4. Consolidated Financial Statements(1) Consolidated Balance Sheets
As of December 31, 2014 and 2015( ) represents negative figures.
Millions of yen

As of December 31, 2014ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

As of December 31, 2015

137,082
265,818
208,093
52,55654,811
14,55583,870(14,247)

107,617
290,897
202,066
54,07554,627
27,79375,811(11,482)

802,541

801,407

Non-current assets:
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netLand
Construction in progress
Other, net

95,363
95,77486,08340,73525,88999,785
106,362
84,306
24,67425,946

Total property, plant and equipment

343,846

341,075

Total current assets

Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

7,290

7,518

78,15546,007
16,65817,257(1,717)86,37837,846
12,362
19,981(1,334)

Total investments and other assets

156,361

155,235

507,499

503,828

1,310,040

1,305,236

Total non-current assets
Total assets

15

( ) represents negative figures.
Millions of yen

As of December 31, 2014
LIABILITIESCurrent liabilities:
Notes and accounts payable – trade
Electronically recorded obligations – operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other provision
OtherAs of December 31, 2015

157,601717
125,908
97,3406,173
11,464
19,533
1,689
115,737

113,107
31,980220,692
39,1608,571
11,542
20,4401,426
93,697536,165

540,620

180,403
6,080
61,927
1,494
20,744150,295
5,521
55,215434
21,448

270,650

232,915806,815

773,535

85,73974,655346,284(698)

85,782
74,698
390,559(709)

505,981

550,331

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

15,02910,931(58,442)(13,783)

23,948
11,490(85,971)(9,019)Total accumulated other comprehensive income(46,264)(59,552)

Subscription rights to shares
Minority interests

33
43,474

1140,910

Total net assets

503,224

531,700

1,310,040

1,305,236

Total current liabilities
Non-current liabilities:
Long-term loans payable
Deferred tax liabilities for land revaluation
Net defined benefit liability
Other provision
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

Total liabilities and net assets

16

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
Fiscal years ended December 31, 2014 and 2015

Consolidated Statements of Income( ) represents negative figures.
Millions of yen

Net sales
Cost of sales

Fiscal year ended
December 31, 2014
(January 1―December 31, 2014)
1,521,207
1,148,357

Fiscal year ended
December 31, 2015
(January 1―December 31, 2015)
1,615,350
1,187,927

Gross profit

372,849

427,422

Selling, general and administrative expenses

285,600

306,986

Operating income87,249

120,436

Non-operating income:Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Loss on revaluation of sales finance assets
Sales finance-related income
Other

7,772
856
1,896
5,136
—
480
10,201

9,903
942
1,672
—
1,964
1,880
10,788

Total non-operating income

26,344

27,151Non-operating expenses:
Interest expenses
Foreign exchange losses
Loss on revaluation of sales finance assets
Other

8,048
—
695
7,570

7,025
9,243
—
6,087

Total non-operating expenses

16,31522,356

Ordinary income

97,279125,231

Extraordinary income:Gain on sales of non-current assets
Gain on reversal of subscription rights to shares
Gain on change in equity
Other

368
40
1,442
6479
1
—
35

Total extraordinary income

1,857

516

Extraordinary losses:
Loss on sales of non-current assets
Loss on disposal of non-current assets

245
971

1,325
1,144

Impairment loss

125315

Loss on revision of retirement benefit plan—
0*1353

1,342

3,148

Other
Total extraordinary losses

178( ) represents negative figures.
Millions of yen

Fiscal year ended
December 31, 2014
(January 1―December 31, 2014)
97,793

Income before income taxes and minority interests
Income taxes – current

23,771*2460

Income taxes for prior periods
Income taxes – deferredFiscal year ended
December 31, 2015
(January 1―December 31, 2015)
122,599
34,409*2

36,79360(17,033)

Total income taxes

24,292

54,169

Income before minority interests

73,50068,429Minority interests in income

5,048

8,406

Net income

68,45260,02318

Consolidated Statements of Comprehensive Income( ) represents negative figures.
Millions of yen

Income before minority interests
Other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land
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 of parent
Comprehensive income attributable to minority interests

19

Fiscal year ended
December 31, 2014
(January 1―December 31, 2014)
73,500Fiscal year ended
December 31, 2015
(January 1―December 31, 2015)
68,4292,912(1)29,441—

8,928
559(29,954)
4,905

2,382

(1,796)

34,734(17,356)

108,235

51,073

100,173
8,062

46,023
5,049

(3) Consolidated Statements of Changes in Equity
Fiscal year ended December 31, 2014 (January 1―December 31, 2014)( ) represents negative figures.
Millions of yen
Shareholders’ equity
Capital stock
Balance at beginning of current period

Treasury shares

Total shareholders’equity

Capital surplus

Retained earnings85,703

74,619288,548(691)

448,179

85,70374,619288,548(691)448,179

36

36

Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Issuance of new shares

72

Reversal of revaluation reserve
for land

45

45

Dividends of surplus(10,649)(10,649)

Net income

68,452

68,452

(111)

(111)

Increase in consolidated subsidiaries
Purchase of treasury shares
Disposal of treasury shares

(7)

(7)

000

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

36

36

57,736(7)

57,80185,73974,655346,284(698)

505,981Millions of yen
Other accumulated comprehensive income

Balance at beginning of current period

Valuationdifference
on availablefor-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefined
benefit plans

Total
accumulated
othercomprehensive income

Subscription rights
to shares

Minority
interests

Total net
assets12,11010,978(87,277)—(64,188)91

38,709422,792

12,11010,978(87,277)—(64,188)9138,709

422,792

Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Issuance of new shares

72

Reversal of revaluation reserve
for land45

Dividends of surplus(10,649)

