

TOSHIBA MACHINE (VIETNAM) CO., LTD.
Head Office
2nd Floor, VIT Tower, No. 519 Kim Ma
Street, Ngoc Khanh Ward, Ba Dinh
District, Hanoi, VIETNAM
Tel : [84]-(0)24-2220-8700~1
Fax : [84]-(0)24-2220-8702

■ America ■Ho Chi Minh Office

3rd Floor, Unit 3.1A, E-Town Building,
364 Cong Hoa Street, Ward 13, Tan Binh
District, Ho Chi Minh City, VIETNAM
Tel : [84]-(0)28-3810-8658
Fax : [84]-(0)28-3810-8657

TOSHIBA MACHINE (CHENNAI)PRIVATE LIMITED
Head Office & FactoryNo. 65 (P.O. Box No. 5),
Chennai-Bangalore Highway,
Chembarambakkam,
Poonamallee Taluk, Thiruvallur,
Chennai-600123, Tamil Nadu, INDIA
Tel : [91]-(0)44-2681-2000
Fax : [91]-(0)44-2681-0303

Delhi Office

Plot No. 5, LSC Pocket 6 & 7,
Second Floor,
Sector-C, Vasant Kunj,
New Delhi-110070, INDIA
Tel : [91]-(0)11-4329-1111
Fax : [91]-(0)11-4329-1127

Mumbai Office

TOSHIBA MACHINE COMPANY,AMERICA Head Office

755 Greenleaf Avenue,
Elk Grove Village, IL 60007, U.S.A.
Tel : [1]-847-593-1616
Fax : [1]-847-593-0897
URL http://www.toshiba-machine.com/

Los Angeles Office1440 South Balboa Avenue,
Ontario, CA 91761, U.S.A.
Tel : [1]-909-923-4009
Fax : [1]-909-923-7258

Via Gaudenzio Fantoli 7, Piano 2, 20138,
Milano, ITALY
Tel : [39]-02-50041667
Fax : [39]-02-50041668

SHIBAURA MACHINE UK LTD.
66 Burners Lane, Kiln Farm,
Milton Keynes MK11 3HD
UNITED KINGDOMTel : [44]-(0)1908-562327
Fax : [44]-(0)1908-562348

1578 Sussex Turnpike, Randolph,
NJ 07869, U.S.A.
Tel : [1]-973-252-9956
Fax : [1]-973-252-9959

Atlanta Office6478 Putnam Ford Drive, Suite#106, Woodstock, GA 30189, U.S.A.
Tel : [1]-678-494-8005
Fax : [1]-678-494-8006

Canada Branch

Other Sales & Service Offices:
Kolkata, Pune, Ahmedabad, Vapi,
Bangalore, Hyderabad

SHIBAURA MACHINE MEXICO, S.A. DE C.V.

7/499 Moo 6, Tambol Mabyangporn,
Amphur Pluakdaeng, Rayong 21140,
THAILAND
Tel : [66]-(0)38-027313
Fax : [66]-(0)38-027317

SHIBAURA MACHINE EUROPE S.R.L.

New Jersey Office

Unit No. 608, Powai Plaza,
Hiranandani Business Park,
Powai, Mumbai-400076, INDIA
Tel : [91]-(0)22-6671-0992
Fax : [91]-(0)22-6671-1014

TOSHIBA MACHINEMANUFACTURING (THAILAND)
CO., LTD.

■ Europe ■6 Shields Court, Suite 101, Markham,
Ontario, L3R 4S1, CANADA
Tel : [1]-905-479-9111
Fax : [1]-905-479-6098
Circuito Luxma No.115, Poligono
Industrial Milenio, C.P. 37290 Leon,
Guannajuato, MEXICO
Tel : [52]-477-101-8600

TOSHIBA MACHINE DO BRASIL COMERCIO
DE MAQUINAS LTDA.
Rua Cubatao, 86 Conjunto 1307, Vila
Mariana, Sao Paulo, SP CEP 04013-000,
BRASILTel : [55]-(0)11-3253-3331
Fax : [55]-(0)11-3586-0138

7

Financial Review
CONSOLIDATED BALANCE SHEETTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2019ASSETS
Current assets:
Cash and deposits (Notes 16 and 18)
Marketable securities (Notes 16, 18 and 19)
Notes and accounts receivable, trade (Notes 10 and 18)
Allowance for doubtful receivables
Net receivables
Inventories:
Finished products
Work in process
Raw materials and supplies
Total inventories
Other current assets (Notes 18 and 20)
Total current assets
Property, plant and equipment, net (Note 6)
Intangible assets (Note 7)
Investments and other assets:
Investments in:
Unconsolidated subsidiaries and affiliates (Note 18)
Other securities (Notes 18 and 19)
Long-term loans
Deferred tax assets (Note 22)
Other investments
Total investments and other assets
Total assets

8

Millions of yen

Thousands of
U.S. dollars(Note 3)

2019

2018

¥25,592$230,582

37,405(89)
37,315¥30,394404
38,531(67)
38,463

12,15329,79373
42,0203,909
108,838

8,811
24,76578
33,655
4,290
107,207

109,505
268,432
663
378,599
35,222
980,614

20,76521,305

187,094

641

740

5,776

11,53910,246

103,969

—

2019

—

337,021(811)
336,210

8,008
6,839
61,625
19
16
146
544
703
6,336
691
1,380
12,43919,51020,479184,514¥148,763¥150,724$1,357,999
See accompanying notes to financial statements.

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Notes 18 and 29)
Current portion of long-term debt (Notes 18 and 29)
Notes and accounts payable, trade (Notes 10 and 18)
Income taxes payable (Note 22)
Accrued expenses
Warranty reserve
Advances received
Other current liabilities (Notes 18, 20 and 29)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 18 and 29)
Long-term accounts payable, otherAccrued directors’ retirement benefits
Net retirement benefit liability (Note 21)
Asset retirement obligations
Deferred tax liabilities (Note 22)
Other long-term liabilities (Note 29)
Total long-term liabilities
Total liabilities

Millions of yen

Thousands of
U.S. dollars(Note 3)

2019

2018

¥10,090¥10,090
4,300
29,835
865
5,247
597
5,117
1,773
57,827$90,909

4,300

5
32
9,475
51
66
105
14,03767,526

—
5
30
9,312
50
113
89
9,601
67,42838,74252
296
85,370464
598
954
126,477
608,40212,484
11,53871,983(16,375)
79,63012,484
11,53869,514(16,373)
77,164112,486
103,957
648,554(147,538)
717,459—

28,207
466
4,854
604
7,842
1,423
53,4882019—

254,144
4,200
43,7405,448
70,656
12,828
481,925

Contingent liabilities (Note 8)
Net assets:
Shareholders’ equity: (Note 14)
Common stock
Authorized 72,000,000 shares
Issued29,977,106 shares
Additional paid-in capital
Retained earnings
Treasury stock, at cost (5,841,537 shares in 2019, 5,840,715 shares in 2018)
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on securities, net of tax
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets (Note 28)
Total liabilities and net assets

3,684
2,844
25,628
2
0
0
1,606
1,711
15,419(1,123)(988)(8,909)4,170
3,566
32,13881,334
83,197
749,596¥148,763¥150,724$1,357,999
See accompanying notes to financial statements.

