Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheet (As of March 31, 2017) Second Quarter of (As of Assets Current assets Cash and deposits 344,093 401,566 Notes and accounts receivable trade 369,061 396,669 Merchandise and finished goods 249,487 251,586 Work in process 42,249 50,056 Raw materials and supplies 66,565 74,375 Other 96,642 104,109 Allowance for doubtful accounts (8,216) (9,344) Total current assets 1,159,884 1,269,018 Non-current assets Property, plant and equipment 424,527 439,421 Intangible assets Goodwill 330,876 332,151 Other 206,087 212,662 Total intangible assets 536,963 544,813 Investments and other assets Investment securities 185,251 215,534 Other 50,258 50,669 Allowance for doubtful accounts (735) (795) Total investments and other assets 234,773 265,408 Total non-current assets 1,196,264 1,249,643 Total assets 2,356,148 2,518,662 Liabilities Current liabilities Notes and accounts payable trade 173,147 179,854 Short-term loans payable 57,699 58,900 Commercial papers 37,000 Current portion of bonds 10,000 10,000 Current portion of long-term loans payable 67,177 60,692 Income taxes payable 27,769 24,622 Provision for product warranties 49,750 51,313 Other 241,132 256,010 Total current liabilities 626,676 678,393 Non-current liabilities Bonds payable 110,000 110,000 Long-term loans payable 353,292 305,256 Net defined benefit liability 11,939 12,412 Other 118,631 133,631 Total non-current liabilities 593,863 561,299 Total liabilities 1,220,539 1,239,693
(As of March 31, 2017) Second Quarter of (As of Net assets Shareholders equity Capital stock 85,032 85,032 Capital surplus 84,544 84,668 Retained earnings 837,968 919,001 Treasury shares (3,160) (3,015) Total shareholders equity 1,004,385 1,085,687 Accumulated other comprehensive income Valuation difference on available-for-sale securities 53,041 72,532 Deferred gains or losses on hedges (119) 30 Foreign currency translation adjustment 61,037 100,278 Remeasurements of defined benefit plans (6,707) (6,616) Total accumulated other comprehensive income 107,251 166,224 Subscription rights to shares 1,079 1,547 Non-controlling interests 22,893 25,509 Total net assets 1,135,609 1,278,968 Total liabilities and net assets 2,356,148 2,518,662
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income) For the Six Months Ended September 30 Net sales 1,044,818 1,174,531 Cost of sales 660,776 756,743 Gross profit 384,042 417,787 Selling, general and administrative expenses 243,658 268,714 Operating profit 140,384 149,072 Non-operating income Interest income 3,442 3,286 Dividend income 2,180 2,508 Share of profit of entities accounted for using equity method 220 837 Foreign exchange gains 65 Other 1,820 2,208 Total non-operating income 7,664 8,906 Non-operating expenses Interest expenses 4,897 5,621 Foreign exchange losses 2,038 Other 1,333 2,674 Total non-operating expenses 8,269 8,295 Ordinary profit 139,779 149,684 Extraordinary income Gain on sales of land 4 32 Gain on sales of investment securities 0 Gain on sales of shares of subsidiaries and associates 48 Total extraordinary income 53 32 Extraordinary losses Loss on disposal of non-current assets 196 239 Loss on valuation of investment securities 5 0 Other 0 Total extraordinary losses 202 239 Profit before income taxes 139,630 149,476 Income taxes 40,094 44,910 Profit 99,535 104,566 Profit attributable to non-controlling interests 3,116 3,066 Profit attributable to owners of parent 96,419 101,500
(Consolidated Statement of Comprehensive Income) For the Six Months Ended September 30 Profit 99,535 104,566 Other comprehensive income Valuation difference on available-for-sale securities (10,853) 19,488 Deferred gains or losses on hedges 701 150 Foreign currency translation adjustment (114,993) 40,035 Remeasurements of defined benefit plans 1,435 92 Share of other comprehensive income of entities accounted for using equity method (2,484) (84) Total other comprehensive income (126,193) 59,683 Comprehensive income (26,657) 164,249 Comprehensive income attributable to Comprehensive income attributable to owners of parent (27,543) 160,473 Comprehensive income attributable to non-controlling interests 885 3,775
(3) Consolidated Statement of Cash Flows I. Cash flows from operating activities Profit before income taxes 139,630 149,476 Depreciation 28,278 32,510 Amortization of goodwill 12,343 14,213 Increase (decrease) in allowance for doubtful accounts 1,147 633 Interest and dividend income (5,623) (5,795) Interest expenses 4,897 5,621 Share of (profit) loss of entities accounted for using equity method (220) (837) Loss (gain) on disposal of non-current assets 196 239 Loss (gain) on sales of investment securities (0) Loss (gain) on valuation of investment securities 5 0 Decrease (increase) in notes and accounts receivable trade 806 (11,241) Decrease (increase) in inventories (1,330) (7,045) Increase (decrease) in notes and accounts payable trade 3,132 (557) Increase (decrease) in net defined benefit liability (79) (91) Decrease (increase) in net defined benefit asset (176) (144) Other, net 16,674 5,706 Subtotal 199,681 182,688 Interest and dividend income received 5,766 6,299 Interest expenses paid (4,945) (5,664) Income taxes paid (25,083) (40,887) Net cash provided by (used in) operating activities 175,418 142,436 II. Cash flows from investing activities Purchase of property, plant and equipment (48,342) (40,765) Proceeds from sales of property, plant and equipment 511 1,365 Purchase of investment securities (98) (2,464) Proceeds from sales of investment securities 0 Purchase of shares of subsidiaries and associates (108) Purchase of investments in capital of subsidiaries and associates (2,405) Proceeds from transfer of business 368 Purchase of shares of subsidiaries resulting in change in scope of consolidation (5,800) (12,068) Payments for investments in capital of subsidiaries resulting in change in scope of consolidation (22,452) (495) Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation 705 Other, net (1,777) (2,403) Net cash provided by (used in) investing activities (77,254) (58,976)
III. Cash flows from financing activities Net increase (decrease) in short-term loans payable 9,813 36,152 Proceeds from long-term loans payable 39,030 7 Repayments of long-term loans payable (30,276) (55,154) Proceeds from issuance of bonds 9,946 Redemption of bonds (30,000) Cash dividends paid (18,982) (20,466) Dividends paid to non-controlling interests (121) (258) Proceeds from share issuance to non-controlling shareholders 233 Other, net (132) (975) Net cash provided by (used in) financing activities (20,489) (40,695) IV. Effect of exchange rate change on cash and cash equivalents (37,230) 14,707 V. Net increase (decrease) in cash and cash equivalents 40,443 57,472 VI. Cash and cash equivalents at beginning of period 291,205 344,093 VII. Cash and cash equivalents at end of period 331,649 401,566