Operating Results & Financial Position,
Ended March 2018
Teruhisa Ueda
President & CEO
Shimadzu Corporation

2018.5.11

Financial Highlights

Record Results

1) Record results achieved for all key performance indicators—net sales, operating income,ordinary income, and profit.
2) Fifth consecutive year of increased sales and income

Analytical & Measuring
Instruments, Medical Systems, andIndustrial Machinery Achieve
Record Sales

1) Record sales achieved in three segments—Analytical & Measuring Instruments, Medical
Systems, and Industrial Machinery.
2) Results driven by Analytical & Measuring Instruments and Industrial Machinery segments.
3) Analytical & Measuring Instruments drove overall results with 11 % year-on-year increase(9 % excluding exchange rate effects).
4) Industrial Machinery achieved a 22 % year-on-year increase (21 % excluding exchange
rate effects), mainly in the strong semiconductor field.

Improved Profitability1) Operating margin improved by 0.6 points (year-on-year) to 11.4 %.
2) Fifth consecutive year of achieving record operating margin

Operating Results & Financial Position, Ended March 20182

Statement of Income• Net sales of 376.5 billion yen(34.1 billion yen and 10 % year-on-year increase,including 5.9 billion yen of exchange rate effects)• Operating income of 42.8 billion yen (5.7 billion yen and 16 % year-on-year increase,including 1.7 billion yen of exchange rate effects and a 3.6 billion yen
increase in investment expenses)• Operating margin of 11.4 %Units: Billions of yen, excluding EPS and percentages

Net Sales
Operating Income
Operating Margin
Ordinary Income
Profit Attributable to Owners of Parent
EPS
Average Foreign Exchange Rate

US$€

(0.6 point improvement, year-on-year)
Full-Year
FY2017FY2016¥101.26¥89.79Yen Basis
34.1
5.7
0.6 point increase
4.8
3.4¥11.47¥110.91¥129.75¥108.43¥118.84¥2.48¥10.91

376.5
42.8
11.4%
41.9
29.8

342.5
37.1
10.8%
37.0
26.5

9.9%
15.5%

Local Currency Basis
8.2%
10.8%

13.0%
12.7%
12.8%
2.3%
9.2%

• The "Exchange Rate Effect" and "Local Currency Basis" values for operating income include elimination of unrealized gains from inventories.

Exchange Rate Effect
Net Sales
Operating Income

5.9
1.7

R&D Expenses
Capital Expenditures
Depreciation and Amortization

15.5
17.2
10.6

Operating Results & Financial Position, Ended March 2018

YoY Increase• Sensitivity to Exchange Rates: US$: 1.2 billion yen for net sales and 0.4 billion yen for operating income; €: 0.2 billion yen for net sales and0.07 billion yen for operating income

14.6
12.9
9.5
3

Analysis of Year-on-Year Increase/Decreasein Operating Income (2017.4-2018.3)
Units: Billions of yen
620
62.0

1.4
11.2

52.0
520

FY2017 operating income

Operating Results & Financial Position, Ended March 2018

42.8
Increase in SG&A expenses
after excluding the impactof yen depreciation

2.020

Increase in net sales after
excluding the impact ofyen depreciation

12.0
120

Impact of yen depreciation

22.0
220

FY2016 operating income

320
32.0

37.1

1.7

Improvement of real profitability

42.0
420

(8.6)

Investment
expenses
increased by
3.6 billion yen
4Sales and Income by Business Segment• Sales increased for all business segments and income increased for Analytical & Measuring Instruments, Medical Systems, andIndustrial Machinery segments.
• Overall results were driven by the Analytical & Measuring Instruments segment, which achieved net sales of 231.6 billion yen (a year-onyear increase of 22.3 billion yen or 11 %), operating income of 37.0 billion yen (a year-on-year increase of 4.0 billion yen or 12 %), and an
operating margin of 16.0 % (a year-on-year 0.2 point improvement) by expanding sales of their main products and strategic products.
• The Industrial Machinery segment achieved net sales of 44.2 billion yen (a year-on-year increase of 8.0 billion yen or 22 %), operating
income of 4.1 billion yen (a year-on-year increase of 1.4 billion yen or 53 %), and an operating margin of 9.2 % (a year-on-year 1.8 point
improvement) by significantly expanding turbomolecular pump sales.
Units: Billions of yen

