Financial Report 2017Year Ended March 31, 2017

TBK Group develops and manufac-tures important safety parts for medium-to-heavy commercial and passenger vehicles, such as brakes, water pumps for engine cooling, oil pumps for lubrication, and a wide range of engine components and other products.

Water Pumps Oil Pumps Energy-saving oil pumps

Camshafts Turbocharger bearing housings Cylinder heads/Crankcases

Retarders Re-generation type Retarders

Electromotive Pumps

Brakes and related components

Engine components (Pumps)

Other engine components

Other components

Brakes and related components

Engine components (Pumps)

Other engine components

Other components

Brakes and related components

Engine components (Pumps)

Other engine components

Other components

Brakes and related components

Engine components (Pumps)

Other engine components

Other components

Brakes and related components

Engine components (Pumps)

Other engine components

Other components

Brakes (42.5%)(For vehicles and construction eqp.)

Engine components (Pumps) (42.5%)(for vehicles and construction eqp.)

Other engine components (16.6%) (for vehicles and construction eqp.)

Other (5.4%)(Real estate lending and other)

Consolidated Financial HighlightsTBK Co., Ltd. and Consolidated Subsidiaries

For the years ended March 31, 2017, 2016 and 2015

1

2015 ’16 ’17

Net Sales

47,058 47,086 46,640

(¥ million)

2015 ’16 ’17

Operating Income

2,934

1,345

1,818

(¥ million)

2015 ’16 ’17

Net Income (loss) attributable to ownersof the parent

2,152

633

(82)

(¥ million)

2015 ’16 ’17

Total Assets

61,399 63,34957,443

(¥ million)

2015 ’16 ’17

Net Assets

32,07929,819 29,851

(¥ million)

2015 ’16 ’17

Cash dividends per share

16.0 16.0 16.0

(¥)

2015 ’16 ’17

ROE

7.4

2.1

(0.3)

(%)

2015 ’16 ’17

Equity ratio

50.246.1

51.1

(%)

2015 ’16 ’17

Net sales by the regionJapan

35,04132,366 31,152

(¥ million)

2015 ’16 ’17

Net sales by the regionAsia

10,268

12,78314,011

(¥ million)

2015 ’16 ’17

Net sales by the regionAmericas

1,7461,935

1,476

(¥ million)

ContentsConsolidated Financial Highlights 1

Message from the President 2

Corporate Governance System 4

Consolidated Financial Statements 6

Corporate Data 13

Message from the President

Fiscal 2016 in Review

In fi scal 2016, ended March 31, 2017, the business environment for

the TBK Group (TBK Co., Ltd. and consolidated subsidiaries) was

mixed. In Japan, total annual registrations of ordinary trucks (those

with payload of four tons or more) increased 11.2% year on year,

to 98,106 vehicles. In addition to solid renewal demand caused by

reaction to investment restraint among truck users over many years,

the sector benefi ted from replacement demand stemming from

tightened regulations on exhaust gas emissions.

Meanwhile, the truck manufacturing sector reported a slug-

gish overall performance, due mainly to weak demand in Southeast

Asia, although exports to North America were healthy. In addition, the construction machinery and

industrial machinery sectors continued performing weakly, despite signs of recovery in demand from

resource-rich countries and emerging nations.

By geographical region, in Japan the Group’s automotive components business posted a 2.7% year-

on-year decrease in sales, to ¥31,740 million, and a 22.6% increasing in operating income, to ¥1,346

million, and its real property leasing business reported a 36.2% decline in sales, to ¥343 million, and a

62.4% fall in operating income, to ¥83 million. Group companies in Asia (except Japan) recorded a 7.4%

increase in combined sales, to ¥16,011 million, and a 12.5-fold jump in operating income, to ¥552

million. In North America, sales declined 23.6%, to ¥1,491 million, and operating income fell 69.6%,

to ¥41 million.

As a result, the TBK Group posted consolidated net sales of ¥46,640 million, down 0.9% from the

previous year. While our performance was affected by weak sales in emerging nations and the loss of

some commercial rights, we benefi ted from expansion of rights covering turbo engine parts and other

products, centered on Thailand. Thanks to investments to streamline domestic production and cost-

cutting efforts, operating income increased 35.2%, to ¥1,818 million, and ordinary income jumped

56.4%, to ¥1,799 million.

