(Provided for reference only. Japanese-language original prevails in all cases.) Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2015<Japanese GAAP> May 12, 2015 Company name: Japan Cash Machine Co., Ltd. Stock exchange: Tokyo (1 st section) Code number: 6418 URL: http://www.jcm-hq.co.jp/ Representative: Position: President Name: Yojiro Kamihigashi Contact person: Position: Director, Senior Operating TEL: +81-6-6703-8400 Officer, Executive General Manager Name: Tsuyoshi Takagaki of Corporate Planning Division Scheduled date of general shareholders meeting: June 25, 2015 Scheduled date of dividend payments: June 8,2015 Scheduled filing date of annual securities report: June 25, 2015 The additional materials of the financial results for FY 2015: Yes The briefing session of the financial results for FY 2015: Yes (For institutional investors) (Amount less than one million yen are rounded down.) 1. Consolidated Financial Results for FY 2015 (April 1, 2014 through March 31, 2015) (1) Consolidated operating results (Percent indications show percentage of changes from corresponding figures for the previous ) Operating income Ordinary income Net income FY2015 27,917 0.4 1,285 (27.1) 2,166 2.4 1,486 4.8 FY2014 27,806 18.6 1,761 32.5 2,114 14.2 1,418 (0.9) (Note) Comprehensive income: 2,543 million yen for FY2015, (26.2): 3,444 million yen for FY2014, 56.0 FY2015 Net income per share: Basic yen 55.11 Net income per share: Diluted yen - Return on equity 5.2 Ordinary income to total assets 5.7 Ordinary income to net sales 4.6 FY2014 52.58-5.5 6.7 6.3 (Reference) Equity in net income of affiliate company: 0 million yen for FY2015 (7) million yen for FY2014 (2) Consolidated financial position assets Net assets Shareholders equity ratio Net assets per share yen FY2015 42,511 29,427 69.2 1,090.80 FY2014 33,683 27,223 80.8 1,009.07 (Reference) Shareholders equity: As of March 31, 2015: 29,427 million yen As of March 31, 2014: 27,223 million yen (3) Consolidated cash flows Cash flows from Operating Activities Cash flows from Investing Activities Cash flows from Financing Activities Cash and cash equivalents at the end of FY2015 1,801 (6,991) 5,181 8,814 FY2014 2,098 (545) (626) 8,488 2. Dividends 1 st quarter end Annual cash dividends per share 2 nd quarter end 3 rd quarter end Year-end cash dividends (Annual) Payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of Yen FY2014-8.00-8.00 16.00 431 30.4 1.7 FY2015-8.50-10.50 19.00 512 34.5 1.8 FY2016 (forecast) - 8.50-8.50 17.00 32.8 (Note) Breakdown of dividends paid at year-end for FY2015: common dividend 8.50 yen, commemorative dividend 2.00 yen 3. Forecasts of consolidated operating results for FY2016 (April 1, 2015 through March 31, 2016) (Percent indications show percentage of changes from corresponding figures for the previous ) Net income attributable Net income Operating income Ordinary income to owners of the parent per share FY2016 1 st half FY2016 15,500 31,200 16.3 11.8 800 1,900 10.6 47.9 900 2,000 (14.9) (7.7) 600 1,400 (21.1) (5.8) yen 22.24 51.89 1
*Notes (1) Changes in significant subsidiaries during FY2015 (changes in specified subsidiaries resulting in the change in consolidation scope): None (2) Changes in accounting policies / Changes in accounting estimates / Restatements 1) Changes in accounting policies due to revisions of accounting standards, etc.: Yes 2) Changes in accounting policies other than 1) : None 3) Changes in accounting estimates : None 4) Restatements : None (3) Number of shares outstanding (common stock) Number of shares outstanding at term end FY2015 29,662,851 shares FY2014 29,662,851 shares (including treasury stocks) Number of shares of treasury stocks at term end FY2015 2,684,669 shares FY2014 2,684,246 shares The average number of outstanding shares FY2015 26,978,440 shares FY2014 26,979,142 shares (Reference) Summary of non-consolidated financial results 1. Non-consolidated financial results for FY2015(April 1, 2014 through March 31, 2015) (1) Non-consolidated financial results (Percent indications show percentage of changes from corresponding figures for the previous ) Operating income Ordinary income Net income FY2015 FY2014 9,515 8,988 5.9 (8.2) 361 153 136.0 (61.6) 2,274 763 197.8 (33.5) 1,918 608 215.0 (40.5) FY2015 FY2014 Net income per share Basic Yen 71.10 22.57 Net income per share Diluted Yen - - (2) Non-consolidated financial position assets Net assets Shareholders equity ratio Net assets per share FY2015 FY2014 25,054 17,752 16,650 15,019 66.5 84.6 (Reference) Shareholders equity: 16,650 million yen for FY2015, 15,019 million yen for FY2014 Yen 617.17 556.71 * Disclosure concerning the implementation status of audit procedures: This Consolidated Financial Results report for FY2015 is exempt from auditing procedure pursuant to the Financial Instruments and Exchange Act of Japan. The auditing procedure is still ongoing as of the timing of disclosure of this report. * Explanation for the appropriate use of financial forecasts and other special items (Notes on forward-looking statements) This report contains forward-looking statements that reflect the Company s forecasts for consolidated results. These forward-looking statements are based upon data currently available to the management and certain assumptions that management believes to be reasonable. Actual results may therefore differ materially from these statements for various reasons. For the assumptions for financial forecasts and points to keep in mind when using financial forecasts, please refer to (1) Analysis of Business Results under 1. Business Results on page 3 of the attachment. 2
1. Business Results (1) Analysis of Business Results During the current consolidated fiscal year, the global economy has generally remained on a recovery trend with continued expansion supported by robust consumer spending in the United States and a further trend towards recovery, despite low growth, in Europe. On the other hand, the domestic economy has remained on a slow recovery path by steady consumer spending supported by improvements in employment and income environment as corporate earnings continued to improve with low crude oil prices, a weak yen, and high stock prices. As for the environment surrounding JCM group (the Group ), while demand has tended to weaken in the North American gaming market due to decreased investments in casino halls, stable demand has continued in the European gaming market especially for major countries. In the domestic market, steady demand has been seen in the banking and retail markets, whereas in the market of equipment for the amusement industry, which was affected by the consumption tax hike and diversification of entertainment, there has been a tendency to curb investments in pachinko halls. Under these circumstances, the Group has made efforts to expand sales volume and market share by developing positive sales activities such as acquiring new customers in Japan and overseas, especially in Southeast Asia. We also acquired FutureLogic, a major enterprise that develops and manufactures printer units installed in slot machines, in order to solidify our position as an integrated component supplier in the gaming market. As a result of these activities, net sales for the current consolidated fiscal year were 27.917 billion (up 0.4 year-on-year). In terms of profit, operating income was 1.285 billion (down 27.1 year on year) due to price softening caused by intensified sales competition with other companies mainly in North America. On the other hand, due to a foreign exchange gain on foreign-currency assets caused by a weakening yen as of the fiscal year end, ordinary income was 2.166 billion (up 2.4 year on year) and net income was 1.486 billion (up 4.8 year on year). The average exchange rates for the current consolidated fiscal year were 106.46 yen per U.S. dollar (98.00 yen in the previous consolidated fiscal year) and 140.33 yen per euro (130.55 yen in the previous consolidated fiscal year). by segment and segment income are as described below. (Unit: millions of yen) FY2014 FY2015 Increase or decrease Amount Change () Japanese Region North American Region European Region Asian Region Adjustments Segment income Segment income Segment income Segment income Segment income Ordinary income 14,231 740 10,272 699 6,759 634 10,140 293 (13,598) (252) 27,806 2,114 14,804 2,320 9,665 (447) 7,439 631 9,024 266 (13,017) (604) 27,917 2,166 573 1,579 (607) (1,147) 680 (2) (1,116) (26) (Note) The amounts in Adjustments include the eliminations and adjustments of intersegment transactions, expenses that cannot be apportioned to reportable segments. 580 (351) 111 51 4.0 213.3 (5.9) - 10.1 (0.4) (11.0) (9.1) - - 0.4 2.4 3