9

CONSOLIDATED STATEMENT OF INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2019
Millions of yen

Net sales
Cost of sales (Note 12)
Gross profit
Selling, general and administrative expenses (Notes 11 and 12)
Operating income
Other income:Interest and dividend income
Rent income
Foreign exchange income
Equity in earnings of affiliates
Cancellation fee income
Gain on sales of property, plant and equipment
Gain on sales of investment securities (Note 18)
OthersOther expenses and losses:
Interest expense
Brand fee expense
Loss on disposal of property, plant and equipment and intangible assets
Loss on valuation of shares of subsidiaries and associates
Loss on impairment of fixed assets (Note 13)
Others
Net income before income taxes
Income taxes (Note 22)
Current
Deferred
Net income
Net income attributable to owners of parent

Net income per share of common stock (Note 28)

2019¥117,405
84,49332,912
29,0783,834

2018¥116,862
83,71233,15028,509
4,640

383
51
335
1,241

453
42
1,031

16
92
3,013

1,676
1,895
21,742

1,309
14

186
210
2,413

81

2019
$1,057,802
761,270
296,532
261,988
34,544

3,452
464
3,025
11,18652—
4

Thousands of
U.S. dollars(Note 3)

100

—
44

737

113
21
—
—
288

125
107
44
1

505

414
792

5,742

6,860

51,736

1,507
155
1,662
4,079
¥4,079

1,903
(59)
1,844
5,016
¥5,016

13,581
1,398
14,98036,756$36,7562018¥207.83

U.S. dollars(Note 3)
2019
$1.52

2019
¥169.03

Yen

1,020
198
—
—
2,596
4,550

See accompanying notes to financial statements.

10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMETOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2019
Millions of yen

Net income
Other comprehensive income (loss): (Note 15)
Unrealized holding gain (loss) on securities, net of tax
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

Thousands of
U.S. dollars(Note 3)2019
¥4,0792018¥5,016

(804)
(2)
104
128
(29)
(603)
¥3,475

464
0
6
288
12
772
¥5,789(7,246)
(25)
943
1,156
(267)
(5,440)$31,317

3,475

5,789

31,317——

2019$36,756—

See accompanying notes to financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2019
Millions of yen
Unrealized
Deferred gains
Remeasurements
Number of Common Additional Retained Treasury gain on
Translation
Total netor losses onof defined benefit
Sharesstock paid in capital earnings stock securities,
adjustments
assetshedgesplans
net of tax
Balance at April 1, 2017
166,885,530¥12,484¥19,600¥67,534¥(25,898)¥3,210¥1¥1,600¥(1,415)¥77,120
Profit attributable to owners of parent
5,016
5,016
Purchases of treasury stock(5)(5)
Cancellation of treasury stock(17,000,000)(8,062)(1,467)
9,530—
Cash dividends(1,568)(1,568)Net changes in items other than shareholders’ equity
473
0
6
292
772
Balance at March 31, 2018
149,885,530
12,484
11,53869,514(16,373)
3,684
2
1,606
(1,123)
81,334
Decrease in number of shares due to consolidation (119,908,424)—
Profit attributable to owners of parent
4,079
4,079
Purchases of treasury stock(2)(2)
Cash dividends(1,749)(1,749)
Increase by merger
138
138
Net changes in items other than shareholders’ equity
(839)
(2)
104
134
(603)
Balance at March 31, 2019
29,977,106¥12,484¥11,538¥71,983¥(16,375)¥2,844¥0¥1,711¥(988)¥83,197

Balance at April 1, 2018
Profit attributable to owners of parent
Purchases of treasury stock
Cash dividends
Increase by merger
Net changes in items other than shareholders’ equity
Balance at March 31, 2019

Thousands of U.S. dollars (Note 3)
Unrealized
Deferred gains
Remeasurements
Common Additional Retained Treasury gain on
Translation
Total netor losses onof defined benefit
stock paid in capital earnings stock securities,
adjustments
assetshedgesplans
net of tax$112,486 $103,957 $626,313 $(147,520) $33,196$25$14,476 $(10,120) $732,813
36,75636,756(18)(18)(15,766)(15,766)
1,251
1,251
(7,568)
(25)
943
1,210
(5,440)$112,486 $103,957 $648,554 $(147,538) $25,628$0$15,419$(8,909) $749,596
See accompanying notes to financial statements.

11

CONSOLIDATED STATEMENT OF CASH FLOWSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Year ended March 31, 2019
Thousands of
U.S. dollars(Note 3)

Millions of yen

Operating activities:
Net income before income taxes
Adjustments to reconcile net income before income taxes to net cash provided by operating activities:
Depreciation
Loss on impairment of fixed assets
Allowance for doubtful receivables
Warranty reserve
Directors’ retirement benefit
Net defined benefit liability
Interest and dividend income
Interest expense
Cancellation fee income
Loss on valuation of shares of subsidiaries and associates
Gain or loss on sales of investment securities
Gain or loss on sales and disposal of property, plant and equipment and intangible assets
Equity in earnings of affiliates
Changes in operating assets and liabilities:
Notes and accounts receivable, trade
Inventories
Notes and accounts payable, trade
Advances received
Accrued expenses
Others
Sub totalInterest and dividend income received
Interest paid
Cancellation fee income received
Income taxes paid
Net cash provided by (used in) operating activities
Investing activities:
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Increase (decrease) in short-term loans receivableCollection of long-term loans receivable
OthersNet cash provided by (used in) investing activities
Financing activities:
Increase (decrease) in short-term bank loans
Repayment of long-term loans payable
Purchases of treasury stock
Cash dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from merger ith unconsolidated subsidiaries
Cash and cash equivalents at end of year (Note 16)

12

2019

2018

¥5,742¥6,860$51,736¥1,868
—
289
7
2
291

2,049

16,837—(2,610)
67
20
2,624

(383)
81

2019

1

(156)
67
1
356

(3,452)
737

—

(453)
100
(1,309)44(16)92(1,031)(1,676)
154(11,186)

1,128(8,332)(1,652)
2,719
(385)
(803)
(835)
654
(89)

912
(6,942)
4,985
1,785
464
(1,263)
6,550
679
(102)

10,169(75,071)(14,885)
24,505(3,475)(7,236)(7,523)
5,897
(805)

(1,906)(2,176)(1,622)
6,813(17,180)(19,612)(1,101)
7
(74)
(99)
167
0
3
(394)
(1,493)(3,221)
20
(214)
(499)
0
0
3
(10)
(3,921)(9,924)
65
(675)
(901)
1,505
4
31
(3,559)(13,454)

—

(186)
17
(1,241)

—

1,309

—

—

—

—
38,742(500)(38,742)(5)(18)(1,568)(15,766)(28)(301)(2,102)(16,086)
(51)
1,001
738
(48,150)
30,060277,488—138
1,244¥30,798¥25,592$230,582
See accompanying notes to financial statements.

4,300(4,300)(2)(1,749)(33)(1,785)111(5,344)30,798NOTES TO CONSOLIDATED FINANCIAL STATEMENTSTOSHIBA MACHINE CO., LTD. AND CONSOLIDATED SUBSIDIARIES

1. Basis of Presenting Consolidated
Financial Statements
The accompanying consolidated financial
statements of TOSHIBA MACHINE CO., LTD.
(the “Company”) and its consolidated subsidiaries(collectively, the “Companies”) are prepared on
the basis of accounting principles generally acceptedin Japan, which are different in certain respects
as to the application and disclosure requirementsof International Financial Reporting Standards,
and are compiled from the consolidated financial
statements prepared by the Company as requiredby the Financial Instruments and Exchange Law
of Japan. The preparation of these consolidated
financial statements requires management tomake estimates and assumptions that affect thereported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at
the fiscal year end and the reported amounts ofrevenues and expenses during the reporting period.
Actual results could differ from these estimates.
Certain reclassifications and rearrangements
have been made to the consolidated financial
statements issued domestically in order to present
them in a form that is more familiar to readers
outside of Japan. In addition, the notes to theconsolidated financial statements include information
which is not required under accounting principles
generally accepted in Japan but is presented herein
as additional information.

2. Summary of Significant Accounting
Policies(a) Basis of consolidation and accounting forinvestments in unconsolidated subsidiaries andaffiliates
The consolidated financial statements include
the accounts of the Companies.
All significant intercompany transactions andaccounts and unrealized intercompany profits
among consolidated entities are eliminated inconsolidation.
Investments in affiliates (15 to 50 percent-owned
companies) in which the Company has the ability
to exercise significant influence, except immaterial
investments, are accounted for using the equity
method.
Unconsolidated subsidiaries and affiliates notaccounted for by the equity method are stated atcost.