Full-Year

FY2017
Analytical & Measuring
Net Sales
231.6
OPM
Instruments
Operating Income
37.0
16.0%
Net Sales
65.9
OPM
Medical Systems
Operating Profit/Loss
2.7
4.1%
Net Sales
27.6
OPM
Aircraft Equipment
Operating Income
0.5
1.7%
Net Sales
44.2
OPM
Industrial MachineryOperating Income
4.1
9.2%
Net Sales
7.2
OPM
Other
Operating Income
0.9
10.1%
Operating Income Adjustments(2.4)—
Net Sales
376.5
OPM
Total
Operating Income
42.8
11.4%
Exchange Rate:
US$: 110.91, €: 129.75
Operating Results & Financial Position, Ended March 2018

FY2016
209.2
OPM
33.1
15.8%
64.4
OPM
1.9
3.0%
26.7
OPM
0.8
2.9%
36.2
OPM
2.7
7.4%
6.0
OPM
0.9
11.8%
(2.2)
—
342.5
OPM
37.1
10.8%
US$: 108.43, €: 118.84

22.3
4.0
1.5
0.8
0.9
(0.3)
8.0
1.4
1.2
0
(0.2)
34.1
5.7

YoY Increase/Decrease
Yen Basis
Local Currency Basis
10.7%
OPM
8.6%
12.1% 0.2 pt increase
8.5%
2.4%
OPM
1.0%
40.5% 1.1 pt increase
27.5%
3.4%
OPM
2.7%
-38.2% 1.2 pt decrease-26.6%
22.2%
OPM
20.8%
52.9% 1.8 pt increase
38.4%
20.8%
OPM
20.8%
1.0% 1.7 pt decrease
1.0%
—
9.9%
OPM
8.2%
15.5% 0.6 pt increase
10.8%

5

Net Sales by Region• Expanded sales in Japan and all regions outside Japan.
• Sales expansion was well-balanced between Japan and outside Japan, with a 7 % sales increase inJapan and 13 % increase outside Japan (10 % increase excluding exchange rate effects).
• Sales increased especially in China and the Americas, where there were double-digit increases.
• The overseas sales ratio increased by 1 point (year-on-year) to 50 %.
Units: Billions of yen

JapanAmericasNorth America
EuropeChina
Other Asian Countries
Other*
Total
Sales Outside Japan
Overseas Sales Ratio

Full-Year
FY2017
187.7
48.1
42.5
27.6
68.4
34.1
10.5
376.5
188.9
50%

FY2016
175.9
42.5
38.0
24.9
56.1
33.0
10.1
342.5
166.6
49%

YoY Increase
Yen Basis
Local Currency Basis
11.8
6.7%
6.7%
5.6
13.3%
10.7%
4.5
11.9%
9.3%
2.7
10.9%
2.5%
12.3
21.9%
19.2%
1.2
3.6%
1.1%
0.5
4.7%
1.1%
34.1
9.9%
8.2%
22.3
13.4%
9.9%

*Other: Australia, Middle East, and Africa
Operating Results & Financial Position, Ended March 20186

Analytical & Measuring Instruments 1/3
Net Sales by Sub-Segment+11 %:+12 %:+10 %:
27 %:Analytical & Measuring Instruments Net Sales
Sales increased for a wide range of instruments, with results driven
by key models and expansion of environmental measurement
instruments in China, which also contributed to results.

