ANNUAL REPORT
Year Ended March 31, 2016
PROFILE
Makino Milling Machine Co., Ltd. is a manufacturer of advanced machine tools, founded in May 1937. Its corporate
mission is to contribute to the development of industry in Japan and around the world by quickly discerning and
responding to industrial trends with technological innovation.
Makino’s state-of-the-art machine tools and machining technologies are used in the manufacturing systems of
companies in a wide range of industries. Working with local partners possessing strong technical capabilities, Makino has
built an extensive sales network in the United States, Europe and Asia, capable of responding to changes in global
machine tool demand and structural changes in manufacturing operations.
Major products lines: Machining centers, Numerical control (NC) electrical discharge machines (EDM), Milling machines
and other products
FIVE-YEAR FINANCIAL SUMMARY
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
Years ended March 31
Thousands of
dollars
Millions of yen
2012
Net sales
Net income attributable
to owners of the parent
Net assets
Total assets
2013
2014
2015
2016
2016
¥110,460
¥126,809
¥123,896
¥149,506
¥161,979
$1,437,513
3,698
83,750
178,361
5,159
92,665
209,785
4,294
99,246
218,499
11,449
117,836
245,456
12,168
117,133
234,264
107,987
1,039,518
2,079,020
Yen
Dollars
Earnings per share attributable
to owners of the parent
Basic
Diluted
¥33.24
—
¥46.38
46.17
¥38.60
34.17
¥102.93
91.11
¥109.56
96.97
Number of employees
3,992
4,207
4,178
4,279
4,455
$0.97
0.86
Note: US dollar amounts have been translated from yen, for convenience only, at the rate of ¥112.68=US$1, the approximate Tokyo foreign exchange
market rate as of March 31, 2016.
CONTENTS
TO OUR SHAREHOLDERS AND INVESTORS..................................1
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS..........10
CORPORATE GOVERNANCE........................................................3
CONSOLIDATED STATEMENTS OF CASH FLOWS.........................11
BUSINESS RISKS..........................................................................5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS..................12
CONSOLIDATED BALANCE SHEETS.............................................6
INDEPENDENT AUDITOR'S REPORT..............................................30
CONSOLIDATED STATEMENTS OF INCOME.................................8
BOARD OF DIRECTORS AND CORPORATE AUDITORS..................32
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME.....9
CORPORATE DATA......................................................................32
TO OUR SHAREHOLDERS AND INVESTORS
1. Analyses of Operating Results and Financial
Position
(1) Analysis of Operating Results
1) Operating Results for Fiscal 2016
During fiscal 2016, the Company posted net sales of
¥161,979 million (up 8.3% year on year), operating
income of ¥14,465 million (up 20.3% year on year), and
net income attributable to owners of the parent of
¥12,168 million (up 6.3% year on year) on a
consolidated basis.
Orders received on a consolidated basis amounted
to ¥161,504 million (up 2.1% year on year).
The details of operating results by geographic
region are as follows:
Makino Milling Machine Co., Ltd. and Its
Consolidated Subsidiaries in Japan
Domestic orders received by Makino Milling Machine
Co., Ltd. increased in the first half of the year partly
thanks to government policies and decreased in the
second half in reaction to that increase. Orders received
for the full year exceeded the level of the previous year as
a moderate recovery continued.
MAKINO ASIA PTE LTD
In China, amid an economic slowdown, demand for
machine tools and other industrial goods remained
sluggish.
We received orders from various industries,
centering on export industries, and as a result, orders
received for the year slightly exceeded the level of the
previous year, which comes from the initiatives to
strengthen our sales network covering various parts of
China.
MAKINO INC.
Demand for machine tools decreased despite the robust
economic performance of the United States in the first
half of the year, and orders received greatly decreased
from the previous year. Contracts for auto and aircraft
manufacturers were concentrated in the second half, and
as a result, orders received for the full year exceeded the
level of the previous year.
MAKINO Europe GmbH
Aircraft-related demand continued. Investment in the die
and mold industry has also been robust.
However, orders received were below the previous
year’s level as general parts processing customers were
cautious about investment.
2) Outlook (Fiscal 2017)
Fiscal 2017 started with soft demand for machine tools.
Considering the situations in various regions, we expect
demand to recover in the first half.
The Company forecasts orders received on a
consolidated basis to be below the previous year’s level
because of appreciation of the yen.
The details of the forecast by geographic region are as
follows:
Makino Milling Machine Co., Ltd. and Its
Consolidated Subsidiaries in Japan
Steady demand is continuing for the purpose of
increasing production efficiency and responding to
technological change.
We will endeavor to increase orders received by
proposing to those customers that they upgrade to
highly accurate and highly efficient machines.
MAKINO ASIA PTE LTD
Although the Chinese market remains lackluster, certain
users are positive for capital investment.
Taking advantage of our sales network covering
various parts of China, we intend to strengthen initiatives
to cultivate customers responding to increasingly
sophisticated domestic demand, in addition to export
industries.
We anticipate recovery in other regions and orders
received in local currencies exceed the previous year’s level.
MAKINO INC.
Demand for machines for structural components and for
engine parts from the aircraft industry is on an upward
trend.
For automotive parts manufacturers, we are
reinforcing engineering systems geared to automation.
Orders received in local currencies are expected to
exceed the previous year’s level.
MAKINO Europe GmbH
We are reviewing our sales system, in view of low orders
received for machines for general parts processing in the
previous year.
With the expansion of sales offices in Germany, we
are well prepared to respond more meticulously to needs
of die and mold as well as aircraft industries.
The Group’s consolidated performance forecasts for fiscal
2017 are as follows:
(Million yen)
Forecasts for the first six
months
(1st and 2nd quarters
combined)
Forecasts for the full fiscal
year
*1
*2
Operating
income
Net sales
*1
66,700
down 11.1%
*2
150,000
down 7.4%
*1
*2
1,500
down 74.8%
9,200
down 36.4%
Net income
attributable
to owners of
the parent
*1
*2
1,000
down 80.7%
6,500
down 46.6%
Compared with the same period of fiscal 2016
Year on year
1
Both sales and profit will decrease compared with fiscal
2016 because the trend of currency exchange rates
shifted to yen appreciation.
We expect demand for machine tools to remain at a
standstill for some time. However, technological
innovation requiring high-accuracy, high-efficiency
processing is further accelerating.
In response to this trend, we are promoting
investment in human resources and facilities so as to be
prepared for the anticipated increase in demand.
(2) Analysis of Financial Position
Total assets on a consolidated basis at the end of fiscal
2016 decreased ¥11,192 million from the end of fiscal
2015 to ¥234,264 million. This was primarily attributable
to a decrease of ¥7,121 million in notes and accounts
receivable, a decrease of ¥5,653 million in inventories, a
decrease of ¥7,597 million in investment securities, and
an increase of ¥9,232 million in cash and deposits. Total
liabilities decreased by ¥10,490 million from the end of
fiscal 2015 to ¥117,130 million. This was primarily
attributable to a decrease of ¥6,123 million in notes and
accounts payable and a decrease of ¥3,013 million in
short-term loans. The method for certain payments has
changed to electronically recorded obligations-operating.
Net assets decreased by ¥702 million from the end
of fiscal 2015 to ¥117,133 million. The principal items
were an increase of ¥10,388 million in retained earnings,
a decrease of ¥5,014 million in unrealized gains on
available-for-sale securities, and a decrease of ¥3,297
million in foreign currency translation adjustments.
(Cash Flows)
At the end of fiscal 2016, net cash provided by operating
activities was ¥24,879 million, principally reflecting
¥15,389 million in income before income taxes, ¥5,684
million in depreciation and amortization, a decrease of
¥4,306 million in inventories, and a decrease of ¥5,614
million in notes and accounts receivable, trade.
Net cash used in investing activities was ¥6,382
million. The principal items were a net decrease of ¥400
million in time deposits and purchases of property, plant
and equipment amounting to ¥7,264 million.
Net cash used in financing activities was ¥6,795
million. This resulted principally from outflow of ¥3,930
million from long-term loans payable and dividends paid
amounting to ¥1,779 million.
As a result, cash and cash equivalents on a
consolidated basis at the end of fiscal 2016 increased by
¥10,132 million from the end of fiscal 2015 to ¥52,364
million.
2
The table below shows trends in cash-flow indicators.
73rd term
74th term
75th term
Term ended Term ended Term ended
March 2012 March 2013 March 2014
Shareholders’ equity ratio
(%)
46.6
43.8
45.1
Shareholders’ equity ratio on
a market value basis (%)
44.2
30.4
37.0
Ratio of interest-bearing
debt to cash flows (%)
—
5.8
8.1
Interest coverage ratio
(times)
—
14.0
10.2
76th term
77th term
Term ended Term ended
March 2015 March 2016
Shareholders’ equity ratio
(%)
47.7
49.7
Shareholders’ equity ratio on
a market value basis (%)
46.3
32.4
5.9
2.3
17.0
52.9
Ratio of interest-bearing
debt to cash flows (%)
Interest coverage ratio
(times)
Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio on a market value basis: Market
capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing
debt / Cash flows
Interest coverage ratio: Cash flows / Interest payment
* Each indicator is calculated from consolidated financial data.
* Market capitalization is computed based on the number of
shares issued, excluding treasury stock.
* Cash flows mean cash flows from operating activities.
* Interest-bearing debt includes all liabilities bearing interest
posted in the consolidated balance sheets. Interest
payment is interest paid recorded in the consolidated
statements of cash flows.