The Group reported a loss attributable to owners of parent of ¥82 million, compared with profi t

attributable to owners of parent of ¥633 million in the previous fi scal year. This refl ected various

factors, including a gain on sale of a former factory site due to a reassessment of domestic business

resources (extraordinary income), a loss on sales of fi xed assets (extraordinary loss), receipt of “Fukushima

Industrial Restoration Corporate Relocation Subsidy” (extraordinary income), and loss on reduction

of fi xed assets (extraordinary loss).

2

Targeting Business Expansion

The TBK Group continues emphasizing product development aimed at acquiring new commercial

rights. To this end, we will introduce a new lightweight brake that helps users cut their costs, and we

will strive to cultivate and expand sales rights for brakes, electric pumps, and other products in the

commercial vehicle field. In addition, we are developing vehicle start-assist systems utilizing retarders

and other regenerative technologies.

We will continue working to expand our business in overseas markets earmarked for future

growth. In Thailand, for example, subsidiary TBK Technology (Thailand) Co., Ltd., our new produc-

tion base for brake friction materials, is engaged in production and sales activities in response to the

growing local production operations of client companies. In China, identified as a medium-to-long-

term growth market, we transformed TBK China Co., Ltd. into a consolidated subsidiary in order

to enhance the efficiency of our operations in that nation. We also converted affiliate Changchun

FAWSN TBK Co., Ltd. into an equity-method affiliate, due to its increasing influence on the Com-

pany’s earnings. In addition, our subsidiaries in the United States and India are striving to expand their

businesses -especially in pump products -and reinforce their income foundations.

Outlook

Looking ahead, the domestic truck manufacturing sector is expected to remain steady. We also antici-

pate continued medium- and long-term economic growth in Asia, despite some weakness in the short

term.

While we feel that market recovery in Southeast Asia will require more time, we will continue focus-

ing on expanding sales and improving product efficiency in Japan and elsewhere in Asia. In these and

other ways, we will work rigorously to reduce overall costs in an effort to improve our medium- and

long-term results.

For fiscal 2017, ending March 2018, we forecast consolidated net sales of ¥46.0 billion, operating

income of ¥1.5 billion, and profit attributable to owners of parent of ¥1.0 billion.

With respect to appropriation of profits, our basic policy is to continue paying stable dividends while

building a stable long-term income foundation and establishing a sound financial position, in our on-

going quest to enhance corporate value.

Takaaki Kishi

President

3

Basic ApproachAt TBK, our basic approach to corporate governance places emphasis on expediting management decision-making and carrying out smooth execution of business operation activities, as well as ensuring transparency in decision-making and execution processes, and eliminating illegality via mutual checks and balances. Furthermore, we believe that in addition to providing for rapid, strategic decision-making and oversight by a board of directors that is well-acquainted with the vehicle components manufacturing industry and the management concerns of this company, a two-tier system consisting of oversight and auditing by an outside director and outside corporate auditors is an effi cient way to ensure the trust of our shareholders and inves-tors. As such, we have decided that the Company with Board of Corporate Auditors model is a suitable one for our company. With respect to the Corporate Governance Code formulated by the Tokyo Stock Ex-change, TBK actively applies such items as are applicable in line with its stipulated principles, carries out increased strengthening of its corporate governance, and aims to realize sustainable growth and enhanced corporate Value.

Corporate Governance System

Compliance StructureIn order to improve actual compliance effectiveness, TBK is reconfi guring its compliance promotion structure to enable company offi cers and all employees to act in accordance with laws, regulations, articles of incorporation and management principles. We are also moving forward with education and recommendations for punishment to address any violations committed by company offi cers or em-ployees.

Shareholder’s Meeting

Board of Directors

Management System

Items Decision

Board of Executive Officers

Report Indicate

Execution Management

Management Meeting

Divisions and Subsidiaries

Board of Corporate Auditors

Independent Auditors

Appointment Appointment

Coope-ration

Coope-ration

Notify Coope-ration

Audit

Audit

Report

Management Monitoring

Risk/Compliance Committee and Internal Audit Committee

Operational Audit Office

Appointment

Audit/Preven-tive measure

4

Risk Management SystemIn order to implement our risk management system, we have established a set of risk management and compliance rules. Risk and compliance committee meetings and subcommittee meetings are held regularly once per quarter, with discussions that include reports from subsidiaries, which are conveyed periodically to the board of directors so that appropriate measures and follow-up verifica-tion are carried out.