Units: Billions of yen
240.0

107.9

10 %

123.7

12 %

209.2

Key Models
Liquid chromatograph sales expanded in fields such as
pharmaceuticals and chemicals, whereas mass spectrometer sales
expanded in fields such as food safety and environmental testing.

200.0

Other
In China, sales of water quality and environmental monitoring
instruments increased significantly and sales of testing machines
were also strong in automotive and other fields.
Aftermarket Business Sales Ratio
The aftermarket business also expanded by 9 %, year-on-year,
remaining at roughly the same ratio of sales.

231.6

YoY
11 %

160.0

98.4

Other
120.0

Key Models

Primary Products and Aftermarket Products
80.0

110.8

i-Series Plus LC

LCMS-8060

GCMS-QP2020
40.0

Nexis GC-2030

Shim-pack GIST Series
HPLC Column

Materials
Testing
MachineTOC Analyzer

0.0

FY2016
Operating Results & Financial Position, Ended March 2018

FY20177

Analytical & Measuring Instruments 2/3
Net Sales by Region

Overseas Ratio 57 %The overseas ratio increased by 1 point (year-on-year) to 57 %.
Environmental testing, food safety, contract analysis, and other sales grew significantly in China and also
expanded in Japan and the Americas.
Analytical & Measuring
Instruments Net Sales by Region

YoY

3%

11%

Total: 11 %Japan: 8 %43%
FY201722%231.6 B yen
Japan

Total Outside Japan: 13 %China: 18 %Americas: 15 %Europe: 8 %Americas
EuropeChina
Other Asian Countries

Other Asian Countries: 4 %

10%
11%

Other: 21 %Other
Operating Results & Financial Position, Ended March 20188

Analytical & Measuring Instruments 3/3
Net Sales by Field
1) Customers are in many industrial fields.

FY 2017 Analytical & Measuring Instruments Net Sales by Field

Pharmaceuticals/CRO/healthcare/foods: 31 %Materials/machinery/electrical/automotive: 22 %Pharmaceuticals/CRO/Healthcare/Foods

Academia/government: 19 %Materials/Machinery/Electrical/Automotive

Other: 28 %Academia/Government
YoY

Other

2) Sales were strong in the largest"pharmaceuticals/CRO/healthcare/foods" field,
due to factors such as expanded demand for R&D
and food safety applications (9 % growth).

Total: 11 %28%
31%

Materials/Machinery/
Electrical/Automotive:
14 %FY20173) Sales were strong in the growth field of"materials/machinery/electrical/automotive," dueto increased sales for applications such as R&D,
capital investment, and regulatory compliance(14 % growth).

Pharmaceuticals/CRO/
Healthcare/Foods: 9 %231.6 B yen

Academia/Government:
10 %
19%
22%

Other: 14 %4) Academia/government sales were strong, mainly
in China (10 % growth).

Operating Results & Financial Position, Ended March 20189

Medical Systems 1/2
Net Sales by Sub-Segment
Units: Billions of yen

+2 %:
+2 %:
30 %:

Medical Systems Net Sales
Sales of mobile and other radiography systems werestrong, but sales of fluoroscopy systems stagnated.

70.0

64.4

17.4

3%

60.0

Radiography Systems
Sales of mobile and other radiography systems
expanded in North America, China, and Southeast Asia,
due to expanded sales outside Japan and also
increased sales in Japan.
Aftermarket Business Sales Ratio
The aftermarket business also expanded by 3 %, yearon-year, maintaining the same ratio of sales.