July 2016
Shinichi Inoue
President
CORPORATE GOVERNANCE
1. Corporate governance
Basic corporate governance rationale
Makino Milling Machine Co., Ltd. regards strong
management oversight functions as a vital element in
the strengthening of competitiveness, swifter decisionmaking and greater transparency.
(1) Corporate governance status
1) Governing body
Makino Milling Machine Co., Ltd. is a company with
Board of Directors. As of June 23, 2016, the
Company’s Board of Directors consists of eight
directors. The Board of Directors meets once a month
and, in addition to carrying out the tasks specified by
laws and regulations and by the Articles of
Incorporation, makes decisions on important matters
and supervises operational duties. Whereas the
representative director elected by the Board of
Directors engages in execution of operational duties as
the representative of the Company, specific
operational duties are allocated among nonrepresentative directors and executed by them. The
term of office of a director is one year and directors
are elected by vote of the annual general meeting of
shareholders.
Makino Milling Machine Co., Ltd. is also a company
with corporate auditors and with Board of Auditors.
As of June 23, 2016, the Company’s Board of Auditors
consists of three statutory auditors (two of whom are
full-time corporate auditors), of whom two are outside
corporate auditors. The statutory auditors attend
meetings of the Board of Directors and make remarks,
as necessary, in the course of deliberation on the
agenda. Also, the Board of Auditors meets periodically
and, in addition to items specified by laws and
regulations, deliberates and makes decisions on
matters necessary for statutory auditors’ activities, and
audits directors’ execution of operational duties from
an independent standpoint.
2) Internal control systems and risk management systems
At its meeting held on May 1, 2006, the Company’s
Board of Directors passed a resolution concerning
”the development of systems necessary to ensure that
the execution of duties by directors complies with laws
and regulations and the articles of incorporation, and
other systems prescribed by the applicable Ordinance
of the Ministry of Justice as systems necessary to
ensure the properness of operations of a Stock
Company (internal control systems)” provided for in
Article 348 Paragraph 4 and in Article 362 Paragraph
5 of the Corporation Law. The Company’s internal
control systems and risk management systems are
described below.
Positioning risk management as the basis of systems
ensuring properness of execution of duties, the
Company is putting in place risk management systems
not only for the purpose of managing risks that may
cause losses to the Company but also for preventing
deviation from laws and regulations and the Articles of
Incorporation and for ensuring efficient execution of
duties. Directors in charge of operations and
departmental heads are responsible for management
of usual risks. Risks that the directors or the statutory
auditors consider material, and moreover, that they
consider should be examined by the Board of Directors
are examined, judged and dealt with by the Board of
Directors.
The Company has formulated internal rules, including
the Risk Management Rules in which deviation from
laws and regulations and the Articles of Incorporation
is provided for as a type of risk, Employment Rules and
the Security Export Control Program. The Company is
endeavoring to ensure compliance with laws and
regulations, rules and norms by raising employee
awareness through the provision of training for new
employees and periodic and non-periodic training.
Regarding the recording of operational activities,
records are prepared and retained in accordance with
the Rules of the Board of Directors in the case of
information on execution of duties of directors and in
accordance with the Rules for Formal Approvals in the
case of decision-making for routine operations.
Subsidiaries are required to report to the Company on
their execution of duties and risk situations, as
necessary, and the Company’s directors or employees
are dispatched as directors of subsidiaries to
participate in management and be responsible for
oversight.
Regarding audit by auditors, as well as reporting on
important matters at meetings of the Board of
Directors, based on the statutory auditors’ requests
directors make reports or hold a meeting with
statutory auditors, as necessary. Directors and
employees are required to report to statutory auditors
without delay concerning any eventuality that may
cause significant damage or that caused damage to
the Company. In the event that statutory auditors
request assistants, the Company selects such assistants
based on the discussion with statutory auditors about
the number of assistants, positions, affiliation, etc.,
and secures the consent of the Board of Auditors for
treatment of such assistants.
In addition, with respect to the system specified by a
Cabinet Office Ordinance as necessary for ensuring
appropriateness of statements on finance and
accounting and other information as set forth in
Article 24-4-4, Paragraph 1 of the Financial
Instruments and Exchange Law, the Company
3
maintains and manages such system in accordance
with the basic framework of internal control as
indicated in the” On the Setting of the Standards and
Practice Standards for Management Assessment and
Audit concerning Internal Control Over Financial
Reporting (Council Opinions)” published by the
Business Accounting Council.
3) Internal audit and audit by corporate auditors
Necessary audits are performed at the Company on
the basis of close cooperation between the corporate
auditors, the accounting auditor and relevant staff at
the Finance Department, the General Affairs
Department and the Internal Audit Office.
Internal audit on maintenance and management of
internal control over financial reporting is conducted
by the Internal Audit Office (consists of two members),
which is established as an independent organization
and directly reports to the President, in cooperation
with relevant departments of the Company and its
consolidated subsidiaries.
Regarding audits by the accounting auditor, necessary
coordination such as scheduling is made internally
through discussion between the corporate auditors,
the Finance Department, the General Affairs
Department and the Internal Audit Office. Corporate
auditors and the Finance Department periodically
exchange views with the accounting auditor and the
necessary coordination is made. In addition, corporate
auditors witness the audit process, as deemed
necessary, to monitor the accounting auditor’s audit
proceedings.
Regarding audits by auditors, the statutory auditors
gather necessary and sufficient information for
conducting audits, including the situation of the
Company and situations of its subsidiaries and
affiliates, on a routine basis through systematic
exchanges of views with directors, managerial
personnel, key employees, and the accounting auditor
of the Company and its subsidiaries and affiliates.
Also, statutory auditors receive reports on the
accounting auditor’s audit results, and use such
information in conducting stringent audits.
4) Accounting audits
Certified public accountants engaged in the
Company’s accounting audits are Ms. Naoko Enomoto
and Mr. Makoto Iwabuchi, both of whom are with
Gyosei & Co. Assistants engaged in the accounting
audits comprise six certified public accountants and
seven other persons.
5) Relations with outside corporate auditors
There are no personal, capital or transactional relations
between the Company and its two outside corporate
auditors.
4
(2) Compensation paid to directors and corporate
auditors
The compensation paid to directors and corporate auditors of the Company is as follows:
Number of persons
Directors excluding outside directors
Corporate auditors excluding
outside corporate
auditors
Outside directors
and corporate
auditors
Amount of compensation (Millions of yen)
8
259
1
24
3
40
On Introduction of Measures against Large-scale
Purchases of the Company’s Shares (Anti-Takeover
Measures)
The Company aims to produce reliable products,
providing the machine tools and technologies that are
most suitable for our customers so that they can
manufacture their products efficiently. It is an invaluable
asset to the Company to satisfy their demand and to
maintain strict confidentiality of them.
We believe that we must eliminate large-scale purchases
of the shares which will damage this relationship based
on trust.
The introduction of the Anti-takeover Measures was
approved by the shareholders at the Ordinary General
Meeting of Shareholders on June 20, 2008 and came
into effect.
BUSINESS RISKS
The Group operates around the world, and the
operations are influenced by a range of different factors,
the most important of which are as follows:
- Changes in global economic conditions: The sales
of the Company heavily depend on capital expenditures
in the manufacturing industry in Japan, Asia and
America. Since the investment appetite of companies is
likely to fall more sharply than the general economy,
there is the possibility that orders and sales of producer
goods will decline rapidly if the global economy slows.
- Trends in individual industries: Many of the
Company’s products are used in automotive companies.
Although trends in capital expenditure in the auto sector
are the most stable in the manufacturing industry, they
have a very substantial effect on sales of the Company
because the capital expenditure, which is large, has a
very significant influence on supply and demand in the
market for machine tools. Sales in growth industries,
including IT and digital home appliances, change sharply
every fiscal year because of violent fluctuations in supply
and demand.
- Exchange rate fluctuations: More than half of the
Company’s products are sold overseas. Moreover, we
have developed a range of operations overseas.
Exchange rates consequently have a significant impact on
the sales and income of the Company.
- Changes in the supply-demand of parts and raw
materials: Machine tools contain many parts and raw
materials. If supply of parts and raw materials tightens,
prices may rise, and this in turn could influence income.
If the needed quality, quantity, and delivery dates are not
secured, it could influence production and sales.
- Country risk: The Company has made inroads into
countries that are modernizing their industries. If
unexpected changes occur in the political, economic, or
social circumstances in these countries, or if legal
regulations are established or tightened, it could affect
the sales and income of the Company.