Internal Auditing and Auditing by Corporate AuditorsInternal auditing at TBK is carried out primarily by the Business Operation Auditing Office, and with regard to the legality, effectiveness, efficiency and other concerns of the operations of each divi-sion and at domestic and foreign subsidiaries, audits are performed that include measures for product quality and the environment. Concerning legality, in view of our social responsibility as a publicly listed company, we are also paying special attention to the Subcontract Act, the Antimonopoly Act and other laws. Auditing by corporate auditors is carried out by all the corporate auditors (outside corporate auditors), who convene each month for the meeting of the board of corporate auditors, and attend and convey opinions at the meeting of the board of directors as well. Standing corporate auditors in particular are responsible for performing audits of the Executive Operations Division, including sub-sidiary operations, and do so by attending and conveying their opinions at executive officer meetings and all other committee meetings.

Outside Directors and Outside Corporate AuditorsIn order to oversee the directors’ performance of duties and enhance the functioning of the board of directors from an independent standpoint, TBK has appointed two (2) outside directors and three (3) outside corporate auditors. The criteria for their appointment are based on rules concerning independence set forth by the Stock Exchange. Outside directors Hiroshi Takahashi and Masayuki Yamazaki, on the basis of their broad knowl-edge and insight, and their wealth of experience and achievement in corporate management at banks and industrial firms, have been selected to oversee the directors’ performance of duties from an independent standpoint. There is no relationship of vested interest between the outside directors and TBK at this time. Outside corporate auditor and standing corporate auditor Keisuke Fukumoto, on the basis of his experience handling internal auditing duties at life insurance companies, his broad knowledge of and insight into corporate governance and his preservation of independence, has been selected to oversee the directors’ performance of duties with a fair and objective standpoint. Concurrently, Mr. Fuku-moto holds the post of part-time corporate auditor for Group companies TSK, TBR, TBK Sales and TBK Tosho. Outside corporate auditor Mitsunori Matsumoto, on the basis of his experience in corporate management and his broad knowledge and insight, as well as his prior two-year track record as an outside corporate auditor for TBK, has been judged capable of auditing the directors’ performance of duties with a fair and objective standpoint. Outside corporate auditor Keiichi Otsuka, on the basis of his high level of expertise with fi-nance and accounting as a certified public accountant, and his wealth of experience in accounting auditing, has been judged capable of auditing the directors’ performance of duties with a fair and objective standpoint.

5

Thousands of Millions of yen U.S. dollars (Note) ASSETS 2017 2016 2017Current Assets: Cash on hand and at bank .................................................................. ¥ 5,722 ¥ 2,398 $ 51,002 Notes and accounts receivable ............................................................ 11,963 11,900 106,631 Inventory assets .................................................................................. 4,082 3,851 36,384 Corporate tax receivable .................................................................... 31 222 276 Deferred tax assets ............................................................................. 426 366 3,797 Other ............................................................................................... 1,921 1,478 17,122 Reserve for possible loan losses ........................................................... (4) (5) (35)

Total current assets ........................................................................ ¥24,145 ¥20,211 $215,215

Property, Plant and Equipment: Tangible Fixed Assets: Buildings and structures ................................................................ ¥ 7,250 ¥10,584 $ 64,622 Machinery and equipment ............................................................ 11,942 11,069 106,444 Land ............................................................................................. 4,301 11,841 38,336 Construction in progress ............................................................... 2,978 3,363 26,544 Other ........................................................................................... 1,199 1,113 10,687

27,691 37,971 246,822 Intangible Fixed Assets: Software ....................................................................................... 315 339 2,807 Other ........................................................................................... 122 74 1,087 437 414 3,895 Investment and Other Assets: Investment securities ..................................................................... 3,575 3,438 31,865 Investment in capital ..................................................................... 839 634 7,478 Long-term loans ........................................................................... 333 270 2,968 Deferred tax assets ......................................................................... 335 435 2,986 Other ........................................................................................... 117 117 1,042 Allowance for possible loan losses .................................................. (12) (13) (106) Reserve for possible investment losses ........................................... — (131) —

5,188 4,751 46,242

Total property, plant and equipment .................................................. 33,298 43,137 296,800

Total Assets ......................................................................................... ¥57,443 ¥63,349 $512,015

Note: U.S. dollars amounts are translated, for convenience only, at U.S.$1= ¥112.19, the rate prevailing on March 31, 2017.