65.9

YoY
2%

17.0
50.0

40.0

Other
Radiography
System30.0

2%

Primary Products

47.4

48.5

FY2016FY201720.0

10.0

Angiography
SystemFluoroscopy
SystemMobile System

Operating Results & Financial Position, Ended March 2018

Breast PET System

RadiotherapyRelated System

0.0

10

Medical Systems 2/2
Net Sales by Region

Overseas Ratio 45 %The overseas ratio increased by 3 points (year-on-year) to 45 %.
Sales expanded in the Americas and other Asian countries, which compensated for stagnation in Japan due tothe revision of medical service fees.
Medical Systems Net Sales by Region

YoY
6%

Total: 2 %8%Japan: -1 %Total Outside Japan: 8 %10%

Europe: 30 %FY20175%

65.9 B yen

Japan

Other Asian Countries: 17 %55%
Americas: 8 %Americas
Europe16%

China
Other Asian Countries

China: 6 %Other: -8 %Other

Operating Results & Financial Position, Ended March 201811

Industrial Machinery 1/2
Net Sales by Sub-Segment+22 %:

Units: Billions of yen

Industrial Machinery Net Sales
Driven by turbomolecular pump sales, sales expanded bydouble digits for hydraulic equipment and other products as
well.

50.0

YoY

44.2

45.0

22 %
40.0

+34 %:+11 %:

Turbomolecular Pumps
Sales expanded significantly due to contribution from thesteady supply of pumps to the semiconductor
manufacturing field, which is enjoying favorable conditions.
Hydraulic Equipment
Sales were strong for forklifts and construction machinery.

36.2

12.1

35.0

Other
30.0

17 %

10.3

Hydraulic Equipment
12.9

25.0

Turbomolecular Pump
20.0

11.6
11 %

15.0

Primary Products

10.0

19.2
14.3

5.0

Turbomolecular Pumps

Operating Results & Financial Position, Ended March 2018

Hydraulic Equipment

34 %

0.0

FY2016FY2017

12

Industrial Machinery 2/2
Net Sales by Region

Overseas Ratio 50 %The overseas ratio increased by 3 points (year-on-year) to 50 %.
Sales expanded both within and outside Japan, especially in the semiconductor and other fields in theAmericas and China.
Industrial Machinery Net Sales by Region
YoY

10%
Total: 22 %Japan: 14 %23%

Total Outside Japan: 31 %FY201750%
44.2 B yen

China: 69 %Japan

Americas: 38 %Americas

Europe: 21 %Europe3%

14%

Other Asian Countries: -11 %China
Other Asian Countries
Operating Results & Financial Position, Ended March 201813

Aircraft Equipment
Net Sales by Sub-Segment
Units: Billions of yen+3 %:Aircraft Equipment Net Sales
Sales increased for the defense business in Japan, but
decreased for the commercial aircraft business, due todecreased production at Boeing.

30.0

26.7
25.0

+6 %:

Defense Business
Component sales were strong for the new C-2 transport
aircraft.

27.6

YoY
3%

4.3

(7 %)

4.6

20.0

-7 %:

Commercial Aircraft Business
Sales decreased due to a temporary decrease in midsize commercial aircraft production at Boeing.

Aircraft Components (Commercial Aircraft)

Commercial
Aircraft

15.0

Defense

22.1

23.3

6%

10.0

Control Valve Modules

Power Drive Unit
Gearboxes

5.0

Flap Actuators
Angle Gearbox

Stabilizer Trim Actuator

Operating Results & Financial Position, Ended March 2018

0.0

FY2016FY201714

FY2018 Business Environment OutlookJapan
1.2 % (±0 %)Demand is expected to expand in both private and public sectors, due to R&D in biopharmaceuticals and other pharmaceuticalfields, active corporate investment to increase or improve capital equipment in materials, semiconductor, and automotive fields,
and due to public infrastructure improvements, such as replacement of aging equipment in anticipation of the Olympics.
Risks: Instability of international relations in East Asia and impacts from the revision of medical service fees in Japan

United States
2.9 % (+0.2 pt)

R&D is expected to accelerate in biotechnology, healthcare, and other advanced fields, demand for analytical instruments is
expected to expand in response to regulatory easing (cannabis), production in the semiconductor field is projected to expand,and corporate capital equipment investment is expected to expand due to lower corporate taxes.
Risks: Increasingly conservative policies result in a lower dollar value.