5
CONSOLIDATED BALANCE SHEETS
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
March 31, 2014, 2015 and 2016
US$1=¥112.68
Thousands of
dollars
Millions of yen
2014
2015
2016
2016
¥43,664
¥43,008
¥52,240
$ 463,613
1,004
1,005
1,102
9,779
Notes and accounts receivable (Notes 2.k, 3 and 5)
40,389
45,803
38,682
343,290
Inventories (Notes 2.f and 6)
47,471
57,053
51,399
456,150
Deferred income taxes (Notes 2.j and 10)
1,839
3,445
1,665
14,776
Other current assets
4,122
5,214
4,636
41,143
(756)
(1,030)
137,735
154,500
148,920
1,321,618
17,539
24,669
17,072
151,508
531
526
443
3,931
1,638
1,987
3,102
27,529
711
464
273
2,422
4,769
4,813
4,750
42,154
(451)
(420)
24,738
32,041
25,280
224,352
Land
16,479
16,767
17,524
155,520
Buildings and structures
61,567
64,315
66,004
585,764
Machinery and equipment
30,522
34,398
35,001
310,623
3,208
2,220
2,288
20,305
818
1,851
2,173
19,284
112,596
119,553
122,992
1,091,515
Accumulated depreciation
(56,572)
(60,638)
(62,929)
(558,475)
Total property, plant and equipment
56,024
58,914
60,063
533,040
¥218,499
¥245,456
¥234,264
$2,079,020
ASSETS
Current assets:
Cash and time deposits (Notes 3 and 15)
Marketable securities (Notes 2.e, 3 and 4)
Allowance for doubtful accounts (Notes 2.h and 3)
Total current assets
(806)
(7,152)
Investments and other assets:
Investment securities (Notes 2.e, 3 and 4)
Long-term loans receivable
Deferred income taxes (Notes 2.j and 10)
Net defined benefit assets (Notes 2.i and 8)
Other long-term assets
Allowance for doubtful accounts (Notes 2.h and 3)
Total investments and other assets
(361)
(3,203)
Property, plant and equipment (Note 2.g):
Lease assets (Note 9)
Construction in progress
Total assets
The accompanying notes are an integral part of these statements.
6
US$1=¥112.68
Thousands of
dollars
Millions of yen
LIABILITIES AND NET ASSETS
Current liabilities:
Notes and accounts payable (Note 3):
Trade
Other
Electronically recorded obligations-operating
(Note 3)
Short-term loans (Notes 3 and 7)
Current portion of long-term debt
(Notes 2.k, 3, 5 and 7)
Short-term lease obligations (Note 7)
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 2.k, 3, 5 and 7)
Long-term lease obligations (Note 7)
Net defined benefit liabilities
(Notes 2.i and 8)
Allowance for directors' and corporate
auditors’ retirement benefits (Note 2.i)
Deferred income taxes (Notes 2.j and 10)
Other long-term liabilities
Total long-term liabilities
2014
2015
2016
2016
¥24,418
6,100
¥27,372
8,909
¥21,249
8,019
$188,578
71,166
—
7,380
—
8,071
3,124
5,058
27,724
44,888
10,646
432
7,743
763
2,912
60,396
3,908
283
9,862
1,706
3,862
63,976
11,405
279
8,785
1,543
2,929
62,393
101,215
2,476
77,964
13,693
25,993
553,718
47,731
1,523
50,219
1,197
41,571
1,156
368,929
10,259
2,270
3,367
5,616
49,840
43
4,992
2,293
58,856
52
6,689
2,117
63,643
61
4,275
2,055
54,736
541
37,939
18,237
485,764
19,263
19,263
170,953
32,595
54,866
(4,794)
32,602
65,254
(5,629)
289,332
579,108
(49,955)
Net assets:
Shareholders’ equity
Common stock, no par value
19,263
Authorized :300,000,000 shares
Issued
:119,944,543 shares
as of March 31, 2014, 2015 and 2016
Capital surplus
32,595
44,556
Retained earnings (Note 13)
Treasury stock
(4,785)
8,702,060; 8,712,596 and 9,893,017
shares as of March 31, 2014, 2015
and 2016 respectively
Total shareholders’ equity
91,630
Accumulated other comprehensive income
Unrealized gains on available-for-sale
securities (Note 2.e)
8,547
Deferred losses on hedges (Note 2.k)
(8)
Foreign currency
translation adjustments
208
Remeasurements of defined benefit
(1,757)
plans (Notes 2.i and 8)
Total accumulated other comprehensive income
6,989
626
Non-controlling interests (Note 2.n)
99,246
Total net assets
¥218,499
Total liabilities and net assets
101,930
111,490
989,439
13,811
(4)
8,796
—
78,061
—
4,269
971
8,617
(2,814)
15,261
644
117,836
¥245,456
(4,814)
4,954
689
117,133
¥234,264
(42,722)
43,965
6,114
1,039,518
$2,079,020
The accompanying notes are an integral part of these statements.
7
CONSOLIDATED STATEMENTS OF INCOME
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
For the years ended March 31, 2014, 2015 and 2016
US$1=¥112.68
Thousands of
dollars
Millions of yen
2014
2015
2016
2016
¥123,896
¥149,506
¥161,979
$1,437,513
89,707
102,970
113,306
1,005,555
34,188
46,536
48,673
431,957
29,277
34,511
34,208
303,585
4,910
12,025
14,465
128,372
Interest and dividend income
271
336
727
6,451
Interest expense
(752)
(612)
(469)
(4,162)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):
Subsidy income
—
—
762
6,762
Gain on sales of property, plant and equipment
59
85
87
772
Gain on sales of investment securities
149
—
33
292
Loss on disposal of property, plant and equipment
(58)
(49)
(122)
(68)
—
—
—
(99)
—
—
—
Impairment loss (Note 12)
—
(140)
—
—
Office transfer expenses
—
(123)
—
—
306
964
(1,082)
Provision of allowance for doubtful accounts
for subsidiaries and affiliates
Loss on valuation of stocks of subsidiaries and affiliates
Exchange gain (loss), net
(559)
(4,960)
620
538
464
4,117
Income before income taxes
5,339
13,023
15,389
136,572
Income taxes (Notes 2.j and 10) - Current
1,161
2,928
2,490
22,097
(190)
(1,420)
677
6,008
4,368
11,515
12,221
108,457
73
65
53
470
¥4,294
¥11,449
¥12,168
$107,987
Other, net
- Deferred
Net income (Note 2.n)
Net income attributable
to non-controlling interests (Note 2.n)
Net income attributable to owners of the parent
(Note 2.n)
Yen
Dollars
Per share of common stock:
Net income attributable to owners of the parent
(Note 2.n)
- Basic
- Diluted
Cash dividends applicable to the period
The accompanying notes are an integral part of these statements.
8
¥38.60
¥102.93
¥109.56
$0.97
34.17
91.11
96.97
0.86
10.00
14.00
16.00
0.14
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
For the years ended March 31, 2014, 2015 and 2016
US$1=¥112.68
Thousands of
dollars
Millions of yen
Net income (Note 2.n)
2014
2015
2016
2016
¥4,368
¥11,515
¥12,221
$108,457
2,343
5,265
(29)
4
2,701
4,065
Other comprehensive income (loss) (Note 14):
Unrealized gains (losses) on available-for-sale
securities (Note 2.e)
Deferred gains (losses) on hedges (Note 2.k)
Foreign currency translation adjustments (Note 2.d)
(5,016)
4
(44,515)
35
(3,297)
(29,259)
Remeasurements of defined benefit plans
(Notes 2.i and 8)
Other comprehensive income (loss)
Total comprehensive income
—
(1,055)
(2,004)
(17,784)
5,016
8,280
(10,313)
(91,524)
¥9,384
¥19,796
¥1,907
$16,924
9,306
19,721
1,861
16,515
77
74
46
408
¥9,384
¥19,796
¥1,907
$16,924
Total comprehensive income attributable to:
Owners of the parent
Non-controlling interests (Note 2.n)
The accompanying notes are an integral part of these statements.
9
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
For the years ended March 31, 2014, 2015 and 2016
US$1=¥112.68
Thousands of
dollars
Millions of yen
2014
2016
¥19,263
19,263
¥19,263
19,263
¥19,263
19,263
$ 170,953
170,953
Capital surplus:
Balance at beginning of year
Disposal of treasury stock
Balance at end of year
32,595
—
32,595
32,595
—
32,595
32,595
6
32,602
289,270
53
289,332
41,144
44,556
54,866
486,918
—
83
—
—
4,294
(1,112)
230
44,556
11,449
(1,223)
—
54,866
12,168
(1,779)
—
65,254
107,987
(15,788)
—
579,108
Treasury stock:
Balance at beginning of year
Acquisition of treasury stock
Disposal of treasury stock
Balance at end of year
(4,778)
(6)
—
(4,785)
(4,785)
(9)
—
(4,794)
(4,794)
(848)
13
(5,629)
(42,545)
(7,525)
115
(49,955)
Unrealized gains on available-for-sale securities
(Note 2.e):
Balance at beginning of year
Net change during the year
Balance at end of year
6,203
2,343
8,547
8,547
5,263
13,811
13,811
(5,014)
8,796
122,568
(44,497)
78,061
20
(29)
(8)
(8)
4
(4)
(4)
4
—
(35)
35
—
Foreign currency translation adjustments
(Note 2.d):
Balance at beginning of year
Net change during the year
Balance at end of year
(2,489)
2,698
208
208
4,060
4,269
4,269
(3,297)
971
37,886
(29,259)
8,617
Remeasurements of defined benefit plans
(Notes 2.i and 8):
Balance at beginning of year
Net change during the year
Balance at end of year
—
(1,757)
(1,757)
(1,757)
(1,057)
(2,814)
(2,814)
(1,999)
(4,814)
(24,973)
(17,740)
(42,722)
706
(80)
¥626
626
17
¥644
Retained earnings (Note 13):
Balance at beginning of year
Cumulative effects of changes in accounting
policies
Net income attributable to owners of the parent
(Note 2.n)
Cash dividends
Other
Balance at end of year
Deferred gains (losses) on hedges (Note 2.k):
Balance at beginning of year
Net change during the year
Balance at end of year
Non-controlling interests (Note 2.n):
Balance at beginning of year
Net change during the year
Balance at end of year
The accompanying notes are an integral part of these statements.