<Japanese Region> In the market of equipment for the amusement industry, sales of related items of equipment such as token lenders and environmental products decreased as a whole, due to the effects of the increase in the consumption tax rate, whereas in the banking and retail markets, sales of currency-handling equipment for OEM customers increased. As a result, sales in this segment were 14.804 billion (up 4.0 year on year). Furthermore, due to a foreign exchange gain from the conversion of the value of foreign-currency assets into yen (using the rate as of the last day of the fiscal year), ordinary profit for the segment was 2.320 billion (up 213.3 year on year). <North American Region> In the gaming market, sales increased in the printer business with the acquisition of FutureLogic, whereas in addition to the saturation of demand created by replacing old bill validator units that our company had previously supplied, investments in casino halls decreased significantly. As a result, sales of this segment were 9.665 billion (down 5.9 year on year). In terms of profit, a decrease in sales and booking expenses for the acquisition led to an ordinary loss for the segment of 447 million (in the previous consolidated fiscal year an ordinary profit of 699 million was posted) <European Region> In the retail market, sales decreased from the previous consolidated fiscal year during which there was strong demand, whereas bill-recycling units sold well in the gaming market. As a result, sales of the segment were 7.439 billion (up 10.1 year on year). On the other hand, ordinary profit of the segment was 631 million (down 0.4 year on year), due to increased expenses for promoting sales activities. <Asian Region> This segment is responsible for the overseas manufacturing function of the Group. Due to decreased sales in the North American Region, sales of the segment were 9.024 billion (down 11.0 year on year) and ordinary profit of the segment was 266 million (down 9.1 year on year). (Forecasts of results for the next fiscal year) Regarding the business environment surrounding the Group, we forecast that comparatively stable economic circumstances will continue in Japan and in major countries overseas. With reference to the Group s related industries, we assume that favorable demand mainly in the commercial market with end-users in banking, retail, and transportation will continue in Japan and overseas markets especially in Asia, whereas the gaming market in North America and Europe and the domestic market of equipment for the amusement industry demand will generally continue to be slow. Under these assumptions, the Group will direct positive efforts to ensuring and expanding sales volume and market share by aggressively promoting business deployment not only in existing markets but also in new markets by launching new strategic products, as well as further enhancing close cooperative ties with sales alliance partners. On the other hand, with the earnings environment becoming tougher given downward pressure on prices both in the domestic and overseas markets, sales competition is getting more acute. Therefore, we will focus on executing various improvement strategies centering on cost reductions with a view to establishing a revenue base that can withstand changes in the business environment that could occur from now. Please note that we expect exchange rates for the next term to be 120 yen per U.S. dollar and 140 yen per euro. 4
Forecasts of consolidated operating results for FY2016 (April 1, 2015 through March 31, 2016) (millions of yen) Operating income (millions of yen) Ordinary income (millions of yen) Net income (millions of yen) FY2016 31,200 1,900 2,000 1,400 FY2015 27,917 1,285 2,166 1,486 Increase or decrease 3,282 614 (166) (86) Change () 11.8 47.9 (7.7) (5.8) (2) Basic policy for profit allocation and dividends for the current and next As the Group s basic policy, we aim to determine the distribution of profits considering the dividend-to-net-asset ratio based on a consolidated dividend payout ratio of at least 30, also taking into account both expansion of income through our growth strategy and the stable implementation of dividend payments, which is the return of profits to shareholders. As the year-end dividend for the current term, we decided on 10.5 yen per share (19 yen per share for the year combined with the mid-term dividend), consisting of an ordinary dividend of 8.5 yen and commemorative dividend of 2 yen as our Company celebrated the 60 th anniversary of its establishment on January 11, 2015 and express gratitude to our shareholders. As a result, the dividend payout ratio for the current term was 34.5 and the dividend-to-net-asset ratio was 1.8. We will utilize our internal reserves effectively as improvement expenses for our sustainable growth, including the future business expansion and strategic investments such as business/capital alliances as well as mergers and acquisitions. Based on the above policy, we will issue an annual dividend of 17 yen per share (consolidated dividend payout ratio of 32.8) for the next term. 2. Management Policy (1) Basic policy of