(b) Translation of foreign currencies
Monetary assets and liabilities denominated inforeign currencies are translated into Japanese
yen at the exchange rate prevailing at the balance
sheet date, except for those perfectly hedged byforward contracts, which are translated using thecontracted rate.
The foreign exchange gains and losses fromtranslation are recognized in the consolidated
statement of income to the extent that they are
not hedged by foreign exchange derivatives.
All assets and liabilities of foreign consolidated
subsidiaries are translated at the current rates
at the respective balance sheet dates, except forcomponents of shareholders’ equity which aretranslated at their historical rates. The revenue
and expense accounts of foreign consolidated
subsidiaries are translated at the current rates at
the respective balance sheet dates. Differences
arising from translation are recognized directly inforeign currency translation adjustments in net
assets.
(c) Securities
Marketable securities classified as other securities are carried at fair value with any changes in
unrealized holding gain or loss, net of income taxes, directly included in net assets.
Non-marketable securities classified as othersecurities are carried at cost. Cost of securities
sold is determined by the moving average method.
(d) Inventories
Finished products and work in process arestated at the lower of cost, determined by the individual identification method, or their net realizable value. Raw materials and supplies are statedat the lower of cost, determined by the moving
average method, or their net realizable value.
(e) Allowance for doubtful receivables
The allowance for doubtful receivables is stated at the amount determined based on the default
ratio sustained over a specific period in the pastand the estimated uncollectible amount determined based on the analysis of certain individual
accounts, including probable bad debt and claims
in bankruptcy.
(f) Warranty reserve
Warranty reserve is provided for warranty costs
to be incurred during the warranty period based13

on historical experience.
(g) Employee bonuses
The bonuses to the employees are paid twice ayear and accrued based on the estimated amounts
incurred and to be paid in the subsequent period.
(h) Depreciation of property, plant and equipment(excluding leased assets)
Depreciation of buildings is principally computedby the straight-line method, facilities attached
to buildings and other non-building structuresacquired on or after April 1, 2016 is computed by
the straight-line method and depreciation of otherproperty, plant and equipment is computed by the
declining balance method over the estimated useful
lives of respective assets, principally ranging from
3 to 60 years for buildings and structures, andfrom 3 to 22 years for machinery, equipment andvehicles.
(i) Amortization of intangible assets
Computer software held for internal use isamortized by the straight-line method over thecorresponding economic useful life (5 years).
Other intangible assets, including patent rights,
are amortized by the straight-line method over theestimated useful lives of respective assets.
(j) Leased assets
Leased assets under finance lease transactions
that do not transfer ownership to the lessee aredepreciated by the straight-line method over thelease term with no residual value.
(k) Derivative financial instruments
All derivatives are stated at fair value. Gainsor losses arising from changes in fair value arecharged or credited to income for the period inwhich they arise, except for derivatives that aredesignated as hedging instruments. Gains or losses
arising from changes in fair value of the derivatives
designated as cash flow hedging instruments, netof the applicable income taxes, are reported as acomponent of net assets.
(l) Income taxes
The Companies accrue current income taxes
based on taxable income.
The Companies recognize a number of
temporary differences for financial reporting
purposes, which, in the case of expenses, are notcurrently deductible and in the case of income,are not currently taxable.
Income tax effects on such temporary
differences between tax and financial reporting

14

purposes are reflected as deferred income taxes
in the consolidated financial statements using theasset and liability method.
(m) Employees’ retirement benefits
Accrued employees’ retirement benefits areprovided based on the projected retirement
benefit obligation and the fair value of plan assets
at fiscal year-end.
The retirement benefit obligation for
employees is attributed to each period by the benefit
formula method.
Actuarial gain or loss is amortized in thefollowing year in which the gain or loss is recognizedprimarily by the straight-line method over a period(10 years), which is shorter than the averageremaining years of service of the employees.
(n) Directors’ retirement benefits
Domestic consolidated subsidiaries accrue an
estimated amount calculated in accordance withinternal rules for retirement benefits for directors
and corporate auditors.
(o) Amounts per share of common stock
Net income per share is computed based on theweighted-average number of shares of common
stock outstanding during a year.
Diluted net income per share is not presented
since the Company has never issued any securities
with dilutive effect, such as bonds with warrants
and convertible bonds. Cash dividends per sharerepresent the actual amount declared as applicableto the respective years.
(p) Cash equivalents
In preparing the consolidated statement of cash
flows, cash on hand, readily available deposits
and short-term highly liquid investments withmaturities of not exceeding three months at thetime of purchase are considered to be cash andcash equivalents.

3. U.S. Dollar Amounts
U.S. dollar amounts are included solely for theconvenience of the readers and have been translated
at the rate of ¥110.99=U.S.$1, the approximate
exchange rate prevailing in the Japanese foreignexchange market on March 31, 2019. This translation
should not be construed as a representation thatthe yen amounts actually represent, have been, or
could be converted into U.S. dollars.

4. Accounting Standards Issued but Not yet Effective
Accounting Standard for Revenue Recognition(ASBJ Statement No.29 on March 30, 2018)
Implementation Guidance on Accounting Standard for Revenue Recognition(ASBJ Guidance No.30 on March 30, 2018)(a) Outline
This is a comprehensive accounting standard for revenue recognition. Specifically, the accounting standard
establishes the following five-step model that will apply to revenue from contracts with customers:① : Identify the contract(s) with a customer② : Identify the performance obligations in the contract③ : Determine the transaction price④ : Allocate the transaction price to the performance obligations in the contract⑤ : Recognize revenue when (or as) the entity satisfies a performance obligation(b) Scheduled date of adoption
This accounting standard and implementation guidance will be applied from April 1, 2021.
(c) Impacts of the adoption of accounting standard and implementation guidance
The impacts on the Company’s consolidated financial statements from the adoption of this accounting
standard and implementation guidance are being evaluated at the time of the preparation of consolidated
financial statements.

5. Changes in Presentation
Partial Amendments to Accounting Standard for Tax Effect Accounting
The Companies have adopted “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No.28, February 16, 2018) (hereinafter, the “Partial Amendments”) from the beginningof the fiscal year ended March 31, 2019. As such, deferred tax assets and deferred tax liabilities are included
within investments and other assets and non-current liabilities, respectively, and related income tax
disclosures have been expanded.
As a result, deferred tax assets under current assets have decreased by ¥2,922 million and deferred
tax assets under investments and other assets have increased by ¥453 million in the consolidated balance
sheet as of March 31, 2018.
In addition, due to the effect of offsetting deferred tax assets and deferred tax liabilities by the same
taxable entity, total assets decreased by ¥2,469 million.
Also, “Note 22 Income Taxes” in the Notes to the consolidated financial statements has been expandedin accordance with Note 8 and Note 9 of Interpretive Notes to Accounting for Tax Effect Accounting.
However, comparative information for the year ended March 31, 2018 has not been disclosed in Note 22 inaccordance with the transitional provisions set forth in Article 7 of the Partial Amendments.
Consolidated Balance Sheet
Advance received, included within other current liabilities of the current liabilities until the previous
consolidated fiscal year, is separately stated from the fiscal year ended March 31, 2018, as it has exceeded
5% of the total liabilities and net assets. As a result of that, other current liabilities under Current
liabilities in the consolidated balance sheet for the previous fiscal year, ¥6,890 million, is replaced by advancereceived of ¥5,117 million and other current liabilities of ¥1,773 million.