10
2016
2015
Common stock:
Balance at beginning of year
Balance at end of year
644
45
¥689
$
5,715
399
6,114
CONSOLIDATED STATEMENTS OF CASH FLOWS
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
For the years ended March 31, 2014, 2015 and 2016
US$1=¥112.68
Thousands of
dollars
Millions of yen
2014
Cash flows from operating activities:
Income before income taxes
Adjustments for:
Income taxes (paid) refund
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for directors’
and corporate auditors’ retirement benefits
Increase (decrease) in net defined
benefit liabilities
Increase (decrease) in allowance for
doubtful accounts
(Gain) loss on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
(Gain) loss on sales of investment securities
(Increase) decrease in notes and accounts receivable, trade
(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable, trade
Other, net
Net cash provided by (used in)
operating activities
Cash flows from investing activities:
(Increase) decrease in time deposits
Proceeds from sales of investment securities
Purchases of investment securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash provided by (used in)
investing activities
Cash flows from financing activities:
Increase (decrease) in short-term loans, net
Repayment of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Purchases of treasury stock
Purchases of treasury stock of subsidiaries
in consolidation
Dividends paid
Net cash provided by (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, beginning of period
Cash and cash equivalents, end of
period (Notes 2.b and 15)
2016
2015
2016
¥15,389
$136,572
¥5,339
¥13,023
(1,707)
3,961
(23)
(2,014)
5,157
(17)
3
9
9
79
(482)
(112)
39
346
(81)
(59)
58
(149)
(3,631)
477
4,138
288
166
(85)
49
—
(2,841)
(6,494)
654
3,110
(243)
(87)
122
(33)
5,614
4,306
(1,852)
(1,507)
(2,156)
(772)
1,082
(292)
49,822
38,214
(16,435)
(13,374)
8,130
10,606
24,879
220,793
12,800
303
(3)
(11,884)
165
(612)
560
1
(142)
(7,062)
245
(422)
400
49
(4)
(7,264)
302
134
3,549
434
(35)
(64,465)
2,680
1,189
769
(6,820)
(6,382)
(56,638)
1,542
(477)
12,000
(12,225)
(10,000)
(6)
(83)
(345)
6,500
(633)
(10,000)
(9)
(2,759)
(302)
2,825
(3,930)
—
(848)
(24,485)
(2,680)
25,070
(34,877)
—
(7,525)
(139)
(1,112)
—
(1,222)
—
(1,779)
—
(15,788)
(10,418)
(5,794)
(6,795)
(60,303)
926
(591)
43,229
1,602
(405)
42,638
(1,569)
10,132
42,232
(13,924)
89,918
374,795
¥42,638
¥42,232
(2,560)
5,684
—
¥52,364
(22,719)
50,443
—
$464,714
The accompanying notes are an integral part of these statements.
11
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Makino Milling Machine Co., Ltd. and Consolidated Subsidiaries
1. Basis of Presenting Financial Statements
The accompanying consolidated financial statements of Makino Milling Machine Co., Ltd. (the “Company”) have been
prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Law and its
related accounting regulations, and in conformity with accounting principles and practices generally accepted and
applied in Japan, which are different in certain respects as to application and disclosure requirements of International
Financial Reporting Standards.
In preparing the consolidated financial statements, certain reclassifications and rearrangements have been made to
the financial statements issued domestically in Japan in order to present these statements in a form which is more
familiar to the readers outside Japan.
In addition, the notes to the consolidated financial statements include information which is not required under
generally accepted accounting principles and practices in Japan but is presented herein as additional information.
Amounts of less than one million yen have been omitted as permitted under generally accepted accounting
principles and practices in Japan. As a result, the totals shown in the accompanying consolidated financial statements
(both in yen and dollars) do not necessarily agree with the sum of individual amounts.
The United States dollar amounts presented in the accompanying consolidated financial statements are included
solely for convenience and are stated, as a matter of arithmetical computation only, at the rate of ¥112.68 = US$1,
which was the prevailing exchange rate on March 31, 2016.
2. Summary of Significant Accounting Policies
(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries (30 for
2014 and 2015 and 31 for 2016). The significant subsidiaries, which are consolidated with the Company, are listed
below:
MAKINO ASIA PTE LTD
MAKINO INC.
MAKINO Europe GmbH
MAKINO RESOURCE DEVELOPMENT PTE LTD
Makino J Co., Ltd.
Makino Denso Co., Ltd.
Makino Technical Service Co., Ltd.
Kanto Bussan Kaisha, Ltd.
Makino Giken Co., Ltd.
Makino Logistics Co., Ltd.
The remaining subsidiaries (four for 2014 and three for 2015 and 2016), whose assets, net sales, net income and
the underlying net equity of retained earnings in the aggregate are not significant in the consolidated totals, have not
been consolidated with the Company.
The fiscal year of the consolidated subsidiaries is the same as the Company’s except for some of the subsidiaries
(five for 2014, 2015 and 2016): Makino do Brasil Ltda., Single Source Technologies S. de R.L. de C.V., MAKINO CHINA
Co., LTD. and the others, whose fiscal years end on December 31. Significant transactions between January 1 and March
31 are reflected in the consolidated financial statements.
The equity method is not applied since the combined net profit and loss and the underlying net equity of retained
earnings in the aggregate in the unconsolidated subsidiaries and two affiliates are not significant in the consolidated
totals.
All significant intercompany accounts and transactions are eliminated in consolidation. The difference between
acquisition cost and the underlying net equity at the time of acquisition is amortized evenly over five years.
(b) Cash equivalents
Cash equivalents are short-term investments that are readily convertible into cash and that are exposed to insignificant
risk of changes in value. Cash equivalents include time deposits and certificate of deposits, all of which mature or
become due within three months of the date of acquisition.
(c) Foreign currency translations
All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into
Japanese yen at the exchange rates at the balance sheet date. The foreign exchange gains and losses from translation are
recognized in the consolidated statements of income unless they are hedged by forward exchange contracts.
12
(d) Foreign currency financial statements
The balance sheet accounts of the overseas consolidated subsidiaries are translated into Japanese yen at the rates of
exchange at the balance sheet date except as to capital, which is translated at the historical rates of exchange at dates of
acquisition. The revenue and expense accounts of those subsidiaries are translated into Japanese yen at the average rates
of exchange in effect during each fiscal year. Differences arising from translation are shown as “Foreign currency
translation adjustments” in the net assets in the accompanying consolidated balance sheets.
(e) Marketable securities and investment securities
Investments in the unconsolidated subsidiaries and the affiliate are stated at cost. Equity method is not applied as in Note
2(a). Marketable securities and investment securities other than investment securities in the subsidiaries and the affiliate
are stated at market value. However, such securities without market value are stated at cost if they are not significantly
impaired. The Company credits or charges unrealized gains or losses, net of income taxes, on the above securities to net
assets as “Unrealized gains on available-for-sale securities”.
The cost of sold securities is calculated using the gross average method.
(f) Inventories
Finished products and work in process are principally valued at the lower of cost or net realized value, determined by the
specific identification method. Raw materials and supplies are stated at the most recent purchase prices.
(g) Property, plant, equipment and depreciation
Property, plant and equipment, including significant renewals and additions, are carried at cost. The cost of property,
plant and equipment retired or otherwise disposed of and accumulated depreciation in respect thereof are eliminated
from the related accounts, and the resulting gain or loss is reflected in income. Maintenance and repairs, including minor
renewals and improvements, are charged to income as incurred.
Depreciation of the Company and the domestic consolidated subsidiaries is mainly computed by the declining
balance method using the rates based on estimated useful lives of the assets. Depreciation of the overseas consolidated
subsidiaries is computed by the straight-line method. The range of useful lives is principally from 5 to 50 years for
buildings and structures and from 3 to 12 years for machinery and equipment.
(h) Allowance for doubtful accounts
The Group provides for possible losses due to uncollectibility of notes, accounts, loans receivable, etc. based on the
Company’s past credit loss experience and management’s estimate.
(i) Allowance for employees’ retirement benefits and directors’ and corporate auditors’ retirement benefits
Employees, excluding directors and corporate auditors, of the Company and most of its domestic consolidated
subsidiaries are covered by a retirement plan whereby each employee, under most circumstances, upon mandatory
retirement at the age of 60 years or earlier termination of employment, is entitled to either a lump sum retirement
payment or pension payment based on compensation at the time of retirement and years of service. These employees’
retirement plans are funded.
The employees’ retirement benefits are accounted for as the liability for retirement benefits based on projected
benefit obligations and plan assets in conformity with the accounting standard for the employees’ retirement benefits.
Directors and corporate auditors are not covered by these plans. However, liabilities for directors’ and corporate
auditors’ retirement benefits include amounts equal to management’s estimate of the amounts which would be payable
to them if they retired at the balance sheet date. Amounts payable to directors and corporate auditors upon retirement
are subject to the approval of shareholders.
(j) Income taxes
Deferred income taxes are recognized applying the asset and liability method. Under this method, deferred tax assets and
liabilities are determined based on the difference between the financial reporting and the tax basis of the assets and
liabilities, and are measured using enacted tax rates and laws that will be in effect when the differences are expected to
reverse.
The Company and some of its consolidated subsidiaries adopted the consolidated taxation system effective from
the fiscal year ended March 31, 2013.
(k) Hedge accounting
The Group uses derivative financial instruments to manage exposures to fluctuations in foreign exchange and interest
rates and does not enter into the derivatives for trading or speculative purposes.