company management The basic principle of the Group is to work on manufacturing and the provision of services truly from the viewpoints of our customers and users. The Group will continue to contribute to the maintenance of security in society by maintaining the legal order of Japan s and the world s currencies through our businesses related to money. At the same time, we will continue to pursue customer satisfaction and trust by developing new customers, users and the new future of society. By doing so, we aim to become a corporation that can commit confidence and sincerity to customers and users on a long-term basis and to grow as a truly global company that continues to create markets and value in money circulation. 5
(2) Targeted management indicators and medium to long term corporate management strategies With respect to our Medium-term Management Plan ending in fiscal year 2016 released on February 12, 2014, we released it today as a rolling plan (II) ending for fiscal year 2018. (Quantitative targets) () FY2016 FY2017 FY2018 31,200 32,500 34,500 Operating income 1,900 2,000 2,400 Net income for the year 1,400 1,500 1,700 (Basic Policy and Focused Measures) Aiming at becoming a truly global company that continues to create markets and value in money circulation [1] We propose to expand our business aggressively in newly developing countries and in untapped markets that utilize currency-processing technology. [2] We propose to develop stronger, global level business relationships with both new and existing North American and European gaming OEMs and gaming operators, as well as domestic OEMs and hall operators. [3] We propose to facilitate the creation of next generation businesses opportunities incremental to our current revenue base by continuing to invest towards new products new technology and human resources. [4] We propose to accelerate our efforts to reorganize our group s business structure to enable more rapid business development. (3) Issues to be addressed by the Group Regarding the medium- to long-term economic environment, overseas economies are generally forecasted to show a moderate recovery in spite of concerns over the effects of U.S. and European financial policies. In Japan, economic expansion can also be expected with consumer spending activated by improvements in the employment and income environments amid increasing corporate earnings with a weak yen and high stock prices. Regarding the business environment surrounding the Group, the commercial markets in the banking, retail, and transportation fields in Japan and overseas have experienced strong demand, mainly in Asia. In Japan, demand is expected in various sectors, which will serve as a tailwind for the Group, such as hosting the Olympics in Tokyo in the medium term and the legalization of casinos, which still involves a high degree of uncertainty. Meanwhile, we recognize that against the backdrop of diversifying preferences for entertainment and trends toward reorganization within the industry, the overseas gaming market and the domestic market of equipment for the amusement industry are in a challenging management environment, including shrinking market scale and intensifying price competition. In the light of this situation, we intend to focus more on the commercial market, which has potential for new growth. As a result, we spun off commercial businesses from the previous Global Management organization and newly established the Global Commercial Division as of April 1. We will aim to secure sales opportunities and develop business territories and new businesses, while exploring new markets worldwide and creating demand in commercial markets in Japan and overseas (retail, banking, and transportation fields), so that we can foster them as a new primary source of revenue. Besides, in the gaming businesses, while attempting as soon as possible to create synergies and added value with FutureLogic, which we acquired last year, we will solidify our position as an integrated component supplier in the 6