Euro Area
2.4 % (+0.2 pt)

Domestic demand is expected to expand, mainly in Germany, Italy, and the Netherlands, and economic recovery is expected in
Russia. Demand is projected to expand in fields such as pharmaceuticals, healthcare, and foods.
Risks: Repercussions from instability in the Middle East

China
6.6 % (±0 %)Vigorous demand is expected in both private and public sectors, due to increased demand in response to stricter regulations for
ensuring a safer and more secure society, such as for environmental and food safety testing fields, expansion/improvements inresearch equipment intended to improve the level of academic institutions, and expansion in private sector demand inpharmaceutical/CRO and semiconductor/flat panel display fields.
Risks: Impacts from U.S.-China trade friction or sudden changes in government polices

ASEAN 5.3 %(±0 %)
India
7.4 % (±0 %)R&D and capital investment are expected to expand in the generic drugs fields as they spread from India to Southeast Asian
countries and capital equipment by foreign companies is expected to expand and improve in electrical, automotive, and otherfields.
Risks: Political instability in Southeast Asia

Note: The values shown in the left column are IMF estimated 2018 GDP growth rates published in April 2018. The increase/decrease versus the previous forecast in January
2018 is indicated in parentheses.
Operating Results & Financial Position, Ended March 201815

Earnings Forecast• Given the strong global economic conditions projected, additional increases in sales and income areplanned.
• Operating income is projected to reach the medium-term management plan target level one year
ahead of schedule.
• We aim to achieve sixth consecutive year of record results.
Units: Billions of yen, excluding EPS and percentages

Net Sales
Operating Income
Operating Margin
Ordinary Income
Profit Attributable to Owners of Parent
EPS
Average Foreign Exchange Rate

US$€

Full-Year
FY2018 Plan
FY2017
390.0
376.5
45.0
42.8
11.5%
11.4%
44.0
41.9
32.0
29.8
¥108.63¥101.26¥105.00¥130.00¥110.91¥129.75

Exchange Rate Effect
Net Sales
Operating Income

(7.0)
(2.3)

R&D Expenses
Capital Expenditures
Depreciation and Amortization

17.0
23.0
11.7

Operating Results & Financial Position, Ended March 2018

YoY Increase
Yen Basis
13.5
2.2
0.1 point increase
2.1
2.2
¥7.37
-5.91
0.25

3.6%
5.1%

Local Currency Basis
20.5
5.4%
4.5
10.5%

5.1%
7.2%
7.3%
-5.3%
0.2%

 Sensitivity to Exchange Rates: US$: 1.2 billion yen for net sales and 0.4 billion yen for operating
income; €: 0.2 billion yen for net sales and 0.07 billion yen for operating income
15.5
17.2
10.6
16

Earnings Forecast by Business Segment• Increased sales and income are planned for Analytical & Measuring Instruments, Medical Systems,
and Industrial Machinery segments.
• We intend to increase income in the Aircraft Equipment segment.
• The operating margin for the Industrial Machinery segment is projected to exceed 9 % and almost
achieve double digits.
Full-Year
Units: Billions of yen
Analytical & Measuring
Instruments
Medical Systems
Aircraft Equipment
Industrial Machinery
Other

OPM
4.7% 0.1 pt increase
4.1%

OPM
16.1%

231.6

OPM

9.4

37.0

16.0%

1.8

OPM
4.6%

65.9

OPM

3.6

2.7

4.1%

0.5

OPM
3.0%

27.6

OPM

(1.1)

0.5

1.7%

0.3

OPM
67.0% 1.3 pt increase

OPM
9.5%

44.2

OPM

2.3

5.2%

4.1

9.2%

0.3

7.2

OPM

(0.7)

0.8

OPM
12.3%

0.9

10.1%

(0.1)

(3.0)

—

(2.4)

—

(0.6)