Consolidated Balance SheetsTBK Co., Ltd. and Consolidated SubsidiariesAs of March 31, 2017 and 2016

6

Thousands of Millions of yen U.S. dollars (Note) LIABILITIES AND NET ASSETS 2017 2016 2017Current Liabilities: Notes and accounts payable ................................................................ ¥ 6,400 ¥ 6,599 $ 57,046 Short-term debt ................................................................................. 6,396 6,379 57,010 Lease obligations ................................................................................ 500 413 4,456 Accrued income taxes ........................................................................ 1,780 121 15,865 Accrued bonuses to employees ........................................................... 772 637 6,881

Accrued bonuses to board of directors ................................................ 20 20 178

Provision for product warranties ......................................................... 71 196 632 Notes payable — equipment ................................................................ 455 966 4,055 Other ............................................................................................... 1,667 1,848 14,858

Total current liabilities................................................................... 18,065 17,183 161,021

Non-Current Liabilities: Long-term debt .................................................................................. 5,719 6,987 50,976 Lease obligations ................................................................................ 351 506 3,128 Deffered tax liabilities ......................................................................... 557 459 4,964 Deferred tax liabilities on revaluation of land ...................................... 65 2,317 579 Net defined benefit liability ................................................................ 2,801 2,891 24,966 Other ............................................................................................... 32 3,184 285

Total non-current liabilities ........................................................... 9,527 16,346 84,918

Total liabilities ............................................................................... 27,592 33,530 245,939

Net Assets: Shareholders' equity: Common stock .................................................................................. 4,617 4,617 41,153 Capital surplus .................................................................................... 259 260 2,308 Retained earnings .............................................................................. 22,873 18,128 203,877 Treasury stock, at cost ......................................................................... (36) (36) (320)

27,713 22,969 247,018

Revaluation adjustment: Valuation difference on available-for-sale securities ............................. 1,164 741 10,375 Revaluation reserve for land ............................................................... 112 5,385 998 Foreign currency translation adjustment .............................................. 735 598 6,551 Remeasurements of defined benefit plans ........................................... (389) (505) (3,467)

1,622 6,221 14,457 Minority interests .................................................................................. 515 627 4,590

Total net assets .............................................................................. 29,851 29,819 266,075

Total liabilities and net assets ........................................................ ¥57,443 ¥63,349 $512,015

7

Thousands of Millions of yen U.S. dollars (Note) 2017 2016 2017

Net sales .................................................................................................... ¥46,640 ¥47,086 $415,723

Cost of sales ............................................................................................... 40,649 41,725 362,322

Gross profit .............................................................................................. 5,991 5,360 53,400 Selling, general and administrative expenses ......................................... 4,172 4,015 37,186

Operating income .................................................................................... 1,818 1,345 16,204

Other income (expenses): Interest income (expenses)........................................................................ (298) (239) (2,656) Dividend income ..................................................................................... 68 88 606 Provision of allowance for investment loss ............................................... — (39) — Foreign exchange gains (losses) ................................................................. 13 (64) 115 Equity in earnings of affiliates ................................................................... 143 — 1,274 Gain (loss) on sale and disposal of property, plant and equipment, net ...................................................................... (4,667) (66) (41,599) Subsidy income ........................................................................................ 1,514 — 13,494 Gain from forfeiture of lease agreement .................................................... 2,001 — 17,835 Loss on retirement of non-current assets ................................................... (1,217) — (10,847) Loss on revaluation of investment in securities .......................................... (27) — (240) Others, net ............................................................................................... 53 60 472 Total .................................................................................................. (2,416) (261) (21,534)

Income before income taxes and minority interests ............................ (597) 1,084 (5,321)