Forward exchange contracts are used for accounts receivable and payable denominated in foreign currencies. If the
13
contracts meet certain hedging criteria, the hedged items are translated at the contracted rates, and the Group defers
recognition of gains and losses resulting from changes in the fair value of the derivatives for future transactions until the
related losses and gains on the hedged transactions are recognized.
The Group enters into interest rate swap contracts for long-term loans. The swaps which qualify for hedge
accounting are not re-measured at market value, but the differential to be paid or received under the swap contracts are
accrued and included in interest expense or income (the special hedge accounting short-cut method for interest rate
swaps).
The Company assesses the effectiveness of the forward exchange contracts by comparing the contracted rate and
spot rate at the balance sheet date and expiration date. The effectiveness assessment of the interest rate swaps,
however, is not undertaken as they meet the hedging criteria for the special hedge accounting short-cut method.
(l) Appropriations of retained earnings
Appropriations of retained earnings are accounted for and reflected in the accompanying consolidated financial
statements basically when they are approved by the shareholders or resolved by the Board of Directors.
(m) Reclassifications
Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current
year’s presentation.
(n) Business Combinations and Non-Controlling Interests
Effective April 1, 2015, the Company adopted “Revised Accounting Standard for Business Combinations” (ASBJ
Statement No. 21), “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22) and
“Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7). Under these standards, minority
interests have been renamed non-controlling interests, and net income includes an amount attributable to noncontrolling interests.
3. Financial Instruments
(1) Management policy
In consideration of plans for capital expenditure, the Group raises funds through loans and bonds. Temporary cash
surpluses are invested in low-risk financial assets, and short-term capital is raised through loans. The Group uses
derivatives for the purpose of reducing risk and does not enter into derivatives for speculative or trading purposes.
(2) Financial instruments and risk management
Notes and accounts receivable are exposed to customer credit risk. The Group identifies and reduces risk of bad debt by
reviewing the financial positions of major customers and outstanding balances.
Notes and accounts receivable denominated in foreign currencies are also exposed to foreign exchange risk. To
reduce the risk, the Group enters into forward exchange contracts.
The Group holds marketable securities and investment securities, most of which are shares of other companies with
which the Group has business relationships, the subsidiaries and the affiliate. Those securities are exposed to market risk,
and the Group regularly reviews the fair values of the securities and the financial positions of the issuers.
The purpose of loans, bonds and finance leases is mainly to finance capital expenditure. Interest rate swaps are
used to avoid interest rate risk from loans with floating interest rates.
The Group manages liquidity risk by preparing and updating cash flow plans and maintaining sufficient funds.
14
The amount of financial instruments on the consolidated balance sheets and the fair value are as follows:
As of March 31,
Millions of yen
2014
Amount on
balance sheet
Assets
Cash and time deposits
Notes and accounts receivable
Allowance for doubtful accounts
Balance
Marketable securities and investment securities
Total assets
Liabilities
Notes and accounts payable
Short-term loans
Current portion of bonds
Current portion of long-term loans
Bonds
Long-term loans
Total liabilities
Derivatives
Fair value
Difference
¥ 43,664
40,389
(756)
39,633
18,441
¥101,739
¥ 43,664
n/a
n/a
39,633
18,441
¥101,739
—
n/a
n/a
—
—
—
¥ 24,418
7,380
10,000
646
10,000
25,731
¥ 78,176
(19)
¥
¥ 24,418
7,380
10,000
646
10,045
26,178
¥ 78,668
(19)
¥
—
—
—
—
45
446
¥491
—
As of March 31,
Millions of yen
2015
Amount on
balance sheet
Assets
Cash and time deposits
Notes and accounts receivable
Allowance for doubtful accounts
Balance
Marketable securities and investment securities
Total assets
Liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Bonds
Long-term loans
Total liabilities
Derivatives
Fair value
Difference
¥43,008
45,803
(1,030)
44,772
25,573
¥113,354
¥43,008
n/a
n/a
44,772
25,573
¥113,354
—
n/a
n/a
—
—
—
¥27,372
8,071
3,908
10,000
28,219
¥77,572
¥(6)
¥27,372
8,071
3,908
10,000
28,292
¥77,645
¥(6)
—
—
—
—
73
¥73
—
As of March 31,
Millions of yen
2016
Amount on
balance sheet
Assets
Cash and time deposits
Notes and accounts receivable
Allowance for doubtful accounts
Balance
Marketable securities and investment securities
Total assets
Liabilities
Notes and accounts payable
Electronically recorded obligations-operating
Short-term loans
Current portion of bonds
Current portion of long-term loans
Long-term loans
Total liabilities
Fair value
Difference
¥52,240
38,682
(806)
37,875
18,072
¥108,188
¥52,240
n/a
n/a
37,875
18,072
¥108,188
—
n/a
n/a
—
—
—
¥21,249
3,124
5,058
10,000
1,405
29,591
¥70,428
¥21,249
3,124
5,058
10,000
1,405
29,686
¥70,523
—
—
—
—
—
94
¥94
15
As of March 31,
Thousands of dollars
2016
Amount on
balance sheet
Assets
Cash and time deposits
Notes and accounts receivable
Allowance for doubtful accounts
Balance
Marketable securities and investment securities
Total assets
Liabilities
Notes and accounts payable
Electronically recorded obligations-operating
Short-term loans
Current portion of bonds
Current portion of long-term loans
Long-term loans
Total liabilities
Fair value
Difference
$463,613
343,290
(7,152)
336,128
160,383
$960,134
$463,613
n/a
n/a
336,128
160,383
$960,134
—
n/a
n/a
—
—
—
$188,578
27,724
44,888
88,746
12,468
262,610
$625,026
$188,578
27,724
44,888
88,746
12,468
263,454
$625,869
—
—
—
—
—
834
$834
4. Marketable Securities and Investment Securities
Marketable securities and investment securities quoted at an exchange as of March 31, 2014, 2015 and 2016
As of March 31,
Millions of yen
2014
Acquisition cost
Available-for-sale securities whose amount on balance sheet
exceeds acquisition cost
(1) Stocks
(2) Other
Subtotal
Available-for-sale securities whose amount on balance sheet
does not exceed acquisition cost
(1) Stocks
(2) Other
Subtotal
Total
Amount on
balance sheet
Difference
¥4,232
122
¥4,354
¥17,323
122
¥17,446
¥13,091
0
¥13,091
¥16
—
¥16
¥4,371
¥11
—
¥11
¥17,458
¥(4)
—
¥(4)
¥13,086
As of March 31,
Millions of yen
2015
Acquisition cost
Available-for-sale securities whose amount on balance sheet
exceeds acquisition cost
(1) Stocks
(2) Other
Subtotal
Available-for-sale securities whose amount on balance sheet
does not exceed acquisition cost
(1) Stocks
(2) Other
Subtotal
Total
16
¥4,389
131
¥4,521
—
—
—
¥4,521
Amount on
balance sheet
¥24,466
133
¥24,599
—
—
—
¥24,599
Difference
¥20,077
1
¥20,078
—
—
—
¥20,078
As of March 31,
Millions of yen
2016
Amount on
balance sheet
Acquisition cost
Available-for-sale securities whose amount on balance sheet
exceeds acquisition cost
(1) Stocks
(2) Other
Subtotal
Available-for-sale securities whose amount on balance sheet
does not exceed acquisition cost
(1) Stocks
(2) Other
Subtotal
Total
Difference
¥4,348
110
¥4,458
¥16,943
110
¥17,054
¥12,595
0
¥12,595
¥29
30
¥59
¥4,517
¥26
28
¥54
¥17,108
¥(2)
(2)
¥(4)
¥12,590
As of March 31,
Thousands of dollars
2016
Amount on
balance sheet
Acquisition cost
Available-for-sale securities whose amount on balance sheet
exceeds acquisition cost
(1) Stocks
(2) Other
Subtotal
Available-for-sale securities whose amount on balance sheet
does not exceed acquisition cost
(1) Stocks
(2) Other
Subtotal
Total
Difference
$38,587
976
$39,563
$150,363
976
$151,348
$111,776
0
$111,776
257
266
$ 523
$40,086
$
$
230
248
$
479
$151,828
$
(17)
(17)
$
(35)
$111,732
5. Derivative Financial Instruments
(1) Derivatives to which hedge accounting is not applied
(a) Currency related
As of March 31,
Millions of yen
2014
Contracted amount
Forward exchange contracts
Sales contracts
US$
Purchase contracts
¥
Total
Contracted amount
over one year
Fair value
Unrealized gain (loss)
¥566
—
—
—
15
¥582
—
—
(0)
¥(0)
(0)
¥(0)
As of March 31,
Millions of yen
2015
Contracted amount
Forward exchange contracts
Sales contracts
US$
Total
¥360
¥360
Contracted amount
over one year
—
—
Fair value
Unrealized gain (loss)
—
—
—
—
17
As of March 31,
Millions of yen
2016
Contracted amount
Forward exchange contracts
Sales contracts
US$
Total
¥338
¥338
Contracted amount
over one year
Fair value
—
—
Unrealized gain (loss)
—
—
—
—
As of March 31,
Thousands of dollars
2016
Contracted amount
Forward exchange contracts
Sales contracts
US$
Total
$2,999
$2,999
Contracted amount
over one year
Fair value
—
—
Unrealized gain (loss)
—
—
—
—
(2) Derivatives to which hedge accounting is applied
(a) Currency related
As of March 31,
Millions of yen
2014
Hedge accounting
method
Method where
hedged items
are translated at
contracted rates
Nature of
transaction
Forward exchange
contracts
Sales contracts
US$
Euro
Principle method
Forward exchange
contracts
Sales contracts
Euro
Total
Hedged item
Account
receivable
Account
receivable
Account
receivable
Contracted amount
Contracted amount
over one year
Fair value
¥5,556
—
¥ (48)
2,359
—
(36)
1,190
19