gaming market. On the other hand, in businesses in market segments of the domestic amusement industry, we will collect and analyze information such as industry trends and prepare to respond quickly taking into consideration sales and technology development strategies. In addition, while responding rapidly to various changes in the business environment, we will aggressively promote business alliances and M&As, and also tackle improving management efficiency by reducing fixed costs and expenses toward expanding and enhancing a sustainable management foundation. Furthermore, for the purpose of sharing the merits and risks of stock price changes with shareholders and strongly promoting the achievement of our medium-term management plan, we plan to introduce a system of stock options as stock-based rewards to our corporate directors (excluding outside directors), starting from the ongoing fiscal year (fiscal year starting April 2015). For details, please refer to Introducing stock options as stock-based rewards to our corporate directors officially announced separately today). (4) Other important issues of corporate management No corresponding item existed. 3. Our fundamental policy on choosing corporate accounting standards: The Group has a policy, for the time being, of preparing consolidated financial statements based on Japanese standards in view of comparability between consolidated financial statements for different fiscal years, as well as comparability with those of other corporations. Regarding application of International Accounting Standards, we will respond appropriately considering various situations in Japan and overseas. 7
4. Consolidated Financial Statements (1) Consolidated Balance Sheet Prior Fiscal Year (As of March 31, 2014) Current Fiscal Year (As of March 31, 2015) Assets Current assets Cash and deposits 9,813,989 8,834,280 Notes and accounts receivable-trade 6,559,151 7,151,245 Securities 107,878 6,653 Merchandise and finished goods 6,368,962 6,248,950 Work in process 1,029,474 596,664 Raw materials and supplies 2,330,874 3,377,060 Deferred tax assets 532,479 445,575 Other 363,302 639,460 Allowance for doubtful accounts (170,980) (306,856) current assets 26,935,132 26,993,034 Non-current assets Property, plant and equipment Buildings and structures, net 2,122,425 2,102,125 Machinery, equipment and vehicles, net 51,222 219,825 Land 1,800,918 1,847,412 Leased assets, net 174,573 127,978 Other, net 963,819 1,067,906 property, plant and equipment 5,112,959 5,365,248 Intangible assets Software 62,185 80,187 Goodwill - 8,019,099 Other 6,906 6,897 intangible assets 69,092 8,106,183 Investments and other assets Investment securities 661,830 766,628 Long-term loans receivable 88,679 93,351 Net defined benefit asset 260,847 508,036 Deferred tax assets 35 39,235 Other 605,870 691,814 Allowance for doubtful accounts (51,342) (51,563) investments and other assets 1,565,921 2,047,503 non-current assets 6,747,974 15,518,936 assets 33,683.106 42,511,971 8
Prior Fiscal Year (As of March 31, 2014) Current Fiscal Year (As of March 31, 2015) Liabilities Current liabilities Notes and accounts payable-trade 3,767,039 3,728,644 Short-term loans payable - 5,773,440 Lease obligations 183,319 112,754 Income taxes payable 55,710 108,716 Provision for bonuses 289,096 288,359 Provision for directors bonuses 27,000 28,300 Deferred tax liabilities 12,811 4,403 Other 1,622,033 2,420,707 current liabilities 5,957,009 12,465,326 Non-current liabilities Lease obligations 203,242 180,119 Deferred tax liabilities 42,977 74,020 Reserve for loss on dissolution of employee s pension - 67,000 fund Other 256,504 297,751 non-current liabilities 502,724 618,891 liabilities 6,459,734 13,084,218 Net assets Shareholders equity Capital stock 2,216,945 2,216,945 Capital surplus 2,068,964 2,068,964 Retained earnings 25,520,525 26,669,381 Treasury shares (2,328,593) (2,329,339) shareholders equity 27,477,841 28,625,951 Accumulated other comprehensive income Valuation difference on available-for-sale securities 62,329 115,562 Foreign currency translation adjustment (316,799) 686,239 accumulated other comprehensive income (254,469) 801,801 net assets 27,223,372 29,427,753 liabilities and net assets 33,683,106 42,511,971 9
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income 10 Prior Fiscal Year (From April 1, 2013 To March 31, 2014) Current Fiscal Year (From April 1,2014 To March 31, 2015) 27,806,072 27,917,092 Cost of sales 17,931,432 17,490,577 Gross profit 9,874,640 10,426,514 Reversal of unrealized income on installment sales 57,122 69,361 Provision of unrealized income on installment sales 70,558 124,724 Gross profit-net 9,861,203 10,371,151 Selling, general and administrative expenses 8,099,446 9,086,085 Operating income 1,761,757 1,285,066 Non-operating income Interest income 26,977 84,292 Dividends income 13,236 11,980 Foreign exchange gains 265,579 1,040,967 Share of profit of entities accounted for using equity method - 821 Other 70,805 55,127 non-operating income 376,599 1,193,190 Non-operating expenses Interest expenses 15,202 53,922 Share of loss of entities accounted for using equity method 7,927 - Purchasing-related expense - 201,890 Sixty