15

6. Property, Plant and Equipment
Property, plant and equipment at March 31, 2019 and 2018 consisted of the following:

Land
Buildings and structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Lease assets
Construction in progress
Sub total
Less accumulated depreciation
Property, plant and equipment, net

Millions of yen
2018
2019
¥6,450¥6,46039,22739,35024,02423,883
314
302
7,321
7,428
209
264
105
130
77,65277,821(56,347)(57,056)¥21,305¥20,765

Thousands of
U.S. dollars
2019$58,212354,544
215,184
2,726
66,931
2,387
1,179
701,162(514,068)$187,094

Depreciation expenses for the years ended March 31, 2019 and 2018 were ¥1,868 million ($16,837
thousand) and ¥2,049 million, respectively.

7. Intangible Assets
Intangible assets at March 31, 2019 and 2018 consisted of the following:

Others
Total

Millions of yen
2018
2019
¥740
¥641
¥740
¥641

Thousands of
U.S. dollars
2019$5,776$5,776

8. Contingent Liabilities
As of March 31, 2019, contingent liabilities for loans guaranteed by the Company, principally on behalfof non-consolidated subsidiaries and affiliated companies, amounted to ¥1,111 million ($10,017 thousand).

9. Commitment Line
The Company has concluded commitment line contracts with three financial institutions in order toensure that it can safely and flexibly meet any demand for funds. The balance of unused committed lines
under these contracts at the end of the fiscal year was as follows:

Total amount of commitment line
Funds borrowed
Unused amountMillions of yen
2018
2019
¥10,000¥10,000——¥10,000¥10,000

Thousands of
U.S. dollars
2019$90,098—$90,098

10. Treatment of notes matured at the end of the fiscal year
Since the final day of the fiscal year falls on a holiday of financial institutions, the method is applied
where settlement of notes matured at the end of the fiscal year are accounted for on their clearing day.
Accordingly, the following notes matured at the end of the fiscal year are included in the consolidated

16

balance sheet at the end of the fiscal year:
Millions of yen
2018
2019
¥858
¥1,47631
14

Notes and accounts receivable, trade
Notes and accounts payable, trade

Thousands of
U.S. dollars
2019$13,300
129

11. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2019and 2018 were as follows:

Sales commission
Shipping expenses
Provision for warranty reserve
Personnel-expenses
Retirement benefit expenses
Depreciation
Rent expenses
Travel expenses
Research and development expenses
Subcontract expenses
Others
Total

Millions of yen
2018
2019
¥2,448¥1,579
3,814
3,839
507
495
11,456
11,883
672
669
718
730
755
805
1,272
1,408
1,258
1,246
612
495
4,994
5,923
¥28,509¥29,078

Thousands of
U.S. dollars
2019$14,234
34,5894,468
107,069
6,031
6,579
7,261
12,692
11,233
4,465
53,367$261,988

12. Research and Development Costs
Research and development costs charged to income were ¥1,835 million ($16,533 thousand) and¥1,899 million for the years ended March 31, 2019 and 2018, respectively.

13. Loss on Impairment of Fixed Assets
Grouping of assets is based on the business units, except for idle assets, which are grouped individually.
The Company wrote down the carrying amount of idle assets to the recoverable amount and recognized
loss on impairment of fixed assets ¥1 million in the consolidated statement of income for the year ended
March 31, 2018.
The recoverable amount of the assets is measured at the net selling value, which is calculated based on
the land tax assessments.
The loss on impairment of fixed assets for the year ended March 31, 2018 consisted of the following:
Millions of yen
2018
Ishioka, Ibaraki, Japan:
Idle property
Land
Total

¥1
¥1

There was no applicable matter for the years ended March 31, 2019.

17

14. Shareholders’ Equity
The Corporation Law of Japan (the “Law”), which went into effect on May 1, 2006, provides that an
amount equal to 10% of the amount to be distributed as distribution of additional paid in capital (otherthan the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capitalreserve and legal reserve, respectively, until the sum of the capital reserve and legal reserve equals 25% of
the common stock account. Such distributions can be made at any time by resolution of the shareholders
or by the Board of Directors if certain conditions are met, but neither the capital reserve nor the legal
reserve is available for distributions.

15. Other Comprehensive Income
The components of other comprehensive income (loss) for the years ended March 31, 2019 and 2018
were as follows:
Thousands of
U.S. dollars
2019

Millions of yen
2018
2019
Unrealized holding gain (loss) on securities:
Current period changes in unrealized gain (loss)
Reclassification adjustment
Total unrealized holding gain (loss) on securities before tax effects
Tax effects
Unrealized holding gain (loss) on securities, net of tax effects
Deferred gains or losses on hedges
Current period changes
Total deferred gains or losses on hedges before tax effects
Tax effects
Deferred gains or losses on hedges, net of tax effects
Foreign currency translation adjustments:
Current period changes
Remeasurements of defined benefit plans
Current period changes in remeasurements of defined benefit plans
Reclassification adjustment
Total remeasurements of defined benefit plans before tax effectTax effects
Remeasurements of defined benefit plans, net of tax effects
Share of other comprehensive income of affiliates accounted for using equity method
Current period changes
Total other comprehensive income (loss)

18¥(962)(186)(1,148)
344
(804)

¥675
(16)
659
(194)
464

$(8,675)(1,676)(10,352)
3,106(7,246)

(3)
(3)
1
(2)

1
1
(0)
0

(35)
(35)
11
(25)

104

6

943

(33)
162
128
—
128

97
191
288
—
288

(304)
1,460
1,156
—
1,156

(29)
¥(603)

12
¥772

(267)
$(5,440)

16. Cash Flow Information(a) Cash and Cash Equivalents
The reconciliation between cash and time deposits in the accompanying consolidated balance sheet
and cash and cash equivalents in the accompanying consolidated statement of cash flows at March 31,
2019 and 2018 were as follows:

Cash and time deposits
Marketable securities
Cash and cash equivalents

Millions of yen
2018
2019
¥30,394¥25,592404—¥30,798¥25,592

Thousands of
U.S. dollars
2019$230,582—$230,582(b) Significant non-cash transactions
Significant non-cash transactions for the years ended March 31, 2019 and 2018 were as follows:

Cancellation of treasury stocks

Millions of yen
2018
2019
¥9,530¥—Thousands of
U.S. dollars
2019$—

17. Leases
This disclosure has been omitted for the year ended March 31, 2019 based on materiality.

18. Financial Instruments
Overview(a) Policy for financial instruments
The Companies invest in short-term deposits for fund management, where temporary cash surplus
is invested in low-risk financial instruments. The Companies raise funds through bank borrowings. The
Companies use derivatives only to reduce risk, and do not enter into derivative transactions for speculative
trading purposes.
(b) Financial instruments, related risk and risk management system
Operating receivables, such as notes and accounts receivable, trade are exposed to customer credit
risk. The Companies try to reduce this risk by adhering to their sales management rules. Investments,
consisting of marketable securities of corporations, are exposed to stock price fluctuation risk in themarket. To address this risk, the Companies review stock prices in every quarter. Operating payables, suchas notes and accounts payable, trade are mainly due within six months. Borrowings are mainly used in for
normal operations and capital investments. The maturity of borrowings is up to two years from the balance
sheet date at the maximum. Certain borrowings are exposed to interest rate fluctuation risks, but theserisks are hedged by interest rate swaps.
Derivative transactions consist of foreign exchange forward contracts, etc. used for the purposeof hedging foreign exchange risk associated with certain assets and liabilities denominated in foreign
currencies. These derivative transactions are managed under the internal management policies, to theextent deemed necessary. Note 20, “Derivative Financial Instruments,” provides more information on
hedge accounting, hedging instruments and methods, hedging policy, hedged items and assessments ofhedge effectiveness.
The Finance Department of the Companies prepares and updates its cash flow plan to manage liquidity
risk. A part of bank borrowings are subject to terms of financial covenants. If the Companies violate theterms of the financial covenants, the terms of the borrowings may be possibly revised.
The terms of the financial covenants related to a syndicated loan contract (¥4,000 million ($36,039
thousand) at March 31, 2019) are as follows:① At March 31 and September 30 every year, the Company must maintain net assets in the consolidated