(19)
¥9,106
¥19
¥(104)
As of March 31,
Millions of yen
2015
Hedge accounting
method
Method where
hedged items
are translated at
contracted rates
Nature of
transaction
Forward exchange
contracts
Sales contracts
US$
Euro
Purchase contracts
US$
Principle method
Forward exchange
contracts
Sales contracts
Euro
Total
18
Hedged item
Account
receivable
Account
receivable
Contracted amount
Contracted amount
over one year
Fair value
¥7,641
—
¥(285)
1,299
—
93
Other current
liabilities
38
—
1
Account
receivable
24
—
(6)
¥9,003
—
¥(197)
As of March 31,
Millions of yen
2016
Hedge accounting
method
Method where
hedged items
are translated at
contracted rates
Nature of
transaction
Forward exchange
contracts
Sales contracts
US$
Euro
Total
Hedged item
Account
receivable
Account
receivable
Contracted amount
Contracted amount
over one year
Fair value
¥3,291
—
¥155
1,185
—
21
¥4,476
—
¥177
As of March 31,
Thousands of dollars
2016
Hedge accounting
method
Method where
hedged items
are translated at
contracted rates
Nature of
transaction
Forward exchange
contracts
Sales contracts
US$
Euro
Total
Hedged item
Account
receivable
Account
receivable
Contracted amount
Contracted amount
over one year
Fair value
$29,206
—
$1,375
10,516
—
186
$39,723
—
$1,570
(b) Interest related
As of March 31,
Millions of yen
2014
Hedge accounting
method
Nature of
transaction
Special hedge
accounting shortcut method for
interest rate swaps
Interest rate swap
contracts
Receive floating,
pay fixed
Total
Hedged item
Long-term loans
Contracted amount
Contracted amount
over one year
Fair value
¥14,600
¥14,403
*
¥14,600
¥14,403
*
As of March 31,
Millions of yen
2015
Hedge accounting
method
Nature of
transaction
Special hedge
accounting shortcut method for
interest rate swaps
Interest rate swap
contracts
Receive floating,
pay fixed
Total
Hedged item
Long-term loans
Contracted amount
Contracted amount
over one year
Fair value
¥20,433
¥19,233
*
¥20,433
¥19,233
*
As of March 31,
Millions of yen
2016
Hedge accounting
method
Nature of
transaction
Special hedge
accounting shortcut method for
interest rate swaps
Interest rate swap
contracts
Receive floating,
pay fixed
Total
Hedged item
Long-term loans
Contracted amount
Contracted amount
over one year
Fair value
¥19,462
¥18,712
*
¥19,462
¥18,712
*
19
As of March 31,
Thousands of dollars
2016
Hedge accounting
method
Nature of
transaction
Special hedge
accounting shortcut method for
interest rate swaps
Interest rate swap
contracts
Receive floating,
pay fixed
Total
Hedged item
Contracted amount
Long-term loans
Contracted amount
over one year
Fair value
$172,719
$166,063
*
$172,719
$166,063
*
* Interest rate swaps are accounted for as part of long-term loans. Therefore the fair value of the swaps is included in the
fair value of the underlying long-term loans.
6. Inventories
Inventories as of March 31, 2014, 2015 and 2016 comprise the following:
As of March 31,
Thousands of
dollars
Millions of yen
2014
¥14,384
11,837
21,248
¥47,471
Finished products
Work in process
Raw material and supplies
Total
2015
¥20,239
12,118
24,695
¥57,053
2016
¥15,328
12,203
23,867
¥51,399
2016
$136,031
108,297
211,812
$456,150
7. Short-Term and Long-Term Debts and Lease Obligations
The table below shows information on short-term and long-term debts and lease obligations:
As of March 31,
Interest rate
Short-term loans
Current portion of long-term loans
1.38*
0.79*
Long-term loans less current portion
0.73*
Yen unsecured bonds
Yen unsecured bonds
Euro-yen convertible bonds
1.73
1.00
—
Short-term lease obligations
—
Long-term lease obligations
—
Date of maturity as
of March 31, 2016
—
—
from September 30, 2017
to September 30, 2022
March 19, 2015
October 17, 2016
March 19, 2018
—
from April 30, 2017
to October 31, 2028
Thousands of
dollars
Millions of yen
2014
¥7,380
646
2015
¥8,071
3,908
2016
¥5,058
1,405
2016
$44,888
12,468
¥25,731
¥28,219
¥29,591
$262,610
10,000
10,000
12,000
—
10,000
12,000
—
10,000
11,980
—
88,746
106,318
¥432
¥283
¥279
$2,476
1,523
1,197
1,156
10,259
* The weighted average interest rate as of March 31, 2016
The aggregate annual maturities of long-term debt and lease obligations subsequent to March 31, 2016 are as
follows:
Year ending March 31,
2017
2018
2019
2020
2021
20
Long-term debt
Thousands of
dollars
Millions of yen
¥11,405
20,558
11,256
7,118
638
$101,215
182,445
99,893
63,170
5,662
Lease obligations
Thousands of
dollars
Millions of yen
¥279
229
170
112
96
$2,476
2,032
1,508
993
851
8. Employees’ Retirement Benefits
The Company and its domestic consolidated subsidiaries have defined benefit pension plans, which consist of a benefit
plan provided under the Welfare Pension Insurance Law of Japan, a corporate pension plan and a lump-sum payment
plan as well as defined contribution pension plans.
Some of the overseas consolidated subsidiaries have defined contribution plans as well as defined benefit plans.
(1) Multi-employer pension plan under which required contributions are accounted for as benefit costs
(a) Funded status
As of March 31,
Thousands of
dollars
Millions of yen
Fair value of plan assets
Benefit obligation
Net amount
2013
¥116,171
140,708
¥(24,537)
2014
¥126,998
146,473
¥(19,475)
2015
¥141,419
157,293
¥(15,874)
2015
$1,255,049
1,395,926
$(140,876)
(b) The Group’s proportion of the contributions to the aggregate pension contributions
As of March 31,
2013
8.45%
The Group’s proportion
2014
8.17%
2015
8.31%
(2) Reconciliation of changes in benefit obligations
Year ended March 31,
Thousands of
dollars
Millions of yen
Balance at beginning of year
Cumulative effects of changes in accounting policies
Restated balance
Service cost
Interest cost
Actuarial loss
Benefits paid
Other
Balance at end of year
2014
¥15,880
—
15,880
475
430
33
(744)
539
¥16,614
2015
¥16,614
(129)
16,485
513
463
3,124
(867)
542
¥20,262
2016
¥20,262
—
20,262
630
397
1,309
(803)
(264)
¥21,532
2016
$179,818
—
179,818
5,591
3,523
11,616
(7,126)
(2,342)
$191,089
(3) Reconciliation of changes in pension assets
Year ended March 31,
Thousands of
dollars
Millions of yen
Balance at beginning of year
Expected return on pension assets
Actuarial loss
Contributions by employer
Benefits paid
Other
Balance at end of year
2014
¥13,664
397
826
646
(699)
268
¥15,104
2015
¥15,104
456
1,368
691
(825)
619
¥17,415
2016
¥17,415
514
(1,224)
587
(764)
(290)
¥16,237
2016
$154,552
4,561
(10,862)
5,209
(6,780)
(2,573)
$144,098
(4) Reconciliation of changes in retirement benefit liabilities using a simplified method
Year ended March 31,
Thousands of
dollars
Millions of yen
Balance at beginning of year
Periodic benefit cost
Benefits paid
Balance at end of year
2014
¥43
10
(5)
¥48
2015
¥48
7
(0)
¥55
2016
¥55
7
(15)
¥47
2016
$488
62
(133)
$417
21
(5) Reconciliation of benefit obligations and pension assets to net defined benefit liabilities and assets on the
consolidated balance sheet
As of March 31,
Thousands of
dollars
Millions of yen
Funded benefit obligations
Pension assets
Unfunded benefit obligations
Net amount of liabilities and assets on
consolidated balance sheet
Net defined benefit liabilities
Net defined benefit assets
Net amount of liabilities and assets on
consolidated balance sheet
2014
¥16,029
(15,104)
924
634
2015
¥19,650
(17,415)
2,235
667
2016
¥20,961
(16,237)
4,723
618
2016
$186,022
(144,098)
41,915
5,484
1,558
2,902
5,342
47,408
2,270
(711)
3,367
(464)
5,616
(273)
49,840
(2,422)
¥1,558
¥5,342
¥2,902
$47,408
(6) Components of net periodic benefit costs
Year ended March 31,
Thousands of
dollars
Millions of yen
Service cost
Interest cost
Expected return on plan assets
Actuarial loss recognized in the year
Past service cost recognized in the year
Periodic benefit cost in simplified method
Net periodic benefit costs of retirement
benefit plan
2014
¥475
430
(397)
403
(79)
10
¥843
2015
¥513
463
(456)
367
(63)
7
2016
¥630
397
(514)
541
(70)
7
¥991
¥831
2016
$5,591
3,523
(4,561)
4,801
(621)
62
$8,794
(7) Remeasurements of defined benefit plans before related tax effects on the consolidated statements of comprehensive
income
Year ended March 31,
Thousands of
dollars
Millions of yen
2014
Past service cost
Actuarial loss
Total
—
—
—
2015
¥(63)
(1,388)
¥(1,452)
2016
¥(70)
(1,992)
¥(2,063)
2016
$(621)
(17,678)
$(18,308)
(8) Remeasurements of defined benefit plans before related tax effects on the consolidated balance sheets
As of March 31,
Thousands of
dollars
Millions of yen
Unrecognized past service cost
Unrecognized actuarial loss
Total
2014
¥(220)
2,410
¥2,189
2015
¥(157)
3,798
¥3,641
2016
¥(86)
5,791
¥5,705
(9) Breakdown of pension assets
As of March 31,
Stocks
Bonds
Insurance assets
Other
Total
22
2014
45.4%
31.6%
13.1%
9.9%
100.0%
2015
48.1%
29.8%
11.6%
10.5%
100.0%
2016
45.2%
30.2%
12.7%
11.9%
100.0%
2016
$(763)
51,393
$50,630
(10) Assumptions used in accounting for the plans
Year ended March 31,
2014
Mainly 2.0%
Mainly 1.5%
Discount rate
Long-term expected rate of return on plan assets
2016
Mainly 0.4%
Mainly 1.5%
2015
Mainly 1.1%
Mainly 1.5%
(11) Contributions to defined contribution pension plans by the Company and its consolidated subsidiaries
Year ended March 31,
Thousands of
dollars
Millions of yen
2014
¥657
2015
¥762
2016
¥829
2016
$7,357
9. Leases
Lease assets accounted for as finance leases are depreciated using the same methods applied to the tangible fixed assets
which the Company owns, except for those not accompanying the transfer of ownership, which are depreciated to
residual value of zero by the straight-line method over the lease terms.
