TEIKOKU ELECTRIC MFG. CO., LTD.

Consolidated Statement of Cash Flows

Year Ended March 31, 2016

U.S. Dollars
Thousands of Yen (Note 1)
2016 2015 2016

OPERATING ACTIVITIES:
Income before income taxes 1,984,292 3,030,493 $ 17,619,360
Adjustments for:
Income taxes paid (988,181 ) (936,976 ) (8,774,475 )
Depreciation and amortization 857,017 770,452 7,609,812
Foreign exchange loss (gain) net 61,991 (222,198 ) 550,448
Changes in assets and liabilities:
Increase in notes and accounts receivable (343,570 ) (47,433 ) (3,050,700 )
(Increase) decrease in inventories (354,210 ) 99,604 (3,145,182 )
Decrease in notes and accounts payable (162,149 ) (27,287 ) (1,439,786 )
Changes in asset or liability for retirement benefits 21,425 (61,296 ) 190,243
Other net (284,573 ) (405,064 ) (2,526,845 )
Net cash provided by operating activities 792,042 2,200,295 7,032,875

INVESTING ACTIVITIES:
Purchases of property, plant and equipment (1,185,086 ) (540,785 ) (10,522,874 )
Purchases of intangible assets (340,919 ) (26,102 ) (3,027,161 )
Purchases of investment securities (14,799 ) (15,650 ) (131,407 )
Purchases of marketable securities (600,000 )
Proceeds from redemption of marketable securities 600,000 5,327,650
Payments into time deposits (4,851 ) (369,270 ) (43,070 )
Proceeds from withdrawal of time deposits 190,474 172,717 1,691,296
Other net 14,354 6,034 127,458
Net cash used in investing activities (740,827 ) (1,373,056 ) (6,578,108 )

FINANCING ACTIVITIES:
(Increase) decrease in short-term bank loans net 482,200 (88,043 ) 4,281,656
Payments of lease obligations (175,932 ) (138,670 ) (1,562,175 )
Proceeds from issuance of new shares 1,990,823
Repurchase of treasury stock (176 )
Disposal of treasury stock 929,005
Dividends paid (285,423 ) (231,450 ) (2,534,394 )
Net cash provided by financing activities 20,845 2,461,489 185,087

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

ON CASH AND CASH EQUIVALENTS (117,165 ) 377,405 (1,040,361 )

NET (DECREASE) INCREASE IN CASH AND CASH

EQUIVALENTS (45,105 ) 3,666,133 (400,507 )

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 9,590,401 5,924,268 85,157,178

CASH AND CASH EQUIVALENTS, END OF YEAR 9,545,296 9,590,401 $ 84,756,671

See notes to consolidated financial statements.

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