TEIKOKU ELECTRIC MFG. CO., LTD.

Consolidated Balance Sheet

March 31, 2016

U.S. Dollars U.S. Dollars

Thousands of Yen (Note 1) Thousands of Yen (Note 1)
ASSETS 2016 2015 2016 LIABILITIES AND EQUITY 2016 2015 2016

CURRENT ASSETS: CURRENT LIABILITIES:

Cash and cash equivalents (Note 10) 9,545,296 9,590,401 $ 84,756,671 Short-term bank loans (Notes 5 and 10) 1,093,159 626,418 $ 9,706,615
Short-term investments (Notes 3 and 10) 376,713 1,199,582 3,344,989 Current portion of long-term lease obligations 177,982 171,027 1,580,373
Receivables (Notes 10 and 13): Payables (Notes 10 and 13):
Trade notes 1,173,958 1,116,977 10,424,067 Trade notes 642,963 877,610 5,709,140
Trade accounts 5,940,249 5,820,783 52,745,952 Trade accounts 1,387,201 1,355,149 12,317,534
Other 297,933 267,942 2,645,469 Notes and accounts payable-construction and other 551,410 724,851 4,896,203
Allowance for doubtful accounts (295,101 ) (308,064 ) (2,620,329 ) Income taxes payable (Note 10) 196,577 552,982 1,745,488
Inventories (Note 4) 4,273,817 3,980,549 37,949,010 Accrued expenses 640,223 1,017,878 5,684,803
Deferred tax assets (Note 8) 428,897 402,498 3,808,354 Advances received 509,786 629,007 4,526,602
Prepaid expenses and other current assets 215,494 151,815 1,913,458 Deferred tax liabilities (Note 8) 24,927 184,069 221,340
Other current liabilities 244,738 169,860 2,173,131
Total current assets 21,957,256 22,222,483 194,967,641
Total current liabilities 5,468,966 6,308,851 48,561,229
PROPERTY, PLANT AND EQUIPMENT (Note 5):
Land 1,688,115 1,688,120 14,989,477 LONG-TERM LIABILITIES:
Buildings and structures 5,507,092 5,548,354 48,899,767 Long-term lease obligations 398,349 520,556 3,537,103
Machinery and equipment 4,847,541 4,780,623 43,043,344 Liability for retirement benefits (Note 6) 1,007,370 933,209 8,944,863
Lease assets 1,036,918 981,189 9,207,226 Deferred tax liabilities (Note 8) 179,134 31,864 1,590,605
Construction in progress 923,424 101,206 8,199,463 Other long-term liabilities 183,512 179,209 1,629,480
Other 1,189,451 1,183,031 10,561,629
Total 15,192,541 14,282,523 134,900,906 Total long-term liabilities 1,768,365 1,664,838 15,702,051
Accumulated depreciation (8,356,306 ) (7,856,726 ) (74,199,126 )
CONTINGENT LIABILITIES (Note 11)
Net property, plant and equipment 6,836,235 6,425,797 60,701,780
EQUITY (Notes 7 and 14):
INVESTMENTS AND OTHER ASSETS: Common stock authorized, 69,200,000 shares; issued,
Investment securities (Notes 3 and 10) 1,423,201 1,739,347 12,637,194 20,400,138 shares in 2016 and 2015 3,118,119 3,118,119 27,687,075
Software 420,651 39,813 3,735,140 Capital surplus 3,306,348 3,306,348 29,358,444
Software in progress 399,290 Retained earnings 16,381,219 15,266,085 145,455,679
Asset for retirement benefits (Note 6) 1,231 21,487 10,930 Treasury stock at cost, 12,750 shares in 2016 and 2015 (9,727 ) (9,727 ) (86,366 )
Deferred tax assets (Note 8) 287,181 127,095 2,550,005 Accumulated other comprehensive income:
Other assets 247,767 247,005 2,200,023 Unrealized gain on available-for-sale securities 400,555 614,727 3,556,698
Allowance for doubtful accounts (25,400 ) (29,800 ) (225,537 ) Foreign currency translation adjustments 860,052 1,016,064 7,636,759
Defined retirement benefit plans (145,775 ) (92,788 ) (1,294,393 )
Total investments and other assets 2,354,631 2,544,237 20,907,755 Total equity 23,910,791 23,218,828 212,313,896

TOTAL 31,148,122 31,192,517 $ 276,577,176 TOTAL 31,148,122 31,192,517 $ 276,577,176

See notes to consolidated financial statements.

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