Note that finance leases not accompanying the transfer of ownership which commenced before March 31, 2008
continue to be accounted for as operating leases in accordance with accounting principles and practices generally
accepted in Japan.
Lease payments, including interest portion, for finance leases accounted for as operating leases are as follows:
Year ended March 31,
Thousands of
dollars
Millions of yen
Lease payments
Equivalent of depreciation expense
2014
¥14
¥14
2016
2015
—
—
2016
—
—
—
—
Future lease payments, including interest portion, subsequent to March 31, 2014, 2015 and 2016 for non-cancelable
operating leases are as follows:
Thousands of
dollars
Millions of yen
Due within one year
Due after one year
Total
2014
¥ 675
3,023
¥3,698
2015
¥ 960
4,328
¥5,289
2016
¥1,000
5,057
¥6,058
2016
$ 8,874
44,879
$53,762
23
10. Income Taxes
Breakdown of deferred tax assets and liabilities is as follows:
Year ended March 31,
Thousands of
dollars
Millions of yen
2014
Deferred tax assets:
Tax loss carry forward
Accrued expenses
Directors’ and corporate auditors’
retirement benefits
Valuation loss on investment securities
Long-term accounts payable
Net defined benefit liabilities
Other
Subtotal
Valuation allowance
Deferred tax assets
Deferred tax liabilities:
Unrealized gains on available-for-sale
securities
Net defined benefit assets
Tax depreciation over book
Other
Deferred tax liabilities
Net deferred tax assets (liabilities)
2016
2015
2016
¥6,647
1,258
¥3,412
1,768
¥1,349
1,575
$11,971
13,977
16
18
21
186
703
318
614
1,124
10,681
(7,073)
¥3,608
637
288
1,007
1,767
8,901
(3,346)
¥5,555
602
273
1,049
1,885
6,757
(1,813)
¥4,944
5,342
2,422
9,309
16,728
59,966
(16,089)
$43,876
¥(4,538)
¥(6,262)
¥(3,792)
$(33,652)
(186)
(362)
(34)
(5,122)
¥(1,514)
(91)
(456)
(1)
(6,811)
¥(1,256)
(142)
(470)
(47)
(4,452)
¥492
(1,260)
(4,171)
(417)
(39,510)
$4,366
Reconciliation between the statutory and effective tax rates is as follows:
Year ended March 31,
Statutory tax rate
Valuation allowance
Difference in statutory tax rates for subsidiaries
Other
Effective tax rate
2014
38.0%
(12.3)
(8.4)
0.9
18.2%
2015
35.6%
(23.9)
(5.1)
5.0
11.6%
2016
33.1%
(10.3)
(2.4)
0.2
20.6%
The “Act on Partial Revision of the Income Tax Act and Other Acts” and “Act on Partial Revision of the Local Tax
Act and Other Acts” were passed on March 29, 2016. Following these Acts, the statutory tax rate was changed from
32.28% to 30.88% for temporary differences expected to reverse in the period from April 1, 2016 to March 31, 2018
and to 30.65% for those expected to reverse on or after April 1, 2018.
This change resulted in increases of ¥140 million ($1,242 thousand) in net deferred tax assets, ¥55 million ($488
thousand) in income taxes-deferred, ¥201 million ($1,783 thousand) in unrealized gains on available-for-sale securities
and ¥4 million ($35 thousand) in remeasurements of defined benefit plans.
11. Research and Development Costs
Research and development costs are as follows:
Year ended March 31,
Thousands of
dollars
Millions of yen
Research and development costs
24
2014
¥5,018
2015
¥5,188
2016
¥5,708
2016
$50,656
12. Impairment Loss
In the year ended March 31, 2015 the Company recognized an impairment loss on the following assets which were no
longer in use:
Class of assets
Location
Land and buildings
Millions of yen
Atsugi-shi, Kanagawa, Japan
¥140
The recoverable amount of the assets was determined using their fair value less costs to sell.
13. Retained Earnings and per Share Data
In accordance with the Japanese Corporation Law, dividends and the related appropriations of retained earnings may be
approved by the shareholders or resolved by the Board of Directors after the end of each fiscal year. The dividends and
the related appropriations of retained earnings are not reflected in the financial statements at the end of such fiscal years
but recorded at the time they are approved or become effective. However, dividends per share shown in the
accompanying consolidated statements of income are included in the periods to which they are applicable.
Earnings per share are based on the weighted average number of shares of common stock outstanding during each
period.
Cash dividends per share are based on cash dividends declared as applicable to the respective periods.
A summary of information regarding dividends is as follows:
(1) Dividends paid in the year ended March 31, 2014
Resolution
General shareholders' meeting
(June 21, 2013)
Board of Directors
(October 31, 2013)
Class of
shares
Common
stock
Common
stock
Amount of dividends
Dividend
per share
¥
556 million
¥5.00
¥
556 million
¥5.00
Funds for
dividends
Record date
Effective date
Retained
March 31, 2013
June 24, 2013
earnings
Retained
September 30, 2013 December 5, 2013
earnings
(2) Dividends in respect of the year ended March 31, 2014 which become payable after the balance sheet date
Resolution
General shareholders' meeting
(June 25, 2014)
Class of
shares
Common
stock
Amount of dividends
¥
556 million
Dividend
per share
Funds for
dividends
Record date
Effective date
¥5.00
Retained
earnings
March 31, 2014
June 26, 2014
Dividend
per share
Funds for
dividends
Record date
Effective date
(3) Dividends paid in the year ended March 31, 2015
Resolution
General shareholders’ meeting
(June 25, 2014)
Board of Directors
(October 31, 2014)
Class of
shares
Common
stock
Common
stock
Amount of dividends
¥
556 million
¥5.00
¥
667 million
¥6.00
Retained
March 31, 2014
June 26, 2014
earnings
Retained
September 30, 2014 December 5, 2014
earnings
(4) Dividends in respect of the year ended March 31, 2015 which become payable after the balance sheet date
Resolution
General shareholders’ meeting
(June 24, 2015)
Class of
shares
Common
stock
Amount of dividends
¥
889 million
Dividend
per share
Funds for
dividends
Record date
Effective date
¥8.00
Retained
earnings
March 31, 2015
June 25, 2015
Record date
Effective date
(5) Dividends paid in the year ended March 31, 2016
Resolution
General shareholders’ meeting
(June 24, 2015)
Board of Directors
(October 30, 2014)
Class of
shares
Amount of dividends
Dividend
per share
Funds for
dividends
Common
stock
Common
stock
¥
889 million
$7,889 thousand
¥
890 million
$7,898 thousand
¥8.00
$0.07
¥8.00
$0.07
Retained
March 31, 2015
June 25, 2015
earnings
Retained
September 30, 2015 December 4, 2015
earnings
(6) Dividends in respect of the year ended March 31, 2016 which become payable after the balance sheet date
Resolution
General shareholders’ meeting
(June 22, 2016)
Class of
shares
Amount of dividends
Dividend
per share
Funds for
dividends
Record date
Effective date
Common
stock
¥
880 million
$7,809 thousand
¥8.00
$0.07
Retained
earnings
March 31, 2016
June 23, 2016
25
14. Comprehensive Income
Reclassification adjustments and tax effects relating to components of other comprehensive income are as follows:
Year ended March 31,
Thousands of
dollars
Millions of yen
2014
Unrealized gains on available-for-sale securities:
Gains arising during the period
Reclassification adjustment
Tax effect
Unrealized gains on available-for-sale
securities
2015
2016
2016
¥3,778
(153)
(1,281)
¥6,990
(0)
(1,723)
¥ (7,453)
(33)
2,470
$(66,143)
(292)
21,920
¥2,343
¥5,265
¥ (5,016)
$(44,515)
Deferred gains on hedges:
Gains arising during the period
Reclassification adjustment
Tax effect
Deferred gains on hedges
(46)
—
17
¥(29)
7
—
(2)
¥4
—
7
(2)
¥4
—
62
(17)
$35
Foreign currency translation adjustments:
Adjustments arising during the period
¥2,701
¥4,065
¥(3,297)
$(29,259)
—
—
—
—
(1,755)
303
396
¥(1,055)
(2,534)
470
59
¥ (2,004)
(22,488)
4,171
523
$(17,784)
¥5,016
¥8,280
¥(10,313)
$(91,524)
Remeasurements of defined benefit plans:
Remeasurements arising during the period
Reclassification adjustment
Tax effect
Remeasurements of defined benefit plans
Other comprehensive income
15. Cash and Cash Equivalents
Reconciliation of cash and time deposits on the consolidated balance sheets to cash and cash equivalents on the
consolidated statements of cash flows is as follows:
As of March 31,
Thousands of
dollars
Millions of yen
Cash and time deposits
Marketable securities
Subtotal
Time deposits with maturities over three months
Cash and cash equivalents
26
2014
¥43,664
1,004
44,669
(2,031)
¥42,638
2015
¥43,008
1,005
44,014
(1,782)
¥42,232
2016
¥52,240
1,102
53,343
(978)
¥52,364
2016
$463,613
9,779
473,402
(8,679)
$464,714
16. Segment Information
(1) Reportable segment information
The Group’s reportable segments are defined as individual units where independent financial information is available and
which are subject to regular review by the Board of Directors to evaluate their results and decide the allocation of
management resources. The reportable segments are summarized as follows:
Reportable segment I is a segment for which Makino Milling Machine Co., Ltd. is responsible. Its main areas are
Japan, the Republic of Korea, China, Oceania, Russia, Norway, the United Kingdom, and all other areas not included in
reportable segments II, III or IV.