Net income

68,452

Increase in consolidated subsidiaries(111)

Purchase of treasury shares(7)

Disposal of treasury shares0

Net changes of items other thanshareholders’ equity

2,919

(47)

28,835(13,783)

17,923

(57)

4,764

22,630Total changes of items during period

2,919

(47)

28,835(13,783)

17,923(57)4,764

80,432

Balance at end of current period

15,02910,931(58,442)(13,783)(46,264)

33

43,474503,224

20

Fiscal year ended December 31, 2015 (January 1―December 31, 2015)( ) represents negative figures.
Millions of yen
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus

Retained earnings

74,655346,284

85,739Cumulative effects of changes inaccounting policies

Treasury shares

Total shareholders’equity(698)

505,981

1,482

Restated balance

85,73974,655

4242

1,482

347,767(698)

507,464

Changes of items during period
Issuance of new shares

85

Reversal of revaluation reserve
for land00

Dividends of surplus(16,588)(16,588)

Net income

60,02360,023

(643)

(643)

Increase in consolidated subsidiaries
Purchase of treasury shares
Disposal of treasury shares

(11)

(11)

00

0

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

42

42

42,792(10)

42,86685,782

74,698

390,559(709)

550,331

Millions of yen
Other accumulated comprehensive income

Balance at beginning of current period

Valuationdifference
on availablefor-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefined
benefit plans

Total
accumulated
othercomprehensive income

Subscription rights
to shares

Minority
interests

Total net
assets15,02910,931(58,442)(13,783)(46,264)

33

43,474503,224

Cumulative effects of changes inaccounting policies
Restated balance

1,482
15,02910,931(58,442)(13,783)(46,264)

33

43,474

504,707

Changes of items during period
Issuance of new shares

85

Reversal of revaluation reserve
for land0

Dividends of surplus(16,588)

Net income

60,023

Increase in consolidated subsidiaries(643)

Purchase of treasury shares(11)

Disposal of treasury shares0

Net changes of items other thanshareholders’ equity

8,918

558

(27,529)

4,763(13,287)(21)(2,564)(15,873)

Total changes of items during period

8,918

558

(27,529)

4,763(13,287)(21)(2,564)26,992

Balance at end of current period

23,948

11,490(85,971)(9,019)(59,552)

1140,910

531,700

21

(4) Consolidated Statements of Cash Flows
Fiscal years ended December 31, 2014 and 2015( ) represents negative figures.
Millions of yen

Fiscal year ended
December 31, 2014
(January 1―December 31, 2014)

Fiscal year ended
December 31, 2015
(January 1―December 31, 2015)

Cash flows from operating activities:
Income before income taxes and minority interests

97,793

122,599

Depreciation

37,66744,324

Impairment loss

125315

Increase (decrease) in allowance for doubtful accounts

4,665(898)

Increase (decrease) in net defined benefit liability(961)910Interest and dividend income(8,629)(10,846)

Interest expenses

8,048

7,025

Share of (profit) loss of entities accounted for using equity
method

(1,896)(1,672)

Loss (gain) on sales of property, plant and equipment andintangible assets

(122)

846

Loss (gain) on disposal of property, plant and equipment andintangible assets

971

1,144

Loss (gain) on change in equity(1,442)—

Decrease (increase) in notes and accounts receivable – trade(9,008)(36,907)

Decrease (increase) in inventories(29,123)(18,179)

Increase (decrease) in notes and accounts payable – trade

9,856(11,753)

Other, net

3,074(9,381)

Subtotal

111,018

87,527

Interest and dividend income received

10,606

12,844

Interest expenses paid

(8,469)(7,230)

Income taxes paid

(19,536)(69,152)

Net cash provided by (used in) operating activities

93,61823,988

Payments into time deposits

(271)

(436)

Proceeds from withdrawal of time deposits

455

305

Purchase of property, plant and equipment and intangible
assets(61,855)(67,504)

Proceeds from sales of property, plant and equipment andintangible assets

3,288

5,200

Purchase of investment securities(5,812)(5,103)

Payments of long-term loans receivable(15,868)(13,793)

Collection of long-term loans receivable

11,137

15,321Other, net(3,543)

2,021

Net cash provided by (used in) investing activities(72,470)(63,989)

Cash flows from investing activities:

22

( ) represents negative figures.
Millions of yen

Fiscal year ended
December 31, 2014
(January 1―
December 31, 2014)

Fiscal year ended
December 31, 2015
(January 1―December 31, 2015)

Cash flows from financing activities:
Increase (decrease) in short-term loans payable(44,936)

108,743

Proceeds from long-term loans payable

132,434

21,774

Repayment of long-term loans payable(83,760)(98,870)

3,300—

Cash dividends paid

(10,649)(16,588)

Cash dividends paid to minority shareholders(4,868)(7,787)

Decrease (increase) in treasury shares

(7)

(10)

Proceeds from exercise of share options

5464

(474)

(480)

Net cash provided by (used in) financing activities(8,908)6,845

Effect of exchange rate change on cash and cash
equivalents

3,561

1,286

Net increase (decrease) in cash and cash equivalents

15,802(31,868)

Cash and cash equivalents at beginning of period

120,033

137,294

Increase in cash and cash equivalents from newly
consolidated subsidiary

1,458

2,196

137,294

107,622

Proceeds from share issuance to minority shareholders

Other, net

Cash and cash equivalents at end of period23