Net Sales

390.0

376.5

OPM

13.5

Operating Income

45.0

OPM
11.5%

42.8

11.4%

2.2

Net Sales

241.0

Operating Income

38.8

Net Sales

69.5

Operating Income

3.2

Net Sales

26.5

Operating Income

0.8

Net Sales

46.5

Operating Income

4.4

Net Sales

6.5

Operating Income

Operating Income Adjustments
Total

YoY Increase/Decrease

FY2017FY2018 Plan

Operating Results & Financial Position, Ended March 2018

OPM
increase
pt
0.5
18.5%
5.4%

-4.1%

OPM
7.7% 0.3 pt increase
OPM
increasept
2.2-10.2%-10.0%—
OPM
increase
pt
0.1
5.1%
3.6%

17

Implementing Business Strategies 1/6—I. New Products: Expanding/
Improving Line of Key Models for Analytical & Measuring Instruments• New products: Improve/expand product line (fully automated models, new pretreatment systems, on-site analyses, etc.).
• Existing products: Expand the range of application fields.
(Promote joint development with outside institutions, mainly at innovation centers.)• Network systems: Implement the concept of integrated network systems.
• Aftermarket business: Expand reagent and consumables businesses and strengthen service business (multi-vendor services, etc.).
Analytical—LC

Analytical—MS

Analytical—MS

Analytical—MS

DPiMS-2020

MALDI spectrometer that offers thehighest resolution in a tabletop model,
with sales expanding inpharmaceuticals, such as for antibody
and nucleic acid analysis, and academia
fieldsReleased Oct. 30

MALDI-8020

Nexera Mikros
i-Series Plus
Integrated LC with significantly
higher automation level ofpretreatment and other analyticalprocesses.
Released Aug. 31

LCMS system that supports micro
flowrates. Achieves higher
sensitivity, higher robustness, andeasier operability forpharmaceuticals.
Released Jan. 29

Analytical—GC

Direct ionization type MS system for
rapid on-site mass analysis
Released Sep. 1

TD-30 Pretreatment System
Injects volatile components into GC
unit. Sales expanding for analyzing
the atmosphere, residential andautomotive interiors, etc.
Released Oct. 11

Network System: LabSolutions• Improve data integrity of spectrophotometers (released Aug. 9)

Aftermarket Business: LabTotal• Strengthen/expand/improve reagent and consumables businesses, including by M&A (released Jun. 22).
• Alsachim reagents, reagent kits, LC columns, and blood pretreatment devices
Operating Results & Financial Position, Ended March 201818

Implementing Business Strategies 2/6—I. New Products: Developing New
Fields or Applications for Medical Systems and Industrial Machinery• New products: Expand/improve product line and develop new field. → Breast PET system, etc.
• Existing products: Increase market share and develop new application fields. → Trinias Unity, Mobile DaRt, and
TMP-B70• Aftermarket business: Expand/improve maintenance services (such as for industrial machinery TMPs or
24 hr/365 days per year response for medical systems).
Medical—Angiography System

Medical—Mobile X-Ray System

Medical—Breast PET System

Trinias Unity

Mobile DaRt MX8(Developed jointly with the Kyoto
University Hospital)

Provides powerful support forinterventional procedures in all areas of
the body, from cardiac and cranial areas
to abdominal areas and lower
extremities.
Released Oct. 25

Digital radiography system withsignificantly higher performance andfunctionality and a telescoping support
column that results in a compact size
and improved maneuverability
Released Jan. 17

Frost & Sullivan
Received 2017 Global General Radiography Product Line Strategy
Leadership Award.

Operating Results & Financial Position, Ended March 2018

Industrial—TMP

TMP-B70 Model
Elmammo Avant Class
Enables pain-free high precision breast
cancer examinations and improves
image quality and patient-friendliness.
Released Sep. 4

Received the 15th Industry-AcademiaGovernment Collaboration Contributors
Award by the Minister of the Japanese
Ministry of Health, Labour and Welfare(Sep. 1).