Reportable segment II is a segment for which MAKINO ASIA PTE LTD (Singapore) is responsible. Its main areas are
China, ASEAN and India.
Reportable segment III is a segment for which MAKINO INC. (Mason, Ohio, the United States of America) is
responsible. It covers all countries in North and South America.
Reportable segment IV is a segment for which MAKINO Europe GmbH (Hamburg, Germany) is responsible. It covers
all countries in the European continent except Norway.
The accounting policies on the reportable segments are consistent with those presented in Note 2. Income for each
reportable segment denotes operating income, and intersegments are based on market prices in general.
Year ended March 31, 2014
(Millions of yen)
I
Net sales:
External customers
Intersegment
Total
Segment income
Segment assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure
¥42,838
35,986
78,825
2,039
167,212
3,056
0
¥10,270
II
¥25,838
7,348
33,187
1,274
37,045
634
—
¥1,890
III
¥41,443
243
41,687
1,938
31,603
189
—
¥166
IV
¥13,775
133
13,909
257
13,518
129
—
¥48
Year ended March 31, 2015
¥51,956
49,147
101,104
8,291
184,168
4,065
0
¥5,395
II
¥32,683
9,725
42,409
2,514
46,083
802
—
¥1,465
III
¥50,653
469
51,122
2,482
45,563
236
—
¥516
IV
¥14,212
188
14,401
391
12,291
137
—
¥287
Year ended March 31, 2016
Total
¥149,506
59,531
209,037
13,680
288,107
5,241
0
¥7,665
(Millions of yen)
I
Net sales:
External customers
Intersegment
Total
Segment income
Segment assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure
¥123,896
43,712
167,608
5,511
249,379
4,010
0
¥12,377
(Millions of yen)
I
Net sales:
External customers
Intersegment
Total
Segment income
Segment assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure
Total
¥58,839
46,906
105,745
8,339
178,199
4,512
—
¥6,168
II
¥42,567
8,704
51,271
3,134
45,910
831
—
¥1,564
III
¥47,092
474
47,566
2,073
34,318
255
—
¥306
IV
¥13,480
87
13,568
373
11,966
157
—
¥748
Total
¥161,979
56,172
218,152
13,921
270,394
5,756
—
¥8,788
27
Year ended March 31, 2016
Net sales:
External customers
Intersegment
Total
Segment income
Segment assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure
(Thousands of dollars)
I
II
III
IV
Total
$522,177
416,276
938,454
74,006
1,581,460
40,042
—
$54,739
$377,768
77,245
455,014
27,813
407,436
7,374
—
$13,880
$417,926
4,206
422,133
18,397
304,561
2,263
—
$2,715
$119,630
772
120,411
3,310
106,194
1,393
—
$6,638
$1,437,513
498,509
1,936,031
123,544
2,399,662
51,082
—
$77,990
Reconciliation of reportable segment information to consolidated financial statements
Year ended March 31,
Thousands of
dollars
Millions of yen
Net sales
Elimination
Consolidated net sales
2014
¥167,608
(43,712)
¥123,896
2015
¥209,037
(59,531)
¥149,506
2016
¥218,152
(56,172)
¥161,979
2016
$1,936,031
(498,509)
$1,437,513
Year ended March 31,
Thousands of
dollars
Millions of yen
Segment income
Elimination
Consolidated operating income
2014
¥5,511
(600)
¥4,910
2015
¥13,680
(1,655)
¥12,025
2016
¥13,921
544
¥14,465
2016
$123,544
4,827
$128,372
Year ended March 31,
Thousands of
dollars
Millions of yen
Segment assets
Elimination
Consolidated total assets
2014
¥249,379
(30,879)
¥218,499
2015
¥288,107
(42,650)
¥245,456
2016
¥270,394
(36,130)
¥234,264
2016
$2,399,662
(320,642)
$2,079,020
Year ended March 31,
Thousands of
dollars
Millions of yen
Depreciation and amortization
Elimination
Amount on consolidated financial statements
2014
¥4,010
(2)
¥4,007
2015
¥5,241
(0)
¥5,241
2016
¥5,756
(11)
¥5,745
2016
$51,082
(97)
$50,985
Year ended March 31,
Thousands of
dollars
Millions of yen
Capital expenditure
Elimination
Amount on consolidated financial statements
28
2014
¥12,377
(24)
¥12,352
2015
¥7,665
(15)
¥7,649
2016
¥8,788
(55)
¥8,732
2016
$77,990
(488)
$77,493
(2) Geographical information
Year ended March 31,
Thousands of
dollars
Millions of yen
Sales by destination
Japan
USA
Americas, excluding USA
China
Asia, excluding China
Europe
Other
Total
2014
2015
2016
¥34,781
31,530
9,188
16,098
15,169
15,405
1,721
¥123,896
¥36,761
39,818
9,021
22,817
20,838
18,906
1,343
¥149,506
¥46,429
38,655
9,285
31,625
18,490
14,787
2,705
¥161,979
2016
$412,042
343,051
82,401
280,662
164,093
131,230
24,006
$1,437,513
Year ended March 31,
Thousands of
dollars
Millions of yen
2014
Property, plant and equipment
Japan
Americas
Asia
Europe
Total
¥43,158
1,581
9,306
1,978
¥56,024
2015
¥44,449
2,088
10,446
1,930
¥58,914
2016
2016
¥45,583
1,971
10,077
2,431
¥60,063
$404,534
17,492
89,430
21,574
$533,040
2016
¥15.88
30.64
27.33
35.72
2016
$0.14
0.27
0.24
0.31
17. Quarterly Earnings per Share
Quarterly earnings per share attributable to owners of the parent are as follows:
Yen
Three months ended
June 30
September 30
December 31
March 31
2014
¥(13.88)
6.61
7.98
37.89
2015
¥ 0.53
23.02
27.40
51.98
Dollars
29
30
31
BOARD OF DIRECTORS AND CORPORATE AUDITORS
Chairman
President
Executive Vice President, Director
Vice President, Director
Director
Director
Director
Director
Corporate Auditor
Corporate Auditor
Corporate Auditor
Shun Makino
Shinichi Inoue
Toshiyuki Nagano
Tatsuaki Aiba
Shinji Koike
Yukihisa Takayama
Yuichiro Tsuchiya
Ichiro Terato
Eiji Fukui
Kazuo Hiruta
Jiro Nakashima
As of June 23, 2016
CORPORATE DATA
Makino Milling Machine Co., Ltd.
Date of Foundation May 1, 1937
Paid-in Capital
¥19,263 million
Activities
Manufacture, sale and export of machine tools
Head Office
3-19, Nakane 2-chome, Meguro-ku, Tokyo 152-8578, Japan
Phone : +81-3-3717-1151
Fax
: +81-3-3725-2105
Research Laboratory Atsugi (Kanagawa)
Domestic Works
Atsugi (Kanagawa), Fuji-Katsuyama (Yamanashi)
Overseas Works
MAKINO ASIA PTE LTD (Singapore)
MAKINO CHINA CO., LTD (China)
MAKINO INDIA PRIVATE LIMITED (India)
Sales & Service Offices Tokyo, Osaka, Nagoya and 14 other offices
Overseas Sales & Service Offices
USA, Germany, Singapore, Korea, China, India and others
Consolidated Subsidiaries
See page 12.
As of June 30, 2016
32
3-19, Nakane 2-chome, Meguro-ku, Tokyo 152-8578, Japan
Phone : +81-3-3717-1151
Fax : +81-3-3725-2105
URL : http://www.makino.co.jp/
Printed in Japan