19

balance sheet over ¥57,840 million ($521,128 thousand).
② In the consolidated statement of income for the fiscal year ending March 31, the Company must notrecord operating loss for two consecutive years.
(c) Supplemental information on the fair value of financial instruments
Fair value of financial instruments is calculated based on market prices, or by using reasonableestimates when market prices are not available. These estimates include variable factors, and are subject
to fluctuation due to a change in underlying assumptions. The contract amounts of derivatives presented
in Note 20, “Derivative Financial Instruments,” below do not represent the actual market risk associatedwith derivative transactions.
Fair value of financial instruments
Carrying value of financial instruments as of March 31, 2019 and 2018, and their fair value were as follows:(Financial instruments whose fair value was extremely difficult to determine were not included.)Millions of yen
2018
2019
Carrying value Fair value Difference Carrying value Fair value Difference
Cash and deposits¥—¥25,592 ¥25,592¥— ¥30,394 ¥30,394
Notes and accounts receivable, trade38,531
38,531037,40537,4060Marketable securities and investment securities 17,606
18,206
20,501
2,295
17,857251¥2,295¥80,604 ¥80,857¥252 ¥87,132 ¥89,428
Total assets
Short-term bank loans¥—¥10,090 ¥10,090¥— ¥14,390 ¥14,390
Notes and accounts payable, trade29,83529,835—28,20728,207—Long-term debt
—
—
—
4,300
4,309
9
¥—
¥42,597 ¥42,606¥9 ¥44,225 ¥44,225
Total liabilities
Derivatives
¥(16)
¥(16)
¥—
¥(19)
¥(19)
¥—
Thousands of U.S. dollars
2019
Carrying value Fair value Difference
Cash and deposits$230,582 $230,582$—
Notes and accounts receivable, trade
337,021 337,029
8Marketable securities and investment securities 158,633 160,896
2,263$726,236 $728,507$2,271
Total assets
Short-term bank loans$90,909 $90,909$—
Notes and accounts payable, trade254,144 254,144—
Long-term debt
38,74238,82684$383,796 $383,880$84
Total liabilities
Derivatives$(174)$(174)$—

Note : Derivatives are presented as net amounts receivable or payable with net amounts payable inparentheses.
(a) Method for calculating fair value of financial instruments, short-term investments and derivativetransactions① Cash and deposits
The carrying value approximates fair value because these are due within the short-term.
② Notes and accounts receivable, trade
The fair value of notes and accounts receivable, trade is classified based on certain terms anddiscounted using interest rate which reflects credit risk.
③ Marketable securities and investment securities
For negotiable certificates of deposit, the carrying value approximates fair value because these are20

due within the short-term.
Investment securities are based on quoted market prices.
④ Short-term bank loans; ⑤ Notes and accounts payable, trade
The carrying value approximates fair value because these are due within the short-term.
⑥ Long-term debt
The fair value of long-term debt is determined based on the present value of the principal andinterest, discounted by the interest rate that would be applied if similar new borrowings wereentered into.
⑦ Derivatives
Please refer to Note 20, “Derivative Financial Instruments”(b) Financial instruments whose fair value was extremely difficult to determine at March 31, 2019 and 2018
were as follows:

Investment securities for which the market prices are not available

Millions of yen
2018
2019
¥452
¥772

Thousands of
U.S. dollars
2019$6,961Market prices are not available for these items, or the cost of estimating future cash flow is consideredprohibitive. As a result, these items are not included in ③Marketable securities and investment securities
in the above table, because their fair value is not readily determinable.
(c) The aggregate annual maturities of financial assets at March 31, 2019 and 2018 were as follows:
Millions of yen
2018
2019
Due after one Due after fiveDue after one Due after fiveDue within one
Due after ten Due within one
Due after ten
year through years throughyear through years through
year
years
year
years
five years
ten years
five years
ten years
Cash and deposits¥—¥—¥—¥25,586¥—¥—¥— ¥30,387
Notes and accounts receivable, trade22——
37,253152—— 38,508
Marketable securities and investment securities:
Negotiable certificates of deposit
404
—
—
—
—
—
—
—
¥22
¥—
¥—
¥62,839¥152¥—¥— ¥69,300
Total
Thousands of U.S. dollars
2019
Due after one Due after fiveDue within one
Due after ten
year through years through
year
years
five years
ten years
Cash and deposits$230,529$—$—$—
Notes and accounts receivable, trade 335,643
1,377
—
—
Marketable securities and investment securities:
Negotiable certificates of deposit————$566,172 $1,377
$—
$—
Total

21

(d) Annual maturities of short-term bank loans and long-term debt
Year ended March 31, 2019

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2018

Short-term bank loans
Long-term debt
Total
Year ended March 31, 2019

Short-term bank loans
Long-term debt
Total

Millions of yen
Due after one Due after two Due after three Due after four
Due within one
Due after five
year through years through years through years through
year
years
two years
three years four years
five years¥10,090
¥—
¥—
¥—
¥—
¥—
—
—
500
500
3,300
—
¥10,090¥—¥500¥500 ¥3,300¥—
Millions of yen
Due after one Due after two Due after three Due after four
Due within one
Due after five
year through years through years through years through
year
years
two years
three years four years
five years¥14,390
¥—
¥—
¥—
¥—
¥—
—
—
—
—
—
—
¥14,390
¥—
¥—
¥—
¥—
¥—
Thousands of U.S. dollars
Due after one Due after two Due after three Due after four
Due within one
Due after five
year through years through years through years through
year
years
two years
three years four years
five years$90,909
$—
$—
$—
$—
$—
—
—
4,505
4,505 29,732—$90,909$— $4,505 $4,505 $29,732$—

19. Securities
Information regarding marketable securities classified as other securities included in investment securities were as follows:

Equity securities

Equity securities

Acquisition
cost¥2,709¥2,7092019
Carrying
value¥6,751¥6,751Millions of yen
Unrealized Acquisition
gains
cost
¥2,696¥4,041¥2,696¥4,041

2018
Carrying
value¥7,887¥7,887

Unrealized
gains¥5,190¥5,190Thousands of U.S. dollars
2019
Acquisition Carrying Unrealized
cost
value
gains
$24,410$60,828$36,417$24,410$60,828$36,417

Proceeds from sales and gain on sales of marketable equity securities classified as other securities were¥190 million ($1,718 thousand) and ¥102 million ($927 thousand) for the year ended March 31, 2019, and¥25 million and ¥16 million for the year ended March 31, 2018, respectively. Proceeds from sales and gainon sales of non-marketable equity securities classified as other securities were ¥115 million ($1,039 thousand)and ¥83 million ($749 thousand) for the year ended March 31, 2019.
Negotiable certificates of deposit classified as non-marketable securities totaled ¥404 million as ofMarch 31, 2018. Non-marketable equity securities classified as other securities primarily consist of ¥88
million ($798 thousand) and ¥120 million as of March 31, 2019 and 2018, respectively.

2220. Derivative Financial Instruments
The Companies have entered into derivative transactions (foreign exchange contracts) in order to manage
certain risks arising from adverse fluctuations in foreign currency exchange rates and. The Company does
not hold or issue derivative financial instruments for the purpose of speculative trading. Derivativetransactions are entered into by the Finance Department under the rules approved by the Board of Directors.
Derivative transactions are evaluated by the Corporate Auditing Office.
Derivatives not designated as hedging instruments at March 31, 2019 and 2018 were as follows:
Foreign exchange contracts

Hedged item
Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
U.S. dollars
Accounts receivable
Buy:
Japanese yen
Accounts payable
Total

Hedged item

Millions of yen
2018
2019
Contract
Contract
Contract
Unrealized Contract
Unrealized
amount due Fair value
amount due Fair value
amountgain (loss) amountgain (loss)
after one year
after one year

¥6

¥—

¥(0)

¥(0)

¥22

¥—

¥0

¥0

826
¥833

—
¥—

(19)
¥(19)

(19) 1,153¥(19) ¥1,175

—
¥—

(21)
¥(20)

(21)
¥(20)

Thousands of U.S. dollars
2019
Contract
Contract
Unrealized
amount due Fair value
amountgain (loss)
after one year

Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
U.S. dollars
Accounts receivable$58
Buy:
Japanese yen
Accounts payable 7,450$7,508
Total

$—
—
$—

$(1)

$(1)

(173) (173)$(174) $(174)23

Derivatives designated as hedging instruments at March 31, 2019 and 2018 were as follows:① Foreign exchange contract, etc.