anniversary commemoration cost - 34,304 Other 243 22,008 non-operating expenses 23,374 312,125 Ordinary income 2,114,982 2,166,131 Extraordinary income Gain on sales of non-current assets 1,851 107 Gain on sales of investment securities 20,572 1,020 extraordinary income 22,424 1,127 Extraordinary loss Loss on sales of non-current assets 1,123 - Loss on retirement of non-current assets 3,785 20,103 Provision of reserve for loss on dissolution of employee s - 67,000 pension fund Special retirement expenses - 198,733 extraordinary losses 4,909 285,836 Income before income taxes and minority interests 2,132,497 1,881,422 Income taxes-current 641,249 376,140 Income taxes-deferred 72,754 18,460 income taxes 714,003 394,601 Net income 1,418,494 1,486,821 Consolidated Statement of Comprehensive Income Prior Fiscal Year (From April 1, 2013 To March 31, 2014) Current Fiscal Year (From April 1, 2014 To March 31, 2015) Net income 1,418,494 1,486,821 Other comprehensive income Valuation difference on available-for-sale securities (13,765) 53,232 Deferred gains or losses on hedges (2,729) - Foreign currency translation adjustment 2,050,284 1,001,117 Share of other comprehensive income of entities (8,240) 1,920 accounted for using equity method other comprehensive income 2,025,548 1,056,270 Comprehensive income 3,444,042 2,543,092 (Breakdown of Comprehensive income) Comprehensive income attributable to owners of the parent 3,444,042 2,543,092 Comprehensive income attributable to minority interests - -
(3) Consolidated Statements of Changes in Net Assets Prior fiscal year(from April 1, 2013 to March 31, 2014) Shareholders' equity Balance at beginning of current Cumulative effects of changes in accounting policies Capital stock Capital surplus Retained earnings Treasury shares shareholders' equity 2,216,945 2,068,964 24,614,648 (2,325,927) 26,574,630 Restated balance 2,216,945 2,068,964 24,614,648 (2,325,927) 26,574,630 Changes of items during Dividends of surplus (512,616) (512,616) Net income 1,418,494 1,418,494 Purchase of treasury shares Net changes of items other than shareholders' equity changes of items during Balance at end of current (2,666) (2,666) - - - 905,877 (2,666) 903,211 2,216,945 2,068,964 25,520,525 (2,328,593) 27,477,841 (In thousands of yen) Accumulated other comprehensive income Balance at beginning of current Cumulative effects of changes in accounting policies Valuation difference on available-for-sa le securities Deferred gains or losses on hedges Foreign currency translation adjustment accumulated other comprehensive income net assets 76,095 2,729 (2,358,842) (2,280,018) 24,294,612 Restated balance 76,095 2,729 (2,358,842) (2,280,018) 24,294,612 Changes of items during Dividends of surplus (512,616) Net income 1,418,494 Purchase of treasury shares Net changes of items other than shareholders' equity changes of items during Balance at end of current (2,666) (13,765) (2,729) 2,042,043 2,025,548 2,025,548 (13,765) (2,729) 2,042,043 2,025,548 2,928,759 62,329 - (316,799) (254,469) 27,223,372 11
Current fiscal year (From April 1, 2014 to March 31, 2015) Shareholders' equity Balance at beginning of current Cumulative effects of changes in accounting policies Capital stock Capital surplus Retained earnings Treasury shares shareholders' equity 2,216,945 2,068,964 25,520,525 (2,328,593) 27,477,841 107,181 107,181 Restated balance 2,216,945 2,068,964 25,627,707 (2,328,593) 27,585,023 Changes of items during Dividends of surplus (445,146) (445,146) Net income 1,486,821 1,486,821 Purchase of treasury shares Net changes of items other than shareholders' equity changes of items during Balance at end of current (746) (746) - - 1,041,674 (746) 1,040,928 2,216,945 2,068,964 26,669,381 (2,329,339) 28,625,951 Accumulated other comprehensive income Balance at beginning of current Cumulative effects of changes in accounting policies Valuation difference on available-for-sa le securities Deferred gains or losses on hedges Foreign currency translation adjustment accumulated other comprehensive income net assets 62,329 - (316,799) (254,469) 27,223,372-107,181 Restated balance 62,329 - (316,799) (254,469) 27,330,554 Changes of items during Dividends of surplus (445,146) Net income 1,486,821 Purchase of treasury shares Net changes of items other than shareholders' equity changes of items during Balance at end of current (746) 53,232-1,003,038 1,056,270 1,056,270 53,232-1,003,038 1,056,270 2,097,198 115,562-686,239 801,801 29,427,753 12
