Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2021
(Based on Japanese GAAP)
November 9, 2021
Company name:Shibaura Machine Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6104
URL https://www.shibaura-machine.co.jp
President and Chief Operating Officer
Shigetomo Sakamoto

Inquiries:

Public Relations & Investor Relations
Department

Minoru Aoki

TEL

Senior Manager
Scheduled date to file Quarterly Securities Report:

November 9, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 2, 2021
Yes

Holding of quarterly financial results meeting:Yes

03(3509)0444(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2021
Six months ended September 30, 2020

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
53,697
26.9
2,377
–
2,349
–
1,792
–
42,307 (29.0)(315)–(705)–(1,052)–
Earnings per share

Diluted earnings per share

Yen
74.22
(43.59)Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2021
As of March 31, 2021

Net assets

Millions of yen
146,792
134,296

Equity ratio

Millions of yen
80,46082,152%54.8
61.2

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
37.50
37.50

Yen–

Yen
37.50

Yen
199.30

–

37.50

75.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
113,000
22.0
4,300 1,026.1
3,800 335.3
2,800–115.92

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

29,977,106 shares As of March 31, 2021

29,977,106 shares

Number of treasury shares at the end of the period
As of September 30, 2021

5,822,659 shares As of March 31, 2021

5,831,373 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

24,149,429 shares Six months ended September 30, 2020

224,138,213 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade42,417
27,68247,074–

Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods

–
6,736

20,015
16,242Work in process
Raw materials and supplies

22,32764

27,45546

Other
Allowance for doubtful accounts

3,560
(37)

3,909
(36)

102,752

114,707

39,252(29,348)

39,217(29,550)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment

9,903

9,666

Machinery, equipment and vehicles
Accumulated depreciation and impairment

Buildings and structures, net

24,421(21,703)

23,980(20,989)

Machinery, equipment and vehicles, net

2,718

2,990

7,098
264

7,044
348

Accumulated depreciation and impairment

(153)

(179)

Leased assets, net

111

168

Land
Leased assets

Construction in progress

474

196

7,238
(6,786)

7,018(6,560)452

458

20,75820,525

Other

571

756

Total intangible assets

571

756

Investment securities
Long-term loans receivable

8,341
68,878
5

Deferred tax assets
Other

409
2,765500
2,710

Allowance for doubtful accounts(1,310)(1,291)

Total investments and other assets

10,213

10,803Other
Accumulated depreciation and impairment
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

3

31,54332,085

134,296

146,792

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade17,61322,459

Short-term borrowings
Income taxes payable

10,59074

10,590283

Accrued expenses
Provision for bonuses

2,341
1,096

2,145
1,180

Provision for product warranties
Advances received

591
5,345

577
–

Contract liabilities
Other–
1,316

14,472
1,210

Total current liabilities

38,96952,919Non-current liabilities
Long-term borrowings

3,800

3,550

Long-term accounts payable - other
Deferred tax liabilities

5570

5
1,008

Provision for retirement benefits for directors (and otherofficers)

58

56

8,518
105

8,504
140

115

147

13,174

13,412

52,144

66,332

Share capital
Capital surplus

12,484
11,53812,484
11,538Retained earnings
Treasury shares

69,522(16,346)

67,346(16,322)

Total shareholders' equity

77,19875,047Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,749

4,126

Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,737
(533)

1,743
(457)

Total accumulated other comprehensive income

4,953

5,413

82,15280,460134,296

146,792Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Net sales
Cost of sales

42,30730,92353,697
38,162Gross profit

11,384

15,535

Selling, general and administrative expenses

11,70013,157(315)2,377Interest income
Dividend income

32
113

39
123

Rental income
Foreign exchange gains

22–2340

Subsidies for employment adjustment
Other

222
106231
74

Total non-operating income

Operating profit (loss)
Non-operating income

498

533

Non-operating expenses
Interest expenses

4355

Brand fee expense
Outsourcing expenses

0485

–
67

Foreign exchange losses
Other

50
307

–
437

Total non-operating expenses

887

560(705)

2,349

Gain on sale of non-current assets

413

Total extraordinary income

41331
264

18–

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Extra retirement payments
Total extraordinary losses

296

18

Profit (loss) before income taxes

(997)

2,345

Income taxes - current
Income taxes - deferred

238
(184)

341
210

Total income taxes

54

552

Profit (loss)(1,052)

1,792

Profit (loss) attributable to owners of parent(1,052)

1,792

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

(1,052)

1,792

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges340
5377–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(48)
100

675

Total other comprehensive income

398459(653)

2,251(653)

2,251

––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Cash flows from operating activities
Profit (loss) before income taxes

(997)

2,345

Depreciation
Extra retirement payments

833
264922
–(16)
1,005

(20)
83(92)

(13)

10(1)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability

(704)

60

Interest and dividend income
Interest expenses(146)
43(163)55

274

Decrease (increase) in trade receivables
Decrease (increase) in inventories

7,644
2,3001,782(673)

Increase (decrease) in trade payables
Increase (decrease) in advances received(3,970)(1,147)

5,170–

Increase (decrease) in contract liabilities
Increase (decrease) in accrued expenses–(3,227)(4,130)
162

(17)
249

18
144

Loss (gain) on sale and retirement of property, plant andequipment and intangible assets

Increase (decrease) in deposits received
Increase (decrease) in accounts payable - other
Other, net

547

505

Subtotal

2,606

6,253

Interest and dividends received

145

156

Interest paid
Income taxes paid

(44)
(7,067)(38)
322

Extra retirement payments(1,049)–Net cash provided by (used in) operating activities(5,408)

6,693

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(415)
6(800)
80

Purchase of intangible assets
Decrease (increase) in short-term loans receivable

(89)
(0)

(182)
10

Proceeds from collection of long-term loans receivable
Other, net

3(75)

016

Net cash provided by (used in) investing activities

(571)

(875)

Cash flows from investing activities

Cash flows from financing activities
Repayments of long-term borrowings–(250)(0)(4,025)

(0)
(905)

(16)

(42)

Net cash provided by (used in) financing activities(4,042)(1,198)

Effect of exchange rate change on cash and cash equivalents

(46)

36

Purchase of treasury shares
Dividends paid
Other, net

Net increase (decrease) in cash and cash equivalents(10,068)

4,656

Cash and cash equivalents at beginning of period

48,01142,417

Cash and cash equivalents at end of period

37,94347,0747