Compact turbomolecular pump with highevacuation performance. Sales
expanding for general industrial
machinery and analytical instruments
Released Dec. 8

Applied Materials
Received Supplier of Excellence Award(2016) from Applied Materials.

19Implementing Business Strategies 3/6—II. Developing New Demand in
Growth Fields: Various Measures for Establishing Standards
Revised RoHS Directive

EPA Chemical Regulations

Screening System for Phthalate Esters

Total Organic Carbon Analyzer

Py-Screener

TOC-L

We are participating in specifying
analytical methods for phthalate esters,
scheduled to be additionally regulated
from July 2019, and will commercialize
the method as a GCMS application.

Method for Measuring Moisture Content in LP Gas

Used for total nitrogen analysis methodcompliant with chemical substance andwater quality regulations (ASTM-D8083) by
the United States Environmental Protection
Agency (EPA).

Method for Testing Strength of Plastics

Gas ChromatographTrace Moisture Content
Measurement System
Currently in application process to be
adopted as the standard testing
method in official methods for theUnited States. Applications are being
developed at the US Innovation Center.
Operating Results & Financial Position, Ended March 2018

High-Speed Tensile Testing Machine

Hydroshot HITS
We are participating in creating high-speed
tensile testing method for evaluating strainrate dependence of plastics.

20

Implementing Business Strategies 4/6—II. Developing New Demand in
Growth Fields: Contributing to Lighter and Safer Automobiles
Material Strength

Endurance

AUTOGRAPH Universal Testing MachineElectric Motor Driven Actuator

AG-Xplus Series

NJ-SERVO Series

Used to test the strength of all sorts ofautomotive parts and materials, suchas metals, plastics, rubbers, and films.

Servo motors and displacement
measurement sensors are used toaccurately measure the enduranceof automotive interior and otherparts and materials.

Automobile Cabin Environment

Next-Generation Technology

Gas Chromatograph Mass Spectrometer

GCMS-QP2020
Contributes to a more comfortable interior space bymeasuring the volatile organic compounds (VOCs) emitted
from plastics and other interior parts and materials.
Operating Results & Financial Position, Ended March 2018

High-Speed Sputtering System
Efficiently and inexpensively applies
electromagnetic wave transparent films thatare even transparent to millimeter waves,which are used to avoid collision.
21

Implementing Business Strategies 5/6—II. Developing New Demand in
Growth Fields: Promoting Advanced Healthcare
Dementia

Cancers/Lifestyle Diseases

Establish method for early detection of Alzheimer's.

Near-Infrared
Fluorescence
Imaging System

Angiography System

Diagnostic Images

Integration

Mass Spectrometry Systems

Blood Test
(Minimally invasive and inexpensive)

Mass Spectrometry Data

Mass Spectrometer
0.5 cc micro
blood sample

Cancers

Lifestyle Diseases

Support photoimmunotherapy
research.

Develop primary aldosteronism
diagnostic system.

Near-Infrared Fluorescence
Imaging System
Observes drug accumulation andcell destruction.
Mass Spectrometer
Confirms therapeutic efficacy (byanalyzing components eliminatedin urine).

Operating Results & Financial Position, Ended March 201822

Analyze betaamyloid todeterminepathogenic risk.

 Beta-amyloid analysis results in early treatment by earlystage detection and delaying progression.
 Provides data useful for contributing to development oftherapeutic drugs.

22Implementing Business Strategies 6/6—III. Investment: Steadily
Implementing Investments for the Future
Analytical & Measuring Instruments
June 2017
Acquired French reagent company Alsachim to strengthen aftermarket business.
August 2017
Invested in MCBI to participate in dementia examination business.
November 2017 Opened fourth innovation center in Singapore, after the U.S., China, and Europe, tostrengthen R&D capabilities outside Japan.
January 2018
Started construction of Healthcare R&D Center(scheduled for completion in January 2019).