(4) Consolidated Statements of Cash Flows Prior Fiscal Year (From April 1, 2013 To March 31, 2014) Current Fiscal Year (From April 1,2014 To March 31, 2015) Net cash provided by (used in) operating activities Income before income taxes and minority interests 2,132,497 1,881,422 Depreciation 506,013 577,221 Amortization of goodwill - 200,011 Increase (decrease) in provision 2,143 125,503 Interest and dividend income (40,213) (96,273) Interest expenses 15,202 53,922 Foreign exchange losses (gains) (227,976) (1,137,042) Loss (gain) on sales of investment securities (20,572) (1,020) Loss (gain) on sales and retirement of property, plant and 3,057 19,995 equipment Share of (profit) loss of entities accounted for using equity method 7.927 (821) Purchasing-related expenses - 184,419 Special retirement expenses - 198,733 Decrease (increase) in notes and accounts receivable-trade (729,800) 490,348 Decrease (increase) in inventories 611,281 961,304 Increase (decrease) in notes and accounts payable-trade 580,808 (877,489) Decrease (increase) in consumption taxes refund receivable (25,501) 14,524 Increase/decrease in other assets/liabilities (76,084) (295,799) Subtotal 2,738,781 2,298,959 Payments for special retirement expenses - (103,622) Interest and dividend income received 40,067 95,587 Interest expenses paid (15,202) (53,922) Income taxes paid (665,080) (435,544) Net cash provided by (used in) operating activities 2,098,566 1,801,458 Net cash provided by (used in) investing activities Net decrease (increase) in time deposits (259,421) 1,262,970 Purchase of property, plant and equipment (503,464) (521,679) Proceeds from sales of property, plant and equipment 1,169 560 Purchase of intangible assets (23,109) (55,896) Net decrease (increase) in short-term investment securities (3,128) 107,868 Purchase of investment securities (3,861) (11,555) Proceeds from sales of investment securities 246,599 2,720 Purchase of shares of subsidiaries resulting in change in scope - (7,776,159) of consolidation Other, net - (20) Net cash provided by (used in) investing activities (545,217) (6,991,193) Net cash provided by (used in) financing activities Increase in short-term loans payable - 5,773,440 Proceeds from lease obligations 109,369 55,225 Repayments of lease obligations (221,201) (202,820) Purchase of treasury shares (2,666) (746) Cash dividends paid (511,914) (443,817) Net cash provided by (used in) financing activities (626,412) 5,181,280 Effect of exchange rate change on cash and cash equivalents 579,076 334,015 Net increase (decrease) in cash and cash equivalents 1,506,012 325,561 Cash and cash equivalents at beginning of 6,982,706 8,488,719 Cash and cash equivalents at end of 8,488,719 8,814,280 13
(5) Segment Information I. Prior Fiscal year (From April 1, 2013 to March 31, 2014) (In thousands of yen) Reportable segments Japanese region North American European region Asian region region Sales to customers 10,556,085 10,200,362 6,744,672 304,951 27,806,072 Intersegment sales and transfers 3,675,757 72,244 14,715 9,835,804 13,598,521 14,231,843 10,272,607 6,759,387 10,140,755 41,404,594 Segment profits 740,492 699,458 634,393 293,182 2,367,526 Segment assets 25,069,618 6,669,344 4,819,194 5,158,948 41,717,106 Segment liabilities 7,256,307 1,909,647 1,439,470 2,850,632 13,456,057 Other items Depreciation 447,452 43,195 14,190 11,235 516,073 Interest income 18,730 9,547 13,910 626 42,816 Interest expense 14,791 - - 16,249 31,041 Increase of property, plant and equipment and intangible assets 497,227 34,730 20,048 13,427 565,433 Notes: Depreciation and Increase of property, plant and equipment and intangible assets include amortization and increases of long-term prepaid expenses. II. Current Fiscal year (From April 1, 2014 to March 31, 2015) (In thousands of yen) Reportable segments Japanese region North American European region Asian region region Sales to customers 10,899,414 9,586,311 7,431,366-27,917,092 Intersegment sales and transfers 3,905,545 79,236 8,398 9,024,601 13,017,782 14,804,960 9,665,547 7,439,765 9,024,601 40,934,874 Segment profits (losses) 2,320,017 (447,629) 631,732 266,490 2,770,611 Segment assets 32,118,585 15,312,599 5,606,076 6,056,185 59,093,447 Segment liabilities 12,479,363 10,809,730 2,013,914 3,344,243 28,647,251 Other items Depreciation 501,141 43,358 19,248 13,472 577,221 Amortization of goodwill - 200,011 - - 200,011 Interest income 83,097 33,318 52,312 286 169,014 Interest expense 53,537 68,613-16,493 138,644 Increase of property, plant and equipment and intangible assets 563,165 7,258,462 35,838 6,456 7,863,922 Notes: Depreciation and Increase of property, plant and equipment and intangible assets include amortization and increases of long-term prepaid expenses. 14