Hedged item
Accounting in principle
Foreign exchange contracts:
Sell:
U.S. dollars
Accounts receivable
Buy:
U.S. dollars
Accounts payable
Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
U.S. dollars
Accounts receivable
Buy:
U.S. dollars
Accounts payable
Total

Hedged item

Millions of yen
2018
2019
Contract Contract amountContract Contract amount
Fair value
Fair value
amount due after one year
amount due after one year

¥—

¥—

¥—

¥193

¥—

¥3

194

—

0

—

—

—

4,903

—

*

2,830

—

*

27
¥5,125

—
¥—

*
¥0

—
¥3,024—¥——¥3

Thousands of U.S. dollars
2019
Contract Contract amount
Fair value
amount due after one year

Accounting in principle
Foreign exchange contracts:
Buy:
U.S. dollars$1,751
Accounts payable
Appropriated accounting for foreign currency
Foreign exchange contracts:
Sell:
U.S. dollars
Accounts receivable $44,184
Buy:
U.S. dollars
244
Accounts payable$46,179
Total

$—

$0

—

*

—
$—

*
$0

Note : Foreign exchange contracts are accounted for using the appropriation method as part of theaccounts receivable and accounts payable. Therefore the fair value of foreign exchange contracts
is included in the fair value of the underlying accounts receivable.
② Interest rate swaps

Hedged item
Special treatment
Interest rate swap:
Floating rate receipt, fixed rate payment Short—term debt
Long—term debt

24

Millions of yen
2018
2019
Contract Contract amountContract Contract amount
Fair value
Fair value
amount due after one year
amount due after one year

¥—
¥—

¥—
¥—

¥—
¥—

¥4,000
¥—

¥—
¥—

¥—
¥—

Hedged item

Thousands of U.S. dollars
2019
Contract Contract amount
Fair value
amount due after one year

Special treatment
Interest rate swap:
Floating rate receipt, fixed rate payment Short—term debt
Long—term debt

$—
$—

$—
$—

$—
$—

Interest rate swaps are accounted for as part of the short-term debt or long-term debt. Therefore thefair value of the swaps is included in the fair value of the underlying short-term debt or long-term debt.

21. Employees’ Retirement Benefits(a) Overview
The Company and certain subsidiaries have funded defined benefit plans, i.e, lump-sum payment
plans and defined benefit pension plans, and defined contribution plans for employees. Certain overseas
subsidiaries have unfunded defined benefit plans for benefit payments to their employees.
Certain domestic subsidiaries participate in multiemployer pension plans. Multiemployer pension plans,
in which pension assets belonging to the Companies are not reasonably determinable, are accounted for as
if those are defined contribution plans.
Certain domestic consolidated subsidiaries have adopted the simplified method in calculating theirprojected benefit obligation.
(b) Defined benefit plans① The changes in the retirement benefit obligation during the years ended March 31, 2019 and 2018
were as follows:

Retirement benefit obligation at beginning of year
Service cost
Interest cost
Actuarial gain or loss
Retirement benefit paid
Retirement benefit obligation at end of year

Millions of yen
2018
2019
¥13,878¥14,141
921
929
0
0
(5)
(2)
(654)
(709)
¥14,141¥14,360

Thousands of
U.S. dollars
2019$127,414
8,373
7
(20)
(6,389)$129,385② The changes in pension plan assets during the year ended March 31, 2019 and 2018 were as follows:

Pension plan assets at beginning of year
Expected return on pension plan assets
Actuarial gain or loss
Contribution by the Companies
Retirement benefit paid
Pension plan assets at end of year

Millions of yen
2018
2019
¥4,634¥4,829
92
84
92
(35)
198
197
(187)
(190)
¥4,829¥4,885

Thousands of
U.S. dollars
2019$43,512
766
(324)
1,779
(1,717)$44,01525

③ The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2019 and 2018 for the defined benefit plans

Funded retirement benefit obligation
Pension plan assets at fair value
Unfunded retirement benefit obligation
Net retirement benefit liability recognized in the consolidated balance sheet
Retirement benefit liability
Net retirement benefit liability recognized in the consolidated balance sheet

Millions of yen
2018
2019
¥4,639¥4,721(4,829)(4,885)
(189)
(163)
9,501
9,639
9,312
9,475
9,312
9,475
¥9,312¥9,475

Thousands of
U.S. dollars
2019$42,539(44,015)(1,476)
86,84685,37085,370$85,370④ The components of retirement benefit expense for the years ended March 31, 2019 and 2018 wereas follows:

Service cost
Interest assets
Expected return on pension assets
Actuarial gain or loss
Retirement benefit expense

Millions of yen
2018
2019
¥921
¥929
0
0
(92)
(84)
191
162
¥1,021¥1,007

Thousands of
U.S. dollars
2019$8,373
7
(766)
1,460
$9,074⑤ Remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for the years ended March 31, 2019 and 2018 were as follows:

Actuarial gain or loss
Total

Millions of yen
2018
2019
¥288
¥128
¥288
¥128

Thousands of
U.S. dollars
2019$1,156$1,156⑥ Remeasurements of defined benefit plans included in accumulated other comprehensive income(before tax effect) as of March 31, 2019 and 2018 were as follows:

Unrecognized actuarial loss
Total

26

Millions of yen
2018
2019
¥1,065¥937¥1,065¥937

Thousands of
U.S. dollars
2019$8,448$8,448

⑦ The fair value of pension plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2019 and 2018 were as follows:
Domestic bonds
Domestic equity securities
Foreign bonds
Foreign equity securities
Insurance assets (General accounts)
Other
Total

2019
51%
13
12
14
8
2
100%

2018
52%
13
11
14
8
2
100%

The expected return on pension plan assets has been estimated based on the anticipated allocation toeach asset class and the expected long-term returns on assets held in each category.
⑧ The assumptions used in accounting for the above plans were as follows:
Discount rate
Expected rate of return on pension plan assets
Expected rate of salary increase

2019
0.0%
1.5
9.4

2018
0.0%
1.8
9.4

The expected rate of salary increase was the rate of increase points calculated using the age specificindex of the expected rate of salary increase under the retirement benefits point system.
(c) Defined contribution plans
The required contributions to defined contribution plans of the Company and certain domestic
consolidated subsidiaries for the years ended March 31, 2019 and 2018 were ¥170 million ($1,539 thousand)and ¥170 million, respectively.
(d) Multiemployer pension plans
The required contributions to the multiemployer pension plans for the years ended March 31, 2019 and2018 were ¥31 million ($281 thousand) and ¥32 million, respectively.
① Funded status of the multiemployer pension plans as of the most recent calculation dates

Amount of pension assets
Total amount of actuarial obligations and minimum reserve in the pension financial calculation (Note)
Difference

Millions of yen
2018
2019
¥127,443¥130,908
149,315
146,380¥(21,871)¥(15,471)

Thousands of
U.S. dollars
2019$1,179,466
1,318,861$(139,395)

Note : This item was presented as “Amount of obligations” in the previous fiscal year.
② The Companies’ portion of contributions in multiemployer pension plans
The Companies’ portion in the total contributions of the multiemployer plans

2019
0.606%

2018
0.623%The difference above was principally attributable to the differences in retained earnings of ¥4,850
million ($43,700 thousand) and ¥6,159 million in the pension financial calculation, at March 31, 2019and 2018, respectively special reserve of ¥(1,486) million ($(13,397) thousand) and ¥(7,646) million atMarch 31, 2019 and 2018 and unrecognized prior service cost of ¥18,834 million ($169,698 thousand) and¥20,384 million at March 31, 2019 and 2018, respectively.
Prior service cost of the plans is amortized by the straight-line method over 20 years. The Companies
paid and recognized premium contributions of ¥30 million ($277 thousand) and ¥31 million for amortizationof prior service cost in the consolidated financial statements for the years ended March 31, 2019 and 2018,
respectively.
The Companies’ portion of contributions described above was not equal to the actual share to beallocated to the Companies.