Income taxes: Current .................................................................................................... 1,793 270 15,981 Prior ........................................................................................................ — 106 — Deferred .................................................................................................. (2,335) 112 (20,812) (541) 489 (4,822)Net income ................................................................................................. (55) 595 (490)Net income (loss) attributable to non-controlling interests ................ 26 (38) 231Net income attributable to owners of the parent .................................. ¥ (82) ¥ 633 $ (730)

Consolidated Statements of IncomeTBK Co., Ltd. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016

8

Consolidated Statements of Comprehensive IncomeTBK Co., Ltd. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016

Thousands of Millions of yen U.S. dollars (Note) 2017 2016 2017

Net income .................................................................................................. ¥ (55) ¥ 595 $ (490)Other comprehensive income (loss): Net unrealized holding gain on securities ................................................. 422 (588) 3,761 Difference in revaluation of land ............................................................. — 123 — Translation adjustments ............................................................................ (39) (911) (347) Remeasurements of defined benefit plans ................................................ 115 (302) 1,025 Share of other comprehensive income (loss) of affiliates by equity method ............................................................... (61) — (543)

436 (1,678) 3,886

Comprehensive income ................................................................................. ¥ 381 ¥ (1,083) $ 3,396

Comprehensive income attributable to shareholders of the Company ............. ¥ 359 ¥ (942) $ 3,199Comprehensive loss attributable to minority interests ..................................... 21 (141) 187

9

Consolidated Statements of Changes in EquityTBK Co., Ltd. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016

Millions of yen

Shareholders' equity Total Retained Trearusy stock, shareholders' Common stock Capital surplus earnings at cost equity

Balance at April 1, 2015 ¥4,617 ¥250 ¥18,183 ¥(35) ¥23,015 Changes during the year: Cash dividends (469) (469) Net income 633 633 Purchases of treasury stock (0) (0) Change of scope of consolidation (219) (219) Purchase of shares of consolidated subsidiaries 10 10 Net changes in items other than shareholders' equity Total changes during the year — 10 (55) (0) (45)

Balance at March 31, 2016 ¥4,617 ¥260 ¥18,128 ¥(36) ¥22,969 Changes during the year: Cash dividends (469) (469) Net income (82) (82) Purchases of treasury stock (0) (0) Disposal of treasury stock (0) 0 0 Change of scope of consolidation (0) (6) (7) Change in the scope of application of the equity method 29 29 Purchase of shares of consolidated subsidiaries (1) (1) Disposition of land revaluation difference 5,273 5,273 Net changes in items other than shareholders' equity Total changes during the year — (1) 4,745 (0) 4,743Balance at March 31, 2017 ¥4,617 ¥259 ¥22,873 ¥(36) ¥27,713

Millions of yen

Accumulated other comprehensive income (loss)

Net Remeasurements Total accumulated unrealized of defined other holding gain Revaluation Translation benefit plans, comprehensive Minority Total net on securities adjustment adjustments net of taxes income, net interests assets

Balance at April 1, 2015 ¥ 1,330 ¥5,262 ¥1,412 ¥(208) ¥7,797 ¥1,266 ¥32,079

Changes during the year: Cash dividends (469) Net income 633 Purchases of treasury stock (0) Change of scope of consolidation (219) Purchase of shares of consolidated subsidiaries 10 Net changes in items other than shareholders' equity (588) 123 (813) (296) (1,575) (639) (2,214) Total changes during the year (588) 123 (813) (296) (1,575) (639) (2,260)

Balance at March 31, 2016 ¥ 741 ¥5,385 ¥ 598 ¥(505) ¥6,221 ¥ 627 ¥29,819

Changes during the year: Cash dividends (469) Net income (82) Purchases of treasury stock (0) Disposal of treasury stock 0 Change of scope of consolidation 1 1 1 (3) Change in the scope of application of the equity method 230 230 260 Purchase of shares of consolidated subsidiaries (125) (126) Disposition of land revaluation difference 5,273 Net changes in items other than shareholders' equity 422 (5,273) (95) 115 (4,831) 12 (4,819) Total changes during the year 422 (5,273) 136 115 (4,599) (111) 32