Medical Systems
Expanding size of manufacturing subsidiary Shimane Shimadzu by 50 % to expand product supply
capacity (scheduled for completion by February 2019).

Industrial Machinery
Increased/strengthened turbomolecular pump production equipment in anticipation of increased demandand expanded market share to strengthen capabilities for supplying products reliably.
April 2018 Merged two subsidiaries to establish Shimadzu Industrial Systems and a third pillar forincome (vacuum equipment, etc.), after turbomolecular pumps and hydraulic equipment.
Operating Results & Financial Position, Ended March 201823

Corporate Social Responsibility (CSR) Activities 1/2
With the increasing importance of science and technology for solving the challenges of society, we
will implement a policy of solving societal challenges through business operations (strategic
corporate social responsibility) based on Shimadzu's corporate philosophy of "Contributing toSociety through Science and Technology."
Main Business Opportunities
Promoting preventive medicine

Engage in topics
with high priority forrelevance tobusiness operations.
(Strategic CSR)

Achieving high quality physics andchemistry education
Water, air, and soil regulatorycomplianceDiagnostics for aging infrastructure
Water, air, and soil regulatory compliance
Creating innovations for solving
challenges of society

Operating Results & Financial Position, Ended March 201824

CSR Activities 2/2
Environment

SocietySociety

Contribute to improving
environmental pollution.

Use advanced science andtechnology to help promoteindustrial development.

Contribute to preventive
medicine.

Contribute to improving environmental
pollution in China by measuring in realtime whether or not effluent waters, emission
gases, river waters, sea waters, and lakewaters meet applicable regulatory standards.

Contribute to reducing the spread of tuberculosis(by early detection) in Pakistan by using a truckmounted radiography system to examine patients invarious regions.

Traveling to various regions
by truck

Instrument for measuring
effluent and surface waters

Instrument for measuring
emission gases

Operating Results & Financial Position, Ended March 2018

Yukiya Amano (right),
Director General of theInternational Atomic Energy
Agency, at the signingceremony for an agreement
to help support development
in developing countries byapplying nuclear technology(October 2017).

Signing joint research
agreement with theInternational ClinicalResearch Center at the
St. Anne's University Hospital
Brno. Signing ceremony(June 2017) with Czech
Republic Prime Minister
Bohuslav Sobotka (left).

Performing an examination

Contribute to reducing medical costs by using
Shimadzu's core technology in mass spectrometry tocheck the risk of diseases from a single drop of blood.

High-Performance Liquid Chromatograph Mass Spectrometer25

Increasing Corporate Value
JPX-Nikkei Index 400

Share priceindex

Selected as JPX-Nikkei Index 400 brand for second consecutive
year (Aug. 2017).

MSCI Japan ESG Select Leaders Index

Share priceindex

Selected as a brand in the MSCI Japan ESG Select Leaders
Index (Jun. 2017).

"White 500" Company with Superior HealthManagement
Recognized as "White 500" company withsuperior health management for second
consecutive year (Feb. 2018).

Operating Results & Financial Position, Ended March 2018

Healthoriented
management

FTSE Blossom Japan Index

Share priceindex

Selected as a brand in the FTSE Blossom Japan Index(Jun. 2017).

Women's Initiatives

Share priceindex

Selected as Nadeshiko Brand for second
consecutive year (Mar. 2018).
Selected as a brand in the MSCI Japan
Empowering Women Index (Jun. 2017).

Japan Habitat Evaluation and Certification

Environmental
management

Obtained highest AAA rank (May 2015).

26

This document contains forward-looking statements. Forecasts of future business performance thatappear in this document are predictions made by the company's management team that are based on
information available when these materials were prepared and are subject to risks and uncertainties.
Consequently, actual results may differ materially from the forecasts indicated above. Factors that
may influence actual business performance include, but are not limited to, economic conditions within
and outside Japan, changes in technologies in markets, and fluctuations in exchange rates.

Operating Results & Financial Position, Ended March 2018