2722. Income Taxes
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries generallycomprise corporation, enterprise and prefectural and municipal inhabitants taxes. The statutory tax rates
for the years ended March 31, 2019 and 2018 were approximately 30.0% and 30.2%, respectively.
The reconciliation between the statutory tax rate and effective tax rate for the year ended March 31,
2019 was omitted because such difference is less than 5% of the statutory tax rate.
The reconciliation between the statutory tax rate and effective tax rate for the years ended March 31,2018 was as follows:
Statutory tax rate
Per-capita portion of inhabitant tax
Permanently non-deductible expenses
Permanently non-taxable revenue such as dividends income
Change in valuation allowance
Effects of elimination in consolidation
Difference in statutory tax rates for foreign subsidiaries
Others
Effective tax rate

2018
30.2%
0.5
0.7
(0.9)
0.2
(1.6)
(0.2)
(2.0)
26.9%

The significant components of deferred tax assets and liabilities at March 31, 2019 and 2018 were as follows:
Millions of yen
2018
2019
Deferred tax assets:
Tax loss carry forwards (Note)
Allowance for doubtful receivables
Net defined benefit liability
Devaluation of inventories
Unrealized intercompany profit on inventories
Accrued employee’s bonuses
Devaluation of securities
Enterprise taxes payable
Other
Total deferred tax assets
Valuation allowance of tax loss carry forwards (Note)
Valuation allowance of deductible temporary difference
Subtotal Valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Deferral of gain on sale of fixed assets
Unrealized holding gain on securities
Asset retirement obligations
Foreign consolidated subsidiaries’ retained earnings
Affiliates’ retained earnings accounted for using equity method
Enterprise taxes receivable
OthersTotal deferred tax liabilities
Net deferred tax assets

Thousands of
U.S. dollars
2019

¥328
123
2,568
721
641
609
327
79
1,665
¥7,066(328)(2,589)(2,918)¥4,148

¥322
37
2,492
755
551
612
330
105
1,647
¥6,854——(2,783)¥4,071$2,963
1,114
23,146
6,499
5,777
5,492
2,955
720
15,004$63,670(2,963)(23,331)(26,294)$37,376(91)(1,171)(5)(763)(1,441)(5)(33)¥(3,511)¥636(98)(1,515)(6)(688)(1,302)—(28)¥(3,639)
¥431

(828)
(10,551)(51)(6,875)(12,989)(45)(299)$(31,639)$5,738Note : A breakdown of Tax loss carryforwards and valuation allowance by expiry date as of March
31, 2019 was as follows:28

Tax loss carryforwards
Valuation allowance
Deferred tax assets

Millions of yen
2019
Due after one Due after two Due after three Due after four
Due in one
year through year through year through year through After five years
years or lesstwo years
three years
four years
five years
¥23
¥17
¥64
¥115
¥108
¥—
(23)
(17)
(64)
(115)
(108)
—
¥—
¥—
¥—
¥—
¥—
¥—

Tax loss carryforwards
Valuation allowance
Deferred tax assets

Thousands of U.S. dollars
2019
Due after one Due after two Due after three Due after four
Due in one
Total
year through year through year through year through After five years
years or lesstwo years
three years
four years
five years
$212
$159
$578
$1,037$976$—$2,963
(212)
(159)
(578)
(1,037)(976)—(2,963)
$—
$—
$—
$—
$—
$—
$—

Total
¥328
(328)
¥—

The amount is determined by multiplying the corresponding tax loss carryforwards by the effective
statutory tax rate.

23. Business Combinations
This disclosure has been omitted for the year ended March 31, 2019 based on immateriality.

24. Asset Retirement Obligations
This disclosure has been omitted for the year ended March 31, 2019 based on immateriality.

25. Rental Property
This disclosure has been omitted for the year ended March 31, 2019 based on immateriality.

26. Segment Information(a) General information about reportable segments
The reportable segments of the Companies are the business units for which the Company is able to obtainrespective financial information separately in order for Board of Directors to conduct periodic assessments
to determine distribution of management resources and evaluate their business results.
The Companies’ business is classified into certain segments based on the types of products and services.
The Companies’ segments are categorized into the following two reportable segments: “Molding
Machinery” and “Machine Tools” based on the similarities of the economic nature, type of business andmanufacturing method:
Molding Machinery : Injection molding machines, Die casting machines, Plastic extrusion
Machine Tools :Large size machine tools, Portal type machine tools, Machining centers, Horizontal
boring machines, High-precision machines(b) Basis of measurement for reportable segment profit or loss, segment assets and other material items
The accounting treatment for the reportable business segments is generally the same as described in
Note 2, “Summary of Significant Accounting Policies.” Reportable segment income is calculated on the basisof operating income. The prices of intersegment transactions and transfers are calculated based on themarket prices.

29

(c) Reportable segment information
Reportable segment information of the Companies for the years ended March 31, 2019 and 2018 was asfollows:
Year ended March 31, 2019
Reportable segments
Molding
MachineSub total
MachineryTools
Net sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditures¥79,210—
79,210¥3,510¥85,863¥1,102
804

¥533
212

¥1,635
1,016

Reportable segments
Molding
MachineSub total
Machinery
Tools

Year ended March 31, 2019

Net sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditures¥80,265—
80,265¥4,659¥80,026¥1,062781

Other
Products¥27,362 ¥106,573
2
2
27,365
106,575¥(129)¥3,380¥36,168 ¥122,032

Year ended March 31, 2018

Net sales:
External customers
Inter-segment
Total
Segment income
Segment assets
OthersDepreciation
Capital expenditures

Millions of yen¥10,832 ¥117,405
3,114
3,116
13,946
120,522¥436¥3,817¥19,029 ¥141,061
¥232
178

¥1,868
1,195¥1,777
4,388

Other
Products

Total¥12,896 ¥116,862
2,937
2,944
15,833
119,807¥1,005¥4,534¥21,321 ¥136,054
¥272
299

¥2,0494,687

Thousands of U.S. dollars
Reportable segments
Other
Molding
MachineTotal
Sub total
Products
Machinery
Tools$713,674—
713,674$31,625$773,614$9,932
7,247$246,533 $960,207
23
23
246,556
960,230$(1,168)$30,457$325,873 $1,099,487$4,808
1,912

Adjustments Consolidated¥— ¥117,405(3,116)—(3,116) 117,405¥16¥3,834¥9,662 ¥150,724¥——¥1,868
1,195

Millions of yen¥23,700 ¥103,965
7
7
23,708103,973¥(1,130)¥3,529¥34,705 ¥114,732
¥714
3,606

Total

$14,740
9,159$97,596 $1,057,802
28,06028,083
125,656 1,085,885$3,935$34,392$171,451 $1,270,938$2,098
1,608$16,837
10,767

Adjustments Consolidated¥— ¥116,862(2,944)—(2,944) 116,862¥106¥4,640¥12,709 ¥148,763¥——¥2,0494,687

Adjustments Consolidated$— $1,057,802(28,083)—(28,083) 1,057,802$152$34,544$87,061 $1,357,999$——$16,837
10,767Note 1 : “Other products” is a business segment that is not included in the reportable segments. It
included business activities related to industrial robots and electronic controls, etc.
Note 2 : The Companies have adopted the “Partial Amendments to Accounting Standard for Tax
Effect Accounting” (ASBJ Statement No.28, February 16, 2018). This accounting standard
has been retrospectively applied to figures for the fiscal year ended March 31, 2018.