Balance at March 31, 2017 ¥1,164 ¥ 112 ¥ 735 ¥(389) ¥1,622 ¥ 515 ¥29,851

10

Thousands of U.S. dollars

Shareholders' equity

Total Retained Trearusy stock, shareholders' Common stock Capital surplus earnings at cost equity

Balance at April 1, 2016 $41,153 $2,317 $161,583 $(320) $204,733Changes during the year: Cash dividends (4,180) (4,180) Net income (730) (730) Purchases of treasury stock (0) (0) Disposal of treasury stock (0) 0 0 Change of scope of consolidation (0) (53) (62) Change in the scope of application of the equity method 258 258 Change of scope of affiliates accounted for using equity method 258 258 Purchase of shares of consolidated subsidiaries Disposition of land revaluation difference 47,000 47,000 Net changes in items other than shareholders' equity Total changes during the year — (8) 42,294 (0) 42,294Balance at March 31, 2017 $41,153 $2,308 $203,877 $(2,994) $247,018

Thousands of U.S. dollars

Accumulated other comprehensive income (loss)

Net Remeasurements Total accumulated unrealized of defined other holding gain Revaluation Translation benefit plans, comprehensive Minority Total net on securities adjustment adjustments net of taxes income, net interests assets

Balance at April 1, 2016 $6,604 $47,998 $5,330 $(4,501) $55,450 $5,588 $265,790

Changes during the year: Cash dividends (4,180) Net income (730) Purchases of treasury stock (0) Disposal of treasury stock 0 Change of scope of consolidation 8 8 8 (26) Change in the scope of application of the equity method 2,317 2,050 2,050 Purchase of shares of consolidated subsidiaries (1,114) (1,114) Change of scope of affiliates accounted for using equity method 2,050 2,050 2,317 Disposition of land revaluation difference 47,000 Net changes in items other than shareholders' equity 3,761 (47,000) (846) 1,025 (43,060) 106 (42,953) Total changes during the year 3,761 (47,000) 1,212 1,025 (40,992) (989) 285Balance at March 31, 2017 $10,375 $998 $6,551 $(3,467) $14,457 $4,590 $266,075

11

Thousands of Millions of yen U.S. dollars (Note) 2017 2016 2017Cash flows from operating activities: Income before income taxes ............................................................................. ¥ (597) ¥1,084 $ (5,321) Adjustment: Depreciation ................................................................................................. 3,853 3,541 34,343 Increase (decrease) in allowance for employee bonuses .................................. 130 (13) 1,158 Increase (decrease) in allowance for board of director bonuses ......................... — (50) — Increase (decrease) in provision of reserve for producct warranties ................. (125) — (1,114) Decrease in net defined benefit liability ......................................................... 29 (301) 258 Interest and dividend income ........................................................................ (97) (115) (864) Interest expenses ........................................................................................... 326 265 2,905 Equity in earnings of affiliates ....................................................................... (143) — (1,274) Loss (gain) on sales of property, plant and equipment ..................................... 4,666 22 41,590 Loss on disposal of property, plant and equipment ......................................... 1 43 8 Loss on retirement of non-current assets ....................................................... 1,217 — 10,847 Gain from forfeiture of lease agreement ........................................................ (2,001) — (17,835) Subsidy income ............................................................................................ (1,514) — (13,494) Loss on revaluation of investment in securities .............................................. 27 — 240 Changes in assets and liabilities: (Increase) in receivables ............................................................................ (100) (487) (891) (Increase) decrease in inventories .............................................................. (226) (160) (2,014) Increase (decrease) in notes and accounts payable ...................................... (223) 334 (1,987) (Increase) in consumption taxes receivable ................................................ 99 121 882 (Decrease) in consumption taxes payable................................................... 46 (351) 410 (Decrease) in account payable ................................................................... 104 (6) 926 Others, net ............................................................................................... 664 339 5,918 Sub-total ............................................................................................. 6,138 4,267 54,710 Interest and dividend received ....................................................................... 97 115 864 Interest paid .................................................................................................. (287) (211) (2,558) Income tax paid ............................................................................................ (39) (635) (347) Net cash provided by operating activities ............................................. 5,908 3,535 52,660