30

(d) Difference between total reportable segments and consolidated financial statements
The main differences between total reportable segments and consolidated financial statements for theyears ended March 31, 2019 and 2018 were as follows:

Sales
Total reportable segments
Other products
Eliminations
Net sales in the consolidated financial statements

IncomeTotal reportable segments
Other products
Eliminations
Operating income in the consolidated financial statements

AssetsTotal reportable segments
Other productsCompany-wide assets
Eliminations
Net assets in the consolidated financial statements

Millions of yen
2018
2019
¥103,973¥106,575
15,833
13,946(2,944)(3,116)¥116,862¥117,405

Thousands of
U.S. dollars
2019$960,230
125,656(28,083)$1,057,802

Millions of yen
2018
2019
¥3,529¥3,380
1,005
436
106
16
¥4,640¥3,834

Thousands of
U.S. dollars
2019$30,457
3,935
152$34,544

Millions of yen
2018
2019
¥114,732¥122,032
21,321
19,02913,097
10,046(387)(383)¥148,763¥150,724

Thousands of
U.S. dollars
2019$1,099,487
171,451
90,516(3,456)$1,357,999

Note 1 : Company-wide assets are mainly cash and cash equivalents, securities and investment
securities that are not allocated to the reportable segments.
Note 2 : The Companies have adopted the “Partial Amendments to Accounting Standard for Tax
Effect Accounting” (ASBJ Statement No.28, February 16, 2018). This accounting standard
has been retrospectively applied to figures for the fiscal year ended March 31, 2018.
(e) Other information① Information about products and services
Information about products and services is not disclosed because reportable segment information isbased on products and services.
② Information about geographical areas
Sales information by country or geographical areas for the years ended March 31, 2019 and 2018
was as follows:Japan¥49,298

Japan¥46,356

United States¥14,198

Millions of yen
2019
China
Other Asia
¥22,432¥23,710

Other¥7,765

Total¥117,405

United States¥13,521

Millions of yen
2018
China
Other Asia
¥28,099¥22,396

Other¥6,487

Total¥116,862

31

Japan$444,175

United States$127,922

Thousands of U.S. dollars
2019
China
Other Asia
$202,110$213,627

Other$69,968

Total$1,057,802

Note : Sales figures are classified based on customer locations.
Property, plant and equipment information by country or geographical areas as of March 31, 2019 and2018 was as follows:Japan¥18,178

Millions of yen
2019
North America
Asia
¥205
¥2,381

Total¥20,765

Japan¥18,672

Millions of yen
2018
North America
Asia
¥198
¥2,433

Total¥21,305

Japan$163,784

Thousands of U.S. dollars
2019North America
Asia$1,852$21,458

Total$187,094③ Information about major customers
Information about major customers is not disclosed, because net sales to any customer did notexceed 10% of the consolidated net sales for the years ended March 31, 2019 and 2018.
(f) Information about impairment loss on fixed assets for each reportable segment
Information about impairment loss on long-lived assets for the years ended March 31, 2018 was as follows:
Millions of yen
2018
Molding Machinery Machine Tools Other products
¥—
¥—
¥1

Adjustments
¥—

Total
¥1

There was no applicable matter for the years ended March 31, 2019.
(g) Information about amortization of goodwill and unamortized balance for each reportable segment
There was no amortization of goodwill for the year ended March 31, 2019 and 2018.
(h) Information about gain on negative goodwill for each reportable segment
There was no applicable matter for the years ended March 31, 2019 and 2018.

32

27. Related Party Transactions(a) Transactions with related parties
This disclosure has been omitted for the year ended March 31, 2019 and 2018 based on immateriality.
(b) Summary of financial information for significant affiliate company
During the years ended March 31, 2019 and 2018, the Company’s significant affiliate is NuFlareTechnology, Inc.
A summary of financial information with NuFlare Technology, Inc. for the years ended March 31, 2019and 2018 was as follows:
Thousands of
U.S. dollars
2019$774,268
127,687

Total current assets
Total non-current assets

Millions of yen
2018
2019
¥81,235¥85,936
13,156
14,171

Total current liabilities
Total non-current liabilities

26,643
1,113

25,2922,946

240,049
10,032

Total net assets

72,351

66,152651,874

Net sales
Net income before income taxes
Net income

57,32011,983
8,236

41,163
9,226
6,845

516,451
107,965
74,207

28. Net Income and Net Assets per Share
Net income and net assets per share as of and for the years ended March 31, 2019 and 2018 were as
follows:

Net income per share
Net assets per share2019¥169.033,447.10

Yen

2018¥207.83
3,369.80

U.S. dollars
2019
$1.52
31.06

The Company executed the consolidation of shares at the ratio of 5 shares into 1 share effective from
October 1, 2018. Net assets per share and income per share are recalculated on the assumption that theconsolidation of shares was executed at the beginning of the year ended March 31, 2018.
Basic information for the calculation of net income per share was as follows:

Weighted-average number of shares of common stockThousands of shares
2018
2019
24,137
24,135

Net income
Net income not applicable to shareholders of common stock
Net income applicable to shareholders of common stock

Millions of yen
2018
2019
¥5,016¥4,079——¥5,016¥4,079Thousands of
U.S. dollars
2019$36,756—$36,756

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Basic information for the calculation of net assets per share was as follows:

Number of shares at year-end

Thousands of shares
2018
2019
24,13624,135

Net assets
Non-controlling interests in consolidated subsidiaries
Net assets applicable to shareholders of common stock

Millions of yen
2018
2019
¥81,334¥83,197——¥81,334¥83,197

Thousands of
U.S. dollars
2019$749,596—$749,596

29. Short-term Bank Loans and Long-term Debt
The annual interest rates applicable to the short-term bank loans outstanding as of March 31, 2019and 2018 ranged principally from 0.49% to 0.56% and 0.48% to 0.56%, respectively. Long-term debt as ofMarch 31, 2019 and 2018 consisted of the following:
Millions of yen
2018
2019
Loans, principally from Japanese banks and insurance companies:
maturing 2019, interest 0.53% - 0.85%
Less current portion¥4,3004,300—¥—¥4,300
4,300
4,300
¥—

Thousands of
U.S. dollars
2019$38,742
38,742—$38,742

The aggregate annual maturities of long-term debt at March 31, 2019 were as follows:Year ending March 31
2020
2021
2022
2023
2024 and later
Total

Millions of yen
¥—
—
500
500
3,300
¥4,300Thousands of
U.S. dollars
$—
—
4,505
4,505
29,732$38,742

The aggregate annual maturities of finance lease obligations at March 31, 2019 were as follows:Year ending March 31
2020
2021
2022
2023
2024 and later
Total

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Millions of yen
¥31
26
24
18
4
¥106

Thousands of
U.S. dollars
$287
243
224
163
41
$959

30. Subsequent Event
Cash dividends
The following appropriation of retained earnings, which has not been reflected in the accompanying
consolidated financial statements for the year ended March 31, 2019, was approved at the meeting of theBoard of Directors held on May 9, 2019:
Cash dividends of ¥37.50 ($0.34) per share amounting to ¥905 million ($8,155 thousand)35Independent Auditor's Report36Board Members

Directors Chairman and Chief Executive Officer		 Yukio Iimura
President and Chief Operating Officer
		 Takahiro Mikami
Representative Director and Executive Vice President
		 Shigetomo Sakamoto
Director and Executive Operating Officer
		 Akiyoshi Kobayashi
Outside Directors
		 Kiyoshi Sato
		 Seigo Iwasaki
		 Hiroshi Inoue
		 Kazumine Terawaki
Director / Audit and Supervisory Committee Members
		 Hiroshi Takahashi
Outside Directors / Audit and Supervisory Committee Members
		 Yoshihiro Ogura
		 Yutaka Usami

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