Cash flows from investing activities: Payment for purchases of property, plant and equipment .................................... (5,234) (7,123) (46,652) Proceeds from sales of property, plant and equipment ......................................... 6,001 365 53,489 Payment for purchases of intangible assets .......................................................... (160) (33) (1,426) Payment for perchase of investments in securities ............................................... (97) (530) (864) Payment by loans .............................................................................................. (71) (1,092) (632) Proceeds from collection of loans ...................................................................... 72 348 641 Payment for refunding of the long-term security deposits .................................. (150) (180) (1,337) Payment for forfeiture of lease agreement .......................................................... (1,034) — (9,216) Others, net ........................................................................................................ 11 9 98 Net cash used in investing activities ..................................................... (663) (8,236) (5,909)

Cash flows from financing activities: Increase (decrease) in short-term loans, net ........................................................ (204) 2,191 (1,818) Increase in long-term loans, net ......................................................................... (1,202) 2,993 (10,713) Cash dividend paid to non-controlling subsidiaries ............................................ (9) (174) (80) Payments from changes in ownership interests in subsidiaries that do not result in changes in scope of consolidation .......................................... (126) (302) (1,123) Payment of dividend ......................................................................................... (469) (468) (4,180) Others, net ........................................................................................................ (368) (154) (3,280) Net cash provided by (used in) financing activities ............................... (2,378) 4,083 (21,196)

Effect of exchange rate changes on cash and cash equivalents ................... (29) (104) (258)Net increase (decrease) in cash and cash equivalents ................................... 2,836 (722) 25,278Cash and cash equivalents at beginning of the year ..................................... 2,398 3,043 21,374Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation ................................................................ 486 77 4,331Cash and cash equivalents at end of year ....................................................... ¥5,720 ¥2,398 $ 50,984

Consolidated Statements of Cash FlowsTBK Co., Ltd. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016

12

Corporate Data

Corporate Information (As of March 31, 2017)

TBK Co., Ltd.Head Office4-21-1, Minami Naruse, Machida, Tokyo 194-0045, JapanTEL: 042-739-1471 FAX: 042-739-1477

Paid in Capital: ¥4,617 million Number of authorized shares: 76,000,000 shares Number of shares issued: 29,424,635 shares Share units: 100 shares Number of shareholders: 13,891 Stock Listing: Tokyo Stock Exchange

Fukushima No. 1 PlantFukushima No. 2 PlantFukushima No. 3 PlantTokachi Proving Ground

Type of Shareholders

Financial Institutions31.15 %

Individuals and Others28.08 %

Domestic Institutional Investors24.29 %

Foreign Institutional Investors16.15 %

Treasury Stock0.33 %

Major Shareholders (As of March 31, 2017)

Isuzu Motors Limited 2,798 9.54BBH for Fidelity Puritan TR: Fidelity SR Intrinsic Opportunities Fund Intrinsic Opportunity Fund 1,800 6.14Asahi Mutual Life Insurance Company 1,610 5.49Sumitomo Mitsui Banking Corporation 1,423 4.85The Bank of Yokohama, Ltd. 1,423 4.85Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. 1,341 4.57BBH for Fidelity Low-Priced Stock Fund (Principal All Sector Subportfolio) 994 3.39The Master Trust Bank of Japan, Ltd.(Trust Account) 855 2.92 CBNY DFA INTL SMALL CAP VALUE PORTFOLIO 632 2.16Japan Trustee Services Bank, Ltd.(Trust Account) 629 2.15

Percentage of shares held

(%)

Number of shares held(thousands)

*percentage of held is calculated exclusive of 97,369 treasury stocks.

13

Group Companies:Tokyo Seiko Co., Ltd. (Japan)TBR Co., Ltd. (Japan)TBK Sales Co., Ltd. (Japan)

TBK America, Inc. (U.S.A.)TBKK (Thailand) Co., Ltd. (Thailand)TBK Technology (Thailand) Co., Ltd.Full Win Developments Ltd. (Hong Kong)Qiaotou TBK Co., Ltd. (China)TBK China Co., Ltd. (China)Chang’an TBK Co., Ltd. (China)Changchun TBK SHILI Auto Parts Co., Ltd. (China)TBK India Private Ltd. (India)

(As of March 31, 2017)

TBK Co., Ltd.4-21-1, Minami Naruse, Machida, Tokyo 194-0045, JapanURL: http://www.tbk-jp.com/